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VSM

Value Stream Management

VSM

Value stream management involves planning and connecting lean initiatives by systematically capturing and analyzing data, while lean focuses on delivering more value to customers using fewer resources.

It involves nine steps:

  1. Management commitment

  2. Selecting a value stream

  3. Lean learning

  4. Current value stream mapping

  5. Establishing lean metrics

  6. Future value stream mapping

  7. Developing kaizen plans

  8. Implementing kaizen plans

  9. Reviewing and closing gaps

Current Value Stream Map Manufacturing Example

VSM is more than just a management tool; it's a process for planning improvements that help your company deliver better value to customers while using fewer resources. A lean company needs a process that connects strategic plans to daily work, and following nine sequential steps provides that link. Through experience, we’ve found that successful lean initiatives rely on four key behaviors:

 

True commitment: Achieving a lean enterprise requires dedicated resources for effective planning, implementation, and maintenance. Lean results depend on commitment from everyone at all levels. It’s not enough to assign someone to oversee lean initiatives or attend workshops to create a value stream map. There must be a genuine desire to improve, driving all activities. A cross-functional team of middle-level managers involved in the value stream is essential for its transformation.

 

Understand customer demand: Variation in customer demand should never be an excuse to avoid proper lean implementation. While it might take more effort than expected, understanding customer demand is crucial to fulfilling their needs.

 

Depict the current state accurately: Fully grasping the current state, including cycle times, process communications, work standards, machine/equipment capacity, and process capabilities, is critical. The better we understand the present conditions, the more effectively we can design a future lean state. Avoid assumptions and jumping to conclusions, no matter how tempting.

 

Communicate and communicate: While professionals often emphasize the importance of eliminating fear to create a “no-blame” environment, most organizations struggle to achieve this in practice. It’s vital to treat everyone with respect and foster open communication to drive improvements. 

Future Value Stream Map Manufacturing Example
Current Value Stream Map Servive Example
Future Value Map Service Example
Value Stream Map in Process Industry
LEAP Model for Learning

The Pedagogy of the Program uses the LEAP approach to balance training and implementation. The sooner AP follows LE, the better the outcomes. Lack of participation or apparent disinterest signals a need to reconsider the approach. The 9 steps outlined at the start serve a purpose:

 

Steps 1 and 2 focus on management commitment by forming the core implementation team and identifying the value stream for transformation. Before mapping the current state (Step 4), determining lean metrics (Step 5), and planning the future state (Step 6), teams need to understand lean concepts, which is the aim of Step 3. Workshops with case studies help participants return to develop detailed current and future value streams with facts. Ongoing coaching and guidance are crucial, as incomplete knowledge can be harmful. Real transformation happens through Steps 7 and 8. As the saying goes, "What gets reviewed gets done." Continuous review of processes and results is vital for sustainable improvement, which is Step 9.

Short-Term Pains: Transformations to lean often come with short-term challenges that test commitment levels. These can include:

 

  • Efforts to reorient and educate people

  • Time spent by managers, supervisors, and team leaders to learn and enhance the value stream

  • Adopting learning and innovations to reduce waste

  • Working with a lean coach until internal expertise is developed

  • Reorganizing processes and facilities

Long-term gains include:

 

  • Reducing lead times from months to weeks or even days

  • Achieving near-zero defects

  • Increasing value-added ratios

  • Significantly reducing material travel

  • Freeing up space for new capacity

 

Other benefits include:

 

  • Making work safer and easier

  • Fostering cooperation

  • Shortening feedback loops for faster improvements

  • Accelerating learning

  • Enhancing process and product quality and reliability

  • Making processes more predictable

  • Freeing up management bandwidth to focus on strategy deployment

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