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Value Stream Mapping. Management is Essential. The lean transformation should provide:. Growth with improved margins Growth with minimal capital Growth without more employees. What are our main stumbling blocks?. Years of bad habits Financial focus with limited cost understanding

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value stream mapping

Value Stream Mapping

Management is Essential

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?
  • Years of bad habits
  • Financial focus with limited cost understanding
  • A lack of system thinking and incentives
  • Metrics supporting a legacy model
  • Limited customer focus
  • Absence of effective operating strategies
how have these stumbling blocks been addressed
How have these stumbling blocks been addressed?
  • Programs of the month (band aids)
  • Meetings, meetings, meetings, meetings
if we could just start over with
If we could just start over…..with
  • Activities aligned with a business strategy
  • Efforts focused on NET improvements for the company
  • Metrics supportive of fundamental change
  • Simple, constant communication of 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 definition
Value Stream Definition
  • 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 improvement vs process improvement
Value Stream Improvement vs. Process Improvement

Value Stream

Process

Process

Process

Customer

Assembly

Cell

Stamping

Welding

RawMaterial

Finished Product

value stream mapping9
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
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

“Customer”

Kaizen

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
planning and implementing
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 mapping22
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 management24
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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