This evaluation system also applies to services, by the way. The value stream refers to the entire production or service process. From the first step to the final use by a customer. This is the detailed plan of the production or service, which helps to eliminate unnecessary waiting or idle times and successfully provide its products or services. Through the value stream and its analysis, production processes can not only be improved, but also completely changed.
What is value stream mapping?
Value stream mapping is a method for improving processes in production or services. A value stream analysis reduces unnecessary time sequences or any losses. This analysis of the value stream is the first step in the so-called production process and always shows the current status. In the value stream analysis, everything is shown in detail from the first to the last step and thus an optimization can be carried out, no matter in which area it may be necessary. The term originally comes from business administration and in turn from the field of production planning and control. The precise planning and control of production or services is a cornerstone for successfully managing a company.
Value stream design from supplier to distribution
Value stream design is the second step in value stream management. This determines and shows the target state of production or the production process. The value stream design thus describes how the processes should run from the purchase of materials and production through to storage and delivery to the customer. A plan drawn up according to these records sets out everything necessary to eliminate unnecessary storage or delivery times. This eliminates losses and can improve productivity enormously. In summary, everything related to production or service is defined under the above-mentioned terms. A good plan and detailed records provide exact processes that can be checked at any time. Value stream management and mapping are business tools to make the value of a process clear.
Value stream mapping for complex processes
The value stream analysis provides summarized information about all activities of a process that are absolutely necessary. Regardless of whether this involves the creation of a product or the provision of a service. Value stream mapping also includes areas of production or services that are located or carried out abroad. The value stream design provides a clear overview, which makes it possible to better observe cost reduction, risk and loss restrictions!
Customer takt as the sizing parameter
The starting point of value stream design is the customer takt: the available operating time per period divided by the customer demand of the same period. From factory days, daily working time and annual quantity, the takt results in minutes or seconds per piece — the pace set by the market to which the production capacity is aligned throughout (Erlach 2010, p. 47 ff.):
Customer takt = (factory days × daily working time) ÷ annual quantity
From current to future state: design guidelines that build on each other
Building on the value stream analysis, value stream design develops the future state through design guidelines that build on each other — among them: alignment with the customer takt; combining processes into continuous flow (one piece flow); where that is not technologically or organisationally possible, coupling via FIFO lanes; consumption-driven kanban control for decoupled sections; controlling the entire value stream at exactly one pacemaker process; releasing orders in small, uniform quantities (pitch) and levelling the production mix (Erlach 2010, ch. 3).
The result is a future-state value stream with short lead time and clear control logic. For the spatial implementation, value-stream-oriented layout planning follows (Erlach 2010, ch. 4.1).
Value stream design in practice: Our services overview brings together the relevant planning and consulting approaches.