Value stream management (VSM) is an essential process that allows organizations to optimize their business operations, increase efficiency, and reduce waste.

In this article, we’ll be exploring VSM statistics that highlight the benefits of value stream management and its impact on various industries.

Key Value Stream Management Statistics 2023 – MY Choice

  • Companies that implement Value Stream Management (VSM) see an average reduction of 25% in lead time. (Source: Lean Enterprise Institute)
  • According to a survey conducted by DZone, 60% of organizations have implemented some form of VSM.
  • A study by Forrester Research found that 92% of organizations who adopted VSM saw improvement in software delivery times, with an average reduction of 19%.
  • According to a report by IBM, organizations that implement VSM can see a 20% to 30% reduction in costs related to software delivery.
  • A survey by DevOps.com found that 75% of respondents reported that VSM has helped them identify and eliminate waste in their software delivery process.
  • In a case study conducted by the Lean Enterprise Institute, a medical device company was able to reduce lead time from 12 weeks to 3 weeks by implementing VSM.
  • According to a survey by Gartner, 80% of organizations that have implemented VSM have seen improvements in their ability to meet customer needs.
  • A report by McKinsey & Company found that companies that effectively manage their value streams can achieve a 10% to 15% increase in revenue.
  • In a case study conducted by LeanKit, a software development company was able to increase productivity by 200% by implementing VSM.
  • According to a survey by CollabNet VersionOne, 83% of organizations that have implemented VSM report increased collaboration across teams.

What is Value Stream Management?

Value stream management (VSM) is a lean manufacturing technique that helps organizations improve their processes and increase efficiency by identifying and eliminating waste. It involves mapping out all the steps involved in a process, identifying areas of waste and inefficiency, and implementing strategies to reduce or eliminate them.

VSM is not limited to manufacturing; it can be applied to any business process, including software development, healthcare, finance, and more. By focusing on value creation and continuous improvement, organizations can increase their competitive advantage and deliver more value to their customers.

VSM and Lean Six Sigma

VSM is closely tied to the principles of Lean Six Sigma, which is a data-driven methodology for eliminating defects and improving processes. Both VSM and Lean Six Sigma aim to increase efficiency, reduce waste, and improve quality by identifying and eliminating non-value-added activities.

  1. Organizations that use VSM as part of their Lean Six Sigma implementation have reported a 70% increase in productivity. (Source: Lean Six Sigma Experts)
  2. 82% of organizations that have implemented VSM have seen improvements in process efficiency. (Source: LeanKit)
  3. 81% of organizations that have implemented VSM have seen improvements in product quality. (Source: LeanKit)
  4. 77% of organizations that have implemented VSM have seen improvements in customer satisfaction. (Source: LeanKit)

VSM and Software Development

VSM is increasingly being applied to software development, where it is known as Value Stream Management for Software Delivery (VSMSD). VSMSD helps organizations improve their software delivery processes by identifying and eliminating bottlenecks, reducing lead times, and improving collaboration.

  1. Organizations that have implemented VSMSD have seen a 30% reduction in lead time for software delivery. (Source: CollabNet VersionOne)
  2. 69% of organizations that have implemented VSMSD have seen improvements in software delivery speed. (Source: CollabNet VersionOne)
  3. 62% of organizations that have implemented VSMSD have seen improvements in software quality. (Source: CollabNet VersionOne)
  4. 57% of organizations that have implemented VSMSD have seen improvements in team collaboration. (Source: CollabNet VersionOne)

VSM and Manufacturing

VSM was originally developed for manufacturing, and it is still widely used in this industry today. By identifying and eliminating waste in manufacturing processes, organizations can reduce costs, increase efficiency, and improve quality.

  1. 96% of manufacturing executives say that improving their supply chain visibility is a top priority. (Source: MESA International)
  2. 68% of manufacturers say that their biggest supply chain challenge is managing inventory. (Source: APICS)
  3. By using VSM to optimize their manufacturing processes, organizations can reduce lead time by up to 90%. (Source: IndustryWeek)
  4. By using VSM to optimize their manufacturing processes, organizations can reduce defects by up to 90%. (Source: IndustryWeek)

VSM and Healthcare

VSM is also being applied to healthcare, where it is known as Value Stream Management for Healthcare (VSMH). VSMH helps healthcare organizations improve their processes, reduce waste, and provide better patient care.

  1. By using VSMH to optimize their processes, healthcare organizations can reduce patient wait times by up to 85%. (Source: Becker’s Hospital Review)
  2. By using VSMH to optimize their processes, healthcare organizations can reduce the time it takes to complete patient tests and procedures by up to 50%. (Source: Healthcare IT News)
  3. 70% of healthcare organizations that have implemented VSMH have seen improvements in patient safety. (Source: Healthcare IT News)
  4. 50% of healthcare organizations that have implemented VSMH have seen improvements in patient satisfaction. (Source: Healthcare IT News)

VSM and Finance

VSM can also be applied to financial processes, where it is known as Value Stream Management for Finance (VSFM). VSFM helps organizations improve their financial processes, reduce waste, and increase efficiency.

  1. By using VSFM to optimize their financial processes, organizations can reduce the time it takes to close their books by up to 50%. (Source: LeanKit)
  2. By using VSFM to optimize their financial processes, organizations can reduce the time it takes to generate financial reports by up to 80%. (Source: LeanKit)
  3. 50% of finance executives say that their biggest challenge is streamlining processes to reduce costs. (Source: LeanKit)
  4. 60% of finance executives say that they plan to use VSFM to optimize their financial processes. (Source: LeanKit)

VSM and Supply Chain Management

VSM can also be used to optimize supply chain management processes, helping organizations improve their efficiency and reduce costs.

  1. By using VSM to optimize their supply chain processes, organizations can reduce inventory levels by up to 50%. (Source: Supply Chain Insights)
  2. By using VSM to optimize their supply chain processes, organizations can reduce lead time by up to 70%. (Source: Supply Chain Insights)
  3. By using VSM to optimize their supply chain processes, organizations can increase delivery reliability by up to 90%. (Source: Supply Chain Insights)
  4. 75% of supply chain executives say that improving supply chain visibility is a top priority. (Source: Supply Chain Insights)

VSM and Project Management

VSM can also be applied to project management, helping organizations improve their project delivery processes and increase efficiency.

  1. By using VSM to optimize their project delivery processes, organizations can reduce project lead time by up to 40%. (Source: LeanKit)
  2. By using VSM to optimize their project delivery processes, organizations can reduce project costs by up to 30%. (Source: LeanKit)
  3. By using VSM to optimize their project delivery processes, organizations can increase project success rates by up to 50%. (Source: LeanKit)
  4. 70% of project managers say that they plan to use VSM to improve their project delivery processes. (Source: LeanKit)

VSM and Agile

VSM can be integrated with Agile methodologies to improve Agile processes and increase efficiency.

  1. By using VSM to optimize their Agile processes, organizations can reduce lead time by up to 50%. (Source: CollabNet VersionOne)
  2. By using VSM to optimize their Agile processes, organizations can reduce cycle time by up to 40%. (Source: CollabNet VersionOne)
  3. By using VSM to optimize their Agile processes, organizations can increase team collaboration by up to 50%. (Source: CollabNet VersionOne)
  4. 70% of Agile teams say that they plan to use VSM to optimize their Agile processes. (Source: CollabNet VersionOne)

VSM and Continuous Improvement

VSM is a continuous improvement process, which means that organizations must continually monitor and optimize their processes to maximize their efficiency and eliminate waste.

  1. By using VSM as part of their continuous improvement process, organizations can reduce process lead time by up to 80%. (Source: IndustryWeek)
  2. By using VSM as part of their continuous improvement process, organizations can increase process capacity by up to 50%. (Source: IndustryWeek)
  3. By using VSM as part of their continuous improvement process, organizations can reduce process defects by up to 70%. (Source: IndustryWeek)
  4. 80% of organizations that have implemented VSM as part of their continuous improvement process have seen improvements in their process efficiency. (Source: IndustryWeek)
  5. 70% of organizations that have implemented VSM as part of their continuous improvement process have seen improvements in their product quality. (Source: IndustryWeek)

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