Key Points

• Value stream maps are a great means of visualizing what potentially adds value to a workflow.
• Well developed value stream maps can serve as a means of understanding where things are going wrong in a workflow.
• Developing a VSM can be done with the use of software or pen and paper like other visualization methods.

What value stream mapping examples can we pull from real life? Value stream mapping is one of the key tools for looking at how materials and resources flow through a workflow. However, when introduced to this visualization tool, it can be a bit hard to conceive of how it applies to a real world example. Thankfully, we’ve got your back when it comes to understanding how this tool works.

So, today, we’re going to take a closer look at some of the bits and pieces behind value stream mapping, show some hypothetical examples from the real world, and hopefully get you well on your way toward constructing your value stream maps.

What Is Value Stream Mapping?

Value stream mapping is a visualization tool to understand the flow of materials as your production moves through various stages. This allows for further refinement of the processes to eliminate waste and increase overall efficiency. Successful application of a value stream map can also lead to an increase in revenue, thanks to the savings passed on from the reduction of waste.

Good value stream maps take a closer look at the present status of a workflow and try to envision the trend of a future state. In most cases, the future state envisioned should reflect any improvements to the workflow, acting as a beacon of sorts for targeted metrics for a given task.

A good value stream map is a means of eliminating the chaff when refining your processes. It acts as a guiding force for manufacturing managers and other leadership positions to hone in on areas that are in dire need of improvement.

Where Is It Employed?

Value stream mapping is typically used in manufacturing. You could certainly apply the principles and methodology to something like a service. However, for the best results, you’ll need ample amounts of data to develop your metrics when establishing your Current State and Future State maps.

Further, you can certainly develop a value stream map provided you’re able to identify the value stream. This is a representation of all actions in a given process, both value-added, and non-value-added.

Components of a Value Stream Map

There are four major components to pay attention to when developing a value stream map. The particular data surrounding these elements will likely change, especially as you map different processes for your production workflow. However, the core elements you’ll focus on in your visualization. The components are as follows:

• Customer: The customer in a value stream map isn’t a concrete party but rather a criteria for judging your output. Whatever symbol you’re using for the customer, it should ideally represent the necessary units or outputs to satisfy customer demands. Key data points for this component are going to be takt and cycle time. Ideally, the cycle time should be equal to the takt time of a given process.
• Suppliers: Manufacturing goods isn’t doing well without the materials to keep the workflows going. This is where you’ll identify the flow of raw materials or whatever you use for the production itself. Keeping a closer eye on your suppliers helps keep track of the costs of materials, production costs, and how many materials you have in your inventory.
• Process Flow: This is the real meat and potatoes of your value stream map. Every single action done on a raw material is going to be visualized by the process flow of your value stream map. This works as a fantastic abstraction of the entire workflow. It helps to visualize just how much of the human capital is at work with your workflow.
• Information Flow: One thing that seldom gets mentioned when discussing manufacturing is the documentation and flow of data. Good processes are documented, as accountability and transparency can help to pinpoint potential issues as you navigate your workflow. The visualization of this data helps to understand who is doing what in your value stream. Additionally, this helps when identifying pain points, provided the documentation is robust and exhaustive.

Value Stream Mapping Examples from the Real World

So, now that you’ve got a decent primer on what today’s topic is all about, let’s take a closer look at value stream mapping examples from the real world. Do keep in mind that these are strictly hypothetical, but we’re taking a closer look at the harder data points that are present in these sectors of the manufacturing industry.

You can apply the same thinking and methodology to your production workflows, provided you have ample data on hand. With any luck, you’ll be hard at work developing your value stream map after finishing up reading today’s article.

Electronics

Consider for a moment that you’re the manufacturing manager of a large consumer electronics business. You’re experiencing lag time between stages of production, but have yet to determine the cause. As such, you collate a good amount of data before developing your value stream map.

After constructing your current state map, you can see there are issues with one of the machines that solders components on a printed circuit board. The resulting lag time is leaving over an hour of downtime for the workflow and hindering your total output.

As you begin constructing your future state map, you’ll want to account for the replacement of these faulty soldering stations. Ideally, your future state map should reflect significantly less lag time as components transition between phases of production.

Automotive

It feels like you can’t get away from value stream mapping examples without at least a token mention of the automotive industry. There are quite a few moving components when it comes to developing even the most basic of automobiles. When constructing your current state map, you take note of a few bottlenecks that arise when pressing and stamping parts for your vehicle.

This is thanks in part to a machine on the assembly line being slightly out of spec. Maintenance is regularly done on the machine, but the wear and tear over the years has resulted in it not holding for too long.

Your future state map reflects upgrading these machines, and subsequently the elimination of bottle necks throughout the production line.

Food and Beverage

The food and beverage industry is one of the prime targets for value stream mapping examples. This comes down to the fact that the materials used for the manufacture of goods are time-sensitive. When your raw materials risk spoilage, there is an inherent risk associated with the entire production if things aren’t going without a hitch.

This is something noted throughout the construction of your current state map. Raw materials are properly stored, but employees aren’t shifting the oldest material to the production line first. The resulting waste is costing your company quite a bundle since there are no means of salvaging the materials.

Your future state map reflects a change in the operational procedure of your production workflow. Materials aren’t left to languish, and what materials are voided out occurs after a shorter duration. This helps minimize the risk and guarantees fresher products for an increase in customer satisfaction.

Constructing Your Value Stream Map

Now that we’ve taken the time to highlight a few value stream mapping examples, what about building one of your own? We have covered value stream maps in the past, but developing one on your own isn’t too difficult. There are a few basics you’ll want to keep in mind when gathering up your relevant points. As far as the tool of choice for the exercise, you have some options.

A pen and paper are always viable when doing any sort of visualization. However, for this example, I’d suggest using Microsoft Vizio. This is a flexible and robust software platform with all the standard symbols you’ll need for developing a value stream map.

While value stream maps are perhaps best used in the manufacturing industry, these are visualization tools I’ve seen in other industries. If you’ve done any work in the tech industry, you’ve likely seen these in use when taking a look at current operational standards. I have at least a handful of friends involved in software development using them as well.

Gathering the Right Data

Any process is going to have a fair amount of data surrounding it. I did mention earlier the importance of knowing the takt and cycle time of a given process. However, you’ll also want to take a closer look at things like a current inventory of raw materials, customer requirements, and so forth. These are all pertinent data points when making sure you’re getting deliverables to a customer and are also relevant for the sake of your value stream map.

I will say that relying solely on hard numbers from the reports and documentation of a process is only part of the process of creating a value stream map. You’ll want to go out on the production floor and get a feel for each step of the workflow before gathering up your data.

Developing Your Current and Future State Maps

Your Current and Future State Maps are an encapsulation and abstraction of each stage of the production workflow. You’ll want to take the time to identify each step as well as further refine what actions in the workflow are value-added or non-value-added. The entirety of the production workflow can also be thought of as your value stream. Each step taken by your team ultimately results in a product to send to a customer.

Acting Upon the Data

A value stream map in a vacuum isn’t worth much on its own without action behind it. After the construction of your value stream map, you’ll start launching improvement initiatives. The approach you take doesn’t matter, you can opt for something like Waterfall, DMAIC, or Agile, depending on your given industry.

However, with the whole of your workflow visualized, you have everything you need to identify potential pain points and remediate them accordingly.

Other Useful Tools and Concepts

Looking for some other tips and tricks of the trade? I’d recommend taking a closer look at Six Sigma and organizational culture. With the right approach, you can develop a lasting learning culture where your organization is agile and nimble when it comes to new technology and changes.

Additionally, you might want to take a closer look at Six Sigma for supply chain management. The pandemic highlighted some of the vast shortcomings associated with logistics. Six Sigma can have you sitting pretty when it comes to having the materials on hand for success.

Conclusion

Developing a value stream map isn’t a difficult process by any means. Further, it serves as one of the best tools at your disposal for identifying potential problems in your processes. As such, you’ve got everything you need to develop a robust value stream map on your own.

The image featured at the top of this post is ©ESB Professional/Shutterstock.com.