Value Stream MappingValue Stream Mapping (VSM) is a lean management tool used for analyzing the current state of all series of events in a process to produce a finished product from beginning to end, and then designing the most efficient series of events to provide the greatest value to that product and process.

Manufacturers use VSM which is a detailed flowchart method to identify all stages in the process typically down to seconds.  This highlights the areas where improvements can be made such as quickly identifying any waste or bottlenecks in the process.  VSM is a lean management tool that reveals downtime, inventory problems, and processing delays.

Customers care most about the value of the product or service rather than the efforts to produce it. Value Stream Mapping helps to illustrate value-added steps for manufacturers. It is an ongoing process used for continual improvement. The goal of Value Stream Mapping is simple, to eliminate waste and create the most efficient system possible, bringing the greatest value to that product’s process.

While manufacturers benefit from utilizing value stream mapping, those who benefit the most from the process are the customers. The customer experiences a better quality product through a more efficient system that ultimately meets their needs and expectations.  Additionally, by reducing waste and expense, a contract packaging company can pass on savings to their customers as efficiencies improve.

Benefits of Value Stream Mapping

Benefit #1: Reveals the Most Efficient Process

The VSM clearly labels material and information flows from order entry, purchasing, processing, quality inspections and packaging to see the entire process through from beginning to end. Value Stream Mapping originates from the perspective of the customer, with all required steps to meet product specifications clearly defined. Essentially, we want to identify the processes that add the most value to the customer’s product in the most efficient way.

Benefit #2: Identifies Waste

The VSM encompasses the processes that a product goes through from start to finish. The value stream sequence identifies waste, or an action or step that does not add value to the customer. For example, the VSM can diagnose overproduction, unnecessary motion, or excess stock as waste. A customer will not want to pay for these wastes so the VSM can help the manufacturer better their processes and add value to the customer’s project.

Benefit #3: Improves Manufacturer

Value Stream Mapping helps to align the entire manufacturing company on common goals. All aspects of the company including upper management, operations, administration, and sales want to add value to the customer’s project. This common goal helps to prioritize improving the processes because it affects each company department at some level. Ultimately, Value Stream Mapping helps the company to analyze current and future production flows for improvement. When all stakeholders are in alignment, the manufacturing company can use their findings as an example for future projects and to benefit all customers.

Peoria Production Shop strives to add value to every product we touch. We use Value Stream Mapping to help identify waste and create the most efficient systems possible. Visit our website to learn how we can add value to your next project.


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