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It’s time to see and then to optimize the entire value stream from raw materials to customer
SEEING THE WHOLE VALUE STREAM, 2ND ED.
ABOUT THIS ITEM
An expanded 2nd edition of the workbook Seeing the Whole
Shingo Research and Professional Publication Award recipient
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 chains. 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 supply chain’s current state create no value. In addition, the method clearly shows demand amplification of orders as they travel up the supply chain, 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 supply chain 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:
The Current-State Map
The Extended Value Stream
Future States 1 & 2
Perspectives on Extended Value Streams: 5 essays
In response to feedback asking for examples in other sectors and questions about how to understand supply chain 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.
ABOUT THE AUTHOR
Dan Jones is Founder and Chairman of the Lean Enterprise Academy in the U.K., a senior advisor to the Lean Enterprise Institute, management thought leader, and mentor on applying lean process thinking to every type of business. He is the author with James P. Womack of the influential and popular management books that describe the principles and practice of lean thinking in production, The Machine That Changed the World, Lean Thinking, and Lean Solutions.
Jones is an advisor to organizations making lean transformations, including Unipart, where he helped establish the first company university in the U.K., Tesco, and Portsmouth Hospital. Jones was the European Director of MIT’s Future of the Automobile and International Motor Vehicle Programs. He is advisor to the European Efficient Consumer Response movement and editor of the International Commerce Review. Jones holds a bachelor’s degree in economics from the University of Sussex.
Management expert James P. Womack, Ph.D., is the founder of and senior advisor to the Lean Enterprise Institute, Inc., a nonprofit training, publishing, conference, and management research company chartered in August 1997 to advance a set of ideas known as lean production and lean thinking, based initially on Toyota’s business system and now being extended to an entire lean management system.
Womack is also the co-author of The Machine That Changed the World, Lean Thinking, and Lean Solutions, with Dan Jones. He received a B.A. in political science from the University of Chicago in 1970, a master’s degree in transportation systems from Harvard in 1975, and a Ph.D. in political science from MIT in 1982. As research director of MIT’s International Motor Vehicle Program, Womack led the research team that coined the term “lean production” to describe the Toyota Production System.
Womack served as the Institute’s chairman and CEO from 1997 until 2010 when he was succeeded by John Shook.
David Brunt has been both applying and researching lean since 1990. His career started in the automotive industry at Rolls-Ryoce Motor Cars. In 1993 his interest in lean thinking led to studying for an MBA in Supply Chain Management at Cardiff Business School under the guidance of Dan Jones.
Brunt has been working with Dan Jones since 1997. At the Lean Enterprise Research Centre he was involved in pioneering action research projects at the individual firm level and across whole supply chains. His work on helping car dealers learn lean was told in Jim Womack and Dan Jones’ book Lean Solutions and in his own Shingo Award winning book Creating Lean Dealers, which he co-authored with John Kiff.
Since 2003 Brunt has been Senior Fellow at the Lean Enterprise Academy. He helps firms design, develop, and implement their lean journey and acts as a mentor and coach to managers making the lean leap.
The son of a Chicago tool shop owner, Matthew Lovejoy learned early about the challenges of owning a business. As an entrepreneur, he founded and grew two successful companies before selling them. He took over as president of Lovejoy Industries, Inc., from his father in 1997 and bought the business in 1999. Today Lovejoy Industries is a holding company that includes Acme Alliance, a strategic partnership of 16 companies in North and South Amerca, Europe, and China.
Lovejoy’s lean journey began in 2002, when he launched the continuing transformation of Acme Die Casting. The next year he moved his desk to the floor and personally spearheaded the lean conversion. He has led hundreds of kaizen activities in the U.S., China, and Brazil to drive continuous-improvement thinking to the shop floor. Lovejoy holds a bachelor’s degree in business from Drake University.
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Lean Enterprise Institute