Question 11

Explanation

Value stream mapping (VSM) is defined as a lean tool that employs a flowchart documenting every step in the process. Lean is a management philosophy that focuses on eliminating waste and creating value for customers. A process is a series of activities and tasks that transform inputs into outputs. A flowchart is a diagram that shows the sequence and logic of the steps in a process. VSM is a technique that helps to visualize and analyze the current state and the future state of a process, by showing the flow of both materials and information, as well as other relevant data, such as cycle time, inventory, quality, and costs. Many lean practitioners see VSM as a fundamental tool to identify waste, reduce process cycle times, and implement process improvement. Waste is any activity or resource that does not add value to the customer or the product or service. Process cycle time is the total time from the beginning to the end of a process. Process improvement is the systematic approach to enhance the performance and efficiency of a process.

VSM is a workplace efficiency tool designed to combine material processing steps with information flow, along with other important related data. Material processing steps are the actions and transformations that occur on the materials or products as they move through the process, such as cutting, assembling, painting, or packaging. Information flow is the movement and exchange of data and instructions that control and coordinate the process, such as orders, schedules, specifications, or feedback. Other important related data are the quantitative and qualitative measures that indicate the performance and effectiveness of the process, such as cycle time, inventory, quality, and costs. VSM is an essential lean tool for an organization wanting to plan, implement, and improve while on its lean journey. A lean journey is the continuous and ongoing process of applying and sustaining lean principles and practices in an organization. VSM helps users create a solid implementation plan that will maximize their available resources and help ensure that materials and time are used efficiently. An implementation plan is a detailed and structured action plan that outlines the steps, resources, and responsibilities for executing and achieving a desired change or goal. VSM helps users to identify the value-adding and non-value-adding activities in the process, eliminate or minimize the sources of waste and variation, optimize the flow and balance of the process, and implement the best practices and solutions for the future state.

The mnemonic TIMWOOD can help the buying organisation remember the seven wastes. A mnemonic is a memory device or technique that helps to recall or retain information. A buying organisation is an entity that purchases goods or services from external suppliers for its own use or for resale. The seven wastes are the common types of waste that occur in a process, and that reduce the efficiency, quality, and value of the product or service. The mnemonic TIMWOOD stands for:

• Transportation: This is the movement of materials or products from one place to another, which does not add any value to the customer, and may cause damage, delay, or loss.

• Inventory: This is the amount of materials or products that are stored or in transit, which does not add any value to the customer, and may incur costs, risks, or obsolescence.

• Motion: This is the movement of people or equipment within the process, which does not add any value to the customer, and may cause fatigue, injury, or waste of time.

• Waiting: This is the idle time or delay between the steps of the process, which does not add any value to the customer, and may cause dissatisfaction, inefficiency, or waste of resources.

• Over-production: This is the production of more products or services than the customer needs or wants, which does not add any value to the customer, and may cause excess inventory, waste of materials, or lower quality.

• Over-processing: This is the use of more resources or steps than necessary to produce the product or service, which does not add any value to the customer, and may cause waste of time, energy, or money.

• Defects: This is the occurrence of errors or mistakes in the product or service, which does not meet the customer’s requirements or expectations, and may cause rework, scrap, or customer complaints.

Reference:

- CIPS L4M6 study guide page 69-70 / The new syllabus 2024

- WHAT IS VALUE STREAM MAPPING (VSM)?

LO 2, AC 2.1