Value Stream mapping is a lean and six sigma tool used to visually understand the flow of materials and information for a given process or set of activities.  The value stream map includes both information and material or service flows that identify value added and non value added activities.  A value stream map is a fundamental tool used to lead waste reduction projects, cycle time reductions and other improvement activities.  

​  Before this powerful tool gained the name value stream map it was referred to as a material and information flow diagram or map by Toyota.

  The Value Stream is the entire set of activities that are required to design, produce and provide services or goods.  Included in every value stream is both information and material flows. When a value stream map is used you can identify both value-added and non value-added activities.  

  Value is a perception of the worth, regard, importance or usefulness of a good or service.  Value is added to services and items in three different ways: transformation, addition of some kind or subtraction of some kind.  

  Visual control refers to methods, devices, activities and or systems which are designed to assist in the management or control of our activities, processes, parts and or machines through visual and or other sensory means.  Visual controls help to:

1. Make abnormal conditions obvious, such as a deviation from a standard.
2. Display the performance or progress of a process, activity or work effort.
3. Provide standard operating procedures or instructions.

Visual Challenge -  Watch the video below and share how many black pens you see.  Then answer the question; Why was it so easy to see the black pens after the 5S?

  Variance is the difference between what is expected and what is actually happening.  In statistics variance is a measurement of dispersion of data.

Reference:  Apics Dictionary, 2015.

Discussion
* What are some examples of variance that you see each day?

  Vendor Managed Inventory programs are a powerful way to leverage an organization's strengths and focus on your core competencies.  Vendor Managed Inventory places the responsibility of selected services and or items on a chosen supplier.  In most cases the supplier will handle all agreed upon aspects, Which would include:

1. Tracking Inventory
2. Ordering Inventory
3. Logistics
4. etc.

   **Discussion Opportunities: Answer in comments below.

•  What benefits do you think a company would gain by pursuing vendor managed inventory?
•  What risks might a company take by using a vendor managed inventory system?

  The vision of an organization is a compelling image or inspirational description of what an organization would like to achieve or accomplish. It is a forward looking and inspirational idea of where you would like to be.  The vision guides the decisions of the current and future activities of the organization.  

 What does a vision do?

•  A vision should drive the development of speciffic behaviors, actions and tactics that support the goals and or objectives of the vision.
• It should unify people towards a common goal.
• It should describe what you ultimately are trying to achieve.
• The vision should help customers (internal and external) understand how value is created and their connection to that creation.

  Variation is the term used to describe the consistency of a processes outputs.  Reducing variation is one of the most important objectives in Lean and Six Sigma.  The reduction of variation improves sigma rating and creates more stable processes that can be improved upon.  There are two types of variation: Common cause variation and Special cause variation.

  The voice of the customer is a process that is often used in business to collect requirements, needs, wants, expectations and feedback from customers.  The voice of the customer is both internal and external.  The voice of the customer allows organizations and individuals to be proactive in understanding the customer allowing them to be innovative and make the proper changes to meet customer expectations.  A great resource when using the voice of the customer in Lean or Six Sigma is a book entitled Voice of the Customer: Capture and analysis.