Lean Compendium

Any activity that processes a product or service according to customer requirements.(Source: TBM Consulting Group http://www.tbmcg.com/de/about/ terminology.php

Any process or operation that shapes or transforms the product or service into a final form that the customer will purchase.

The value analysis process is designed to improve the revenue-cost relationship through the systematic application of known and proven techniques for determining functional structures. In doing so, products, production factors, processes and organizations are to be developed to the highest possible level of economic efficiency. A distinction is made between the value analysis of existing objects (value analysis), which aims to reduce costs, and the value analysis of objects in the development stage (value engineering), which is intended to contribute to cost prevention. Value analysis is characterized by a targeted examination of the functions of the object under consideration and a breakdown into main and secondary functions. Likewise a schematic planning process by means of a work planning is necessary, which is to cause the decision making by a given phase scheme. A further characteristic of the value analysis represents the temporally limited, cooperative teamwork of specialists from different ranges of the enterprise. Heuristic methods of the creativity promotion (e.g. Brainwriting) and for the alternative evaluation (use value analysis) are substantial element of the value analysis. Originally developed for technical objects, it can also be applied to activities, work processes, and the like. In project management the value analysis can be used e.g. in product innovation projects for the representation of the product in its functions, the pointing out of alternative function solutions etc.. (Source: GPM

A drawing that illustrates the flow of materials and information from supplier through manufacturing to customer. Also included are calculations of total cycle time and value-added time.(Source: TBM Consulting Group http://www.tbmcg.com/de/about/ terminology.php)

A drawing that illustrates the flow of materials and information from supplier through manufacturing to customer. Also included are calculations of total cycle time and value-added time.(Source: TBM Consulting Group http://www.tbmcg.com/de/about/ terminology.php)

Value stream management documents, in addition to the daily management of the areas of an organization along the value stream, the complete change process starting with the identification and recording of a value stream (current state map) up to the planned transfer to a target state (future state map, FSM). Value Stream Mapping is a simplified graphical representation of complex operational processes to identify waste and main improvement potentials from an overall view. Successfully applied, value stream design is an instrument for the holistic improvement of the production flow and thus results in cost-reduced production. In addition, individual customer requirements can be processed more flexibly.

A drawing that illustrates the flow of materials and information from supplier through manufacturing to customer. Also included are calculations of total cycle time and value-added time.(Source: TBM Consulting Group http://www.tbmcg.com/de/about/ terminology.php)

Value stream management documents, in addition to the daily management of the areas of an organization along the value stream, the complete change process starting with the identification and recording of a value stream (current state map) up to the planned transfer to a target state (future state map, FSM). Value Stream Mapping is a simplified graphical representation of complex operational processes to identify waste and main improvement potentials from an overall view. Successfully applied, value stream design is an instrument for the holistic improvement of the production flow and thus results in cost-reduced production. In addition, individual customer requirements can be processed more flexibly.

Any activity that processes a product or service according to customer requirements.(Source: TBM Consulting Group http://www.tbmcg.com/de/about/ terminology.php)

Vendor Managed Inventory (VMI), also known as Supplier Managed Inventory, is a logistics means of improving supply chain performance where the supplier has access to the customer's inventory and demand data. How VMI works:The customer's warehouse is monitored by the supplierFilling and managing the warehouse is the supplier's responsibilityThe supplier monitors the customer's inventoryThe customer provides the supplier with additional informationThe best possible replenishment quantity (as small as possible but as large as necessary) and also the timing are determined by the supplier.Since planning and scheduling tasks are eliminated and the material does not become the customer's property until it is removed from the warehouse, VMI offers the customer great advantages.