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Seeing the Whole Value
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In response to feedback asking for examples in other sectors and
questions about how to understand costs more accurately, five
essays have been added to the book for this new edition. These
essays demonstrate how real companies have taken on the challenge
of improving their extended value streams working in collaboration
with their suppliers and customers.
The new essays for the book are:
- Spreading value-stream thinking from manufacturers to final
customers through service providers—extending the wiper
example. This extends the value-stream analysis in the first
edition—using the same example of a windshield wiper—through the
auto service system to the end customer.
- Applying extended value-stream thinking to retail—a look at
the Tesco story. This follows the path of an individual
product through a complex retail channel from manufacturer to end
customer.
- Learning to use value-stream thinking collaboratively with
suppliers and customers. This essay demonstrates how a
second-tier supplier convinced much larger partners to embrace
collaborative thinking about their shared value stream.
- Product costing in value-stream analysis. An essay on
adding realistic costing to value streams to more accurately
understand total cost.
- Seeing and configuring the global value stream. This
essays shows how a manufacturer can analyze all of the value
streams in a complex supply network
When the first edition of Seeing the Whole was
published in 2003, the world was in a mad rush to outsource and
offshore in pursuit of suppliers with drastically lower piece
prices. Today the situation is very different; currencies have
shifted, labor costs in many low-wage countries have risen, and the
potential for squeezing further price reductions from suppliers is
largely exhausted. What’s more, high product quality and rapid
response to changing customer demands have proved elusive along
unwieldy, opaque supply streams. Seeing the Whole Value Stream
provides managers with a proven method for understanding and
improving the value-creating process that suppliers share with
customers.
By identifying all the steps and time required to move a typical
product from raw materials to finished goods, the authors show that
nearly 90 percent of the actions and 99.9 percent of the time
required for the value stream’s current state create no value. In
addition, the method clearly shows demand amplification of orders
as they travel up the value stream, steadily growing quality
problems, and steadily deteriorating shipping performance at every
point up stream from the customer.
Applying the method to a realistic example, the authors show how
four firms sharing a value stream can create a win-win-win-win
future in which everyone, including the end consumer, can be better
off.
The workbook goes step-by-step through an improvement process
that converts the traditional value stream of isolated,
compartmentalized operations into an ideal future-state value
stream in which value flows from raw materials to customer in just
6 percent of the time previously needed. The dramatically improved
value stream also eliminates unnecessary transport links,
inventories, and handoffs, the key drivers of hidden connectivity
costs.
The information in the 108-page book is supported by multiple
diagrams, charts, and maps. The main sections of the book are:
- Getting Started
- The Current-State Map
- The Extended Value Stream
- Future States 1 & 2
- Ideal State
- Perspectives on Extended Value Streams: 5 essays.
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