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M02 S01 Course Notes

The second principle of Lean Thinking focuses on identifying the value stream, which includes all activities that deliver a product or service to the customer. This involves creating current and future state value stream maps to visualize and eliminate non-value-added activities. An action plan is then developed to bridge the gap between the current and future states, enhancing communication and efficiency within the organization.

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10 views3 pages

M02 S01 Course Notes

The second principle of Lean Thinking focuses on identifying the value stream, which includes all activities that deliver a product or service to the customer. This involves creating current and future state value stream maps to visualize and eliminate non-value-added activities. An action plan is then developed to bridge the gap between the current and future states, enhancing communication and efficiency within the organization.

Uploaded by

asad
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Module 02- Section 01 - Second Principle of Lean Thinking

Identify the Value Stream


Draw a
Value Stream Map
(Current State)
Identify the
Material Transformation Process
Draw a
Future State Map
Develop the
Action Plan

nd
- The 2 principle of Lean Thinking is to identify the value stream. In order to do this, you really need to
know what a value stream is. It is all of the activities VA and NVA that deliver a product/service to the
customer.
One way to do this is to draw a map. We call this a value stream map. This map would help identify all
those activities as well as the processes to deliver the product or service.

Value Stream mapping is a paper and pencil exercise. We really don’t want anybody to have any reason
for not doing the value stream mapping process. Now how this works is with the paper and pencil we are
going to go through the material transformation process first.

We usually start by drawing the process closest to the customer (i.e. where the product is being
delivered) and work our way upstream through the process. That process as we are going through it and
calculating information, we are going to be asking people what they think about the material
transformation process and what the challenges are. We also include the material and information flow
on the map.

We are now ready to finish the future state map. We are now brainstorming and looking for ways to
eliminate the non value activities.

The future state map answers the question. “What would the process look like if we were able to eliminate
some of these Non Value Added (NVA activities)?” That alone is a very powerful tool, Just asking `What
if?” And then by drawing you are now starting to create your future.

The action plan connects the current state and the future state. The action plan is a list of activities that
are needed in order to transform your company from the current to the future. Although the skills for
drawing value stream maps is a course onto itself we will introduce you to some of the concepts and
icons needed to run through a case study and simulation of this process. Our goal with value stream
mapping is to communicate amongst our organizations, utilizing a standard language.
If you have two cross functional teams doing mapping within an organization, each team should be able
to look at another’s teams map and know what is happening.

Next Step is the second principle to lean thinking is to Identify the Value Stream.

Course notes, Lean 101, Module 2 Section 1


http://www.lean101.ca
Now what the value stream is for Retail is the customer isn’t it? A customer comes in and there is the
value. The value stream is relating all activities, waste included value added or non value added that
satisfies the customer needs for the retail side. In the PAL manufacturing side They have many different
products so we have a little bit of a challenge. We said that the cylinders were going to be the value
stream for them, not compressors, washers or anything else, sprayers. We said cylinders in particular. It
allowed us to focus on getting the job done for that product group. Even within retail, what do you think
we are picking on as a value Stream. Is it every item in the store? It is not.

What items are we really focusing on improving? (Student response, Surplus?, rest muffled, large ticket
items?)
No, yes and no, they are included in promo aren’t they. Okay, promo is really where we are focusing the
improvements. So that’s where we kind of are gearing down to.

Ok

IDENTIFY YOUR VALUE STREAM

Course notes, Lean 101, Module 2 Section 1


http://www.lean101.ca
Course notes, Lean 101, Module 2 Section 1
http://www.lean101.ca

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