Value Stream Mapping is a lean management tool used to visualize and analyze the steps and activities involved in delivering a product or service to a customer, with the aim of identifying and eliminating waste, improving efficiency, and increasing customer value.

1. Value Stream Mapping
SUMMARY OF LEARNINGS IN CLASS BY ~ANAND PANDEY
~by Mohit Budhiraja

2. Agenda
● Introduction
● Benefits of Value Stream Mapping
● The 8 waste of lean
● Calculating Efficiency at different workflow stage
● Value Stream Mapping Process
● Current State Mapping
● Future State Mapping
● Gap Analysis
● Implementing Value Stream Mapping
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3. Introduction: Value Stream Mapping, Definition, Purpose
● Value Stream Mapping: Value Stream Mapping is a
lean management tool used to visualize and analyze
the steps and activities involved in delivering a
product or service to a customer, with the aim of
identifying and eliminating waste, improving
efficiency, and increasing customer value.
● Definition: Value Stream Mapping is a visual
representation of the flow of materials and
information through the process, from the initial
order to delivery, with a focus on identifying value-
adding and non-value-adding activities.
● Purpose: The purpose of Value Stream Mapping is to
provide a holistic view of the entire process, enabling
stakeholders to understand the current state, envision
the future state, and identify opportunities for
improvement.
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Benefits of Value Stream Mapping: Identifying Waste, Improving
Efficiency, Increasing Customer Value
● Identifying Waste: Value Stream Mapping helps to
uncover and eliminate various forms of waste,
including overproduction, waiting times, unnecessary
movement, and defects, leading to cost reduction and
improved resource utilization.
● Improving Efficiency: By visualizing the production
process, Value Stream Mapping allows organizations
to identify and streamline inefficient activities, reduce
lead times, and optimize resource allocation, resulting
in improved overall operational efficiency.
● Increasing Customer Value: Value Stream Mapping
enables organizations to focus on value-adding
activities and prioritize customer satisfaction, leading
to the delivery of higher quality products or services
with a reduced time-to-market, enhancing customer
value and brand reputation.
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The 8 Waste of Lean
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Calculating Efficiency at different workflow stage
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• Lead Time: is the total time from initiation
to completion.
• Cycle Time: is the total time for one cycle
of a process, including both active and
wait times.
• Wait Time: is the time an item spends
waiting between activities.
• Touch Time: is the time spent actively
working on a task.
Example: Lets take an example of prioritization
state in our ALM:
Lead Time : 5 days or 40 hours
Actual productive time or touch time: 2 hours
Wait time or non-productive time: 4 days 12 hours
% efficiency: Touch time/ lead time (2/40)%
% effectiveness : 7/10% considering out of 10 7
stories are prioritized

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Value Stream Mapping Process
● Current State Mapping: Analyzing
the existing processes and
identifying value-adding and non-
value-adding activities
● Future State Mapping: Envisioning
the ideal process flow and
identifying improvement
opportunities
● Gap Analysis: Identifying gaps
between the current and future
state, prioritizing improvement
areas
Current State Mapping, Future State Mapping, Gap Analysis
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Current State Mapping
● Data Collection: Gathering relevant
information about the current
processes and their performance
metrics
● Process Analysis: Thoroughly
examining the current workflow,
time, and resource utilization
● Value-adding and Non-value-
adding Activities: Distinguishing
activities that directly contribute to
value creation from those that do
not
Data Collection, Process Analysis, Value-adding and Non-value-adding Activities
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Future State Mapping
● Identifying Improvement
Opportunities: Spotting areas for
enhancement and streamlining in
the workflow and processes
● Developing Ideal Process Flow:
Creating a visual representation of
the desired optimized process and
identifying key improvements
Identifying Improvement Opportunities, Developing Ideal Process Flow
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10. Gap Analysis
● Identifying gaps between current and future state: Contrasting the existing
processes with the envisioned future state to highlight discrepancies and areas
needing improvement
● Prioritizing Improvement Areas: Ranking areas of improvement based on their
impact on value, efficiency, and customer satisfaction
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Identifying gaps between current and future state, Prioritizing Improvement Areas

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Implementing Value Stream Mapping
● Engaging Stakeholders: Involving and
collaborating with relevant stakeholders
to gather insights and align on
improvement goals
● Developing Value Stream
Transformation Plan: Creating a detailed
plan that outlines specific actions,
responsibilities, and timelines for
implementing improvements
● Continuous Improvement: Establishing
a culture of ongoing improvement and
adaptation to enhance value stream
processes over time
Engaging Stakeholders, Developing Action Plan, Continuous Improvement
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