Value stream mapping gives manufacturing enterprises a method of creating visual roadmaps that reveal current inefficiencies in development/production. The potential for true transformation begins with the identification of your current state, followed by work done after visualization of your future state.
Here's the catalyst: the concrete, actionable steps that will only make sense if the best practices of VSM are followed.
Why VSM is a Truly Powerful Tool
Value Stream Mapping might look like a simple flowchart, but it isn’t. It’s always more than its simplicity. If anything, value stream mapping is a powerful diagnostic tool that will help you visualize the flow and interconnectedness of materials and information between processes and departments.
The process of value stream mapping will always involve an effort to visualize the shop floor’s "Current State." There will always be a need to meticulously detail each step, from the bays that handle the raw materials to final delivery to the end customers. Current state mapping includes identifying processing times, wait times, inventory levels, and information exchange points.
The world of manufacturing loves value stream mapping because it has a unique power: it helps reveal or expose hidden waste, even in the biggest and most successful brands. Often, these inefficiencies have become so deeply embedded in different processes that it’s difficult or even impossible to spot them, without a method like VSM, or striving for results with Lean manufacturing. By creating a Current VSM, stakeholders and the Value Stream Manager will be able to see the following:
- Overproduction: Producing more than what is needed, leading to excess inventory.
- Waiting: Idle time for people, materials, or information.
- Transportation: Unnecessary movement of materials or products.
- Over-processing: Doing more work than what is required by the customer.
- Inventory: Excessive raw materials, work-in-progress, or finished goods.
- Motion: Unnecessary movement of people.
- Defects: These are errors that require scrapping or rework.
- Underutilization of Individuals: The waste of not using your people's talents and skills can mean you miss out on potential.
Mapping the Future State after a successful mapping of the Current State typically involves brainstorming and designing an ideal, lean process that eliminates or significantly reduces the identified waste. The future state map serves as a target, a blueprint for the desired improvements.
[Are you struggling to deploy Lean and VSM in your organization? Download our free trial today, then please consider requesting a free consultation/meeting with one of our Lean/VSM experts! Find out why Lean/VSM/eVSM are so useful for both Fortune 500 enterprises and smaller companies.]
The Gap: From Insight to Action
Many enterprises will excel at the mapping phase of VSM. Teams typically become very enthusiastic in wanting to identify waste. They would have this buzzing energy to propose solutions. They also want to sketch out a streamlined future state.
However, there is a significant obstacle in this point of the journey: people must leap from lofty analysis to implementation in the real world. Once they are at this point, both energy and enthusiasm can greatly wane. The proposed changes that everyone agreed on can begin to gather dust, and the promised improvements remain just that: promises. There is a gap between insight and action. Why does this happen?
There is no clear ownership. Without designated individuals or teams responsible for specific improvement initiatives, tasks can fall through the cracks.
The action items are ambiguous. Vague recommendations like "improve communication" or "reduce lead time" are difficult to act upon.
There’s not enough resources. A lack of allocated time, budget, or personnel can hinder progress.
People are resistant to change. Employees may be comfortable with existing processes and resistant to adopting new ways of working.
People are suffering from poor communication. Without regular updates and clear communication about progress and challenges, momentum can be lost.
Prioritizing is a challenge. When faced with a multitude of potential improvements, organizations can become overwhelmed and fail to focus on the most impactful changes.
Giving Action Plans a Chance
The solution to bridging this gap lies in the meticulous development and diligent execution of robust Action Plans. An action plan transforms the abstract concepts of the future state map into a series of concrete, manageable steps. It provides structure, accountability, and a roadmap for turning insights into reality.
A well-structured action plan typically includes the following elements:
1. Specific, Measurable, Achievable, Relevant, Time-bound (SMART) Goals
Each identified improvement from the VSM should be translated into one or more SMART goals. Instead of "reduce lead time," a SMART goal would be "Reduce order-to-delivery lead time by 20% within 3 months by implementing a new inventory management system." This approach is better as it gives everyone clarity and a basis for measuring ongoing progress.
2. Defined Actions and Tasks
Break down each SMART goal into smaller, actionable tasks. For instance, achieving the goal of reducing lead time might involve tasks such as "Research three inventory management software options," "Conduct a pilot program with selected software," and "Train staff on new system." Each task should be clear and concise, for everyone’s sake.
3. Tasks Must Have Clear Owners
Every task must have a clear owner. This individual or team is accountable for ensuring the task is completed. This eliminates ambiguity and builds a sense of ownership. Using a Responsible, Accountable, Consulted, Informed (RACI) matrix can be helpful for complex projects.
4. Set Realistic Deadlines
Assign a specific deadline for each task. This creates a sense of urgency and helps in tracking progress. Deadlines should be challenging but achievable, considering available resources and potential obstacles.
5. Identify Required Resources
Identify all necessary resources for each task, including personnel, budget, equipment, and information. Proactively addressing resource needs prevents delays and ensures smooth execution.
6. Key Performance Indicators
Establish metrics to track the effectiveness of the improvements. These KPIs should directly relate to the SMART goals and provide tangible evidence of progress. For example, "average order lead time," "inventory turnover rate," or "defect rate."
7. Create a Reasonable Communication Plan
Outline how progress will be communicated to stakeholders. This includes regular meetings, progress reports, and updates to ensure everyone is informed and engaged. Transparent communication builds trust and mitigates resistance.
8. Risk Management
Identify potential risks and obstacles that could hinder the implementation of the action plan. Develop contingency plans to mitigate these risks. This proactive approach helps in navigating unforeseen challenges.
Our team has been consulting on value stream mapping for decades; from Fortune 500 companies to single sites with less than 500 employees. Request a web meeting here to see eVSM in action; bring your toughest value stream mapping questions and we'll help you get them answered!