1. Management is Essential
Value Stream Mapping
Management is Essential

2. The lean transformation should provide:
Growth with improved margins
Growth with minimal capital
Growth without more employees

3. 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

4. How have these stumbling blocks been addressed?
Programs of the month (band aids)
Meetings, meetings, meetings, meetings

5. 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

6. 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

7. 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.

8. Value Stream Improvement vs. Process Improvement
Customer
Assembly
Cell
Stamping
Welding
Raw Material
Finished Product

9. 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

11. Levels of a Value Stream
process level
single plant
(door to door)
Start Here
multiple plants
across companies

12. Value Stream Managers Kaizen Process 1 Process 2 Process 3 “Customer”
The Value
Stream Manager

13. 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

14. 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

15. 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

16. Current State Value Stream Map

17. Future State Value Stream Map

18. Planning 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 flow

19. 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

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

21. We might begin in… Processes directly impacting the part production
Engineering
Quoting
Or, in value streams with direct customer contact
Order entry
Invoicing

22. 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

23. 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

24. 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

25. 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

26. 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.