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Value Stream Analysis

Value Stream Analysis Defined

As the old saying goes: "if you don't know where you're going, any road will take you there." Analyzing the value stream is the crucial first step to determine where you are going to go on the Lean journey.

The value stream is the entire collection of activities necessary to produce and deliver a product or service. Value stream analysis separates those activities that contribute to value creation from activities that create waste, and identifies opportunities for improvement.

Value Added Flow Chart

A high level value stream diagram is useful to divide the total value stream lead time into value-added and non-value-added categories.

The percent of total cycle time consumed by non-value-added activities is often shockingly large - in excess of 80%. You can consult the MoreSteam.com Toolbox for help in constructing a Value-Added Flow Chart.

Value Stream Map

A high level Value-Added Flow Chart will help identify priorities for improvement, but greater detail is needed to guide specific shop floor initiatives. The Value Stream Map is a tool used by Toyota Motor Co. to focus team efforts on specific plant waste reduction projects.

The process involves creating a current-state map of the value stream, followed by a future-state map from which specific action plans are developed.

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