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Value Stream Management

Value stream management is the capture, control and planning of production and material flows in manufacturing — together with the associated flows of information.

Image: Sample illustration

Introduction

Value stream management breaks down into three consecutive disciplines: value stream mapping, value stream design, and value stream planning. Run in sequence, they serve as tools for shortening lead times and optimising production. The standard work on the topic—Learning to See: Value-Stream Mapping to Add Value and Eliminate Muda by Mike Rother and John Shook—walks through a complete improvement cycle and describes value stream management in depth.

Value Stream Mapping (VSM), constitutes the first part of value stream management. Its aim is to record the current state and identify non-value-adding processes and waste. After the analysis, the value-stream design phase drafts a future state that shortens waiting times and eliminates non-value-adding activities. The objective is to create a value-stream flow with short lead times and a high proportion of value creation. In the final phase, value-stream planning, the transition from the current state to the future state is organised and carried out.

Objectives

A shared, easily understandable language for discussing production and the production process
A clear view of the relationship and interaction between information flow and material flow
Insight into more than just the “process level” by revealing the underlying flow
Identification of the root causes of waste
Prevention of sub-optimisation that targets obvious waste without a holistic perspective
A sound basis for an implementation plan
Requires nothing more than pencil and paper

Advantages

Creates a model of the material and information flows within a value stream
Improves process control in production
Identifies non-value-adding processes
Provides a big-picture, holistic view of the process from goods receipt to goods dispatch
Visualisation highlights improvement potential
Maps information and material flows, enabling optimisation through the elimination of waste