Process and Value Stream Mapping Prepared for

IRM by:
Robert J. Trent,
A skill that should be part of every supply chain manager’s skillset is the
Ph.D. as
ability to model or map a process. This reading provides a basic overview of
process mapping and value stream mapping, including the graphical icons required reading
used within each technique. for Supply Chain
Risk
Management
Certificate

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A skill that should be part of every supply chain manager’s skillset is the ability to model or map
a process. A process is a set of interrelated steps and activities designed to achieve a specific
objective. Examples of key supply chain processes include customer order fulfillment, supplier
evaluation and selection, new product development, and demand estimation. Supply chains
are composed of many different, but often interrelated processes that affect how well an
enterprise operates. Often these processes are plagued by different kinds of risks. At a
minimum, processes should be evaluated to identify continuous improvement opportunities.
Process modeling or mapping is an ideal tool for addressing potential risks and pursuing
continuous improvement.

PROCESS MAPPING

If processes are critical, and most knowledgeable observers would agree they are, then the
ability to model (also called process mapping) and redesign a process is critical. Models are
representations of reality and can be physical, mathematical, which is common with supply
chain simulations, or schematic or graphical.

Processes are often presented as flowcharts or maps. Technically, a flowchart is a graphical

model of an existing or proposed process that uses simple symbols, lines, and words to display
the activities and their sequence throughout a process. Three basic types of flowcharts include
block diagrams, flow-process charts, and flow charts using standard symbols. Flow charts using
standard symbols are perhaps the most commonly used technique for process modeling.

Process diagrams use a standard set of symbols to graphically portray a process. While some
process maps simply use rectangular block diagrams, the symbols begin to provide more detail
about a process. The flowcharts can help identify unnecessary and redundant steps, an
inefficient sequencing of steps or use of resources, and bottlenecks.

When developing a process model it is important to portray the process as it currently exists.
These illustrations can be at a higher level (the 25,000-foot level) or be quite detailed at the
level of specific activities. At a later point we will redesign the process to appear as it should
look. A more complex process, such as customer order fulfillment, may be broken down into a
series of sub-processes or even individual tasks. Furthermore, individual events, such as
ordering components from suppliers, can be further broken down into greater detail. The
scope of a redesign effort is an important consideration when using this approach.

The ability to model processes is an important part of risk management and process
improvement efforts, and continuous improvement is an important part of any organization.
Organizations must clearly articulate the processes they rely on, identify those processes that
offer the greatest opportunities for improvement, and create a culture that regularly applies
process mapping.

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VALUE STREAM MAPPING

Related to process design is value stream mapping (VSM), a tool developed by Taiichi Ohno at
Toyota. Value stream mapping is a tool that helps us visualize the flow of material and
information as a product or service progresses through a value stream. At Toyota VSM is
known as “material and information flow mapping” and is used as a tool used extensively by
practitioners of Lean.1 The following defines some important concepts with VSM:2

 Value Stream—all the interrelated activities, value-added and other, needed to make
a complete material or information product. James Womack and Daniel Jones argue
that a value stream is the set of all the specific actions required to bring a product
through the three critical elements of any business—product design, information
management, and physical transformation.3
 Value Stream Map—a set of drawings that make the flow of material and information
visible.
 Value Stream Mapping—the physical effort that creates value stream maps.
 Current State Map—an illustration of a process or value stream as it currently
appears.
 Future State Map—an illustration of a process or value stream that represents an ideal
state after applying Lean principles.

VSM differs from process mapping in a number of ways.4 Value stream mapping gathers and
displays a broader range of information than a typical process map. Next, VSM tends to be
used at a broader level, such as an entire value stream from receiving to delivery of finished

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goods. Third, VSM is often used to identify where to focus future projects, such as Kaizen
events. Finally, value stream mapping has its own set of icons that are different from the icons
used with process mapping. These icons are specific to this technique while process design
icons are generic.

An advantage of value stream mapping is the ability to provide a common framework and
language across cultures. The process requires a thorough mapping and understanding of the
current state of a value stream before a future state is determined. The future state represents
a goal to work toward. VSM takes an integrated, holistic view of a value stream that is cross-
functional, or horizontal, by design. Few, if any, value streams are purely functional.

Essential to value stream mapping is the use of VSM symbols or icons. Unlike process mapping
symbols, VSM icons are not standardized, although there are a fair number of generally
accepted icons. It is not unusual for organizations to create their own symbols as the need
arises. The following figures present a sample of current and future state value stream
mapping symbols.

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1
From the Office Workflow Facilitator’s Guide for VSM: Introduction to Value Stream Mapping, Enna
Corporation, 5.
2
From the Office Workflow Facilitator’s Guide for VSM: Introduction to Value Stream Mapping, Enna
Corporation, 17.
3
J. Womack and D. Jones, Lean Thinking (New York: Simon& Schuster, 1996), 19.
4
From www.isixsigma.com dictionary.

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