01-07-2014 value stream analysis part1
TRANSCRIPT
1
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
Value Stream Analysis:Beyond the Mechanics (Part 1)
Webinar
January 7, 2014
© 2014 The Karen Martin Group, Inc.
Welcome!
• Argentina
• Australia
• Belgium
• Bulgaria
• Canada
• Denmark
• France
• Great Britain
• Israel
• Lithuania
• Latvia
• Morocco
• Netherlands
• New Zealand
• Russia
• Saudi Arabia
• Spain
• United States
2
2
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc.
Industries Represented• Accounting
• Aerospace
• Banking
• Biotech & Pharma
• Construction
• Defense
• Education
• Energy
• Financial Services
• Government
• Healthcare
• Information Technology
• Insurance
• Legal
• Manufacturing
• Publishing
• Real Estate
• Retail
• Telecommunications
• Transportation
Coach / Facilitator / Consultant / Trainer: Lean transformation & business performance improvement in all industries.
Teacher: University of California, San Diego
Author & Speaker:
Karen Martin, President
The Karen Martin Group, Inc.
www.ksmartin.com
4
2013 Shingo Prize winner!
www.ksmartin.com/subscribe
3
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc. 5
After the webinar…
• All recordings are available on:
– www.vimeo.com/karenmartingroup
– www.youtube.com/karenmartingroup
– www.slideshare.net/karenmartingroup
– www.ksmartin.com/webinars
• The materials are available on:
– www.slideshare.net/karenmartingroup
Before the webinar…
• The materials are available on:
– www.ksmartin.com/files/webinarmaterials/MM‐DD‐YYYY_slides.pdf (or _handout.pdf)
More VSM Webinars!11:00 am‐12:15 pm PT
6
• Tuesday, January 21, 2014– Value Stream Analysis: Beyond the Mechanics – Part 2 (Mapping Execution)
– https://www2.gotomeeting.com/register/835695002
• Tuesday, February 18, 2014– Value Stream Analysis: Beyond the Mechanics – Part 3 (Executing the Transformation Plan)
– https://www2.gotomeeting.com/register/154959186
• Thursday, March 27, 2014– Value Stream Mapping: Case Studies
– https://www2.gotomeeting.com/register/288652530
© 2014 The Karen Martin Group, Inc.
4
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
PrepareUnderstand Current State
DesignFuture State
Develop Transformation
Plan
Execute Transformation
Plan
Three Consecutive Days4 Weeks Prior to Mapping
Following Mapping
Repeat
Value Stream Mapping ActivityPhases and Timing
© 2013 The Karen Martin Group, Inc. 7
TuesdayJanuary 7, 2014
TuesdayFebruary 18, 2014
TuesdayJanuary 21, 2014
© 2014 The Karen Martin Group, Inc. 8
Want to Learn about Upcoming Webinars?www.ksmartin.com/webinars
www.ksmartin.com/subscribe
5
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc. 9
www.ksmartin.com/VSM
© 2014 The Karen Martin Group, Inc. 10
You will learn…
• The importance of a well‐crafted charter.
• Leadership’s role in the planning process & engagement tips.
• How to define the scope and set appropriate target objectives.
• Which leaders MUST be on the mapping team.
• Techniques for properly socializing the VSM charter.
• Logistics details that matter.
6
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc. 11
Why Value Stream Mapping? Why Now?
To order from Amazon: www.bitly.com/VSMbkFor more information: www.ksmartin.com/VSM
© 2014 The Karen Martin Group, Inc. 12
Value Stream Mapping’s Roots
• Value
• Value Stream
• Flow
• Pull
• Perfection
1996
7
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
Value Stream Defined
Value Stream: All of the activities required to
transform a customer request into a good or service.
13
Value Stream
First defined in The Machine That Changed the World, James Womack, Daniel Jones, & Daniel Roos, 1990.
Process ProcessProcess
Customer
Request
Customer
Receipt
© 2014 The Karen Martin Group, Inc.
© 2014 The Karen Martin Group, Inc. 14
Value Stream Mapping’s Roots
Mike Rother & John Shook, 1999 Beau Keyte & Drew Locher, 2004
Whenever there is a product for a customer, there is a value stream.
The challenge lies in seeing it.
— Mike Rother & John Shook, Learning to See
8
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc. 15
Value Stream Mapping: Common Failings
• Using the mapping process solely as a work design exercise
• Using the map to make tactical improvements
• Creating maps but taking no action
• Mapping with an inappropriate team—or no team at all
• Creating value stream maps during a kaizen event
• Creating maps with no metrics
• Mapping without a team charter or not socializing it
© 2014 The Karen Martin Group, Inc. 16
Value Stream Mapping Benefit:Seeing the Whole
16
Value Stream Mapping enables a mapping team to get ABOVE the work
9
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
17
Value Stream Mapping: Visualize your Entire Operation on a Single Sheet of Paper
© 2014 The Karen Martin Group, Inc. 17
© 2014 The Karen Martin Group, Inc.
VSM Promotes Systems Thinking
18
System Efficiency = Optimal Value Stream Performance
Individual Efficiency = Sub‐optimization
© 2014 The Karen Martin Group, Inc.
10
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
Work: Degrees of Granularity
Value Stream
Process Process Process
Step StepStep
19
Macro Perspective
• Define strategic direction (“what”)
• Heavy leadership involvement
• Value Stream Mapping
Micro Perspective
• Identify the tactical “how”
• Heavy frontline involvement
• Metrics‐Based Process Mapping
© 2014 The Karen Martin Group, Inc.
Work: Degrees of GranularityOrder Fulfillment Value Stream
Order Fulfillment
Quote Design Produce
Fabricate ShipAssemble
TacticalProcess‐level Perspective
StrategicValue‐stream Perspective
20© 2014 The Karen Martin Group, Inc.
11
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
Work: Degrees of GranularityHiring Value Stream
Hire
Recruit Select Onboard
Write job description
Post externallyPost internally
21© 2014 The Karen Martin Group, Inc.
TacticalProcess‐level Perspective
StrategicValue‐stream Perspective
© 2014 The Karen Martin Group, Inc. 22
Value Stream Maps ≠ Process Flow Charts
12
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc. 23
Value Stream Maps ≠ Swim Lane Process Maps
0
1
0
15
6-1
0Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A
1Fax PO to Sales
Rep0 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
Rep5 0.33 90%
0 20 10 5 50 2 4 4 0.33
45% 90% 90% 95% 90%0 20 10 5 5
Rolled %C&ACritical 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'SheaMapping Team
LT Units
Function / Department
PT Units
Step # ►
Customer
Finance
Warehouse / Shipping
Seconds
Minutes
Hours
Days
Seconds
Minutes
Hours
Days
Metrics‐Based Process Mapping is used to improve tactically & define standard work
© 2014 The Karen Martin Group, Inc. 24
Value Stream Maps:Strategy Before Tactics
Where am I? Where do I want
to go?
I‐80 option I‐40 option I‐70 option
Which route should I take?
? ??
13
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc. 25
Value Stream Mapping Benefit:Reaching Leadership Consensus
26
Basic Current State Value Stream Map: 3 Sections
1
2
3
© 2014 The Karen Martin Group, Inc.
14
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc. 27
Customer
1
Process 3
Function E
LT = 0.5 daysPT = 30 mins.%C&A = 95%
4
4
10 mins.
1 days
120 mins.
2 days
30 mins.
0.5 days Total LT = 3.5 days
Total PT = 160 mins.
Activity Ratio = 9.5%
Rolled %C&A = 89.3%
Process 2
Function C
LT = 2 daysPT = 120 mins.%C&A = 95%
3
3
IT-1 IT-2
5 items
Process 1
Function A
LT = 1 daysPT = 10 mins.%C&A = 99%
5
2
1 items 10 items
Standard work
Modified approvals
IT interface
Cross-train
Cross-train
Standard work
Error proof
Basic Value Stream Map: Future State
© 2014 The Karen Martin Group, Inc. 28
Basic Value StreamFuture State Performance Metrics
Metric Current State Projected
Future State Projected
% Improvement
Total Lead Time 9.5 days 3.5 days 63.2%
Total Process Time 180 minutes 160 minutes 11.1%
Activity Ratio 3.9% 9.5% 143.6%
Rolled % Complete & Accurate
30.0% 89.3% 197.7%
User defined
User defined
15
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc. 29
Executing Transformation
Plan
Value Stream Mapping
Making Specific
Improvements
PrepareUnderstand Current State
DesignFuture State
Develop Transformation
Plan
Execute Transformation
Plan
Three Consecutive Days4 Weeks Prior to Mapping
Following Mapping
Repeat
Value Stream Mapping ActivityPhases and Timing
© 2013 The Karen Martin Group, Inc. 30
16
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
PrepareUnderstand Current State
DesignFuture State
Develop Transformation
Plan
Execute Transformation
Plan
Activity Preparation
1. Engage executive sponsor2. Draft charter3. Socialize charter4. Plan logistics5. Gather data6. Deliver VSM overview
31© 2014 The Karen Martin Group, Inc.
© 2014 The Karen Martin Group, Inc.
VSM Preparation Phase Activities
• Hold initial conversation with executive sponsor, value stream champion & facilitator.
• Draft charter– Purpose
– Goals
– Scope
– Team
– Logistics (start/end times, location, briefings)
• Socialize charter
• Plan logistics– Send meeting invitations (to
briefing attendees as well)
– Talk with prospective gemba interviewees
– Gather relevant data
– Book “base camp” room
– Gather supplies
– Order food
• Gather relevant data
• Hold value stream mapping overview session
32
17
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc. 33
Key Roles: Considerations
• Executive Sponsor– Typically VP or higher
– Authority over significant portion of value stream (or strong relationship w/ peer group)
– Ultimately accountable for results
– Must attend briefings
• Value Stream Champion– Oversee significant portion of the value stream
– Heavily engaged in entire value stream transformation (own the transformation plan)
– Member of mapping team
– In small companies or those just starting out, the VS Champion and Exec Sponsor could be the same person.
• Facilitator– Objective; no “skin in the game”
– Skilled in both mapping/improvement mechanics, and high‐level team dynamics.
© 2014 The Karen Martin Group, Inc.
VSM Preparation Phase Activities
• Hold initial conversation with executive sponsor, value stream champion & facilitator.
• Draft charter– Purpose
– Goals
– Scope
– Team
– Logistics (start/end times, location, briefings)
• Socialize charter
• Plan logistics– Send meeting invitations (to
briefing attendees as well)
– Prepare for value stream walks (e.g., talk with prospective gemba interviewees)
– Gather relevant data
– Book “base camp” room
– Gather supplies
– Order food
• Gather relevant data
• Hold value stream mapping overview session
34
18
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc. 35
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 Date: Date:engagement, financials, lead time, safety records, etc.
effectiveness, market trends, customer satisfaction, employee Signature:
Date:
Relevant Data Agreement
Examples: work volume & volume variation, process quality &
Executive SponsorWhat data is required to understand relevant current state isues.
Signature: Signature:
How will the business, internal and external customers, and Function
internal and external suppliers benefit from value stream improvement? SMEs that may not be needed full time
Always a nice touch; keeps the team from wandering
On-site, ample wall space, quiet/private location
Benefits to Customers & Business On-Call Support
Increase <defined metric> from X to Y (Z% improvement).
Reduce <defined metric> from X to Y (Z% improvement).
Measurable Target Condition
What's driving the need for improvement? Function
Leadership-heavy
Current State Problems & Business Needs Mapping Team
Boundaries & Limitations
Improvement Time Frame
What is the team NOT authorized to change?
Typically 3-6 months
Last Step Task on last process block
Logistics Coordinator
Not always needed
Aids in consensus building and organizational learning. Typically the last hour of the day.
First Step Task on first process block
Briefing Dates &
Times
Meals Provided
Briefing Attendees
** required *optional
List the the people that are required to attend the briefings (**) and those whose attendance is optional (*).
Demand Rate
Trigger
How many times is this done per wk, qtr, mo, or yr?
What initiates the process?
Value Stream Mapping CharterScope Accountable Parties Logistics
Required: typically VP or C-level
If needed—often director or manager level
Specific Conditions
What circumstances are included and excluded? (e.g., type of customer, geographic location, etc.)
Value Stream Champion
Value stream being improvedExecutive
SponsorValue Stream
Event Dates & Times
3 days typically; consecutive is best; 6 hrs per day minimum; 7 or 8 hrs is best
Required: skilled, objective person leading the activity
Base-camp Location
Facilitator
Name
Name
FacilitatorValue Stream Champion
Contact Information
Contact Information
Charter: Critical planning, communication, and consensus‐building tool
© 2014 The Karen Martin Group, Inc. 36
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 Date: Date:
Name
Name
Lourdes Dwyer
Diana Marie
Dave Gerald
Ryan Austin
FacilitatorValue Stream Champion
Sean Michaels
Contact Information
Contact Information
Demand Rate
Trigger
1,000 per year
Customer submits RFQ
Value Stream Mapping CharterScope Accountable Parties Logistics
Allen Ward
Nancy LittleSpecific
Conditions Engineer to order, requires both hardware & software customization
Value Stream Champion
Capital equipmentExecutive
SponsorValue Stream
Event Dates & Times
July 24-26, 20138:00 am - 5:00 pm
Dave ParksBase-camp
LocationFacilitator
Current State Problems & Business Needs Mapping Team
Boundaries & Limitations
Improvement Time Frame
No new software; only minor changes to existing IT systems; no additional staff; no budget changes
Future state design is fully realized by December 31, 2013.
Last Step Production ships product
Logistics Coordinator
Dave Parks
July 24, 25, & 264:00-5:00 pm
First Step Sales reviews the RFQ
Briefing Dates &
Times
Meals Provided
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)
(Competition's RFQ LT is 1 wk and PO to delivery is 4 wks) Scrum Master
Goals & Measurable Target Conditions Engineering, Vice President
Unclear & incorrect information flowing through value stream. IT, Director
Lead time for RFQ turnaround = 2 weeks; PO to software dev = 5 weeks Finance, Controller
Desire to stay ahead of the competition & deepen customer loyalty. Function / Title
Forecasted growth of 15% for next fiscal year. Sales, Director
Reduce PO to software development lead time by a minimum of 50%. Customer Service, Manager
Ambreen Motiwala
Danny Tran
Nancy Little
Reduce RFQ lead time by a minimum of 50%. Manufacturing, Director
Freed capacity to absorb additional business w/o increasing staff. Production Supervisor
Faster delivery; less hassle; less cost. Function
Better working relationships between sales, estimating & engineering. Planning / Purchasing, Planner
Continential breakfast & lunch
Surf's Up - Room A
Tom St. James
Benefits to Customers & Business On-Call Support
JR HuntImprove quality of information flowing throughout value stream. Customer (contract manufacturer)
Operational: LT in segments (RFQ to quote; PO to development). Signature:
Date:
Relevant Data Agreement
Financial: Estimate-to-actual cost comparison.
Executive SponsorSales effectiveness: RFQ conversion rate.
Signature: Signature:
19
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc. 37
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 Date: Date:engagement, financials, lead time, safety records, etc.
effectiveness, market trends, customer satisfaction, employee Signature:
Date:
Relevant Data Agreement
Examples: work volume & volume variation, process quality &
Executive SponsorWhat data is required to understand relevant current state isues.
Signature: Signature:
How will the business, internal and external customers, and Function
internal and external suppliers benefit from value stream improvement? SMEs that may not be needed full time
Always a nice touch; keeps the team from wandering
On-site, ample wall space, quiet/private location
Benefits to Customers & Business On-Call Support
Increase <defined metric> from X to Y (Z% improvement).
Reduce <defined metric> from X to Y (Z% improvement).
Measurable Target Condition
What's driving the need for improvement? Function
Leadership-heavy
Current State Problems & Business Needs Mapping Team
Boundaries & Limitations
Improvement Time Frame
What is the team NOT authorized to change?
Typically 3-6 months
Last Step Task on last process block
Logistics Coordinator
Not always needed
Aids in consensus building and organizational learning. Typically the last hour of the day.
First Step Task on first process block
Briefing Dates &
Times
Meals Provided
Briefing Attendees
** required *optional
List the the people that are required to attend the briefings (**) and those whose attendance is optional (*).
Demand Rate
Trigger
How many times is this done per wk, qtr, mo, or yr?
What initiates the process?
Value Stream Mapping CharterScope Accountable Parties Logistics
Required: typically VP or C-level
If needed—often director or manager level
Specific Conditions
What circumstances are included and excluded? (e.g., type of customer, geographic location, etc.)
Value Stream Champion
Value stream being improvedExecutive
SponsorValue Stream
Event Dates & Times
3 days typically; consecutive is best; 6 hrs per day minimum; 7 or 8 hrs is best
Required: skilled, objective person leading the activity
Base-camp Location
Facilitator
Name
Name
FacilitatorValue Stream Champion
Contact Information
Contact Information
Patient care
Inpatient
Medical/Surgical
Intensive Care
Pediatric
Outpatient
Vaccine Clinic
Imaging
X‐Rays
CT Scans
MRI
Mammography
OB/GYNServices
Value Stream Scoping DiagramDefining Specific Conditions
Potential selection criteria:• Highest volume?• Highest margin?• Most painful?• Most supportive
leadership?
© 2013 The Karen Martin Group, Inc. 38
20
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
Value Stream Scoping DiagramDefining Specific Conditions
Golden State Equipment, Inc.
Capital Equipment
Catalog
Configure to order
Engineer to order
Custom hardware
Custom software
BothNew Product Development
Spares & subassemblies
Catalog
Engineer to order
39© 2014 The Karen Martin Group, Inc.
© 2014 The Karen Martin Group, Inc. 40
Where should the “fenceposts” be?Function Activity
Marketing Generates sales leads
Sales Calls on and qualifies customers
Customer Submits RFQ to sales
Sales Reviews RFQ
Estimating Generates quote
Sales Approve quote
Customer Accepts quote; submits a PO
Sales Approves PO
Customer service Creates SO; compiles spec package
EE/ME design Designs product; generates BOM
Customer Approves design
EE/ME design Forwards design to SW dev
Software Dev Writes code
Purchasing/Planning Releases WO; schedules production
Supplier (external) Delivers materials
Production Manufactures & ships product
Customer Installs equipment
Field service Conducts 90‐day follow‐up
21
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc. 41
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 Date: Date:engagement, financials, lead time, safety records, etc.
effectiveness, market trends, customer satisfaction, employee Signature:
Date:
Relevant Data Agreement
Examples: work volume & volume variation, process quality &
Executive SponsorWhat data is required to understand relevant current state isues.
Signature: Signature:
How will the business, internal and external customers, and Function
internal and external suppliers benefit from value stream improvement? SMEs that may not be needed full time
Always a nice touch; keeps the team from wandering
On-site, ample wall space, quiet/private location
Benefits to Customers & Business On-Call Support
Increase <defined metric> from X to Y (Z% improvement).
Reduce <defined metric> from X to Y (Z% improvement).
Measurable Target Condition
What's driving the need for improvement? Function
Leadership-heavy
Current State Problems & Business Needs Mapping Team
Boundaries & Limitations
Improvement Time Frame
What is the team NOT authorized to change?
Typically 3-6 months
Last Step Task on last process block
Logistics Coordinator
Not always needed
Aids in consensus building and organizational learning. Typically the last hour of the day.
First Step Task on first process block
Briefing Dates &
Times
Meals Provided
Briefing Attendees
** required *optional
List the the people that are required to attend the briefings (**) and those whose attendance is optional (*).
Demand Rate
Trigger
How many times is this done per wk, qtr, mo, or yr?
What initiates the process?
Value Stream Mapping CharterScope Accountable Parties Logistics
Required: typically VP or C-level
If needed—often director or manager level
Specific Conditions
What circumstances are included and excluded? (e.g., type of customer, geographic location, etc.)
Value Stream Champion
Value stream being improvedExecutive
SponsorValue Stream
Event Dates & Times
3 days typically; consecutive is best; 6 hrs per day minimum; 7 or 8 hrs is best
Required: skilled, objective person leading the activity
Base-camp Location
Facilitator
Name
Name
FacilitatorValue Stream Champion
Contact Information
Contact Information
© 2014 The Karen Martin Group, Inc. 42
Who should be on the team, be on call, and attend briefings?
22
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc.
VSM Preparation Phase Activities
• Hold initial conversation with executive sponsor, value stream champion & facilitator.
• Draft charter– Purpose
– Goals
– Scope
– Team
– Logistics (start/end times, location, briefings)
• Socialize charter
• Plan logistics– Send meeting invitations (to
briefing attendees as well)
– Talk with prospective gemba interviewees
– Gather relevant data
– Book “base camp” room
– Gather supplies
– Order food
• Gather relevant data
• Hold value stream mapping overview session
43
© 2014 The Karen Martin Group, Inc. 44
Socializing the Charter
• Conversation, not merely an email attachment.
• To the entire workforce who will be affected by change.
• Adjust the charter if new discoveries/concerns surface.
23
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc.
VSM Preparation Phase Activities
• Hold initial conversation with executive sponsor, value stream champion & facilitator.
• Draft charter– Purpose
– Goals
– Scope
– Team
– Logistics (start/end times, location, briefings)
• Socialize charter
• Plan logistics– Send meeting invitations (to
briefing attendees as well)
– Talk with prospective gemba interviewees
– Gather relevant data
– Book “base camp” room
– Gather supplies
– Order food
• Gather relevant data
• Hold value stream mapping overview session
45
© 2014 The Karen Martin Group, Inc.
VSM Preparation Phase Activities
• Hold initial conversation with executive sponsor, value stream champion & facilitator.
• Draft charter– Purpose
– Goals
– Scope
– Team
– Logistics (start/end times, location, briefings)
• Socialize charter
• Plan logistics– Send meeting invitations (to
briefing attendees as well)
– Talk with prospective gemba interviewees
– Gather relevant data
– Book “base camp” room
– Gather supplies
– Order food
• Gather relevant data
• Hold value stream mapping overview session
46
24
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc. 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 Date: Date:
Name
Name
Lourdes Dwyer
Diana Marie
Dave Gerald
Ryan Austin
FacilitatorValue Stream Champion
Sean Michaels
Contact Information
Contact Information
Demand Rate
Trigger
1,000 per year
Customer submits RFQ
Value Stream Mapping CharterScope Accountable Parties Logistics
Allen Ward
Nancy LittleSpecific
Conditions Engineer to order, requires both hardware & software customization
Value Stream Champion
Capital equipmentExecutive
SponsorValue Stream
Event Dates & Times
July 24-26, 20138:00 am - 5:00 pm
Dave ParksBase-camp
LocationFacilitator
Current State Problems & Business Needs Mapping Team
Boundaries & Limitations
Improvement Time Frame
No new software; only minor changes to existing IT systems; no additional staff; no budget changes
Future state design is fully realized by December 31, 2013.
Last Step Production ships product
Logistics Coordinator
Dave Parks
July 24, 25, & 264:00-5:00 pm
First Step Sales reviews the RFQ
Briefing Dates &
Times
Meals Provided
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)
(Competition's RFQ LT is 1 wk and PO to delivery is 4 wks) Scrum Master
Goals & Measurable Target Conditions Engineering, Vice President
Unclear & incorrect information flowing through value stream. IT, Director
Lead time for RFQ turnaround = 2 weeks; PO to software dev = 5 weeks Finance, Controller
Desire to stay ahead of the competition & deepen customer loyalty. Function / Title
Forecasted growth of 15% for next fiscal year. Sales, Director
Reduce PO to software development lead time by a minimum of 50%. Customer Service, Manager
Ambreen Motiwala
Danny Tran
Nancy Little
Reduce RFQ lead time by a minimum of 50%. Manufacturing, Director
Freed capacity to absorb additional business w/o increasing staff. Production Supervisor
Faster delivery; less hassle; less cost. Function
Better working relationships between sales, estimating & engineering. Planning / Purchasing, Planner
Continential breakfast & lunch
Surf's Up - Room A
Tom St. James
Benefits to Customers & Business On-Call Support
JR HuntImprove quality of information flowing throughout value stream. Customer (contract manufacturer)
Operational: LT in segments (RFQ to quote; PO to development). Signature:
Date:
Relevant Data Agreement
Financial: Estimate-to-actual cost comparison.
Executive SponsorSales effectiveness: RFQ conversion rate.
Signature: Signature:
© 2014 The Karen Martin Group, Inc.
VSM Preparation Phase Activities
• Hold initial conversation with executive sponsor, value stream champion & facilitator.
• Draft charter– Purpose
– Goals
– Scope
– Team
– Logistics (start/end times, location, briefings)
• Socialize charter
• Plan logistics– Send meeting invitations (to
briefing attendees as well)
– Talk with prospective gemba interviewees
– Gather relevant data
– Book “base camp” room
– Gather supplies
– Order food
• Gather relevant data
• Hold value stream mapping overview session
48
25
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc. 49
Value Stream Mapping OverviewRecommended Content
• Define value stream• Explain VSM benefits• Difference between value stream and process mapping – Show sample maps
• How the mapping activity will be structured– What they can expect– Roles & responsibilities– Approximate agenda– Deliverables– “Rules of engagement”
• Review the charter in detail• Assign homework, if needed.
© 2014 The Karen Martin Group, Inc. 50
Your Questions
• How to deal with information flow problems between sales, management, and engineering before and during production.
• For an organization just beginning their Lean transformation, how do you encourage effective use of VSM? Data that exists is often questionable. It's difficult to get leaders to commit the time to do it right.
• I’m looking to implement a continuous improvement culture in an office environment. Where should I start?
26
Value Stream Mapping: Beyond the Mechanics (Part 1)Webinar – 1/7/2014
© 2014 The Karen Martin Group, Inc. www.ksmartin.com
© 2014 The Karen Martin Group, Inc. 51
Karen Martin, President7770 Regents Road #635San Diego, CA 92122
858.677.6799
51
For Further Questions
Blog & newsletter: www.ksmartin.com/subscribe