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Value Stream Mapping

Value Stream Mapping (VSM) is a technique used to identify obstacles and constraints that prevent a company from achieving its efficiency goals and desired performance objectives (Dadashnejad & Valmohammadi, 2019). This method starts by mapping out the present state of the values stream, including all the activities and processes used in producing a product. After this, weak areas and obstacles are identified and thus embattled for improvement. A company can reduce costs by eliminating constraints and obstacles, improving quality, and incrementing efficiency since they give companies a competitive advantage and impact it positively.

Besides, the VSM process helps identify and prioritize areas that need improvement. The breaking enables this down the value stream into individual components like shipping, packaging, sourcing materials, customer service, and production (Kumar et al., 2021). When these components are analyzed, constraints and inefficiencies are identified and then targeted to be improved by identifying areas that need to be addressed first through new technology, process improvements, and other methods.

Furthermore, VSM helps companies stay ahead of the competition and maintain their edge in the global market. Companies can use the technique to identify their competitors and the methods they use to produce the same product. Knowing this information can help a company adjust its methods and processes to become more efficient and cost-effective. Additionally, companies can compare their current value stream to their competitors to identify areas where they can improve their production process or cost structure.

Additionally, companies can use VSM to develop better strategies and increase their competitive advantage. By identifying the processes and activities that are taking up most of the resources, companies can identify ways to reduce the time and resources spent on certain activities and processes. This can help the company reduce costs, improve efficiency, and increase production.

Finally, VSM can be used as a tool to measure and monitor the performance of a company’s operations. By tracking and analyzing the data collected from the value stream mapping process, companies can identify areas where they can improve performance and make changes to increase efficiency and improve quality. This helps the company keep track of its progress and measure the impact of its changes. This data can also be used to identify trends that can be used to anticipate production and customer needs.

In conclusion, Value Stream Mapping is a powerful tool that can help companies identify and eliminate barriers that could prevent them from achieving their efficiency and performance goals. It can help companies improve efficiency, improve quality, and reduce costs. Companies can also use this technique to monitor and measure the performance of their operations, identify trends, and develop competitive strategies. Therefore, Value Stream Mapping is an essential tool for any company that wants to stay competitive and maintain its advantage in the global market.

Elimination of constraints and obstacles helps firms in the sustenance or improvement of competitive advantage in different ways. A firm can improve its efficiency and reduce production costs, thus becoming competitively priced and having a competitive advantage (Alexy et al., 2018). Additionally, a company can meet customer needs and expectations after improving the quality of its services and products; thus, this builds the firm’s reputation and creates a strong relationship between the customers and the organization for excellence and reliability. When customer experience is improved, customer loyalty is built, leading to increased retention of customers and satisfaction of customers. As a result, the firm experiences high profits from increased sales.

Elimination of obstacles and constraints also provides flexibility and agility in production, thus, allowing the firm to respond quickly to changes in the market. This can be valuable when trying to identify new market opportunities. Moreover, it can help in developing innovative products or services that can give the firm a competitive edge over its competitors. Lastly, it can also help the firm in reducing costs, which can be critical for reducing prices and gaining a competitive advantage.

Thus, it can be concluded that the Value Stream Mapping technique helps a company identify and eliminate constraints and obstacles that could otherwise have prevented the business from achieving its performance goals. Therefore, a firm improves efficiency, increases quality, and reduces the cost of operation and production. As a result, the quality of products and services increases, giving the company a competitive advantage over its competitors.


Alexy, O., West, J., Klapper, H., & Reitzig, M. (2018). Surrendering control to gain advantage: Reconciling openness and the resource‐based view of the firm. Strategic Management Journal39(6), 1704-1727.

Dadashnejad, A. A., & Valmohammadi, C. (2019). Investigating the effect of value stream mapping on overall equipment effectiveness: a case study. Total Quality Management & Business Excellence30(3-4), 466-482.

Kumar, M. B., Parameshwaran, R., Antony, J., & Cudney, E. (2021). Framework for lean implementation through fuzzy AHP-COPRAS integrated approach. IEEE Transactions on Engineering Management.


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