What is supply chain value stream?

What is supply chain value stream?

Value stream mapping is the process of identifying bottlenecks, waste, and value-added steps within a flow of material and information. The value stream map is the appropriately named tool used to present and analyze the information uncovered by looking deeper into an organization’s processes.

What is a value stream model?

Value stream mapping (sometimes called VSM) is a lean manufacturing technique to analyze, design, and manage the flow of materials and information required to bring a product to a customer.

How do you make a VSM diagram?

How to draw a value stream map

1. Determine the scope of your value stream map. Create your start and end points first, and place them in the top left and right corners of your document.
2. Map the steps of your process.
3. Add inventory and wait times.
4. Designate the direction of information flows.
5. Create a timeline.

What elements are included in value streams?

The 4 key elements of a Value Stream Map

• Customer. The first thing to draw on the value stream map is the customers.
• Supplier. Next draw on the suppliers.
• Product Flow. The product flow shows how material is moved through the process.
• Information Flow. The information flow governs the product flow.

What is an example of a value stream?

Manufacturing value streams convert raw materials into the products customers purchase. Examples include consumer products, medical devices, and complex cyber-physical systems. Software product value streams offer and support software products. Examples include ERP systems, SaaS, and desktop and mobile applications.

What are the steps of value stream mapping?

Value Stream Mapping in 7 Steps

1. Document the current process.
2. Identify and list every step in the process.
3. Identify customer value.
4. Define what the perfect process looks like.
5. Identify those parts of the current process that get in the way of perfection.
6. Identify major initiatives to reduce or eliminate waste.

What is the difference between value chain and Value Stream?

A Value Stream is a visual process tool that describes a set of activities within the organization that adds value. A Value Chain is an organizational decision support tool, while a Value Stream can refer to a smaller set of activities within the organization that adds value.

What are the components of a value chain?

The value chain framework is made up of five primary activities — inbound operations, operations, outbound logistics, marketing and sales, service — and four secondary activities — procurement and purchasing, human resource management, technological development and company infrastructure.

What’s the difference between value chain vs. supply chain?

The main difference between supply chain and value chain is that supply chains follow the product from the supply to the customer whereas, in a value chain, the starting point is at the customer; evaluating customer’s needs and then tracking back to manufacturing to determine how the processes can be modified to meet these needs.

What is the value of a supply chain?

A supply chain is the network a company uses to get a product from the supplier to the customer and includes the flow of materials, information, and money involved in the transaction. A value chain is the process and network involved with actually gathering components and assembling those components.

What is an example of a supply chain?

A supply chain is comprised of all the businesses and individual contributors involved in creating a product, from raw materials to finished merchandise. Examples of supply chain activities include farming, refining, design, manufacturing, packaging and transportation.

The type of value stream under consideration drives the KPIs that the business will need, for example: Some value streams produce revenue, or end-user value directly, in which case revenue may be an appropriate measure. Other metrics such as market share or solution usage may provide additional insight.