Value stream mapping is a framework that could be used by the line-managers to identify the types of wastages in a value chain. The goal of value stream mapping is to identify, demonstrate and decrease the waste. Value stream mapping identifies the non value adding activities in a process and eliminates wastage due to non-value adding activities. It focuses on visual maps the flow of materials and information from the time products come in the back door as a raw material through all manufacturing raw materials.
In this frame work, the line-manager could be able to track the process flow and value addition to the product in every activity. Whenever a non value adding activity is identified then it is called as waste.
1. Value stream mapping to identify the type of wastage
Value-adding steps are drawn across the center of the map and the non-value-adding steps be represented in vertical lines at right angles to the value stream. Thus the activities become easily separated into the value stream which is the focus of one type of attention and the ‘waste’ steps another type.
2. Identify the danger signals for each waste
Upon the value stream mapping there are targets for a particular waste. If the actual figure exceeds the target a danger signal will be created. The danger signals of each waste can be identified by comparing the actual results with the targets. Using time study lead time of each and every process will be calculated and stored as a database. When the production starts the line manager could track the operations using the value stream mapping. Whenever the actual production status goes beyond the target a danger signal will be created. So that the manager could concentrate upon the particular operation where there is a need for improvement. There are lean tools such as Jidoka can be used to identify the danger signal. Whenever the quality turns out of control or wastage exceed the allowance a danger signal will be created that makes aware of the line manager.
3. Framework that assists to respond to the danger signals
Response to danger signals should be systematically handled. Once the manager noticed a danger signal, the manager should closely analysis and identifies the cause of wastage. Manager should ask themselves a few questions as a check list to ensure they are taking right decisions. First of all the manager should identify where the problem is? How the problem is been created? What is the impact of the problem in the value chain? Does it make economical sense to take a decision upon it? If the managers get answers for these questions then they could proceed with taking decisions.
Then using Kaizen as a framework manager should take an appropriate solution to solve the current issue and ensures the system in running as per scheduled. Continuous improvement strategy should be taken in consideration before taking any decision. While taking decision the manager should consider about the current strategy that the company is pursuing.