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Value Stream Mapping

03 October 2025

Value Stream Mapping (VSM) is a tool used in process management, lean management, and Six Sigma to analyze and optimize workflow. It helps identify waste, downtime, delays, and other inefficiencies in the process – from start to finish.

🧭 What is Value Stream Mapping?


VSM is a graphic representation of the process that analyzes:

  • Value-adding steps,

  • Non-value-adding steps (waste),

  • Flow of materials and information,

  • Processing and waiting time,

  • Potential improvements.


It is a versatile tool – used in production, logistics, services, administration, and IT.

🧩 Key elements of VSM:
 

Element Description
Process steps Specific actions through which a product or service passes.
Processing time Actual time spent working on the product/service.
Waiting time Downtime between consecutive steps.
Information flow Communication and information transfer in the process.
Waste Non-value-adding activities – e.g. overproduction, errors, unnecessary transport.
Cycle time Time taken to complete one cycle of work.
Lead time Time from order to delivery of product/service.
 
 

🛠 How to create a Value Stream Map?
 

  • Define the purpose and scope of mapping – e.g. entire production process or selected stages only.

  • Identify all steps in the process – from order to delivery.

  • Collect data – duration of activities, downtime, flow of materials and information.

  • Draw the map – using standard symbols and arrows to show sequence and dependencies.

  • Analyze the current situation – identify sources of waste.

  • Develop a future state map – with improvements (e.g. reduced downtime, better information flow).

 

🌍 Example of a simplified VSM
 

  • Customer Order →

  • Production (processing, assembly) →

  • Quality Control →

  • Warehouse →

  • Shipping
     

Possible issues:

  • Downtime between stages,

  • Communication errors,

  • Excess inventory in the warehouse.

 

✅ Benefits of VSM:
 

  • Better understanding of the entire process,

  • Identification of non-value-adding steps,

  • Optimization of material and information flow,

  • Facilitation of lean management implementation in the organization,

  • Shorter lead times and cost reduction.

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