Value Stream Analysis Provides
the Improvement PlanAnd
Kaizen Events Make It Happen
A value stream is the sequence of work steps that make value ow from
customer request to customer fulllment. In the case of a manufactur-
ing rm, the value streams within a given operation are usually the key
product families that are produced. Each family of product normally has
somewhat dierent ows and key processes—and that is its value stream.
At the start, crossovers between value streams may disrupt the ow, but
these are usually eliminated as the improvement eort progresses.
In a health-care environment, for example, a sequence of services makes
up the individual value stream. A patient diagnosed with AMI (acute
myocardial infarction, a heart attack) will follow a specic series of work
steps for further diagnosis and treatment, through discharge and billing.
ese steps form the value stream. In the case of the British Royal Navy,
an aircracarrier is a single (although complex) value stream; its output
is sustainable sortie rate, that is, the ability to keep more planes in the air
that can defend the eet or attack enemy targets.
So a value stream is the path of work through which a service or product
ows to a customer. It is important to get the idea that it does not matter
whether the value stream produces a product or a service, because the
concepts still apply in roughly the same manner. To take the health-care
example, edaCare initially looked at the value stream within one of its
main operations. e initial-state value stream analysis (VSA) is shown
in Figure4.1.
40  •  Leading the Lean Enterprise Transformation, Second Edition
e creation of the initial-state value stream is done, quite literally, by
walking the value stream step by step. It is critically important to deter-
mine the actual work practices that are being followed day to day. is
walk through the world of actual work is always eye-opening. It is never
as the paper or computer says it is. ere will be tasks you thought people
were doing that they are not doing. And just as oen, they will be doing
daily work tasks that you had no idea they were doing.
What you nd is that no one in the entire organization can tell you all
the steps in the current value stream. e individuals doing the work do
not know what work others in the value stream are doing, so there is a lot
of rework designed into today’s processes. You may nd that workers have
been trained by talking to the outgoing worker or by his or her boss for a
short period. e result is that they walk away with a list of work steps to
Business Case:
Value Statement
Key Requirements
Value Stream Map
Area: Home IV Infusion
Increase production efficiency
Decrease delays for patient
Capital Cost Avoidance
Provide safe, effective, and
accurate meds and information
to the patient at lowest cost
Technician Involvement
USP Compliant
Order from Doctor
Cost Avoidance/Rent Reduction
Reduced Inventory $
Reduced Patient Flowtime
Increased Quality for Patient
1 BY 1
• Go to the Gemba
• Walk the Gembutsu
Profitable Lean Conversions rough Involvement
Current State
edaCare: initial-state value stream map.

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