To Value Stream Map or Not to Value Stream Map a Service Process?
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Value stream mapping and Lean implementation in the service business have somehow become synonymous. I have observed service organizations embarking on Lean implementation to invariably use value stream mapping. It is paradoxical that organizations using “value stream maps” often see these maps as a sign of their organizations’ Lean implementation and not necessarily as the tool to show the results that the Lean intervention should deliver. During my visits to service organizations that have implemented Lean, the first thing these organizations show me are their value stream maps. What surprises me is that the tool is used even when it is not necessary. Corporate walls are mindlessly getting pasted with value stream maps, which are often static documents for visitors to see and compliment service organizations’ Lean endeavors.
I do not blame organizations for this faux-pas. Lean as a concept is new to many service companies. They hire individuals, who in their enthusiasm to show progress, make teams do value stream mapping even if it is not required. Somehow, value stream maps are being used for obvious wastes, which can get identified by a value-contribution analysis (as discussed in my earlier column).
Be Careful with Value Stream Mapping
For God’s sake, my observations above should not be taken as my being anti-value stream mapping! Value stream mapping is a great tool and probably the best one that I have come across to unfurl hidden wastes in processes. However, we need to be careful because of the following reasons:
- Value stream mapping is a cumbersome exercise and requires investment of much time and resources.
- Wastes in service processes can often be identified by doing a detailed value added/non-value added analysis.
- Understanding the nuances of value stream mapping is critical before they start getting used by teams. It has many things to offer and just not waste identification. Ask a service Lean expert and he will tell you.
Remember, using the value stream mapping in the right context is critical. The worst thing that could happen if value stream mapping is used in the wrong context is an unproductive and wasteful approach while Leaning a process. Unfortunately this is often not seen by organizations that are dependent on consultants/individuals who have yet honed in the whys and hows of Lean tools.
Defining Value Stream, Value Stream Mapping, and Value Stream Map
Before I delve on the use of value stream mapping in a service business, for the un-initiated let me explain the terms value stream, value stream mapping and value stream map.
I am mentioning the definitions as mentioned in Lean Lexicon (edited by Chet Marcwinski et al, Jan 2003) and their service interpretation:
Value Stream
| Definition as per Lean Lexicon (Jan 2003, LEI) | A Services Perspective |
| All of the actions, both value creating and non-value creating, required to bring a product from concept to launch and from order to delivery. | All activities (both value adding and non- value adding) that are required for carrying out a service business (of a product family). Within the value stream there are core processes which work in tandem to achieve the strategic business objectives. |
Value Stream Mapping/Map
| Definition as per Lean Lexicon (Jan 2003, LEI) | A Services Perspective |
| A simple diagram of every step involved in the material and information flows needed to bring a product from order to delivery. | Value Stream Mapping is a visual tool used to identify wastes in processes. It includes movement of materials and information flow and also how resources, such as people, within the system get used in the process. The final diagram is called a Value Stream Map. |
When You Should Use Value Stream Mapping
My intention in this column is not to tell you how to do value stream mapping but to share with you when it should be used. I will talk about the how’s of value stream mapping at a later date.
So when should you use value stream mapping? While the list can be large, the following is a list of major reasons when value stream mapping should be used in a services business:
- When the process is large and simple value contribution analysis will not throw up the opportunities for improvement
- When you are keen on improving the productivity of a large number of people scattered across locations and are keen on knowing their utilization/load distribution
- When you want improve an end-to-end process
- When you want to know the various inventories that get piled up in a process
- When you are keen on identifying the opportunities for optimization in a process
- When the process is complex and cuts across geographies involving multiple stakeholders
- When you want to know the inherent complexities of a process
- When you want to know the various IT systems that are used in the process
- When you are keen on knowing the effectiveness of various channels that are used for serving the customer
- When embarking on a Lean journey and there is a need to find out the Lean opportunities in all your core processes
- When you want to show visually the health of your processes to the CEO and other top management
- When you want to do a strategic—review of all your processes
In all other cases, I would recommend that you ascertain the value-contribution of the processes. Use value stream mapping as a strategic tool and do not squander its power on tactical work. For all tactical work I can guarantee a good value contribution analysis will get you good results.
Value Stream Mapping Requires Mastery Over Time
Let me caution you that value stream mapping is not an easy tool, and one masters it over a period of time. In service contexts, sometimes it can be quite arduous and requires a good understanding of business processes and their complexities.
Reference:
Lean Lexicon—A Graphical Glossary for Lean Thinkers, Chet Marchwinski and John Shook, The Lean Enterprise Institute, USA, 2003.
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If you really have to swear (which shows a lack of linguistic intellectual), please don't use God's name in vain. I’m sure there are many other words you can use for swearing to impress like minded people.
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After recently completing a couple of these efforts, I can say that tracing the map to its conclusion is not only cost-prohibitive, but is mostly useless--the comments previously made highlight the fact that most of the useful information is discovered simply by documenting the process at a high level, identifying ownership, and then exploring bottlenecks and areas of inherent risk with a narrow focus.
To respond to the questions posed by Shailesh, Caring about tactical vs strategic is very important when your processes cross departmental boundaries. You may have a very obvious process improvement at the strategic level--a very important improvement with regard to project goals and overall quality, but that is not attainable by the department involved. If your project manager does not have the ear of the upper management in that department, you will continue to have project risks because the tactical issue may not be worked. If you have an upper management task force to prioritize some of these strategic improvements--great! But if you don't, fixing these strategic problems may take a great deal of time and a large effort to justify the proposed changes.
Your second question is also a good one. I think that your success stories should be carefully phrased to praise the effort of reducing cost/risk/etc where appropriate, taking into account the position of the intended recipients--are they wanting to hear a 'quick win', or are they looking for success stories from a measured, systematic approach that will yield benefits over a longer period of time?
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Your title piqued my curiosity--why wouldn't one want to VSM? Reviewing your list, I realized ALL my projects fit MOST of these criteria. So to clarify the categorization into VSM and not-VSM, I reversed your criteria. That opened up more questions:
Do not use VSM when
* When the process is small and simple value contribution analysis shows opportunities for improvement
* When you are improving the productivity of a small number of people in one location and don't care about knowing their utilization/load distribution
* When you want improve a portion of a process
* When you don't want to know the various inventories that get piled up in a process
* When you don't care about identifying the opportunities for optimization in a process
* When the process is simple, in one location, and involves one or only a few stakeholders
* When you don't want to know the inherent complexities of a process
* When you don't want to know the various IT systems that are used in the process
* When you don't care about the effectiveness of various channels that are used for serving the customer
* When you have been Lean for a while and there is no need to find out the Lean opportunities in all your core processes
* When you have no need to show visually the health of your processes to the CEO and other top management
* When you do not want to do a strategic—review of all your processes
My questions are: When do we NOT care about the inventories that pile up? That is ALWAYS a source of waste.
When you want NOT want to improve an entire process? The only reason to not do this, is if you have identified the process constraint and are working on that.
* When wouldn't your care about the effectiveness of various channels that are used for serving the customer? If one channel is better for serving a customer, why not always use it, or at least promote it?
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I agree completely with you, as a traditional VSM focuses more on the material flow and given less importance to the information flow it is very essential that we need to think and set the objectives before rolling out VSM in service industry, as it is a strategic tool to map the end to end process.BPO’s most of the cases will be contributing very less in the value chain In problem solving and physical transformation stages. It handles extensively the information handling among the 3 key business tasks in any organization (Problem solving, Information management and physical transformation).The most appropriate tool is a process value map which maps the process end to end by using all the terminologies in lean (VA/NVA) analysis which can bring out all the lower hangings in the process. I would appreciate if you all could validate my thought and provide more inputs
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Extremely well written..It summarrises in a nuthell when we ” must” use the tool. I would agree with you that the VSM is many times seen as a glamourous tool which may be used to add more credibility to the Lean Initiatives are being showcased to senior management. I, particularly liked the way you have inventorised the instances where we can use VSM . It can serve as a checkliskt whenever we are faced with the dilemma of ‘”use not to use”
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I would add that a Value Stream Analysis is normally a 50 thousand foot view of a process flow. It is basically a process flow map that begins at the highest reasonable level and proceeds to more detail of the flow of the targeted process, In my view I see two other areas of opportunity: The map defines the priorities on which the team should work and sets up a schedule of work to continuosly improve the process and in any type of flow the team must be aware of the points of constriction to flow (bottle necks). By working on the bottle necks as defined in Golbratt's "Theory of Contraints" flow is gradually improved. I guess the last point I would make is that the VSA greatly aids the understanding of the flow through the entire process, a way to enlighten all participants re: their responsibilities in making the process flow, as well as giving each of the participants a bird's eye view of the entire process.
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Hi Debashis,
Thanks for quick reply. You have nicely summarised key message :"Tools are enablers and do what is required for getting business results and not vice- versa". This is very important and really appreciated that experienced people like you are taking moral responsibility of bringing this key message to masses. Thanks. S.Chopra
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Dear Shailesh:
My responses are as follows:
(1) Provide the above set of rules to the person and let him take a call. I agree that one should not worry about strategic or tactical aspects as long as the problem gets solved. However, make the person aware that it is not right to follow an inefficient process while trying to make a process efficient.
(2) It is quite okay if a partial value stream mapping provides the required results. Remember, we have to do what’s required for getting results for the business and not vice-versa. Tools are just enablers for getting results.
Debashis Sarkar
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Good set of rules for using VSM. I had to chuckle as I read this column, for I have only worked in services and have only used it in that context. I did think, as I was learning VSM and Lean, that it would be easier with a physical product.
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Hi Debashis,
This is surely good observation on VSM and nicely detailed.
But think from a Managers Perspective who was facing some problem and application of this tool (VSM) helped him solve the problem quickly and he takes pride in sharing when asked how he was able to solve it. Q1.Should he really care about strategic vs tactical thinking as long as his problem is getting solved quickly.
Q2. This tool is very powerful but should one shy away from sharing when he used it partially which was sufficient for him to get answer.
Thanks in advance for providing answer
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