Value Stream

Posted in Operations and Supply Chain Terms, Total Reads: 1555

Definition: Value Stream

Based on the Material and Information flow maps developed at Toyota, Value Stream mapping is a visual tool that graphically identifies every process in a product’s flow.

It is a lean manufacturing technique and creates value by detailed analysis of complete process flow of the product. The current status is drawn to identify the redundancies and wastages in the process. The value stream activities includes reviewing demand profile (Pareto chart, histogram) , Conducting flow analysis (Parts process matrix, spaghetti diagram), Calculating takt time (Peak demand, Average demand) , Value stream mapping (Current state and future state gap analysis) and Delivering the improvements that can be achieved by lean transformation and implementation plan.

Many organizations pursue lean technology to connect all improvement activities. Improvement plans alone are not enough these days and value stream mapping enables organizations to see waste and plan to eliminate it.

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