Value Stream Mapping (VSM) is a Lean management tool that helps businesses identify and improve their value-adding processes. In today’s fast-paced business environment, companies must constantly strive to be more efficient and effective in delivering products and services to their customers. VSM provides businesses with the necessary insights to achieve these goals and reap the benefits of operational excellence.
In this blog post, we’ll explore the benefits of VSM and how it can help organisations achieve operational excellence.
What is Value Stream Mapping?
A value stream is a series of interconnected processes that work together to deliver a product or service to a customer. VSM is a graphical representation of this value stream. Basically, it is a Lean management tool that helps businesses identify the processes that add value to their products or services and eliminate those that do not.
VSM provides businesses with a detailed map of their value stream, including all the processes and activities involved in producing and delivering a product or service. Furthermore, the map identifies the flow of materials and information through the value stream, as well as the time it takes to complete each process.
By identifying the value-adding processes in the value stream, businesses can eliminate waste, reduce costs, and improve customer satisfaction. VSM helps businesses streamline their operations and improve their overall performance.
Benefits of Value Stream Mapping
There are many benefits to using VSM. Let’s take a closer look at some of the most significant benefits:
Improved Efficiency
First of all, VSM helps businesses identify non-value-adding processes and eliminate them from their operations. This leads to improved efficiency and productivity. By eliminating unnecessary steps, businesses can reduce the time and resources required to produce and deliver products or services. This, in turn, reduces costs and increases profitability.
Enhanced Quality
Seconly, VSM helps businesses identify quality issues in their processes and take steps to eliminate them. By identifying the root causes of quality issues, businesses can implement solutions to prevent them from occurring in the future. This leads to improved quality and increased customer satisfaction.
Reduced Lead Time
Thirdly, VSM helps businesses identify bottlenecks and other process issues that cause delays in their operations. By eliminating these issues, businesses can reduce lead time and improve their ability to deliver products or services to customers quickly and efficiently.
Improved Communication
Next, VSM provides businesses with a detailed map of their value stream. This map helps improve communication and collaboration among team members, departments, and even suppliers. With a clear understanding of the value stream, team members can work together more effectively to achieve common goals.
Increased Profitability
Finally, by eliminating waste, reducing costs, improving quality, and reducing lead time, businesses can increase their profitability. VSM helps businesses identify and implement process improvements that lead to increased revenue and decreased costs. This, in turn, leads to increased profitability and a stronger bottom line.
Storage Systems
Storage Systems worked with us at the DCC LEO (Dublin City Council Local Enterprise Office) Lean Business Programme in March 2019. They wanted to make improvements to their sales order flow process. Consequently, they used VSM to provide value to their customers.
Background
By way of background, this company specialise in the design, supply and installation of storage equipment. Their clients include the industrial and commercial sectors. Founded in 1976, they are Ireland’s largest storage equipment company. They have over 30 full time staff. In addition, their offices are based in Dublin, Cork, Galway and Belfast. This company provide storage solutions including consultancy, planning, installation and maintenance for a warehouse distribution centre. Finally, they provide shelving for hospitals, museums, offices and libraries.
During Covid 19, they continued to operate normally with their online ordering system. Indeed, they have taken all precautionary measures to protect their customers, staff and surrounding communities. With over 9,000 products online, they have pivoted their business to now selling social distancing solutions. These include anti-bacterial shelving and staff lockers as well as protective screens, floor mats and floor marking.
Sales Order Flow Process
First of all, the business identified a number of issues regarding their sales order process. Actually, they wanted to streamline the process from order intake to installation on the customer’s site. By using value stream mapping, the business analysed certain processes. These included sales, design, order entry and contracts management.
We set up a Kaizen event with the team to document all issues. Next, we mapped the process from quotation to delivery of the product to the customer. Subsequently, their current situation revealed that there was:
- Too much paperwork.
- Inconsistent information.
- Very little communication and co-operation between team members (waiting on dockets, waiting for drawings or information from suppliers), wrong materials or parts ordered or delivered.
- Lack of ownership of tasks (sales person agreeing unrealistic installation dates with client).
- Lack of control which had a significant impact on customer support, finance and sales teams.
Online Sales System
In addition, it became clear that the company needed an online system to capture all data and enquiries. Automatic notifications would mean less duplication of emails and phone calls from the sales team to the client. Consequently, Value Stream Mapping helped the company to standardise their processes.
- All sales and engineering documentation and customer contact are contained in an online format. This is accessible to all relevant staff.
- The Sales Team have now provided mandatory pre-defined information .
- The Installation Team now manage the installation dates with the client.
- Each Project Owner drives the team meetings. In addition, these meetings only focus on the issues requiring support.
- By analysing their value stream map, the company now have a sales order process. It is easy to follow and more customer-focused. Finally, it gives more responsibility to the individual team members.
Are you interested in applying Lean thinking to your business and putting these ideas into practice?
Contact us for a free discovery call or to enquire about our next Lean Business Training programme.
We hope you enjoyed reading about our client Storage Systems and how they are reaping the benefits of Value Stream Mapping. You may also be interested in reading about our insights on our Lean Approach to Business Improvement and McNally Joinery: Transforming the Business One Step at a Time. Read all our blogs to stay up-to-date with Lean news, events and our insights. Please connect with us on Linkedin and Twitter.
