We find Value Stream Mapping is a key experience to have, and one that regularly comes in very handy. In particular, it can show cycle times.. a topic that otherwise can’t be answered but when you look at SCOR metrics around responsiveness, they are every bit as important as financial metrics that are easier to calculate. Don’t be confused though that just because one metric is easier to calculate than another, that one is more important.. cycle times are essential to know the health of your process or supply chain.
What is Value Stream Mapping?
Value Stream Mapping (VSM) is a lean management tool that visually represents the steps, activities, and flows involved in a process from start to finish. It helps organizations identify waste, inefficiencies, and opportunities for improvement within their supply chain and operational processes. By mapping out material and information flows, VSM enables teams to see the end-to-end process, including value-adding and non-value-adding steps.
Why is VSM Useful?
VSM is a powerful tool for supply chain professionals because it:
- Enhances Visibility: It provides a clear, visual representation of the current state of a process, making inefficiencies and bottlenecks apparent.
- Identifies Waste: It helps teams pinpoint delays, excess inventory, unnecessary movements, and other forms of waste in the supply chain.
- Supports Continuous Improvement: By developing a future-state map, organizations can create a roadmap for improvement, aligning teams on priorities and actions.
- Improves Collaboration: It encourages cross-functional teams to work together to solve process inefficiencies.
- Links to SCOR DS People: VSM aligns with the SCOR DS framework’s focus on human skills, as it requires critical thinking, collaboration, and problem-solving to interpret and act on the insights gained.
What Does VSM Show?
A VSM typically includes:
- Process Steps: Every activity from raw material sourcing to finished goods delivery.
- Cycle Times & Lead Times: The time required for each step and the total lead time.
- Material & Information Flow: The movement of physical goods and supporting data throughout the process.
- Decision Points: Where approvals, batching, or other delays may occur.
- Value-Added vs. Non-Value-Added Activities: Differentiating between steps that contribute directly to customer value and those that create waste.
Origins of Value Stream Mapping
Value Stream Mapping traces its roots to the Toyota Production System (TPS) and Lean Manufacturing, where it was used to optimize production and reduce waste. The methodology was popularized in Western manufacturing through the work of James Womack and Daniel Jones in their book Lean Thinking. Since then, it has been widely adopted across industries, including healthcare, software development, and supply chain management.
How Can People Use VSM?
VSM is a skill that supply chain professionals can develop to drive operational improvements. Here’s how to apply it:
- Define the Scope: Select a process to map, such as order fulfillment, procurement, or production planning.
- Gather Data: Observe the process, interview stakeholders, and collect data on cycle times, lead times, and inventory levels.
- Draw the Current-State Map: Visually represent the process, identifying all steps, decision points, and flows.
- Analyze & Identify Waste: Highlight inefficiencies, bottlenecks, and areas of non-value-added activity.
- Design the Future-State Map: Create an improved process flow that eliminates waste and optimizes efficiency.
- Develop an Action Plan: Define steps to implement the future state and track progress over time.
- Continuously Improve: Use VSM as a recurring tool to sustain improvements and drive ongoing optimization.
Value Stream Mapping & SCOR DS People
In the SCOR DS People framework, VSM is a key skill under HE.0301, emphasizing its role in equipping supply chain professionals with the ability to analyze and improve processes. As supply chains become more complex, the ability to visualize and optimize end-to-end flows is a critical competency that enhances efficiency, agility, and competitiveness.
Final Thoughts
Value Stream Mapping is more than just a tool—it’s a mindset for identifying and eliminating inefficiencies. For organizations looking to enhance their supply chain performance, VSM provides the foundation for strategic improvements. By embedding VSM capabilities within teams, businesses can empower their workforce to drive continuous improvement, aligning operations with the principles of lean, agility, and digital transformation.
