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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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Presentation Transcript
  • 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



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

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










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.
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



  • 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

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

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.