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 Consultant – We help clients in all industries establish
and grow Lean management systems, globally.
 Author & Speaker:
Karen Martin, President
The Karen Martin Group, Inc.
@karenmartinopex
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www.ksmartin.com/subscribe
Shingo Award
Winning
Shingo Award
Winning
ON SALE NOW!
After the Webinar…
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• Materials: www.slideshare.net/karenmartingroup
• Recorded webinars:
• www.ksmartin.com/webinars
• www.youtube.com/karenmartingroup
• www.vimeo.com/karenmartingroup
• www.slideshare.net/karenmartingroup
www.ksmartin.com/webinars
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You will learn…
• The similarities and differences between value
stream maps (VSM) and metrics-based process
maps (MBPM).
• The circumstances under which to select each
type of map.
• Tips for successful mapping activities.
Value Stream Mapping vs. Metrics-Based Process Mapping
© 2015 The Karen Martin Group, Inc. 8
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro – Interconnected processes Micro – Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
Value Stream Mapping vs. Metrics-Based Process Mapping
© 2015 The Karen Martin Group, Inc. 9
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro – Interconnected processes Micro – Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
What problem are you trying to solve?
© 2015 The Karen Martin Group, Inc. 10
Desired State
(or known standard)
Current State
Gap =
Problem
Value Stream Mapping vs. Metrics-Based Process Mapping
© 2015 The Karen Martin Group, Inc.
11
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro – Interconnected processes Micro – Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
Value Stream Transformation is Strategic
© 2015 The Karen Martin Group, Inc. 12
For more information, see Value Stream Mapping, Karen Martin & Mike Osterling
Process Improvement is Tactical
© 2015 The Karen Martin Group, Inc. 13
For more information, see Metrics-Based Process Mapping, Karen Martin & Mike Osterling
Value Stream Mapping vs. Metrics-Based Process Mapping
© 2015 The Karen Martin Group, Inc. 14
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro – Interconnected processes Micro – Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
Work: Degrees of Granularity
Value
Stream
Process Process Process
Step StepStep
15
Macro
Perspective
• Define strategic
direction (“what”)
• Heavy leadership
involvement
• Value Stream
Mapping
Micro
Perspective
• Identify the
tactical “how”
• Heavy frontline
involvement
• Metrics-Based
Process Mapping
Which do you need?
Macro or Micro View?
16
Work: Levels of Granularity
© 2015 The Karen Martin Group, Inc. 17
Negotiate
contract
Process
order
Configure
software
Value
Stream
Process Negotiate
pricing
Approve
Negotiate
terms
Approve Execute
Degrees of Granularity:
Hiring Value Stream
Hire
Recruit Select Onboard
Write job
description
Post
externally
Post
internally
18
Process-level
Perspective
Value-stream
Perspective
What problem are you trying to solve?
© 2015 The Karen Martin Group, Inc. 19
Desired State
(or known standard)
Current State
Gap =
Problem
Value Stream Mapping vs. Metrics-Based Process Mapping
© 2015 The Karen Martin Group, Inc. 20
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro – Interconnected processes Micro – Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
Visualize the entire cycle of value delivery on a single sheet of paper
21
Timeline
3
Basic Value Stream Map
Work
Flow
Information
Flow
1
2
Customer
0.0 hrs.
0.5 days
1.0 hrs.
5.0 days
3.6 hrs.
0.6 days
0.0 hrs.
1.0 days
0.2 hrs.
0.5 days
16.0 hrs. 0.0 hrs.
7.0 days
8.0 hrs. 0.0 hrs.
7.0 days
0.1 hrs.
26.0 days
0.0 hrs.
0.2 days Total LT =
Total PT =
ActivityRa
SAP
Summary
Invoice
(Excel)Obtain Order;
Enter Order in
Offline Order
Form
Sales
(Key at night)
LT = 4.5 hrs.
PT = 18 mins.
%C&A: 80%
1
Review &
Release
Credit Holds
Sales
LT = 4 hrs.
PT = 10 mins.
%C&A: 99%
3
Issue DO To
Transporter;
Create Pick
List
WH1
LT = 8 hrs.
PT = 1 mins.
%C&A: 95%
5
Pick
& Load
Order
Logistics
LT = 4 hrs.
PT = 15 mins.
%C&A: 95%
6
Collect
POD from
Customer
Transporter
LT = 2 days
7
Collect POD
From
Transporter
WH1
LT = 7 days
PT = 1 mins.
%C&A: 99%
8
Deliver
POD to
Accounting
Messenger
Batch = 1x/day
LT = 1 days
9
Review POD
For
Accuracy
Accounting
LT = 7 days
PT = 2 mins.
%C&A: 99%
10
Deliv er Bill;
Collect from
Customer;
Deposit
Sales
Batch = 1x
monthly
LT = 26 days
PT = 5 mins.
11
COLOR LEGEND
Logistics / W arehouse
Sales
Order Management
Production
10%
90%
Produce
Product
Plant 1
LT = 280 mins.
PT = 215 mins.
%C&A: 99%
4B
Pick
& Load
Order
WH2
LT = 40 mins.
PT = 3 mins.
%C&A: 99%
5B
40 Days Delivery to Payment Received3.5 Days Order Receipt to Ship
MonthlySales Volume
Wk1 = 14-23%
Wk2 = 19-24%
Wk3 = 23-25%
Wk4 = 30-42%
Obtain &
Revise Sales
Forecast
Sales
LT = 0 days
PT = 270 mins.
%C&A: 99%
1B
Hold S&OP
Meeting
6-7 People
LT = 5 days
PT = 3 hrs.
%C&A: 99%
2B
Create
Production
Plan
Production
Planning
LT = 5 days
PT = 1 hrs.
%C&A: 99%
3B
Produce
Product
Plant 2
LT = 280 mins.
PT = 215 mins.
%C&A: 99%
4C
Offline
Order
Form
Enter
Payment;
Clear Billing
Accounting
LT = 2 hrs.
PT = 1 mins.
%C&A: 99%
12
Accounting
Delivery
Order
(DO)
Pick
List
Proof of
Delivery
(POD)
Transfer
Report
Prod.
Plan
Check
Stock &
Reallocate
Logistics &
Warehouse
Batch = 1x/day
LT = 4 hrs.
PT = 2 mins.
%C&A: 99%
4
Prod.
Plan
plier
Receive
Material
Store
3C
Current State Value Stream Map
Order to Cash
Customer
3.0 hrs.
21.0 days
1.0 hrs.
5.0 days
3.6 hrs.
0.6 days
0.0 hrs.
0.5 days
15.0 hrs.
30.0 days
0.0 hrs.
7.0 days
8.0 hrs. 0.0 hrs.
5.0 days
0.1 hrs.
26.0 days
0.0 hrs.
0.2 days Tota
Tota
Acti
SAP
Collect
Order From
Customer
Sales
LT = 15 mins.
PT = 15 mins.
%C&A: 99%
2
Collect
Customer
Orders
Order
Mgmt
LT = 15 mins.
PT = 15 mins.
%C&A: 99%
2B
Review &
Release
Credit Holds
Sales
LT = 4 hrs.
PT = 10 mins.
3
Issue DO
To
Transporter
WH1
LT = 4 hrs.
PT = 1 mins.
4
Load &
Prepare
Invoice
Logistics
LT = 4 hrs.
PT = 15 hrs.
5
Collect
POD from
Customer
Transporter
LT = 2 days
6
Enter
POD
WH1
LT = 7 days
PT = 1 mins.
%C&A: 99%
7
Deliver
POD to
Accounting
Messenger
LT = 1 days
8 Rev iew POD
for Accuracy;
Email Receipt
to Sales
Accounting
LT = 5 days
PT = 2 mins.
9
Produce
Product
Plant 1
LT = 285 mins.
PT = 215 mins.
%C&A: 99%
3B
Pick &
Stage
WH2
PT = 15 mins.
%C&A: 95%
4B
Create
Production
Plan
Production
Planning
LT = 5 days
PT = 1 hrs.
%C&A: 99%
2C
2%
Produce
Product
Plant 2
LT = 285 mins.
PT = 215 mins.
%C&A: 99%
3C
Accept
Customer
e-Payment
Bank
LT = 30 days
PT = 0 hrs.
%C&A: 99%
6B
Enter
Payment,
Clear Billing
Accounting
LT = 2 hrs.
PT = 1 mins.
11
Invoice
70%30%
Hold S&OP
Meeting
LT = 1 mo.
PT = 3 hrs.
1
40 Days Delivery to Payment Received1.5 Days Order Receipt to Ship
MonthlySales Volume
Wk1 = 25%
Wk2 = 25%
Wk3 = 25%
Wk4 = 25%
Prod.
Plan
Prod.
Plan
Pick
List
Invoice
Excel
Sheet
Inv entory
Report
Deliv er
Receipt &
Collect from
Customer
Sales
Batch = 1x
monthly
LT = 26 days
PT = 5 mins.
10
POD
50%
50%
98%
COLOR LEGEND
Logistics / W arehouse
Sales
Order Management
Production
Accounting
Future State Value Stream Map
Order to Cash
© 2015 The Karen Martin Group, Inc. 25
Current State Value Stream Map
Outpatient Imaging
© 2015 The Karen Martin Group, Inc. 26
Future State Value Stream Map
Outpatient Imaging
Traditional Mapping Method:
Process Flow Chart
How is this process performing?
Look up Customer
in Eclipse
SALES
New
Customer?
Enter Order
SALES
Print Ship Ticket
SALES
Load Trucks
SHIPPING
Enter Customer
Information
ADMIN
Perform Credit
Check
FINANCE
Okay?
Notify Sales COD
Only; Notify Admin
to update
Customer Profile
FINANCE
Yes
No
No
Yes
Product in
Stock?
Yes
Order Material
PURCHASING
No
Receive Material
RECEIVING
Complete
New Hire
Setup Form
Complete
Drug test
within 24
hours
HR Receives
results within
3 days and
issues offer
letter
P: Setup New hire as a vendor
IT: Setup user logins and provide
hardware, if needed,
F: Assign vehicle, issue cell phone
order uniforms and guides, if needed.
Submit
Candidate
for
background
check and
drug test.
HR Issues
Employee ID
and Notifies
HM & Support
Organizations
Signs offer
letter and
required yellow
forms. Fax to
HR
Call candidate
to welcome
and remind to
complete
forms
Gather
Support items
to transfer to
new hire on
day one
New Hire Setup Process Map
Good training tool, but how do we know what to improve?
CandidateHiringManagerAdministratorHumanResources
SupportTeam[IT,
Purchasing(P),
Fleet(F)]
Value Stream Map ≠ Swim Lane Process Map
Benefits
Administrator
Receive
negative
drug
screen
results
Complete
“New Hire
Approval”
form; send
to recruiter
Recruiter
Sign “New
Hire
Approval”
form
Recruiter
Sign “New
Hire
Approval”
form
Set up
employee
in SAP;
notify
hiring
manager
Hiring
Manager
Request
laptop on
“New Hire
Equip.
Request”
form
IT
Manager
Approve
“New Hire
Equip.
Request”
29
Metrics-Based Process Mapping (MBPM)
The Improved State Becomes Standard Work
0
1
0
15
6
-1
0
Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A
1
Fax PO to Sales
Rep
0 0 45%
2
Review PO;
clarify with
customer as
needed
20 2 90%
Fax PO to
warehouse
10 4 90%
5
6
Check inventory
levels; notify
Sales Rep re:
status
5 4 95%
Fax PO to Sales
Rep
5 0.33 90%
0 20 10 5 5
0 2 4 4 0.33
45% 90% 90% 95% 90%
0 20 10 5 5
Rolled %C&A
Critical Path LT
Total PT
Critical Path PT
5431 2
Mary Townsend
Hours Worked per Day Sally Dampier
Occurrences per Year Sam Parks
Current State Metrics-Based Process Map
Dave Morgan25-Jun-08
8 Facilitator
Process Details
Michael Prichard
Order FulfillmentProcess Name
Specific Conditions Domestic orders through sales force
37,500
Date Mapped
Sean Michaels
Sales Rep
Ryan AustinDiane O'Shea
Mapping Team
LT Units
Function /
Department
PT Units
Step # ►
Customer
Finance
Warehouse /
Shipping
Seconds
Minutes
Hours
Days
Seconds
Minutes
Hours
Days
Excel tool included with Metrics-Based Process Mapping book
Value Stream Mapping vs. Metrics-Based Process Mapping
© 2015 The Karen Martin Group, Inc. 32
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro – Interconnected processes Micro – Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
Current State Value Stream Map
Outpatient Imaging
34
Value Stream Maps Help Visualize Problems
Value Stream Mapping vs. Metrics-Based Process Mapping
© 2015 The Karen Martin Group, Inc. 35
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro – Interconnected processes Micro – Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
VSM & MBPM: Same Metrics
36
Barriers
to flow
# people
PT
LT%C&A
Value Stream Mapping vs. Metrics-Based Process Mapping
© 2015 The Karen Martin Group, Inc. 37
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro – Interconnected processes Micro – Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
© 2015 The Karen Martin Group, Inc. 38
Real-World VSM Facilitation Examples
• Two VPs arguing over which leader’s area should perform a
certain process
• Discussion about outsourcing a functional area that will result
in 30 people being laid off
• Candid discussion about the risk of losing the company’s #1
customer
• Candid discussion about a legal or regulatory matter
• Value stream needs level loading, work balancing and pull
© 2015 The Karen Martin Group, Inc. 39
Real-World MBPM Facilitation Examples
• Frontline team member begins to recognize that the work he
does is 100% non-value-adding
• Supervisor dictates future state improvement ideas
• Manager reveals that she doesn’t support the targets begin
set (nor the objective of the mapping session)
• Team doesn’t feel authorized to make tactical decisions
• Two team members have obvious tension between them
• A team member shuts down
© 2015 The Karen Martin Group, Inc. 40
Value Stream Mapping vs. Metrics-Based Process Mapping
© 2015 The Karen Martin Group, Inc. 41
Feature Value Stream Mapping Metrics-Based Process Mapping
Purpose / outcome Strategic improvement plan Tactical improvement plan
Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy
When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc.
Perspective Macro – Interconnected processes Micro – Steps within each processes
Physical look Circular loop; request to delivery Swim lanes
Information flow Essential component Less obvious
Key metrics
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Lead time (LT), Process time (PT),
Percent Complete & Accurate (%C&A)
Facilitator
Must be strong & able to relate to
strategic thinkers
Must be strong & able to relate to the
people who do the work
How long to create? 3 days 1-2 days
Prepare
Understand
Current State
Design
Future State
Develop
Transformation
Plan
Execute
Transformation
Plan
Three Consecutive Days4 Weeks Prior
to Mapping
Following
Mapping
Repeat
Value Stream Mapping
Phases and Timing
42
Prepare
Understand
Current State
Design
Future State
Develop
Transformation
Plan or Execute
Execute
Transformation
Plan
1-2 Consecutive Days4 Weeks Prior
to Mapping
Following
Mapping
Repeat
Metrics-Based Process Mapping
Phases and Timing
43
Mapping Tips
45
1
2 1
3 2
4 3
5 4
5
1 6
2 7
3 8
4 9
5 10
1
2 1
3 2
4 3
5 4
1
2
3
4
Specific
Conditions
Engineer to order, requires both hardware &
software customization
Value Stream
Champion
Nancy Little
Demand Rate 1,000 per year
Facilitator Dave Parks
Value Stream Mapping Charter
Scope Accountable Parties Logistics
Value Stream Capital equipment
Executive
Sponsor
Allen Ward
Event Dates
& Times
July 24-26, 2013
8:00 am - 5:00 pm
Last Step Production ships product
Boundaries &
Limitations
No new software; only minor changes to existing IT
systems; no additional staff; no budget changes
Briefing
Attendees
** required
*optional
** Allen W (COO), Joe M (CIO),
Sal T (VP Sales)
* Bruce R (VP Ops), Carlos P
(HR), Su T (CFO), Bill M (VP CS)
Base-camp
Location
Surf's Up - Room A
Trigger Customer submits RFQ
First Step Sales reviews the RFQ Logistics
Coordinator
Dave Parks
Meals
Provided
Continential breakfast & lunch
Desire to stay ahead of the competition & deepen customer loyalty. Function / Title Name Contact Information
Forecasted growth of 15% for next fiscal year. Sales, Director Sean Michaels
Briefing
Dates &
Times
July 24, 25, & 26
4:00-5:00 pmImprovement Time
Frame
Future state design is fully realized by
December 31, 2013.
Current State Problems & Business Needs Mapping Team
Competition's RFQ LT is 1 wk; PO to delivery is 4 wks Scrum Master Ryan Austin
Goals & Measurable Target Conditions Engineering, Vice President Nancy Little
Unclear & incorrect information flowing through value stream. IT, Director Diana Marie
RFQ lead time = 2 weeks; PO to software dev lead time = 5 weeks Finance, Controller Dave Gerald
Improve quality of information flowing throughout value stream. Customer (contract manufacturer) JR Hunt
Reduce RFQ LT from 2 weeks to 3 days (70% improvement). Manufacturing, Director Ambreen Motiwala
Reduce PO to software dev LT from 5 wks to 3 wks (40% improvement) Customer Service, Manager Danny Tran
Faster delivery; less hassle; less cost. Function Name Contact Information
Better working relationships between sales, estimating & engineering. Planning / Purchasing, Planner Lourdes Dwyer
Benefits to Customers & Business On-Call Support
Relevant Data Agreement
Freed capacity to absorb additional business w/o increasing staff. Production Supervisor Tom St. James
Operational: LT in segments (RFQ to quote; PO to development). Signature: Signature: Signature:
Sales effectiveness: RFQ conversion rate. Executive Sponsor Value Stream Champion Facilitator
Financial: Estimate-to-actual cost comparison.
Date: Date: Date:
Value Stream Scoping Diagram
Defining Specific Conditions
Golden State
Equipment, Inc.
Capital
Equipment
Catalog
Configure
to order
Engineer
to order
Custom
hardware
Custom
software
Both
New Product
Development
Spares &
subassemblies
Catalog
Engineer to
order
46
47
1
2 1
3 2
4 3
5 4
5
1 6
2 7
3 8
4 9
5 10
1
2 1
3 2
4 3
5 4
1
2
3
4
Specific
Conditions
Engineer to order, requires both hardware &
software customization
Value Stream
Champion
Nancy Little
Demand Rate 1,000 per year
Facilitator Dave Parks
Value Stream Mapping Charter
Scope Accountable Parties Logistics
Value Stream Capital equipment
Executive
Sponsor
Allen Ward
Event Dates
& Times
July 24-26, 2013
8:00 am - 5:00 pm
Last Step Production ships product
Boundaries &
Limitations
No new software; only minor changes to existing IT
systems; no additional staff; no budget changes
Briefing
Attendees
** required
*optional
** Allen W (COO), Joe M (CIO),
Sal T (VP Sales)
* Bruce R (VP Ops), Carlos P
(HR), Su T (CFO), Bill M (VP CS)
Base-camp
Location
Surf's Up - Room A
Trigger Customer submits RFQ
First Step Sales reviews the RFQ Logistics
Coordinator
Dave Parks
Meals
Provided
Continential breakfast & lunch
Desire to stay ahead of the competition & deepen customer loyalty. Function / Title Name Contact Information
Forecasted growth of 15% for next fiscal year. Sales, Director Sean Michaels
Briefing
Dates &
Times
July 24, 25, & 26
4:00-5:00 pmImprovement Time
Frame
Future state design is fully realized by
December 31, 2013.
Current State Problems & Business Needs Mapping Team
Competition's RFQ LT is 1 wk; PO to delivery is 4 wks Scrum Master Ryan Austin
Goals & Measurable Target Conditions Engineering, Vice President Nancy Little
Unclear & incorrect information flowing through value stream. IT, Director Diana Marie
RFQ lead time = 2 weeks; PO to software dev lead time = 5 weeks Finance, Controller Dave Gerald
Improve quality of information flowing throughout value stream. Customer (contract manufacturer) JR Hunt
Reduce RFQ LT from 2 weeks to 3 days (70% improvement). Manufacturing, Director Ambreen Motiwala
Reduce PO to software dev LT from 5 wks to 3 wks (40% improvement) Customer Service, Manager Danny Tran
Faster delivery; less hassle; less cost. Function Name Contact Information
Better working relationships between sales, estimating & engineering. Planning / Purchasing, Planner Lourdes Dwyer
Benefits to Customers & Business On-Call Support
Relevant Data Agreement
Freed capacity to absorb additional business w/o increasing staff. Production Supervisor Tom St. James
Operational: LT in segments (RFQ to quote; PO to development). Signature: Signature: Signature:
Sales effectiveness: RFQ conversion rate. Executive Sponsor Value Stream Champion Facilitator
Financial: Estimate-to-actual cost comparison.
Date: Date: Date:
10
people
max!
Daily Briefings
#1 – Reduce resistance
#2 – Build consensus
#3 – Gain commitment
49
Mapping results are
proportional to the quality of the
planning and chartering process
and facilitator skill
© 2015 The Karen Martin Group, Inc. 50
Karen Martin, President
info@ksmartin.com
@karenmartinopex
Blog & newsletter: www.ksmartin.com/subscribe

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value stream mapping and metrics based process mapping

  • 1.
  • 2.  Consultant – We help clients in all industries establish and grow Lean management systems, globally.  Author & Speaker: Karen Martin, President The Karen Martin Group, Inc. @karenmartinopex 2 www.ksmartin.com/subscribe Shingo Award Winning Shingo Award Winning ON SALE NOW!
  • 3. After the Webinar… 3 • Please provide feedback • Materials: www.slideshare.net/karenmartingroup • Recorded webinars: • www.ksmartin.com/webinars • www.youtube.com/karenmartingroup • www.vimeo.com/karenmartingroup • www.slideshare.net/karenmartingroup
  • 5. 5
  • 6. 6
  • 7. You will learn… • The similarities and differences between value stream maps (VSM) and metrics-based process maps (MBPM). • The circumstances under which to select each type of map. • Tips for successful mapping activities.
  • 8. Value Stream Mapping vs. Metrics-Based Process Mapping © 2015 The Karen Martin Group, Inc. 8 Feature Value Stream Mapping Metrics-Based Process Mapping Purpose / outcome Strategic improvement plan Tactical improvement plan Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc. Perspective Macro – Interconnected processes Micro – Steps within each processes Physical look Circular loop; request to delivery Swim lanes Information flow Essential component Less obvious Key metrics Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Facilitator Must be strong & able to relate to strategic thinkers Must be strong & able to relate to the people who do the work How long to create? 3 days 1-2 days
  • 9. Value Stream Mapping vs. Metrics-Based Process Mapping © 2015 The Karen Martin Group, Inc. 9 Feature Value Stream Mapping Metrics-Based Process Mapping Purpose / outcome Strategic improvement plan Tactical improvement plan Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc. Perspective Macro – Interconnected processes Micro – Steps within each processes Physical look Circular loop; request to delivery Swim lanes Information flow Essential component Less obvious Key metrics Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Facilitator Must be strong & able to relate to strategic thinkers Must be strong & able to relate to the people who do the work How long to create? 3 days 1-2 days
  • 10. What problem are you trying to solve? © 2015 The Karen Martin Group, Inc. 10 Desired State (or known standard) Current State Gap = Problem
  • 11. Value Stream Mapping vs. Metrics-Based Process Mapping © 2015 The Karen Martin Group, Inc. 11 Feature Value Stream Mapping Metrics-Based Process Mapping Purpose / outcome Strategic improvement plan Tactical improvement plan Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc. Perspective Macro – Interconnected processes Micro – Steps within each processes Physical look Circular loop; request to delivery Swim lanes Information flow Essential component Less obvious Key metrics Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Facilitator Must be strong & able to relate to strategic thinkers Must be strong & able to relate to the people who do the work How long to create? 3 days 1-2 days
  • 12. Value Stream Transformation is Strategic © 2015 The Karen Martin Group, Inc. 12 For more information, see Value Stream Mapping, Karen Martin & Mike Osterling
  • 13. Process Improvement is Tactical © 2015 The Karen Martin Group, Inc. 13 For more information, see Metrics-Based Process Mapping, Karen Martin & Mike Osterling
  • 14. Value Stream Mapping vs. Metrics-Based Process Mapping © 2015 The Karen Martin Group, Inc. 14 Feature Value Stream Mapping Metrics-Based Process Mapping Purpose / outcome Strategic improvement plan Tactical improvement plan Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc. Perspective Macro – Interconnected processes Micro – Steps within each processes Physical look Circular loop; request to delivery Swim lanes Information flow Essential component Less obvious Key metrics Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Facilitator Must be strong & able to relate to strategic thinkers Must be strong & able to relate to the people who do the work How long to create? 3 days 1-2 days
  • 15. Work: Degrees of Granularity Value Stream Process Process Process Step StepStep 15 Macro Perspective • Define strategic direction (“what”) • Heavy leadership involvement • Value Stream Mapping Micro Perspective • Identify the tactical “how” • Heavy frontline involvement • Metrics-Based Process Mapping
  • 16. Which do you need? Macro or Micro View? 16
  • 17. Work: Levels of Granularity © 2015 The Karen Martin Group, Inc. 17 Negotiate contract Process order Configure software Value Stream Process Negotiate pricing Approve Negotiate terms Approve Execute
  • 18. Degrees of Granularity: Hiring Value Stream Hire Recruit Select Onboard Write job description Post externally Post internally 18 Process-level Perspective Value-stream Perspective
  • 19. What problem are you trying to solve? © 2015 The Karen Martin Group, Inc. 19 Desired State (or known standard) Current State Gap = Problem
  • 20. Value Stream Mapping vs. Metrics-Based Process Mapping © 2015 The Karen Martin Group, Inc. 20 Feature Value Stream Mapping Metrics-Based Process Mapping Purpose / outcome Strategic improvement plan Tactical improvement plan Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc. Perspective Macro – Interconnected processes Micro – Steps within each processes Physical look Circular loop; request to delivery Swim lanes Information flow Essential component Less obvious Key metrics Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Facilitator Must be strong & able to relate to strategic thinkers Must be strong & able to relate to the people who do the work How long to create? 3 days 1-2 days
  • 21. Visualize the entire cycle of value delivery on a single sheet of paper 21
  • 22. Timeline 3 Basic Value Stream Map Work Flow Information Flow 1 2
  • 23. Customer 0.0 hrs. 0.5 days 1.0 hrs. 5.0 days 3.6 hrs. 0.6 days 0.0 hrs. 1.0 days 0.2 hrs. 0.5 days 16.0 hrs. 0.0 hrs. 7.0 days 8.0 hrs. 0.0 hrs. 7.0 days 0.1 hrs. 26.0 days 0.0 hrs. 0.2 days Total LT = Total PT = ActivityRa SAP Summary Invoice (Excel)Obtain Order; Enter Order in Offline Order Form Sales (Key at night) LT = 4.5 hrs. PT = 18 mins. %C&A: 80% 1 Review & Release Credit Holds Sales LT = 4 hrs. PT = 10 mins. %C&A: 99% 3 Issue DO To Transporter; Create Pick List WH1 LT = 8 hrs. PT = 1 mins. %C&A: 95% 5 Pick & Load Order Logistics LT = 4 hrs. PT = 15 mins. %C&A: 95% 6 Collect POD from Customer Transporter LT = 2 days 7 Collect POD From Transporter WH1 LT = 7 days PT = 1 mins. %C&A: 99% 8 Deliver POD to Accounting Messenger Batch = 1x/day LT = 1 days 9 Review POD For Accuracy Accounting LT = 7 days PT = 2 mins. %C&A: 99% 10 Deliv er Bill; Collect from Customer; Deposit Sales Batch = 1x monthly LT = 26 days PT = 5 mins. 11 COLOR LEGEND Logistics / W arehouse Sales Order Management Production 10% 90% Produce Product Plant 1 LT = 280 mins. PT = 215 mins. %C&A: 99% 4B Pick & Load Order WH2 LT = 40 mins. PT = 3 mins. %C&A: 99% 5B 40 Days Delivery to Payment Received3.5 Days Order Receipt to Ship MonthlySales Volume Wk1 = 14-23% Wk2 = 19-24% Wk3 = 23-25% Wk4 = 30-42% Obtain & Revise Sales Forecast Sales LT = 0 days PT = 270 mins. %C&A: 99% 1B Hold S&OP Meeting 6-7 People LT = 5 days PT = 3 hrs. %C&A: 99% 2B Create Production Plan Production Planning LT = 5 days PT = 1 hrs. %C&A: 99% 3B Produce Product Plant 2 LT = 280 mins. PT = 215 mins. %C&A: 99% 4C Offline Order Form Enter Payment; Clear Billing Accounting LT = 2 hrs. PT = 1 mins. %C&A: 99% 12 Accounting Delivery Order (DO) Pick List Proof of Delivery (POD) Transfer Report Prod. Plan Check Stock & Reallocate Logistics & Warehouse Batch = 1x/day LT = 4 hrs. PT = 2 mins. %C&A: 99% 4 Prod. Plan plier Receive Material Store 3C Current State Value Stream Map Order to Cash
  • 24. Customer 3.0 hrs. 21.0 days 1.0 hrs. 5.0 days 3.6 hrs. 0.6 days 0.0 hrs. 0.5 days 15.0 hrs. 30.0 days 0.0 hrs. 7.0 days 8.0 hrs. 0.0 hrs. 5.0 days 0.1 hrs. 26.0 days 0.0 hrs. 0.2 days Tota Tota Acti SAP Collect Order From Customer Sales LT = 15 mins. PT = 15 mins. %C&A: 99% 2 Collect Customer Orders Order Mgmt LT = 15 mins. PT = 15 mins. %C&A: 99% 2B Review & Release Credit Holds Sales LT = 4 hrs. PT = 10 mins. 3 Issue DO To Transporter WH1 LT = 4 hrs. PT = 1 mins. 4 Load & Prepare Invoice Logistics LT = 4 hrs. PT = 15 hrs. 5 Collect POD from Customer Transporter LT = 2 days 6 Enter POD WH1 LT = 7 days PT = 1 mins. %C&A: 99% 7 Deliver POD to Accounting Messenger LT = 1 days 8 Rev iew POD for Accuracy; Email Receipt to Sales Accounting LT = 5 days PT = 2 mins. 9 Produce Product Plant 1 LT = 285 mins. PT = 215 mins. %C&A: 99% 3B Pick & Stage WH2 PT = 15 mins. %C&A: 95% 4B Create Production Plan Production Planning LT = 5 days PT = 1 hrs. %C&A: 99% 2C 2% Produce Product Plant 2 LT = 285 mins. PT = 215 mins. %C&A: 99% 3C Accept Customer e-Payment Bank LT = 30 days PT = 0 hrs. %C&A: 99% 6B Enter Payment, Clear Billing Accounting LT = 2 hrs. PT = 1 mins. 11 Invoice 70%30% Hold S&OP Meeting LT = 1 mo. PT = 3 hrs. 1 40 Days Delivery to Payment Received1.5 Days Order Receipt to Ship MonthlySales Volume Wk1 = 25% Wk2 = 25% Wk3 = 25% Wk4 = 25% Prod. Plan Prod. Plan Pick List Invoice Excel Sheet Inv entory Report Deliv er Receipt & Collect from Customer Sales Batch = 1x monthly LT = 26 days PT = 5 mins. 10 POD 50% 50% 98% COLOR LEGEND Logistics / W arehouse Sales Order Management Production Accounting Future State Value Stream Map Order to Cash
  • 25. © 2015 The Karen Martin Group, Inc. 25 Current State Value Stream Map Outpatient Imaging
  • 26. © 2015 The Karen Martin Group, Inc. 26 Future State Value Stream Map Outpatient Imaging
  • 27. Traditional Mapping Method: Process Flow Chart How is this process performing? Look up Customer in Eclipse SALES New Customer? Enter Order SALES Print Ship Ticket SALES Load Trucks SHIPPING Enter Customer Information ADMIN Perform Credit Check FINANCE Okay? Notify Sales COD Only; Notify Admin to update Customer Profile FINANCE Yes No No Yes Product in Stock? Yes Order Material PURCHASING No Receive Material RECEIVING
  • 28. Complete New Hire Setup Form Complete Drug test within 24 hours HR Receives results within 3 days and issues offer letter P: Setup New hire as a vendor IT: Setup user logins and provide hardware, if needed, F: Assign vehicle, issue cell phone order uniforms and guides, if needed. Submit Candidate for background check and drug test. HR Issues Employee ID and Notifies HM & Support Organizations Signs offer letter and required yellow forms. Fax to HR Call candidate to welcome and remind to complete forms Gather Support items to transfer to new hire on day one New Hire Setup Process Map Good training tool, but how do we know what to improve? CandidateHiringManagerAdministratorHumanResources SupportTeam[IT, Purchasing(P), Fleet(F)]
  • 29. Value Stream Map ≠ Swim Lane Process Map Benefits Administrator Receive negative drug screen results Complete “New Hire Approval” form; send to recruiter Recruiter Sign “New Hire Approval” form Recruiter Sign “New Hire Approval” form Set up employee in SAP; notify hiring manager Hiring Manager Request laptop on “New Hire Equip. Request” form IT Manager Approve “New Hire Equip. Request” 29
  • 31. The Improved State Becomes Standard Work 0 1 0 15 6 -1 0 Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A 1 Fax PO to Sales Rep 0 0 45% 2 Review PO; clarify with customer as needed 20 2 90% Fax PO to warehouse 10 4 90% 5 6 Check inventory levels; notify Sales Rep re: status 5 4 95% Fax PO to Sales Rep 5 0.33 90% 0 20 10 5 5 0 2 4 4 0.33 45% 90% 90% 95% 90% 0 20 10 5 5 Rolled %C&A Critical Path LT Total PT Critical Path PT 5431 2 Mary Townsend Hours Worked per Day Sally Dampier Occurrences per Year Sam Parks Current State Metrics-Based Process Map Dave Morgan25-Jun-08 8 Facilitator Process Details Michael Prichard Order FulfillmentProcess Name Specific Conditions Domestic orders through sales force 37,500 Date Mapped Sean Michaels Sales Rep Ryan AustinDiane O'Shea Mapping Team LT Units Function / Department PT Units Step # ► Customer Finance Warehouse / Shipping Seconds Minutes Hours Days Seconds Minutes Hours Days Excel tool included with Metrics-Based Process Mapping book
  • 32. Value Stream Mapping vs. Metrics-Based Process Mapping © 2015 The Karen Martin Group, Inc. 32 Feature Value Stream Mapping Metrics-Based Process Mapping Purpose / outcome Strategic improvement plan Tactical improvement plan Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc. Perspective Macro – Interconnected processes Micro – Steps within each processes Physical look Circular loop; request to delivery Swim lanes Information flow Essential component Less obvious Key metrics Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Facilitator Must be strong & able to relate to strategic thinkers Must be strong & able to relate to the people who do the work How long to create? 3 days 1-2 days
  • 33. Current State Value Stream Map Outpatient Imaging
  • 34. 34 Value Stream Maps Help Visualize Problems
  • 35. Value Stream Mapping vs. Metrics-Based Process Mapping © 2015 The Karen Martin Group, Inc. 35 Feature Value Stream Mapping Metrics-Based Process Mapping Purpose / outcome Strategic improvement plan Tactical improvement plan Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc. Perspective Macro – Interconnected processes Micro – Steps within each processes Physical look Circular loop; request to delivery Swim lanes Information flow Essential component Less obvious Key metrics Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Facilitator Must be strong & able to relate to strategic thinkers Must be strong & able to relate to the people who do the work How long to create? 3 days 1-2 days
  • 36. VSM & MBPM: Same Metrics 36 Barriers to flow # people PT LT%C&A
  • 37. Value Stream Mapping vs. Metrics-Based Process Mapping © 2015 The Karen Martin Group, Inc. 37 Feature Value Stream Mapping Metrics-Based Process Mapping Purpose / outcome Strategic improvement plan Tactical improvement plan Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc. Perspective Macro – Interconnected processes Micro – Steps within each processes Physical look Circular loop; request to delivery Swim lanes Information flow Essential component Less obvious Key metrics Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Facilitator Must be strong & able to relate to strategic thinkers Must be strong & able to relate to the people who do the work How long to create? 3 days 1-2 days
  • 38. © 2015 The Karen Martin Group, Inc. 38
  • 39. Real-World VSM Facilitation Examples • Two VPs arguing over which leader’s area should perform a certain process • Discussion about outsourcing a functional area that will result in 30 people being laid off • Candid discussion about the risk of losing the company’s #1 customer • Candid discussion about a legal or regulatory matter • Value stream needs level loading, work balancing and pull © 2015 The Karen Martin Group, Inc. 39
  • 40. Real-World MBPM Facilitation Examples • Frontline team member begins to recognize that the work he does is 100% non-value-adding • Supervisor dictates future state improvement ideas • Manager reveals that she doesn’t support the targets begin set (nor the objective of the mapping session) • Team doesn’t feel authorized to make tactical decisions • Two team members have obvious tension between them • A team member shuts down © 2015 The Karen Martin Group, Inc. 40
  • 41. Value Stream Mapping vs. Metrics-Based Process Mapping © 2015 The Karen Martin Group, Inc. 41 Feature Value Stream Mapping Metrics-Based Process Mapping Purpose / outcome Strategic improvement plan Tactical improvement plan Team composition Cross-functional; leadership heavy Cross-functional; frontline heavy When created Precedes kaizen events, projects, etc. During kaizen events, projects, etc. Perspective Macro – Interconnected processes Micro – Steps within each processes Physical look Circular loop; request to delivery Swim lanes Information flow Essential component Less obvious Key metrics Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Lead time (LT), Process time (PT), Percent Complete & Accurate (%C&A) Facilitator Must be strong & able to relate to strategic thinkers Must be strong & able to relate to the people who do the work How long to create? 3 days 1-2 days
  • 42. Prepare Understand Current State Design Future State Develop Transformation Plan Execute Transformation Plan Three Consecutive Days4 Weeks Prior to Mapping Following Mapping Repeat Value Stream Mapping Phases and Timing 42
  • 43. Prepare Understand Current State Design Future State Develop Transformation Plan or Execute Execute Transformation Plan 1-2 Consecutive Days4 Weeks Prior to Mapping Following Mapping Repeat Metrics-Based Process Mapping Phases and Timing 43
  • 45. 45 1 2 1 3 2 4 3 5 4 5 1 6 2 7 3 8 4 9 5 10 1 2 1 3 2 4 3 5 4 1 2 3 4 Specific Conditions Engineer to order, requires both hardware & software customization Value Stream Champion Nancy Little Demand Rate 1,000 per year Facilitator Dave Parks Value Stream Mapping Charter Scope Accountable Parties Logistics Value Stream Capital equipment Executive Sponsor Allen Ward Event Dates & Times July 24-26, 2013 8:00 am - 5:00 pm Last Step Production ships product Boundaries & Limitations No new software; only minor changes to existing IT systems; no additional staff; no budget changes Briefing Attendees ** required *optional ** Allen W (COO), Joe M (CIO), Sal T (VP Sales) * Bruce R (VP Ops), Carlos P (HR), Su T (CFO), Bill M (VP CS) Base-camp Location Surf's Up - Room A Trigger Customer submits RFQ First Step Sales reviews the RFQ Logistics Coordinator Dave Parks Meals Provided Continential breakfast & lunch Desire to stay ahead of the competition & deepen customer loyalty. Function / Title Name Contact Information Forecasted growth of 15% for next fiscal year. Sales, Director Sean Michaels Briefing Dates & Times July 24, 25, & 26 4:00-5:00 pmImprovement Time Frame Future state design is fully realized by December 31, 2013. Current State Problems & Business Needs Mapping Team Competition's RFQ LT is 1 wk; PO to delivery is 4 wks Scrum Master Ryan Austin Goals & Measurable Target Conditions Engineering, Vice President Nancy Little Unclear & incorrect information flowing through value stream. IT, Director Diana Marie RFQ lead time = 2 weeks; PO to software dev lead time = 5 weeks Finance, Controller Dave Gerald Improve quality of information flowing throughout value stream. Customer (contract manufacturer) JR Hunt Reduce RFQ LT from 2 weeks to 3 days (70% improvement). Manufacturing, Director Ambreen Motiwala Reduce PO to software dev LT from 5 wks to 3 wks (40% improvement) Customer Service, Manager Danny Tran Faster delivery; less hassle; less cost. Function Name Contact Information Better working relationships between sales, estimating & engineering. Planning / Purchasing, Planner Lourdes Dwyer Benefits to Customers & Business On-Call Support Relevant Data Agreement Freed capacity to absorb additional business w/o increasing staff. Production Supervisor Tom St. James Operational: LT in segments (RFQ to quote; PO to development). Signature: Signature: Signature: Sales effectiveness: RFQ conversion rate. Executive Sponsor Value Stream Champion Facilitator Financial: Estimate-to-actual cost comparison. Date: Date: Date:
  • 46. Value Stream Scoping Diagram Defining Specific Conditions Golden State Equipment, Inc. Capital Equipment Catalog Configure to order Engineer to order Custom hardware Custom software Both New Product Development Spares & subassemblies Catalog Engineer to order 46
  • 47. 47 1 2 1 3 2 4 3 5 4 5 1 6 2 7 3 8 4 9 5 10 1 2 1 3 2 4 3 5 4 1 2 3 4 Specific Conditions Engineer to order, requires both hardware & software customization Value Stream Champion Nancy Little Demand Rate 1,000 per year Facilitator Dave Parks Value Stream Mapping Charter Scope Accountable Parties Logistics Value Stream Capital equipment Executive Sponsor Allen Ward Event Dates & Times July 24-26, 2013 8:00 am - 5:00 pm Last Step Production ships product Boundaries & Limitations No new software; only minor changes to existing IT systems; no additional staff; no budget changes Briefing Attendees ** required *optional ** Allen W (COO), Joe M (CIO), Sal T (VP Sales) * Bruce R (VP Ops), Carlos P (HR), Su T (CFO), Bill M (VP CS) Base-camp Location Surf's Up - Room A Trigger Customer submits RFQ First Step Sales reviews the RFQ Logistics Coordinator Dave Parks Meals Provided Continential breakfast & lunch Desire to stay ahead of the competition & deepen customer loyalty. Function / Title Name Contact Information Forecasted growth of 15% for next fiscal year. Sales, Director Sean Michaels Briefing Dates & Times July 24, 25, & 26 4:00-5:00 pmImprovement Time Frame Future state design is fully realized by December 31, 2013. Current State Problems & Business Needs Mapping Team Competition's RFQ LT is 1 wk; PO to delivery is 4 wks Scrum Master Ryan Austin Goals & Measurable Target Conditions Engineering, Vice President Nancy Little Unclear & incorrect information flowing through value stream. IT, Director Diana Marie RFQ lead time = 2 weeks; PO to software dev lead time = 5 weeks Finance, Controller Dave Gerald Improve quality of information flowing throughout value stream. Customer (contract manufacturer) JR Hunt Reduce RFQ LT from 2 weeks to 3 days (70% improvement). Manufacturing, Director Ambreen Motiwala Reduce PO to software dev LT from 5 wks to 3 wks (40% improvement) Customer Service, Manager Danny Tran Faster delivery; less hassle; less cost. Function Name Contact Information Better working relationships between sales, estimating & engineering. Planning / Purchasing, Planner Lourdes Dwyer Benefits to Customers & Business On-Call Support Relevant Data Agreement Freed capacity to absorb additional business w/o increasing staff. Production Supervisor Tom St. James Operational: LT in segments (RFQ to quote; PO to development). Signature: Signature: Signature: Sales effectiveness: RFQ conversion rate. Executive Sponsor Value Stream Champion Facilitator Financial: Estimate-to-actual cost comparison. Date: Date: Date: 10 people max!
  • 48. Daily Briefings #1 – Reduce resistance #2 – Build consensus #3 – Gain commitment
  • 49. 49 Mapping results are proportional to the quality of the planning and chartering process and facilitator skill
  • 50. © 2015 The Karen Martin Group, Inc. 50 Karen Martin, President info@ksmartin.com @karenmartinopex Blog & newsletter: www.ksmartin.com/subscribe