Glossary

What is Value Stream Mapping (VSM)? | Definition, Steps & Examples

Value Stream Mapping (VSM) is a lean management tool that visualizes the entire flow of materials and information required to bring a product from order to delivery. A value stream map shows every step in the process — both value-added and non-value-added — along with key metrics like cycle time, lead time, changeover time, and inventory levels. It reveals where waste exists and guides improvement priorities.

How to Create

To create a value stream map: (1) Select the product family to analyze. (2) Walk the actual process from end to end (door-to-door). (3) Map the current state: draw each process step, inventory points, information flows, and transport. (4) Record key data at each step: cycle time, changeover time, uptime, batch size, number of operators. (5) Calculate lead time (total time through the system) and processing time (value-added time only). (6) Identify waste and improvement opportunities. (7) Design the future state map with proposed improvements. (8) Create an implementation plan. Accurate cycle time data from video analysis tools like Yamazo VAS strengthens the data quality of your VSM.

Example

A VSM of a bracket manufacturing process reveals: total lead time is 23 days, but total processing time is only 185 seconds. This means less than 0.01% of the total time is value-added. The map shows 15 days of raw material inventory, 6 days of WIP between stations, and 2 days of finished goods. The future state map targets reducing inventory to 3 days total, implementing flow between welding and assembly, and cutting lead time to 5 days.

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