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Identifying Data Points and Performance Metrics using the Value Stream Mapping process Presented by: Jim Soltis

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 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. At Toyota, where the technique originated, it is known as "material and information flow mapping".[1] It can be applied to nearly any value chain 2

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 Any customer focused process that has a clear beginning and desired end state can be characterized and quantified. Whether tangible or perceived, any action, event or activity that positively changes a state along a value stream is adding value. We can use a service industry variation (services as the product) called “Process Stream Mapping”. 3

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 When it is unclear whether an event adds value, these questions can help find the answer:1. Does the event transform the product (service) in some way? If so, it probably adds value.2. If the customer observed the event, would he see an action that he could have performed faster himself? If so, the event probably does not add value.3. If the event were eliminated, would the customer know the difference? If not, the event is probably non value added. 4

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 Inspection/Testing ◦ Inspection refers to an examination of the service to determine if work has been done correctly. ◦ Inspection/Testing rarely adds value because it does not change the service (i.e. - post repair testing). Transport ◦ Transport and Handling rarely add value (order lead time, equipment pickup & delivery). The customer may perceive the level or ease of access as a value they are willing to utilize. ◦ For example, quick fixes and common shortcuts hold little value if they are only available by request (current Customer Support model). Self Service (KML) access is an important part of the customers value perception. 5

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Accept the call (service request) Collect customer information Collect technical informationInformation detail, clarity,subject matter expertiseand technical ability are a Assess the problemfew factors that can affectthe delay and accuracy ofcompleting the process. Select the issue category 7

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•Does the activity add value?•Is the activity optimized?•Is the activity a bottleneck?•Is the activity necessary?•Is the activity being quantified and measured?•Should the activity be quantified and measured? 8

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 Now that we’ve drilled into each branch and identified the activity details, we can decide which data point(s) to track in order to baseline the current level of efficiency. ◦ Do we already collect data for the activity? ◦ If so, is that data valuable? ◦ What does that data tell us? ◦ Is there a performance standard for that measure? ◦ Can/should the activity be improved? ◦ Is there a cost for improvement? ◦ Will the customer benefit from the improvement? 9

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 Six Sigma ◦ Six Sigma is a high-performance, data-driven approach to analyzing the root causes of business problems and solving them. It ties the product of a business directly to the needs of the customer. Six Sigma goals (at the operational level) ◦ Move business service attributes closer to meeting the customer’s needs and reduce process variation, which is the cause of errors and inefficiency that affect the customer. 10

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 It is a data drive approach to analyzing root causes. To deliver real improvements to the bottom line. It identifies service attributes and customer specifications. To reduce process variation, which is a primary cause of defects and inefficiency. 11

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 Let’s go fishing! ◦ Build the fishbone diagrams. ◦ Chart the “As-Is” state. ◦ Utilize Six Sigma to:  Define the steps/activities and process dependencies.  Measure (capture) the data/metrics to be assessed.  Analyze the data/metrics against a baseline standard.  Improve the process to meet or exceed the standard.  Control the process to ensure that it does not become corrupted, or to identify necessary process updates. ◦ Get better at everything we do! 12

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 [1] Learning to See: value-stream mapping to create value and eliminate muda (waste) by Mike Rother and John Shook ISBN 0966784308 13