Lean Transformation
02/07/2024
Tempo di lettura: 9 minutes, 1 second

New perspectives for old challenges: implementing the Value Stream Mapping

I Principi Fondamentali del Value Stream Mapping

Dealing with the complexity of day-to-day operations in today’s business environment has become increasingly challenging. Companies, regardless of sector, are facing challenges related to the need for constant growth, increased operational efficiency and resource management. Traditionally, these challenges raise the question of being undersized in terms of resources and space, leading to immediate solutions such as hiring new resources and requiring more space. The same thing happens with spaces, the more we have available the more we want.
However, such approaches often lead to significant inefficiencies and waste.

Business waste: a widespread problem

Waste is present wherever there is a process, both in production and in offices. It is often taken for granted that you know the entire workflow in detail and already work in the best way (evergreen motto “I always did this”).
One often relies on one or two more experienced people, who have been working in the company for many years, and follows their suggestions, without listening to other employees/ functions: it works in silos, without taking into account the whole process and interactions between functions.
However, without a complete view of the process and interactions between functions, it is easy to miss the hidden waste, which may include:

  • More people than needed
  • Unbalanced workloads
  • Need much more space than needed
  • Less participative team (classic attenuant “if nobody listens to me because I have to waste time saying what I think?!”)
  • No operational solutions to real problems

Economic Sustainability in Times of Crisis: The Limits of Traditional Models

Value Stream Mapping helps companies identify and reduce waste, promoting more sustainable production. The current economic situation, with rising costs of raw materials and services, makes it even more urgent to adopt effective techniques (other than the discount demanded from suppliers) to reduce waste and ensure business survival.

Traditional cost-cutting tactics, such as requiring discounts from suppliers and increasing operational capacity, are no longer effective or applicable. As we know, it also happens that to ensure the survival of our suppliers, which are fundamental for us, we are forced to maintain the same prices or even increase them.

It is therefore necessary to change perspective and the survival of companies requires a thorough review of processes and knowing how to recognize waste within any process becomes more important than ever.

The Fundamental Principles of Value Stream Mapping

  1. Identification of the Value Stream: Understand and outline all the steps necessary to provide a product or service.
  2. Current Value Flow Mapping: Analyze the current state of the process to identify waste.
  3. Creating the Future Value Stream: Design an optimized value stream, eliminating identified waste.

Why VSM is Crucial for Modern Businesses

In an age where efficiency is inextricably linked to the ability to manage human and financial resources responsibly, Value Stream Mapping proves to be a guiding light for future-oriented companies. Its application is not limited to production, but extends to administrative and management processes, helping to create a more efficient and sustainable working environment.

Waste reduction and efficiency improvement

Through the active involvement of the team, Value Stream Mapping allows to generate a complete mapping of production flows to identify bottlenecks, recognize waste and equip themselves with tools for their elimination, and also promotes a culture of continuous improvement and shared responsibility.

Human sustainability is a central aspect of the Value Stream Mapping process. By involving the whole team, without neglecting the social aspects of interactions between people, Value Stream Mapping helps to create an environment where everyone sees the benefits of an optimized process, which includes:

  1. Clear and detailed view of the current process
  2. Detail of an ideal future state
  3. Detailed action plan to reduce/eliminate waste
  4. Real knowledge of the process by the whole team

Two famous case studies

Nike

Nike has implemented Value Stream Mapping in its production processes to improve sustainability and efficiency. Through Value Stream Mapping, Nike has been able to identify areas of improvement in its workflows, reducing production times and improving product quality. This has led to a 20% reduction in waste and better use of raw materials. In addition, the active involvement of the team has fostered a culture of continuous improvement and increased employee engagement.
(Harvard Business Review, 2020 “How Nike Embraces Continuous Improvement to Drive Sustainability.”)

Bosch

Bosch has adopted Value Stream Mapping to optimize its production processes and promote sustainability. Through Value Stream Mapping, Bosch has been able to identify inefficiencies in its processes and implement changes that have led to a 30% reduction in lead times and a 25% decrease in operating costs. This has allowed the company to significantly reduce waste while improving operational efficiency and supporting more sustainable production. (Bosch Annual Report, 2020 “Sustainable Operations through Lean Practices.”)

These examples demonstrate how Value Stream Mapping can support sustainable production, leading to significant improvements in efficiency, waste reduction and environmental sustainability.

Value Stream Mapping benefits for sustainability

In conclusion, embracing Value Stream Mapping means not only addressing operational challenges but also adopting a mindset that values sustainability and innovation. Transforming business processes through active team involvement will not only improve efficiency, but create a more sustainable work environment.

According to a study by the World Economic Forum (2020) (source: “Lean Manufacturing: The Key to Sustainable Success.”), companies that have implemented Lean methodologies, including Value Stream Mapping, have seen a 30% reduction in waste and 25% improvement in operational efficiency. These companies have also seen a 20% increase in employee engagement, thanks to the culture of continuous improvement promoted by Value Stream Mapping.

A report from the Harvard Business Review (2021) (source: “Sustainability Through Lean Practices.”) shows that organizations adopting Value Stream Mapping are 40% more likely to achieve long-term sustainability goals. This is because Value Stream Mapping allows you to identify and eliminate inefficiencies that not only reduce operating costs, but also minimize environmental impact.

Companies that adopt Lean practices, including Value Stream Mapping, – according to the annual report of the Lean Enterprise Institute (2020) (source: “Annual Report on Lean Practices.”) – are better equipped to address environmental and social challenges, with 85% of them reporting significant improvements in resource management and social responsibility. So a company embracing Value Stream Mapping is embarking on a journey towards a more conscious and sustainable business future.

Articolo a cura di:

Danilo Pappa

Manager

In more than 20 years of activity, he has acquired solid technical, production, organizational and management experience thanks to a career developed in national and multinational companies active in the high technology sector (aeronautics and automotive) and logistics.
He has collaborated and carried out international projects with experts such as Junji Numata, a Japanese sensei, formerly of Toyota.
His technical expertise ranges from Supply Chain to Manufacturing&Quality, and Purchasing with application of tools of the Toyota Production System and World Class Manufacturing.

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