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Value Stream

Attain Profound Knowledge of Your Business/Manufacturing Systems

Current Situation

The Rolled Throughput Yield (RTY), which is the percentage of the original product or service that makes it through the business system within specification, is an important metric for all companies. The Takt time is the time that sits between products or services delivered to a customer. If either the RTY or Takt time is not meeting company satisfaction do you know where to go to improve? Gain the Profound Knowledge of your business system that Malcolm Baldridge says every executive must know.

You don’t know where your system needs to be improved? Products and services start with a customer request and end with a delivery to the customer. Between request and delivery lies a business system. The business system can be complicated, intricate and nuanced. Who in your company today, can explain the details of your business systems in enough detail so that you know where to improve them?

If you don’t understand your business system in enough detail, you cannot improve it. If you don’t improve it, you leave yourself open to competition.

Remedy – Value Stream

Lean Business recommends that you look at the advantages of Lean Six Sigma. One advantage is a Value Stream. A Value Stream is performed on important business systems that management targets for improvement. A Value Stream is an exercise that follows the bits or products starting from when a service or product is ordered all the way through the business system to the point the final product is delivered to the customer.

Lean Six Sigma is designed to accelerate flow and reduce variance in an organization and remove as much waste (or non-value added activities) as possible. Find areas to improve and improve them. This has the effect of accelerating your business system, removing cost from your business system, and increasing the quality of the final product by performing less action on it.

Value Stream High Level View

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