How Could Value Stream Mapping Improve Business Efficiency?

22.12.2023

How Could Value Stream Mapping Improve Business Efficiency?

Companies worldwide are facing intense competition and ever-increasing customer demands. To stay ahead, organisations need to continuously assess and optimise their operations. One powerful tool that has gained prominence in recent years is value stream mapping (VSM). VSM is a visual and analytical technique used to identify and eliminate waste, streamline processes, and improve overall business efficiency. In this blog post, we'll explore value stream mapping in more detail, how you can put it into practice, and the best tools to help you.

What is value stream mapping?

Value stream mapping is the act of creating a visual representation of the entire process or "value stream’ that a product or service goes through, from the initial customer request to its delivery. This map helps identify both value-adding activities and non-value-adding activities (waste), allowing businesses to optimise their processes systematically.

What are the key principles of value stream mapping?

  • Customer-centricity

VSM begins with a deep understanding of customer needs and aligns all activities to meet those needs efficiently.

  • Flow optimisation

It aims to establish a smooth and uninterrupted flow of work through the value stream, reducing delays and bottlenecks.

  • Waste reduction

VSM identifies and eliminates various types of waste, such as overproduction, waiting times, defects, and excess inventory.

  • Continuous improvement

The process of VSM is ongoing, encouraging organizations to continuously seek ways to enhance their operations.

How to conduct value stream mapping

The best way to conduct VSM is via a meeting. It can be part of the meeting or form the basis of the entire slot. In the meeting notes you should highlight exactly what will be mapped to your attendees. The value mapping could be a product's journey from raw materials to the customer or a specific process within your company that needs streamlining.

When choosing your attendees make sure to involve all team members who can provide valuable input and/or those who will be affected by any decisions that could be made as a result of the VSM. Getting together a cross-functional team ensures a holistic view of the process that will be mapped.

A great way to start is by mapping the current state. Draw a timeline from left to right that represents the process from start to finish. You can use symbols, labels, and coloured pens to distinguish different elements. To get your started, the most common symbols are:

  • Rectangles – processes
  • Triangles – inventory
  • Arrows – flow
  • Diamonds – decision points

During the mapping of the current state, you can supplement your visual representation with data, waste identification, and metrics.

You can then move on to mapping the future state. This sometimes starts with brainstorming potential improvements off the back of the mapping of the current state. As a team you can map out the ideal process and even recalculate metrics to see the impact of your potential improvements.

You will need to keep all relevant stakeholders informed about the changes following your VSM session and provide training as needed to ensure everyone understands and can adapt to the new process.

Tools for value stream mapping

Getting the visual element of value stream mapping is important, otherwise the technique is ineffective. To create effective VSM diagrams, you'll need the right tools.

  • Paper and whiteboards

Sometimes, the simplest tools are the most effective. You can create VSM diagrams using paper and whiteboards during brainstorming sessions or collaborative workshops. Team members can draw and annotate the map manually.

  • Post-it notes

Post-it notes can be used in conjunction with a whiteboard or large sheet of paper. They are handy for capturing information, labelling process steps, and easily repositioning elements during brainstorming and mapping sessions.

 

  • Excel

Microsoft Excel is a versatile tool for creating basic VSM diagrams. You can use Excel's shapes and lines to represent process steps and flows. While it may not provide the visual appeal of specialised VSM software, it's readily available and user-friendly.

  • Microsoft Visio

Microsoft Visio is a dedicated diagramming tool that offers VSM templates. It provides a more structured and professional way to create VSM diagrams, with shapes and symbols specifically designed for mapping.

  • Lucidchart

Lucidchart is an online diagramming tool that offers templates for creating VSM diagrams. It's collaborative, allowing multiple team members to work on the same diagram simultaneously. Lucidchart also integrates with other business software like Microsoft Office and Google Workspace.

  • Visme

Visme is a versatile online design and infographic tool that can be used for creating VSM diagrams. It offers a wide range of icons, shapes, and templates to represent different elements of your value stream. It's user-friendly and can help you create visually appealing diagrams.

  • Miro

Miro is an online collaborative whiteboard platform designed for visual collaboration. It's excellent for virtual teams or remote workshops. You can create VSM diagrams, add sticky notes, and collaborate in real-time.

  • SmartDraw

SmartDraw is a diagramming software that provides templates for VSM and other diagrams. It offers a variety of customization options and integrates with Microsoft Office and other tools.

  • Tallyfy

Tallyfy is a process management and workflow automation tool that can be used to create VSM diagrams. It's particularly useful if you want to document and automate your value stream processes simultaneously.

  • Kumu

Kumu is a web-based platform for creating system maps, which can be adapted for value stream mapping. It's a more advanced tool for visualising complex systems and relationships within a value stream.

  • Gliffy

Gliffy is an online diagramming tool that offers templates for VSM. It's easy to use and provides collaboration features for team-based mapping.

When choosing an office tool for value stream mapping, consider your team's preferences, the complexity of your processes, and whether you need real-time collaboration features. The right tool for your company will depend on your specific needs and the level of detail you want to capture in your VSM diagrams.

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