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Value Stream Mapping and Hoshin Planning

September 9, 2011


It’s pretty easy to see how Value Stream Mapping helps out in operations planning or short-term planning (one year or less time-frame). But what about using VSM for strategic or long term planning?

Here are two answers for that:

  1. Create Extended Level Value Stream Map
  2. Create Ideal State Value Stream Map

As you get better in your lean thinking, you will discover that involving your customers and suppliers is the right thing to do. Using your Extended Level VSM can help tailor your strategic long term or Hoshin plan to help improve your market position. Seeing what is important to your customers and suppliers by getting them involved in your Extended Level VSM focusing on a longer time frame (three to five years) will help build a solid strategic plan. This, of course, means getting top management from the supply chain actively involved. Another way VSM can help strategic planning is to create an Ideal State Map for a value stream. Create an ideal Future State that is about five years out. This will help determine “breakthrough” strategies as part of your strategic planning.

Some organizations are seeing the benefit of using Hoshin Kanri as their primary strategic planning and execution process. It might seem a little “chicken and the egg” to say should we have our Value Stream Maps first to help direct our planning efforts or should our planning efforts drive our maps? Well. The simple answer is “yes”. Part of Hoshin is to review previous plans including Value Stream Maps. Once a strategic vision is set VSM can help drive the right projects to help achieve the future state.

Join us for a Free Webinar – Introduction to Value Stream Mapping September 29, 2011

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