VATUE STREAI'I

MANAGEIIIIENTFOR LEAN
cotlPANtEs, PARTI
BruceBoggoley
ond BrionMoskel
I

I ean mrnut'actLrringh:rstaken rnanuficturing that use large .rrticle provides a fraurework l'o¡
Ihold in incleasinglygrcarer batchesand lorlg pmducdon runs inrplcrlrentingsystems¡nd con-
nr¡rnbe¡sof Uoitcd Stares¡nn¡rLr- ro ¡chieveeconomiesofscale.This ¡rolsnrorc suitedto dre lean corn-
facturingcompaniesro improve p¡ny- lr ir dividcd into th¡ee
rhroughpüt,ellicieDcy,.}cle dnlf, dimc sionr of the lexn m¡nage-
¡nd custolnersatisüciion.These I balt nanuJdctaríngmethods
improveme¡t\ have put prersure . l)eveloping ¡n approprirre
inprcuc thtouqhput,efrcíercy,cltle
on managemeltsystemsgearedt<r butput
tifie, and útstot'et safísfat¡ion, ¡n¡n¡sürlctrt focus
support thc trrdirio al method of pfessurcatl malageñent syste''ls . Organ;zingbv v¡lue stresm
geat.d to sllryott the tladitional ' Cosrilg by valuest¡eam
ne¡hodoJ/katuujrduingthat uselarge
BRL:CL BACCALE| it a s.¡iot prrt- batch¿sd d lotg plodu¿tiotttutts to DEVEIOP¡NG AN
ftt út BMA. Iüt., \p.ti¿li:ir.q it thc
ahíeveecoaonies oJrale. APPIOPTIAIE
úr1tÉ
¿eülop\lc¡tt¿ñ¡1rüptuhtc'tttt¡h\t',.1
d2úk't l,oúslet lfl inaúponte Lt.¡tl
fialt^c¡[¡ f locuS
.A,cóünt¡úr andlúüt p¿4nr út.!,na¡ttryt- a lAan conpaflíes Íeareír,ü!ein their Lean comprniesfocus on cre¡t-
Dun¡\), .nÁ. Llit.liruti.kol exfúí\¿ prozses.foriáentiftíng,de'Eloping,and ing value for cusromcrs.Value¡
i,(tu.ie\ the ¿ereta!'h.i¡of wúl(útrt biflgitU to nafuet new!rcducts and
cre¡ted in thc o¡der ful6ll¡rent
i'úinn.'tion.fú aptfln'¡dl 4üd.li útú seruicesby locatinqlhe wlue ÍeatinS
pl,1"nitq}'n d ,.ütt.l i't iñttttún\ttir!
proccrses,lron selling,to a¡u-
ptoessesnext to ofteaflotherdlrl b!
-¡i t1 .ial dco¡t,L¡|Atuünolsf:¡tñ^dúd ¡tr tmoothlypwesliry one,nit a¡ a litne facturnrg,shipping,and collec-
applfi¡I attü,¡ty-Las¿¿ u¿ndr(,tttn¡ptit' on i¡su6y to tlY ustotlct tion of cnsh,as rvell as afrer-sales
.ipks ¡ó teatqit|rtit.t npo1tntgpro.esr.. support.Valueis also c¡eatedin
.4ú1Nt, nú!f.te,! 'p¿¡kú, rn.l Joünzt ót I I-ea| coúpa ie! an eflha@ these the processesfor identifying,
Cost M¡Dage¡¡cnt d¡lt¡ot' I'od¡dtdr! lalue ercationeÍo4s by oryanizihg dcveloping,and bringing to mar-
1,.¿aR¿4N H. .V¡-S¡(Él¿ F PBi,/sr, protusesiao Jornal wlue streansJor ket new productsand services.l)y
oJ BMA, Iú., ¡nd hd! ntft ¡hd1l25 all prctud' havhgsíñIarfeaturesand locating the valuc' crearing
year\.!pei¿nt. ¡,t údnr-ldfttrntf ¿Ml
dttttibú¡io índtttty. tu hot h.]¿ d rdri proc.ssesrrext ro one anotherand
e¡y{fnn¡dÍefle t posit[ts.ftart¡itt 'l¡,P bv processingonc unit at a time,
a PaÍ I oJthis tuoAaÍ articledis-
.floü .l dn eltctn¡i^ ..ü'p¡ty to vldi¿ttl atssesthe dyu^ffi^ and iñPle enr4-
rvork flows smoothly fronr one
ttl Eutopeai ttü,atorli.fól ¡t X.t.,r
tiot nepsof oganíziry the eftutpdse step to rnother and finally to the
CóryonIia¡ r. t'k.'lttcirlún oJPn,lnú
by valuestrcans.PaÍ II vill aüfts! cüstoircr. This cháin of v¡lue-
Duelo i\t ahl Cr\túet Sú,¡etal tlt.
An¡¡toú¡sCoryonrn4. a,st a W Lú\restt"ans. creatingprocesses is calleda value

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2t
 EXHIB¡TI
FulllllmenLValueslre¿n

strca .A v¡lue stre.rrr] is \rrnpl\ V¡lLresrre.u¡s..n rncludelror. scrc ore¡nized by Frodüction

all the thrngsdonc to crc,rtc'va1uc tbrD just \vh¡t occt¡rsrvithn tbe det,rltnre¡ts. Thesc deparr-
f o r t h e c u s t o n r c rA. l l p r o d u c t ' prodLlctio¡rpl:rnt.Org;LnizarioDs nr¡ts-sonretirles callcd n n¡c¡-r¡f
hrving sr)rilrr ie¡¡rres¡nJ ch.rr wjth tl¡rirhedgoods !ia¡ehouse' ¡r¡ci l¡¡¡¡¡-we¡e designed to be
¡cteristic\ ¡re nr.r¡uñctur.'d in usurlly includc thcm in drt valLLe ) r i g h l v e f t i c i e n ta t p e r f o r m i n g o n c
one v¡luc s¡rc¿nr. It r:ouldbe s.rid st¡cau. Tbe wrrehouse nray bc f r r t r . u l l r s r e p i r r t h e p ¡ o c e i s .A
ú¡r a value:jtre¡ri)is cor)rpo'ed outside!he i¡rnrediateconrrcloi f ¡ o d u . t i o ¡ s t e pc o l r l d b e w e l d r n g ,
of rll producrshl'ing the sarnc the pl.ürtpcople,but it .onrributes s r r r r p i r r g .s u r f r c c r n o u u ¡ i D s e r
routing rhroughrhe comp;rn¡A to both cLr\tol))cr v¡lue rd w¡st! tron. ¡rse¡rbht brrrn-in. hc¡t trc¡t.
t v p i c ¡ 1v r l u e ¡ r r e ¡ n ¡ú i l l t u l t l l l Sinril,rrly,if the operatioo pull\
custornerordersthrough a praces n1¡teri¡ls fi orn ¡nother pl.iDr An org3niz¡tlor) of this kind
likc rhe one in Erhibit L rvithinthc ume organizrtion therr frnrot see thc flolv; it is krc difi
"supplier" u,ill oftcn bc
The v¡luc srrcrm is r,rf n1or. tbrs .Lrlt to idcDri+ A5 \re nrove ;rto
r h a D j u s t t h e r D ¡ n u t : rt (u r r n ! ¡ i n c l u d e d¡ s a p a r t o f r h e v a l u e r ¡ l L r es t r e ¡ n x , i h e i l o w b e c o D r . s
pro.essesAs drpict,rdi¡ E\hrb[ strca¡r- A .omp¡ y lhat sc'lls r r ¡ . r c hc l e ¡ r e r ¡ t h e r e f o r e , s e c ¡ n
1, nr¡nui¡.rtr¡insis just otrr s¡eF drroLrgbdisttibutorsnrry includc lnlD.rgc.urdimprovc thc proccss
i. the lvhole p¡ocessol .erving the distfibutorrs a paft ofits v¡luc The deprrmrental or¡¡niz¡tio11,
rhc custo er rr)(1cre¡tirg v¿lue strc.a¡rs ir¡ ordr¡ ¡o se. thc tlo\ o n t l ¡ e 'o d ¡ e r h ¡ n d , o f t e ¡ b e c o m e s
M.rn¡,proccsses mpport thc nrrt- through to dre en(l clrstonrer. . r r to b s t r c l e t o r c h i c v i n g a u o o r h
ul¡cru¡Lngreps.Sonrccon4)¡nic. A lern org¡r)iz;rtio needsto ilos of thc pfoducr rhrolrgb !he
m ¡ k e t h c ] n i s t ¡ k eo f d ( l l n r n g nr¡nage ¡he ilous of rhc rvo¡k plant. r\ üe ibcLr\ beconr.t
rhcir v3lues¡re¡m,too nirro\1hr .hrough the Vtrluestrernrs.Thi' deprrtmcnr eflicienc,v r,rther rhan
rhcv includeonly the p¡oJLrcriorl entailsa .1ifürent uran¡gemcri ilo\. M¡n¡girrg the flo* oithe
steps.lt i! i¡rPor|]nt to \.c rhr focus lronr the traditio¡al corr ri o¡k deu¡nds an undtrstanding
value srrer¡, as irrcludiDgall rhc p¡ny drat is orgrnizedand mrn o f t h c v ¡ l u e s t r e a m sr n d p u t t i n g
rhingsrequircdto cre:rtevrluc lor aged by firnction. Prio¡ to te¡n into pl,ce org¡Dizrtions,nd cor-
m¡nuñcrurrng,niost conrp¡nics trú1. thrt ¡re locused around

24

M'irh nórñicci^ñ ^l rhó ^ F,,Áh6r roñr^.1"^ri^ñ nr^hih}o.{ u¡irh^LLr nórmic. ^^

thenl.The p¡irrurv purposeofdre
managerin a Le¡nconrp¡nyi. ro
locus on taluc strcaurprocesses-
to rvork ¡orvr¡d irnprovlng rhe
tlow ofthe work and th. achifvc
nent of perfection in qu¡Li¡t rnd LeanThrough-
custonrersairsf¡ction.Tha¡ c¡n Oútcompany&
onlv be achieledrhrougba relrnr- P¿rtte¡s
iess tocus on thc plxce where
vrlue is cre¡ted-¡he valLresuc,uu.

ORGAI{TZING BY YATUE
SIREAM
As lcan manuíacturingrnrtLrrcs
rvithin thc courpanv. it bc'corncs
incrersinglyr)c(essir,v to,1r¡,rd{c
the v¡lue stre¡mi.Manaeers$ iCr
P&L responsibilitvfor thc v.rhre
strerm need ro be estignc.J. sirnplv rnrkL io111e¡rorc. \bu hri ,r tftrnr of people working
Gro\\'th ¿nd ,mproYenre¡t\tr,üe- n¡ke rvhar úc c¡¡d tells vou,.rnd tol¡!'thefto servethe custonrers,
gies for the c,xnpanyuorv rcvolve you nrrke it rmrnedi;rtel.r''.
How- rrcrtrse vrlue, improve their per
around the v¡lue stre¿r¡-A usffirl ever.r produLtion pbnt crn ody f<rrnrrncerneasurenrents every
way ro look rt rhi\ is to inra{ir1e nrole frolrr M¡teri¡ls lle\ourcc rveek.rrd mrke r [x ofnoney
the conpanr mrdc up of serer:rl I'l¡nning (M1{P) to hnba¡ whcn
srnall, entreprcneurial conp,t the ¡nethods.rf lc¡n nr¡nuf¡ctur- YA1UE SIREAT A5 IH:
nies erch on. r(sponsibleror ing hevebeel su(cessful:pplicd. ¡OCUs ¡OR II{PROYE E T
naking their value streama sfcc- Srn¡ll b¡tche.,reliableprocesses, V¡hre \ifcrnrs ¡chieve continuous
r¡culrr succesr.Thrs t'ornl oforga- ellectivc ruachines,rnd regular nrtprovrurent(CI). Lean organiz:r-
niz¡tion ¡ ber! f-orle.rnco¡rprnres production c,vcletimcr are errt¡y tior)sh,rveCI reirnr rssrgnedto
because it simplifies r¡¡n¡r¡e¡rent ¡equi¡en1ents.Moling lronl MR¡' e¡ch vrlL¡esúe¡rr.These ¿ren1¡de
of the ]e:n cornpan-v¡nd bcc.¡Lrse ro k¡nban is i ¡rove trom thr tip oipeople working in dre valLre
ir providesdre lribility for nrnn r.rDne.css¡rvcorntlexityoa rr¡di- stre.rnrbüt n1r) nlre so'rleout-
aging .o¡rtinuóu! nnproverne¡t.
tionirl munutnctnr¡ngto sirnplicity sidex also.Thepurposeoi the Cl
tcu'ü is to rcview the !"kre streanr
tHE SlilPlrctrY oF fHE
VATUESIREAÍII Moving fronr 3 dcpar¡rr'reDt¡l pefl ornu¡rce nle.surcrrc¡1rseacn
oRGANtZAflOlr org¡nrzJtronto .t v¡lue strcáDr \,cek :r)d iDitirte projectsto l¡akc
The vitue slre)m focus gre.rtl,! orsr¡iiz¡tion is: sinilar chnge thdsenre:rsurenr.¡¡sirnf rove.
simplifiesthc nr¡n¿genrent ()1the lith moven¡ent fror¡ i hjghiy Ther. is a pl:tcein lean conrpa-
conpan_r,. ODc book o¡ lc:n a¡d complexorg¡niz¡rioncb¡rr with nies ibr the roF-down, bre)k-
rvo¡ld-chssmanuticturingr has hundredsofcost cer¡ters,thoús¡nds drrou$h kaizcDevents,but astirnc
"the of tr¡ns¡ctions to kccp track of r¡oe\oll.llre e¡lphasisof improve-
the sub ritlc lesso¡sofsLr¡-
plicity ¡pplicd." Lc¡n org¡nizr- people,rnd :r bureaucrrc,r' to thrct' nrent ¡¡()vesro the conriDuous
rions ¡¡e ¡Li¡vs \triving rbr !¡¡- or fou¡ salue sue¡ms and ¡ clear intptor ernent te¡ms within úe
plici!r.-of operation.It j5.of coursc, cut lir)e of rcsporlsibillrl'.
This is v¡llrc srte.rms.Thescte¡orsmust be
ver,vdifficult to r))akcproccsies simplcnor onl,vbecausethe people \lithin dre v¡lue strcims becrr$e
simpie.Theroot crusesof vri.rbil knot' rvhe¡r $ey should focus rher ¡¡urstbe rble to seethe entire
it,v nlust be elinrinatecl to bring úel¡ rvork,but alsobecruscit snn- llow oidr. processes.This \r'¿)'.the
rhe proces\esunder controL. plific\ pcrfornr¡nce reporting. lbcus1\ ill ¡lvar! bc on nnprovnrg
An
ó ¡, €exrmplr
-\¡r,P'r u l x r P L ' ( ' L l rat
oiL Jsinlplici¡v r org:úriz¡rionsúucturc.¡ccounriDg tht flo\! rD.l mcre¡singthc value
rvork s a l¡nban pull svste¡¡. feports,¡nd othfr infr¿srrucrure to the cLrstonrc'n. rhus:voidin g che
wh.I the c¡rd cornes up vo procescs.A rvell-run valuc streanr prtiill of making local inprove-
i

25
ment ¡hat does nor benelit the . M.rnufrcturi¡g Engineering-
There needsro be engineer-
iug rupport availableto ensure
IMPIÉ'úE fl¡IG II{E VA1UE the ócus on continuous
stREAfi ORCAI||ZAttO¡l
Thc proces ofrttainirrg a "a)uc chages.
orgafiizdtíonal . Mri¡rlenance-Therc needsto
stre.rmorganiz:tron follou r an be cquipme¡t nuintenance
orderl,vprogressionsynchro,rous personnei¡'"ail¡bleto linrit
rvith the irlplenrentatiorr of )e.rn equipureutdo$ntine. pa¡ricu-
manufrcnrring. As shou r¡ i¡ s¡rc¡r¡.ln this stage,wirh lern l¡r1!' ir ¡ confraint resource.
Exhibit 2, thir progrc\siono.curs rnanufacnrling rviclespread.rcrosr
in rhrec st¡gcs.Thc progrersior¡'s the phnt. it bccomcsi¡Dportantt() ArsigDingpeople to value stre¡rrs
marurir,vp.uh spccifiesappírpriare ¡ssignp¡rticuhr peopleto e¡ch ol. c.ur I'e ¡ diflcult task.There may
rrep5th¡r crn b€ ¡¡ken asth( ('orr- the value stre¡ms.This rvould be thrce engineersand four vdue
pa¡1vDratures in its nllptcnr.nt.r- (ide:rlly)include not onl,vthe pro- stft¡¡rr. fbr cx¡nlple. Or there
duction pcople but also support rn¡v t'c rupport people with par-
tion oflean rhinkingtcchniquet.
peoplc,such¡s rdnrjnisú:rrior ¡¡d ti.Lrhr specirltiesrequired by all
The first snge i¡t the nr"ruritl
\':rluestr!ün1s.Over the longer
páth occursrvhen lc¡n nr¡nuflc- ralcs¿ d ll)arkc'ting, p!rcb¡sing.
rcrnr. crosr-trainirg c.rnbridge
ruring is beir)g inrroduccd ¡nd Qr¡¡lity Assur.ürce, cost account-
these g¡ps. but in rhe rhort ternr
pilot I€¡n cells¡re being iütpl('- ing. rnd;rll thc othcr peoplc
there ¡r¡y be p€ople üorking ;l
me¡ted.The secondstagroccurs rnvolvedin rnrrragingthe flow of
]norc rhan onc valuestrcarr.
wheu le¡n hasbecoDre\\'ide\Fre.rd uork. Supportpeopleneedto he
Sonrepeoplervorry that a valuc
in the phnt. Ar rhjs stag(, it is dedlc¡tedto ¡ r'¡lue stre¡m in this streanrorganization will requirc
likely that rhe cellsthroughc'utdre st¡gc in order to provide the ser rrore peoplebecause, for example.
pl;rnt hl'e been li¡kcd into talue vices required io nrrint¿iü the úerc is onlv one production plan-
\t¡e¡nrs by prod!¡cr group, \\ hich rarc of productior. Exrlrples oi ncr ti)r the lictoryi yet, this woik
crossorgalljz¡tion¿llines \vrthrD lupport fur)ctlonsth¡t need to be r)Dw nc'cdsro be inco¡poratrd
the pla¡t- The logicrl ne)it st(p rnore ¡v¡ilable to ¡ le¡n r'¡lue i¡to the v¡lrrestrelns.This c¡n be
the! is ¡o introduce¡ valucrtrernr st¡e¡nr ere lisrcdbel()w: oler.orne in two s'ays.First,nr¡ny
organizationinto th.' phD¡.The . ProductionClontrol-With the oi theseadnri¡istr¡livetaiks crn
third sr¡gr eDtrils¡ dc.ision ro larú,rr asthe prilcipal produc- b. elinrin¡ted as le¡n nrnuf¡ctur
org¡nize the e tire buji¡d\! inS nr¡rrores wthin the pl¡nt. Pro-
tion conrrol rnechanisnrepl¡c-
¡round value\tre¡¡rs. In tbis srage, duction plaDning,for cr¡mple,
ing the rvork order,thereneeds
the valuesrre¡m bcco¡rrcsthe pri- brconre\ unnecess¡rywhen an
be continuousrnanagementof
marv organiz¡tioDrlschene.¡nd effectivepull systen is in place.
dre size¡nd nunbcr of&¿nü¡¡rs
rhe depirtmert¡l strr¡cturf.if it Sccond.crcss-tr¡iningc¡n be used
rcquired fronr the poiut of
remrins ¡¡ ,ll. pcrfornr! ¡ rub to pro\ide the suFport depart-
vie\r' of¡chieving valuestre¡n)
lidiary role. It ¡ not nec.ss.r'yto nrent\ <killsin erery valuestreanr.
targrr rate otproduction.
¡edraw the companys orgrriz.r- I¡r d¡rs,tcen¡¡io,the original p¡o-
. Traosport¡tion-Thereirceds
don chart irl the short term.wbcn duction pJannerjoirx onc valuc
to personnelresponsible lbr
iean mrnuiacturingi! finr beirlg s¡rc¿¡rrand trains peoplc iü thc
inrroduce,i rnto th. co¡\)rnv ensu¡jn€!thrt the right ¡nxteri
orbc'r value streams.Thc produc
üere n no n.cd to uke or$¡ni- alsand toollng are ar rhe cells tj{n ll¡nner. in turn, can bc c¡orr-
z¡tion¡l chaDlies.Thepi)or cells ¡r the tirnc ncededto '¡ainraiD ü¡nred in inventory coDtrol,pu¡-
ánd orher le)n changcsc.rn be the pnrducrionflorv .hrsi'rg, cost repo¡ting, ¡nd other
achievedNirlroLrtmajor disruP- . Procurement-There n€edsto srpp.'rr finctions. In this way,the
tion to rhe compxnyl\deF¡r neD- be persornel in the value v¡lue \rre¡ms rvill cont.ri¡rall the
srreaorrcsponsibJe lor ensurirg rcquiredskills,rnd ¡ro ¡dditional
Moving to the seco¡d rr!{e oi lh¡t D)rtcri.rlrare re.eivcd aro¡n pcople rvill be needed.
rhe ¡D¡turit) prth. it bc(o cs supplicrrin dre right quanciries It ir .onnnon lbr the department
necess¡r)_to n¡¿natt bY ratuc \trlrcrurero re'¡¡i¡ nr pl¡ce while

26
rhev¡lüe st¡earn orgnizalion is irr its ther should not \top an organjze- Thcrc .rre rhv¡ys sonre people
infrnc\'.In dris c¡se,people rtill rion f:ronrbeginni¡g to ser up a withir rhc plaDt or orgaÍization
reportro their functiolul bosser,but th¡t do not ilt into lhc valuc
are assigr.'dto rvork in particul,rr A conrnrorrquestionrel¡tcs to srre¡rns.These rv nrclude:
v3luestrea¡)llcanle.This,¡dfi\ ,¡r¿r- the nurnberofpeople in the \,¡lue . I'cople lwho\ework doer not
¿,{rr¡cl¡strucrurei5 oftcn rhe nr(xt strerms.Anorhcr useful rulc of appl-rro any prrticular r:aluc
convenie¡t w:v to ¡n¡ke the ch¡ns'es rhunrb is thrt r vrlue stre¡rrl sÜe Ds-for ex¡mple.¡ HR
r,vithout disrupring rhe organiz:tiol should.ont¡in betwcen 25 and pcrso,tor :t.lirarrriziaccoutt-
of the comprn¡ Contpanicsrvith 1l)l) pcoplc. Whcn i cont¡ins r.rnt.Other e\rmples would be
largeand con,pler opentiousnt<xt nrorc rhan l0r) people.it nill noc dre l'l¡rt ¡un¡ger or the ñcili-
oílen employ the nr.rtri-tedorg.lti hrve the ¡ur¡ll-ct':rm tocus
zation.Theylind üxr their sizerrrd reqLriredfor rhe v¡luc rt¡c¡m to . l,.ople r.ho support rhc value
complcxit,vnrakesit nore co¡¡ve pnrsper.Ifit h¡\ lessdran twenty- strerms.However,their work is
nient to ret¡in thc dcp¡rtnrenrtl 6r'e.rt rvi11not have euough peo- rot crsilv split betrveeoeach
structure.Haling $id thrt, conrP¡ ple ro run .rn efi¡ctive opcration. v,rluestre:rnr-for cxarlple,the
ni€s th¡t make the radicrl change Although thesegrlidelircs h¡ve I f p,:opler,rüo kecp thc cour-
quickl,vare ot-tenrerv:rrdcdby lrxt otieD bec¡) sUccessfull)- violxted,
and radicrtimpll)lenrcnt.S¡1all¡¡rd rhe)' ¡re usepoirts ofdeparturo in . I'coplc rvho rlo c¡os-vatue
mediu -sizedorganizatitrns rhrrost settirg up rhe value stre¡rnstbt strearrrwork-tbr example,it is
alnays uke tht le:p ofredraoing the the first tinre. comrnon to I]¿\'e¡ QA r1lln-
orgenization.h.l¡t to reflect v.riuc A v:rluestrean:shouldrepresent ¡ger ouKiderhc aaluc'tre¡nr.
srrc¡nl nl¿naijeü1ent,ab)ndoring ¡ :igni6cant part of the blrsiness. 1lús pcrson\ rcsponsibilities
úeir ñrncdon'Ll org¡niz¡hons. Ilcnember.it is essentially ¡ nini- nright he to adDlinisterthe
Once rhe tcanr;sin placernd the businessrvithin the whole. Ir i\ lSO9lll)0pf)cess,certi8rthe
complexiriesof thc organization imporrant not to have too mny tr.rnringofQA peoplenithin
heve been resolved, thc people value streanrr.lt is cor¡n1on to rhc v¡h¡e srre¡rrs,e¡sr¡e consis-
quickly gei f¡cused on iDcreasi¡rg ter.\ ilr quality rnerhodsacross
hrvc three priN¡ry v¡lue strea¡lls,
value. rnaking iutprovelnent, attd v¡lrrerneanrs,:¡nd so forth.
and then h¡vc a lbur.h th¡t con-
nrakingmore rnonry in their rrlue
r¡ins rll dre odds and endsth¡t do
srre¡m ofganiz¡lions.There üe uo The cnd resul¡ is rn organiz¡tiorl
nor flt well ¡üy|hcre clse. ln
othcr deprrnncnts except for rhe rvhtre the nrrjorit.v of people
cstablishingtlre valuesrreamorga
tew people provicling support or rvork in dre prinrrry vrlue rtranrs,
nizxtion, it rs uscful to keep in
adnli¡istr ive funcrionsoursideol rncl therc ¡re ¡ ie$' vestigial
Driod that it is not Decessary to
solve rll the problemsup r-mnt.If depurtr¡enGnrpporÉ¡g the opera-
Problañr cnd b¡üca you get rhe rhrcc prinufy v¡lue ti(nr.Thesesnull dep¡rtments)¡ay
srrernrs working rvel),you will be orgrnizcd in the tr¡ditional
Setting up ¡ \?luc stre¡¡¡ org.rni-
lca¡n r¡olc ¡bout rhe pro.esses \\,¡y.or the),rDaybc lumped into ¡
zádoi can presencdimcultier.lr is
and bc able to bettcr addressthe single"cost of doirg business"
inrportanr to keep ¡n rnind rh¿t it
js nor neces\¡ryto solve;rll thc problcn xsth€v a¡ise.Asproducts tlep.rrtncrt for budgeting and
problenrs !(' bc.rble to rake in dre fou¡th valuestreambeconrc nrarlgenrentpurposes.I
progro$.h is ¡ Lcanrule ofthurnb more signific.rnt they c¡n be
grouped to fo¡¡ll a new v:rlue Nole
ro move ehcrd srelLb,v-strp-value L s. honb.'sú. ¡¡.i.¡r¡n.It¡r/dcl,s l¡rrr[¡-
st¡eanrsare like this. R.trely c.ut :r srre¡rr, or combined into one of rfl¡(: lltr l¡i'r Ltl.snx¡,li¡irt,l/'Jt@,(Ncv
perfe.t v¡loe st¡eanrbe set up. trlrt \1rl:snnon * s.hü{.L 1936).