Creating a Value Stream Map
1. Introduction: Mapping as the Foundation of Improvement
Process improvement is crucial for organisations striving to stay ahead of their competitors. It refers to the ongoing efforts to enhance the efficiency, quality, and performance of business processes. This involves identifying, analysing, and improving existing business processes to meet new goals or standards, reducing inefficiencies, and ultimately increasing value for both customers and the organisation. Understanding the purpose of a Value Stream Map is an essential part of this process.
For businesses looking to improve their operations, process improvement isn't just a one-time process; it's a continuous effort that plays a key role in gaining and maintaining a competitive edge.
One of the most effective tools in driving process improvement is Value Stream Mapping (VSM). VSM helps organisations identify waste, bottlenecks, and areas of inefficiency. It provides a clear, actionable roadmap to optimise workflows, improve speed, and eliminate unnecessary steps.
VSM is invaluable in Lean and Six Sigma projects, helping teams visualise where improvements are needed and how to strategically eliminate waste while maintaining or increasing quality.
This article will explore how VSM is linked to process improvement, examining how it provides a visual representation of processes, enabling teams to identify opportunities for improvement and optimise flow.
2. What Is Process Improvement?
Process improvement refers to the systematic approach of analysing, optimising, and enhancing existing business processes to achieve better results. The ultimate goal of process improvement is to increase efficiency, quality, speed, and cost reduction, thereby providing more value to customers and the organisation as a whole.
Efficient processes are crucial in today’s competitive business environment, where organisations constantly need to adapt, streamline operations, and reduce waste to maintain a competitive advantage.
The key goals of process improvement are:
- Efficiency: Improving areas where costs can be minimized without compromising on quality or customer satisfaction. Efficiency helps us reduce costs.
- Productivity: Efficiency and Productivity are related terms but slightly different. Productivity is about doing more with less. Productivity allows you to grow revenue.
- Quality: Enhancing the quality of products or services to meet or exceed customer expectations.
- Speed: Reducing lead times and accelerating process cycles to meet customer demand faster.
There are many different methodologies used to drive process improvement. We’ve listed 4 of the most common in use today. Using one of these (or more) methodologies as a base will help you build your own framework for your organisation.
- Lean
Lean methodology focuses on eliminating waste in all its forms to improve process efficiency. The main idea is to deliver more value to customers while using fewer resources. Lean achieves this by removing non-value-added activities such as excessive movement, waiting times, and overproduction.
- Six Sigma
Six Sigma is a data-driven approach that focuses on reducing process variation and improving quality by identifying defects and their root causes. The methodology uses statistical analysis to measure and control process performance.
- Total Quality Management (TQM)
TQM is an organisation-wide approach to improving the quality of products and services. It emphasises continuous improvement, customer satisfaction, and the involvement of all employees at every level of the organisation in driving quality improvements.
- Agile
Agile Business Management is a flexible, iterative approach to managing projects and operations, emphasizing adaptability, collaboration, rapid feedback and continuous improvement to deliver customer value and respond to change.
VSM plays a crucial role in process improvement by providing a visual representation of a process. It helps organisations identify inefficiencies, waste, and bottlenecks within the workflow, making it easier to pinpoint areas for improvement. In the context of Lean, Six Sigma, Agile and TQM, mapping is used to:
- Identify Waste: In Lean, mapping helps identify areas where waste (such as waiting, overproduction, or unnecessary movement) can be eliminated to improve process efficiency.
- Analyse Variability: In Six Sigma, mapping is used to understand how processes vary and identify where defects or errors occur, enabling teams to apply DMAIC (Define, Measure, Analyze, Improve, Control) to reduce defects and improve quality.
- Engage Employees: In TQM, mapping fosters team collaboration, as it visually illustrates the process and encourages input from employees at all levels to contribute to the improvement effort.
3. What Is Value Stream Mapping and the Purpose of a Value Stream Map ?
VSM is a visual tool used in Lean methodology to analyse, design, and optimise the flow of materials and information for a product or service. VSM provides a clear, end-to-end view of a process, helping organisations understand how work moves through a system and where inefficiencies, waste, or bottlenecks occur. It is often used to help identify areas for improvement, reduce waste, and improve overall process efficiency by focusing on eliminating non-value-added activities.
VSM is designed to give a holistic view of the entire value stream, from the moment raw materials or customer requests are received to the point when the final product or service is delivered. By mapping this end-to-end flow, VSM helps identify:
- Bottlenecks: where work is delayed or stopped.
- Waste: in the form of excess inventory, overproduction, unnecessary movements, or waiting times.
- Opportunities for improvement: helping teams streamline workflows, eliminate inefficiencies, and deliver more value to the customer.
Ultimately, VSM enables organisations to make informed decisions about where to apply Lean principles, leading to enhanced process performance and improved customer satisfaction. You can explore more information about VSM in our two articles, “Value Stream Mapping: The Lean Tool That Drives Real Business Change” and “How To Create A Value Stream Map: Step-by-Step Guide For Lean Success”.
4. How VSM Enables Process Improvement
- Identifying Waste and Bottlenecks
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- VSM helps teams "see" waste in the process (overproduction, delays, rework), it often uses the framework of TIMWOODS to determine the different types of waste.
- It helps identify bottlenecks even when the day-to-day situation is changing all the time, offering real-time analysis.
- Clarifying Current Performance
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- VSM measures takt time, lead time, and non-value-added time.
- It measures labour balance, error and rework rates, where queues and delays form.
- The Current State value stream map defines what is currently happening and where the best opportunities for improvement are.
- Designing the Future State
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- The Future State value stream map is a picture of what the future could look like. It is a basis for reimagining a more efficient, leaner process.
- Teams with an ambitious future state design achieve more than teams that are simply trying to improve the current state.
5. VSM Within Common Improvement Frameworks
Value Stream Mapping (VSM) plays a significant role in several widely recognised improvement frameworks, including Lean, Six Sigma, and Agile. Each of these methodologies focuses on improving process efficiency and effectiveness, and VSM is a key tool to visualise and optimise workflows in these frameworks.
Here is how VSM can support each methodology:
- Lean
VSM is considered one of the core tools used to achieve continuous improvement by eliminating waste and improving the flow of processes. Lean focuses on delivering more value to customers with fewer resources by streamlining operations. VSM helps by providing a visual representation of the entire process, from raw materials or customer requests to the final product or service delivery.
VSM can support Lean by providing a clear picture of how materials and information flow across the value stream, highlighting the different types of waste, and aligning with the principle of Kaizen, which drives small improvements throughout the process.
- Six Sigma
VSM plays a critical role in the Define and Measure stages of the DMAIC (Define, Measure, Analyze, Improve, Control) methodology. Six Sigma aims to reduce process variation and improve quality by identifying and eliminating defects, and VSM is used to map the current state of a process and understand key metrics that drive improvement efforts.
VSM assists to identify the scope of the process and align stakeholders on the process flow during the Define stage. It also provides metrics during the Measure stage.
- Agile and Digital Transformation
VSM is increasingly used to streamline processes, improve collaboration, and speed up product delivery. These frameworks are focused on iterative development and continuous delivery, and VSM supports these goals by visualising the flow of work in IT systems, software development, and DevOps pipelines.
6. Real-World Examples: The Purpose of a Value Stream Map in Process Improvement with VSM
Ethan works in an IT organisation, and it was noted that there were long delays in the release of new features and bug repairs. He used VSM to help him analyse the DevOps pipeline. He discovered a few bottlenecks: a high waiting time for bugs to be triaged and assigned, manual testing increasing time before the feature was released, and low coordination between development and operations teams.
Once these were identified, the organisation improved the process by automating testing, introducing continuous integration and continuous delivery pipelines for faster deployment. This led to a decrease in the software release time by 50% and an increase in customer satisfaction.
Sandra works in a telecommunication company, and it has been noted that there is customer dissatisfaction due to long wait times for resolution, inefficient customer support with multiple hand-offs offs and low communication between departments.
Using VSM, Sandra identified two main inefficiencies in the customer service process. These were unnecessary handoffs and the need for excessive approvals across departments. By implementing a single point of contact for the customer and automation of as many steps as possible, the company was able to decrease the resolution wait time by 40% and increase customer satisfaction.
As can be seen in the above examples, VSM is a valuable tool within a process improvement movement.
7. When to Use VSM in Process Improvement Projects
Knowing when to use VSM in your process improvement projects can ensure that you are using the tool effectively and not unnecessarily.
These are a few of the times to use VSM:
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- Early-Stage Diagnosis Tool (before jumping to solutions): It is important to understand the current state of a process before trying various solutions. Using VSM at this point can help you visualise the current state and identify waste and inefficiencies, enabling you to focus your solutions on the right area. This means you can use VSM as a diagnostic tool that gathers real-time metrics for accurate process improvement.
- During Kaizen events to define the right problem area: During a kaizen event or workshop, VSM can help narrow the focus to the key problem areas, giving the event a specific guideline on what solutions to focus on. This means the event can focus on the right target area, create a shared visual map of the current process to help everyone have the same understanding, and help highlight areas where step-by-step improvements can be made.
- A baseline and communication tool used across teams: VSM helps document and communicate process improvements across multiple stakeholders and teams. By establishing a baseline, you ensure that everyone has the same understanding of the current state.
8. Tools and Resources for Mapping and Analysis
You can find various free PowerPoint templates for training and presentations, as well as Excel-based templates with built-in formulas for lead time, cycle time, etc.
Look at some of these downloadable resources, like a value stream mapping PDF or a value stream mapping PPT template. These editable templates can help you begin the development of your own VSMs.
You can also explore various free software tools that can help you create basic value stream maps. Some of these include Lucidchart, Miro, and Draw.io. For an in-depth look into these tools, look at our article “Top Free Software For Value Stream Mapping: Improve Flow, Drive Change”.
9. Conclusion: Better Processes Start With Seeing Clearly
Working with process improvement frameworks requires efficient and helpful tools, one of which is VSM. By using VSM at the right time, you can enhance your improvement process and have an optimally functioning organisation.
Knowing more about VSM can help you know how to implement it successfully. The following articles will be beneficial reads:
- Value Stream Mapping: The Lean Tool That Drives Real Business Change
- How To Create A Value Stream Map: A Step-by-Step Guide for Lean Success
- Value Stream Mapping vs Process Mapping: Which Will Deliver Better Business Success
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