Lean value stream mapping

- [Instructor] I would like to introduce you to two key terms before we take a look at value stream mapping. Lead time is defined as the total elapse time from the time a request for a product or service is made to the time the product or service is made available. If you receive pizza within 45 minutes of ordering it, that is the lead time. Cycle time is a subset of the lead time, and that is the duration of time where some work is being done on the product. In our pizza delivery example, this is the time spent on steps like baking, packaging, etc. You can define lead time and cycle time of a step in the workflow or the entire workflow. Lead time is greater than or equal to cycle time, and the goal should be to make lead time equal to cycle time. Let's take a look at a business process value stream map. This is similar to the one we reviewed earlier, but it does not have an information flow section. It shows an insurance claims processing workflow with the following steps. A customer…