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Lean Definition: Value Stream

 

A value stream is the series of activities that take a product from the supplier to the customer (for a physical product), or from the customer request to filling that need (for a service or informational product). It includes all the value-adding processes that the company performs in the Lean office or on the shop floor.

The value stream takes a big picture view of what a company does to deliver goods or services to the customer.

The value stream is looked at in reverse of the flow of the product. That means identifying waste by starting at the customer and looking upstream.

The value stream is often visually depicted on a value stream map, and has given rise to a new way of running a Lean company. It is now common to see a value stream manager responsible for a product line.

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  1. Value Stream Map A value stream map (VSM) is a drawing that depicts the flow of material and information along a value stream (the linked series of processes that brings a product from...
  2. Future State Value Stream Map (VSM) A future state value stream map (VSM) is simply a projection of how a value stream should look in the future, generally 6 to 12 months. When a current state...
  3. One Person’s Value Stream is Another Person’s Waste One of the core tenets of continuous improvement is to work relentlessly to eliminate waste. But waste is a relative concept. Think about the accounting department in your company? Do...
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  5. Upstream Processes Lean often uses the analogy of running water. Making products move quickly and effortlessly is described as flow. Flow is often likened to straightening out a meandering river into a...
  6. Work Cell A work cell is an area in a Lean company organized around the production of a specific product or product group. A work cell should be designed to promote flow...

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