Part 4: Mapping the Current State: Value Stream Mapping

Detailed instructions on creating a value stream map (VSM) of current processes to identify key steps, involved personnel, systems, and data flows, along with timing and queue times.

Apr 01, 2024

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👋 Hey, it’s Sara. Welcome to my weekly newsletter where I share insights to become more efficient. Each week, there will be a featured article, a glimpse into technology, and community conversation.

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“All we are doing is looking at the timeline from the moment a customer gives us an order to the point we collect the cash. And we are reducing that timeline in the value stream by removing non value-added wastes.” – Taiichi Ohno

Introduction to Value Stream Mapping

Value Stream Mapping (VSM) is a technique within the continuous improvement toolkit, elevating the traditional process mapping to a data-driven level. It presents a comprehensive visual representation of how products or services journey from request to delivery, capturing not only the steps but also the flow of information and materials through the organization. This technique includes critical metrics at each stage, from time delays to inventory levels, offering a holistic view of the value creation process.

The imperative for such a skill in Industry 4.0 projects cannot be overstated. A recent LinkedIn survey reveals a compelling narrative: a staggering 85% of respondents emphasised the need to revitalize the proficiency in both crafting and interpreting Value Stream Maps. This statistic speaks volumes about the indispensable role VSM plays in diagnosing and refining business processes. It goes beyond documentation or compliance adherence, serving as a catalyst for identifying waste.

Value Stream Mapping sets the stage to reimagine how work is done, promoting a culture of continuous improvement. By defining the entire process from inception to completion, VSM fosters a shared understanding among cross-functional teams. This shared visibility breaks down barriers and empowers team members to collectively identify and act on opportunities for process optimization. VSM is not just a tool for mapping; it's a tool for transformation, driving businesses closer to their operational excellence goals.

In the previous article, we discussed finding a problem area to focus on. The Value Stream Map methodology can be applied to the process area where the problem exists for analysis. For example, if a customer’s biggest issue is that quotes take too long to complete, the VSM would be conducted on the process steps starting with the request from the customer and ending with the quote delivery. An alternative option is to conduct a comprehensive Value Stream Map of your entire value stream to expose problems. The comprehensive approach will take a lot longer to complete.

Key Components of VSM

Value Stream Mapping is adept at identifying inefficiencies. It integrates digital, material, and information flows, allowing businesses to identify where digital solutions can fill gaps, streamline processes, and enable smooth information exchange. This comprehensive perspective aids in spotting system redundancies, potential areas for automation, and opportunities to leverage real-time data analytics for better decision-making. Value Stream Mapping is completed with a cross-functional team, preferably in the same room with paper, icons, string, markers, etc. Tools such as Lucid Chart and Viso can be helpful when VSMs are done virtually. In the Tech Spotlight Section, we’ll go into more detail on VSM Tools.

The core components of a Value Stream Map in Industry 4.0 projects include:

Process Steps: These are typically depicted as rectangles on the map. Each rectangle represents a distinct step or stage in the workflow. These processes can be related to creating a product or delivering a service. By identifying and understanding each step of the process, we can pinpoint inefficiencies and areas for improvement.
Flow of Materials: This component is illustrated using arrows. The arrows trace the path that raw materials, components, and finished products take as they move through different stages of production or service delivery. Understanding material flow helps identify bottlenecks and delays.
Information Flow: The information flow section represents the communication of process-related information and data transmission. It ensures that relevant information (such as orders, specifications, and instructions) flows smoothly between different processes and stakeholders.
Timeline and Summary Statistics: At the bottom of the VSM, you’ll find a timeline or lead time ladder. This displays key process indicators (KPIs) related to time, such as cycle time, lead time, and processing time. These metrics help assess efficiency and identify areas for optimization.
Rework Loops: When products or information needs to return to an earlier step in the process is considered rework. Essentially, doing a task or operation two or more times before it is acceptable. Rework loops need to be included in the VSM.

Organizations can use Value Stream Mapping to methodically document and analyze their current operations, allowing them to strategically apply Industry 4.0 technologies to tackle particular inefficiencies. This targeted method improves operational performance and significantly boosts customer satisfaction and competitive edge. In the next article, we will explore evaluating the Value Stream Map for waste.

Steps to Create a Value Stream Map: Documenting the Current State Process

Here’s how to effectively create a VSM for your Industry 4.0 project:

Select the Product or Service: The first step in creating a VSM is to determine the focus. Decide on the product, service or process that will be analyzed. This selection will guide the entire mapping process, ensuring that efforts are concentrated on a specific area where the potential for improvement is the greatest. For ideas on scoping an area, read this article.
Create a RASCI Chart: Before diving into the mapping, it's crucial to organize your team. A RASCI Chart is an effective tool for this, as it clarifies the roles and responsibilities of everyone involved in the project. RASCI stands for Responsible, Accountable, Supporting, Consulted, and Informed, providing a clear framework for team structure.
Assemble the VSM Team: With the RASCI Chart in hand, you can now assemble your VSM team. Your team should include representatives from various departments or functions involved in the value stream. Collaborate with individuals who have firsthand knowledge of the process. With the team identified, schedule the Value Stream Mapping session.
Map the Current State:
- Identifying the steps in the process is the heart of VSM. Document each step involved in creating and delivering the product or service, from start to finish. This comprehensive documentation is foundational for understanding the current state of operations.
- Measuring and documenting the flow of materials and information is equally important. In the context of Industry 4.0, this includes not just physical materials but also the data flow through IoT devices, cloud platforms, and other digital tools that support the process. I prefer to collect sample records during this step.
- Capture rework loops in the process.
Identify Key Metrics: Once the process steps are mapped, the next step is to identify key metrics. These metrics are crucial for analyzing the current state and identifying areas for improvement.
1. Time Metrics: Measure cycle time including the touch time (the time it takes to complete a process), the queue time (the time waiting), and lead time (the total time from order placement to delivery). These metrics highlight efficiency and potential areas for improvement.
2. Inventory Metrics: Assess inventory levels at different stages. Excess inventory can lead to waste, while insufficient inventory may cause delays.
3. Process Efficiency Metrics: Evaluate process efficiency, such as first-pass yield, rework rates, and overall effectiveness.
Visualize with Symbols: VSM employs standard symbols to represent different aspects of the process, such as processes, flows, and delays. Using these symbols, visualize your map to create a clear, easily understandable representation of the current state. Click here for a free VSM template.
Validate the Map: The final step is to review the Value Stream Map with stakeholders and frontline employees. This validation ensures the accuracy of the map and garners buy-in from those involved in the process. It's a crucial step for ensuring that the VSM accurately reflects reality and that subsequent improvements are based on a correct understanding of the current state. Walk several different examples through the process steps to ensure any variation is captured.

Remember, a well-constructed Value Stream Map provides actionable insights for process optimization, waste reduction, and enhanced value delivery to customers.

Navigating Emotions in Value Stream Mapping Sessions

Often the most important dialog is the one that goes unsaid. Body language and emotional responses often provide clues when words are missing; they complete the story.

Negative Emotions - while conducting the value stream or process maps, make note of any negative emotions such as frustration, anger, disappointment, etc. When an opportunity presents itself, such as a review of the overall process map, ask probing questions to understand the negative emotion further. If possible, ask for a demonstration of the process step and use empathy to understand why the person feels that way. Often there is a clue of a hidden waste like an unnecessary step or rework.
Pride - pay attention when a quiet person speaks up to describe a step in detail, or defends the step if challenged. Sometimes the non-value add work is the work that a person is the most proud of. Their self worth is connected to those tasks, so it is important to be extra engaging and sensitive when discussing changes to those tasks.
Ah-ha moments, light bulbs, and sudden excitement - even in the most structured value stream mapping exercises, people have ideas appear. Document these ideas, who said it and any extra details in the moment. Do not discount the idea because it is not the right time, otherwise, the person may not share ideas later. However, jumping into brainstorming while conducting a value stream map can make the process veer off course, so document the idea to lock the passion in a box and move onto the planned discussion. Make sure to revisit the idea later.

Conclusion: The Journey Ahead

VSM is a fundamental tool for transformative change. By meticulously mapping out the current state of processes, identifying inefficiencies, and envisioning the ideal state, VSM enables teams to create actionable roadmaps for sustainable improvement.

In our next newsletter, we will delve deeper into the analysis of waste within the value stream, building on the foundation we've established here. Together, we will uncover strategies to further streamline our processes, enhance productivity, and ultimately, drive our businesses forward in an ever-competitive landscape.

Thank you for joining us on this journey through the fundamentals of Value Stream Mapping.

Tech Spotlight: VSM Tools

In the realm of Value Stream Mapping (VSM), leveraging the right software can significantly enhance the efficiency and effectiveness of your process mapping endeavors. This month's Tech Spotlight shines on three leading VSM software options: Microsoft Visio, Lucidchart, and Miro. Each offers unique features and capabilities designed to support your VSM initiatives.

Microsoft Visio: A leader in the world of diagramming tools, Microsoft Visio provides a robust platform for creating detailed Value Stream Maps. With a comprehensive set of shapes, templates, and drawing tools, Visio allows users to craft precise and professional diagrams. Its integration with other Microsoft Office products ensures a seamless user experience, making it a go-to option for organizations already entrenched in the Microsoft ecosystem. However, it's worth noting that Visio requires a license, which may be a consideration for cost-conscious teams.

Lucidchart: Emphasizing ease of use and collaboration, Lucidchart is a cloud-based diagramming solution that offers an intuitive drag-and-drop interface for creating VSMs. With a vast library of shapes and templates specifically designed for VSM, Lucidchart facilitates the quick assembly of maps, even for those with minimal diagramming experience. Its real-time collaboration features make it an excellent choice for teams working remotely, allowing multiple users to edit and comment on diagrams simultaneously. Lucidchart operates on a subscription model, with various plans to suit different team sizes and needs.

Miro: Miro takes a more expansive approach as an online collaborative whiteboarding platform that supports a wide range of diagramming and brainstorming activities, including VSM. Its infinite canvas gives teams the flexibility to map out even the most complex processes without constraints. Miro excels in fostering team collaboration with features like video conferencing, chat, and the ability to leave notes and feedback directly on the board. Ideal for distributed teams, Miro ensures that geographical boundaries do not hinder the value stream mapping process. Miro offers a freemium model, with paid plans providing additional features and controls for larger teams.

Choosing Your VSM Software: When selecting a VSM tool, consider factors such as the complexity of your processes, the size and distribution of your team, and your budget. Visio, Lucidchart, and Miro each offer distinct advantages, whether you prioritize detailed diagramming, ease of use and collaboration, or the flexibility of a large, interactive canvas. By aligning your choice with your team's specific needs and preferences, you can ensure that your VSM efforts are both productive and engaging.

Community Conversation

Do you have other questions do you have that I can answer here? Answer in the comments or hit me up on LinkedIn.

Thank you for being a part of our journey. If you’ve found value in our conversation, please consider sharing this newsletter with others who might benefit and contribute.

Until next time, thank you for your support and curiosity.

— Sara 🙋‍♀️

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