In this video, learn about value streams that support lean enterprises.
- [Instructor] At the epicenter of every lean accounting process, is something called value streams. The identification and mapping of a lean enterprises value streams can be rather complex as it relies on a combination of lean expertise, deep subject matter knowledge, and the ins and outs of business processes. Now, whilst we don't have time to cover how to identify lean value streams, there's a huge body of knowledge out there. Why not try talking lean into your LinkedIn learning search box? And given that the accounting aspects of lean support an organization's value streams, its certainly a concept that we at least need to touch on. So, what are value streams? How do you find out what they are? And, where does accounting fit in? Value streams describe the flow of work, from start to finish in order to produce an end product or service that is fit for customer use. Think of this in terms of staff, just going about their day jobs, all the links in a chain, working towards the creation of a common goal. That's right, it's all about the customer and in particular adding value by removing waste. And this brings us to the next critical aspect of the value stream process, figuring them out. As I alluded to earlier, identifying value streams is rather complex and calls for expertise in both lean and also the business. lean value stream mapping, such as this one here is a tried and tested tool that usually complements the value stream identification process. Whilst work often focuses on the product level, what lean ultimately does is summarize these into like product families or groups based on similar flows of processes or business operations. Now, you'll notice that we haven't discussed accounting just yet. And that's because up until this point, accounting doesn't really have a role to play whew, you might be thinking if you're an accountant. But I'd caution against being completely removed from the value stream identification process as accountants will arguably have the most important role in all this, building and maintaining the metrics and KPIs, that monitor value stream performance. So, that's the fundamentals of value streams and how lean accounting ultimately enables businesses to improve this service offerings.