Value stream

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The value stream , Engl. Value Stream , encompasses all activities , i.e. the entirety of all value-adding and non-value-adding business processes that are necessary to produce and offer a product or service , whereby the stream can also go beyond the company boundaries; see extended workbench . It is a term from business administration, especially in the area of production planning and control . The value stream concept is used in so-called value stream management.

The total value stream, i.e. all material and information flows within a producing or non-producing unit, comprises three types of activity:

  1. Value-adding activities within a value stream,
  2. Activities that generate no value but unavoidably belong to production (idle times) or service provision (waiting times), and
  3. Activities that generate no value at all and could be avoided ( waste , Japanese muda ).

The value stream concept, with the " value chain " ( Value Chain ), a concept by Michael Porter are compared. The complexity of both approaches varies depending on the application.

criticism

Very simple model approaches try to eliminate all waiting or waiting times. Such an attempt to eliminate all non-value-adding times, however, leads to less robust or even unstable systems, since a system that is stable in terms of quantities must always contain buffers according to the principles of systems theory .

See also

Value stream mapping

source