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How to Run a Value Stream Mapping (VSM) Workshop
The document outlines the importance and process of conducting a Value Stream Mapping (VSM) workshop to identify and eliminate waste in business processes. It details the preparation, execution, and expected outcomes of the workshop, emphasizing a customer-focused approach and strategic level analysis. Successful implementation can lead to reduced lead times, improved customer service, and enhanced employee engagement.
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How to Run a Value Stream Mapping (VSM) Workshop
- 1. VSM Workshop -‐Slideshare 1 Running a Value Stream Mapping Workshop
- 2. VSM Workshop -‐Slideshare 2 Sound Familiar? “Our IT organization develops requirements in silos without considering the end-‐to-‐end business processes”
- 3. VSM Workshop -‐Slideshare 3 Sound Familiar? “Our IT organization develops requirements in silos without considering the end-‐to-‐end business processes” “The business requirements for our new IT solutions are not based on current business practices”
- 4. VSM Workshop -‐Slideshare 4 Sound Familiar? “When we collect business requirements, we don’t really focus on the hard questions.”
- 5. VSM Workshop -‐Slideshare 5 Sound Familiar? “When we collect business requirements, we don’t really focus on the hard questions.” What problems are we trying solve?
- 6. VSM Workshop -‐Slideshare 6 Sound Familiar? “When we collect business requirements, we don’t really focus on the hard questions.” What problems are we trying solve? Will these requirements deliver our product faster, at a lower cost, at the quality level our customer expects?
- 7. VSM Workshop -‐Slideshare 7 Sound Familiar? “When we collect business requirements, we don’t really focus on the hard questions.” What problems are we trying solve? Will these requirements deliver our product faster, at a lower cost, at the quality level our customer expects? Are we improving our ability to deliver value and remove waste?
- 8. VSM Workshop -‐Slideshare 8 Sound Familiar? “When we collect business requirements, we don’t really focus on the hard questions.” What problems are we trying solve? Will these requirements deliver our product faster, at a lower cost, at the quality level our customer expects? Are we improving our ability to deliver value and remove waste?
- 9. VSM Workshop -‐Slideshare 9 The Solution If these symptoms sound familiar, you may want to consider asking your IT department to conduct a Value Stream Mapping (VSM) workshop. Here’s how…
- 10. VSM Workshop -‐Slideshare 10 Definitions
- 11. VSM Workshop -‐Slideshare 11 What Is a Value Stream? A Value Stream is a sequence of activities an organization performs to address a customer’s request.
- 12. VSM Workshop -‐Slideshare 12 Who Is Impacted by a Value Stream? A customer may be internal or external to the organization.
- 13. VSM Workshop -‐Slideshare 13 What Is a Value Stream Mapping Workshop? A VSM workshop maps the current flow of information and materials, generates an ideal future state and puts forth a high-‐ level plan to achieve the future state.
- 14. VSM Workshop -‐Slideshare 14 The Key Elements of Value Stream Mapping
- 15. VSM Workshop -‐Slideshare 15 Customer Focus The customer is the most important entity for each organization. Start with the customer and see what can and should be improved for their benefit. Customer Focus Strategic Level Holistic View Waste Detection Metrics
- 16. VSM Workshop -‐Slideshare 16 Strategic Level Approach A VSM workshop should focus on strategic direction and not get bogged down in the weeds. Customer Focus Strategic Level Holistic View Waste Detection Metrics
- 17. VSM Workshop -‐Slideshare 17 Holistic Organizational View Most organizations are a coalition of silos. VSM breaks down barriers between functional silos to uncover improvement opportunities across the entire value stream of the organization, not just within a discrete area. Customer Focus Strategic Level Holistic View Waste Detection Metrics
- 18. VSM Workshop -‐Slideshare 18 Waste Detection In almost all business processes there is waste. A VSM workshop exposes waste in a process, and provides the visibility and the opportunity to eliminate it. Customer Focus Strategic Level Holistic View Waste Detection Metrics
- 19. VSM Workshop -‐Slideshare 19 Metric Analysis Often there isn’t an awareness of the current performance of a process. The VSM workshop quantifies the current state and sets targets for improvements. Customer Focus Strategic Level Holistic View Waste Detection Metrics
- 20. VSM Workshop -‐Slideshare 20 Preparing for a Value Stream Mapping Workshop
- 21. VSM Workshop -‐Slideshare 21 Prerequisites for VSM Success Identify an experienced VSM workshop facilitator (internal or external).
- 22. VSM Workshop -‐Slideshare 22 Prerequisites for VSM Success Identify the organization’s Value Streams, also known as core business processes.
- 23. VSM Workshop -‐Slideshare 23 Prerequisites for VSM Success Prioritize your Value Streams based on customer impact and organizational strategy. Then pick the one that most meets the organization’s needs.
- 24. VSM Workshop -‐Slideshare 24 Prerequisites for VSM Success Establish an executive sponsor or champion who can commit to the VSM workshop and provide the leadership necessary to implement the future state.
- 25. VSM Workshop -‐Slideshare 25 Prerequisites for VSM Success Empower the team to make important changes that will transform the organization and meet strategic needs.
- 26. VSM Workshop -‐Slideshare 26 Executing a Value Stream Mapping Workshop
- 27. VSM Workshop -‐Slideshare 27 Step 1: Mandate Develop a workshop mandate, or charter, which includes: • Scope • Problem Statement • Objectives • Metrics
- 28. VSM Workshop -‐Slideshare 28 Step 2: Agenda Produce a detailed agenda (typically over 2 or 3 days, 8 hours per day) and a logistical plan.
- 29. VSM Workshop -‐Slideshare 29 Step 3: Kick-‐Off Meeting Hold a kick-‐off meeting with the executive sponsor to review the workshop mandate, logistics, recommended training (depending on organizational maturity), and pre-‐work assignments to get a head start on capturing current-‐state processes.
- 30. VSM Workshop -‐Slideshare 30 Step 4: Final Preparations Final preparations include holding a Q&A session (if required before the workshop) and setting up the space with post-‐it notes, flip chart paper, and whiteboards.
- 31. VSM Workshop -‐Slideshare 31 Step 5: Facilitation Day One: Map out the current state.
- 32. VSM Workshop -‐Slideshare 32 Step 5: Facilitation Day One: Map out the current state. Day Two: Brainstorm and map the future state.
- 33. VSM Workshop -‐Slideshare 33 Step 5: Facilitation Day One: Map out the current state. Day Two: Brainstorm and map the future state. Day Two & Three: Identify the improvement opportunities, assign owners, and estimate overall implementation time for each improvement.
- 34. VSM Workshop -‐Slideshare 34 Step 5: Facilitation Day One: Map out the current state. Day Two: Brainstorm and map the future state. Day Two & Three: Identify the improvement opportunities, assign owners, and estimate overall implementation time for each improvement. TIP: Produce a daily briefing for executive management.
- 35. VSM Workshop -‐Slideshare 35 Step 6: Governance Establish governance and a review cadence to realize the improvement plan.
- 36. VSM Workshop -‐Slideshare 36 Deliverables
- 37. VSM Workshop -‐Slideshare 37 VSM Output The deliverables from a VSM workshop are designed to bring about change:
- 38. VSM Workshop -‐Slideshare 38 VSM Output The deliverables from a VSM workshop are designed to bring about change: – Process map of the Current State
- 39. VSM Workshop -‐Slideshare 39 VSM Output The deliverables from a VSM workshop are designed to bring about change: – Process map of the Current State – Process map of the Future State, with improvements highlighted
- 40. VSM Workshop -‐Slideshare 40 VSM Output The deliverables from a VSM workshop are designed to bring about change: – Process map of the Current State – Process map of the Future State, with improvements highlighted – Performance metrics (current and future)
- 41. VSM Workshop -‐Slideshare 41 VSM Output The deliverables from a VSM workshop are designed to bring about change: – Process map of the Current State – Process map of the Future State, with improvements highlighted – Performance metrics (current and future) – Transformation plan to achieve the Future State
- 42. VSM Workshop -‐Slideshare 42 Outcomes
- 43. VSM Workshop -‐Slideshare 43 VSM: So What? A well-‐executed VSM workshop with a committed champion can be a game changer for your organization.
- 44. VSM Workshop -‐Slideshare 44 VSM: So What? A well-‐executed VSM workshop with a committed champion can be a game changer for your organization. The outcomes may include: reduced lead time and waste, improved customer service and product quality, and increased employee engagement.
- 45. VSM Workshop -‐Slideshare 45 VSM: So What? Your IT organization is in a unique position to initiate a VSM workshop, given its involvement in business requirements gathering and cross-‐functional projects.
- 46. VSM Workshop -‐Slideshare 46 VSM: So What? Your IT organization is in a unique position to initiate a VSM workshop, given its involvement in business requirements gathering and cross-‐functional projects. If IT builds the capability to plan and execute VSM workshops to enable business transformation, the department can move up the value chain within the broader organization.
- 47. VSM Workshop -‐Slideshare 47 Andy Nemtzow: linkedin.com/in/anemtzow James Healey: linkedin.com/in/jamescundarihealey Abraic helps improve business processes & outcomes for IT organizations.
- 48. VSM Workshop -‐Slideshare 48 Learn more: abraic.com/blog Abraic helps improve business processes & outcomes for IT organizations.