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Cross-enterprise value stream assessment

Christof Oberhausen (Faculte des Sciences de la Technologie et de la Communication, Universite du Luxembourg, Luxembourg City, Luxembourg)
Peter Plapper (Faculte des Sciences de la Technologie et de la Communication, Universite du Luxembourg, Luxembourg City, Luxembourg)

Journal of Advances in Management Research

ISSN: 0972-7981

Article publication date: 8 May 2017

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Abstract

Purpose

In most cases, the conventional assessment of value streams is based on key performance indicators (KPIs) like the share of added value, the degree of flow or a comprehensive lead time analysis. To evaluate cross-enterprise value streams of manufacturing, business or service processes in detail, a holistic methodology is needed. The paper aims to discuss this issue.

Design/methodology/approach

In this research paper, the assessment of value streams within complex cross-company networks is described. After a presentation of relevant KPIs in the fields of value stream management (VSM) and supply chain management (SCM), an approach for a cross-enterprise evaluation of value streams on different levels of detail is shown. In addition, the use of an absolute VSM evaluation, in contrast to a relative VSM assessment, is examined.

Findings

Based on a uniform and well-balanced set of KPIs and other VSM and SCM parameters, a performance assessment on different levels of value stream detail is enabled. Further investigations reveal the advantages of a relative compared with an absolute VSM assessment.

Research limitations/implications

In addition to a comprehensive overview of existing KPIs for a value stream assessment beyond company borders, a holistic and multi-level VSM approach is presented in this paper. In contrast to existing VSM approaches, the described method allows an evaluation and subsequent improvement of value streams within supply chain networks. Up to now, the presented approach for the assessment of cross-enterprise value streams has only been tested in specific industrial environments. In future, the proposed methodology shall also be validated for other process types like business, service or further manufacturing processes.

Practical implications

The described cross-company performance measurement approach shows a high practical relevance for organizations operating in supply chain networks. Due to the integrated use of different VSM parameters, the evaluation of highly interconnected value streams across corporate boundaries is facilitated. By means of a case study, the proposed methodology is validated under real industry conditions and proves its practical applicability.

Originality/value

One of the novel features of this research is the extension of the traditional VSM method with respect to a relative evaluation of value streams based on a set of significant KPIs. In addition, the allocation of these KPIs to different value stream layers and categories leads to an innovative approach for a multi-level assessment according to the needs of the specific VSM application, e.g. a more standardized use of VSM in complex supply chain networks.

Keywords

Citation

Oberhausen, C. and Plapper, P. (2017), "Cross-enterprise value stream assessment", Journal of Advances in Management Research, Vol. 14 No. 2, pp. 182-193. https://doi.org/10.1108/JAMR-05-2016-0038

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited