For many organizations value stream mapping is an integral part of their continuous improvement methodology – visualizing information and material flow across the organization and using the results to target efficiencies and reduce lead-times. Whilst this alone offers significant benefits for many organizations for many, these benefits can be increased when the value stream is extended to cover an organizations supply chain. This is often termed the extended value stream map.

To begin with we should first ask the question why would you want to map the extended value chain – well consider how much an organization outsources whether that is in the form of manufacturing or services – with the influence that outsourcing has on the parent organization there is considerable benefit on understanding the mechanics of the process and whether or not it can be improved. Indeed in an organization where much of its work has been outsourced considerably more benefit can be realized by reviewing the extended value stream than by analyzing the internal one. Mileage will obviously vary from organization to organization.

Click here for part two of Extending the Value Stream

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