Carrying out a value stream map: 5 steps to success

Introduction

A value stream map isn’t complicated – provided you have the right structure. This guide takes you through all five steps of a successful value stream map: from preparation to implementing improvements. Whether you use a traditional paper-based approach or a digital tool such as SimVSM – the basic logic remains the same.

Step 1: Preparation and Process Selection

Before you start, clarify three points:

Which process are you analysing? Select a critical material flow – typically a product’s journey from raw material procurement to delivery. Avoid analysing too many variants at once.

Who should be involved? Involve subject matter experts from the process – production managers, logistics specialists, machine operators. They have the detailed knowledge. Appoint a project manager to coordinate the analysis.

What data do you need? Gather the following in advance: processing times, set-up times, shift schedules, stock levels, target figures. With digital tools, you can often import this data directly; if using paper, note it down on site.

Step 2: Visualise the material flow (current state)

Sketch or model the current state – how does the material actually flow through your process?

Map out the process steps: Include every station, every waiting time, every storage area or queue in the diagram. Use standard symbols: boxes for processes, arrows for material flow, triangles for stock levels.

Record key figures: For each process step: processing time (in minutes/hours), capacity utilisation, number of staff, number of shifts.

Illustrate the flow of information: This is often overlooked – but information also flows through your process. Where are there delays or errors in planning?

Calculate lead time: Add up all processing times and waiting times. This is your baseline measurement.

Step 3: Identify bottlenecks and waste

Now analyse where the process is problematic.

The seven types of waste according to Lean:

• Overproduction (producing more than necessary)
• Waiting times (materials lying around)
• Transport (unnecessary movements)
• Processing errors (poor methods)
• Inventory (holding too much stock)
• Motion (inefficient movements)
• Defects (quality issues)

For each process step, note: Is this a bottleneck? Is there any waste here? Why?

Common findings from practice:

• Long set-up times (mechanical engineering, manufacturing)
• Buffer stocks ahead of bottlenecks (logistics)
• Delays in information flow (planning arrives too late)
• Unused machine capacity
• Too many interfaces between process steps

Step 4: Design the target state

Now design the improved process.

What would you change? Based on the bottlenecks identified in Step 3: Can you combine process steps? Reduce changeover times? Lower stock levels? Speed up the flow of information?

Set realistic targets: Don’t aim to optimise by 50 per cent straight away. Small, incremental improvements are more sustainable. Reducing lead time by 20–30 per cent is a good interim target.

Run through different scenarios: Using digital tools such as SimVSM, you can run through several scenarios. What happens if you run an extra shift? What if you automate a process step? Simulate the outcomes before you spend any money.

Step 5: Implementation and monitoring

The target state is only valuable if it is actually implemented.

Launch a pilot: Don’t change the entire line straight away. Test the improvements first on a single product variant or shift.

Clarify responsibilities: Who is responsible for which measure? By when must it be implemented?

Track key performance indicators: Monitor lead time, stock levels and capacity utilisation on a monthly basis. Has the target been achieved?

Continuous improvement: After 3–6 months: Conduct a new value stream map. Has anything changed? Where have new bottlenecks emerged?

Common mistakes (and how to avoid them)

• Mistake 1: Analysing too many process variants at once. → Focus: one product, one material flow.
• Mistake 2: Not collecting data on the shop floor. → Figures from a desk are often incorrect.
• Mistake 3: The target state is too ambitious. → A 20 per cent improvement is realistic; 50 per cent leads to frustration.
• Mistake 4: Doing nothing after the analysis. → An analysis without implementation is pointless. Set up a project team for implementation.

Next steps

Do you want to carry out your value stream analysis digitally and simulate variants? With SimVSM, you can model the process quickly, run through scenarios and automatically document the results.