A core concept to lean thinking is the ability to enhance a business’ “value” by eliminating anything that doesn’t add benefit. Value Stream Mapping will highlight the waste that is constraining the performance of your business.
Value Stream Mapping (VSM) was devised to add value to businesses through improved everyday processes. If your operations are victim to processes that aren’t lean, here’s why VSM could become your secret weapon.
What do we mean by “Value”?
“Value” is the benefit you give to the customer. It represents how well your product or service fulfils the needs of a customer, giving them as much as possible for their money.
What is Value Stream Mapping?
VSM is a lean tool used to lay out and improve the various steps in any process or project, from start to finish, as a way of visualising or “mapping” the stages. VSM isn’t limited to manufacturing processes; any industry can benefit - just find a template and edit it to suit your unique processes.
The visualisation helps you to clearly understand how information and materials flow through the stream, from order to dispatch.
How can VSM add Value to Businesses?
The good news is you don’t need expensive software to lay out a value stream map. All you need is a pen and paper to create a diagram that mirrors the steps involved in your vital business flows
It’s one of the most impactful lean tools for a number of reasons, including:
- It offers a broader, end-to-end overview of how the business operates
- It helps you to identify macro waste
- It provides actionable feedback for future improvement and transformation
1. Value Stream Mapping offers an End-to-End, Whole of Business Overview
Value stream and process mapping provide businesses with a comprehensive view of their entire workflow, from initial inputs to final outputs. By visually mapping each step in the process, this approach highlights how people, materials, and information flow across various functions. This end-to-end perspective enables businesses to uncover inefficiencies that span multiple departments or touchpoints. With a holistic understanding of operations, leaders can identify opportunities for improvement, align them with strategic objectives, and drive efficiency across the organization.
2. Value Stream Mapping can Help Identify Macro Sources of Waste
Value stream and process mapping are particularly effective tools for identifying larger, systemic sources of waste that impact the entire operation. These methods help pinpoint issues such as overproduction, excessive wait times, unnecessary transportation, or underutilized resources—problems that are often hidden when examining isolated processes. By focusing on macro-level inefficiencies, value stream and process mapping allow businesses to address root causes rather than surface-level symptoms. This ensures that improvement efforts are targeted toward the most significant opportunities to enhance value and reduce waste across the organization.
3. Value Stream Mapping Drives Continuous Improvement and Long-Term Success
Value stream and process mapping are not just tools for one-time fixes; they are key to fostering a culture of continuous improvement within a business. By providing a clear visual representation of workflows, these methods empower teams to regularly identify inefficiencies, monitor progress, and adapt processes as conditions evolve. Value stream and process mapping encourage collaboration across departments, ensuring that improvements are aligned with the organization's long-term goals. Over time, this proactive approach helps businesses stay agile, optimize resource allocation, and consistently deliver greater value to customers, establishing a foundation for sustained success..
We recommend putting your VSM on display for everyone involved in each process to see. Check the OE Partners resources regularly for tools and techniques you can use to transform your business.