Step 1 in Value Stream Mapping

As we discussed in an earlier article, one of the most critical steps in the value stream creation process is recognizing non-value (waste) in your process. Value stream mapping brings together lean concepts and techniques and helps to avoid the “cherry picking syndrome” in which processes that have very little impact on the product or service are chosen because they will be easy to improve.

Identify the Proper Process

This step cannot be stressed enough because it is often overlooked by many companies new to lean. Fresh out of training, the VSM team often runs out and starts mapping the first process they see. While value stream mapping anything is better than nothing, efforts should be focused on the critical processes having the greatest impact on the product.

Let’s look at a typical supply chain transaction from the point of a customer order through delivery of the product. This example shows a macro view of the supply chain cycle to illustrate how value stream mapping works. This high-level view would be one way to drive lean down through the supply chain to sub-suppliers. Of course, discrete processes within each supplier would need to be value stream mapped to enable reductions in their respective lead-times. The attached diagram depicts a product with an eight-week lead-time, which after value stream mapping the process, reveals that there are only 7 ½ hours of value-added time on this product. As unbelievable as these results sound, most organizations experience a similar disparity in their processes. The key takeaway of this scenario is that the excessive lead-time has created enough customer dissatisfaction that the business is in jeopardy.