Realizing Value Opportunities for a Circular Economy: Integrating Extended Value Stream Mapping and Value Uncaptured Framework

The Circular Economy (CE) concept aims to close resource loops and keep resources in the system for as long as possible at the highest utility level, without neglecting the goals of sustainable development. This paradigm shift from a finite and linear to a circular economy is however only possible if systems can be viewed as holistic overall systems. Thus, preventive problems can be identified and located as early as possible and counteracting measures initiated. This paper presents a new value stream mapping (VSM) model to consider interrelated processes in a holistic manner, regarding the requirements of CE. To do so, one macro-level to consider interrelated company relationships together with a respective micro-level to consider the individual company specific processes are elaborated. The degree of circularity is determined based on the 9R framework and new visualizations and measurement indicators are added at the different levels. This new model helps to mainly identify hurdles at a product's end-of-life, which are preventing a circular flow of resources, worth sharing with the responsible of a product's beginning-of-life. The model itself is validated by an extensive cross-company PET-bottle case study in Luxembourg.

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More value from fewer resources: how to expand value stream mapping with ideas from circular economy

International Journal of Quality and Service Sciences ◽

10.1108/ijqss-05-2019-0070 ◽

2020 ◽

Vol 12 (4) ◽

pp. 447-459

Author(s):

Christer Hedlund ◽

Petter Stenmark ◽

Erik Noaksson ◽

Johan Lilja

Keyword(s):

Value Chain ◽

Circular Economy ◽

Lean Manufacturing ◽

Value Stream Mapping ◽

Content Type ◽

Value Stream ◽

A Value ◽

New Business ◽

Value Streams ◽

Recent Trends

Purpose The purpose of this paper is to discuss recent trends in the circular economy and investigate how value stream mapping (VSM) can be extended to more fully include some of the critical aspects of circular economy. Design/methodology/approach The findings are based on previous research that has explored the usage of VSM to include aspects of the environment and sustainability aspects. These ideas are then expanded to new ways to use VSM by mapping value of a product as it is; used, maintained, re-used, remanufactured, recycled, incinerated or used for landfill. The authors test out this approach through application in the waste management sector to identify possibilities for improvement and new business opportunities in what now is considered waste. Findings This paper introduces an expanded version of VSM that refines the existing Lean toolbox for exploring value and mapping value in a circular economy. Practical implications The aim of this paper is to expand the relevance and practical value of VSM as the world economy increasingly moves toward a circular one. Originality/value Today, VSM is a widespread method within Lean manufacturing that scrutinizes value creation within an organization or within a value chain. This paper describes how VSM can be refined to explore value streams in the afterlife of a product and explore waste as a resource utilization opportunity.

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