Relation Between Value Chain and Lean?
What is the interrelationship of the Value Chain and Lean?
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Johan Moberg, Sweden
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Value Chain and Lean
Hi! That is a good question. There is a common misunderstanding between value chain and value streams:
- In Lean you mostly talk about value streams, that is, a value creating end to end process flow. Typically a flow similar to "order to cash".
- The value chain on the other hand is based on Porter's description of core functionalities a business needs to have to deliver its business model. A value stream can stretch over one or several parts of a company's value chain.
So if lean here focuses on how to deliver the capabilities in the value chain, the value chain describes on a higher level "what" a company needs to do in a certain business logic.
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