Value Stream Mapping is a business process improvement tool. It derives from the Toyota Production System where it was used to identify the seven wastes in a production process. It is now used across all business processes because the principle of finding and removing waste applies throughout every business.
But Value Stream Mapping (VSM) can be extended to do Process Step Contribution Mapping. Whereas value stream mapping focuses only on identifying the seven wastes in a process, Process Step Contribution Mapping focuses on the financial gains and losses happening in every process step. The power of Process Step Contribution Mapping is its ability to identify exactly where every dollar goes in a business. Typically, organisations examine the financial performance of their departments, but few businesses establish financial data collection on what actually happens within their processes, preferring instead to employ supervisors and managers to control and direct the operation and get delayed historic results on their performance.
Here is a PDF of the full paper, for downloading.
And, a preview of the workbook (this is experimental, let us know if it’s not working for you)
HowProfitContributionMappingTurnsWasteintoProductionProductivity
Leave a Reply