Value Stream Map


O'PEEP EXPLAINS VSM (VALUE STREAM MAP)  

Every Saturday O‘Peep makes tasty Burgers for his 10 best friends. Unbelievable, always something goes wrong, and O‘Peep finds out only when he wants to assemble the Burgers. Either no salad at all, or not enough patties, the barbecue is out of gas, and sometimes the buns are not ready. With a VSM you can create an overview on the value creation process and see where mistakes are originated. It leads to great new concepts on how to organize the whole process of creating burgers.
 

WHAT IS A VALUE STREAM MAP

A Value Stream Map (VSM) is a process map that gives insights into the value creation process from order to delivery. A Value Stream Map is a tool to visualize the value creation process on a high level. It brings transparency into success-critical interactions displaying relevant metrics and data in their context. It shows how the order triggers planning, and which information flow is comprised in planning. VSM shows information and material flows in a way that is intuitively understandable. Typically, you use VSM to identify potentials for improvement, e.g. how to improve Service Level.


 

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WHY WORK WITH VALUE STREAM MAPS

  • Improve Service Level, cut Lead Time 
  • Identify opportunities for Cash Out
  • Become more productive and drive a culture of productivity
  • Improve collaboration of different teams in the value creation process: behaviors, culture, communication, and collaboration
  • Prioritize improvement initiatives – building on customers’ perspectives
  • Get to a common view by working on the VSM together and discussing the critical points

HOW TO CREATE A VALUE STREAM MAP

A step-by-step approach to map the current state. Depending on the situation not all steps are required:

  • Define the process: Customer and process goals, value, start and stop point
  • List activities, actors, systems, and information flow
  • Add inputs and outputs
  • Decide which metrics are relevant for your goals:  
    • Processing Time
    • Waiting Time
    • Cycle Time
    • Changeover imes
    • Resources
    • OEE
    • Batch sizes
    • Shifts
    • Capacities
    • Product variants and volumes, and their variation: Decide whether you need to consider min / max / average values
  • Depending on what you want to achieve: value-adding and non-value adding activities / 8 Types of Waste
  • How is work being prioritized
  • Process Cycle Efficiency
  • Helicopter view: What are the 2-3 key issues

HOW TO BUILD A FUTURE STATE MAP 

Guiding Questions

  1. In which downstream process is the Cycle Time similar or higher than Customer Takt?
  2. Will you produce to a Finished Goods supermarket or directly to customer order?
  3. Where can you implement continuous flow processing?
  4. Where will you need to use supermarket or Pull Systems or FIFO lanes to control production upstream?
  5. Which step is the pacemaker?
  6. How will you level the production mix at the pacemaker?
  7. How will you level the production volume at the pacemaker?
  8. What process improvements will be necessary to accomplish the future state?