Value stream mapping: concept, definition, loss detection method, analysis and construction rules

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:46

In the conditions of dynamically developing processes of the modern economy, the creation of more and more complex production and control procedures, one of the most relevant approaches to their improvement is the introduction of methods for optimizing various losses. First of all, this concerns the resources of enterprises - temporary, financial, technological, energy and others.

Features of activity

In practice, there is a certain ceiling, which is associated with the level of technological and organizational development of the system (organization, enterprise). It is clear that it is inappropriate to demand total automation of production from a small tailoring workshop according to various criteria, and above all, economic ones. However, regardless of the size of the system, it is necessary to ensure the maximum and optimal use of available resources with minimal losses, which is true for any organization and activity.

In this case, it becomes necessary to use progressive process management techniques that are based on the theory of creating lean or "lean" production. These include 5S and TPM systems, value stream mapping and SMED, etc.

The purpose of innovation

Lean ("lean") production is a system of special approaches to the organization of activities, which considers its main goal the elimination of various losses in the system. The mechanism is quite simple: everything that does not add value to the customer should be classified as redundant (waste) and removed from the system. It is clear that the concept of "losses" is the cornerstone, since their definition will directly affect the effectiveness of the method. In this case, learning to map the value stream of your specialists is a significant advantage in the service delivery market

Types of losses

"Lean manufacturing" is one of the fundamental concepts of production logistics. And although there are several different approaches to determining losses, we will single out the most universal types:

• Waiting time - any downtime in activities reduces the value of the final product. Waiting for materials, equipment repairs, information or direction from management slows down the process and increases the cost of its implementation.
• Unnecessary operations (unnecessary processing of products) - unnecessary technological operations, project stages, everything thatprovided by standard procedures, but can be leveled without loss of customer confidence.
• Unnecessary movements of workers - search for tools, equipment, irrational movements due to poor organization of the workplace, etc.
• Unnecessary movement of materials - poor organization of the inventory system, lack of progressive transport logistics and logistics outsourcing mechanisms.
• Excess inventory - tying up an organization's working capital as a result of high spending on excess stock items.
• Technological waste - outdated data processing systems, technological processes and processing routes.
• Overproduction losses - the production of an excess amount of products, which leads to an increase in the cost of its storage, transportation and subsequent sale.
• Intellectual losses - lack of mechanisms to encourage the initiative of workers and employees, a weak system of rationalization proposals, suppression of a creative approach to work.

One of the most common methods for eliminating system waste and streamlining project execution is value stream mapping. Lean manufacturing at the same time allows you to create an adaptive system that flexibly responds to changes in the environment.

Value Stream

Value stream is a set of all actions (operations) that are performed on a product in order to achievethe required state or obtaining the required characteristics. Actions are differentiated into two groups:

• creating product value (adding value);
• does not add value to the product.

As can be seen from the presented figure, the stages of technological change of the product (blue color) add value to the product, and the stages of auxiliary operations - preparatory, transportation, storage - (pink color) - on the contrary, rather reduce the value of the product due to unnecessary time losses.

Mapping process

The basis of the mapping technique is the development of a special graphical algorithm that shows the process of creating products (project implementation) in time. This algorithm is called a value stream map, which is a graphical model based on a specific set of symbols (signs, symbols).

The main advantages of the card:

• obtaining a graphical model of the ongoing process, taking into account various additional processes for a holistic visual perception (the task is to see the general flow of events);
• the ability to detect various types of losses at all stages of the project;
• possibility of parametric optimization of the resulting model in order to minimize costs of all kinds;
• work with various indicators of the algorithm, which will be reflected in the improvement of real processes.

Formation of value stream mapping based on standard graphs andsymbols - rectangular and triangular blocks, directional and stepped arrows and other figures. It makes it possible to record the stages of the process under study in a single language for all specialists. At the same time, it is recommended to differentiate symbols depending on the considered flow - material or informational.

Lean Value Stream Mapping allows you to identify all the places where unnecessary items accumulate.

Construction rules

Value stream mapping involves a series of simple steps that will quickly create the required project model with given parameters. For example:

• Conduct an analysis of material and information flows in order to obtain a reliable picture of the current state of the process.
• Go through the flows in the forward and reverse direction in order to identify the hidden causes of losses and find negative patterns.
• Under any circumstances, take time measurements yourself, without relying on the results of other specialists or standard values.
• If possible, create a map also on your own, which will make it possible to avoid both other people's mistakes and template solutions.
• Focus on the product itself, not on the actions of operators or pieces of equipment.
• Build a map by hand, using a pencil or markers.
• Visualize the elements of a process using colors to improve perception.

Examples of value stream mapping

Let's consider an example of creating a flow map in the field of document management, inherent in the activities of any institution.

The main task is to choose the best supplier. The standard decision process is as follows: selection of a supplier (12 days) - execution of the text of the contract (3 days) - coordination in functional services (18 days) - visa of an authorized person (3 days) - obtaining the seal of the head (1 day) - obtaining the counterparty's signature (7 days) - registration in the authorities (3 days).

Total we get the required amount of time to obtain the required contract - 48 days. The result of the analysis was the discovery of the bottlenecks of the decision-making scheme.

Main changes after map analysis:

• An order was issued to delegate the signature of part of the documents to the heads of departments (reducing the burden on the administrative apparatus and a significant reduction in the number of approvals).
• The same requirements have been developed for all services (a common understanding of the requirements for contractual documents, a decrease in the number of errors by performers).
• The end-to-end principle of documentation analysis has been implemented by creating a common group of specialists from different services.
• Used new contract templates.
• Mechanisms for processing documentation through the electronic system have been optimized.
• An electronic system for tracking the quality of documents passing through the stages of the process has been developed.

Main resultmapping of the value stream has become a 2-fold reduction in the time for obtaining contractual documentation, including the time for approval in departmental services.

Conclusion

Recently, value stream mapping (VSM, Value Stream Mapping) has become a very common method for optimizing the work of various organizations. This is due to its simplicity and accessibility, minimal costs with a beneficial effect accumulating over time. There are many examples of the successful implementation of this basic production logistics methodology: enterprises of the Rostec Corporation, Transmashholding, Russian Railways, etc. Recently, a system of lean manufacturing has been created at the federal level in medical institutions. In particular, it is proposed to conduct value stream mapping in polyclinics.

As you can see, the full potential of the considered method is just beginning to be revealed.