Value Stream

Value Stream is the process and series of activities that we perform to satisfy our customer needs. The output of Value Stream is creates solution that brings value to our customer.

Improve throughput, efficiency, cycle time and customer satisfaction.

To manage the Value Stream means to;

  • Eliminate Waste,
  • Increase Quality,
  • Minimize Cost,
  • Reduce Cycle Time

Value: Value is what the customer wants enough that he’ll pay to get it.

Muda: Everything else is non-value added, and is, by definition, WASTE. Something that customers are not willing to pay for.. - OR -Doesn’t change the form, fit, or function of materials or information …- OR -Takes more than 1 try to get it right

Value Stream Components

  • TAKT Time: Takt time is the time in which one part needs to be produced to satisfy customer demand: total time available / total customer demand
  • RM: Material received from suppliers that has not yet entered the process.
  • WIP: Material or product that has started the process but is not yet ready to deliver to customer, Finished good, Product ready to ship to the customer
  • Inventory wait time: It is the time a part waits in an inventory location. In First-In First-Out (FIFO) systems, parts wait for every other part in the inventory before proceeding to the next process
  • Process time: It is the time required for a part to be processed (work activity) at any particular step. This time may be a combination of machine and manual labor elements.
  • Cycle time: It is the frequency with which a process delivers a finished part. It may differ from process time because more than one part can be processed at the same time.
  • Lead time: It is the total time required for a part to go through the entire manufacturing value stream. It can be calculated as the sum of all process lead times