Most firms desire to achieve optimal levels of efficiency. To attain this objective, firms need to embrace lean manufacturing processes (Porter, 2011). These processes allow firms to eliminate waste and derive maximum utility from their resources. Value stream mapping is an integral component of lean production. Essentially, value stream mapping is concerned with monitoring how information or a product undergoes transformation (Jeong & Yoon, 2016). The primary purpose of value stream mapping is to improve efficiency and to allow firms to develop a vision for their production and information management operations.
Value stream mapping for evaluation and improvement
As pointed out above, value stream mapping allow firms to achieve higher levels of efficiency. Evaluation and improvement are some of the processes that benefit from value stream mapping. When using this tool for improvement and evaluation, firms need to take a number of steps. The first step in the evaluation process involves drawing the current map (Jeong & Yoon, 2016). The current map captures the state of a process at the present moment. This step allows a firm to identify flaws and inefficiencies that are hampering production. It is also at this step that firms determine the value that can be added to a process. Measures that do not necessarily add value to the process are also identified after drawing the current map (Jeong & Yoon, 2016). When they draw the current map, firms are basically able to understand the issues that require improvement.
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After drawing the current map, the next step involves creating the future map. Essentially, the future map captures the vision and the desires of a firm regarding its process (Jeong & Yoon, 2016). It represents the ideal situation that a firm would like to achieve. Before drawing the future map, the firm needs to conduct a thorough analysis of the current map. The purpose of the analysis is to identify flaws and to determine the areas that require improvement. The analysis is an integral component of evaluation. Thanks to the analysis, a firm is able to understand the measures that should be instituted to address the flaws that the analysis has revealed (Jeong & Yoon, 2016). When designing the future map, firms need to give focus to eliminating processes which add little value to their operations. It is also important for companies to maintain their focus on lean processes since this is the essence of value stream mapping. The last step that firms need to take when using value stream mapping is to conduct an analysis. The analysis should be aimed at determining how value stream mapping is effective in the evaluation and improvement of processes.
Value stream mapping example
For a better understanding of value stream mapping to be gained, an example is needed. Consider the case of a small firm that receives and executes orders for the delivery of textbooks. This firm has developed an elaborate process through which it responds to the demands of its customers. The map below shows the current state of the firm’s processes.
Current map
The current map offered above shows the steps that the company goes through as it executes orders. What is clear from the map is that this company has not embraced lean processes. For example, its process is too fragmented. There is clearly a need for the company to combine some of the steps in the processes. Another flaw in the firm’s process is the long time that it takes for certain steps to be taken. For example, the company needs two days to confirm that a product is available and to bill the customer for the product. The future map shows the ideal situation that the company should desire to achieve. In the future map, some steps have been combined to minimize the amount of time it takes to deliver orders. The future map also shows a simpler process that has fewer steps. This map is a representation of the benefits that value stream mapping delivers. The company would need to move with speed to implement the vision captured in the future map. Some of the steps that the firm would need to undertake include identifying the factors that cause delays and to eliminate processes that are non-essential.
References
Jeong, B. K. & Yoon, T. E. (2016). Improving IT Process Management through Value StreamMapping Approach: A Case Study. Journal of Information Systems and Technology Management, 13 (3), 389-404.
Porter, A. (2016). Operations Management. Albert Porter & Ventus Publishing ApS.
