To build a solution based on value streams, an organization’s value stream (or streams) must be examined for strengths and weaknesses. Value stream assessment (VSA) is a strategy for quickly discovering a complete solution to business constraints by assessing a corporation’s operational difficulties within the context of its value stream. Further, value stream analysis is used to provide a high-level picture of the business and discover opportunities for improvement across all of the company’s activities. In addition, cross-organizational growth possibilities are not restricted to a particular business component but encompass a broad range of linked issues.
Evaluate Attribution Streams
Value stream evaluation is concerned with the activities of an organization’s value streams. It gives a high-level picture of the company’s operations in connection to its numerous value chains in a short amount of time. The key objectives of this business challenge strategy are to identify problems and chances for improvement rapidly, define solutions to those problems, and capitalize on those development prospects.
A value stream assessment can assist you in gaining an objective view of your organization, its vision and strategy, its operational processes, and its strengths and weaknesses. The results of a value stream analysis, which stresses both the changes necessary to resolve business problems and the methods for implementing those changes, may assist businesses in improving via transformation.
Consider the Process
A value stream is the sequence of events that occur throughout a product or service delivery. While the terms value chain and product value chain are sometimes used interchangeably, the value chain for each product is unique.
Value streams can be generated in several ways. When movement between functional departments and cycle periods is visualized, a process map effectively demonstrates value streams.
After documenting all procedures, each one will be evaluated to see whether it provides value or wastes time. When lean thinking is used, a natural shift from batch scheduling to the continuous flow of single product units occurs:
- To begin, assign a monetary value.
- Establish the value chain’s location and identity.
- Start at the bottom of the value chain and work your way up.
- Pull scheduling should be used in place of pushing scheduling.
- The pursuit of excellence is the goal.
Regardless of your first reaction, do not constrain your value stream to the boundaries of your organization. Significant sums of money have been saved through value streams, sometimes due to value misconceptions or attempts to save money at the expense of the consumer.
The following are the most critical tasks and responsibilities. When modifications are necessary, they will be used to determine the following stages.
When considering Flow and lean activities, take time to understand these three concepts:
- Where does the value stream begin, and where does it end?
- The design of a value stream
- Processes included in the value chain
- These are the modes of transmission via which events take place
The components mentioned above are interdependent. Consider the organization’s structure in addition to the volume of content it receives. There are several layers of workflow within a team and throughout an organization. An organization’s structure significantly influences both.
Value stream analysis also investigates how market structure or function might be changed to satisfy consumer expectations for enhancing a product or service’s value. A product or service can be improved in order to benefit the customer while minimizing waste for the organization (known in Japanese as muda).
Conducting a Value Stream Assessment
The first step in designing a lean process or value stream map (VSM) is to understand the value stream thoroughly. This map depicts only a portion of your business. An extended level map is created when a considerable number of factories, customers, or suppliers are added.
Begin by Assembling the Right Team to Create a Lean Value Stream Map
Form a cross-functional team with your senior managers and supervisors. Customers, sales, inventory, operations, and other departments will benefit from cross-functional collaboration to ensure information flows smoothly and items do not fall through the cracks. Consider including significant suppliers in this group to provide a more balanced perspective.
The optimal team size is around ten members. Controlling and organizing large organizations is more challenging than managing and organizing small groupings.
Kaizen is a Japanese term that translates directly as “improvement.” During kaizen, team members begin planning for the future. Further, kaizen events should be led by someone who has worked with VSM previously.
To complete the kaizen event, the team should try to follow this four-step process:
- Determine the process’s previous leaders.
- Create a diagram illustrating the current scenario.
- Create a map depicting the state’s future evolution.
- Design a plan for reaching your desired outcome.
If these four phases have been completed and the team has agreed on the plans and tactics, the VSM team may advance to the next level.
Step Three of the Value Stream Assessment
A product family is a group of items or services manufactured using the same or similar production processes. Reduced setup time and load dispersion are two elements that are inextricably linked.
If departmental efficiency attempts fail to meet customer expectations or need inputs that increase supplier costs without adding value, the product value chain may become even less efficient. While standardizing product components may make individual jobs more efficient, the customer’s impression of the product may suffer as a result. Consider the standard method for purchasing a new automobile. By purchasing “the package,” you ensure that the manufacturing and delivery processes go more smoothly.
When the design or client requirements change, batch-imposed waste grows worse since the work-in-progress or finished goods inventory must be altered or become waste. It is vital to understand that muda is not limited to industrial enterprises. Burgers and bank statements are brought at the end of each month, far too late to avoid an overdraft. Transparency enhances public awareness of dangerous contaminants such as these.
Pull
This segment occurs when a consumer indicates an interest in a product or service. By shifting from inventory-based to customer-based manufacturing, muda may save inventory expenses and avoid producing things that the market does not demand.
Perfection
Achieving perfection isn’t the goal of lean implementation; instead, it serves as a reminder to keep going. Further lean improvements, also known as kaizen, have been shown to produce extra advantages compared to earlier lean deployments.
Onto the Final Stage
Check if the matrix’s processing phases are the same or equal. Make a list of objects that share at least 80% of the steps. In a manufacturing cell, consider the goods that can be produced more quickly since they have many stages and processes in common.
After discovering commonalities, the team must choose which process the family should devote its initial attention to. Consider the following considerations when deciding where to invest your time and resources:
- Return on investment (ROI) of the highest caliber
- Large-scale inventory or lead-time reductions
- The significant influence of the client
- The most probable outcome should be a success.
- A new line of products or services that allows your stakeholders to perceive you in the best light possible in terms of size or volume
Evaluate Your Current Situation
A current status map can be developed by “walking the flow” and interviewing those who perform the task. This is advantageous in two ways. To begin, it saves time.
For instance, the team would have a holistic view of the business and identify inefficiencies.
Operators, assemblers, and technicians are the ideal folks to interrogate about how things are done. When “walking the flow,” don’t forget to collect pertinent information from your team.
After your team has acquired and analyzed the data gained while “walking the flow,” you can create the value stream map needed to conduct a value stream assessment.
Remember to Incorporate the Future State
Is a stumbling barrier restricting or harming the system? Use a kaizen analysis to figure out how long it takes to accomplish a task. At least one of these will exceed your takt time, suggesting a potential bottleneck. Because of this, more processing time, such as overtime, may be required to satisfy demand and eliminate waste or incomplete work.
As the upstream process replenishes, the downstream process pulls goods from the shelf, and so on. Maintain a low inventory of raw materials, work in progress, buffers, safety stock, and finished items.
Realistic inventory reduction strategies are the key focus. Another thing to bear in mind is batching to ensure that papers don’t just sit there.
Where Would You Improve the Information Flow?
Do you believe that changing the contents of a cell is possible? If flow improvement is not possible, is it possible to create a “first-in, first-out” lane between procedures? What other modifications do you feel are necessary?
Also, do you need to strengthen the dependability of the equipment, for instance? It is necessary to examine the yield and quality of the initial pass. Is a new layout required in a specific location?
The Draft Plan
During a conventional VSM assessment, you can generate a draft plan using the information in the future state map, considering the essential resources, such as human resources, funds, and more. The following example demonstrates how a good project plan includes information such as a description of the project, the name of the project leader, the terms of potential team members, a timeline (or Gantt chart) of events and deliverables, an estimate of costs, and information about the impact, goals, or benefits of the project.
To Summarize
Conducting a value stream assessment is not limited to a particular business function. A value stream analysis will investigate every component of the process, and the suggested solution will address every area of the process holistically, including the following:
- Communication is necessary for the social realm
- Technology in practice
The VSA’s actual purpose is to increase customer engagement and overall satisfaction by combining these aspects into a single method.
