More Related Content Similar to Value Stream Analysis: Beyond the Mechanics - Part 1 (Planning) (20) More from TKMG, Inc. (20) Value Stream Analysis: Beyond the Mechanics - Part 1 (Planning)23. 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.
23
33. Key Roles: Considerations
• 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.
33
35. 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.
35
36. Value Stream Mapping Charter
Scope
Accountable Parties
Logistics
Executive
Allen Ward
Sponsor
Value Stream Capital equipment
Specific Engineer to order, requires both hardware &
Conditions software customization
Event Dates July 24-26, 2013
& Times 8:00 am - 5:00 pm
Value Stream
Nancy Little
Champion
Demand Rate 1,000 per year
Base-camp
Surf's Up - Room A
Location
Facilitator Dave Parks
Trigger Customer submits RFQ
First Step Sales reviews the RFQ
Logistics
Dave Parks
Coordinator
Last Step Production ships product
Boundaries & No new software; only minor changes to existing IT
Limitations systems; no additional staff; no budget changes
Meals
Continential breakfast & lunch
Provided
Briefing ** Allen W (COO), Joe M (CIO),
Attendees Sal T (VP Sales)
** required * Bruce R (VP Ops), Carlos P
*optional (HR), Su T (CFO), Bill M (VP CS)
Improvement Time Future state design is fully realized by
Frame December 31, 2013.
Current State Problems & Business Needs
Briefing
July 24, 25, & 26
Dates &
4:00-5:00 pm
Times
Mapping Team
Function / Title
1 Desire to stay ahead of the competition & deepen customer loyalty.
Name
2 Forecasted growth of 15% for next fiscal year.
1 Sales, Director
Sean Michaels
3 Unclear & incorrect information flowing through value stream.
2 IT, Director
Diana Marie
4 Lead time for RFQ turnaround = 2 weeks; PO to software dev = 5 weeks
3 Finance, Controller
Dave Gerald
5 (Competition's RFQ LT is 1 wk and PO to delivery is 4 wks)
4 Scrum Master
Ryan Austin
5 Engineering, Vice President
Nancy Little
1 Reduce RFQ lead time by a minimum of 50%.
6 Manufacturing, Director
Ambreen Motiwala
2 Reduce PO to software development lead time by a minimum of 50%.
7 Customer Service, Manager
Danny Tran
3 Improve quality of information flowing throughout value stream.
8 Customer (contract manufacturer)
Contact Information
JR Hunt
Goals & Measurable Target Conditions
4
9
5
10
Benefits to Customers & Business
On-Call Support
Function
1 Faster delivery; less hassle; less cost.
Name
2 Better working relationships between sales, estimating & engineering.
1 Planning / Purchasing, Planner Lourdes Dwyer
3 Freed capacity to absorb additional business w/o increasing staff.
2 Production Supervisor
4
Contact Information
3
5
Tom St. James
4
Relevant Data
Agreement
Executive Sponsor
1 Sales effectiveness: RFQ conversion rate.
Value Stream Champion
Facilitator
2 Financial: Estimate-to-actual cost comparison.
3 Operational: LT in segments (RFQ to quote; PO to development).
Signature:
Signature:
Signature:
4
Date:
Date:
Date:
© 2014 The Karen Martin Group, Inc.
36
37. 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.
37
41. 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.
41
47. Value Stream Mapping Charter
Scope
Accountable Parties
Logistics
Executive
Allen Ward
Sponsor
Value Stream Capital equipment
Specific Engineer to order, requires both hardware &
Conditions software customization
Event Dates July 24-26, 2013
& Times 8:00 am - 5:00 pm
Value Stream
Nancy Little
Champion
Demand Rate 1,000 per year
Base-camp
Surf's Up - Room A
Location
Facilitator Dave Parks
Trigger Customer submits RFQ
First Step Sales reviews the RFQ
Logistics
Dave Parks
Coordinator
Last Step Production ships product
Boundaries & No new software; only minor changes to existing IT
Limitations systems; no additional staff; no budget changes
Meals
Continential breakfast & lunch
Provided
Briefing ** Allen W (COO), Joe M (CIO),
Attendees Sal T (VP Sales)
** required * Bruce R (VP Ops), Carlos P
*optional (HR), Su T (CFO), Bill M (VP CS)
Improvement Time Future state design is fully realized by
Frame December 31, 2013.
Current State Problems & Business Needs
Briefing
July 24, 25, & 26
Dates &
4:00-5:00 pm
Times
Mapping Team
Function / Title
1 Desire to stay ahead of the competition & deepen customer loyalty.
Name
2 Forecasted growth of 15% for next fiscal year.
1 Sales, Director
Sean Michaels
3 Unclear & incorrect information flowing through value stream.
2 IT, Director
Diana Marie
4 Lead time for RFQ turnaround = 2 weeks; PO to software dev = 5 weeks
3 Finance, Controller
Dave Gerald
5 (Competition's RFQ LT is 1 wk and PO to delivery is 4 wks)
4 Scrum Master
Ryan Austin
5 Engineering, Vice President
Nancy Little
1 Reduce RFQ lead time by a minimum of 50%.
6 Manufacturing, Director
Ambreen Motiwala
2 Reduce PO to software development lead time by a minimum of 50%.
7 Customer Service, Manager
Danny Tran
3 Improve quality of information flowing throughout value stream.
8 Customer (contract manufacturer)
Contact Information
JR Hunt
Goals & Measurable Target Conditions
4
9
5
10
Benefits to Customers & Business
On-Call Support
Function
1 Faster delivery; less hassle; less cost.
Name
2 Better working relationships between sales, estimating & engineering.
1 Planning / Purchasing, Planner Lourdes Dwyer
3 Freed capacity to absorb additional business w/o increasing staff.
2 Production Supervisor
4
Contact Information
3
5
Tom St. James
4
Relevant Data
Agreement
Executive Sponsor
1 Sales effectiveness: RFQ conversion rate.
Value Stream Champion
Facilitator
2 Financial: Estimate-to-actual cost comparison.
3 Operational: LT in segments (RFQ to quote; PO to development).
Signature:
Signature:
Signature:
4
Date:
Date:
Date:
© 2014 The Karen Martin Group, Inc.
47