Value Stream Mapping: What to Do Before You Dive In
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Recorded webinar: http://slidesha.re/1juuPs4 To subscribe: http://ksmartin.com/subscribe To purchase the book: http://bit.ly/VSMbk Value Stream Mapping is a powerful way to improve performance across a large portion of an enterprise. But, before you dive into mapping, there are significant steps you must take to assure a successful outcome. In this webinar, award-winning author, Karen Martin shares the proper preparation an organization must take to reap the full set of benefits Value Stream Mapping offers. Topics include: Leadership – what is their role? Scoping – how "big” should you go? Team formation – who are the right people to include? Facilitator selection – what traits and skills are needed? Charter development and socialization – it’s far more than a planning tool! Logistics & communication – how do you make sure everyone is engaged and prepared? Watch this webinar for a no-nonsense discussion about the key success factors and common failings in preparing to value stream map.
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Value Stream Mapping: What to Do Before You Dive In
- 1. Lean simplified. Everything you need… all in one place. Value Stream Mapping: What to do before you dive in © 5S Supply 2014
- 2. Welcome to Value Stream Mapping: What to do before you dive in The webinar will be starting shortly Please read Our formal presentation will run from 12:00 pm - 12:45 pm CDT. The final 15 minutes will be dedicated to your Questions & Answers. Please feel free to submit your questions at any time during our session. Submit them in writing (as the phone lines and microphones are muted) in the Questions section of your webinar control panel. If you have any technical issues during our event please call GoToWebinar at 800-263-6317 and be sure to give our Webinar ID 259-740-031 This webinar audio portion is offered in VOIP (through your computer’s speakers) or by dial-in. For dial-in call 877-309-2074 and enter Access Code 508-806-781. Your telephone line will be muted to diminish any background noise. © 5S Supply 2014
- 3. Questions © 5S Supply 2014
- 4. Questions © 5S Supply 2014
- 5. Activate • Let’s get started! • There will be a slight delay while we start the recording © 5S Supply 2014
- 6. Value Stream Mapping: What to Do Before you Dive in Webinar hosted by 5S Supply January 28, 2014
- 7. Coach / Facilitator / Consultant / Trainer: Lean transformation & business performance improvement in all industries. Teacher: University of California, San Diego Author & Speaker: Karen Martin, President The Karen Martin Group, Inc. www.ksmartin.com Just released! 2013 Shingo Prize winner! www.ksmartin.com/subscribe 7
- 8. Topics will include: • Leadership – what is their role? • Scoping – how “big” should you go? • Team formation – who are the right people to include • Facilitator selection – what traits and skills are needed • Charter development and socialization – it’s far more than a planning tool! • Logistics and communication – how do you make sure everyone is prepared? © 2014 The Karen Martin Group, Inc. 8
- 14. Value Stream Mapping Benefit: Reaching Leadership Consensus © 2014 The Karen Martin Group, Inc. 14
- 16. Basic Value Stream Map: Future State 1 Customer IT interface Standard work Error proof IT-1 Crosstrain Modified approvals 2 Process 1 3 Crosstrain Process 2 Function A 1 items IT-2 LT = 1 days PT = 10 mins. %C&A = 99% Process 3 Function C 5 items 5 4 Standard work Function E 10 items 3 LT = 2 days PT = 120 mins. %C&A = 95% 4 LT = 0.5 days PT = 30 mins. %C&A = 95% 1 days 2 days 0.5 days Total LT = 3.5 days 10 mins. 120 mins. 30 mins. Total PT = 160 mins. Activity Ratio = 9.5% Rolled %C&A = 89.3% © 2014 The Karen Martin Group, Inc. 16
- 20. Value Stream Maps ≠ Swim Lane Process Maps Current State Metrics-Based Process Map 0 PT Units 1 0 Seconds Hours Minutes Days LT Units 15 6 -1 0 Seconds Hours Minutes Days 1 Customer Diane O'Shea Sean Michaels Sam Parks Sally Dampier Michael Prichard Specific Conditions Domestic orders through sales force Occurrences per Year 37,500 Hours Worked per Day 8 Date Mapped 25-Jun-08 Step # ► Function / Department Mapping Team Process Details Process Name Order Fulfillment 1 2 Activity PT LT %C&A Fax PO to Sales Rep 0 0 Ryan Austin Mary Townsend Facilitator Dave Morgan 3 4 45% PT LT %C&A Activity PT LT %C&A Review PO; clarify with customer as needed 20 2 90% Fax PO to warehouse 10 4 Activity PT LT %C&A Activity PT LT %C&A Check inventory levels; notify Sales Rep re: status 2 Sales Rep Activity 5 90% 5 4 95% Fax PO to Sales Rep 5 0.33 90% 5 Finance 6 Warehouse / Shipping Critical Path PT Critical Path LT Rolled %C&A Total PT 0 20 0 45% 0 10 2 90% 20 5 4 90% 10 5 4 0.33 95% 5 90% 5 Metrics‐Based Process Mapping is used to improve tactically & define standard work © 2014 The Karen Martin Group, Inc. 20
- 23. Activity Preparation Prepare Understand Current State Design Future State Develop Transformation Plan Execute Transformation Plan 1. Engage executive sponsor 2. Draft charter 3. Socialize charter 4. Plan logistics (including Gemba walk) 5. Gather data 6. Deliver VSM overview © 2014 The Karen Martin Group, Inc. 23
- 24. Accountable Parties • Executive Sponsor – Typically VP or higher – Authority over significant portion of value stream (or strong relationship w/ peer group) – Ultimately accountable for results – Must attend briefings • Value Stream Champion – Oversee significant portion of the value stream – Heavily engaged in entire value stream transformation (own the transformation plan) – Member of mapping team – In small companies or those just starting out, the VS Champion and Exec Sponsor could be the same person. • Facilitator – Objective; no “skin in the game” – Skilled in both mapping/improvement mechanics, and high‐level team dynamics. © 2014 The Karen Martin Group, Inc. 24
- 25. Facilitator Skills & Traits • Technical knowledge & skills – Value stream mapping mechanics – Key metrics – Countermeasures • Psychology – Team dynamics (especially leadership level) – Countering resistance to change • Other – Time management – Action Plan development © 2014 The Karen Martin Group, Inc. 25
- 26. Charter: Critical planning, communication, and consensus‐building tool Value Stream Mapping Charter Scope Accountable Parties Logistics Executive Required: typically VP or C-level Sponsor Value Stream Value stream being improved Value Stream If needed—often director or Champion manager level Specific What circumstances are included and excluded? Conditions (e.g., type of customer, geographic location, etc.) Demand Rate How many times is this done per wk, qtr, mo, or yr? Facilitator Trigger What initiates the process? First Step Task on first process block Required: skilled, objective person leading the activity 3 days typically; consecutive Event Dates is best; 6 hrs per day & Times minimum; 7 or 8 hrs is best Base-camp On-site, ample wall space, Location quiet/private location Logistics Not always needed Coordinator Last Step Task on last process block Boundaries & What is the team NOT authorized to change? Limitations Meals Always a nice touch; keeps Provided the team from wandering Briefing List the the people that are Attendees required to attend the briefings (**) ** required and those whose attendance is *optional optional (*). Improvement Time Typically 3-6 months Frame Current State Problems & Business Needs Aids in consensus building Briefing and organizational learning. Dates & Typically the last hour of the Times day. Mapping Team Function 1 What's driving the need for improvement? 2 3 Contact Information 2 4 Name 1 Leadership-heavy 3 5 4 Measurable Target Condition 5 1 Reduce <defined metric> from X to Y (Z% improvement). 6 2 Increase <defined metric> from X to Y (Z% improvement). 7 3 8 4 9 5 10 Benefits to Customers & Business On-Call Support Function 1 How will the business, internal and external customers, and 2 internal and external suppliers benefit from value stream improvement? 3 Contact Information 2 4 Name 1 SMEs that may not be needed full time 3 5 4 Relevant Data Agreement Executive Sponsor 1 What data is required to understand relevant current state isues. Value Stream Champion Facilitator 2 Examples: work volume & volume variation, process quality & 3 effectiveness, market trends, customer satisfaction, employee Signature: Signature: Signature: 4 engagement, financials, lead time, safety records, etc. Date: Date: Date: © 2014 The Karen Martin Group, Inc. 26
- 27. Value Stream Mapping Charter Scope Accountable Parties Logistics Executive Required: typically VP or C-level Sponsor Value Stream Value stream being improved Value Stream If needed—often director or Champion manager level Specific What circumstances are included and excluded? Conditions (e.g., type of customer, geographic location, etc.) Demand Rate How many times is this done per wk, qtr, mo, or yr? Facilitator Trigger What initiates the process? First Step Task on first process block Required: skilled, objective person leading the activity 3 days typically; consecutive Event Dates is best; 6 hrs per day & Times minimum; 7 or 8 hrs is best Base-camp On-site, ample wall space, Location quiet/private location Logistics Not always needed Coordinator Last Step Task on last process block Boundaries & What is the team NOT authorized to change? Limitations Meals Always a nice touch; keeps Provided the team from wandering Briefing List the the people that are Attendees required to attend the briefings (**) ** required and those whose attendance is *optional optional (*). Improvement Time Typically 3-6 months Frame Current State Problems & Business Needs Aids in consensus building Briefing and organizational learning. Dates & Typically the last hour of the Times day. Mapping Team Function 1 What's driving the need for improvement? 2 3 Contact Information 2 4 Name 1 Leadership-heavy 3 5 4 Measurable Target Condition 5 1 Reduce <defined metric> from X to Y (Z% improvement). 6 2 Increase <defined metric> from X to Y (Z% improvement). 7 3 8 4 9 5 10 Benefits to Customers & Business On-Call Support Function 1 How will the business, internal and external customers, and 2 internal and external suppliers benefit from value stream improvement? 3 Contact Information 2 4 Name 1 SMEs that may not be needed full time 3 5 4 Relevant Data Agreement Executive Sponsor 1 What data is required to understand relevant current state isues. Value Stream Champion Facilitator 2 Examples: work volume & volume variation, process quality & 3 effectiveness, market trends, customer satisfaction, employee Signature: Signature: Signature: 4 engagement, financials, lead time, safety records, etc. Date: Date: Date: © 2014 The Karen Martin Group, Inc. 27
- 28. Value Stream Scoping Diagram Defining Specific Conditions Medical/Surgical Inpatient Intensive Care Pediatric Patient care X‐Rays Vaccine Clinic CT Scans Potential selection criteria: • Highest volume? • Highest margin? • Most painful? • Most supportive leadership? © 2013 The Karen Martin Group, Inc. Outpatient Imaging MRI OB/GYN Services Mammography 28
- 30. Where should the “fenceposts” be? Function Activity Marketing Generates sales leads Sales Calls on and qualifies customers Customer Submits RFQ to sales Sales Reviews RFQ Estimating Generates quote Sales Approve quote Customer Accepts quote; submits a PO Sales Approves PO Customer service Creates SO; compiles spec package EE/ME design Designs product; generates BOM Customer Approves design EE/ME design Forwards design to SW dev Software Dev Writes code Purchasing/Planning Releases WO; schedules production Supplier (external) Delivers materials Production Manufactures & ships product Customer Installs equipment Field service Conducts 90‐day follow‐up © 2014 The Karen Martin Group, Inc. 30
- 31. Value Stream Mapping Charter Scope Accountable Parties Logistics Executive Required: typically VP or C-level Sponsor Value Stream Value stream being improved Value Stream If needed—often director or Champion manager level Specific What circumstances are included and excluded? Conditions (e.g., type of customer, geographic location, etc.) Demand Rate How many times is this done per wk, qtr, mo, or yr? Facilitator Trigger What initiates the process? First Step Task on first process block Required: skilled, objective person leading the activity 3 days typically; consecutive Event Dates is best; 6 hrs per day & Times minimum; 7 or 8 hrs is best Base-camp On-site, ample wall space, Location quiet/private location Logistics Not always needed Coordinator Last Step Task on last process block Boundaries & What is the team NOT authorized to change? Limitations Meals Always a nice touch; keeps Provided the team from wandering Briefing List the the people that are Attendees required to attend the briefings (**) ** required and those whose attendance is *optional optional (*). Improvement Time Typically 3-6 months Frame Current State Problems & Business Needs Aids in consensus building Briefing and organizational learning. Dates & Typically the last hour of the Times day. Mapping Team Function 1 What's driving the need for improvement? 2 3 Contact Information 2 4 Name 1 Leadership-heavy 3 5 4 Measurable Target Condition 5 1 Reduce <defined metric> from X to Y (Z% improvement). 6 2 Increase <defined metric> from X to Y (Z% improvement). 7 3 8 4 9 5 10 Benefits to Customers & Business On-Call Support Function 1 How will the business, internal and external customers, and 2 internal and external suppliers benefit from value stream improvement? 3 Contact Information 2 4 Name 1 SMEs that may not be needed full time 3 5 4 Relevant Data Agreement Executive Sponsor 1 What data is required to understand relevant current state isues. Value Stream Champion Facilitator 2 Examples: work volume & volume variation, process quality & 3 effectiveness, market trends, customer satisfaction, employee Signature: Signature: Signature: 4 engagement, financials, lead time, safety records, etc. Date: Date: Date: © 2014 The Karen Martin Group, Inc. 31
- 32. Who should represent the processes in the value stream? Function Activity Marketing Generates sales leads Sales Calls on and qualifies customers Customer Submits RFQ to sales Sales Reviews RFQ Estimating Generates quote Sales Approve quote Customer Accepts quote; submits a PO Sales Approves PO Customer service Creates SO; compiles spec package EE/ME design Designs product; generates BOM Customer Approves design EE/ME design Forwards design to SW dev Software Dev Writes code Purchasing/Planning Releases WO; schedules production Supplier (external) Delivers materials Production Manufactures & ships product Customer Installs equipment Field service Conducts 90‐day follow‐up © 2014 The Karen Martin Group, Inc. 32
- 37. Socializing the Charter • Conversation, not merely an email attachment. • To the entire workforce who will be affected by change. • Adjust the charter if new discoveries or concerns surface. © 2014 The Karen Martin Group, Inc. 37
- 38. Suggested VSM Overview Content • What value streams and value stream maps are. • Benefits of VSM and expected outcomes. • What to expect from the activity – Projected schedule – “Rules of engagement.” • Charter review. © 2014 The Karen Martin Group, Inc. 38
- 41. Lean simplified. Everything you need… all in one place. © 5S Supply 2014
- 42. Lean simplified. Everything you need… all in one place. Please join us for Value Stream Mapping: Understanding the Current State Thursday, March 13, 2014 © 5S Supply 2014
- 44. Additional Resources 5S Supply on Social Media 5S Supply Group 5S Supply 5S Supply's photostream © 5S Supply 2014
- 45. Lean simplified. Everything you need… all in one place. Don’t forget to visit us at 5S Supply! www.5Ssupply.com © 5S Supply 2014