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Value stream mapping: definition & important aspects for buyers
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Value stream mapping in a nutshell:
Value stream mapping is a method for visualizing and analyzing all value-adding and non-value-adding activities along the entire supply chain. For purchasing, it enables the identification of waste and optimization potential in procurement processes as well as the targeted improvement of cooperation with suppliers.
Example: An automotive supplier carries out a value stream analysis for its C-parts procurement and realizes that by switching from weekly to monthly ordering from 5 main suppliers, process costs can be reduced by 45,000 euros per year, while the lead time is reduced from 12 to 8 days.
Contents
What is value stream mapping?
Value stream mapping is a lean procurement method for visualizing and optimizing processes. It makes it possible to map the entire material and information flow of a product or service from the source to the customer. The detailed representation of all process steps allows inefficient processes to be identified and potential for process optimization in purchasing to be uncovered.
Core elements of value stream mapping
Importance of value stream mapping in purchasing
In purchasing, value stream mapping supports the optimization of procurement processes by creating transparency in workflows and revealing inefficient areas. By focusing on value-adding activities, throughput times can be shortened and process costs reduced. This leads to more efficient material procurement, improved supplier relationships and greater competitiveness for the company.
Value stream mapping: From manual process mapping to digital value stream optimization
Value stream mapping is an essential tool for visualizing and improving process costs in companies. While in theory it provides a comprehensive overview of material and information flows, its practical implementation requires precise methods. In today's dynamic business world, traditional approaches are reaching their limits, underlining the need for innovative solutions to increase efficiency and competitiveness.
Old: Manual process recording
Traditional approach:
In traditional value stream mapping, processes are recorded manually. Employees observe production steps on site and document them on paper or simple diagrams. The data is then transferred to tables and analyzed. This approach enables an initial identification of waste and inefficiencies. However, manual recording is time-consuming and prone to human error. Updates and adjustments are laborious, which can lead to outdated information. There is also a lack of real-time transparency to react quickly to process changes.
New: Digital value stream mapping
Value Stream Mapping 4.0:
Modern value stream mapping relies on digital technologies to map processes more efficiently and accurately. By using sensor technology, IoT devices and specialized software solutions, data is automatically collected and visualized in real time. This approach minimizes human error and enables continuous monitoring of the value stream. AI in purchasing and big data analytics identify patterns and optimization potential that previously remained hidden. Companies benefit from faster decision-making processes, increased productivity and greater flexibility to respond to market changes.
Practical example: Manufacturing industry
A medium-sized mechanical engineering company implemented a digital value stream analysis in its production. Thanks to real-time data tracking, the time-to-market was reduced by 30%. Bottlenecks were identified and resolved immediately, which led to a reduction in stock levels by 25%. The quality of the end products improved by 15% thanks to precise monitoring and faster response times to deviations. Overall, the company increased its productivity by 20% and achieved annual cost savings of over 500,000 euros.
Conclusion on value stream mapping
Value stream mapping is an indispensable tool for the systematic optimization of purchasing processes. Through the detailed visualization of material and information flows, it enables the identification of waste and creates the basis for more efficient processes. With increasing digitalization and AI integration, the method is constantly evolving and offers companies the opportunity to sustainably increase their competitiveness through leaner, more cost-efficient procurement processes.
