Business Process Mapping Tools: Value Stream Mapping
A recommended technique that helps give better output in terms of positive organizational development and efficient value added services in quality, cost and flexibility is widely known as VSM or Value Stream Mapping. One of the most popular Business Process Mapping Tools, it is works very well for a wide variety of business and industries and eliminates waste and ensures effective utilization of all the available resources.
However, VSM like any other equipment must be used judiciously or in simple words applied suitably to make the mapping process valid and comprehensive. It should not be used anywhere and everywhere indiscriminately. Here are some pointers that help avoid the common errors and build an accurate VSM. To start with, a Value Stream defines all the activities needed to bring a raw material or service to the final stage of a finished product that guarantees the customerĀ's satisfaction.
Michael Porter, author of Competitive Advantage: Creating and Sustaining Superior Performance first defined value streams as a clearly defined process or service for any product in a well executed map. Included are parameters like procurement, inbound logistics and other primary activities to support and encourage a competitive advantage.
According to PorterĀ's definition one should clearly identify the product, product family or service first, and then draw up a current map with details from the raw stage to the final stage by eliminating waste and highlighting the production and strategy flowcharts. The final step would be to create a future state of the value stream and implement it. While it is quite impossible to take into account all the disruptions at work that occur in a usual business day, it is essential to take as many observations possible to create an accurate VSM to reap the system-wide benefits of the system. To avoid further problems the observer should follow the complete process and not on a worker and his method, which would be misleading. We should take care to identify the product family so as to follow the right processing path without being confused and produce correct estimates. Besides that, ignoring shared resources and double counting times are the two common mistakes that occur in a VSM thereby rendering it grossly inaccurate. Mapping out the activities in the process with accurate data that is obtained by observations relating down times, cycle times, travel time, inventory processes, flow of strategy, information and communication help develop an accurate change technique in VSM. Such Business Process Mapping Tools eliminate waste in production areas; streamline operations and increasing efficiency by reducing costs and regulating time while improving profitability and customer satisfaction. If all the things mentioned above are taken care of and no mistakes are made, the mapping process can be highly rewarding for a business.
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