Value Stream Mapping in Program Management

Abstract

Value Stream Mapping (VSM) is a wide-spread tool in Lean manufacturing environments. The ongoing extension of Lean principles to applications other than production also involves the VSM methodology. VSM, as well as other concepts, therefore need to be adopted to the specific new purposes and environments.

This article concerns the application of VSM in one of the most recent areas – lean program management. As a starting point it briefly describes the VSM concept in its “conventional” shape, including implementation patterns and visualization methods. Subsequently the approach of lean program management is introduced, main challenges and lean enablers are pointed out. In particular the role of VSM within this area is examined and, based on this, implications for the application of VSM are stated. Thereafter the actual practice regarding VSM within program management is illustrated, similarities and differences to the “original” form of the methodology are shown. Conclusively strengths and weaknesses of the application within program management will be presented.

Definitions and Problem Statement

Value Stream Analysis and Value Stream Mapping

The method addressed by the headline is Value Stream Mapping. Nevertheless, this article also includes the previous step named Value Stream Analysis (VSA). Undoubtedly the both of them are connected by their nature. To understand this connection as well as the differences, the two methods will be briefly introduced within this section. VSA is an examination method which applies Lean principles to focus on business activities that are adding value to a final product and in this manner forming a value stream in aggregate. VSA can be understood as “a method by which managers and engineers seek to increase the understanding of their company's development efforts for the sake of improving such efforts” . The method aims and depends on local process knowledge, but combines it invariably with a holistic systems perspective.