Unit $9-$ Learning Activity: Value Stream Mapping

Due no later than $11$:$00$ PM EST Sunday of Unit $9$ or as directed by the professor

Value: $3\%$ of final grade

Background

Value stream mapping illustrates the operation of the theory of constraints in both tactical and strategic modes. Each activity or unit is evaluated against a predetermined performance standard, which could be a seasonal benchmark or a progressive ladder. This concept applies to any unit or division, even at the enterprise or corporate level. The underlying assumption is that every unit must contribute measurably to the organization$$s success. Value stream mapping introduces a process flow from each unit, allowing us to assess its impact on the overall organizational goal and bottom line. While some units may be considered $$cash cows,$$ others may be draining resources. A business analyst plays a crucial role in determining each unit$$s value based on performance. For instance, in a retail environment, sections with high customer traffic contrast with areas where customers trickle in and make minimal purchases. Over time, a low$-$traffic section may become a cost center due to staff salaries and space utilization. Alternatively, the unit may be optimized by introducing something that generates traffic and revenue. Analytical skills and sound judgment are essential for a business analyst making recommendations to improve unit performance.

Activity

In this unit, students will demonstrate value stream mapping in class$$an extension of our process improvement sessions. They will draw examples from any business situation that they are familiar with and utilize charts to fully illustrate how performance does or does not meet expectations.