Value Stream Mapping in Operations Management: Review

Introduction to Value Stream Mapping

Value stream mapping is considered a lean production tool that relies on process mapping to visualize the movement of products and information in production operations, identify areas of unnecessary waste, and offer possible alternatives for eliminating such waste (Talapatra & Shefa, 2019). The cost of a production unit depends on the time taken for a product to flow through the value stream; as such, value stream mapping is useful in bridging economic and operational understanding to highlight areas where economies of scale can be generated through the eradication of unnecessary costs and increased productivity without increased expenditure (Meredith, 2015). Interest in learning value stream mapping emerged from professional requirements in management to achieve efficiency and effectiveness, and from recognizing where these concepts could be counterproductive to optimal performance.

Annotated Bibliography

Acero, R., Torralba, M., Pérez-Moya, R., & Pozo, J. (2019). Value stream analysis in military logistics: The improvement in the order processing procedure. Applied Sciences, 10(1), 106.

Acero et al. (2019) employ a case study to evaluate value stream analysis applied in military logistic operations, where response time, cost-effectiveness, variety of material references, and demand uncertainty are decisive elements of combat agility and capability. The study employs the DMAIC (define–measure–analyze–improve–control) research method, whose principles align with lean kaizen operations. The article relies on Six Sigma and lean methodologies applied to improve manufacturing and business process operations by minimizing variability through a focus on defects and their causes. Results are presented using value stream design (VSD) and value stream mapping (VSM) tools to improve order processing lead time. While the study effectively discusses the implementation of value systems in a supply chain, the use of advanced technical language limits accessibility for readers who first encounter these concepts.

Andreadis, E., Garza-Reyes, J., & Kumar, V. (2017). Towards a conceptual framework for value stream mapping (VSM) implementation: An investigation of managerial factors. International Journal of Production Research, 55(23), 7073–7095.

Andreadis et al. (2017) investigate how value stream management practices are implemented. The research methodology examines the lean philosophy and the correlations present among its tools. Three research questions and five hypotheses are formulated and tested using Pearson correlation, descriptive statistics, one-way ANOVA, two-sample proportion tests, Tukey pairwise comparison tests, and one-sample t-tests. The authors introduce the concept of soft aspects in lean logistics as essential to implementing value stream practices. Data were collected using questionnaires issued to 168 manufacturers from across the globe. The researchers then develop a conceptual framework that guides the implementation of VSM based on the study results. The article's structure is accessible for readers and applies study results to create a conceptual framework for VSM implementation that introduces learners to strategies for enhancing operations.

Gellad, Z., & Day, T. (2016). What is value stream mapping, and how can it help my practice? American Journal of Gastroenterology, 111(4), 447–448.

This article employs a discursive approach to help readers — assumed to be practitioners interested in implementing VSM in their enterprise — understand VSM concepts. Gellad and Day (2016) illustrate how VSM can be implemented in a gerontological clinic and suggest practical steps to apply it to daily operations. The article evaluates how VSM has been implemented in the healthcare sector to improve the value of care from the patient's perspective. The authors suggest steps a gerontological practice can employ to implement lean operations and discuss material and information flow mapping to ensure the concept is understood, as well as the nature of the teams that should be involved.

Hoffmann, C., Milovanovic, M., Kinghorn, A., Kim, H., Motlhaoleng, K., Martinson, N., & Variava, E. (2018). Value stream mapping to characterize value and waste associated with accessing HIV care in South Africa. PLOS ONE, 13(7), e0201032.

Hoffmann et al. (2018) posit that inefficiency in clinic-level delivery of HIV care services inhibits patient engagement in care. Maintaining engagement for HIV patients is essential to the success of global HIV treatment and prevention. Attrition along the healthcare continuum — from testing positive, to beginning antiretroviral therapy (ART), to achieving an undetectable viral load — has been associated with a high prevalence of HIV in South Africa. The study examines lead time (time spent waiting for a service) and costs incurred during 15 clinic visits in South Africa. The study asserts that a patient-centered approach to care would decrease the burden of care, which aligns with suggestions made by Gellad & Day (2016). The use of the South African context effectively illustrates how efficacy can be realized to ensure the integrity of global HIV programs, given the logistical challenges in the country's healthcare system.

Seth, D., Seth, N., & Dhariwal, P. (2017). Application of value stream mapping (VSM) for lean and cycle time reduction in complex production environments: A case study. Production Planning & Control, 28(5), 398–419.

Seth et al. (2017) argue that implementing VSM using lean-based improvement tools is often challenging in complex environments. The research examines how approximations and simplifications in VSM can be implemented successfully in such circumstances. The article's methodology involves differentiating non-value-adding activities from value-adding activities and determining how each is treated. The study is based on a heavy-duty industrial power transformer production process. The focal finding is that non-compliance with and assumptions about minor VSM concepts are the primary cause of complexity in sophisticated production activities. The article is demonstrative and accessible.

Concept Explanation and Comparison

Seth et al. (2017) employ an exploratory approach to the value stream mapping topic, using a case study to examine its implementation. Meredith (2015) employs a comprehensive discursive approach grounded in the Six Sigma elements upon which value stream mapping is based. Meredith (2015) examines different strategies that can result in value creation in the production line. For example, activities on the value stream fall into three categories: value-added activities, non-value-added but necessary activities, and non-value-added and unnecessary activities. For value-added activities, VSM seeks different ways to realize value more efficiently; for non-value-added but necessary activities, alternative efficient means of accomplishment are identified; and activities that are unnecessary and add no value are eliminated from the production line (Kovács, 2018). The areas of waste common in lean manufacturing are overproduction, inventory, waiting, unnecessary transport, unnecessary processing, unnecessary human motion, and defects. The evaluation process therefore seeks to identify where these wastes arise in an organization's value stream.

Similarly, Seth et al. (2017) identify these categories of activities in the production value stream and apply VSM in both simple and complex production processes. The core practices — from the most minimal to the most significant milestones in implementing lean production — are equally important. Overlooking minor steps in implementing lean Six Sigma principles limits optimal functioning in production operations. Managing these challenges makes it possible for employees to recognize and develop a sense of shared organizational responsibility (Talapatra & Shefa, 2019). The article posits that non-compliance with VSM assumptions and micro-concepts is the primary reason for challenges in implementing VSM in complex environments.

References

Acero, R., Torralba, M., Pérez-Moya, R., & Pozo, J. (2019). Value stream analysis in military logistics: The improvement in the order processing procedure. Applied Sciences, 10(1), 106.

Andreadis, E., Garza-Reyes, J., & Kumar, V. (2017). Towards a conceptual framework for value stream mapping (VSM) implementation: An investigation of managerial factors. International Journal of Production Research, 55(23), 7073–7095.

Gellad, Z., & Day, T. (2016). What is value stream mapping, and how can it help my practice? American Journal of Gastroenterology, 111(4), 447–448. https://doi.org/10.1038/ajg.2016.38

Hoffmann, C., Milovanovic, M., Kinghorn, A., Kim, H., Motlhaoleng, K., Martinson, N., & Variava, E. (2018). Value stream mapping to characterize value and waste associated with accessing HIV care in South Africa. PLOS ONE, 13(7), e0201032. https://doi.org/10.1371/journal.pone.0201032

King James Bible. (2008). Oxford University Press.

Kovács, G. (2018). Methods for efficiency improvement of production and logistic processes. Research Papers Faculty of Materials Science and Technology Slovak University of Technology, 26(42), 55–61. https://doi.org/10.2478/rput-2018-0006

Meredith, J. (2015). Operations and supply chain management for MBAs (6th ed.). Wiley.

Seth, D., Seth, N., & Dhariwal, P. (2017). Application of value stream mapping (VSM) for lean and cycle time reduction in complex production environments: A case study. Production Planning & Control, 28(5), 398–419.

Talapatra, S., & Shefa, J. (2019). Application of value stream mapping to improve financial performance of a production floor: A case study. Proceedings of the International Conference on Industrial Engineering and Operations Management Bangkok. Retrieved June 16, 2021, from http://www.ieomsociety.org/ieom2019/papers/234.pdf