Competing against ignorance: advantage through knowledge

This paper describes the Value Stream Analysis Tool (VALSAT) as a rigorous analysis and decision‐making tool in the supply chain or value stream context. The tool can employ both tacit and explicit knowledge for the advantage of the supply chain in which it is used. Although the approach owes its origins to new product development in the Japanese shipbuilding industry, it can provide many advantages over traditional analysis approaches in a value stream setting. VALSAT is demonstrated from both a theoretical and practical viewpoint, the latter involving an analysis of potential improvement in the Kenyan textile industry. The tool appears to be particularly useful in focusing knowledge and so in aiding decision making where there is a complex web of supply chain inter‐relationships and especially where data are a mix of subjective and objective assessments. Additionally it creates the right environment for increased intra‐ and inter‐company co‐ordination, allowing for improvement implementation programmes.