This research is an attempt to investigate the significance of Value Stream Mapping (VSM) in the lean transformation of manufacturing units (largely automotive) and then apply the same in a tool room. It is an essential tool used to interpret both material and information flow in a system. The tool room under study specializes in production of a large variety of high precision tools for the automotive industry. A product family is chosen to map and analyze various stages of its production process, starting from the raw material (R/M) to the finished goods’ (F/G) stage. VSM is then implemented in the tool room to correctly identify wastes and thus improvement areas to bridge gaps between current and future states. Both current and future state maps are drafted along with usage of other lean tools to justify its implementation in a small setup like tool room. Given the customized nature of work being performed in the setup, task standardization is not a priority but employee specific tasks are suggested after optimization of all work procedures. Methods adopted by the Toyota Production System (TPS) for transformation of a unit from non-lean to lean are given due emphasis. Jishuken (self-learning) activities have been designed for both owners and employees in phases to inculcate the spirit of Kaizen (continuous improvement) and achieve leaner production in future.