SlideShare a Scribd company logo
1 of 42
Download to read offline
Value Stream Mapping 
Webinar with APICS Heartland 
September 18, 2014
You will learn… 
•How to use value stream mapping as an organizational transformation & leadership alignment tool 
•How to plan for a value stream mapping activity 
•The mechanics of mapping, including key metrics for office/service/knowledge work 
•How to create an actionable Value Stream Transformation Plan
Not One. 
3
© 2014 The Karen Martin Group, Inc. 
Wherever there is a request and a deliverable, there is a value stream. 
4
Value Stream Defined 
Value Stream: All of the activities required to transform a 
customer request into a good or service. 
5 
First defined in The Machine That Changed the World, James Womack, Daniel Jones, & Daniel Roos, 1990. 
Process 
Process 
Process 
Customer 
Request 
Customer 
Receipt
Work: Degrees of Granularity 
Value Stream 
Process 
Process 
Process 
Step 
Step 
Step 
6 
Macro Perspective 
•Define strategic direction (“what”) 
•Heavy leadership involvement 
•Value Stream Mapping 
Micro Perspective 
•Identify the tactical “how” 
•Heavy frontline involvement 
•Metrics-Based Process Mapping
7 
Basic Current State Value Stream Map
Value Stream Mapping’s Roots 
•Value 
•Value Stream 
•Flow 
•Pull 
•Perfection 
1996
Value Stream Mapping Progression 
Mike Rother & John Shook, 1999 
Beau Keyte & Drew Locher, 2004 
Karen Martin & 
Mike Osterling, 2014 
www.bitly.com/VSMbk
Your Goal? Get the Most from Value Stream Mapping
Common Failings 
•VSM used solely as a work design exercise 
•VSM used to make tactical vs. strategic decisions 
•Inappropriate mapping team—or no team at all 
•Maps at process level, not value stream level 
•Maps with no metrics 
•Maps that are too narrow in scope, functionally 
•The effects of improvement aren’t felt by the customer 
•Not leveraging the method to shift leadership mindsets and culture
VSM Aids in Developing Systems Thinking 
12 
System Efficiency = Optimal Value Stream Performance 
Individual Efficiency = Sub-optimization
Value Stream Mapping is a Strategic, Leadership-Heavy Activity
© 2014 The Karen Martin Group, Inc. 
14 
Who? Accountability Practice / Tool 
Sr. Leaders “What has to happen” Hoshin Planning, Value Stream Mapping 
Frontlines “How it will happen” Kaizen Events, Just-do-its, and Projects 
Improvement Roles 
Strategic 
Tactical 
Middle Management
Value Stream Maps: Strategy Before Tactics 
Where am I? Where do I want to go? 
I-80 option 
I-40 option 
I-70 option 
Which route should I take? 
? 
? 
?
© 2014 The Karen Martin Group, Inc. 
16 
VSM Enables an Org to Get Above the Work
17
18 
1 
Information Flow 
2 
Work Flow 
3 Timeline 
Basic Current State Value Stream Map
© 2014 The Karen Martin Group, Inc. 
19 
Lead Time vs. Process Time 
Lead Time (LT) 
Work Received 
Work passed to next process or department 
Process Time (PT) 
Lead Time = Elapsed time; Throughput time; turnaround time Process Time = Touch time; work time; cycle time 
Work is Idle 
Work is Idle
© 2014 The Karen Martin Group, Inc. 
Measuring Quality: Percent Complete & Accurate (%C&A) 
Customer 
Process 1 
Process 2 
Process 3 
Process 4
© 2014 The Karen Martin Group, Inc. 
21 
Multiple downstream customers reporting different %C&As from the same supplier 
Block 5 reported that they rework Block 4’s output 25% of the time 
Block 7 reported that they, too, rework Block 4’s output 50% of the time. 
(0.75 x 0.50) x 100 = 37.5%
22 
Value Stream Maps Help Visualize Problems
© 2014 The Karen Martin Group, Inc. 
VSM Helps Break Down Functional Silos 
23 
Function 
Function 
Function 
Function 
Core Value Stream 
Support Value Stream 
Support Value Stream 
Customer 
Customer 
Customer
© 2014 The Karen Martin Group, Inc. 24 
Customer 
1 
Process 3 
Function E 
LT = 0.5 days 
PT = 30 mins. 
%C&A = 95% 
4 
4 
10 mins. 
1 days 
120 mins. 
2 days 
30 mins. 
0.5 days Total LT = 3.5 days 
Total PT = 160 mins. 
Activity Ratio = 9.5% 
Rolled %C&A = 89.3% 
Process 2 
Function C 
LT = 2 days 
PT = 120 mins. 
%C&A = 95% 
3 
3 
ABC Technology, Inc. 
Future State Value Stream Map 
Name of Value Stream Being Mapped 
Demand Rate = XX / Year 
Name of Value Stream Champion 
Mapping Date 
IT-1 IT-2 
5 items 
Process 1 
Function A 
LT = 1 days 
PT = 10 mins. 
%C&A = 99% 
5 
2 
1 items 10 items 
Standard 
work 
Modified 
approvals 
IT interface 
Cross-train 
Cross-train 
Standard 
work 
Error 
proof 
Basic Value Stream Map: Future State
J F M A M J J A S O N D 
1 PROJ Steve 0% 
2 PROJ Steve 100% 
3 KE Bruce 50% 
4 KE Bruce 50% 
5 PROJ Jessie 100% 
6 PROJ Sally 100% 
7 KE Jessie 0% 
8 PROJ Mike 100% 
9 JDI Jessie 50% 
10 PROJ Steve 80% 
11 PROJ Steve 10% 
12 PROJ Bob 0% 
13 JDI Jessie 100% 
14 PROJ Marcia 25% 
15 PROJ Tom 30% 
16 KE Marcia 50% 
17 PROJ Sally 50% 
Value Stream Champion Sally Brooks 
Value Stream Mapping Facilitator Karen Martin 
Value Stream Transformation Plan 
Value Stream Product Y Scheduled Review Dates 
Executive Sponsor Jim McMahon 2/10 + bi-weekly Thu 10 am 
Socialize new criteria for engineering, 
quality, & purchasing involvement. 
Date Created 1/5/2014 
Kaizen 
Burst # 
Improvement Objective / Hypothesis Proposed Countermeasure 
Exec. 
Method * 
Owner 
Planned Timeline for Execution 
Status 
Create procedure/train GS service engineers to 
properly feedback suggestions to engineering. 
Create bulletin re: standardized headplate 
design to eliminate flange orientation. 
Create visual "milestone" timeline to 
educate customers. 
Define technical info needed from 
customer and when. 
Signature: Signature: Signature: 
Revise standard Ts & Cs to incorporate time limit 
for customer approval for f inal payment. 
Error proof P.O. info (correct specs, ship to, 
etc.); notify customer re missing info and 
drop dead date. 
Create criteria for LOI acceptance. 
Add initial project release in SF. 
Resocialize existing customer-requested 
CO procedure. 
One piece engineering flow 
Agreement 
Executive Sponsor Value Stream Champion Value Stream Mapping Facilitator 
* Execution Method = JDI (Just-do-it), KE (Kaizen Event), or Proj (Project) 
Move to one release (pump & systems) 
Date: Date: Date: 
Create commodity management team & 
supplier SLAs. 
Standardize WPS/PQR from suppliers. 
Revise proposal template to limit time to 4 
revisions. 
Create pull signal for invoicing. 
Create trigger to release (BOMs) for 
purchase. 
Confidential Content Removed
Value Stream Performance Sample Results 
Metric 
Current State 
Projected Future State 
Projected 
% Improvement 
Lead Time 
(PO to shipping) 
17 months 
7.5 months 
56% 
Process Time 
600 hours 
450 hours 
25% (22 FTEs) 
Rolled % Complete & Accurate 
0% 
21% 
> 2,000% 
On-time delivery 
13% 
90% 
592% 
# Internally-produced Change Orders 
25/project 
12/project 
52% 
Freed Cash flow 
$25M per year
27 
Visualize the entire cycle of value delivery on a single sheet of paper
© 2014 The Karen Martin Group, Inc. 
28 
Executing Transformation Plan 
Value Stream Mapping 
Making Specific Improvements
Prepare 
Understand 
Current State 
Design 
Future State 
Develop Transformation Plan 
Execute Transformation Plan 
Three Consecutive Days 
4 Weeks Prior to Mapping 
Following Mapping 
Repeat 
Value Stream Mapping Activity Phases and Timing 
29
1 
2 1 
3 2 
4 3 
5 4 
5 
1 6 
2 7 
3 8 
4 9 
5 10 
1 
2 1 
3 2 
4 3 
5 4 
1 
2 
3 
4 engagement, financials, lead time, safety records, etc. Date: Date: 
effectiveness, market trends, customer satisfaction, employee Signature: 
Date: 
Relevant Data Agreement 
Examples: work volume & volume variation, process quality & 
What data is required to understand relevant current state isues. Executive Sponsor 
Signature: Signature: 
How will the business, internal and external customers, and Function 
internal and external suppliers benefit from value stream improvement? SMEs that may not be needed full time 
Always a nice touch; keeps 
the team from wandering 
On-site, ample wall space, 
quiet/private location 
Benefits to Customers & Business On-Call Support 
Increase <defined metric> from X to Y (Z% improvement). 
Reduce <defined metric> from X to Y (Z% improvement). 
Measurable Target Condition 
What's driving the need for improvement? Function 
Leadership-heavy 
Current State Problems & Business Needs Mapping Team 
Boundaries & 
Limitations 
Improvement Time 
Frame 
What is the team NOT authorized to change? 
Typically 3-6 months 
Last Step Task on last process block 
Logistics 
Coordinator 
Not always needed 
Aids in consensus building 
and organizational learning. 
Typically the last hour of the 
day. 
First Step Task on first process block 
Briefing 
Dates & 
Times 
Meals 
Provided 
Briefing 
Attendees 
** required 
*optional 
List the the people that are 
required to attend the briefings (**) 
and those whose attendance is 
optional (*). 
Demand Rate 
Trigger 
How many times is this done per wk, qtr, mo, or yr? 
What initiates the process? 
Value Stream Mapping Charter 
Scope Accountable Parties Logistics 
Required: typically VP or C-level 
If needed—often director or 
manager level 
Specific 
Conditions 
What circumstances are included and excluded? 
(e.g., type of customer, geographic location, etc.) 
Value Stream 
Champion 
Value stream being improved 
Executive 
Sponsor 
Value Stream 
Event Dates 
& Times 
3 days typically; consecutive 
is best; 6 hrs per day 
minimum; 7 or 8 hrs is best 
Required: skilled, objective person 
leading the activity 
Base-camp 
Location 
Facilitator 
Name 
Name 
Value Stream Champion Facilitator 
Contact Information 
Contact Information 
Charter: Critical planning, communication, and consensus-building tool 
Available at www.ksmartin.com/vsm-charter
Daily Briefings 
31 
#1 – Reduce resistance 
#2 – Build consensus 
#3 – Gain commitment
Socializing the Charter 
•Conversation, not merely an email attachment. 
•To the entire workforce who will be affected by change. 
•Adjust the charter if new discoveries or concerns surface.
Prepare 
Understand 
Current State 
Design 
Future State 
Develop Transformation Plan 
Execute Transformation Plan 
Three Consecutive Days 
4 Weeks Prior to Mapping 
Following Mapping 
Repeat 
Value Stream Mapping Activity Phases and Timing 
33
Current & Future State Notes 
34 
•Current State 
–Walk the value stream 
–Surface all problems: WIP, delays, errors/defects, work environment, morale, IT systems 
–Visually depict 
•Future State 
–Use relevant countermeasures to add value and remove waste 
–Design to the performance targets and timeframe defined in the Charter
Current State Value Stream Map 
35
Future State Value Stream Map 
36
Prepare 
Understand 
Current State 
Design 
Future State 
Develop Transformation Plan 
Execute Transformation Plan 
Three Consecutive Days 
4 Weeks Prior to Mapping 
Following Mapping 
Repeat 
Value Stream Mapping Activity Phases and Timing 
37
© 2014 The Karen Martin Group, Inc. 38 
J F M A M J J A S O N D 
1 PROJ Steve 0% 
2 PROJ Steve 100% 
3 KE Bruce 50% 
4 KE Bruce 50% 
5 PROJ Jessie 100% 
6 PROJ Sally 100% 
7 KE Jessie 0% 
8 PROJ Mike 100% 
9 JDI Jessie 50% 
10 PROJ Steve 80% 
11 PROJ Steve 10% 
12 PROJ Bob 0% 
13 JDI Jessie 100% 
14 PROJ Marcia 25% 
15 PROJ Tom 30% 
16 KE Marcia 50% 
17 PROJ Sally 50% 
Value Stream Champion Sally Brooks 
Value Stream Mapping Facilitator Karen Martin 
Value Stream Transformation Plan 
Value Stream Product Y Scheduled Review Dates 
Executive Sponsor Jim McMahon 2/10 + bi-weekly Thu 10 am 
Socialize new criteria for engineering, 
quality, & purchasing involvement. 
Date Created 1/5/2014 
Kaizen 
Burst # 
Improvement Objective / Hypothesis Proposed Countermeasure 
Exec. 
Method * 
Owner 
Planned Timeline for Execution 
Status 
Create procedure/train GS service engineers to 
properly feedback suggestions to engineering. 
Create bulletin re: standardized headplate 
design to eliminate flange orientation. 
Create visual "milestone" timeline to 
educate customers. 
Define technical info needed from 
customer and when. 
Signature: Signature: Signature: 
Revise standard Ts & Cs to incorporate time limit 
for customer approval for f inal payment. 
Error proof P.O. info (correct specs, ship to, 
etc.); notify customer re missing info and 
drop dead date. 
Create criteria for LOI acceptance. 
Add initial project release in SF. 
Resocialize existing customer-requested 
CO procedure. 
One piece engineering flow 
Agreement 
Executive Sponsor Value Stream Champion Value Stream Mapping Facilitator 
* Execution Method = JDI (Just-do-it), KE (Kaizen Event), or Proj (Project) 
Move to one release (pump & systems) 
Date: Date: Date: 
Create commodity management team & 
supplier SLAs. 
Standardize WPS/PQR from suppliers. 
Revise proposal template to limit time to 4 
revisions. 
Create pull signal for invoicing. 
Create trigger to release (BOMs) for 
purchase. 
Confidential Content Removed 
Value Stream Champion 
typically owns the 
Transformation Plan
Physically Post the Future State Map Physically Post the Transformation Plan
And Repeat…
41 
Who Owns the Value Stream?
 Coach / Facilitator / Consultant / Trainer: Lean transformation & business performance improvement in all industries. 
 Teacher: University of California, San Diego 
 Author & Speaker: 
Karen Martin, President 
The Karen Martin Group, Inc. 
@karenmartinopex 
42 
www.ksmartin.com/subscribe 
2013 Shingo Prize winner!

More Related Content

What's hot

value stream mapping
value stream mappingvalue stream mapping
value stream mappingvvmech
 
Value Stream Transformation: 10 Keys to Success
Value Stream Transformation: 10 Keys to SuccessValue Stream Transformation: 10 Keys to Success
Value Stream Transformation: 10 Keys to SuccessTKMG, Inc.
 
Value Stream Mapping Overview Update
Value Stream Mapping Overview UpdateValue Stream Mapping Overview Update
Value Stream Mapping Overview Updatejheaton418
 
Value stream mapping ppt
Value stream mapping pptValue stream mapping ppt
Value stream mapping pptNaik Devang
 
Learning to see (VSM)
Learning to see (VSM)Learning to see (VSM)
Learning to see (VSM)Mohamed Effat
 
Lean Manufacturing PowerPoint Presentation Sample
Lean Manufacturing PowerPoint Presentation SampleLean Manufacturing PowerPoint Presentation Sample
Lean Manufacturing PowerPoint Presentation SampleAndrew Schwartz
 
Value stream mapping training
Value stream mapping trainingValue stream mapping training
Value stream mapping trainingJusto Castellon
 
Value Stream Mapping in Office & Service Setttings
Value Stream Mapping in Office & Service SetttingsValue Stream Mapping in Office & Service Setttings
Value Stream Mapping in Office & Service SetttingsTKMG, Inc.
 
8 muda waste_identifying_preview
8 muda waste_identifying_preview8 muda waste_identifying_preview
8 muda waste_identifying_previewJaroslaw Gadek, MBA
 
Value stream mapping - Future State
Value stream mapping - Future StateValue stream mapping - Future State
Value stream mapping - Future Statekrishnaheda
 
Kanban
KanbanKanban
Kanbanatif22
 

What's hot (20)

value stream mapping
value stream mappingvalue stream mapping
value stream mapping
 
8 Wastes
8 Wastes8 Wastes
8 Wastes
 
Value Stream Transformation: 10 Keys to Success
Value Stream Transformation: 10 Keys to SuccessValue Stream Transformation: 10 Keys to Success
Value Stream Transformation: 10 Keys to Success
 
Introduction To Lean
Introduction To LeanIntroduction To Lean
Introduction To Lean
 
Value Stream Mapping Overview Update
Value Stream Mapping Overview UpdateValue Stream Mapping Overview Update
Value Stream Mapping Overview Update
 
Value stream mapping ppt
Value stream mapping pptValue stream mapping ppt
Value stream mapping ppt
 
Learning to see (VSM)
Learning to see (VSM)Learning to see (VSM)
Learning to see (VSM)
 
Fundamentals of Lean
Fundamentals of LeanFundamentals of Lean
Fundamentals of Lean
 
Lean Manufacturing PowerPoint Presentation Sample
Lean Manufacturing PowerPoint Presentation SampleLean Manufacturing PowerPoint Presentation Sample
Lean Manufacturing PowerPoint Presentation Sample
 
Value stream mapping training
Value stream mapping trainingValue stream mapping training
Value stream mapping training
 
Value Stream Mapping in Office & Service Setttings
Value Stream Mapping in Office & Service SetttingsValue Stream Mapping in Office & Service Setttings
Value Stream Mapping in Office & Service Setttings
 
Lean Process Improvement Techniques
Lean Process Improvement TechniquesLean Process Improvement Techniques
Lean Process Improvement Techniques
 
8 muda waste_identifying_preview
8 muda waste_identifying_preview8 muda waste_identifying_preview
8 muda waste_identifying_preview
 
Kanban Pull System
Kanban Pull SystemKanban Pull System
Kanban Pull System
 
Value stream mapping - Future State
Value stream mapping - Future StateValue stream mapping - Future State
Value stream mapping - Future State
 
Lean Manufacturing
Lean ManufacturingLean Manufacturing
Lean Manufacturing
 
Visual Management by Operational Excellence Consulting
Visual Management by Operational Excellence ConsultingVisual Management by Operational Excellence Consulting
Visual Management by Operational Excellence Consulting
 
Downtime 8 Wastes
Downtime 8 WastesDowntime 8 Wastes
Downtime 8 Wastes
 
Kanban
KanbanKanban
Kanban
 
Lean Tools
Lean ToolsLean Tools
Lean Tools
 

Similar to Value Stream Mapping

Value Stream Mapping: Talk with Omaha Lean User Group
Value Stream Mapping: Talk with Omaha Lean User GroupValue Stream Mapping: Talk with Omaha Lean User Group
Value Stream Mapping: Talk with Omaha Lean User GroupTKMG, Inc.
 
Value Stream Mapping: From Tool to Management Practice
Value Stream Mapping: From Tool to Management PracticeValue Stream Mapping: From Tool to Management Practice
Value Stream Mapping: From Tool to Management PracticeTKMG, Inc.
 
Value Stream Transformation: Achieving Excellence through Leadership Alignmen...
Value Stream Transformation: Achieving Excellence through Leadership Alignmen...Value Stream Transformation: Achieving Excellence through Leadership Alignmen...
Value Stream Transformation: Achieving Excellence through Leadership Alignmen...TKMG, Inc.
 
value stream mapping and metrics based process mapping
value stream mapping and metrics based process mappingvalue stream mapping and metrics based process mapping
value stream mapping and metrics based process mappingTKMG, Inc.
 
Improve phase lean six sigma tollgate template
Improve phase   lean six sigma tollgate templateImprove phase   lean six sigma tollgate template
Improve phase lean six sigma tollgate templateSteven Bonacorsi
 
Improve phase lean six sigma tollgate template
Improve phase   lean six sigma tollgate templateImprove phase   lean six sigma tollgate template
Improve phase lean six sigma tollgate templateSteven Bonacorsi
 
Have you tried to lean your IT Service Management? by Daniel Breston
Have you tried to lean your IT Service Management? by Daniel BrestonHave you tried to lean your IT Service Management? by Daniel Breston
Have you tried to lean your IT Service Management? by Daniel BrestonInstitut Lean France
 
Lean Leadership - Part 3 of 3
Lean Leadership - Part 3 of 3Lean Leadership - Part 3 of 3
Lean Leadership - Part 3 of 3TKMG, Inc.
 
Six Sigma Leaders For Today Presentation Slides (Six Sigma)
Six Sigma Leaders For Today Presentation Slides (Six Sigma)Six Sigma Leaders For Today Presentation Slides (Six Sigma)
Six Sigma Leaders For Today Presentation Slides (Six Sigma)JoanMullins
 
Six Sigma Leaders For Today Presentation Slides (Six Sigma)
Six Sigma Leaders For Today Presentation Slides (Six Sigma)Six Sigma Leaders For Today Presentation Slides (Six Sigma)
Six Sigma Leaders For Today Presentation Slides (Six Sigma)JoanMullins
 
Value Stream Mapping in Non-Manufacturing Environments
Value Stream Mapping in Non-Manufacturing EnvironmentsValue Stream Mapping in Non-Manufacturing Environments
Value Stream Mapping in Non-Manufacturing EnvironmentsTKMG, Inc.
 
1 Business process Migrations
1   Business process Migrations1   Business process Migrations
1 Business process MigrationsVamseedhar SR
 
Pride Procurement Lean
Pride Procurement LeanPride Procurement Lean
Pride Procurement LeanElm Valle
 
Clarity First: Process & Performance
Clarity First: Process & PerformanceClarity First: Process & Performance
Clarity First: Process & PerformanceTKMG, Inc.
 
Lean Transformation in Office, Service, and Knowledge Work Enviroments
Lean Transformation in Office, Service, and Knowledge Work EnviromentsLean Transformation in Office, Service, and Knowledge Work Enviroments
Lean Transformation in Office, Service, and Knowledge Work EnviromentsTKMG, Inc.
 
Daniel Breston - DevOps metrics that matter
Daniel Breston - DevOps metrics that matterDaniel Breston - DevOps metrics that matter
Daniel Breston - DevOps metrics that matteritSMF UK
 

Similar to Value Stream Mapping (20)

Value Stream Mapping: Talk with Omaha Lean User Group
Value Stream Mapping: Talk with Omaha Lean User GroupValue Stream Mapping: Talk with Omaha Lean User Group
Value Stream Mapping: Talk with Omaha Lean User Group
 
Value Stream Mapping: From Tool to Management Practice
Value Stream Mapping: From Tool to Management PracticeValue Stream Mapping: From Tool to Management Practice
Value Stream Mapping: From Tool to Management Practice
 
Value Stream Transformation: Achieving Excellence through Leadership Alignmen...
Value Stream Transformation: Achieving Excellence through Leadership Alignmen...Value Stream Transformation: Achieving Excellence through Leadership Alignmen...
Value Stream Transformation: Achieving Excellence through Leadership Alignmen...
 
value stream mapping and metrics based process mapping
value stream mapping and metrics based process mappingvalue stream mapping and metrics based process mapping
value stream mapping and metrics based process mapping
 
6 Sigma
6 Sigma6 Sigma
6 Sigma
 
Six sigma
Six sigmaSix sigma
Six sigma
 
Improve phase lean six sigma tollgate template
Improve phase   lean six sigma tollgate templateImprove phase   lean six sigma tollgate template
Improve phase lean six sigma tollgate template
 
Improve phase lean six sigma tollgate template
Improve phase   lean six sigma tollgate templateImprove phase   lean six sigma tollgate template
Improve phase lean six sigma tollgate template
 
Have you tried to lean your IT Service Management? by Daniel Breston
Have you tried to lean your IT Service Management? by Daniel BrestonHave you tried to lean your IT Service Management? by Daniel Breston
Have you tried to lean your IT Service Management? by Daniel Breston
 
Value stream mapping
Value stream mappingValue stream mapping
Value stream mapping
 
Lean Leadership - Part 3 of 3
Lean Leadership - Part 3 of 3Lean Leadership - Part 3 of 3
Lean Leadership - Part 3 of 3
 
Six Sigma Leaders For Today Presentation Slides (Six Sigma)
Six Sigma Leaders For Today Presentation Slides (Six Sigma)Six Sigma Leaders For Today Presentation Slides (Six Sigma)
Six Sigma Leaders For Today Presentation Slides (Six Sigma)
 
Six Sigma Leaders For Today Presentation Slides (Six Sigma)
Six Sigma Leaders For Today Presentation Slides (Six Sigma)Six Sigma Leaders For Today Presentation Slides (Six Sigma)
Six Sigma Leaders For Today Presentation Slides (Six Sigma)
 
Value Stream Mapping in Non-Manufacturing Environments
Value Stream Mapping in Non-Manufacturing EnvironmentsValue Stream Mapping in Non-Manufacturing Environments
Value Stream Mapping in Non-Manufacturing Environments
 
1 Business process Migrations
1   Business process Migrations1   Business process Migrations
1 Business process Migrations
 
Pride Procurement Lean
Pride Procurement LeanPride Procurement Lean
Pride Procurement Lean
 
Six sigma[2]
Six sigma[2]Six sigma[2]
Six sigma[2]
 
Clarity First: Process & Performance
Clarity First: Process & PerformanceClarity First: Process & Performance
Clarity First: Process & Performance
 
Lean Transformation in Office, Service, and Knowledge Work Enviroments
Lean Transformation in Office, Service, and Knowledge Work EnviromentsLean Transformation in Office, Service, and Knowledge Work Enviroments
Lean Transformation in Office, Service, and Knowledge Work Enviroments
 
Daniel Breston - DevOps metrics that matter
Daniel Breston - DevOps metrics that matterDaniel Breston - DevOps metrics that matter
Daniel Breston - DevOps metrics that matter
 

More from TKMG, Inc.

Metrics-Based Process Mapping
Metrics-Based Process MappingMetrics-Based Process Mapping
Metrics-Based Process MappingTKMG, Inc.
 
Clarity the Essence of Lean Management
Clarity the Essence of Lean ManagementClarity the Essence of Lean Management
Clarity the Essence of Lean ManagementTKMG, Inc.
 
Clarity the Essence of Lean Management
Clarity the Essence of Lean ManagementClarity the Essence of Lean Management
Clarity the Essence of Lean ManagementTKMG, Inc.
 
CLEAR Problem-Solving Questions
CLEAR Problem-Solving QuestionsCLEAR Problem-Solving Questions
CLEAR Problem-Solving QuestionsTKMG, Inc.
 
Clarity First: What it is. Why you need it. How to get it.
Clarity First: What it is. Why you need it. How to get it.Clarity First: What it is. Why you need it. How to get it.
Clarity First: What it is. Why you need it. How to get it.TKMG, Inc.
 
Clarity First - You
Clarity First - YouClarity First - You
Clarity First - YouTKMG, Inc.
 
Clarity First - Problem Solving
Clarity First - Problem Solving Clarity First - Problem Solving
Clarity First - Problem Solving TKMG, Inc.
 
Clarity First: Purpose and Priorities
Clarity First: Purpose and PrioritiesClarity First: Purpose and Priorities
Clarity First: Purpose and PrioritiesTKMG, Inc.
 
Clarity First: Overview (1 of 5 webinars)
Clarity First: Overview (1 of 5 webinars)Clarity First: Overview (1 of 5 webinars)
Clarity First: Overview (1 of 5 webinars)TKMG, Inc.
 
Know How Data is Calculated - OEE example
Know How Data is Calculated - OEE exampleKnow How Data is Calculated - OEE example
Know How Data is Calculated - OEE exampleTKMG, Inc.
 
Daily Management Systems
Daily Management SystemsDaily Management Systems
Daily Management SystemsTKMG, Inc.
 
The Trust Factor: Eliminating Waste with a Reliable System
The Trust Factor: Eliminating Waste with a Reliable SystemThe Trust Factor: Eliminating Waste with a Reliable System
The Trust Factor: Eliminating Waste with a Reliable SystemTKMG, Inc.
 
Metrics Based Process Mapping Discount Code
Metrics Based Process Mapping Discount CodeMetrics Based Process Mapping Discount Code
Metrics Based Process Mapping Discount CodeTKMG, Inc.
 
Lean Leadership: Part 2 of 3
Lean Leadership: Part 2 of 3Lean Leadership: Part 2 of 3
Lean Leadership: Part 2 of 3TKMG, Inc.
 
Lean Leadership: Part 1 of 3
Lean Leadership: Part 1 of 3Lean Leadership: Part 1 of 3
Lean Leadership: Part 1 of 3TKMG, Inc.
 
Building the Fit Organization (with guest presenter Dan Markovitz)
Building the Fit Organization (with guest presenter Dan Markovitz)Building the Fit Organization (with guest presenter Dan Markovitz)
Building the Fit Organization (with guest presenter Dan Markovitz)TKMG, Inc.
 
Process Change: Communication & Training Tips
Process Change:  Communication & Training TipsProcess Change:  Communication & Training Tips
Process Change: Communication & Training TipsTKMG, Inc.
 
Lean and the Corporate Agenda with Guest Jacob Stoller
Lean and the Corporate Agenda with Guest Jacob StollerLean and the Corporate Agenda with Guest Jacob Stoller
Lean and the Corporate Agenda with Guest Jacob StollerTKMG, Inc.
 
How to Truly Establish a CI Culture
How to Truly Establish a CI CultureHow to Truly Establish a CI Culture
How to Truly Establish a CI CultureTKMG, Inc.
 
Lean and Your Top & Bottom Lines
Lean and Your Top & Bottom LinesLean and Your Top & Bottom Lines
Lean and Your Top & Bottom LinesTKMG, Inc.
 

More from TKMG, Inc. (20)

Metrics-Based Process Mapping
Metrics-Based Process MappingMetrics-Based Process Mapping
Metrics-Based Process Mapping
 
Clarity the Essence of Lean Management
Clarity the Essence of Lean ManagementClarity the Essence of Lean Management
Clarity the Essence of Lean Management
 
Clarity the Essence of Lean Management
Clarity the Essence of Lean ManagementClarity the Essence of Lean Management
Clarity the Essence of Lean Management
 
CLEAR Problem-Solving Questions
CLEAR Problem-Solving QuestionsCLEAR Problem-Solving Questions
CLEAR Problem-Solving Questions
 
Clarity First: What it is. Why you need it. How to get it.
Clarity First: What it is. Why you need it. How to get it.Clarity First: What it is. Why you need it. How to get it.
Clarity First: What it is. Why you need it. How to get it.
 
Clarity First - You
Clarity First - YouClarity First - You
Clarity First - You
 
Clarity First - Problem Solving
Clarity First - Problem Solving Clarity First - Problem Solving
Clarity First - Problem Solving
 
Clarity First: Purpose and Priorities
Clarity First: Purpose and PrioritiesClarity First: Purpose and Priorities
Clarity First: Purpose and Priorities
 
Clarity First: Overview (1 of 5 webinars)
Clarity First: Overview (1 of 5 webinars)Clarity First: Overview (1 of 5 webinars)
Clarity First: Overview (1 of 5 webinars)
 
Know How Data is Calculated - OEE example
Know How Data is Calculated - OEE exampleKnow How Data is Calculated - OEE example
Know How Data is Calculated - OEE example
 
Daily Management Systems
Daily Management SystemsDaily Management Systems
Daily Management Systems
 
The Trust Factor: Eliminating Waste with a Reliable System
The Trust Factor: Eliminating Waste with a Reliable SystemThe Trust Factor: Eliminating Waste with a Reliable System
The Trust Factor: Eliminating Waste with a Reliable System
 
Metrics Based Process Mapping Discount Code
Metrics Based Process Mapping Discount CodeMetrics Based Process Mapping Discount Code
Metrics Based Process Mapping Discount Code
 
Lean Leadership: Part 2 of 3
Lean Leadership: Part 2 of 3Lean Leadership: Part 2 of 3
Lean Leadership: Part 2 of 3
 
Lean Leadership: Part 1 of 3
Lean Leadership: Part 1 of 3Lean Leadership: Part 1 of 3
Lean Leadership: Part 1 of 3
 
Building the Fit Organization (with guest presenter Dan Markovitz)
Building the Fit Organization (with guest presenter Dan Markovitz)Building the Fit Organization (with guest presenter Dan Markovitz)
Building the Fit Organization (with guest presenter Dan Markovitz)
 
Process Change: Communication & Training Tips
Process Change:  Communication & Training TipsProcess Change:  Communication & Training Tips
Process Change: Communication & Training Tips
 
Lean and the Corporate Agenda with Guest Jacob Stoller
Lean and the Corporate Agenda with Guest Jacob StollerLean and the Corporate Agenda with Guest Jacob Stoller
Lean and the Corporate Agenda with Guest Jacob Stoller
 
How to Truly Establish a CI Culture
How to Truly Establish a CI CultureHow to Truly Establish a CI Culture
How to Truly Establish a CI Culture
 
Lean and Your Top & Bottom Lines
Lean and Your Top & Bottom LinesLean and Your Top & Bottom Lines
Lean and Your Top & Bottom Lines
 

Recently uploaded

Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato pptElizangelaSoaresdaCo
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..dlewis191
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.mcshagufta46
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Winbusinessin
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfAnhNguyen97152
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfSourav Sikder
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyHanna Klim
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Lviv Startup Club
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Reportamberjiles31
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...IMARC Group
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examplesamberjiles31
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toumarfarooquejamali32
 
Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakEditores1
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 

Recently uploaded (20)

Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato ppt
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agency
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Report
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examples
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb to
 
Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerak
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 

Value Stream Mapping

  • 1. Value Stream Mapping Webinar with APICS Heartland September 18, 2014
  • 2. You will learn… •How to use value stream mapping as an organizational transformation & leadership alignment tool •How to plan for a value stream mapping activity •The mechanics of mapping, including key metrics for office/service/knowledge work •How to create an actionable Value Stream Transformation Plan
  • 4. © 2014 The Karen Martin Group, Inc. Wherever there is a request and a deliverable, there is a value stream. 4
  • 5. Value Stream Defined Value Stream: All of the activities required to transform a customer request into a good or service. 5 First defined in The Machine That Changed the World, James Womack, Daniel Jones, & Daniel Roos, 1990. Process Process Process Customer Request Customer Receipt
  • 6. Work: Degrees of Granularity Value Stream Process Process Process Step Step Step 6 Macro Perspective •Define strategic direction (“what”) •Heavy leadership involvement •Value Stream Mapping Micro Perspective •Identify the tactical “how” •Heavy frontline involvement •Metrics-Based Process Mapping
  • 7. 7 Basic Current State Value Stream Map
  • 8. Value Stream Mapping’s Roots •Value •Value Stream •Flow •Pull •Perfection 1996
  • 9. Value Stream Mapping Progression Mike Rother & John Shook, 1999 Beau Keyte & Drew Locher, 2004 Karen Martin & Mike Osterling, 2014 www.bitly.com/VSMbk
  • 10. Your Goal? Get the Most from Value Stream Mapping
  • 11. Common Failings •VSM used solely as a work design exercise •VSM used to make tactical vs. strategic decisions •Inappropriate mapping team—or no team at all •Maps at process level, not value stream level •Maps with no metrics •Maps that are too narrow in scope, functionally •The effects of improvement aren’t felt by the customer •Not leveraging the method to shift leadership mindsets and culture
  • 12. VSM Aids in Developing Systems Thinking 12 System Efficiency = Optimal Value Stream Performance Individual Efficiency = Sub-optimization
  • 13. Value Stream Mapping is a Strategic, Leadership-Heavy Activity
  • 14. © 2014 The Karen Martin Group, Inc. 14 Who? Accountability Practice / Tool Sr. Leaders “What has to happen” Hoshin Planning, Value Stream Mapping Frontlines “How it will happen” Kaizen Events, Just-do-its, and Projects Improvement Roles Strategic Tactical Middle Management
  • 15. Value Stream Maps: Strategy Before Tactics Where am I? Where do I want to go? I-80 option I-40 option I-70 option Which route should I take? ? ? ?
  • 16. © 2014 The Karen Martin Group, Inc. 16 VSM Enables an Org to Get Above the Work
  • 17. 17
  • 18. 18 1 Information Flow 2 Work Flow 3 Timeline Basic Current State Value Stream Map
  • 19. © 2014 The Karen Martin Group, Inc. 19 Lead Time vs. Process Time Lead Time (LT) Work Received Work passed to next process or department Process Time (PT) Lead Time = Elapsed time; Throughput time; turnaround time Process Time = Touch time; work time; cycle time Work is Idle Work is Idle
  • 20. © 2014 The Karen Martin Group, Inc. Measuring Quality: Percent Complete & Accurate (%C&A) Customer Process 1 Process 2 Process 3 Process 4
  • 21. © 2014 The Karen Martin Group, Inc. 21 Multiple downstream customers reporting different %C&As from the same supplier Block 5 reported that they rework Block 4’s output 25% of the time Block 7 reported that they, too, rework Block 4’s output 50% of the time. (0.75 x 0.50) x 100 = 37.5%
  • 22. 22 Value Stream Maps Help Visualize Problems
  • 23. © 2014 The Karen Martin Group, Inc. VSM Helps Break Down Functional Silos 23 Function Function Function Function Core Value Stream Support Value Stream Support Value Stream Customer Customer Customer
  • 24. © 2014 The Karen Martin Group, Inc. 24 Customer 1 Process 3 Function E LT = 0.5 days PT = 30 mins. %C&A = 95% 4 4 10 mins. 1 days 120 mins. 2 days 30 mins. 0.5 days Total LT = 3.5 days Total PT = 160 mins. Activity Ratio = 9.5% Rolled %C&A = 89.3% Process 2 Function C LT = 2 days PT = 120 mins. %C&A = 95% 3 3 ABC Technology, Inc. Future State Value Stream Map Name of Value Stream Being Mapped Demand Rate = XX / Year Name of Value Stream Champion Mapping Date IT-1 IT-2 5 items Process 1 Function A LT = 1 days PT = 10 mins. %C&A = 99% 5 2 1 items 10 items Standard work Modified approvals IT interface Cross-train Cross-train Standard work Error proof Basic Value Stream Map: Future State
  • 25. J F M A M J J A S O N D 1 PROJ Steve 0% 2 PROJ Steve 100% 3 KE Bruce 50% 4 KE Bruce 50% 5 PROJ Jessie 100% 6 PROJ Sally 100% 7 KE Jessie 0% 8 PROJ Mike 100% 9 JDI Jessie 50% 10 PROJ Steve 80% 11 PROJ Steve 10% 12 PROJ Bob 0% 13 JDI Jessie 100% 14 PROJ Marcia 25% 15 PROJ Tom 30% 16 KE Marcia 50% 17 PROJ Sally 50% Value Stream Champion Sally Brooks Value Stream Mapping Facilitator Karen Martin Value Stream Transformation Plan Value Stream Product Y Scheduled Review Dates Executive Sponsor Jim McMahon 2/10 + bi-weekly Thu 10 am Socialize new criteria for engineering, quality, & purchasing involvement. Date Created 1/5/2014 Kaizen Burst # Improvement Objective / Hypothesis Proposed Countermeasure Exec. Method * Owner Planned Timeline for Execution Status Create procedure/train GS service engineers to properly feedback suggestions to engineering. Create bulletin re: standardized headplate design to eliminate flange orientation. Create visual "milestone" timeline to educate customers. Define technical info needed from customer and when. Signature: Signature: Signature: Revise standard Ts & Cs to incorporate time limit for customer approval for f inal payment. Error proof P.O. info (correct specs, ship to, etc.); notify customer re missing info and drop dead date. Create criteria for LOI acceptance. Add initial project release in SF. Resocialize existing customer-requested CO procedure. One piece engineering flow Agreement Executive Sponsor Value Stream Champion Value Stream Mapping Facilitator * Execution Method = JDI (Just-do-it), KE (Kaizen Event), or Proj (Project) Move to one release (pump & systems) Date: Date: Date: Create commodity management team & supplier SLAs. Standardize WPS/PQR from suppliers. Revise proposal template to limit time to 4 revisions. Create pull signal for invoicing. Create trigger to release (BOMs) for purchase. Confidential Content Removed
  • 26. Value Stream Performance Sample Results Metric Current State Projected Future State Projected % Improvement Lead Time (PO to shipping) 17 months 7.5 months 56% Process Time 600 hours 450 hours 25% (22 FTEs) Rolled % Complete & Accurate 0% 21% > 2,000% On-time delivery 13% 90% 592% # Internally-produced Change Orders 25/project 12/project 52% Freed Cash flow $25M per year
  • 27. 27 Visualize the entire cycle of value delivery on a single sheet of paper
  • 28. © 2014 The Karen Martin Group, Inc. 28 Executing Transformation Plan Value Stream Mapping Making Specific Improvements
  • 29. Prepare Understand Current State Design Future State Develop Transformation Plan Execute Transformation Plan Three Consecutive Days 4 Weeks Prior to Mapping Following Mapping Repeat Value Stream Mapping Activity Phases and Timing 29
  • 30. 1 2 1 3 2 4 3 5 4 5 1 6 2 7 3 8 4 9 5 10 1 2 1 3 2 4 3 5 4 1 2 3 4 engagement, financials, lead time, safety records, etc. Date: Date: effectiveness, market trends, customer satisfaction, employee Signature: Date: Relevant Data Agreement Examples: work volume & volume variation, process quality & What data is required to understand relevant current state isues. Executive Sponsor Signature: Signature: How will the business, internal and external customers, and Function internal and external suppliers benefit from value stream improvement? SMEs that may not be needed full time Always a nice touch; keeps the team from wandering On-site, ample wall space, quiet/private location Benefits to Customers & Business On-Call Support Increase <defined metric> from X to Y (Z% improvement). Reduce <defined metric> from X to Y (Z% improvement). Measurable Target Condition What's driving the need for improvement? Function Leadership-heavy Current State Problems & Business Needs Mapping Team Boundaries & Limitations Improvement Time Frame What is the team NOT authorized to change? Typically 3-6 months Last Step Task on last process block Logistics Coordinator Not always needed Aids in consensus building and organizational learning. Typically the last hour of the day. First Step Task on first process block Briefing Dates & Times Meals Provided Briefing Attendees ** required *optional List the the people that are required to attend the briefings (**) and those whose attendance is optional (*). Demand Rate Trigger How many times is this done per wk, qtr, mo, or yr? What initiates the process? Value Stream Mapping Charter Scope Accountable Parties Logistics Required: typically VP or C-level If needed—often director or manager level Specific Conditions What circumstances are included and excluded? (e.g., type of customer, geographic location, etc.) Value Stream Champion Value stream being improved Executive Sponsor Value Stream Event Dates & Times 3 days typically; consecutive is best; 6 hrs per day minimum; 7 or 8 hrs is best Required: skilled, objective person leading the activity Base-camp Location Facilitator Name Name Value Stream Champion Facilitator Contact Information Contact Information Charter: Critical planning, communication, and consensus-building tool Available at www.ksmartin.com/vsm-charter
  • 31. Daily Briefings 31 #1 – Reduce resistance #2 – Build consensus #3 – Gain commitment
  • 32. Socializing the Charter •Conversation, not merely an email attachment. •To the entire workforce who will be affected by change. •Adjust the charter if new discoveries or concerns surface.
  • 33. Prepare Understand Current State Design Future State Develop Transformation Plan Execute Transformation Plan Three Consecutive Days 4 Weeks Prior to Mapping Following Mapping Repeat Value Stream Mapping Activity Phases and Timing 33
  • 34. Current & Future State Notes 34 •Current State –Walk the value stream –Surface all problems: WIP, delays, errors/defects, work environment, morale, IT systems –Visually depict •Future State –Use relevant countermeasures to add value and remove waste –Design to the performance targets and timeframe defined in the Charter
  • 35. Current State Value Stream Map 35
  • 36. Future State Value Stream Map 36
  • 37. Prepare Understand Current State Design Future State Develop Transformation Plan Execute Transformation Plan Three Consecutive Days 4 Weeks Prior to Mapping Following Mapping Repeat Value Stream Mapping Activity Phases and Timing 37
  • 38. © 2014 The Karen Martin Group, Inc. 38 J F M A M J J A S O N D 1 PROJ Steve 0% 2 PROJ Steve 100% 3 KE Bruce 50% 4 KE Bruce 50% 5 PROJ Jessie 100% 6 PROJ Sally 100% 7 KE Jessie 0% 8 PROJ Mike 100% 9 JDI Jessie 50% 10 PROJ Steve 80% 11 PROJ Steve 10% 12 PROJ Bob 0% 13 JDI Jessie 100% 14 PROJ Marcia 25% 15 PROJ Tom 30% 16 KE Marcia 50% 17 PROJ Sally 50% Value Stream Champion Sally Brooks Value Stream Mapping Facilitator Karen Martin Value Stream Transformation Plan Value Stream Product Y Scheduled Review Dates Executive Sponsor Jim McMahon 2/10 + bi-weekly Thu 10 am Socialize new criteria for engineering, quality, & purchasing involvement. Date Created 1/5/2014 Kaizen Burst # Improvement Objective / Hypothesis Proposed Countermeasure Exec. Method * Owner Planned Timeline for Execution Status Create procedure/train GS service engineers to properly feedback suggestions to engineering. Create bulletin re: standardized headplate design to eliminate flange orientation. Create visual "milestone" timeline to educate customers. Define technical info needed from customer and when. Signature: Signature: Signature: Revise standard Ts & Cs to incorporate time limit for customer approval for f inal payment. Error proof P.O. info (correct specs, ship to, etc.); notify customer re missing info and drop dead date. Create criteria for LOI acceptance. Add initial project release in SF. Resocialize existing customer-requested CO procedure. One piece engineering flow Agreement Executive Sponsor Value Stream Champion Value Stream Mapping Facilitator * Execution Method = JDI (Just-do-it), KE (Kaizen Event), or Proj (Project) Move to one release (pump & systems) Date: Date: Date: Create commodity management team & supplier SLAs. Standardize WPS/PQR from suppliers. Revise proposal template to limit time to 4 revisions. Create pull signal for invoicing. Create trigger to release (BOMs) for purchase. Confidential Content Removed Value Stream Champion typically owns the Transformation Plan
  • 39. Physically Post the Future State Map Physically Post the Transformation Plan
  • 41. 41 Who Owns the Value Stream?
  • 42.  Coach / Facilitator / Consultant / Trainer: Lean transformation & business performance improvement in all industries.  Teacher: University of California, San Diego  Author & Speaker: Karen Martin, President The Karen Martin Group, Inc. @karenmartinopex 42 www.ksmartin.com/subscribe 2013 Shingo Prize winner!