The flow of your organization processes defines your value stream. Whether the setting
is the manufacturing floor, front office operations or a healthcare facility - the
efficiencies of all processes are measurable. Time is money whether assigned to
product, materials, engineering, design, information flow or patient care tasks.
Applying Value Stream Costing identifies wastes and constraints in your current value
stream.
What is Value Stream Costing?
Value Stream Costing uses activity-based process modeling techniques to capture cost, time and other
operational data along any given Value Stream. It offers a unique view, across the
functional silos or departments which enable any business system to:
- fully understand what it costs to provide valuable services to customers
- measure resource capacities and utilizations
- identify process bottlenecks, and
- perform what-if scenarios based on changing market (or patient) volumes and
demographics.
Going LEAN or Implementing Six Sigma in a Manufacturing or Healthcare Environment?
Value stream costing shows where to start in order to maximize savings, increase process
(or patient) flow and improve operational safety.
The answer to capacity and constraint questions are not stored in any accounting
system because they are not designed to keep score rather than perform "What-If?"
analysis. Value stream costing will actually tell you what value you are getting for your
investment and too provide visibility into the anatomy of your processes.