Presented by: Beau Keyte, LEI Faculty APICS Greater Jacksonville Seminar December 5, 2002 Value...
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Transcript of Presented by: Beau Keyte, LEI Faculty APICS Greater Jacksonville Seminar December 5, 2002 Value...
Presented by:
Beau Keyte, LEI Faculty
APICS Greater Jacksonville SeminarDecember 5, 2002
Value Stream Mapping and Management
Agenda
1. How We Got Here
2. Value Stream Mapping
3. Value Stream Management
The lean transformation should provide:
Growth with improved margins
Growth with minimal capital
Growth without more employees
What are our main stumbling blocks?75 years of bad habits
Financial focus with limited cost understanding
A lack of system thinking and incentives
Metrics supporting a 75 year old model
Limited customer focus
Absence of effective operating strategies
How have we elected to address these stumbling blocks?
Programs of the month (band aids)
Meetings, meetings, meetings, meetings
Silo optimization
What’s the impact of “silo” improvements?
“Plant to plant” key players
Purchasing Transportation
Material Control
Slide courtesy of HLS, Inc.
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
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 - ManufacturingConcept to Launch - EngineeringOrder to Cash - Administrative Functions
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.
Value Stream Improvement vs. Process ImprovementValue Stream Improvement vs. Process Improvement
RawMaterial
Finished Product
Stamping
Process
Welding
Process
AssemblyCell
ProcessCustomer
Value Stream
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.
Value Stream Map
Levels of a Value Stream
process level
single plant(door to door)
multiple plants
across companies
Start Here
Value Stream ManagersEach Value Stream needs a Value Stream Manager
The conductor of implementation:
•Focused on system wins
•Reports to the top dog
Process 1 Process 2 Process 3
“Customer”
The ValueStream Manager
Kaizen
Using the Value Stream Mapping Tool
Understanding how things currently operate. Our Baseline!
Product/Service “Family”
plan and implementation
Designing a lean flow. Our Vision!
current state drawing
future state drawing
The goal of mapping!
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
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
Current State Value Stream Map
Future State Value Stream Map
Don’t 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.
Planning and Implementing
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
Enterprise PerspectiveEngineer to Order
Configure to Order
Capital equipment manufacturers
Small companies (<500 employees)
Service Firms
We might begin in…Processes directly impacting the part production
• Engineering
• Quoting
Or, in value streams with direct customer contact
• Order entry
• Invoicing
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
Value Stream Mapping
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.
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
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
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.
Putting it to Work!Putting it to Work!