Value+Stream+Mapping

** Background **
Value Stream Mapping [|(VSM)] was pioneered in the 1980s by Taiichi Ohno and Shigeo Shingo as part of the Toyota Production System (TPS) by using visualization to represent the entire supply chain. VSM visually maps the flow of materials and information from raw materials through to the manufacturing of the finished products. The goal of the process is to identify, demonstrate and decrease any activities that does not add value (waste) to the final product. VSM serves as a starting point to help all those involved in the production process such as management, engineers, production assistants and suppliers to recognise waste and identify their underlying causes.toc Rother & Shook (2003) defined value stream mapping as a “paper and pencil” exercise used in understanding the processes a product goes through from customer to supplier. The aim is to help any organisation adopting value stream mapping to identify value and eliminate waste. This is achieved by mapping out their current and future processes. Value stream mapping visualizes the work processes and therefore, helps to highlight problem areas as well as areas for improvement. An effective and result-oriented value stream mapping requires a vision, or at least an ideal state of what the future should look like.Value stream mapping gives a representation of value adding and non-value adding (waste) processes. Value can be categorised into customer and business value. Customer value represent a function of a product that a customer is willing to pay for while business value is an activity that is needed to carry out the business, but the customer is not willing to pay for it.

Waste is an activity that the business does not need which does not add any value to final outcome. There are eight classification of waste which are: delay, overproduction, waste and re-work, non-value added processes, transportation, inventory, motion, employees unused creativity For value stream mapping to be properly implemented in an organisation, a practitioner who understands the value stream principle is required. This individual is known as the value stream manager. With the support of the respective senior management, the value stream manager is empowered to implement change.

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 * Identify the activities, system or product to be mapped
 * Draw or map out current state
 * Identify waste to be eliminated within the current state
 * Design or draw future state map
 * Implement future state map


 * It gives a clearer picture of multiple processes involved in a work flow
 * It helps to identify waste and its sources
 * It helps to identify where change is required
 * It brings standardisation of process for those involved
 * It can be used in different industries e.g construction, IT, Manufacturing, financial institutions among others
 * It helps identify potential problems that could be encountered in the future state
 * It can be used as a tool for communicating, planning and change control
 * It helps to make organisations more efficient by improving their processes

** Disadvantages of Value Stream Mapping **
= = According to Nash & Poling (2008), the value stream mapping has some disadvantages associated with it. These disadvantages are stated as follows:
 * It does not include any significant monetary measure for value
 * It is the responsibility of the stakeholder to determine which activity can be termed value as well as which activity can be termed waste and the process of trying to make this decision may take a lot of valuable time

** References **
‍‍ Nash, M.A. & Poling, S.R. (2008) Mapping the Total Value Stream: A Comprehensive Guide for Production and Transactional Processes.New York: Taylor & Francis Group, LLC. [Online]. Available at: http://books.google.co.uk/books?hl=en&lr=&id=Z-Zak5Mb9i0C&oi=fnd&pg=PR13&dq=Mapping+the+total+value+stream:+a+comprehensive+guide+for+production+and+...++By+Mark+A.+Nash,+Sheila+R.+Poling&ots= [Accessed: 25 February, 2012].

Rother, M. & Shook, J. (2003) Learning To See: Value Stream Mapping to Create Value and Eliminate Muda. Cambridge: The Lean Enterprise Institute, Inc. [Online] Available at: [|http://books.google.co.uk/books?id=mrNIH6Oo87wC&pg=PA102&lpg=PA102&dq=rother+and+shook+2003&source=bl&ots=21ftb1aJGv&sig=qfOwF-K1BSFJnSJQPCtW-fO55aE&hl=en&sa=X&ei=3shPT6X6FunF0QWSgbHwCw&ved=0CC8Q6AEwAg#v=onepage&q=rother%20and%20shook%202003&f=false]. [Accessed: 27 February, 2012].‍‍