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    Value Stream Mapping: Management Is Essential

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    john2307
    This document discusses value stream mapping and management. It begins by outlining the goals of a lean transformation, including growth with improved margins and minimal capital or employees. It then identifies common stumbling blocks such as bad habits, a lack of system thinking and ineffective strategies. The document recommends taking a value stream perspective to address these issues. It provides an overview of how to conduct current and future state value stream mapping, and emphasizes the importance of planning and implementing improvements identified in the maps. Finally, it discusses value stream management and critical success factors.

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    Value Stream Mapping: Management Is Essential

    Uploaded by

    john2307
    56 views26 pages
    This document discusses value stream mapping and management. It begins by outlining the goals of a lean transformation, including growth with improved margins and minimal capital or employees. It then identifies common stumbling blocks such as bad habits, a lack of system thinking and ineffective strategies. The document recommends taking a value stream perspective to address these issues. It provides an overview of how to conduct current and future state value stream mapping, and emphasizes the importance of planning and implementing improvements identified in the maps. Finally, it discusses value stream management and critical success factors.

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    Value Stream Mapping-A

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    This document discusses value stream mapping and management. It begins by outlining the goals of a lean transformation, including growth with improved margins and minimal capital or employees. It then identifies common stumbling blocks such as bad habits, a lack of system thinking and ineffective strategies. The document recommends taking a value stream perspective to address these issues. It provides an overview of how to conduct current and future state value stream mapping, and emphasizes the importance of planning and implementing improvements identified in the maps. Finally, it discusses value stream management and critical success factors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    56 views26 pages

    Value Stream Mapping: Management Is Essential

    Uploaded by

    john2307
    This document discusses value stream mapping and management. It begins by outlining the goals of a lean transformation, including growth with improved margins and minimal capital or employees. It then identifies common stumbling blocks such as bad habits, a lack of system thinking and ineffective strategies. The document recommends taking a value stream perspective to address these issues. It provides an overview of how to conduct current and future state value stream mapping, and emphasizes the importance of planning and implementing improvements identified in the maps. Finally, it discusses value stream management and critical success factors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 26

    Value Stream Mapping

    Management is Essential

    The lean transformation should provide:

    Growth with improved margins Growth with minimal capital Growth without more employees

    What 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 strategies

    How have these stumbling blocks been addressed?

    Programs of the month (band aids) Meetings, meetings, meetings, meetings

    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?

    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 Engineerin 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
    Process Stamping Process Welding Process
    Customer

    Assembly Cell

    Raw Material

    Finished Product

    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)

    Start Here

    multiple plants across companies

    Value Stream Managers


    Process 1 Process 2 Process 3 Customer

    Kaizen

    The Value Stream Manager

    Using the Value Stream Mapping Tool


    Product/Service Family

    current state drawing

    Understanding how things currently operate. Our Baseline!

    future state drawing

    Designing a lean flow. Our vision!

    plan and implementation

    The Goal of 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

    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

    Current State Value Stream Map

    Future State Value Stream Map

    Planning and Implementing

    Dont 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?

    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

    Engineer to Order Configure to Order Capital equipment manufacturers Small companies (<500 employees) Service Firms

    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

    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 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

    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!

    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.

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