Part one of the article on Extending the Value Stream can be found here

By failing to capitalize on improving the extended value stream organizations tacitly accept the traditional purchasing process and the suppliers production and delivery processes (often in the form of mass production rather than a more efficient pull system).

Recognizing this organizations are increasing looking at value stream mapping the extended process – and engaging their supplier base in this activity. Typically the mapping organization will have conducted a lean program first before launching the initiative on its suppliers.

When it comes to implementing improvement projects, by its very nature – extended value stream mapping is more complicated (as it involves external individuals) and careful planning will need to take place before the process starts – this will typically follow the following steps and encompass a multi-disciplined team which stretches from the buying to the selling organization.

1/ Mapping of External Value Stream

2/ Identify suppliers/ capabilities

3/ Develop improvement plan

4/ Implement Lean

5/ Develop sustainment program.

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