Value
Stream Mapping (VSM) takes a 50,000-foot view of the business – from order
creation to delivery – with the hopes of potential returns of up to 10 times
the investment. It taps key resources, discusses the business in ways not
previously considered, puts flow of information and materials into a visual
format, and designs an outlined transformation plan needed to achieve improved
performance.
The
previous blog in this two-part series examined the first two of four distinct
phases of the VSM process. It reviewed how Assessing and Planning help
understand industry specific issues and the customer-specific value stream; and
how a Go-No-Go meeting with decision makers determines if sufficient value will
be gained from a VSM engagement.
Assuming
such value exists, the next step is to…
Execute
the Event. This two- to three-day collaborative event between the VSM
facilitator, business experts, and key customer stakeholders starts with the
creation of what some call the “as is” process, or the Current State Map. This
map outlines the business processes the company’s product/service goes through
in order to create the desired output to their customers. It follows the
processes from order creation to order delivery. Once the map is created, the
team goes through a brainstorming exercise (preferably a silent brainstorm
using sticky notes) to identify opportunities for improvement to remove waste
from the value stream. Ideas are placed on the map next to the process which
the idea seeks to address. Then all are discussed, clarified, de-duplicated, and
categorized into themes. Those themes are then classified into three types of
improvement actions (Just-Do-Its, Kaizens, and Projects). Next, those
improvement actions are prioritized and ranked through a 9 Block exercise. Once
the exercise is complete, the improvement actions are entered into the Lean
Transformation Plan document. This document is used to track and monitor the
progress of the identified prioritized actions.
Follow-Up.
This process seeks to collect additional data as needed to increase confidence
on solution set and value proposition, monitor savings, and – ultimately – to
celebrate success. At the end of the process, the customer will have a digital
version of the Current State Value Stream Map itself, a LEAN Transformation
Plan in the form of an Excel document, and an understanding of how the VSM and
the transformation plan will drive value across the organization. If the LEAN
methodology is enacted, process improvements and productivity increases will
lead to value stream cost reductions. With those cost gains, the organization
can allocate resources to other vital areas of the business. A VSM event is not
a one-off activity. Once the VSM has been completed, follow-up meetings are
conducted on a monthly basis to review progress toward completion of the
identified improvement actions on the LEAN Transformation Plan.
A
few additional points to consider:
The
application of VSM starts with leadership, which must be committed to making
the changes identified by the VSM team. From identifying owners of each action
and holding them and one another accountable for the transformation plan
implementation, to investing in training and engaging their people, VSM is only
as effective as the people implementing it.
As
companies struggle to cut costs and drive process improvement, VSM can deliver
real rewards. Value Stream Mapping can be a sophisticated exercise. But it’s
important to use the tool to help identify how to get better; don’t let the
tool use you by focusing on how to create the best looking map. The most
effective Value Stream Mapping sessions result in tangible impact to the bottom
line. In fact, most teams only look at the actual map one time and spend their
energy on the implementation of the LEAN Transformation Plan. That is what many
would consider a successful VSM effort.
Source:http://blog.ryder.com/2015/08/value-stream-mapping-path-to-logistics-savings-part-2/