Value stream analysis is the foundation of lean processes

Understand processes in depth

Industrial companies are increasingly under pressure: global supply chains have become more fragile, customer demands are rising, the variety of variants is increasing - and at the same time, the demand for speed, flexibility, and resource efficiency is growing. To successfully operate in this tension field, manufacturing companies need a precise understanding of their internal processes. Not only individual machines or manufacturing steps are relevant, but the entire process chain - from customer order to goods dispatch. The value stream analysis (WSA) has established itself as a particularly effective tool to enable this holistic view of production, systematically identify weaknesses, and specifically improve processes.

Origins and conceptual framework

The WSA is firmly anchored in lean management, which is based on the principles of the Toyota Production System. It follows the basic idea that all activities that do not provide direct customer value are considered waste. The goal is to consistently identify and eliminate or at least drastically reduce these non-value-adding activities. It is crucial that the value stream analysis does not consider isolated process sections but focuses on the flow of materials and information across the entire value stream.

Unlike traditional process representations, value stream mapping offers a structured, visually supported method that models both the current state and a desired future scenario. It is thus not only a tool for analysis but also a driver for strategic process development.

The methodical procedure of a value stream mapping

The focus is on creating a so-called value stream map, which depicts all steps of a process in chronological order. This map includes both the physical material flow - from the delivery of raw materials to the shipment of the final product - and the associated information flow, such as ordering, production releases, or control signals.

It is particularly significant that the value stream map is not drawn from the perspective of individual departments but from the viewpoint of the overall process. This holistic view typically reveals a multitude of inefficiencies: unnecessary transports, excessive inventory, media disruptions in information transfer, or uncoordinated cycle times.

In addition to the specific workstations and steps, time-related key figures are also recorded - such as cycle times, setup times, processing times, and idle times. These often become a central driver of insight, as they reveal the difference between actual processing time and total lead time. In many companies, the value-added time is less than ten percent of the total time - an indicator of significant optimization potential.

From analysis to improvement: Value stream design

The real strength of value stream analysis lies in its extension through the so-called value stream design. Based on the current state analysis, a target state is defined that consistently considers the principles of lean management. Various design levers are available: synchronization of processes along a common rhythm, introduction of pull systems, reduction of inventories through supermarket principles, optimization of setup processes, or rearrangement of material flows.

This future state is also visualized as a value stream map and serves as a target image for process development. Concrete action packages are derived from this, which are systematically implemented - ideally within the framework of continuous improvement processes (CIP). Thus, value stream analysis not only provides analysis results but also a structural foundation for the operationalization of lean initiatives.

Cultural change as a component of success

Conducting a value stream analysis has far-reaching implications beyond mere technical or logistical optimizations. It requires and promotes cross-departmental thinking. Since the processes along the entire value chain are analyzed, employees from production, logistics, planning, quality assurance, and often sales must sit together at the same table. The joint creation and discussion of the value stream map creates a new understanding of mutual dependencies and lays the foundation for genuine cross-departmental collaboration.

In many companies, this is the beginning of a cultural change where silo thinking is replaced by systemic process thinking. The language of value stream analysis - visual, comprehensible, fact-based - is a powerful communication tool that promotes understanding, acceptance, and engagement among the workforce.

Digital potentials and future perspectives

Even in the digital age, value stream analysis remains relevant - it even experiences a new dynamic. Digital tools now enable the automatic capture of process data and their integration into digital value stream models. Sensors in machines, ERP systems, and MES applications provide real-time information about production processes, downtimes, and lead times. This data can be used not only for analyzing the current status but also for simulations of target processes or linking with AI-based optimization algorithms.

Nevertheless, the core of the method remains untouched: The VSA thrives on the active involvement of employees and the clear, holistic view of processes. It is not merely a technocratic analysis tool, but a strategic lever for learning organizations.

An indispensable tool of process architecture

Value stream analysis is more than a tool for increasing efficiency - it is an expression of an attitude: consistent customer orientation, willingness for transparency, and the conviction that improvement must occur systemically, not sporadically. Especially in times of growing complexity, the ability to understand and strategically design processes is a crucial competitive advantage.

For manufacturing companies that want to make their processes more robust, faster, and more economical, the VSA is a central tool. When used correctly, it has an impact on multiple levels: It improves workflows, strengthens collaboration, promotes systemic thinking - and lays the foundation for sustainable value creation.