LEAN: Value Stream Mapping Tool
Value Stream Mapping is a Lean tool which is jotted down with paper and pencil. It is helpful in identifying the flow of information and material of a product or service which passes through the value stream. This value stream map of Lean is different from the process map of Six Sigma in the following four ways:
1. Value stream mapping enables gathering a much broader information range than that done by process mapping typically.
2. It is placed at a higher level (5 to 10 boxes) than the process maps.
3. It is employed at a broader level, that is, right from receipt of raw material to the delivery of finished product.
4. It enables identification of focus for future sub-projects, projects, and/or Kaizen events.
In order for an action to be value added, it must fulfill the following three requirements:
1. Payment is guaranteed by the customer for this action.
2. The action must be performed in the right manner at the first instance itself.
3. It must effect a change in the product/service in some way.
When you check the ‘Seven elements of waste’, you can further split into the following ways for categorization:
- Percentage True Value Added
- Percentage True Non Value Added
- Percentage Necessary Waste (which is a legal requirement)
A value stream map, also called the end-to-end system map, focuses on the information and management systems pertaining to basic process, rather than mere product activity. It aids in reducing the cycle time because it enables you to understand not only the process flow, but also the decision-making flow.
Ideally, you can first have your process mapped, and then you can map the information flow above it. This helps in enabling the process flow to start. While coming to cost and quality, value always equates quality over the cost. It means that the quality increases as cost reduces. There are times when costs increase as we tend to improve the quality. But an improved quality gradually leads to reduction of costs like hidden or opportunity costs in the long term.
