Since Mike Osterling and I released our latest book, Value Stream Mapping, we've received a lot of questions about which level of mapping--value stream vs. process--people should opt for and why/when. We've also continued to hear people claim that value stream mapping team members should include the front-line staff. Not so.
These are the slides for a webinar delivered on 12-17-2015. The recording is available at:
http://www.slideshare.net/KarenMartinGroup/value-stream-and-process-mapping-when-you-opt-for-each or http://ksmartin.com/webinars.
For more information, we invite you to consider http://bit.ly/VSM-AMZ for VSM and http://bit.ly/MBPM-AMZ for MBPM. (Please note: MBPM is priced high because it includes an extensive Excel tool to document maps and auto-calculate results.)
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value stream mapping and metrics based process mapping
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The Karen Martin Group, Inc.
@karenmartinopex
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3. After the WebinarâŚ
3
⢠Please provide feedback
⢠Materials: www.slideshare.net/karenmartingroup
⢠Recorded webinars:
⢠www.ksmartin.com/webinars
⢠www.youtube.com/karenmartingroup
⢠www.vimeo.com/karenmartingroup
⢠www.slideshare.net/karenmartingroup
7. You will learnâŚ
⢠The similarities and differences between value
stream maps (VSM) and metrics-based process
maps (MBPM).
⢠The circumstances under which to select each
type of map.
⢠Tips for successful mapping activities.
8. Value Stream Mapping vs. Metrics-Based Process Mapping
Š 2015 The Karen Martin Group, Inc. 8
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro â Interconnected processes Micro â Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
9. Value Stream Mapping vs. Metrics-Based Process Mapping
Š 2015 The Karen Martin Group, Inc. 9
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro â Interconnected processes Micro â Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
10. What problem are you trying to solve?
Š 2015 The Karen Martin Group, Inc. 10
Desired State
(or known standard)
Current State
Gap =
Problem
11. Value Stream Mapping vs. Metrics-Based Process Mapping
Š 2015 The Karen Martin Group, Inc.
11
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro â Interconnected processes Micro â Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
12. Value Stream Transformation is Strategic
Š 2015 The Karen Martin Group, Inc. 12
For more information, see Value Stream Mapping, Karen Martin & Mike Osterling
13. Process Improvement is Tactical
Š 2015 The Karen Martin Group, Inc. 13
For more information, see Metrics-Based Process Mapping, Karen Martin & Mike Osterling
14. Value Stream Mapping vs. Metrics-Based Process Mapping
Š 2015 The Karen Martin Group, Inc. 14
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro â Interconnected processes Micro â Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
15. Work: Degrees of Granularity
Value
Stream
Process Process Process
Step StepStep
15
Macro
Perspective
⢠Define strategic
direction (âwhatâ)
⢠Heavy leadership
involvement
⢠Value Stream
Mapping
Micro
Perspective
⢠Identify the
tactical âhowâ
⢠Heavy frontline
involvement
⢠Metrics-Based
Process Mapping
17. Work: Levels of Granularity
Š 2015 The Karen Martin Group, Inc. 17
Negotiate
contract
Process
order
Configure
software
Value
Stream
Process Negotiate
pricing
Approve
Negotiate
terms
Approve Execute
18. Degrees of Granularity:
Hiring Value Stream
Hire
Recruit Select Onboard
Write job
description
Post
externally
Post
internally
18
Process-level
Perspective
Value-stream
Perspective
19. What problem are you trying to solve?
Š 2015 The Karen Martin Group, Inc. 19
Desired State
(or known standard)
Current State
Gap =
Problem
20. Value Stream Mapping vs. Metrics-Based Process Mapping
Š 2015 The Karen Martin Group, Inc. 20
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro â Interconnected processes Micro â Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
23. Customer
0.0Â hrs.
0.5Â days
1.0Â hrs.
5.0Â days
3.6Â hrs.
0.6Â days
0.0Â hrs.
1.0Â days
0.2Â hrs.
0.5Â days
16.0Â hrs. 0.0Â hrs.
7.0Â days
8.0Â hrs. 0.0Â hrs.
7.0Â days
0.1Â hrs.
26.0Â days
0.0Â hrs.
0.2Â days Total LT =
Total PT =
ActivityRa
SAP
Summary
Invoice
(Excel)Obtain Order;
Enter Order in
Offline Order
Form
Sales
(Key at night)
LT = 4.5 hrs.
PT = 18 mins.
%C&A: 80%
1
Review &
Release
Credit Holds
Sales
LT = 4 hrs.
PT = 10 mins.
%C&A: 99%
3
Issue DO To
Transporter;
Create Pick
List
WH1
LT = 8 hrs.
PT = 1 mins.
%C&A: 95%
5
Pick
& Load
Order
Logistics
LT = 4 hrs.
PT = 15 mins.
%C&A: 95%
6
Collect
POD from
Customer
Transporter
LT = 2 days
7
Collect POD
From
Transporter
WH1
LT = 7 days
PT = 1 mins.
%C&A: 99%
8
Deliver
POD to
Accounting
Messenger
Batch = 1x/day
LT = 1 days
9
Review POD
For
Accuracy
Accounting
LT = 7 days
PT = 2 mins.
%C&A: 99%
10
Deliv er Bill;
Collect from
Customer;
Deposit
Sales
Batch = 1x
monthly
LT = 26 days
PT = 5 mins.
11
COLOR LEGEND
Logistics / W arehouse
Sales
Order Management
Production
10%
90%
Produce
Product
Plant 1
LT = 280 mins.
PT = 215 mins.
%C&A: 99%
4B
Pick
& Load
Order
WH2
LT = 40 mins.
PT = 3 mins.
%C&A: 99%
5B
40 Days Delivery to Payment Received3.5 Days Order Receipt to Ship
MonthlySales Volume
Wk1 = 14-23%
Wk2 = 19-24%
Wk3 = 23-25%
Wk4 = 30-42%
Obtain &
Revise Sales
Forecast
Sales
LT = 0 days
PT = 270 mins.
%C&A: 99%
1B
Hold S&OP
Meeting
6-7 People
LT = 5 days
PT = 3 hrs.
%C&A: 99%
2B
Create
Production
Plan
Production
Planning
LT = 5 days
PT = 1 hrs.
%C&A: 99%
3B
Produce
Product
Plant 2
LT = 280 mins.
PT = 215 mins.
%C&A: 99%
4C
Offline
Order
Form
Enter
Payment;
Clear Billing
Accounting
LT = 2 hrs.
PT = 1 mins.
%C&A: 99%
12
Accounting
Delivery
Order
(DO)
Pick
List
Proof of
Delivery
(POD)
Transfer
Report
Prod.
Plan
Check
Stock &
Reallocate
Logistics &
Warehouse
Batch = 1x/day
LT = 4 hrs.
PT = 2 mins.
%C&A: 99%
4
Prod.
Plan
plier
Receive
Material
Store
3C
Current State Value Stream Map
Order to Cash
24. Customer
3.0Â hrs.
21.0Â days
1.0Â hrs.
5.0Â days
3.6Â hrs.
0.6Â days
0.0Â hrs.
0.5Â days
15.0Â hrs.
30.0Â days
0.0Â hrs.
7.0Â days
8.0Â hrs. 0.0Â hrs.
5.0Â days
0.1Â hrs.
26.0Â days
0.0Â hrs.
0.2Â days Tota
Tota
Acti
SAP
Collect
Order From
Customer
Sales
LT = 15 mins.
PT = 15 mins.
%C&A: 99%
2
Collect
Customer
Orders
Order
Mgmt
LT = 15 mins.
PT = 15 mins.
%C&A: 99%
2B
Review &
Release
Credit Holds
Sales
LT = 4 hrs.
PT = 10 mins.
3
Issue DO
To
Transporter
WH1
LT = 4 hrs.
PT = 1 mins.
4
Load &
Prepare
Invoice
Logistics
LT = 4 hrs.
PT = 15 hrs.
5
Collect
POD from
Customer
Transporter
LT = 2 days
6
Enter
POD
WH1
LT = 7 days
PT = 1 mins.
%C&A: 99%
7
Deliver
POD to
Accounting
Messenger
LT = 1 days
8 Rev iew POD
for Accuracy;
Email Receipt
to Sales
Accounting
LT = 5 days
PT = 2 mins.
9
Produce
Product
Plant 1
LT = 285 mins.
PT = 215 mins.
%C&A: 99%
3B
Pick &
Stage
WH2
PT = 15 mins.
%C&A: 95%
4B
Create
Production
Plan
Production
Planning
LT = 5 days
PT = 1 hrs.
%C&A: 99%
2C
2%
Produce
Product
Plant 2
LT = 285 mins.
PT = 215 mins.
%C&A: 99%
3C
Accept
Customer
e-Payment
Bank
LT = 30 days
PT = 0 hrs.
%C&A: 99%
6B
Enter
Payment,
Clear Billing
Accounting
LT = 2 hrs.
PT = 1 mins.
11
Invoice
70%30%
Hold S&OP
Meeting
LT = 1 mo.
PT = 3 hrs.
1
40 Days Delivery to Payment Received1.5 Days Order Receipt to Ship
MonthlySales Volume
Wk1 = 25%
Wk2 = 25%
Wk3 = 25%
Wk4 = 25%
Prod.
Plan
Prod.
Plan
Pick
List
Invoice
Excel
Sheet
Inv entory
Report
Deliv er
Receipt &
Collect from
Customer
Sales
Batch = 1x
monthly
LT = 26 days
PT = 5 mins.
10
POD
50%
50%
98%
COLOR LEGEND
Logistics / W arehouse
Sales
Order Management
Production
Accounting
Future State Value Stream Map
Order to Cash
25. Š 2015 The Karen Martin Group, Inc. 25
Current State Value Stream Map
Outpatient Imaging
26. Š 2015 The Karen Martin Group, Inc. 26
Future State Value Stream Map
Outpatient Imaging
27. Traditional Mapping Method:
Process Flow Chart
How is this process performing?
Look up Customer
in Eclipse
SALES
New
Customer?
Enter Order
SALES
Print Ship Ticket
SALES
Load Trucks
SHIPPING
Enter Customer
Information
ADMIN
Perform Credit
Check
FINANCE
Okay?
Notify Sales COD
Only; Notify Admin
to update
Customer Profile
FINANCE
Yes
No
No
Yes
Product in
Stock?
Yes
Order Material
PURCHASING
No
Receive Material
RECEIVING
28. Complete
New Hire
Setup Form
Complete
Drug test
within 24
hours
HR Receives
results within
3 days and
issues offer
letter
P: Setup New hire as a vendor
IT: Setup user logins and provide
hardware, if needed,
F: Assign vehicle, issue cell phone
order uniforms and guides, if needed.
Submit
Candidate
for
background
check and
drug test.
HR Issues
Employee ID
and Notifies
HM & Support
Organizations
Signs offer
letter and
required yellow
forms. Fax to
HR
Call candidate
to welcome
and remind to
complete
forms
Gather
Support items
to transfer to
new hire on
day one
New Hire Setup Process Map
Good training tool, but how do we know what to improve?
CandidateHiringManagerAdministratorHumanResources
SupportTeam[IT,
Purchasing(P),
Fleet(F)]
29. Value Stream Map â Swim Lane Process Map
Benefits
Administrator
Receive
negative
drug
screen
results
Complete
âNew Hire
Approvalâ
form; send
to recruiter
Recruiter
Sign âNew
Hire
Approvalâ
form
Recruiter
Sign âNew
Hire
Approvalâ
form
Set up
employee
in SAP;
notify
hiring
manager
Hiring
Manager
Request
laptop on
âNew Hire
Equip.
Requestâ
form
IT
Manager
Approve
âNew Hire
Equip.
Requestâ
29
31. The Improved State Becomes Standard Work
0
1
0
15
6
-1
0
Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A
1
Fax PO to Sales
Rep
0 0 45%
2
Review PO;
clarify with
customer as
needed
20 2 90%
Fax PO to
warehouse
10 4 90%
5
6
Check inventory
levels; notify
Sales Rep re:
status
5 4 95%
Fax PO to Sales
Rep
5 0.33 90%
0 20 10 5 5
0 2 4 4 0.33
45% 90% 90% 95% 90%
0 20 10 5 5
Rolled %C&A
Critical Path LT
Total PT
Critical Path PT
5431 2
Mary Townsend
Hours Worked per Day Sally Dampier
Occurrences per Year Sam Parks
Current State Metrics-Based Process Map
Dave Morgan25-Jun-08
8 Facilitator
Process Details
Michael Prichard
Order FulfillmentProcess Name
Specific Conditions Domestic orders through sales force
37,500
Date Mapped
Sean Michaels
Sales Rep
Ryan AustinDiane O'Shea
Mapping Team
LT Units
Function /
Department
PT Units
Step # âş
Customer
Finance
Warehouse /
Shipping
Seconds
Minutes
Hours
Days
Seconds
Minutes
Hours
Days
Excel tool included with Metrics-Based Process Mapping book
32. Value Stream Mapping vs. Metrics-Based Process Mapping
Š 2015 The Karen Martin Group, Inc. 32
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro â Interconnected processes Micro â Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
35. Value Stream Mapping vs. Metrics-Based Process Mapping
Š 2015 The Karen Martin Group, Inc. 35
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro â Interconnected processes Micro â Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
36. VSM & MBPM: Same Metrics
36
Barriers
to flow
# people
PT
LT%C&A
37. Value Stream Mapping vs. Metrics-Based Process Mapping
Š 2015 The Karen Martin Group, Inc. 37
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro â Interconnected processes Micro â Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
39. Real-World VSM Facilitation Examples
⢠Two VPs arguing over which leaderâs area should perform a
certain process
⢠Discussion about outsourcing a functional area that will result
in 30 people being laid off
⢠Candid discussion about the risk of losing the companyâs #1
customer
⢠Candid discussion about a legal or regulatory matter
⢠Value stream needs level loading, work balancing and pull
Š 2015 The Karen Martin Group, Inc. 39
40. Real-World MBPM Facilitation Examples
⢠Frontline team member begins to recognize that the work he
does is 100% non-value-adding
⢠Supervisor dictates future state improvement ideas
⢠Manager reveals that she doesnât support the targets begin
set (nor the objective of the mapping session)
⢠Team doesnât feel authorized to make tactical decisions
⢠Two team members have obvious tension between them
⢠A team member shuts down
Š 2015 The Karen Martin Group, Inc. 40
41. Value Stream Mapping vs. Metrics-Based Process Mapping
Š 2015 The Karen Martin Group, Inc. 41
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro â Interconnected processes Micro â Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
45. 45
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
Specific
Conditions
Engineer to order, requires both hardware &
software customization
Value Stream
Champion
Nancy Little
Demand Rate 1,000 per year
Facilitator Dave Parks
Value Stream Mapping Charter
Scope Accountable Parties Logistics
Value Stream Capital equipment
Executive
Sponsor
Allen Ward
Event Dates
& Times
July 24-26, 2013
8:00 am - 5:00 pm
Last Step Production ships product
Boundaries &
Limitations
No new software; only minor changes to existing IT
systems; no additional staff; no budget changes
Briefing
Attendees
** required
*optional
** Allen W (COO), Joe M (CIO),
Sal T (VP Sales)
* Bruce R (VP Ops), Carlos P
(HR), Su T (CFO), Bill M (VP CS)
Base-camp
Location
Surf's Up - Room A
Trigger Customer submits RFQ
First Step Sales reviews the RFQ Logistics
Coordinator
Dave Parks
Meals
Provided
Continential breakfast & lunch
Desire to stay ahead of the competition & deepen customer loyalty. Function / Title Name Contact Information
Forecasted growth of 15% for next fiscal year. Sales, Director Sean Michaels
Briefing
Dates &
Times
July 24, 25, & 26
4:00-5:00 pmImprovement Time
Frame
Future state design is fully realized by
December 31, 2013.
Current State Problems & Business Needs Mapping Team
Competition's RFQ LT is 1 wk; PO to delivery is 4 wks Scrum Master Ryan Austin
Goals & Measurable Target Conditions Engineering, Vice President Nancy Little
Unclear & incorrect information flowing through value stream. IT, Director Diana Marie
RFQ lead time = 2 weeks; PO to software dev lead time = 5 weeks Finance, Controller Dave Gerald
Improve quality of information flowing throughout value stream. Customer (contract manufacturer) JR Hunt
Reduce RFQ LT from 2 weeks to 3 days (70% improvement). Manufacturing, Director Ambreen Motiwala
Reduce PO to software dev LT from 5 wks to 3 wks (40% improvement) Customer Service, Manager Danny Tran
Faster delivery; less hassle; less cost. Function Name Contact Information
Better working relationships between sales, estimating & engineering. Planning / Purchasing, Planner Lourdes Dwyer
Benefits to Customers & Business On-Call Support
Relevant Data Agreement
Freed capacity to absorb additional business w/o increasing staff. Production Supervisor Tom St. James
Operational: LT in segments (RFQ to quote; PO to development). Signature: Signature: Signature:
Sales effectiveness: RFQ conversion rate. Executive Sponsor Value Stream Champion Facilitator
Financial: Estimate-to-actual cost comparison.
Date: Date: Date:
46. Value Stream Scoping Diagram
Defining Specific Conditions
Golden State
Equipment, Inc.
Capital
Equipment
Catalog
Configure
to order
Engineer
to order
Custom
hardware
Custom
software
Both
New Product
Development
Spares &
subassemblies
Catalog
Engineer to
order
46
47. 47
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
Specific
Conditions
Engineer to order, requires both hardware &
software customization
Value Stream
Champion
Nancy Little
Demand Rate 1,000 per year
Facilitator Dave Parks
Value Stream Mapping Charter
Scope Accountable Parties Logistics
Value Stream Capital equipment
Executive
Sponsor
Allen Ward
Event Dates
& Times
July 24-26, 2013
8:00 am - 5:00 pm
Last Step Production ships product
Boundaries &
Limitations
No new software; only minor changes to existing IT
systems; no additional staff; no budget changes
Briefing
Attendees
** required
*optional
** Allen W (COO), Joe M (CIO),
Sal T (VP Sales)
* Bruce R (VP Ops), Carlos P
(HR), Su T (CFO), Bill M (VP CS)
Base-camp
Location
Surf's Up - Room A
Trigger Customer submits RFQ
First Step Sales reviews the RFQ Logistics
Coordinator
Dave Parks
Meals
Provided
Continential breakfast & lunch
Desire to stay ahead of the competition & deepen customer loyalty. Function / Title Name Contact Information
Forecasted growth of 15% for next fiscal year. Sales, Director Sean Michaels
Briefing
Dates &
Times
July 24, 25, & 26
4:00-5:00 pmImprovement Time
Frame
Future state design is fully realized by
December 31, 2013.
Current State Problems & Business Needs Mapping Team
Competition's RFQ LT is 1 wk; PO to delivery is 4 wks Scrum Master Ryan Austin
Goals & Measurable Target Conditions Engineering, Vice President Nancy Little
Unclear & incorrect information flowing through value stream. IT, Director Diana Marie
RFQ lead time = 2 weeks; PO to software dev lead time = 5 weeks Finance, Controller Dave Gerald
Improve quality of information flowing throughout value stream. Customer (contract manufacturer) JR Hunt
Reduce RFQ LT from 2 weeks to 3 days (70% improvement). Manufacturing, Director Ambreen Motiwala
Reduce PO to software dev LT from 5 wks to 3 wks (40% improvement) Customer Service, Manager Danny Tran
Faster delivery; less hassle; less cost. Function Name Contact Information
Better working relationships between sales, estimating & engineering. Planning / Purchasing, Planner Lourdes Dwyer
Benefits to Customers & Business On-Call Support
Relevant Data Agreement
Freed capacity to absorb additional business w/o increasing staff. Production Supervisor Tom St. James
Operational: LT in segments (RFQ to quote; PO to development). Signature: Signature: Signature:
Sales effectiveness: RFQ conversion rate. Executive Sponsor Value Stream Champion Facilitator
Financial: Estimate-to-actual cost comparison.
Date: Date: Date:
10
people
max!