Introducing a strategic perspective in lean thinking applications through system dynamics modelling: the dynamic Value Stream Map

Abstract

PurposeLean Thinking is an operation management discipline which aims to identify, map and analyse the activities forming a process to detect “value waste” and outline the most effective flow of activities to execute in sequence. Process mapping is often developed in lean projects through the use of the Value Stream Map (VSM). Like many other management tools, the VSM adopts a static and non-systemic perspective in the representation of an organizational process. This may result in the implementation of Lean projects inconsistent with the overall organizational long-term strategy, thus leading to dysfunctional performance. In order to overcome this limit, the paper suggests combining VSM with System Dynamics (SD) modelling.Design/methodology/approachThe paper is based on a review of the literature on VSM. This review is matched with an analysis of SD modelling principles aimed at explaining the practical and theoretical contribution of this approach to operation and strategic management practices. An illustrative case study is then provided to explore the practical implications of the proposed approach.FindingsOur results show that SD modelling provides robust methodological support to VSM and Lean Thinking due to its inner characteristics, namely: simulation, systemic view, explicit link between system structure and behaviour and effective visual representation.Originality/valueThis research proposes a novel approach to design VSMs aimed at fostering a strategic perspective in Lean Thinking applications. Such an approach connects two fields of research and practice – i.e. VSM and SD modelling – which have traditionally been kept separated or, at least, partially combined for specific organizational sub-systems, thereby neglecting a broader strategic view of the entire process system.

Disaster management and emerging technologies: a performance-based perspective

“…In the broad management field, the value of simulation is highly recognised when experimentation in the real world is not feasible because of time, cost or ethical constraints (Davis et al , 2007; Sterman, 2014; Noto and Cosenz, 2021). These kinds of situations characterise the contexts in which DM operates.…”

The Influence of Lean Management Practices on Process Effectiveness: A Quantitative Study in a Public Institution

“…Therefore, the incorporation and application of organizational practices from different and complementary management systems may be helpful to get better process effectiveness. In this line, the Lean thinking management discipline is very applicable to outline an effective flow of activities to be done through the detection and analysis of "value waste" activities (Noto & Cosenz, 2021). By applying Lean practices, organizations can improve processes and turn them more effective creating mechanisms to the accountability of political actors.…”

“…Some difficulties have already been verified in organizations, what includes the public ones (Radnor & Osborne, 2013). Noto and Cosenz (2021) describe that in organizational systems with several overlapping and interconnected processes at different organizational levels, applying only a few Lean practices focused on improving a single process becomes ineffective. In some public institutions, political aspects and the change of government over time periods (i.e., 4 years) can influence the continuity of actions and changes already underway, which undermines the long-term vision essential for the Lean system.…”

Development of an Industry 4.0-Based Analytical Method for the Value Stream Centered Optimization of Demand-Driven Warehousing Systems

“…To overcome the challenges described in the previous paragraphs, the article presents a test method that allows the selection of an optimal material handling strategy covering the entire value stream in relation to demand-driven warehousing systems. Several value stream methods have been used in the literature [18][19][20]. It is important to note that value creation processes are divided into three major parts:…”