Management Guides

Value Stream Mapping

August 13th, 2008

Value
In lean manufacturing, the value of a product is defined solely by the customer.
Value-adding activities transform the product closer to what the customer wants, non value-adding activities don’t create customer value.
Anything that is not value-adding is defined as waste.

Value Stream
The value stream is an end-to-end collection of processes that create value for the customer.
The value stream includes
- people
- tools and technologies
- physical facilities
- communication channels
- policies and procedures

Value Stream Mapping
Value Stream Mapping is a method to describe the flow of material and information through the production system.
By graphically portraying the process, one is able to see where value is added and value is lost.
The ratio of value added to total lead time is figured by documenting the current lead time, inventory levels and cycle times.
The visual representation allows to see where costs can be reduced and improvements can be made.
A future state can be designed where wasted steps are left out, and continuous flow and pull production are introduced.

Click Here to access 2 Value Stream Mapping Presentations (84 slides).

Entry Filed under: Value Stream Mapping