Value Stream Mapping
The flow of your business
from start to customer
March 8, 2012
“Figuring out the right
things to do isn’t nearly
as difficult as continuing
to do them over the long
term.”
Our webinar will begin in a few minutes.
2
Value Stream Mapping
The flow of your business
from start to customer
March 8, 2012
“Remember:
The problem for most of
us isn’t knowing what to
do… it’s doing it.”
Our webinar will begin in a few minutes.
4
Value Stream Mapping
The flow of your business
from start to customer
March 8, 2012
“The greatest attribute
for any business leader is
perseverance.”
Our webinar will begin in a few minutes.
6
Value Stream Maps
The flow of your business
from start to customer
March 8, 2012
“All organizations are
perfectly designed to get
the results they are now
getting. If we want different
results, we must change the
way we do things.”
Tom Northup
Our webinar will begin in a few minutes.
8
Value Stream Mapping
The flow of your business
from start to customer
March 8, 2012
“It’s useful to think of
excellence in two broad
categories:
Customer excellence and
business excellence.”
Our webinar will begin in a few minutes.
10
Value Stream Mapping
The flow of your business
from start to customer
March 8, 2012
“Satisfied customers drive
business success – and
business success enables
investment to satisfy
customers.”
Our webinar will begin in a few minutes.
12
Value Stream Mapping
The flow of your business
from start to customer
March 8, 2012
“Excellence is not a
destination; it is a
continuous journey that
never ends.”
Brian Tracy
Our webinar will begin in a few minutes.
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Value Stream Mapping
The flow of your business
from start to customer
March 8, 2012
“We are what we
repeatedly do. Excellence,
then, is not an act but a
habit.”
Aristotle
Our webinar will begin in a few minutes.
16
Value Stream Mapping
The flow of your business
from start to customer
March 8, 2012
“People go in the
direction leadership is
walking, not pointing.”
Our webinar will begin in a few minutes.
18
Value Stream Mapping
The flow of your business
from start to customer
March 8, 2012
“Every job is a self-portrait
of the person who does it.
Autograph your work with
excellence. “
Unknown
Our webinar will begin in a few minutes.
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Value Stream Mapping
The flow of your business
from start to customer
March 8, 2012
“Excellence is doing
ordinary things
extraordinarily well."
John W. Gardner
Our webinar will begin in a few minutes.
22
Value Stream Mapping
The flow of your business
from start to customer
March 8, 2012
“Discipline is the bridge
between goals and
accomplishments.”
Jim Rohn
Our webinar will begin in a few minutes.
24
Value Stream Mapping
The flow of your business
from start to customer
March 8, 2012
"Measure is the ability to
mesh strategy with reality,
align people with goals,
and achieve the promised
results.“
Larry Bossidy
Our webinar will begin in a few minutes.
26
Value Stream Mapping
The flow of your business
from start to customer
March 8, 2012
“The strategic agenda
demands discipline and
continuity; its enemies are
distraction and
compromise.”
Michael E. Porter
Our webinar will begin in a few minutes.
28
Value Stream Mapping
The flow of your business
from start to customer
March 8, 2012
“One of the major barriers
to achieving lasting
excellence is how little
formal effort organizations
put into learning how to
execute strategy.”
Our webinar will begin in a few minutes.
30
Value Stream Mapping
The flow of your business
from start to customer
March 8, 2012
Your Presenter
Matt Lauth
Managing Partner
Strategy Execution Advisors
Certified Business Coach
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Value Stream Mapping
Join me to find out how the Six Disciplines Program makes
creating Value Stream Map easy and fun. During this webinar
you'll learn:
1. What is a Value Stream Map?
2. Where does it fit in the overall management of your org?
3. Why is it important?
4. How do I go about creating one?
5. How do I use it to manage the business?
This is 1 hour of your time that will give you the information
needed to implement a system to ask for and get candid
feedback to help every member of the organization improve their
personal performance.
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Principles of Lean
• VALUE – benefit customer receives
• VALUE STREAM – required steps to deliver the products
or services
• FLOW – How the product/service flows through the
process
• PULL – Producing and delivering a product/service only
when requested by a Customer
• EXCELLENCE – The elimination of waste
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LEAN & SIX SIGMA
• LEAN is about speed, efficiency.
• SIX SIGMA is about quality.
• Neither LEAN or SIX SIGMA confirms what you are
working on is the right thing to be working on. This
is an assumption or input into LEAN and SIX
SIGMA activities.
• The confirmation of “should” comes from
STRATEGY.
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What is Value Stream Mapping?
Value stream mapping is a lean manufacturing
technique used to analyze and design the flow
of materials and information required to bring
a product or service to a consumer.
The output is a special type of flow chart.
At Toyota, where the technique originated, it is
known as "material and information flow
mapping". It can be applied to nearly any value
chain.
Source: www.wikipedia.com
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Purpose of Value Stream
Mapping
Provide optimum value to the customer through a
complete value creation process with minimum
waste in:
• Design (concept to customer)
• Build (order to delivery)
• Sustain (in-use through life cycle to service)
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Implementation Steps
1. Identify the target product, product family, or service.
2. Draw while on the “shop floor” a current state value stream
map, which shows the current steps, delays, and information
flows required to deliver the target product or service. This
may be a production flow (raw materials to consumer) or a
design flow (concept to launch). There are “standard”
symbols for representing supply chain entities.
3. Assess the current state value stream map in terms of
creating flow by eliminating waste.
4. Draw a future state value stream map.
5. Work toward the future state condition.
Source: www.wikipedia.com
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Standard Symbols
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© 2004-2007 Six Disciplines, LLC All Rights Reserved.
VSM Tools
Hines and Rich (1997) defined seven value stream
mapping tools:
1.
2.
3.
4.
5.
6.
7.
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Process Activity Mapping
Supply chain responsiveness matrix
Product Variety Funnel
Quality filter mapping
Forrester effect mapping
Decision point analysis
Overall Structure Maps
Value Stream Mapping Example
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© 2004-2007 Six Disciplines, LLC All Rights Reserved.
42
What is Value?
• A capability provided to a customer
o of the highest quality,
o at the right time,
o at an appropriate price, as defined by the
customer.
• "Value" is what the customer is buying
• The key metric is lead time.
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Source: www.beyondlean.com
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6 Tips
1. Identify the basic process steps before conducting your
walkthrough/workshop
2. Identify data requirements in advance of the workshop
3. Keep the map simple
4. Walk the process
5. Map the value stream as a team
6. Ask lots of questions
Source: www.valuestreamguru.com
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Challenges
• Identifying the correct value streams to invest in
• Gaining organizational support
• Viewing the complete value stream
• Getting the right people involved
• Supporting the implementation of the future state
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Summary
• Value stream mapping is a way to visual
document the value you provide your
customers.
• Part of lean methodologies
• Applicable to the whole organization, not just
the “shop floor”
• Need to align with the strategy of the
organization to ensure focus is on the right
value streams.
• Need to involve the right people at all stages
of the stream
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© 2004-2007 Six Disciplines, LLC All Rights Reserved.
www.StrategyExecutionAdvisors.com
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Upcoming Webinars
Upcoming Webinars
1.
2.
3.
4.
March 8th: Value Stream Mapping
March 15th: Succession Planning
March 22nd: Benchmarking Performance
March 29th: Quarterly Review Process
For more information and to register, visit:
www.StrategyExecutionAdvisors.com/webinars
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Thank You!
Matt Lauth
[email protected]
(419) 348-8046