DevOps

What Is Value Stream Mapping?

Definition, Working, and Examples
Value stream mapping (VSM) shows the events leading up to product usage to map
inputs vs. outputs and reduces waste.

Chiradeep BasuMallick Technical Writer

September 20, 2022

Value stream mapping (VSM) is a project workflow visualization tool that

pictorially represents the events that lead to the user receiving the product,
including product development, the supply chain, design, quality assurance,
customer support, etc. — depending on the industry — to map inputs vs. outputs
and reduce waste. This article explains how value stream mapping works with
examples.

Table of Contents

What Is Value Stream Mapping?

How Does Value Stream Mapping Work?

Value Stream Mapping Examples


What Is Value Stream Mapping?
Value stream mapping (VSM) is defined as a project workflow visualization
tool that pictorially represents the events leading up to the user receiving
the product, including product development, the supply chain, design,
quality assurance, customer support, etc. — depending on the industry — to
map inputs vs. outputs and reduce waste.

Pictorial Representation of a Value Stream Map | Source 

Companies worldwide have to deal with the ever-growing challenge of meeting

rising consumer expectations and value systems while maintaining an affordable
price for their goods and services. That is, prices fit into the demands of the already
established or prospective target market. This can be challenging for industries
and manufacturing plants that deal with the production of goods and also
organizations that specialize in offering various services.

Because of this, product management methods like the lean methodology have
been widely adopted. In particular, value stream mapping has started to be used in
different fields, such as product development and DevOps. It is a fundamental idea
that has been around for more than 60 years. Managers, team leaders, and
employees should understand it at crucial points in the workflow and decision-
making process.

What is the meaning of value stream

mapping? 
It’s important to remember that users, whether external (customers) or internal
(employees), care about the value of the product or service they’re getting, not
about how hard it was to make or how much value it might bring to other users.
Value stream mapping keeps this in mind. It allows project managers to illustrate,
analyze, design, and optimize the workflow procedure involved in producing a
product from start to finish.

Value stream mapping is a tool used in the lean product management method. It
looks at the steps to make a product and finds the high-value steps and wasteful
areas. It is also forward-looking as the technique can be used to design a
production model that will consider current performance and future goals.

A value stream map is a visual representation of a company’s production process —

highlighting all of the critical activities and phases that contribute to creating
additional value. It may vary from company to company, even for the same end
product. It quantifies input such as time and output in terms of volume.

Value stream maps can easily be likened to a flowchart, using diagrams, pictures
and symbols to depict the flow of materials being processed and information down
a work process. In a practical setting such as an oil processing plant, a value stream
map will depict the arrival of raw materials, washing and preparation, the
extraction process, purification, branding, and packaging and may also include
delivery to warehouses or direct consumers. Using value stream mapping, a
production manager can identify areas of backlog, stagnancy, and waste that
reduce the total efficiency of the process.

Value stream mapping is not a very new idea. Toyota first recognized its
implementation after the Second World War. It was then called a material and
information flow diagram. Later, it integrated into the lean manufacturing
ideology, spreading the idea across the United States in the 90s.

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Elements of a value stream map

The first step in successfully constructing a value stream map is to recognize and
appreciate the components inherent to each value stream map. Four primary
elements comprise the foundation of the production process and must be
incorporated into value stream mapping. These are:


 The customer: This is an essential element in the value mapping stream.
Note that it is what the consumer regards as the value that matters most in
the value system and not operational practices that do not directly influence
the outcome. The symbol representing the customer should be attached to a
data box that tells the production team how much of the product is needed per
day to satisfy demand. This determines an effective operation in which the
cycle time is equal to the takt time and is also used to compute the takt time.

Supplier: The supplier is also vital to the value stream map. This is used to
cover the flow of raw materials used in processing. For multiple suppliers,
geographical areas or a general symbol can be used. Understanding the
suppliers helps keep track of production costs, capital, and inventory.

Product flow: The product flow forms the body of the mapping process. It
visualizes, using symbols, each procedure done on the raw material to get it to
the finished form. The different stations like processing, printing and sealing
machines, assembly stations, etc., are captured in the product flow.
Information in terms of human resources involved in each production step is
also summarized for proper evaluation.

Information flow: The documentation of this step in the value stream

mapping process is what you see in this element. Often overlooked, the
information flow is integral to the smooth running of the value stream. It can
be manual in the form of printed reports and cards or in an electronic format
using note apps, Trello, etc. The information flow directs restocking of raw
materials, processing and interpreting customer demands, work schedules,
shifts, emails, etc.

See More: DevOps vs. Agile Methodology: Key Differences and Similarities

Purpose of value stream mapping

Since its beginnings as a component of the lean methodology, value stream
mapping has shown its utility in making production processes more efficient. This
has been the case ever since the method’s debut. Value stream mapping aims to
reduce waste and maximize efficiency, which means minimizing effort as much as
possible. The benefits it brings about include:

It identifies the source of waste and minimizes it. The term “waste” refers to 

any stage in the value stream that does not contribute to the overall value
 proposition for the final consumer. VSM helps you identify these steps and
reduce them to the barest minimum.

It promotes open lines of communication and teamwork amongst different

groups. From sourcing to production and operations, down to logistics, VSM
increases interdepartmental cooperation and collaboration. It does this while
ensuring that every team member has well-defined yet flexible roles.

It boosts production efficiency in terms of input and output. It does this by

determination of cycle time, takt time, eliminating delays and lags, etc.
Resources that are not needed for the end product are also eliminated.

Value stream mapping provides a platform for expansion and growth. It also
helps form the basis of an implementation plan for new product ideas.

Understanding the use of value stream

mapping in DevOps
In the past, value stream mapping was only employed in factories and other
manufacturing facilities. But now, the principles have been used to draw value
stream maps for software development and operations. In a DevOps lifecycle, the
goal is to ensure continuous delivery of the product, and it starts from software
development and life cycle to monitoring, debugging, improvements, and so on.

One can tailor value stream mapping to the specific actions carried out by each
team member or sequentially. The maps thus bear a pictorial representation of all
the steps involved in software development. It should start from the initial coding,
debugging, quality assurance, and deployment and end in the maintenance cycle.
VSM, therefore, increases the simplicity and effectiveness of the DevOps team.

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How Does Value Stream Mapping Work?

Value stream mapping is a relatively easy technique to implement. Only
occasionally does a specialist need to draw a functional map for your
organization’s workflow. These ten stages will demonstrate how one may
implement value stream mapping in your business.

1. Identify the business problem
The first step in any value stream mapping process is identifying the problem.
Identifying the problem consists of knowing the product and identifying the
customer’s pain point or value for that product. This will guide the aim of the
mapping process.

The product could be a good, software, or service. The customer’s pain point
concerning that product could be increased delivery time, demand for a price
reduction, the increased demand not being met with supply, etc. Either way, this
should be the background knowledge for every team member as it will influence
how they approach the value stream map and hence influence whether the
outcome will be effective.

2. Set boundaries for the value stream map

Setting boundaries is a very crucial step of VSM. Without boundaries, there will be
excess and unnecessary energy expenditure even in mapping. The value stream
map is not just a flow chart of all the activities in a company. It is a flowchart that
shows the path a specific product takes and highlights which processes are of value
and which are not.

Before starting your value stream mapping, set the boundaries on where the map
would begin and end. For example, will it run from sourcing raw materials to
storage? Or to delivery and customer service and complaints.

3. Do the “Gemba Walk”

It is impractical to draw a practical value stream map without actually
experiencing the production process yourself. You must conduct a waste
identification exercise (also called a Gemba Walk) and not just read reports or base
your conclusions on hearsay. You may have to do the walk multiple times, and it is
recommended to do so at least twice. This helps you see the entire process or much
of the process in an overview and also identify key areas of waste that may be
missing from reports.

4. Describe the steps In a VSM illustration 

The next stage identifies all the processes and functions that produce a consumer-
value-added product or service. This doesn’t mean merely outlining a factory’s
procedures. The study must be directed to mapping out information flow that will
produce customer value, indicate other necessary steps and look for areas of
waste.

5. Indicate the flow

After visually representing the activities in the production process, the next step is
to add the necessary arrows to show the direction of work materials and
information. One can indicate the value-adding steps at the center of the map, and
other activities (operations) are shown with vertical arrows drawn perpendicular to
the value stream.

See More: DevOps Roadmap: 7-Step Complete Guide

6. Gather important data

Data gathering is the next phase in the value stream mapping process. Data
collection can be done during the second VSM walkthrough. This data must be
directly linked to each process and is used for further evaluation. Data collection
should cover processing time for each step, resources needed, inventory at hand,
working hours and shifts, the number of workers, processing time, batch size, daily
customer demand, etc.

7. Add data to the map and create a timeline

After data collection, you can return to the developing map and add that
information in boxes under each process. These boxes should include the
resources, workers, work time, machine time, number of goods processed, lead
time, cycle time, packaging, and shipping time, where applicable.

8. Identify waste
The next step is crucial, dealing with the identification and removal of waste.
Waste in the lean methodology is inefficiencies that can be classified into six
groups.

 Overproduction: This generates waste in every other aspect of the value
stream. It means producing more goods than are needed at any particular
time.

Conveyance: This covers waste in transporting physical goods or services

through more distance than necessary. It could be due to the spreading out of
workstations or unnecessary reviews by too many members of a DevOps
engineering team.

Waiting: It invokes the idleness of machines or employees who cannot

function due to unavailable or delayed resources from the previous process. It
causes a downstream effect.

Processing: Items should be manufactured with just enough resources to

attain the standard quality. Anything above this is a waste.

Motion: this includes time spent on processes such as looking for tools that
should otherwise be available

Correction: This is the time and resources spent on fixing errors made in
production.

9. Develop and evaluate the value stream

map
The next stage is to evaluate the value stream map, including inputs where
appropriate and eliminating unnecessary sections. Then you can create the final
version of that organization’s current value stream map. You can also create a
futuristic map – that is, an ideal state value stream map that illustrates the goals
everyone should work towards achieving.

10. Set up an implementation plan

Following a value stream map is easier said than done. When implementation
strategies are neglected, it becomes more of a decorative aspect of the company. To
maximize effectiveness, use the value stream map to write out specific instructions
that are actionable and measurable steps. Then constantly monitor outcomes to
make adjustments when necessary.


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Applications
Value Stream Mapping Examples
This project management technique has found applications in virtually all
industries, being modified to fit into the nature of the processes carried out in that
industry. Some key examples are listed below and can serve as models for crafting
your value stream map.

1. Value stream map in the healthcare

industry
Healthcare forms one of the major industries in our present day. From hospitals to
clinics and pharmacies, there is always the problem of patient waiting time, cost of
services, and procedures. In healthcare, any delay in wait time is a potential for
serious fatality. This stresses the importance of value stream mapping and how
professionals can use it in the healthcare system to increase efficiency and
decrease cost.

Hospitals can create a value stream map that shows all the points a patient goes
through, from when they step into the building to when they leave. This included
the emergency rooms, nurse stations, consulting time, surgery preparation, etc. If
adequately implemented, clinics and hospitals can identify steps that create
bottlenecks, deploy more resources there, and improve overall performance.

2. Finance value stream mapping

Another area that is progressively using value stream mapping in its business
strategy is the financial sector. The aim remains the reduction of waste and an
increase in efficiency. One can automate some basic processes that lead to long
bank queues.

Updating old technology and hardware-based IT infrastructure can reduce wait

time, conveyance, and motion. Using value stream maps, managers can identify
sections of the business or services that do better than others, find underlying
causes and implement better strategies in low-performing departments.

3. Value stream mapping in manufacturing

industries

Value stream mapping was first outlined in manufacturing industries. It became
popular in the 90s after Toyota released a guide on its production system. Ever
since manufacturing companies have replicated the technique to improve their
performance.

In manufacturing companies, the process involved in making a finished product

and getting it to the consumer is scrutinized, evaluated, and visualized using
symbols and charts. Points of suboptimal performance that may slow down the
entire operation are noted and improved. Also, areas of overproduction are
identified.

4. Value stream mapping used in corporate

offices
Corporate organizations can also benefit from value stream mapping at an
operational level. Irrespective of size, every office and department in an
organization has several activities that slow down performance. Therefore they
can, by implementing value stream mapping, improve efficiency. Areas like
communication between departments, lack of office supplies, crowded printing
areas, poor inventory, software and hardware malfunction, etc. frequently slow
down productivity. When creating a value stream map, these bottlenecks are
discovered and addressed.

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Takeaway
Value stream mapping is an incredibly versatile tool. Users can apply it at virtually
any juncture of digital transformation, where you need to minimize waste and
bring visible improvements. Scrum masters can use this technique to boost the
productivity of agile teams, even as CTOs and CIOs leverage VSM to plan
investments. Therefore, enterprises must comprehend VSM, its major components,
and the actions required to develop a value stream map.

Do you believe that value stream maps are essential for turbocharging DevOps
productivity? Tell us on Facebook  , Twitter  , and LinkedIn  . We’d love to hear
from you!

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Chiradeep BasuMallick 
Technical Writer

Chiradeep is a content marketing professional, a startup incubator, and a tech

journalism specialist. He has over 11 years of experience in mainline advertising,
marketing communications, corporate communications, and content marketing. He
has worked with a number of global majors and Indian MNCs, and currently manages
his content marketing startup based out of Kolkata, India. He writes extensively on
areas such as IT, BFSI, healthcare, manufacturing, hospitality, and financial analysis
& stock markets. He studied literature, has a degree in public relations and is an
independent contributor for several leading publications.

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