Written by Will Johnson, Ryder Lean Supply Chain Solutions
Will Johnson is Director of Lean Supply Chain Solutions for Ryder System, Inc. Mr. Johnson is a Master Black Belt and leads a team at Ryder focused on providing lean solutions to Ryder’s customers and internal departments.
Value Stream Mapping Process
Value Stream Mapping is an effective way to identify and eliminate waste in your supply chain and can have dramatic implications when implemented correctly.
These 5 steps will walk you the process of creating your own value stream map.
Getting Started
There are several important steps to getting started with your value stream mapping process.
- Identify product group.
Within a warehouse, the first important step to carry out when developing a value stream map is to identify the product or product family (group of products that pass through similar processes and use common equipment and resources) you would like to improve. When creating a value stream map, it’s crucial to focus on one product family at a time. The rule of thumb is to create maps for the products with highest volumes first. Value stream mapping for one product family usually takes about two days. - Identify the current flow.
Once you’ve defined the scope, the next step is to create a “current state map,” or a visual representation of how the process (or processes) in the warehouse are operating at the present moment. Current state mapping begins with understanding customer requirements. Key data points such as units per month, shipping frequency/schedules, hours of operations (available time), number of shifts worked, or any pertinent information around customer demand should be gathered before beginning the current state map. - Observe and confirm processes.
The mapping then begins by going to the warehouse floor to observe processes firsthand. In fact, going to the gemba (or the place where the work happens) is critical to having an accurate current state map. To do this, the value stream mapping team typically starts the value stream walk at the end of the process, with the last process closest to the customer. In a warehouse, this may be the shipping/outbound loading process. The team would then walk back up the value stream, observing the steps to each process, until reaching the process where the product comes into the warehouse (i.e. receiving). - Map the flow or stream.
After discussing what has been observed, the team would then immediately begin to draw out the basic product flow. This is typically done on the wall using large sheets of paper or a drawing board, filling in data boxes below each process (cycle times, number of operators, defect and quality data, etc.), placing inventory numbers in between each process to understand the amount of work in process, and mapping the information flow (the systems and communications that authorize production at each process step). Identification of the process is important to fully understand where bottlenecks may occur or efficiencies can be implemented. - Creating the Implementation Plan.
The most important and final step of the value stream mapping process is the creation of the implementation plan to achieve the future state. You create this plan by dividing your value stream map into manageable pieces that will allow the team to accomplish improvements in a short period of time. Typically, the implementation plan is split into three phases: 30-60 day improvements, 90-180 day improvements, and 360-day improvements. The team should prioritize the plan to get the majority of the improvements implemented within one year.
It’s important to remember that value stream mapping is only a tool. Unless you achieve the future state, the team’s effort of creating the value stream map is worthless and creates no value for your organization or the customers’ that receive your product or service.
In the process of mapping your value stream? Leave us a comment and let us know how it’s working for you.
