Value Stream MappingThe lean transformation should provide:What are our main stumbling blocks?How have these stumbling blocks been addressed?If we could just start over…..withWhy not take the value stream perspective?Value Stream DefinitionValue Stream Improvement vs. Process ImprovementSlide 9Slide 10Levels of a Value StreamValue Stream ManagersUsing the Value Stream Mapping ToolCurrent State MappingFuture State MappingCurrent State Value Stream MapFuture State Value Stream MapPlanning and ImplementingRemember the other two value streams?Enterprise PerspectiveWe might begin in…Slide 22Value Stream ManagementSlide 24Critical Success FactorsPutting it to Work!Value Stream MappingManagement is EssentialThe lean transformation should provide:Growth with improved marginsGrowth with minimal capitalGrowth without more employeesWhat 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 strategiesHow have these stumbling blocks been addressed?Programs of the month (band aids)Meetings, meetings, meetings, meetingsIf 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 enterpriseWhy 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 FunctionsValue 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 ImprovementRawMaterialFinished ProductStampingProcessWeldingProcessAssemblyCellProcessCustomerValue StreamValue 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 flowLevels of a Value Streamprocess levelsingle plant(door to door)multiple plantsacross companiesStart HereValue Stream ManagersProcess 1 Process 2 Process 3“Customer”The ValueStream ManagerKaizenUsing the Value Stream Mapping ToolUnderstanding how things currently operate. Our Baseline!Product/Service “Family”plan and implementationcurrent state drawingfuture state drawingDesigning a lean flow. Our vision!The Goal of MappingCurrent 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 productFuture 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 demandCurrent State Value Stream MapFuture State Value Stream MapPlanning 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 flowRemember 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 floorEnterprise PerspectiveEngineer to OrderConfigure to OrderCapital equipment manufacturersSmall companies (<500 employees)Service FirmsWe might begin in…Processes directly impacting the part productionEngineeringQuotingOr, in value streams with direct customer contactOrder entryInvoicingValue 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 techniquesValue 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 tasksValue 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 stateCritical 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 sharePutting 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