“Improvement in Organizational Productivity with Value Perspective through Value Stream Maps



The solution lies in a tool more popularly called, “Value Stream Mapping”. The concept had its
origin at the automobile giant “Toyota Motors”. Traditionally Toyota had been using this tool
by the name “Material & Information Flow Mapping”. VSM is a systematic tool that helps us
in visualizing & understanding the flow of material and information as a product makes its way
through the supply chain starting from supplier through the manufacturing cycle finally in to
the hands of customer. With a standard set of icons starting within macro level map of the
entire supply chain one goes in to the micro level, mapping door to door, M/C to M/C value


Once the entire value stream is mapped and visualized, one collects the relevant
“Current State” details and brings out a final sketch of what is called “Current State Value
Stream Map”. As the name suggests the most important information that the map throws up is
the efficiency of the present manufacturing set up in terms of percentage time spent in Value
addition in the entire Value Stream. The measuring index precisely is called “Process Ratio”.

Process Ratio (PR) = Value Adding Time (VAT) / Lead Time (L/T) x 100

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