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Value Stream Mapping 
Webinar with APICS Heartland 
September 18, 2014
You will learn… 
•How to use value stream mapping as an organizational transformation & leadership alignment tool 
•How to...
Not One. 
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© 2014 The Karen Martin Group, Inc. 
Wherever there is a request and a deliverable, there is a value stream. 
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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 
Process 
Process 
Process 
Step 
Step 
Step 
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Macro Perspective 
•Define str...
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Basic Current State Value Stream Map
Value Stream Mapping’s Roots 
•Value 
•Value Stream 
•Flow 
•Pull 
•Perfection 
1996
Value Stream Mapping Progression 
Mike Rother & John Shook, 1999 
Beau Keyte & Drew Locher, 2004 
Karen Martin & 
Mike Ost...
Your Goal? Get the Most from Value Stream Mapping
Common Failings 
•VSM used solely as a work design exercise 
•VSM used to make tactical vs. strategic decisions 
•Inapprop...
VSM Aids in Developing Systems Thinking 
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System Efficiency = Optimal Value Stream Performance 
Individual Efficiency =...
Value Stream Mapping is a Strategic, Leadership-Heavy Activity
© 2014 The Karen Martin Group, Inc. 
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Who? Accountability Practice / Tool 
Sr. Leaders “What has to happen” Hoshin Plan...
Value Stream Maps: Strategy Before Tactics 
Where am I? Where do I want to go? 
I-80 option 
I-40 option 
I-70 option 
Whi...
© 2014 The Karen Martin Group, Inc. 
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VSM Enables an Org to Get Above the Work
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1 
Information Flow 
2 
Work Flow 
3 Timeline 
Basic Current State Value Stream Map
© 2014 The Karen Martin Group, Inc. 
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Lead Time vs. Process Time 
Lead Time (LT) 
Work Received 
Work passed to next pr...
© 2014 The Karen Martin Group, Inc. 
Measuring Quality: Percent Complete & Accurate (%C&A) 
Customer 
Process 1 
Process 2...
© 2014 The Karen Martin Group, Inc. 
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Multiple downstream customers reporting different %C&As from the same supplier 
B...
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Value Stream Maps Help Visualize Problems
© 2014 The Karen Martin Group, Inc. 
VSM Helps Break Down Functional Silos 
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Function 
Function 
Function 
Function 
Co...
© 2014 The Karen Martin Group, Inc. 24 
Customer 
1 
Process 3 
Function E 
LT = 0.5 days 
PT = 30 mins. 
%C&A = 95% 
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4...
J F M A M J J A S O N D 
1 PROJ Steve 0% 
2 PROJ Steve 100% 
3 KE Bruce 50% 
4 KE Bruce 50% 
5 PROJ Jessie 100% 
6 PROJ Sa...
Value Stream Performance Sample Results 
Metric 
Current State 
Projected Future State 
Projected 
% Improvement 
Lead Tim...
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Visualize the entire cycle of value delivery on a single sheet of paper
© 2014 The Karen Martin Group, Inc. 
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Executing Transformation Plan 
Value Stream Mapping 
Making Specific Improvements
Prepare 
Understand 
Current State 
Design 
Future State 
Develop Transformation Plan 
Execute Transformation Plan 
Three ...
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4 engagement, financials, lead time, s...
Daily Briefings 
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#1 – Reduce resistance 
#2 – Build consensus 
#3 – Gain commitment
Socializing the Charter 
•Conversation, not merely an email attachment. 
•To the entire workforce who will be affected by ...
Prepare 
Understand 
Current State 
Design 
Future State 
Develop Transformation Plan 
Execute Transformation Plan 
Three ...
Current & Future State Notes 
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•Current State 
–Walk the value stream 
–Surface all problems: WIP, delays, errors/defec...
Current State Value Stream Map 
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Future State Value Stream Map 
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Prepare 
Understand 
Current State 
Design 
Future State 
Develop Transformation Plan 
Execute Transformation Plan 
Three ...
© 2014 The Karen Martin Group, Inc. 38 
J F M A M J J A S O N D 
1 PROJ Steve 0% 
2 PROJ Steve 100% 
3 KE Bruce 50% 
4 KE ...
Physically Post the Future State Map Physically Post the Transformation Plan
And Repeat…
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Who Owns the Value Stream?
 Coach / Facilitator / Consultant / Trainer: Lean transformation & business performance improvement in all industries. 
...
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4 engagement, financials, lead time, safety records, etc. Date: Date:
effectiveness, market trends, customer satisfaction, employee Signature:
Date:
Relevant Data Agreement
Examples: work volume & volume variation, process quality &
What data is required to understand relevant current state isues. Executive Sponsor
Signature: Signature:
How will the business, internal and external customers, and Function
internal and external suppliers benefit from value stream improvement? SMEs that may not be needed full time
Always a nice touch; keeps
the team from wandering
On-site, ample wall space,
quiet/private location
Benefits to Customers & Business On-Call Support
Increase <defined metric> from X to Y (Z% improvement).
Reduce <defined metric> from X to Y (Z% improvement).
Measurable Target Condition
What's driving the need for improvement? Function
Leadership-heavy
Current State Problems & Business Needs Mapping Team
Boundaries &
Limitations
Improvement Time
Frame
What is the team NOT authorized to change?
Typically 3-6 months
Last Step Task on last process block
Logistics
Coordinator
Not always needed
Aids in consensus building
and organizational learning.
Typically the last hour of the
day.
First Step Task on first process block
Briefing
Dates &
Times
Meals
Provided
Briefing
Attendees
** required
*optional
List the the people that are
required to attend the briefings (**)
and those whose attendance is
optional (*).
Demand Rate
Trigger
How many times is this done per wk, qtr, mo, or yr?
What initiates the process?
Value Stream Mapping Charter
Scope Accountable Parties Logistics
Required: typically VP or C-level
If needed—often director or
manager level
Specific
Conditions
What circumstances are included and excluded?
(e.g., type of customer, geographic location, etc.)
Value Stream
Champion
Value stream being improved
Executive
Sponsor
Value Stream
Event Dates
& Times
3 days typically; consecutive
is best; 6 hrs per day
minimum; 7 or 8 hrs is best
Required: skilled, objective person
leading the activity
Base-camp
Location
Facilitator
Name
Name
Value Stream Champion Facilitator
Contact Information
Contact Information
Charter: Critical planning, communication, and consensus-building tool
Available at www.ksmartin.com/vsm-charter

Published in: Business

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