Value Stream Mapping

One of the key tools of Lean management is Value Stream Mapping (VSM), which enables companies to gain a clearer understanding of their processes and identify activities that add value to the product, as well as those that do not. Lean management distinguishes three types of activities:

  1. Value-adding activities (VA) that add value to the product,
  2. Non-value-adding activities (NVA) that are currently necessary for the proper functioning of the process,
  3. Waste activities (W) that do not add value to the product and represent pure waste.

The value stream includes all of the activities that occur in the production of a product, from order to delivery. Value Stream Mapping is a tool that enables the visualization and understanding of the entire production process, from order to delivery of the product to the customer, in order to identify and reduce or eliminate activities that do not add value to the product. The goal of VSM is to reduce production costs, improve product quality, and reduce the time required to deliver the product to the customer, and its implementation involves the following steps:

  1. Selection of the process to be mapped,
  2. Defining the team that will carry out the Value Stream Mapping,
  3. Breaking down the selected process into activities and measuring each activity,
  4. Drawing a map of the current state,
  5. Analyzing the map of the current state,
  6. Drawing a map of the future state,
  7. Forming an action plan to achieve the drawn future state.

The practical application of VSM can be challenging, and some of the most common challenges include:

  • Lack of understanding of the process: To achieve optimal results from the application of VSM, it is necessary to have a complete understanding of the process being mapped. Therefore, it is important to define a team that will encompass all aspects of the observed process.
  • Lack of leadership support: Successful implementation of VSM requires the support of the organization's leadership. If the leadership does not recognize the importance of this tool, the team will not receive the necessary resources and support to implement the proposed changes.
  • Lack of teamwork: VSM requires the collaboration of different team members in order to map the process properly. If the team is not well-coordinated or does not work well together, it is possible that the process will not be mapped and analyzed in the correct way.
  • Lack of continuous improvement: VSM is a continuous process that requires continuous monitoring and improvement of the process. If the team does not continue to monitor the process after the initial mapping, losses may reoccur.

 

Despite the challenges of implementing VSM, it provides numerous benefits to companies, such as:

 

• Increased process efficiency,

• Reduction or elimination of losses in the process,

• Improvement of product quality,

• Improvement of communication within the company,

• Better understanding and control of the process,

• Continuous improvement of the process.

 

From all of the above, it is evident that Value Stream Mapping is one of the key tools of Lean management and the foundation for implementing Lean in a company, as well as for developing the competitiveness of the company in today's market environment.

 
Date: 05.05.2023.
 
Author: Tomislav Klasić