What Is Value Stream Mapping? (VSM)

August 4, 2021 - 10 min read

Maria Waida

Even though organization processes are set up to improve productivity and results, value stream mapping is the key to streamlining everything once you’re in the thick of it. Value stream mapping is used to uncover the people, processes, and effort it takes to reach an outcome. Understanding where your processes can improve means finding better solutions for customers and ultimately improving their experiences.

A strong understanding of where your processes work (and where they don’t) is becoming even more important these days, especially if your company aims to:

Expand production
Improve client relationships
Offer new products and/or services
Solve resource management problems without spending too much
Make the most out of their in-house talent
Collaborate effectively with suppliers and contractors

Operations, procedures, and workflows need to be monitored consistently to perform consistently. However, many product managers still see their project management style as static when making teamwide improvements. That couldn’t be further from the truth. Just like your offerings, your big picture and day-to-day processes always have room for improvement, and a value stream map is the best way to help find those areas.

Additionally, while it is true that everyone follows a team's prescribed process, the reality is that most of the time, processes are modified or simplified by individuals or teams. Using the value stream mapping approach, everyone from software engineers and developers to project managers can refresh their knowledge of how workflows can or should go.

Now sure where to begin? In this detailed guide to value stream mapping, you’ll discover:

The definition of value stream mapping
The advantages of value stream mapping
What waste is in processes and the seven different types of process waste you need to know
A list of components every value stream map should have
Step-by-step instructions for how to conduct a value stream map
Tips for analyzing your findings and getting actionable insights

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What is value stream mapping?

It might sound complicated, but a value stream map is really just a visual tool to help deliver complex information in a more digestible way. It usually includes all the critical steps in a product creation or service process, identifying the time and work needed during each stage.

Why would you need a value stream map? Organizations often use them to quantify the information that’s part of a planned process. A properly thought-out VSM is very useful in determining if a project’s plan is more complex than necessary. It might also help identify areas where it could be counterproductive, slowing or even stopping project delivery. As a result, you can then plan to address those issues or optimize the process to achieve your goals in a faster, more smooth way.

To create a value stream map, you may choose to use a value chain diagram. A value chain diagram shows the various activities related to a material product or service. These are the activities that are typically referred to as "value streams." So when a value stream map is created, the information may come from here.

The goal of mapping a value stream is to identify and reduce waste in that stream. Doing so can deliver efficiency enhancement across the process. Think of it as a summarized version of your workflow from start to finish. It will be used to define, assess, and improve existing processes so that teams can create a better customer experience.

The role of technology in value stream analysis

The advent of digital transformation has significantly influenced how businesses conduct value stream mapping (VSM). The integration of advanced software tools has automated the process, making it more efficient, accurate, and faster. These tools can track and analyze data in real time, offering valuable insights that help businesses identify and eliminate waste, streamline processes, and enhance customer value.

Several types of software tools can be leveraged in VSM. Process mapping software, such as Microsoft Visio, Lucidchart, or SmartDraw, allows businesses to create visual representations of their workflows, making it easier to identify areas for improvement.

Powerful project management platforms such as Wrike can also play a crucial role in VSM. It facilitates task assignment, progress tracking, and communication among team members, fostering collaboration and ensuring that the process improvements identified through VSM are effectively implemented. It also serves as a single source of truth, a vital element in any value stream analysis.

Data analysis tools, like Tableau, Excel, or Power BI, help in analyzing and visualizing the data collected during the VSM process. These tools can highlight trends, patterns, and anomalies in the data, providing a deeper understanding of the process. These are all easily integrated with Wrike, meaning you can work seamlessly across all the tools to keep work flowing smoothly.

Artificial intelligence (AI) and machine learning (ML) technologies are also finding their place in VSM. These technologies can automate data collection and analysis, predict future trends, and recommend process improvements, making VSM more proactive rather than reactive.

In this era of efficiency, leveraging technology in value stream mapping is no longer an option, but a necessity. As businesses strive to improve efficiency and customer value, the role of technology in VSM will continue to grow.

What kinds of waste can you use value stream mapping to curb?

There are seven common types of waste that value stream mapping solves for:

Defects

Defects are defined as waste created by unsellable or refunded goods and services. These can be costly both in terms of revenue and brand reputation. Spotting defects ahead of time through value stream mapping is a realistic preventative measure any company can do.

Overproduction

Too much of a good or service can cause a ripple effect, leading to production delays, quality problems, and wasted time.

Waiting

This means goods are not being transported or handled on time. This term also refers to an overly complex process or procedure that can be easily manipulated. One example of this is unsafe production.

You may also hear waiting to be referred to as a non-value-adding operation. This means any action or activity considered necessary to sustain a business, even though it does not contribute to its customer requirements.

Underutilized Talent

Underutilized talent refers to team members who have extra time in their schedule for tasks that aren't being used. This can also mean assigning team members with special skills or knowledge to work that doesn’t make use of their abilities.

Transportation

Unnecessarily moving physical goods and supplies from one place to another is an example of controllable transportation waste.

Inventory

Overproduction refers to an accumulation of inventory that has become too heavy or created a burden in some way. This can result in increased lead times, difficulty identifying problems, or significant storage costs.

Motion

Similar to transportation, motion covers wasted resources that go from Point A to Point B, only in this case, it refers to people and not objects.

Additional Processing

Additional processing refers to overworking a certain area, whether that’s extra steps or using too high-quality output for unnecessary aspects of the product or service that don’t have a proportionate effect on the end customer experience.

A successful operation involves identifying and correcting waste. When these areas of waste are identified, teams can solve these issues and create more productive processes.

Types of value stream maps

VSMs are used across industries like manufacturing, healthcare, logistics, and software development. They help analyze and design flows within lean environments. There are two primary types: current state and future state maps.

The current state map, created first, provides a snapshot of existing processes by observing and documenting the flow of information and materials. The future state map envisions the desired process flow, building on the insights from the current state map.

Three key sections make up a VSM: information flow, product flow, and time ladder.

Information flow: This section visualizes the communication process, including involved stakeholders such as release managers, product managers, team leads, or client groups. It outlines the communication tools used and the flow of information among stakeholders.

Product flow: This outlines the processes, their corresponding teams, and cycle and setup times. It presents the processes from left to right, linking the beginning and endpoints to the relevant stakeholders in the information flow section.

Time ladder: This represents the production lead and processing time. Days and hours are represented by high and low horizontal lines, respectively, connected by vertical lines to create a continuous timeline. A summary of the total cycle and setup times may be included for reference.

What are the benefits of value stream mapping?

Mapping a value stream helps identify areas of waste while also uncovering knowledge gaps, improving communication, and making collaboration easier. But it’s the end result that is most important: a renewed focus on the customer.

Identify waste

For example, when a project gets handed off from one team to another, it's important that all relevant knowledge and resources go to the other team. If something goes wrong, you don’t want the new team to waste time reinventing the wheel. With value stream mapping, you can identify waste and minimize it before issues come up.

Uncover knowledge gaps

There may be errors in the tools you use or the time it takes to complete a certain project phase. When information is represented visually, it makes it easier for C-level executives to assess the real versus imagined process labor involved. It’s also a great way to see who is or is not in the loop.

Improve communication

A value stream map helps identify gaps in communication across teams and departments. It also defines the flow of communication. This is helpful when working with third parties and vendors since information sharing is especially important in a successful project plan.

Easier collaboration

Along those same lines, a VSM can help managers, clients, stakeholders, and team members better understand everyone’s role in the project. It also defines each major process and the expectations around effort. Having one neat summary of all this information in a visual format makes it easier to collaborate effectively since everyone is on the same page.

Renewed focus

Your primary focus should always be on the customer. But with so many teams and moving parts, it can be hard to keep that focus long-term, especially during busy seasons. This is why value stream mapping is so important. It cuts through the noise to streamline the steps between ideation and actually helping people.

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How to conduct a value stream map

The start and endpoints of a mapping exercise can vary depending on your goals. A value stream map can cover operations for an entire department. But it can also drill down on specifics. For example, each individual product or service can have its own value stream map. With all of that in mind, here are the essential steps you can use to conduct a value stream map.

Step 1: Gather data

Mapping a process involves gathering information to identify its various stages and procedures. This is the initial step in developing a process activity map.

Step 2: Identify business value

List out the components of the product or service that bring value to your customer. Rank them in order of importance. This provides a foundation for business decisions while also giving your team a strong starting point for your value stream map.

Step 3: Assign the project

Determine who will lead the project and see it from start to finish. This person will act as a point for related communications. They’ll also draft and revise the value map itself. You’ll also want to build a team that will be responsible for each individual process. A VSM can also communicate where their processes fit into the bigger picture.

Step 4: Define the issue

The point of creating a value stream map is to solve a problem. But you can’t solve a problem if you don’t understand what it is. Again, keep your focus on the customer. Ask your team what the issue looks like from your audience’s perspective, then go from there.

Step 5: Create a goal

Consider what you’re trying to solve, what the issue may be, and what a realistic solution looks like. From there, you can focus your VSM on a big picture process or hone in on one specific process within the greater project landscape.

Step 6: Determine scope

Before you start working on a map, make sure that you know what problems you cannot solve and what solutions you need to implement before taking further action.

Step 7: Plan it out

Get started mapping out your process steps and timeline. This will help you identify areas of improvement and will also help you improve your lead time.

Step 8: Draft the map

Use a document tool or a value stream mapping generator to visualize your data points. Keep descriptions short but clear. Try color-coding to further divide the three major sections. And be sure to call out details that are unique to your project in the side margins— have your team add their thoughts too to make it collaborative.

Step 9: Get feedback

Share your VSM with your team. Ask them where they see potential stumbling blocks. Also, be sure to get stakeholders involved at this stage if they aren’t already. They may have preferences that clash with your productivity strategy. If that’s the case, sharing the value stream mapping draft with them can visually communicate the differences in a way that may shift their perspective.

Step 10: Finalize and implement

Once everyone has signed on to the draft, it’s time to polish up any leftover notes and finalize. Share it with the group, along with a short bulleted list of any changes made between the last draft and the final one.

How do you conduct a value stream map analysis?

Value stream analysis begins with understanding the current state of your organization, identifying weaknesses and opportunities for lean process improvement. This baseline can help gauge efficiency across different levels of detail.

Some start with a clear goal, working towards it from a known threshold. Others focus on the end: the customer. With a customer-centric goal, it's simpler to assess the current state VSM and formulate the future state VSM to reach the optimal outcome.

The current state VSM helps identify waste, bottlenecks, and roadblocks. Following this, a target state VSM is developed, showcasing the prioritized value stream. Spot the differences between the two to find improvement areas, which could involve procedure changes, automation adoption, or additional support.

These improvement steps should be turned into an actionable product roadmap in your project management software, assigning tasks to relevant parties with due dates and an overall timeline to ensure accountability.

Remember, the aim is continuous process improvement. VSM should be a regular practice, not a one-off project. Consistent process establishment and monitoring are integral to successful VSM strategies, potentially scheduling this project to recur monthly or quarterly according to your needs and bandwidth

Conclusion

The goal of every company is to develop a culture that enables teams to provide the best possible products, services, and experiences to customers. Once you have full visibility into your processes, your entire organization can streamline limited project resource management and operations.

Interested in organizing your next value stream mapping project? Use Wrike as your one source of truth for task management, data capturing, and team collaboration to greatly improve all your business processes. Start your free trial today.

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Maria Waida

Maria is a freelance content writer who specializes in blogging and other marketing materials for enterprise software businesses.

#Business Process Management #Professional Services

Productivity 10 min read

What You Need to Know About Work Order Management

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Generally speaking, a work order includes a description of the job, with cost estimates that include labor, materials, and other applicable fees. Special instructions or other agreed-upon terms may also be included depending on the type of work, along with customer information for invoicing purposes. These documents are useful in scheduling and assigning work and for managing resources and deploying them to execute the work. You may be most familiar with work orders for maintenance requests — think about when you’ve needed a maintenance service, such as work completed by a mechanic on your car. But work orders come in handy for other industries, especially for facility management, maintenance technician requests, computer services, and ultimately any other work completed by general contractors. Who receives work orders? Once a work order gets created, whether by hand or through an automated system, it gets assigned to a technician or contractor who will be executing the work. The person or team responsible for completing the job receives a work order, accepts it, and then schedules or assigns the job out as needed. Using maintenance requests as an example, a technician generally receives work orders from a maintenance supervisor or manager. This is how work gets assigned to the right people. Once assigned, the technician can prioritize the work order against their current list of requests. In some cases, the work order might not be sent outside of the organization if the request was created internally and is going to be fulfilled by someone with the organization. Think of the IT team as an example. Perhaps an employee needs assistance with their work equipment that the IT department can provide. In this case, your organization should define who should be responsible for receiving work orders and assigning them out. Are there different types of work orders? Not all work orders are the same or serve the same purpose, and there are a few different ways to think about work orders based on the job that needs completing. Let’s break down some of the types of work orders you might encounter based on the need. But keep in mind, work orders can be flexible based on the industry and type of work. Where is the work coming from? Internal work order: The request originated within the organization and will also get assigned to someone within the organization. Your contractor, in this instance, is another direct employee rather than an external contractor. Internal resource planning is key for this type of work order. External work order: The request originated outside of the organization. If the request originated outside of the organization, you may or may not be aware of the issue beforehand. Was the problem planned for? Planned work order: The work was planned for and may deal with preventative maintenance or a recurring schedule of work. Routine maintenance checks in the office, such as testing fire alarms, would appear on planned work orders. Unplanned work order: The work was unexpected or unknown in advance. In these instances, we can think about things like a laptop crashing and needing repairs or replacement. How is the work going to be scheduled? Manual work order: As the title suggests, this type of work order is scheduled manually, often following a work request. This might require making a phone call or reaching out via email to set up a timeframe to complete the work. Automatic work order: These work orders can be automatically scheduled using work order software. If you know when the next work order will need to be planned or collect data that could indicate that it’s time for another work order to be placed, scheduling software can take the manual scheduling off your hands. Free work order template Work orders don’t need to be overly complex. In fact, keeping your work order simple and straightforward is the best way to go. So, what should you include in your work order? Here are the nuts and bolts sections that an effective work order needs. Company contact information: All work orders should include the company name, address, phone number, email address, and other critical contact information. This is especially important if your work order will be sent to an external contractor. Work order number and title: Designate a unique number to assign to the work order. This is key for organizational and reference purposes. You can also add a title for an added layer of description. Key dates: Include all of the dates associated with the work — meaning when the work is expected to start, finish, and space for the actual completion date when the work order is closed out. This helps prevent deadline issues or confusion about when work should be completed by. Priority level: When handling multiple work orders, assigning a priority level can help determine which contractor work orders take precedence over or have dependencies on others. Setting a priority can be helpful for the contractor assigned to the work too. They’ll need to know if your request is urgent, and they should bump your work order to the top of their to-do list. Who is performing the work: Name the assignee, vendor, or internal team member responsible for finishing the job. Job description: Arguably, the most important part of your work order is the description of the job. Lay it all out in this section. Describe the work that needs to be done, requirements needed to complete the job, materials required, and the total cost. Don’t forget to add in labor charges, taxes, and fees. You can also include billing and payment information as you see fit for invoicing purposes. Location-related details: If applicable, include the location where the contractor or vendor should complete the work. Perhaps the work needs to happen in a specific office space, for example. Include the office number to ensure the work occurs in the right place. Work order best practices Work order management can be inefficient and ineffective if the right processes and systems aren’t in place. From how to organize work orders to prioritizing requests accordingly and everything in between — establishing work order best practices ensures you’re setting your team up for ongoing success. Here are some best practices to keep in mind when building out your work order processes in your business. 1. Designate approving authorities for various types of work orders It’s important to identify staff members who can approve work orders and for all team members to have a clear understanding of who the approving authorities are. Especially for contractor work being completed by an outside vendor, having approving authorities in place can help prevent bottlenecks in work not being completed on time. 2. Establish priority definitions for your work orders and categorize them accordingly Work order prioritization helps ensure that any critical issues are taken care of prior to any other work, preventing them from getting lost in a backlog. If your organization handles a lot of internal work orders, prioritizing these requests will also allow you to guide your team’s workload and allow you to better manage your internal resources. 3. Assign tasks to appropriate team members If you’re pushing work orders through your organization and your team is fulfilling requests, be mindful when assigning the work orders out. Learn and know your team’s strengths and weaknesses so that you can use their capabilities to your advantage, making the entire work order process more seamless. 4. Organize all of your work orders for quick reference Once you close your work order, it should be stored with other files in an organized system. Maybe you store your work orders by request type, vendor name, or by month of completion. No matter what method you choose, ensure that all work orders are closed out and stored accordingly. 5. Automate your work orders to reduce human errors and improve efficiencies Managing work orders the old-fashioned way on paper and spreadsheets leaves room for human error and inefficiencies. Centralizing the entire process using work order software or a work order management system helps ensure that your team is highly productive, efficient, and accurate. What to look for in a work order management system Gone are the days of traditional work orders. Written requests on paper are subject to getting lost or misfiled. Spreadsheets can be helpful, but they still require a great deal of manual entry and aren’t always ideal for moving quickly. What’s a work order management system, and how can it help? Put simply, it’s software that can help you organize your work orders and streamline processes for your teams. Known for enhancing operational practices, work order management systems are finding their place within organizations. Research suggests that the work order management systems market is expected to reach $836 million in 2026 as the demand for these systems continues to increase. These systems vary in capability, which means you can choose one that works best for you and your organization. Not sure where to start? Here are a few things to think about when selecting a work order management system. Is the system easy to use? Remember that the purpose of implementing a work order management system is to streamline processes and create efficiencies, which means the system should be user-friendly. You want to manage work orders with a few simple clicks, not a lengthy process that will bog your team down. What information are you looking to house in your work order management system? Clearly define your goals and expectations of the system before you begin your search. Know what your non-negotiables are, such as having the ability to track all work orders, no matter what type. Perhaps you’re looking to run certain kinds of reports. Specific requirements identification will set you on the right track to finding the best system for you and your team. How necessary are customization and flexibility for you and your team? No two organizations manage and organize work orders in the same way, and no two work order management systems are identical either. There are a variety of systems available, and some come with more customization and feature options than others. Consider your short and long-term plans to determine how flexible a system you need to fit your team’s current needs and potential future needs. What’s your budget? Understanding all costs associated with a work order management system will help you determine whether it falls in your budget or not. Learn about the cost to purchase the system, whether there are individual licensing charges, training fees, support costs, and any additional monetary considerations that need to be accounted for. It’s important to know who will be using the system now and how that might grow and affect future costs. Understand the ROI of implementing a system versus manual work to manage the work orders. How to organize your work orders with Wrike For teams that are looking for a work order management software that is flexible and easy-to-use, Wrike is a great option for streamlining and organizing processes. Wrike makes it easy to set up request forms that both internal and external teams can use to submit project or work requests. Those forms are easily customizable so that you can get all of the information you need. The best part? Wrike can automatically create a templatized project from that request form, meaning that you and your team can spend less time understanding the work request or order — and more time working. R

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Root Cause Analysis: Definition, Benefits, and Templates

What is root cause analysis? Discover how to use root cause analysis tools to find and address major roadblocks and achieve stronger outcomes.

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What Is an Information Silo?

According to CMS Wire, workers, on average, spend 36% of their day looking for and consolidating information. But 44% of the time, they can't find the information. This wasted time and effort are caused by information silos. Information silos are costly, but they are also fixable. Although they’re often thought of as unavoidable, the truth is solving them can lead to more productivity, improved work culture, and better use of resources. Keep reading to learn more about information silos and why people such as Steve Jobs and Elon Musk chose to ban them from their companies. What is an information silo? Silo is a management term that has been around for many years. It is often used to describe a lack of organizational cohesion. This issue has become a recurring theme in most organizations. Many executives may dismiss their department's shortcomings as mere department inefficiencies. They may also dismiss the importance of cross-functional solutions and the need for employee training. This perspective is often referred to as a silo mentality. A silo mentality is a mindset that prevents certain departments or sectors from sharing information with their peers. It can lead to decreased efficiency and employee morale. The silo mindset does not appear to be an accident. It is, however, a reflection of the complex dynamics within an organization. One common misconception is that the silo mentality is the root cause of these behaviors. In reality, it is the result of assumptions that are based on flawed logic and correctable issues that are often wrongly perceived as irreversible. It’s the leadership team’s job to step up and create long-term solutions that are sustainable and can be easily implemented. What are the problems associated with information silos? A silo mentality occurs when department or team communication is lacking, and there are no common tasks. In this scenario, the team derives its power and status from its group. They are less likely to collaborate with other teams or departments if their efforts are not shared. It is the owner's responsibility to create a culture that discourages silos within their business. They set a tone and values for their organization and approve employees seeking to maintain a silo mentality. If they do not, they run the risk of: Limiting collaboration When employees aren’t clued in on bigger picture ideas and information, they often operate in a bubble. This individualism leads to issues connecting with goals. It also limits an employee’s ability to see beyond their own role and how it affects others. Decreasing communication Information silos hold back important facts, data, and decisions from key employees. Not only does this make projects more confusing, but it can also dissuade employees from sharing valuable feedback. Creating hostility Miscommunications and lack of collaboration can lead to interpersonal conflict among colleagues. When someone feels left out or makes a mistake because they lack information they believe they should have access to, it breeds a culture of contempt. This is yet another reason why communication management skills matter among leadership. Inhibiting creativity Information is empowering. It can inform decision-making, but it can also spark creativity. Without the right information, teams may feel as if they can’t think outside the box or risk making choices without the right facts in front of them. Derailing progress It is not uncommon to need a large amount of ramp up to keep the momentum going. When teams waste time looking for missing information, waiting on access approval, and flipping through virtual files, their inertia is taken away. Lost data Knowledge is power. It is the key factor that enables a team to thrive and be productive. When important data is lost, teams lose that power and consequently the ability to perform at a high level. Examples of information silos Missing, out of date, or messy data in a CRM A broken integration between one or more tools Forgetting to loop key decision-makers into important email conversations Using too many tools at once, so information is spread out and hard to look for Slower quote-to-cash workflows as a result of process complexity How to break down information silos with Wrike A strong leadership team is built on the understanding of the company’s long-term goals and key initiatives. It must also have the ability to communicate effectively with teams and motivate them to reach their full potential. Once the leadership team has agreed on a unified vision, it is important that they identify the root issues that may be causing silos to form. This team then needs to work with the other members of the organization to develop a strategy and implement it. That’s where Wrike comes in. Wrike is a project management tool that simplifies the process of communicating and organizing important information. Here’s how: Create structure The structure of a business can foster a silo mentality if employees do not get along with one another. Wrike uses visual tools for project communication such as color-coding, task owner photos next to assignments, and Gantt charts that lay out the entire project grid for maximum visibility. Maximize collaboration To maximize collaboration, management should establish a culture where meetings are regularly scheduled — yet project planning is designed to reduce unnecessary meetings. Wrike solves these issues with a fully transparent project planning dashboard that is personalized for individual users and creates a single source of truth for the entire organization. Measure progress Once a common goal has been established, it is important that it is measured accurately. Leaders must also establish a timeframe to complete it. This goal should also be communicated to all employees. Wrike shows progress across all tasks simultaneously so team members can see where they stack up. It also shows them how their work factors into big-picture goals. Establish workflows The owner or manager sets the rules and routines that define the organization's structure. This process helps preserve the culture while ensuring that the rules are followed. Wrike allows managers to create repeatable workflows that make rules and routines easy to follow for project phases and tasks. Takeaway A business owner must develop strategies that help employees understand what they’re working to achieve. They also need to establish an environment where employees can collaborate and communicate. Wrike helps support these initiatives and more through advanced features that foster productivity and keep everyone on the same page at all times. Start your free trial today.

What Is Value Stream Mapping? (VSM)

What is value stream mapping?

The role of technology in value stream analysis

What kinds of waste can you use value stream mapping to curb?

Defects

Overproduction

Waiting

Underutilized Talent

Transportation

Inventory

Motion

Additional Processing

What are the benefits of value stream mapping?

Identify waste

Uncover knowledge gaps

Improve communication

Easier collaboration

Renewed focus

How to conduct a value stream map

Step 1: Gather data

Step 2: Identify business value

Step 3: Assign the project

Step 4: Define the issue

Step 5: Create a goal

Step 6: Determine scope

Step 7: Plan it out

Step 8: Draft the map

Step 9: Get feedback

Step 10: Finalize and implement

How do you conduct a value stream map analysis?

Conclusion

Maria Waida

Related articles

What You Need to Know About Work Order Management

Root Cause Analysis: Definition, Benefits, and Templates

What Is an Information Silo?

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