Value Stream Mapping – An Initial Possible Concept for Improvement

improvement techniques are applied, waste is minimised. It is necessary to define, monitor and control the inputs to the process as these can be the outputs of an earlier process. The main objective of the technique is to bring the process under control and prevent waste in terms of not achieving customer specifications (Oakland, 2000).

Continuous improvement techniques have no value in a process until they are used. In order to identify those continuous improvement techniques that may be useful, the applications must first be recognised and understood. Continuous improvement techniques can be used to solve problems in a process. These techniques need to be used by everyone in their normal working environment, not only by highly trained professionals. Straker (1995) highlights that continuous improvement techniques can be used for process improvement and can help to reduce process waste.

This research has been seeking to determine if there is one CI technique that can improve business performance. Therefore, various possible concepts were researched.

2.7 Value Stream Mapping – An Initial Possible Concept for

Improvement

VSM is a value-based concept that was initially considered as a basis for the framework; however, it has seen limited published work by academics since 1997, one such work being by Hines and Rich (1997) ‘Making use of the seven VSM tools’ is the only real paper of any substance in the field of VSM, and even this is viewed by its authors as an ill-defined milestone. This point of view is also supported in a paper by Lasa et al. (2008).

28

VSM is the mapping of inter-company and intra-company value adding processes that can make the final product more valuable to the end consumer. However, the tools identified in Hines and Rich (1997) are viewed as creations of an answer rather than part of the jigsaw. They do not fit well with the requirements of companies.

According to Hines and Rich (1997), the tools used to identify and eliminate waste have been identified by VSM, but they are quite difficult to understand. The systematic attack on waste is also an assault on the factors underlying poor quality and fundamental management problems. Three areas have been identified for review: non-value adding, necessary but non-value adding, and value adding. VSM identifies seven types of waste: overproduction, waiting, transport, inappropriate processing, unnecessary inventory, unnecessary motion and defects (Hines and Rich 1997).

The seven tools are presented as Seven Wastes in Table 2.4. In addition, the overall combined value structure will be useful and will also be combined, as shown in the left hand column. In order to make improvements in the supply chain, it is suggested here that at least an outline understanding of the particular wastes to be reduced must be gained before any mapping activity takes place. In the work of Hines and Rich (1997), any of the seven mapping tools are already known although at least two are new, while others will be unfamiliar to a wide range of researchers and practitioners.

Forms of waste are also identified as defined in the Toyota Production System (TPS), a large, mass-production environment that employs professional engineers to reduce waste. This research is involved in SMEs, where often there is also jobbing and small-batch activities, and professional engineers are not employed (Hines and Rich, 1997).

29

Table2.4: The Seven Stream mapping tools, Hines and Rich (1997)

Waste/Structure Process activity mapping Supply chain response matrix Production variety funnel Quality filter mapping Demand amplification mapping Decision point analysis Physical structure Overproduction _{L M L M M} Waiting _{H H L M M} Transport _H Inappropriate processing H M L L Unnecessary inventory H L Defects _{L H} Overall structure _{L L M L H M H}

Notes: H = High correlation and usefulness, M = Medium correlation and usefulness, L = Low correlation and usefulness.

Hines and Rich (1997) explain the above principles; however, it is quite difficult for those who have not been exposed to, or lack expertise with, VSM to understand these principles and the ways in which they work in the business world. McKellen (2000) explains the principles in a shortened version in contrast to the approach of Hines and Rich (1997) and Lim et al. (1999), and Gibbons (2009) supports this approach.

The research by Hines and Rich (1997) aims to remove waste from within companies; however, it does not document an effective framework that could be implemented in an SME to increase business performance. Indeed, by the author’s own admission, VSM is ill-defined.

It may be that other improvement techniques are required in order to help SMEs minimise waste. The tools and techniques taken from the Value Stream Mapping approach can support sustainability, particularly when changing from a craft manufacturing to a mass manufacturing process (Vinodh, Arvind and Somanaathan, 2011).

This research now focuses on authors who have promoted the use of CI techniques. This will identify possible benefits and potential CI techniques and also support methods that could help with the development of the framework.

30