Smart Factory Glossar

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Value Stream Management – Smart Factory Glossary

Value stream management refers to the systematic recording of the actual situation in a production facility, which is used to derive a target concept and break it down into individual work packages. The aim is to optimize production step by step and digitalize the processes. Value stream management is part of lean management and an important building block on the way to perfect production.


Steps of the value stream management

  • Identify strategic targets: To transfer the corporate strategy into the production strategy, a number of questions need to be answered, such as those relating to the primary corporate objectives, production processes, and information flows.
  • Create a value stream analysis: Production processes of individual products or product families as well as the processes in support functions are methodically recorded and visualized in a value stream map. The entire process is examined, from ordering raw materials to shipping the finished products. The presentation highlights weaknesses and shows potential for operational process improvements.
  • Develop a target concept: The value stream mapping can be used to analyze measures leading to the goal and develop the target concept. The target concept represents the target of the value stream as well as the information and support processes with the ultimate objective to become lean and digitalized.
  • Create a roadmap / implement concept: A roadmap reveals a specific way for companies to achieve their Smart Factory goal. The roadmap illustrates upcoming tasks of work packages and digital systems that can be implemented. Regular performance reviews ensure that everyone involved in the project has the target in mind and is working towards achieving it.


Benefits of value stream management

  • Records systematically, objectively, and quickly the actual situation.
  • Identifies weak points and areas of improvements from lean management and digitalization.
  • Incorporates the strategic framework for production.
  • The target concept outlines a feasible target that is tailored to meet the customer's requirements.
  • Precisely defined work packages provide transparency for all people involved, in the shop floor and also for management.


MPDV Group supports value stream mapping

We advise to get expert support to conduct a thorough value stream analysis. Perfect Production GmbH, which focuses on lean management, takes an integrated approach: management consultants analyze the entire value stream, including the interactions between production, administration, and the IT infrastructure. This allows the complexity of the processes to be minimized and the daily workflows in the factory optimized. MPDV's Manufacturing Execution System (MES) HYDRA X and the Advanced Planning and Scheduling System (APS) FEDRA provide suitable software solutions for digitalizing production.

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