Value-stream mapping

Value-stream mapping, also known as material- and

information-flow mapping,[1] is a lean[2]-
management method for analyzing the current state and
designing a future state for the series of events that take
a product or service from the beginning of the specific
process until it reaches the customer. A value stream
map is a visual[2] tool that displays all critical steps in a
specific process and easily quantifies the time and
volume taken at each stage.[3] Value stream maps show
the flow of both materials and information as they
progress through the process.[4]
Value-stream mapping usually employs standard
symbols to represent items and processes,
Whereas a value stream map represents a core business
therefore knowledge of these symbols is essential
process that adds value to a material product, a value
to correctly interpret the production system
chain diagram shows an overview of all activities
problems.
within a company.[4] Other business activities may be
represented in "value stream diagrams" and/or other
kinds of diagram that represent business processes that create and use business data.

Purpose
The purpose of value-stream mapping is to identify and remove or reduce "waste" in value streams,[2]
thereby increasing the efficiency of a given value stream. Waste removal is intended to increase
productivity by creating leaner operations which in turn make waste and quality problems easier to
identify.[5]

Applications

Value-stream mapping has supporting methods that are often used in Lean environments to analyze and
design flows at the system level (across multiple processes).

Although value-stream mapping is often associated with manufacturing, it is also used in logistics, supply
chain, service related industries, healthcare,[6][7] software development,[8][9] product development,[10]
project management,[2] and administrative and office processes.[11]

Identifying waste

Types of waste

Daniel T. Jones (1995) identifies seven commonly accepted types of waste. These terms are updated from
Toyota's operating model "The Toyota Way" (Toyota Production System, TPS) original nomenclature
(muda):[12]
 1. Faster-than-necessary pace: creating too much of a good or service that damages
production flow, quality, and productivity. Previously referred to as overproduction, and leads
to storage and lead time waste.
2. Waiting: any time goods are not being transported or worked on.
3. Conveyance: the process by which goods are moved around. Previously referred to as
transport, and includes double-handling and excessive movement.
4. Processing: an overly complex solution for a simple procedure. Previously referred to as
inappropriate processing, and includes unsafe production. This typically leads to poor layout
and communication, and unnecessary motion.
5. Excess stock: an overabundance of inventory which results in greater lead times,
increased difficulty identifying problems, and significant storage costs. Previously referred to
as unnecessary inventory.
6. Unnecessary motion: ergonomic waste that requires employees to use excess energy
such as picking up objects, bending, or stretching. Previously referred to as unnecessary
movements, and usually avoidable.
7. Correction of mistakes: any cost associated with defects or the resources required to
correct them.

Waste removal operations

Yasuhiro Monden (1994) identifies three types of operations:[13]

1. Non-value adding operations (NVA): actions that should be eliminated, such as waiting.
2. Necessary but non-value adding (NNVA): actions that are wasteful but necessary under
current operating procedures.[12]
3. Value-adding (VA): conversion or processing of raw materials via manual labor.[12]

NNVA activities may also be referred to as "sustaining non-value adding", i.e. they have to be done, or
they are necessary to sustain the business but do not contribute to customer requirements.[14]

For additional views on waste, see Lean manufacturing.

Using the method

There are two kinds of value stream maps, current state and future state. The current state value stream
map is used to determine what the process currently looks like, the future state value stream map focuses on
what the process will ideally look like after process improvements have occurred to the value stream.[4]

The current state value stream map must be created before the future state map and is created by observing
the process and tracking the information and material flow.[15] The value stream map is then created using
the following symbols:

In a build-to-the-standard form, Shigeo Shingo[16] suggests that the value-adding steps be drawn across the
centre of the map and the non–value-adding steps be represented in vertical lines at right angles to the value
stream. Thus, the activities become easily separated into the value stream, which is the focus of one type of
attention, and the "waste" steps, another type. He calls the value stream the process and the non-value
streams the operations. The thinking here is that the non–value-adding steps are often preparatory or tidying
up to the value-adding step and are closely associated with the person or machine/workstation that executes
that value-adding step. Therefore, each vertical line is the "story" of a person or workstation whilst the
horizontal line represents the "story" of the product being created.
Value-stream mapping is a recognised method used as part of Lean Six Sigma methodologies.[17]

Value-stream mapping analyzes both material (artifact) and information flow.[18] The following two
resources exemplify the use of VSM in the context of software process improvement in industrial settings:

"Artifact analysis": analysis of software artifacts like requirements, use case, change request
or defect report through the development process[19]
"Information flow analysis": analysis of information flows in the development process[20]

Associated analysis methods

Hines and Rich (1997) defined seven value-stream mapping tools.[21] These are:

1. Process activity mapping: the initial step of constructing a map which consists of a study of
process flows, waste identification, and business process re-engineering.
2. Supply chain response matrix: identifying critical bottlenecks for processes in a simple
diagram.
3. Production variety funnel: helps draw connections to other industries that may have
solutions to existing problems.
4. Forrester effect mapping: line graphs showing the customer demand and production,
allowing visualisation of supply and demand and potential delays.
5. Quality filter mapping: locates product and service defects in the supply chain.
6. Decision point analysis: determines inflection points for push-and-pull demand in the
supply chain.[22]
7. Physical structure mapping: combined model that overviews supply chain from an
industry level.[12]

See also
Business process mapping
Lean manufacturing
Value-stream-mapping software
Value chain
Value stream

Citations
1. Manos, Tony (June 2006). "Value Stream Mapping—an Introduction" (https://asq.org/quality-
progress/articles/lean-lessons-value-stream-mapping-an-introduction?id=f7f918b0c03f4bd2
a8f68b18755d7917). Quality Progress. American Society for Quality. p. 64 – via University of
Washington.
2. Project Management Institute 2021, §4.6.6 Focus on Value.
3. "What is Value Stream Mapping? Definition and Details" (https://kanbanize.com/lean-manag
ement/value-waste/value-stream-mapping/). Retrieved 13 November 2019.
4. Rother, Mike; Shook, John (1999). Learning to See: value-stream mapping to create value
and eliminate muda. Brookline, Massachusetts: Lean Enterprise Institute. ISBN 0-9667843-
0-8.
 5. Depository, Book. "34 for Quality : John Bicheno : 9780951382943" (https://www.bookdeposi
tory.com/34-for-Quality-John-Bicheno/9780951382943). www.bookdepository.com.
Retrieved 2018-03-22.
6. Graban, Mark (2011). Lean Hospitals: Improving Quality, Patient Safety, and Employee
Engagement (http://www.crcpress.com/product/isbn/9781439870433). Boca Raton, Florida:
CRC Press. ISBN 9781439870433.
7. Graban, Mark; Swartz, Joseph (2011). Healthcare Kaizen: Engaging Front-Line Staff in
Sustainable Continuous Improvements (http://www.crcpress.com/product/isbn/97814398729
63). Boca Raton, Florida: CRC Press. ISBN 9781439872963.
8. Plenert, Gerhard (2011). Lean Management Principles for Information Technology (http://ww
w.crcpress.com/product/isbn/9781420078602). Boca Raton, Florida: CRC Press.
ISBN 9781420078602.
9. Bell, Steven; Orzen, Michael (2010-09-14). Lean IT: Enabling and Sustaining Your Lean
Transformation (http://www.crcpress.com/product/isbn/9781439817568). Boca Raton,
Florida: CRC Press. ISBN 9781439817568.
10. Mascitelli, Ronald (2011). Mastering lean product development: a practical, event-driven
process for maximizing speed, profits and quality. Northridge, California: Technology
Perspectives. ISBN 9780966269741.
11. Keyte, Beau; Locher, Drew (2004). The Complete Lean Enterprise: Value Stream Mapping
for Administrative and Office Processes (http://www.crcpress.com/product/isbn/97815632730
18). New York: Productivity Press. ISBN 9781563273018.
12. Hines, Peter; Rich, Nick (1997-01-01). The seven value stream mapping tools (https://www.r
esearchgate.net/publication/235309659). Vol. 17.
13. Toyota Production System - An Integrated Approach to Just-In-Time | Y. Monden | Springer
(https://www.springer.com/gb/book/9781461597162).
14. Cain, M., Business Process Improvement: the Hambleton Story (https://www.valueadding.co
m/images/case-study/valueadding-case-study-hambleton-council-planning-improvement.pd
f), accessed 13 August 2020
15. Ali N.B., Operationalization of lean thinking through value-stream mapping with simulation
and FLOW (http://www.diva-portal.org/smash/get/diva2:833808/FULLTEXT01.pdf)
[dissertation]. Karlskrona: Department of Software Engineering, Blekinge Institute of
Technology; 2015.
16. Shingo, Shigeo (1985). A Revolution in Manufacturing: The SMED System (https://archive.or
g/details/managerialengine0000fuku/page/5). Stamford, Connecticut: Productivity Press.
pp. 5 (https://archive.org/details/managerialengine0000fuku/page/5). ISBN 0915299097.
17. "Value Stream Mapping" Article Source: http://www.isixsigma.com/index.php?
option=com_k2&view=itemlist&layout=category&task=category&id=90&Itemid=222#
18. Rother, Mike, and John Shook. Learning to see: value stream mapping to add value and
eliminate muda. Lean Enterprise Institute, 2003.
19. Ali NB, Petersen K, Breno Bernard Nicolau de França. Evaluation of simulation-assisted
value-stream mapping for software product development: Two industrial cases. Information
and Software Technology. 2015;68:45.
20. Ali NB, Petersen K, Schneider K. FLOW-assisted value-stream mapping in the early phases
of large-scale software development (https://www.diva-portal.org/smash/get/diva2:881321/F
ULLTEXT01.pdf). Journal of Systems and Software. 2016;111:213-27.
21. Rich, Nick; Esain, Ann; Bateman, Nicola (1997). Lean Evolution: Lessons from the
Workplace. Cambridge University Press.
22. Hoekstra, Sjoerd; Romme, Jac (1992). Integral Logistic Structures: Developing Customer-
oriented Goods Flow (https://books.google.com/books?id=DQQoB4T2kGEC). Industrial
Press Inc. ISBN 9780831130374.

References
Project Management Institute (2021). A guide to the project management body of knowledge
(PMBOK guide). Project Management Institute (7th ed.). Newtown Square, PA. ISBN 978-1-
62825-664-2.

External links
Media related to Value stream mapping at Wikimedia Commons
Value-stream mapping – Lexicon term (https://www.lean.org/lexicon-terms/value-stream-map
ping/) at the Lean Enterprise Institute website

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