Enterprise-wide Value Stream Mapping: From Dysfunctional Organization to Cross-Functional, Collaborative Learning and Improvement

Abstract

A value stream is defined as the set of all the specific actions required to bring a product through the three critical management tasks of any business: the problem-solving task, the information management task, and the physical transformation task. However, a headlong rush into adopting lean tools and techniques on the shop floor has resulted in the improvement of the information management and physical transformation tasks only, and has led many organizations towards a state of static process optimization rather than one of sustained lean growth. In this paper, we draw on practical insights from a multiple-firm action research initiative in two companies to present an alternative method for value stream mapping that also incorporates the problem-solving task. This technique has allowed the organizations to achieve not only sustainable improvement in operational performance, but also significant growth in people productivity. What emerged was a product-centric approach to cross-functional learning and improvement, which has implications for both lean theory and practice.