How to Use Value Stream Mapping and Process Mapping in Business Process Optimization

Summary: The purpose of Value Stream Mapping and Process Mapping is to document a process, visualize where value is created and delivered, and identify where it needs improvement. In this article, I will explain what Value Stream Maps and Process Maps are, how they are different, and show some Value Stream Mapping examples and Process Mapping examples.

What is Value Stream Mapping?

A Value Stream Map (VSM) is centered on providing a holistic view of how value flows through your organization and is delivered to the customer.

VSMs show where value added activities exist (or could exist)

Your challenge is to redesign a process in such a way as to increase value.

Work to eliminate non-value added activities

Management's challenge is to redesign a process in such a way as to eliminate much of the delay time as possible.

Value added as a small percent of total

When a process is described this way, when value added work represents only a small fraction of the total time it takes to process in order, a very different way of looking at an operational process begins to emerge. Now, the delays capture our attention and we immediately begin to think of ways they can be reduced or eliminated. The emphasis is now on Lean.

Delays can be very significant

But is this common? Surely, most companies must recognize that waste, delays, or errors on non-value-added steps. Surely they must eliminate them as quickly as possible.  And surely, if these problems do exist, they represent a small part of a business process.

The fact of the matter is most organizations are not nearly as attentive to these problems as we might expect. Research in this area says that delays can account for 95% of the total processing time for many products and services. Okay, this might be a bit of an exaggeration, so let's be much more conservative.  Even if delays account for only half of the processing time, the potential benefit from applying the principles of Lean can provide significant benefits to the organization in cost savings and better customer service.

What is Process Mapping?

There is a considerable overlap between a value stream map and a process map.  In general, a process map is fairly simple, yet includes more detail than a Value Stream Map.  A Process Map offers a visualization of a workflow, including materials, services, and information involved in the process. Process maps are also used to redesign processes, evaluate process efficiency, and minimize delays.

Some process maps are called cross-functional process maps because they illustrate how process steps cross-department boundaries.

Kanban

Another type of process map used in scheduling, and then in the monitoring of that schedule, is called Kanban. Its objective is to support an orderly and efficient flow of work through a process. This type of flowchart depicts the flow from inputs to a process through the processing steps and then to completion.

Maps

Maps serve a very important purpose in Lean Six Sigma projects.  In fact, they are indispensable.

While a SIPOC chart identifies the key entities in a process, the value stream and process maps illustrate the sequence and relationship of steps in converting inputs to outputs.  As such, they provide an opportunity to analyze the way in which the steps in a process achieve a process goal. They help us recognize problems and identify opportunities as we strive to improve process performance.