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Value-stream mapping is a lean-management method for analyzing the current state and designing a future state for the series of events that take a product or service from its beginning through to the customer. A value stream focus on areas of a firm that add value to a product or service, whereas a value chain refers to all of the activities within a company. At Toyota, it is known as "material- and information-flow mapping".

The purpose of value stream mapping is to identify and remove or reduce "waste" in value streams, thereby increasing the efficiency of a given value stream. Waste removal is intended to increase productivity by creating leaner operations which in turn make waste and quality problems easier to identify.

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Bicheno, J., 34 for Quality, PICSIE Books, Buckingham, 1991

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Monden, Y., Toyota Production System: An Integrated Approach to Just-in-Time, 2nd ed., Industrial Engineering and Management Press, Norcross, GA, 1993.

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Monden identifies three types of operations:

1: Non-value adding operations (NVA): actions that should be eliminated, such as waiting.

2: Necessary but non-value adding (NNVA): actions that are wasteful but necessary under current operating procedures

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Peter Hines and Nick Rich Lean Enterprise Research Centre, Cardiff Business School, Cardiff, UK

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3: Value-adding (VA): conversion of processing of raw materials via manual labor.

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Peter Hines and Nick Rich Lean Enterprise Research Centre, Cardiff Business School, Cardiff, UK

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Jones, D., “Applying Toyota principles to distribution”, Supply Chain Development Programme I, Workshop #8 Workbook, Britvic Soft Drinks Ltd, Lutterworth, 6-7 July 1995.

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Jones identifies seven commonly accepted types of waste:

1: Faster-than-necessary pace

2: Waiting

3: Conveyance

4: Processing

5: Excess Stock

6: Unnecessary motion

7: Correction of mistakes

Hines and Rich (1997) identify seven value stream mapping tools:

1: Process activity mapping: the initial step of constructing a map which consists of a study of process flows, waste identification, and business process re-engineering.

2: Supply chain response matrix: identifying critical bottlenecks for processes in a simple diagram.

3: Production variety funnel: helps draw connections to other industries that may have solutions to existing problems.

4: Quality filter mapping: locates product and service defects in the supply chain.

5: Demand amplification mapping: identifies delays and material flow decision making errors. Also known as Forrester effect mapping.

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Forrester, J., “Industrial dynamics: a major breakthrough for decision makers”, Harvard Business Review, July-August 1958, pp. 37-66.

Burbidge, J., “Automated production control with a simulation capability”, Proceedings IFIP Conference Working Group 5-7, Copenhagen, 1984.

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6: Decision point analysis: determines inflection points for push-and-pull demand in the supply chain.

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Hoekstra, S. and Romme, S. (Eds), Towards Integral Logistics Structure – Developing Customer-Oriented Goods Flows, McGraw-Hill, New York, NY, 1992

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7: Physical structure mapping: combined model that overviews supply chain from an industry level.

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cite hines and rich

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Value streams represent end-to-end views on how value is achieved for a given external or internal stakeholder. Value streams are named with a definition of the value proposition provided to stakeholders. Stakeholders within a value stream can take two forms:

• A triggering stakeholder is the person or organization that initiates and, as a rule, participates in the value stream.
• A participating stakeholder is a person or organization that either provides or facilitates aspects of the value delivered in the value stream, or that may receive ancillary value from the value stream.

Additionally, value streams are composed of value stream stages, which represent iterative value items that are accrued to deliver value throughout the value stream, ultimately delivering a value proposition.

Value Stream Maps are usually drawn using a set of standard symbols, some of which can be seen here. A paper value stream map.

Value-stream mapping has supporting methoasdfdasdfasdfasd

Value Stream Maps are usually drawn using a set of standard symbols, some of which can be seen here. A paper value stream map.

Value-stream mapping has supporting methods that are often used in Leanenvironments to analyze and design flows at the system level (across multiple processes).

Although value-stream mapping is often associated with manufacturing, it is also used in logistics, supply chain, service related industries, healthcare, software development, product development, and administrative and office processes.

In a build-to-the-standard form, Shigeo Shingo suggests that the value-adding steps be drawn across the center of the map and the non–value-adding steps be represented in vertical lines at right angles to the value stream. Thus, the activities become easily separated into the value stream, which is the focus of one type of attention, and the 'waste' steps, another type. He calls the value stream the process and the non-value streams the operations. The thinking here is that the non–value-adding steps are often preparatory or tidying up to the value-adding step and are closely associated with the person or machine/workstation that executes that value-adding step. Therefore, each vertical line is the 'story' of a person or workstation whilst the horizontal line represents the 'story' of the product being created.

Value stream mapping is a recognised method used as part of Six Sigma methodologies.

The success of Lean in manufacturing and production has led to an interest in its adoption in software development. However, it was noted that the current literature on adoption of Lean in software development had a disconnect between the high-level principles and the concrete practices related to lean and agile software development. The literature had also a limited focus on wastes that were literally mapped from the categories identified for manufacturing. This was ignoring the transformation that lean thinking has itself undergone and moved away from the focus on "removal of waste" to "creating and delivering value". The use of value stream mapping as suggested by the pioneer authors of the field Womack and Jones was identified as the missing link in the current literature on lean in software development.

Value-stream mapping analyzes both material (artifact) and information flow. The following two resources exemplify the use of VSM to do it in the context of software process improvement in industrial settings:

• "Artifact analysis": analysis of software artifacts like requirements, use case, change request or defect report through the development process
• "Information flow analysis": analysis of information flows in the development process

Two key metrics associated with value stream mapping are value-adding times and non–value-adding times.^[1] Non value adding time is called waste or muda.^[2]

*link to main article @lean_manufacturing

One criticism of value stream mapping is a lack of a cross-functional framework.*

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New, C., “The use of throughput efficiency as a key performance measure for the new manufacturing era”, The International Journal of Logistics Management, Vol. 4 No. 2, 1993, pp. 95-104.

Forza, C., Vinelli, A. and Filippini, R., “Telecommunication services for quick response in the textile-apparel industry”, Proceedings of the 1st International Symposium on Logistics, The University of Nottingham, 1993, pp. 119-26.

Beesley, A., “A need for time-based process mapping and its application in procurement”, Proceedings of the 3rd Annual IPSERA Conference, University of Glamorgan, 1994, pp. 41-56.

Jessop, D. and Jones, O., “Value stream process modelling: a methodology for creating competitive advantage”, Proceedings of the 4th Annual IPSERA Conference, University of Birmingham, 1995.

) --> created tools designed to solve specific problems but do not integrate.

Hines and Rich (1997) defined seven value stream mapping tools^[3] they are:

1. Process Activity Mapping
2. Supply chain responsiveness matrix
   1. A supply chain responsiveness matrix is a tool that is used to analyze inventory and lead time within an organization. The matrix is one of a number of Value Stream Mapping tools The matrix is represented by showing lead time along the X- Axis and inventory along the y axis. The result shows where slow moving stock resides.
3. Product Variety Funnel
4. Quality filter mapping
   1. Quality Filter Mapping is part of the Value Stream Mapping toolkit and is used to analyse processes/functions with respect to quality. The results of a Quality Filter Map shows how much waste is being generated within an organisation at each stage of the process. Three types of quality are measured as part of the model:
      1. Product Quality – Defective Item provided to customer
      2. Defect Quality – Defective item found prior to receipt by customer
      3. Service Quality – Defects that affect the ability of the supplier to provide the service or product to the customer Quality failures/defects are represented as a ratio (typically parts per million). Results of Quality Filter Mapping are commonly used to feed into continuous improvement plans. A revised map is then generated after implementation of improvement plans to measure the result of improvements.
5. Forrester effect mapping
   1. The Forrester effect map is a business technique used to analyse the disturbance on the supply chain of reorder activity. The tool is one of the seven Value Stream Mapping tools as defined by Hines and Rich. Forrester's research, (Industrial Dynamics, MIT Press 1961) showed that demand could be erratic with peaks and troughs commonplace within most organizations. These variations in requirements and supply are amplified within the supply chain when re-orders are made.
   2. Process The map is portrayed as a graph with a line showing elements such as customer forecasts, shipments to customers, orders for raw materials over a period of time shown on the x axis.
   3. Results Distortion between inventory levels is shown as a result of poor communication and an inability to schedule accurately. The flatter the lines displayed the leaner the system and more accurate the forecast.
   4. See also
      • Bullwhip effect
      • Jay Forrester
   5. References
      1. Best Practice Procurement: Public and Private Sector Perspectives By Andrew Erridge, Ruth Fee, John McIllroy
      2. Jump up^ Lean Evolution: Lessons from the Workplace By Nick Rich, Ann Esain, Nicola Bateman
      3. Jump up^ Demand Amplification within the supply chain
   6. External Links http://www.qdc.fi/article/PP_1999.pdf - "Demand Amplification in Supply Chain in Mills ...."
6. Decision point analysis
7. Overall Structure Maps

Structural reference: Strategic planning

• Business process mapping
• Lean manufacturing
• Value stream mapping software
• Value chain
• Value stream

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AREAS TO CONSIDER INCLUDING

Purpose of Value Stream Mapping Value stream

Value stream mapping is a flowchart method to illustrate, analyze and improve the steps required to deliver a product or service. A key part of lean methodology, VSM reviews the flow of process steps and information from origin to delivery to the customer.

Origin of Value Stream Mapping Strategy map

Components of a Value Stream Strategy Value stream

Metrics

Associated analysis methods

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Analyzing the benefits of lean manufacturing and value stream mapping via simulation: A process sector case study

The “lean” approach has been applied more frequently in discrete manufacturing than in the continuous/process sector, mainly because of several perceived barriers in the latter environment that have caused managers to be reluctant to make the required commitment. We describe a case where lean principles were adapted for the process sector for application at a large integrated steel mill. Value stream mapping was the main tool used to identify the opportunities for various lean techniques. We also describe a simulation model that was developed to contrast the “before” and “after” scenarios in detail, in order to illustrate to managers potential benefits such as reduced production lead-time and lower work-in-process inventory.

A value stream is a collection of all actions (value-added as well as non-value-added) that are required to bring a product (or a group of products that use the same resources) through the main flows, starting with raw material and ending with the customer (Rother and Shook, 1999). These actions consider the flow of both information and materials within the overall supply chain. The ultimate goal of VSM is to identify all types of waste in the value stream and to take steps to try and eliminate these (Rother and Shook, 1999). While researchers have developed a number of tools to optimize individual operations within a supply chain, most of these tools fall short in linking and visualizing the nature of the material and information flow throughout the company's entire supply chain. Taking the value stream viewpoint means working on the big picture and not individual processes. VSM creates a common basis for the production process, thus facilitating more thoughtful decisions to improve the value stream (McDonald et al., 2002).

VSM is a pencil and paper tool, which is created using a predefined set of standardized icons (the reader is referred to Rother and Shook, 1999 for details). The first step is to choose a particular product or product family as the target for improvement. The next step is to draw a current state map that is essentially a snapshot capturing how things are currently being done. This is accomplished while walking along the actual process, and provides one with a basis for analyzing the system and identifying its weaknesses. The third step in VSM is to create the future state map, which is a picture of how the system should look after the inefficiencies in it have been removed. Creating a future state map is done by answering a set of questions on issues related to efficiency, and on technical implementation related to the use of lean tools. This map then becomes the basis for making the necessary changes to the system.

THE SEVEN VALUE STREAM MAPPING TOOLS

Develops a new value stream or supply-chain mapping typology. This seven-map typology is based on the different wastes inherent in value streams. The use of the various tools, either singularly or in combination, is therefore driven by the types of waste to be removed. The tools themselves are drawn from a range of existing functional ghettos such as logistics, operations management and engineering. Maintains that two of the seven tools can be regarded as completely new. This cross-functional approach means that the choice of tools to be used can be made from outside of traditional departmental boundaries, affording researchers and companies the opportunity to use the most appropriate tools rather than merely those that are well-known in their function. Describes each tool briefly and gives a simple mechanism for choosing which is most appropriate to contingent situations.

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