Value is a perception of the worth, regard, importance or usefulness of a good or service.  In other words, it is ​the worth of a product or a service when it is delivered to your customers. 

  The Value Stream is the entire set of activities that are required to design, produce and provide services or goods.  In other words, it is all of the activities in your organization that are needed to design, manufacture and deliver products or services to your customers.

  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.

  Visual management is a way to visually communicate and manage various standards, metrics, improvements, safety requirements and expectations. All forms of visual management should be clearly displayed and understood with no explanation other than visual analysis by everyone. 

  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.

  Value added work is the actual work that a customer is willing to pay for.  It can be described as any activity that transforms a product or service from one condition to another, is done right the first time through and somebody is willing to pay for it. 

  Virtual Organizations are an ordinary practice in today's day and age.  A virtual organization can be both permanent or a temporary establishment.  These organizational alliances vary and length.  The different organizations that are forming a virtual alliance work together in an effort to align values and act as one single entity to external customers.  

  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 specific 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.

  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.

  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 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.