Project management

Value Stream Mapping (VSM): Definition and Examples. How to Apply It for Real Process Improvements?

Anyone who manages processes in a company knows perfectly well how difficult it sometimes is to identify areas that need improvement. Valuable time is often lost, resources are not optimally used, and value from the customer’s perspective decreases. In such situations, Value Stream Mapping (VSM) comes to the rescue. This proven lean technique helps identify and eliminate waste while optimizing processes. Let’s check how to effectively use VSM in your organization!

In this article, you will learn: What Value Stream Mapping (VSM) is and how it works Key benefits of using VSM How to create a VSM step-by-step Common VSM symbols and their meanings When to use VSM vs. other process mapping methods Real-world applications of VSM across industries What to look for in modern digital VSM tools How FlexiProject supports VSM and process improvements Mistakes to avoid when implementing VSM Why VSM is key to a culture of continuous improvement

What is Value Stream Mapping (VSM)?

Value Stream Mapping is a lean management technique used to analyze, design, and manage the flow of materials and information necessary to deliver a product or service from order to fulfillment. It’s a visualization method that documents each step in the process using a flow diagram. Mapping material and information flow uses a system of standard symbols to represent various work streams and information flows. This technique enables both analyzing the current state of a process and designing its optimized version.

A Lean Method for Analyzing Information Flow and Activities

The fundamental concept of lean philosophy is value – what the customer is willing to pay for. VSM helps distinguish between value-adding activities and those that don’t add value (referred to as muda in Japanese). This allows for the identification and elimination of all forms of waste in business processes. A value stream map is a visual tool that presents all critical steps in a given process and quantifies time and volume at each stage. It shows the flow of both materials and information, providing a comprehensive picture of the entire process. Toyota Motor Company used it this way, having developed the original VSM template in the 1980s. The map illustrated the necessary process steps from order entry to final product delivery.

Why use VSM? Business benefits and modern applications

Implementing value stream mapping brings numerous benefits:

• Easier process understanding: VSM enables all employees to understand the process flow, even those not directly involved with it.
• Comprehensive information: The template contains all information about individual processes, including human resources, materials, and execution times.
• Waste identification: VSM allows you to identify areas that bring losses, delays, or incomplete resource utilization.
• Holistic view: This comprehensive approach reflects the flow of information, human resources, materials, and connections between them.
• State comparison: The method allows for a very visual comparison of the actual state with the ideal one in a 1:1 ratio.
• Improvement plan: This makes it possible to establish and implement a specific plan for implementing improvements and supports the management of improvement projects.
• Increased customer value: VSM helps identify customer pain points and areas where even higher value can be obtained.

Above all, value stream mapping is an important component of a continuous improvement culture (kaizen). The form itself, which is easy to understand and conducive to analysis, encourages initiative-taking and activity.

How Value Stream Mapping works: Key elements and symbols

An important element of VSM is the symbols used to represent various process elements. These symbols were introduced by the Lean Enterprise Institute and are divided into several categories:

• Process symbols
• Material symbols
• Information symbols
• General symbols

Key VSM symbols include:

• Customer and supplier icons
• Dedicated process flow symbols
• Process data (cycle time, changeover time, availability)
• Inventory markings
• Flow symbols

Using standard symbols plays an important role: it ensures consistency and readability of value stream maps, thereby supporting communication between teams and departments as well as external specialists or the stakeholders themselves.

Step-by-Step: How to create a Value Stream Map

Creating a VSM is worth dividing into several stages. Below you’ll find an example scheme of this process:

1. Define the scope of the value stream map: Decide whether to map the entire product lifecycle or focus on specific process steps. Use VSM for only one product at a time.
2. Draw suppliers and customers: Indicate input sources (suppliers) and end recipients (customers).
3. Draw process steps: Use process symbols to illustrate each step in the production flow.
4. Add transportation and inventory requirements: Include information about material transport and maintained inventories.
5. Add information flow: Illustrate how information flows between different process steps.
6. Collect and add relevant metrics: Add data such as inventory amount, cycle time, transfer time, number of employees, rejection rates.
7. Create a timeline: Dedicate the bottom part of the map to time flow, using a time ladder for lead time and cycle time.
8. Calculate value-adding time and total lead time: Summarize times to get a complete picture of process efficiency.
9. Analyze the current state and design the future state: Identify areas of waste and inefficiency, then design a future state map that eliminates these problems.

VSM vs other process mapping techniques: When to use It?

Technique	Main Purpose	When to Use	Focus
VSM (Value Stream Mapping)	Identifying waste and optimizing value flow	If the goal is to eliminate weak points and continuous improvement	Value flow, identification of value-adding and non-value-adding activities
Flowchart	Visualizing the sequence of steps in a process	If a simple, understandable process visualization is needed	Sequence of steps, decisions, start and end points
SIPOC (Suppliers, Inputs, Process, Outputs, Customers)	Defining process boundaries and its most important elements	At the beginning of a process improvement project to establish its scope	Suppliers, inputs, process, outputs, customers
BPMN (Business Process Model and Notation)	Modeling business processes	If detailed, standard process documentation is needed	Task flow, events, artifacts
Swimlane Diagram	Showing who is responsible for what activities	If understanding roles and responsibilities in the process is important	Roles, responsibilities, interactions between participants

As you can see, VSM stands out with its focus on identifying waste and optimizing value flow. It works perfectly when the goal is to eliminate inefficiencies and improve processes in terms of delivering higher value to the customer.

Real-World VSM examples: from manufacturing to software teams

VSM comes directly from the world of manufacturing, but today it finds application in many industries:

• Manufacturing: The original application of VSM helps identify and eliminate waste in production processes. Value stream analysis allows removing unnecessary activities while maintaining production efficiency.
• Logistics and supply chain management: VSM helps optimize the flow of materials and information throughout the supply chain, reducing delays and eliminating unnecessary steps.
• Software development and IT teams: VSM helps identify efficiency problems also in software development teams. It thus supports other methods, such as workflow automation.
• Healthcare: Time for a less obvious industry. Value stream mapping helps optimize patient flow, reduce waiting times, and improve patient experiences.
• Project management and administrative processes: Today, VSM also finds wide application in managing various types of projects and processes, supporting, among others, project stakeholder management through better identification of their needs.

Digital VSM tools: What to look for. How FlexiProject helps?

Of course, many tools are available today for creating and managing value stream maps. When choosing the best project management tools, pay attention to several key features, such as:

1. Intuitive interface
2. Symbol library
3. Team member collaboration capability
4. Analytical tools
5. Integrations with other tools and systems

Want to identify waste, optimize workflows, and empower your teams with real-time insights? Try FlexiProject’s intuitive value stream mapping tools – and turn process complexity into clarity!

FlexiProject as a modern project management system offers comprehensive support for VSM, enabling, among others:

• Creating interactive value stream maps
• Process monitoring with Gantt
• Tracking metrics and KPIs related to the process
• Team collaboration in creating and analyzing maps
• Implementing and monitoring improvements identified through VSM

Common mistakes in VSM and how to avoid them

Implementing VSM can achieve fantastic results. Of course, if during its course you avoid the most common mistakes, such as:

1. Too broad scope: Focus on one product/value stream at a time.
2. Focusing only on the current state: Always design a future state map after analyzing the current one.
3. Lack of implementation plan: Develop a specific plan for introducing improvements identified through VSM.
4. Improper data: Clearly define what data is needed and how it will be used.
5. Too infrequent updating: Regularly update value stream maps as part of the continuous improvement process.

VSM as part of continuousimprovement Culture

As you can see, value stream mapping is a powerful tool supporting a culture of continuous improvement, which is the central point of lean philosophy referred to by the Japanese word Kaizen. The goal is simple: constantly improving every process at every level of the organization. Properly used value stream mapping translates into many aspects of company operation – from problem visualization through establishing better operational standards to increasing employee engagement and, particularly importantly, delivering higher value to customers. That’s why modern organizations increasingly treat VSM as a continuous process built into the company culture. Regular mapping of value streams, implementing improvements, and re-mapping creates a cycle of continuous improvement that is the foundation of the Kaizen philosophy.

Digital process mapping using lean tools is the foundation of effective management. Organizations that can effectively use VSM mapping examples and implement a process of continuous improvement gain a real advantage over the competition!