Value Stream Mapping and Value Methodology

                Many huge company use Value Stream Mapping as a tool to analyze process flow from a systems perspective and to document the process performance. An interesting part of this tools is it can capture both value added or non value added activities during the process. By these tools, the sources of waste can be seen.

                Value Stream Mapping is a technique that established as a common language to document process and provides a blueprint for improvement. There are some states in this technique, the first state called as current state, the next state called as future state.

Current state map is drawn by a cross functional, multi discipline team to document how things actually operate. In this state can be seen the differentiation between how things should be done and the actual process. Future state map is developed to design a lean process flow through the elimination of the root causes of waste and through process improvements – all leading to an Implementation Plan that details the action steps needed to support the objectives.

The key elements of the Value Stream are documented on the map in an established sequence:

1.       The customer and their requirements

2.       Main process steps

3.       Process Metrics (process time, wait time, first time quality)

4.       Supplier with material flows

5.       Information and physical flows

6.       Overall performance of the value stream

Many obvious parallels exist between Value Stream Mapping and the Value Methodology, including the few mentioned previously.  VM is about building value for the customer by improving performance (or function) while reducing life-cycle cost, VSM is about building value for the customer by eliminating waste and non-value added work.  There are also key similarities of purpose between VSM and VM, such as starting with – and maintaining – a focus on the customer and getting the right people involved in a creative process. 

The Value Methodology is very much about balance – in improving performance while reducing (total) cost while satisfying the customer.  Value Stream Mapping works to strike a balance as well and uses a similar structured approach that bears a striking resemblance to VM.