Value Stream Mapping

Many lean implementations begin with a concept called value stream mapping (also known as VSM or Shingo). Primarily a communication and visualisation tool, VSM can aid cross- functional teams to reach a common understanding of where waste occurs in the system.

The first step in value stream mapping exercise is to draw and analyse the current flow of physical materials and information that are required at each step to create a product and deliver it to an end-user – the ‘current state’. This should include cycle times, down-times, in-process inventory, material moves, information flow paths and anything else that helps to illustrate the current activity.

Having captured the current value stream, the team is able to analyse where waste occurs and the desired ‘future state’ is determined.

At this point, OEE (overall equipment effectiveness) measures can be applied and OEE software used to identify the underlying cause of the waste identified in the VSM. Furthermore, OEE can provide a benchmark to show the impact of improvements made.

The typical areas of waste identified by a VSM exercise include:

• Overproduction (faster pace than is necessary)
• Waiting (bottle-necks)
• Transport (conveyance of people and material)
• Inappropriate processing
• Unnecessary inventory (excess stock)
• Unnecessary motion
• Defects

Idhammar OEE supports the management of change improvement opportunities highlighted in plant and processes.