Value Stream Power
The Value Stream Power is one of the best inventions of the 20th century. If focus is your business on where your business is creating value for its customers. It is a holistic view.
Consequently Value Streams make up a Business System. Processes make up a Value Stream and Activities make up Processes. Subsequently all the Processes between a customer order and delivery make up a Value Stream. Value Streams transend department boundries.
Most businesses will target a department for improving. With that department view, you may totally miss the performance of another department. By looking at your Business System’s Value Streams the Value Stream will tell you which processes need improving.
If you are operating your Business System on Value Streams then you can implement Toyotas Kata Continuous Improvement Program. Toyota uses this program to march themselves towards perfection. The program has two major characteristics:
- Improvement Velocity. The velocity of improvement is about one idea per person, per month, and
- Improvement Direction. Not only is the velocity improvement so high but every one of those ideas is in the direction of business improvement as defined by management.
Above all by implementing Value Streams you will be able to focus on the value you providing your customers along with improving performance through targeted process improvement along with seeking perfection.
Finally review this video detailing how a government could improve a building permit process. This will demonstrate Value Stream Power: