What is Value-Stream Mapping

“Value stream” may be a new phrase in your vocabulary. A value stream is all the actions
(both value added and non-value added) currently required to bring a product through the
main flows essential to every product: (1) the production flow from raw material into the
arms of the customer, and (2) the design flow from concept to launch. This workbook
looks at the production flow from customer demand back through raw material, which
is the flow we usually relate to lean manufacturing and precisely the area where many
have struggled to implement lean methods.

Taking a value stream perspective means working on the big picture, not just individual
processes, and improving the whole, not just optimizing the parts. If you truly look at the
whole and go all the way from molecules into the arms of the customer, you will need to
follow the value stream for a product across many firms and even more facilities. But
mapping this entire stream is too much for getting started!

This workbook covers the “door-to-door” production flow inside a plant, including
shipment to the plant’s customer and delivery of supplied parts and material, where you
can design a future-state vision and start implementing it right away. This is a good level
at which to begin your mapping and lean implementation effort.

As your lean experience and confidence grow you can expand outward, from the plant
level toward the complete molecules-to-end-user map. Note, however, that in large
companies when a product’s value stream passes through more than one of your own
facilities, expanding the mapping effort to include the flow through your other facilities
should happen very quickly.

THIS BOOK
SUPPLIERS YOUR PLANT OR COMPANY CUSTOMER TO END
USER
SUPPLIERS YOUR PLANT OR COMPANYCUSTOMER TO END USER

T O T A L V A L U E S T R E A M
TOT A L VALU E S TREA M

PART I: GETTING STARTED 1

Value-stream mapping is a pencil and paper tool that helps you to see and understand
the flow of material and information as a product makes its way through the value
stream.
What we mean by value-stream mapping is simple: Follow a product’s production path
from customer to supplier, and carefully draw a visual representation of every process
in the material and information flow. Then ask a set of key questions and draw a
“future- state” map of how value should flow.

Doing this over and over is the simplest way — and the best way we know — to teach
yourself and your colleagues how to see value and, especially, the sources of waste.

WHY VALUE-STREAM MAPPING IS AN ESSENTIAL TOOL

•It helps you visualize more than just the single-process level, i.e. assembly, welding,
etc., in production. You can see the flow.

•It helps you see more than waste. Mapping helps you see the sources of waste
in your value stream.

•It provides a common language for talking about manufacturing processes.

•It makes decisions about the flow apparent, so you can discuss them. Otherwise,
many details and decisions on your shop floor just happen by default.

•It ties together lean concepts and techniques, which helps you avoid “cherry picking”.

•It forms the basis of an implementation plan. By helping you design how the
whole door-to-door flow should operate — a missing piece in so many lean efforts
— value- stream maps become a blueprint for lean implementation. Imagine
trying to build a house without a blueprint!

•It shows the linkage between the information flow and the material flow. No other
tool does this.

•It is much more useful than quantitative tools and layout diagrams that produce a tally
of non-value-added steps, lead time, distance traveled, the amount of inventory, and so
on. Value-stream mapping is a qualitative tool by which you describe in detail how your
facility should operate in order to create flow. Numbers are good for creating a sense of
urgency or as before/after measures. Value-stream mapping is good for describing what
you are actually going to do to affect those numbers.
Practice drawing value-stream maps and you will learn to see your shop floor in a way that
supports lean manufacturing. Just remember that the point of getting lean is not
“mapping,” which is just a technique. What’s important is implementing a value-adding
flow. To create this flow you need a “vision” of the flow. Mapping helps you see and focus on
flow with a vision of an ideal, or at least improved, state.

You shouldn’t run out and map all your value streams right away. To benefit from value-
stream mapping you should make use of it on the shop floor, mapping a value stream
you will actually be implementing. If you are planning changes in a value stream, be
sure to draw a future-state map first. If you are designing a new production process, first
map a future state for the value stream. Considering a new scheduling system? Draw the
future state first. Changing production managers? Use value-stream maps to help ensure
an effective hand-off and continued implementation progress.

Material and Information Flows

Within the production flow, the movement of material
through the factory is the flow that usually comes to mind.
But there is another flow — of information — that tells each
information
process what to make or do next. Material and information
flow are two sides of the same coin. You must map both of PRODUCTION FLOW
them.
material
In lean manufacturing the information flow is treated
with just as much importance as the material flow. Toyota
and its
suppliers may use the same basic material-conversion
processes as mass producers, like
stamping/welding/assembly, but Toyota plants regulate their
production quite differently from mass producers. The
question to ask yourself is, “How can we flow information so
that one process will make only what the next process needs
when it needs it?”

To create value-adding flow you need a “vision.” Mapping helps you

see and focus on flow with a vision of an ideal or improved state.
Selecting a Product Family
One point to understand clearly before starting is the need to focus on one product
family. Your customers care about their specific products, not all your products. So you
will not be mapping everything that goes through the shop floor. Unless you have a small,
one-product plant, drawing all your product flows on one map is too complicated. Value-
stream mapping means walking and drawing the processing steps (material and
information) for one product family from door to door in your plant.

Identify your product families from the customer end of the value stream. A family is a
group of products that pass through similar processing steps and over common
equipment in your downstream processes. In general, you should not try to discern
product families by looking at upstream fabrication steps, which may serve many
product families in a batch mode. Write down clearly what your selected product family
is, how many different finished part numbers there are in the family, how much is
wanted by the customer, and how often.

Note:
If your product mix is complicated you can create a matrix with assembly steps
and equipment on one axis, and your products on the other axis (see below).

Assembly Steps & Equipment

1 2 3 4 5 6 7 8
A
X X X X X
PRODUCTS

A Product Family
B
X X X X X X
C
X X X X X X
D
X X X X X
E
X X X X X
F
X X X X X
G
X X X X X
The Value-Stream Manager
You may have already noticed that tracing the value stream for a product family will
take you across organizational boundaries in your company. Because companies tend
to be organized by departments and functions, instead of by the flow of value-creating
steps
for product families, you often find that — surprise — no one is responsible for the
value- stream perspective. (It’s no wonder we have focused too heavily on process-level
kaizen!) It is astoundingly rare to visit a facility and find one person who knows the
entire material and information flow for a product (all processes and how each is
scheduled). Yet without this, parts of the flow will be left to chance —meaning that
individual processing areas will operate in a way that is optimum from their
perspective, not the value-stream’s perspective.

To get away from the isolated islands of functionality you need one person with lead
responsibility for understanding a product family’s value stream and improving it. We
call this person a Value-Stream Manager, and suggest that in this capacity they report
to the top person at your site. This way they will have the power necessary to help
change happen.

Who is responsible for the Value Stream?

PROCESS 1 PROCESS 2 PROCESS 3 CUSTOMER

The Value-Stream Manager!

 Many people get involved in lean implementation, and all need
JOB DESCRIPTION FOR A
an understanding of value-stream mapping and the ability to read
VALUE-STREAM MANAGER
a future-state map. But the mapping and future-state
implementation team needs to be led by someone who can see
• Reports lean across the boundaries over which a product’s value-stream flows
implemen- tation
and make change happen there. Value-stream improvement —
progress to the top
person on site “flow kaizen”— is manage- ment doing kaizen.

• A line, not staff, person Do not make the mistake of splitting up the mapping task
with the capability to among area managers and then hope to stitch together their
make change happen
individual segments. Likewise, don’t map your organization.
across functional and
Map the flow of products through your organization.
departmental boundaries

• Leads the creation of the

current-state and future-
state value-stream maps two kinds of kaizen
and the implementation
plan for getting from
present to future
senior FLOW KAIZEN
mgmt. (Value-Stream Improvement)
• Monitors all aspects
of implementation

• Walks and checks the flow PROCESS KAIZEN

(Elimination of Waste)
of the value stream daily
or weekly
front
lines
• Makes
implementation a top
focus
priority

• Maintains and periodically

updates the implementa-
tion plan Note:
Both flow kaizen (value-stream improvement) and process-level
• Insists on being a hands-
kaizen (elimination of waste at the shop floor team level) are
on person driven by
necessary in your company; improvement in one improves the
results
other. Flow kaizen focuses on material and information flow
(which require a high vantage point to see) and process kaizen
focuses on people and process flow.
Using the Mapping Tool
Value-stream mapping can be a communication tool, a business
planning tool, and a tool to manage your change process. Value-
stream mapping is essentially a language and, as with any new
language, the best way to learn mapping is to practice it formally at
first, until you can use it instinctively.

Value-stream mapping initially follows the steps shown at right.

Notice that “Future-State Drawing” is highlighted, because your
goal is to design and introduce a lean value stream. A current state
without a future state is not much use. The future-state map is
most important. product family

The first step is drawing the current state, which is done by

gathering information on the shop floor. This provides the current -state ing
information you need to develop a future state. Notice that the draw

arrows between current and future state go both ways, indicating

that development of the current and future states are overlapping
future-state drawing
efforts. Future- state ideas will come up as you are mapping the
current state.
Likewise, drawing your future state will often point out work plan &
important current-state information you have overlooked. implementation

The final step is to prepare and begin actively using an

implemen- tation plan that describes, on one page, how you plan Initial Value-Stream
Mapping Steps
to achieve the future state. Then, as your future state becomes
reality, a new future-state map should be drawn. That’s
continuous improvement at the value-stream level. There must
always be a future-state map.

The beauty of this bureaucracy- and Powerpoint-free method

is that your mapping and implementation team ends up with
only a few sheets of paper (the future state and a plan to
achieve it) that can transform your business!

Note:
Value-stream mapping for one product family should not take
too much time. In about two days you should have a future-state
map drawn to the point where implementation can begin. Don’t
get hung up trying to make all the details on your future-state
map perfectly correct. Fine-tune your future-state map as
implementation progresses.

PART I: GETTING STARTED 9

 SUMMARY - YOUR STARTING POINT

• Select a product family

• Have one person personally lead the mapping effort

• Begin at the “door-to-door” level

• Consider both the material and information flows

10