Pre-requisites for Creating Value Stream Map
If you have only single product or service to be offered to your customer, Creating a Value Steam Map is straight forward.
But if you have multiple products or services, there are few pre-requisites to be worked on before you can actually build your VSM.
Imagine your company produces various types of pens, gel, ball point, ball pen, etc. and all of them have
different process to produce. You first have to prepare PQPR for your entire product range. PQPR stands for Product Quantity & Process Routing. PQPR will help you save time from wasting your improvement efforts and set priority for which product or product range you must build the VSM.
Here is the step by step process to prepare PQPR.
Step 1: List down the products or services that your business sell in order to generate revenue. These may include different models, variants, different service types, etc. For example, if you sell cars your product list will include various car models and their variants you sell.
Step 2: Gather information about the sales volume or sales revenue of each product in the list. This will allow you to focus your effort on building VSM on most critical products which will have highest impact.
Once you are ready with the list of products along with their volume or revenue share move on gather information on Process Routing.
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Process Routing:
Step 1: In the same table where you have listed down your products. horizontally write down all the major functions, activities, departments or processes through which your products travels through. In other words, write down all the functions or departments which are involved in processing the product or service till it reaches from start to finish in hands of the end customer.
Step 2: As shown in the following figure, mark the relevant processes with ‘x’ through which your particular product travel through. Although in the following table we have taken only 10 products for our example, in reality there may be hundreds of products in this list. But to make it simple if you take a closer look at this table. you will notice that product 1 and product 4 have similar processes being used. This similarity brings them in single group. Similarly, product 5 and product 8 can be brought in same group as these have similar process routing.
Step 3: Now, based on the above table you can prioritize the product or group of product for which you would like to start building VSM. You can either pick the product having highest volume of sales or highest revenue generator or you can pick product which faces most problems in the processes while traveling through different processes.
Start building your VSM now and ask us if you have any doubts. Post your questions in comments section.
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