This document provides guidance on creating a value stream map, which is a tool used to analyze and improve the flow of materials and information required to produce a product or service. It includes icons to represent different types of flows, such as physical transport or electronic communication. Process boxes are used to identify each step in the value stream and can include data on topics like lead time, cycle time and inventory levels. The 6 steps to creating a value stream map are outlined, beginning with identifying process steps and relationships, then collecting data, identifying opportunities for improvement, and calculating metrics to analyze the system. Key definitions are also provided for terms like takt time, lead time, cycle time and utilization.

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Value Stream Mapping
Movement of information or
materials
Make arrows ‘zigzag’ if flow
is electronic
Place an envelope on
the arrow for an e-mail
Place a telephone on the arrow
for a phone call
Place a truck on the arrow to
indicate a physical transport
Icons & Arrows
DATA BOX
Used to store key data regarding the
value stream.
Data Type Value Unit
(Goes under the relevant
customer or process box)
OPERATOR ICON
Use this to show the number of
people involved
(Goes in Process Box)
x4
PROCESS BOX
Name of Process
Name
(Always goes in top right of
map)
STAR BURSTS
Description of
improvement
area or waste
Use these to highlight areas for
improvement or suggestions
INVENTORY
TRIANGLE
?
Used to show
inventory Level.
Key Calculation & Definitions
6 Steps to creating a Value Stream Map
Identify process
steps and
relationships
Select Process
Metrics
Collect Data and
complete Data
boxes
Add
Opportunities
and Wastes
Calculate System
summary metrics
Identify
Customer
Demand
Takt Time (TT) =
Time Available
Customer Demand
Amount of time in which one good or
service must be produced in order to
meet the demand of the customer.
=
Lead Time
(LT)
The period of time between the initiation of a
process and the completion of that process.
Little's Law provides an equation for relating
Lead Time, Work-in-Process (WIP) and
Average Completion Rate (ACR (Same as
DOR) for any process.
=
WIP (units)
DOR
How often a product or service should
be completed or ‘drop off the end of the
line’.
Cycle Time
No. of People
=
Drop Off
Rate (DOR)
=
Number of people required to perform
the process or each step.
Cycle Time
Takt Time
=
Full Time
Equivalent (FTE)
=
Cycle Time (CT) =
The actual time it takes to complete
a process or activity.
Effective Time
Available (ETA)
The amount of time allowed for a
process less breaks, etc.=
Customer
Demand (D)
The amount of a product or
service the customer wants.=
Utilisation (UT) =
Theoretical FTE
Actual FTE
The build up of queues is dependant on
the level of utilisation. If utilisation goes
above 70%/80% queues are highly likely.
=
=
CUSTOMER
Total Process = Y
time
Total Lead = X
timeValue-adding time
Lead time through
the process
10 secs
200 secs
TIMELINE
The Timeline is used to communicate Lead Time and Value
Added Time on the VSM.
Timeline is drawn under the process boxes to compile the total
process lean time and value added time analysis.