Sena Düzgün (Writer)
24 July 2024
What is Value Stream Mapping (VSM)?
Value Stream Mapping (VSM) is a management method that visualizes the value-adding and non-value-adding steps in the processes from the supply stage of a product or service to its delivery to the end user. This method aims to increase the competitiveness of the business by identifying wastes (muda) in the processes and enhancing efficiency.
Key Concepts of VSM:
Value Stream Map: A diagram that visualizes all the steps followed by a business to produce a product or service. This diagram shows the flow of processes, the sequence of operations, the relationships between processes, and the flow of materials/data.
Waste (Muda): Any activities in the Value Stream that do not create value for the customer.
Non-Value-Added Activity:
Value-Added Activity: Activities that create value for the customer and directly contribute to the product or service.
Why Do Businesses Use Value Stream Mapping?
- It allows businesses to visualize their processes and identify waste and unnecessary activities, which helps make processes more efficient, reducing production time and costs.
- It provides a tool for identifying and eliminating waste in processes, which can include elements such as excess inventory, waiting times, and unnecessary activities in process steps, thus enabling more effective use of resources.
- It helps businesses analyze the processes by which products and services reach customers.
- It supports the principle of continuous improvement, allowing businesses to periodically review their processes and make significant improvements to remain competitive.