Value Stream Management. Organizing by Value Stream, Value Stream Metrics, and Managing Improvement. How do we manage value streams for improvement? OpEx Minute 32 Presented by EMS Consulting Group, Inc.:
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Welcome to today’s edition of the OpEx Minute, presented by EMS Consulting Group. Today we will be talking about Value Stream Management.
In a previous OpEx Minute, we talked about Value Stream Mapping.
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Today, we are talking about managing value streams for improvement. Value Stream Mapping is about identifying a future state with improvements, Value Stream Management is how we manage.
Value Stream Management involves managing the initiatives identified through Value Stream Mapping and monitoring key value stream metrics toward their targets. Typically a Value Stream Manager is responsible for overseeing or managing this process. The Value Stream Manager will work to do the following:
• Manage improvements by setting target conditions through value stream mapping.
• Utilize improvement methodologies such as kaizen events, improvement kata, and suggestion programs to implement improvements and reach target conditions.
• Then, set new goals in your next Future State Map.
• Utilize Lean Accounting and Measure Improvement by Value Stream Metrics.
• Track key metrics over time. This can be part of Daily Management, which we also previously covered in an OPEX minute
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Another aspect of Value Stream Management would include organization. Ultimately, it makes great sense to organize by Value Stream wherever team members can be dedicated by value stream. For a product manufacturer, this might include purchasing, production planning, production associates and team leads, engineers, and others who could be dedicated to the value stream. This would even allow for Value Streams to have their own Profit and Loss statements to go along with metrics. This makes it much easier to demonstrate improvements financially.
There is much more to Value Stream Management than can be covered in an OPEX minute. If you have an interest in learning more about Value Stream Management, visit our website at www.emsstrategies.com and contact us. We would be happy to help.
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