Value Stream Mapping The flow of your business from start to customer March 8, 2012

2 “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.

March 8, 2012 Value Stream Mapping The flow of your business from start to customer

4 Our webinar will begin in a few minutes. “Remember: The problem for most of us isn’t knowing what to do… it’s doing it.”

March 8, 2012 Value Stream Mapping The flow of your business from start to customer

6 Our webinar will begin in a few minutes. “The greatest attribute for any business leader is perseverance.”

March 8, 2012 Value Stream Maps The flow of your business from start to customer

8 Our webinar will begin in a few minutes. “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

March 8, 2012 Value Stream Mapping The flow of your business from start to customer

10 Our webinar will begin in a few minutes. “It’s useful to think of excellence in two broad categories: Customer excellence and business excellence.”

March 8, 2012 Value Stream Mapping The flow of your business from start to customer

12 Our webinar will begin in a few minutes. “Satisfied customers drive business success – and business success enables investment to satisfy customers.”

March 8, 2012 Value Stream Mapping The flow of your business from start to customer

14 Our webinar will begin in a few minutes. “ Excellence is not a destination; it is a continuous journey that never ends.” Brian Tracy

March 8, 2012 Value Stream Mapping The flow of your business from start to customer

16 Our webinar will begin in a few minutes. “ We are what we repeatedly do. Excellence, then, is not an act but a habit.” Aristotle

March 8, 2012 Value Stream Mapping The flow of your business from start to customer

18 Our webinar will begin in a few minutes. “People go in the direction leadership is walking, not pointing.”

March 8, 2012 Value Stream Mapping The flow of your business from start to customer

20 Our webinar will begin in a few minutes. “Every job is a self-portrait of the person who does it. Autograph your work with excellence. “ Unknown

March 8, 2012 Value Stream Mapping The flow of your business from start to customer

22 Our webinar will begin in a few minutes. “Excellence is doing ordinary things extraordinarily well." John W. Gardner

March 8, 2012 Value Stream Mapping The flow of your business from start to customer

24 Our webinar will begin in a few minutes. “Discipline is the bridge between goals and accomplishments.” Jim Rohn

March 8, 2012 Value Stream Mapping The flow of your business from start to customer

26 Our webinar will begin in a few minutes. "Measure is the ability to mesh strategy with reality, align people with goals, and achieve the promised results.“ Larry Bossidy

March 8, 2012 Value Stream Mapping The flow of your business from start to customer

28 Our webinar will begin in a few minutes. “The strategic agenda demands discipline and continuity; its enemies are distraction and compromise.” Michael E. Porter

March 8, 2012 Value Stream Mapping The flow of your business from start to customer

30 Our webinar will begin in a few minutes. “One of the major barriers to achieving lasting excellence is how little formal effort organizations put into learning how to execute strategy.”

March 8, 2012 Value Stream Mapping The flow of your business from start to customer

32 Your Presenter Matt Lauth Managing Partner Strategy Execution Advisors Certified Business Coach

Value Stream Mapping 33 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.

Principles of Lean 34 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

LEAN & SIX SIGMA 35 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.

36 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:

37 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)

38 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:

39 © Six Disciplines, LLC All Rights Reserved. Standard Symbols

40 VSM Tools Hines and Rich (1997) defined seven value stream mapping tools: 1. Process Activity Mapping 2. Supply chain responsiveness matrix 3. Product Variety Funnel 4. Quality filter mapping 5. Forrester effect mapping 6. Decision point analysis 7. Overall Structure Maps

41 © Six Disciplines, LLC All Rights Reserved. Value Stream Mapping Example

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43 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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47 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:

48 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

49 © Six Disciplines, LLC All Rights Reserved. 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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Upcoming Webinars

52 1.March 8 th : Value Stream Mapping 2.March 15 th : Succession Planning 3.March 22 nd : Benchmarking Performance 4.March 29 th : Quarterly Review Process For more information and to register, visit:

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Thank You ! Matt Lauth (419)