Value Stream Mapping
Use value stream analysis to uncover hidden efficiency potential in your supply chain and, through the systematic visualisation of material and information flows, create a robust basis for decision-making to support your strategic process optimisation. As specialist consultants, we support you in sustainably reducing lead times and managing your entire value creation networks in a scientifically sound and economically optimal manner.
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Value Stream Mapping as a path to a leaner supply chain
A value stream analysis is a systematic tool used in lean management to comprehensively map, analyse and optimise material and information flows throughout the entire supply chain. In order to sustainably eliminate inefficient ‘silo’ solutions within complex production networks, it is not sufficient in modern supply chain management to consider isolated sub-areas. By applying targeted abstraction and focusing on the overall logistical picture, this methodical approach enables you to precisely identify hidden bottlenecks and drastically reduce lead times. Benefit from the in-depth engineering expertise of ebp-consulting GmbH to structure your operational processes in a resource-efficient and future-proof manner. Find out in detail in this glossary entry how to carry out a value stream analysis using a sound methodological approach and what measurable optimisation potential this offers for your company.
Strategic Context: Value Stream Mapping in Supply Chain Management
Value stream mapping is an indispensable method for the structural reorganisation of complex value creation networks. In contrast to traditional, often error-prone production optimisation of individual sub-areas, this method effectively prevents the emergence of inefficient isolated solutions. By deliberately taking a broader, higher-level view, the focus shifts to understanding cross-departmental operating principles. This holistic perspective enables C-level decision-makers to make well-informed investments in customer-oriented production systems that deliver measurably higher performance. The methodology thus serves as a strategic foundation for subsequent optimisation projects and future layout planning for entire production plants.
Value Stream Analysis explained in simple terms
Value stream analysis visualises the entire journey of a representative reference product from the initial supplier to the end customer at a broad but meaningful level of detail. In addition to the physical flow of materials, the model must document all controlling information flows, such as incoming customer orders or internal production orders. To ensure clarity and global standardisation, internationally recognised, predefined graphical building blocks are used. The primary aim is to use this structured abstraction to uncover hidden types of waste, unnecessary dwell times and physical bottlenecks in the current value stream. Value Stream Mapping in Lean Management then systematically compares these flawed current states with tried-and-tested Lean principles to define an efficient target state.
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The ebp-consulting approach: experience, objectivity and integration
In reality, the apparent simplicity of the method often masks the immense complexity of the actual current state in industrial practice. The experts at ebp-consulting GmbH possess the necessary objectivity to resolve cross-departmental differences of opinion in a fact-based manner, acting as neutral mediators. We provide you with critical support in the company-specific selection of relevant product families, as this decision determines the quality of the future production system. By deliberately involving experienced staff from day-to-day operations, we drastically reduce project risks and ensure maximum acceptance. When finalising Kaizen Blitzes, you benefit directly from our many years of methodological leadership expertise in VSM within Lean Management.
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The Value Stream Mapping process
Traditional production optimisation has historically always faced the problem that only sub-areas of production were analysed and optimised, because it was too daunting to analyse the complexity of the entire process in a single step or operation. This resulted in ‘silo solutions’, interface problems and sub-optimal investments, which often failed to deliver the hoped-for savings or improvements.
The process of moving from the current state to a target state is divided into three phases:
- Value stream analysis
- Value stream design
- Value stream development and stabilisation
By contrast, the idea behind value stream mapping is to get to grips with the complexity of production and the process steps involved by selecting representative products and applying abstraction at a broader level, whilst placing greater emphasis on understanding the interrelationships. To summarise: rather than singling out a specific sub-area and analysing it in depth, the aim is to take a step back to a higher ‘level’ and focus on the bigger picture.
The core components of value stream analysis
The methodological transformation process from an unsatisfactory current state to an efficient target state is structurally divided into three phases that build upon one another. Firstly, the methodologically sound approach requires the joint analysis of the current situation directly at the point of action, the Gemba. This is followed by the in-depth value stream design, which focuses consistently on the design of the future, waste-free state. The process concludes with the value stream development and stabilisation phase, during which the theoretical concepts are translated into practical operational reality. This systematic structure ensures that every optimisation measure derived contributes precisely to increasing value for the end customer.
Mapping the current state and material flow
Ideally, the current state is assessed as a team and proceeds upstream – that is, systematically against the direction of the material flow, from dispatch to goods receipt. During this walk-through, the project team precisely identifies and documents current shortcomings, ergonomic deficiencies and all stock levels between the individual production steps. Physical inbound and outbound transport operations are also catalogued in detail using the appropriate graphical symbols. This consistent on-site approach is essential for resolving cross-departmental discrepancies and generating a valid, consistent picture of the current state of operations. Only on the basis of this hard, unvarnished data reflecting reality can effective and error-free process optimisation subsequently be established.
Analysing information flows
An excellent supply chain is characterised not only by rapid transport, but above all by error-free and low-latency information chains. Therefore, in parallel with the material flow, all controlling data streams – such as forecast generation and order processing – are seamlessly integrated into the visual representation. These information flows can also be effectively reviewed and accelerated with regard to types of waste (muda), in particular downtime or unnecessary queries. End-to-end processes frequently analysed in this context include SOP, the order-to-cash process and high-level production control. The systematic elimination of administrative bottlenecks leads directly to shorter response times and significantly higher delivery reliability in operational logistics.
Value stream design and rate-determining process
The most critical step in value stream design is identifying the logistical bottleneck and determining the associated rate-determining process. This process step must be positioned as close as possible to the end customer, as it sets the absolute takt time for the entire future production system. Starting from this central point, the principle of continuous flow is extended as far as possible throughout the entire chain. In this ideal state, the upstream processes are controlled solely by demand-driven pull principles, such as Kanban systems. Consequently, the entire system is regulated centrally via a single process, which drastically minimises the complexity of production control.
Practical applications of value stream analysis
In principle, value stream analysis and value stream design are about designing a customer-oriented and high-performance production system for the future and defining its new structures.
A further step involves synchronising assembly lines, identifying areas for optimisation in set-up processes (SMED) and ‘scrutinising’ the entire processes for further optimisation approaches. This ensures that all optimisation projects are steered in a coordinated direction. An area that is often neglected is outbound logistics to the customer: this frequently gives rise to new requirements for logistics, external service providers or warehouse structures.
Taken together, this can lead to a consistently optimised value-added process, which forms the basis for a new layout in a production hall or even an entirely new production plant.
Information flows can also be examined for muda – in particular, dwell times or queries, etc. – and accelerated. Frequently analysed and optimised end-to-end (E2E) processes include SOP, the order and order processing workflow (Order-to-Cash) and production control.
