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Value Stream Analysis:
Beyond the Mechanics (Part 2 of 3)

Webinar
January 21, 2014
Welcome!
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 Coach / Facilitator / Consultant / Trainer: 
Lean transformation & business performance 
improvement in all industries.
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Before the webinar…
• The materials are available on:
– www.ksmartin.com/files/webinarmaterials/01‐21‐
2014_slides.pdf (or...
More VSM Webinars!
11:00 am‐12:15 pm PT
• Tuesday, February 18, 2014
– Value Stream Analysis: Beyond the Mechanics – Part ...
www.ksmartin.com/VSM

© 2014 The Karen Martin Group, Inc.

6
You will learn…
• How to facilitate a two‐stage mapping process. 
• The importance of walking the value stream—
even if yo...
Value Stream Defined
Value Stream: All of the activities required to
transform a customer request into a good or service.
...
Work: Degrees of Granularity
Value 
Stream

Macro       
Perspective
•
•
•

Define strategic 
direction (“what”) 
Heavy le...
Value Stream Mapping Benefit:
Seeing the Whole

Value Stream Mapping enables a           
mapping team to get ABOVE the wo...
Basic Current State Value Stream Map: 
3 Sections
1

2

3

© 2014 The Karen Martin Group, Inc.

11
Basic Value Stream Map: Future State
1

Customer

IT interface
Standard
work

Error
proof

IT-1

Crosstrain

Modified
appr...
Basic Value Stream
Future State Performance Metrics
Current State 

Projected
Future State 

Projected
% Improvement

9.5 ...
Value Stream Mapping: 
Visualize the delivery of customer value on a single sheet of paper

© 2014 The Karen Martin Group,...
Value Stream Mapping Activity
Phases and Timing
Repeat

Prepare

Understand 
Current State

Design
Future State

Develop 
...
Create the Current State Map: 5 Steps
Prepare

Understand 
Current State

Design
Future State

Develop 
Transformation 
Pl...
Value Stream Walk #1
• Purpose – To identify:
– What? (Processes)
• High level description of the work accomplished
• Work...
Post‐it Note Convention
after Value Stream Walk #1
Process 
(verb/noun)
Function(s)

© 2014 The Karen Martin Group, Inc.

...
Create the Current State Map: 5 Steps
Prepare

Understand 
Current State

Design
Future State

Develop 
Transformation 
Pl...
Value Stream Map 
Process Block Placement
Map what 
happens 80% of 
the time
Narrow the 
scope if needed
Place Post‐its serially or in parallel             
as appropriate

100%

100%

Serial   
processes

Parallel 
processes
Minimal branching is acceptable on a 
Value Stream Map
Create the Current State Map: 5 Steps
Prepare

Understand 
Current State

Design
Future State

Develop 
Transformation 
Pl...
2nd Walk ‐ Gain a Deeper Understanding
• Work input & output; trigger; prioritization
• 3 key metrics for each process blo...
Lead Time vs. Process Time
Lead Time (LT) 

Work is Idle

Work 
Received

Process Time 
(PT)

Work is Idle

Work passed to...
Measuring Process Quality
Customer

Process 
1

© 2014 The Karen Martin Group, Inc.

Process 
2

Process 
3

Process 
4
Multiple downstream customers reporting 
different %C&As from the same supplier

Block 5 reported that they 
rework Block ...
Value Stream Walk #2:
Which systems/applications and other  means are            
used to convey information?

Emailing 
w...
Post‐it Note Convention 
after Value Stream Walk #2

Significant
barriers to 
flow
# People who 
typically do 
the work

%...
Quantifying WIP: 
3 Places Work Can Accumulate
Create the Current State Map: 5 Steps
Prepare

Understand 
Current State

Design
Future State

Develop 
Transformation 
Pl...
Value Stream Map: Map Details
Create the Current State Map: 5 Steps
Prepare

Understand 
Current State

Design
Future State

Develop 
Transformation 
Pl...
Value Stream Map 
Summary Timeline
Golden State Equipment, Inc.
Capital Equipment Value Stream
Metric

Current State

Timeline PT

Projected %
Improvement

4...
Briefing #1
Purpose: Reduce resistance to future state design

36
Briefing #2
Purpose: Build consensus around future state design

37
Briefing #3
Purpose: Gain commitment re: improvement priorities, 
ownership,  resources needed, and timeline.

38
Value Stream Mapping Charter
Scope

Accountable Parties

Logistics

Executive
Allen Ward
Sponsor

Value Stream Capital equ...
Create the Future State Map: 5 Steps
Prepare

Understand 
Current State

Design
Future State

Develop 
Transformation 
Pla...
Create the Future State Map: 5 Steps
Prepare

Understand 
Current State

Design
Future State

Develop 
Transformation 
Pla...
Golden State Equipment, Inc.
Capital Equipment Value Stream
Current State

Projected
Future State

Projected %
Improvement...
Create the Future State Map: 5 Steps
Prepare

Understand 
Current State

Design
Future State

Develop 
Transformation 
Pla...
Create the Future State Map: 5 Steps
Prepare

Understand 
Current State

Design
Future State

Develop 
Transformation 
Pla...
Prioritization Grid
Creating the Transformation Plan

45
Value Stream Transformation Plan
Value Stream Outpatient Imaging

Scheduled Review Dates

Executive Sponsor Allen Ward
Val...
Value Stream Mapping Execution: 
Key Success Factors
•
•
•
•

Whenever possible, walk the value stream.
Use “the big 3” ke...
“The new bible for value stream mapping.”
—Art Byrne, author, The Lean Turnaround

Amazon: www.bitly.com/VSMbk
More info: ...
For Further Questions

Karen Martin, President
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
Bl...
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Value Stream Mapping Charter
Scope

Accountable Parties

Logistics

Executive
Allen Ward
Sponsor

Value Stream Capital equipment
Specific Engineer to order, requires both hardware &
Conditions software customization

Event Dates July 24-26, 2013
& Times 8:00 am - 5:00 pm

Value Stream
Nancy Little
Champion

Demand Rate 1,000 per year

Base-camp
Surf's Up - Room A
Location

Facilitator Dave Parks

Trigger Customer submits RFQ
First Step Sales reviews the RFQ

Logistics
Dave Parks
Coordinator

Last Step Production ships product
Boundaries & No new software; only minor changes to existing IT
Limitations systems; no additional staff; no budget changes

Meals
Continential breakfast & lunch
Provided

Briefing ** Allen W (COO), Joe M (CIO),
Attendees Sal T (VP Sales)
** required * Bruce R (VP Ops), Carlos P
*optional (HR), Su T (CFO), Bill M (VP CS)

Improvement Time Future state design is fully realized by
Frame December 31, 2013.

Current State Problems & Business Needs

Briefing
July 24, 25, & 26
Dates &
4:00-5:00 pm
Times

Mapping Team

1 Desire to stay ahead of the competition & deepen customer loyalty.

Function / Title

Name

2 Forecasted growth of 15% for next fiscal year.

1 Sales, Director

Sean Michaels

3 Unclear & incorrect information flowing through value stream.

2 IT, Director

Diana Marie

4 Lead time for RFQ turnaround = 2 weeks; PO to software dev = 5 weeks

3 Finance, Controller

Dave Gerald

5 (Competition's RFQ LT is 1 wk and PO to delivery is 4 wks)

4 Scrum Master

Ryan Austin

5 Engineering, Vice President

Nancy Little

1 Reduce RFQ lead time by a minimum of 50%.

6 Manufacturing, Director

Ambreen Motiwala

2 Reduce PO to software development lead time by a minimum of 50%.

7 Customer Service, Manager

Danny Tran

3 Improve quality of information flowing throughout value stream.

8 Customer (contract manufacturer)

Contact Information

JR Hunt

Goals & Measurable Target Conditions

4

9

5

10

Benefits to Customers & Business

On-Call Support

1 Faster delivery; less hassle; less cost.

Function

Name

2 Better working relationships between sales, estimating & engineering.

1 Planning / Purchasing, Planner Lourdes Dwyer

3 Freed capacity to absorb additional business w/o increasing staff.

2 Production Supervisor

4

Contact Information

3

5

Tom St. James

4

Relevant Data

Agreement

1 Sales effectiveness: RFQ conversion rate.

Executive Sponsor

Value Stream Champion

Facilitator

2 Financial: Estimate-to-actual cost comparison.
3 Operational: LT in segments (RFQ to quote; PO to development).

Signature:

Signature:

Signature:

4

Date:

Date:

Date:

© 2014 The Karen Martin Group, Inc.

39

Veröffentlicht in: Business, Technologie
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