Value stream mapping and management
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Value Stream Mapping and Management. Agenda. How We Got Here Value Stream Mapping Value Stream Management. The lean transformation should provide:. Growth with improved margins Growth with minimal capital Growth without more employees. What are our main stumbling blocks?.

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Value stream mapping and management

Value Stream Mapping and Management


Agenda

Agenda

  • How We Got Here

  • Value Stream Mapping

  • Value Stream Management


The lean transformation should provide

The lean transformation should provide:

  • Growth with improved margins

  • Growth with minimal capital

  • Growth without more employees


What are our main stumbling blocks

What are our main stumbling blocks?

  • 75 years of bad habits

  • Financial focus with limited cost understanding

  • A lack of system thinking and incentives

  • Metrics supporting a 75 year old model

  • Limited customer focus

  • Absence of effective operating strategies


How have we elected to address these stumbling blocks

How have we elected to address these stumbling blocks?

  • Programs of the month (band aids)

  • Meetings, meetings, meetings, meetings

  • Silo optimization


What s the impact of silo improvements

What’s the impact of “silo” improvements?

  • “Plant to plant” key players

Material Control

Purchasing

Transportation

Slide courtesy of HLS, Inc.


If we could just start over with

If we could just start over…..with

  • Activities aligned with our business strategy

  • Efforts focused on NET improvements for the company

  • Metrics supportive of fundamental change

  • Simple, constant communication of our plans and achievements as an enterprise


Why not take the value stream perspective

Why not take the value stream perspective?

  • “Whenever there is a product (or service) for a customer,

  • there is a value stream. The challenge lies in seeing it.”

  • 3 enterprise value streams:

  • Raw Materials to Customer - Manufacturing

  • Concept to Launch - Engineering

  • Order to Cash - Administrative Functions


Value stream mapping and management

A Value Stream is the set of all actions (both value added and non value added) required to bring a specific product or service from raw material through to the customer.


Value stream mapping and management

Value Stream Improvement vs. Process Improvement

Value Stream

Process

Process

Process

Customer

Assembly

Cell

Stamping

Welding

RawMaterial

Finished Product


Value stream mapping

Value Stream Mapping

  • Follow a “product” or “service” from beginning to end, and draw a visual representation of every process in the material & information flow.

  • Then, draw (using icons) a “future state” map of how value should flow.


Value stream mapping and management

Value Stream Map


Levels of a value stream

process level

single plant

(door to door)

multiple plants

across companies

Levels of a Value Stream

Start Here


Value stream managers

Process 1

Process 2

Process 3

Value Stream Managers

Each Value Stream needs a Value Stream Manager

“Customer”

Kaizen

  • The conductor of implementation:

    • Focused on system wins

    • Reports to the top dog

The Value

Stream Manager


Using the value stream mapping tool

Using the Value Stream Mapping Tool

Product/Service “Family”

Understanding how things currently operate. Our Baseline!

current state drawing

future state drawing

Designing a lean flow. Our Vision!

plan and implementation

The goal of mapping!


Current state mapping

Current State Mapping

  • Completed in a day

  • Performed by a cross functional team of middle managers responsible for implementing new ideas

  • Resulting in a picture (and team observations) of what we “see” when following the product


Future state mapping

Future State Mapping

  • Completed in a day with the same team

  • Focused on:

    • Creating a flexible, reactive system that quickly adapts to changing customer needs

    • Eliminating waste

    • Creating flow

    • Producing on demand


Value stream mapping and management

Current State Value Stream Map


Value stream mapping and management

Future State Value Stream Map


Value stream mapping and management

Planning and Implementing

  • Don’t Wait!

  • You need a plan!

    • Tie it to your business objectives.

    • Make a VS Plan: What to do by when.

    • Establish an appropriate review frequency.

    • Conduct VS Reviews walking the flow.


Remember the other two value streams

Remember the other two value streams?

  • Administrative activities are often a major percentage of the total throughput time

  • Goal: 400% improvement in productivity over 10 years

  • Modest opportunities on the plant floor; Untapped opportunities off the plant floor


Enterprise perspective

Enterprise Perspective

  • Engineer to Order

  • Configure to Order

  • Capital equipment manufacturers

  • Small companies (<500 employees)

  • Service Firms


We might begin in

We might begin in…

  • Processes directly impacting the part production

    • Engineering

    • Quoting

  • Or, in value streams with direct customer contact

    • Order entry

    • Invoicing


Value stream mapping and management

Value Stream Mapping

Helps you visualize more than the single process level

Links the material and information flows

Provides a common language

Provides a blueprint for implementation

More useful than quantitative tools

Ties together lean concepts and techniques


Value stream management

Value Stream Management

  • The map is just a picture of ideas!

  • The fundamental change is in how we choose to manage the value stream as an integrated system of decisions and tasks.


Value stream management1

Value Stream Management

  • Use your strategic plan as a guide

  • Find the gaps in necessary performance

  • Improve value streams to meet the performance

  • Create new metrics to support new ways of thinking and acting

  • Understand true product family costs

  • Manage operations by the value stream data

  • Always have a future state


Critical success factors

Critical Success Factors

  • Management must understand, embrace, and lead the organization into lean thinking

  • Value stream managers must be empowered and enabled to manage implementations

  • Improvements must be planned in detail with the cross functional Kaizen teams

  • Successes must be translated to the bottom line and/or market share


Putting it to work

Putting it to Work!

  • Continuously improving fundamentally flawed processes will yield limited results.

  • Simply automating existing manual processes can also yield limited results.

  • Seriously challenging old practices will provide the dramatic results desired.


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