Value Stream Mapping - PowerPoint PPT Presentation


Title: Value Stream Mapping


1
Value Stream Mapping
  • Management is Essential

2
The lean transformation should provide
  • Growth with improved margins
  • Growth with minimal capital
  • Growth without more employees

3
What are our main stumbling blocks?
  • Years of bad habits
  • Financial focus with limited cost understanding
  • A lack of system thinking and incentives
  • Metrics supporting a legacy model
  • Limited customer focus
  • Absence of effective operating strategies

4
How have these stumbling blocks been addressed?
  • Programs of the month (band aids)
  • Meetings, meetings, meetings, meetings

5
If we could just start over..with
  • Activities aligned with our business strategy
  • Efforts focused on NET improvements for the
    company
  • Metrics supportive of fundamental change
  • Simple, constant communication of our plans and
    achievements as an enterprise

6
Why not take the value stream perspective?
  • Whenever there is a product (or service) for a
    customer, there is a value stream. The
    challenge lies in seeing it.
  • 3 enterprise value streams
  • Raw Materials to Customer Manufacturing
  • Concept to Launch Engineerin
  • Order to Cash - Administrative Functions

7
  • A Value Stream is the set of all actions (both
    value added and non value added) required to
    bring a specific product or service from raw
    material through to the customer.

8
Value Stream Improvement vs. Process Improvement
Value Stream
Process
Process
Process
Customer
Assembly Cell
Stamping
Welding
RawMaterial
Finished Product
9
Value Stream Mapping
  • Follow a product or service from beginning to
    end, and draw a visual representation of every
    process in the material information flow
  • Then, draw (using icons) a future state map of
    how value should flow

10
(No Transcript)
11
Levels of a Value Stream
Start Here
12
Value Stream Managers
Customer
Kaizen
The Value Stream Manager
13
Using the Value Stream Mapping Tool
Product/Service Family
Understanding how things currently operate. Our
Baseline!
current state drawing
future state drawing
Designing a lean flow. Our vision!
plan and implementation
The Goal of Mapping
14
Current State Mapping
  • Completed in a day
  • Performed by a cross functional team of middle
    managers responsible for implementing new ideas
  • Resulting in a picture (and team observations) of
    what we see when following the product

15
Future State Mapping
  • Completed in a day with the same team
  • Focused on
  • Creating a flexible, reactive system that quickly
    adapts to changing customer needs
  • Eliminating waste
  • Creating flow
  • Producing on demand

16
Current State Value Stream Map
17
Future State Value Stream Map
18
Planning and Implementing
  • Dont Wait!
  • You need a plan!
  • Tie it to your business objectives
  • Make a VS Plan What to do by when
  • Establish an appropriate review frequency
  • Conduct VS Reviews walking the flow

19
Remember the other two value streams?
  • Administrative activities are often a major
    percentage of the total throughput time
  • Goal 400 improvement in productivity over 10
    years
  • Modest opportunities on the plant floor
    Untapped opportunities off the plant floor

20
Enterprise Perspective
  • Engineer to Order
  • Configure to Order
  • Capital equipment manufacturers
  • Small companies (lt500 employees)
  • Service Firms

21
We might begin in
  • Processes directly impacting the part production
  • Engineering
  • Quoting
  • Or, in value streams with direct customer contact
  • Order entry
  • Invoicing

22
Value Stream Mapping
  • Helps you visualize more than the single process
    level
  • Links the material and information flows
  • Provides a common language
  • Provides a blueprint for implementation
  • More useful than quantitative tools
  • Ties together lean concepts and techniques

23
Value Stream Management
  • The map is just a picture of ideas!
  • The fundamental change is in how we choose to
    manage the value stream as an integrated system
    of decisions and tasks

24
Value Stream Management
  • Use your strategic plan as a guide
  • Find the gaps in necessary performance
  • Improve value streams to meet the performance
  • Create new metrics to support new ways of
    thinking and acting
  • Understand true product family costs
  • Manage operations by the value stream data
  • Always have a future state

25
Critical Success Factors
  • Management must understand, embrace, and lead the
    organization into lean thinking
  • Value stream managers must be empowered and
    enabled to manage implementations
  • Improvements must be planned in detail with the
    cross functional Kaizen teams
  • Successes must be translated to the bottom line
    and/or market share

26
Putting it to Work!
  • Continuously improving fundamentally flawed
    processes will yield limited results.
  • Simply automating existing manual processes can
    also yield limited results.
  • Seriously challenging old practices will provide
    the dramatic results desired.
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Value Stream Mapping

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Transcript and Presenter's Notes

Title: Value Stream Mapping


1
Value Stream Mapping
  • Management is Essential

2
The lean transformation should provide
  • Growth with improved margins
  • Growth with minimal capital
  • Growth without more employees

3
What are our main stumbling blocks?
  • Years of bad habits
  • Financial focus with limited cost understanding
  • A lack of system thinking and incentives
  • Metrics supporting a legacy model
  • Limited customer focus
  • Absence of effective operating strategies

4
How have these stumbling blocks been addressed?
  • Programs of the month (band aids)
  • Meetings, meetings, meetings, meetings

5
If we could just start over..with
  • Activities aligned with our business strategy
  • Efforts focused on NET improvements for the
    company
  • Metrics supportive of fundamental change
  • Simple, constant communication of our plans and
    achievements as an enterprise

6
Why not take the value stream perspective?
  • Whenever there is a product (or service) for a
    customer, there is a value stream. The
    challenge lies in seeing it.
  • 3 enterprise value streams
  • Raw Materials to Customer Manufacturing
  • Concept to Launch Engineerin
  • Order to Cash - Administrative Functions

7
  • A Value Stream is the set of all actions (both
    value added and non value added) required to
    bring a specific product or service from raw
    material through to the customer.

8
Value Stream Improvement vs. Process Improvement
Value Stream
Process
Process
Process
Customer
Assembly Cell
Stamping
Welding
RawMaterial
Finished Product
9
Value Stream Mapping
  • Follow a product or service from beginning to
    end, and draw a visual representation of every
    process in the material information flow
  • Then, draw (using icons) a future state map of
    how value should flow

10
(No Transcript)
11
Levels of a Value Stream
Start Here
12
Value Stream Managers
Customer
Kaizen
The Value Stream Manager
13
Using the Value Stream Mapping Tool
Product/Service Family
Understanding how things currently operate. Our
Baseline!
current state drawing
future state drawing
Designing a lean flow. Our vision!
plan and implementation
The Goal of Mapping
14
Current State Mapping
  • Completed in a day
  • Performed by a cross functional team of middle
    managers responsible for implementing new ideas
  • Resulting in a picture (and team observations) of
    what we see when following the product

15
Future State Mapping
  • Completed in a day with the same team
  • Focused on
  • Creating a flexible, reactive system that quickly
    adapts to changing customer needs
  • Eliminating waste
  • Creating flow
  • Producing on demand

16
Current State Value Stream Map
17
Future State Value Stream Map
18
Planning and Implementing
  • Dont Wait!
  • You need a plan!
  • Tie it to your business objectives
  • Make a VS Plan What to do by when
  • Establish an appropriate review frequency
  • Conduct VS Reviews walking the flow

19
Remember the other two value streams?
  • Administrative activities are often a major
    percentage of the total throughput time
  • Goal 400 improvement in productivity over 10
    years
  • Modest opportunities on the plant floor
    Untapped opportunities off the plant floor

20
Enterprise Perspective
  • Engineer to Order
  • Configure to Order
  • Capital equipment manufacturers
  • Small companies (lt500 employees)
  • Service Firms

21
We might begin in
  • Processes directly impacting the part production
  • Engineering
  • Quoting
  • Or, in value streams with direct customer contact
  • Order entry
  • Invoicing

22
Value Stream Mapping
  • Helps you visualize more than the single process
    level
  • Links the material and information flows
  • Provides a common language
  • Provides a blueprint for implementation
  • More useful than quantitative tools
  • Ties together lean concepts and techniques

23
Value Stream Management
  • The map is just a picture of ideas!
  • The fundamental change is in how we choose to
    manage the value stream as an integrated system
    of decisions and tasks

24
Value Stream Management
  • Use your strategic plan as a guide
  • Find the gaps in necessary performance
  • Improve value streams to meet the performance
  • Create new metrics to support new ways of
    thinking and acting
  • Understand true product family costs
  • Manage operations by the value stream data
  • Always have a future state

25
Critical Success Factors
  • Management must understand, embrace, and lead the
    organization into lean thinking
  • Value stream managers must be empowered and
    enabled to manage implementations
  • Improvements must be planned in detail with the
    cross functional Kaizen teams
  • Successes must be translated to the bottom line
    and/or market share

26
Putting it to Work!
  • Continuously improving fundamentally flawed
    processes will yield limited results.
  • Simply automating existing manual processes can
    also yield limited results.
  • Seriously challenging old practices will provide
    the dramatic results desired.
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