“Value Stream Mapping” by Karen Martin and Mike Osterling

Value Stream Mapping is a process and visual tool used to analyze and improve the flow of materials and information in a manufacturing or service organization. It was developed by Karen Martin and Mike Osterling as a way to identify and eliminate waste in business processes. Value Stream Mapping is important for product managers and entrepreneurs as it allows them to identify areas where improvements can be made in order to increase efficiency and reduce costs. Additionally, it also helps in identifying bottlenecks that are slowing down the production process, and helps in identifying and removing non-value-adding activities from the process. By using this tool, product managers and entrepreneurs can ensure that their products reach the market faster, with higher quality and at a lower cost.

Steps to build a value stream map

1. Define the scope of the value stream: The purpose of this step is to identify the boundaries of the value stream, including the products or services being produced, the customers, and the processes involved. For example, in a manufacturing company, the scope might be defined as the production of a specific product line for a specific customer.
2. Create a current state map: The purpose of this step is to create a visual representation of the current state of the value stream, including all the processes, information flows, and inventory levels. A clear description of this step is that it helps in identifying the current process flow, the cycle time, the inventory level, the information flow and the overall process efficiency. For example, A current state map of a manufacturing company’s production process might show that there are several delays and bottlenecks in the process.
3. Identify the value-added and non-value-added activities: The purpose of this step is to identify which activities in the process add value for the customer and which do not. A clear description of this step is that it helps in identifying the activities that are important and relevant to the customer and those that are not. For example, in a software development company, writing code may be considered a value-added activity, while waiting for feedback from a customer might be considered non-value-added.
4. Create a future state map: The purpose of this step is to create a visual representation of the desired future state of the value stream, including all the improvements that will be made to eliminate waste, reduce cycle time, and improve quality. A clear description of this step is that it helps in identifying the future process flow, the cycle time, the inventory level, the information flow and the overall process efficiency. For example, A future state map of a manufacturing company’s production process might show that the process has been streamlined, with fewer delays and bottlenecks.
5. Develop an implementation plan: The purpose of this step is to create a plan for implementing the improvements identified in the future state map, including timelines, resources, and responsibilities. A clear description of this step is that it helps in identifying the steps that need to be taken in order to implement the future state map and how it will be implemented. For example, in a software development company, the implementation plan might include steps such as automating certain processes and implementing a new project management tool.
6. Implement and validate the plan: The purpose of this step is to put the plan into action and measure the results to ensure that the improvements identified in the future state map are being realized. A clear description of this step is that it helps in implementing the plan and checking if the plan is working as expected. For example, in a manufacturing company, this might involve implementing new processes, training employees, and monitoring the results to ensure that cycle time and inventory levels are improving as expected.
7. Continuously monitor and improve: The purpose of this step is to continuously monitor the value stream and identify opportunities for further improvement. A clear description of this step is that it helps in keeping the process under observation and look for areas that can be improved. For example, a software development company might monitor the results of their new project management tool and look for ways to further optimize the process.
8. Value Stream Mapping is an effective tool for identifying and eliminating waste in business processes and creating a roadmap for implementing lean management principles. By following these steps, product managers and entrepreneurs can increase efficiency, reduce costs, and ensure that their products reach the market faster, with higher quality.

Karen Martin and Mike Osterling

Karen Martin and Mike Osterling are business consultants and authors who specialize in the application of lean management principles to manufacturing and service organizations. Karen Martin is the founder of The Karen Martin Group, a consulting firm that helps organizations improve their performance by eliminating waste and creating value. She is a recognized expert in the field of value stream mapping and has written several books on the topic. Mike Osterling is a former Vice President of Manufacturing at GE Appliances and an experienced Lean Six Sigma leader. He is also an experienced consultant and has written several books on the topic of lean management. Together they have co-authored the book “Value Stream Mapping” which provides a comprehensive approach to creating and implementing value stream maps in any type of organization.