Arlie House October 6, 2006 NCMA Awards & Honors Value Stream Blitz NCMA Value Stream Blitz Making...

NCMA Awards & Honors Value Stream Blitz Arlie HouseOctober 6, 2006

NCMA Value Stream Blitz

Making NCMA “profitable” to Our Customers

NCMA Awards & Honors Committee Arlie HouseOctober 6, 2006

Value Proposition: Members

• NCMA provides the tools, resources, and leadership opportunities to enhance each member of the profession’s performance, career, and accomplishments.

From: Neal Couture’s briefing:NCMA 5th Annual Leadership SummitLearn How to Build and Manage a Successful ChapterJune 23-24, 2006Cincinnati, OH


Value Proposition: Chapters

• NCMA provides the structure, name recognition, and products to facilitate chapters aligned with the focus of local contracts professionals.



Value Proposition: Organizations

• NCMA provides employers ready-access to skilled human capital, learning resources, best practices, standards, and metrics of the profession.


value stream.ppt© 2000, Raytheon Company. All Rights Reserved.Subject to all applicable agreements.Revised: August, 00

e-Coach

DescriptionA value stream is the series of processes that deliver value to the customer, from the external paying customer’s perspective. It is what is delivered to the paying customer, not the internal customer. In other words, which processes does the external customer really care about? If the customer doesn’t care how we do a particular process, then it isn’t in the value stream.

We must understand what the value stream is for every product or service that we deliver to external paying customers. That is one of the 1st steps in gaining market share, increasing profits, & developing a reputation as the contractor of choice among our customers.

When to Use ToolTo gain an understanding of what process are value-added and what processes are non-value-added.

Value Stream Analysis


e-Coach A Value Stream

DefineDefineValueValue

PropositionProposition

DesignDesignValueValue

Package &Package &DeliveryDeliverySystemSystem

Cust

om

er

Valu

e

DeliverDeliverValueValue

PackagePackage

FashionFashionMaterials &Materials &InformationInformation

ProvideProvideMaterials &Materials &InformationInformation

Example


e-Coach

Product/Service FlowProduct/Service FlowProduct/Service FlowProduct/Service Flow

Information FlowInformation FlowInformation FlowInformation Flow

A Value Stream





Cust

om

er

Valu

e


PackagePackage



The product or service that you are delivering to the external paying customer flows from left to right, as shown with this bottom, left-to-right arrow. Information flows from the customer back to us, as shown with this top, right-to-left arrow.

Feedback from Chapters, members, employers

Where we spend our resources


e-Coach

A Value Stream





Cust

om

er

Valu

e


PackagePackage





These diagonal arrows that go from the “information flow” down and to the right to

the “product/service flow” represent the processes that support the value stream.


e-Coach

The people who are outside of the value stream need to focus their energies into finding the very best best ways to support the value stream. Remember, the value stream is defined for the external paying customer. If the support processes focus on their internal customer first, and not on the business’ external paying customer, sub-

optimization is likely to occur.

This means we focus on what we need to deliver to Chapter, members, and employers. Extraneous matters are outside the value stream.


Summary of Services

• Brainstorming exercise


NCMA’s Value PropositionsDoes NCMA provide Value?

Members

Chapters

Organizations


A Value Stream



UnderstandUnderstandCustomerCustomerRequire-Require-

mentsments

DesignDesignRadarRadar

Rad

arShipShip

RadarRadarwithwith

InstructionInstructionManualsManuals

AssembleAssembleRadarRadarandand

InstructionInstructionManualsManuals

ObtainObtainPartsParts

If our external customer is buying a radar from us, this is an example of what the value stream for that product might look like. (briefly explain.)


A Value Stream



UnderstandUnderstandCustomerCustomerRequire-Require-

mentsments

GetGetQualifiedQualified

RepairRepairPeoplePeople

Main

tain

Syst

em

DispatchDispatchRepairRepairPeoplePeople

DevelopDevelopRepairRepair

ManualsManuals

Order/Order/StockStockPartsParts

If our external customer is buying maintenance and repair of a system from us, this is what the

value stream might look like.




A Value Stream

If our members expect value from NCMA, what should this look like?

If our Chapters expect value from NCMA, what should this look like?

If our organizations expect value from NCMA, what should this look like?

Understand Understand Members Members

Expectations & Expectations & NeedsNeeds

Create Create /improve /improve products s to products s to Meet the Meet the NeedNeed

Aw

ard

Hon

ors

TBDTBDTBDTBDTBDTBD


e-Coach

Customer Value

OutputsInputs

Price

Quality

Outlets/Delivery Medium

Customer/Interface

Price

Performance

Reliability

Features

Attributes

Delivery

Service

Expectations (Market Place) Value Proposition

ValueDeliveryProcess



Member ValueExercise (post its)

OutputsInputs





Organization ValueExercise (post its)

OutputsInputs





Chapters ValueExercise (post its)

OutputsInputs





e-Coach

©1999 Tom Conellan - All Rights Reserved

Conellan Loyalty Grid

Ou

tcom

e

Process

Dissatisfied Satisfied Dazzled

Exp

ecta

tion

sno

t m

etE

xpec

tati

ons

Met

Val

ueA

dded

Value BasedCompetition

Price BasedCompetition

AdvocatesLoyal CustomersAt Risk

Actively SearchingGone

A way of thinking about where your customers are sitting


Exercise use post its – Customers (CM Professionals)

WHO, WHERE, WHAT, HOW

COTRs

ACOs

PCOs

Buyers

Entry Level, Executive,

IPTs

Complete & then Group


Exercise use post its – Organizations




Exercise use post its – Chapters




Why did we do this? It’s the Blitz!!!Tie all the customers to the inputs. Where is the biggest NCMA opportunity?

What type of strategies, products do we modify, add?Assign SMEs to projects & “peer review”. 14 days to author, 10 days for peer review.

• Purpose• Scope• Evaluation Criteria

Start with what we have. Keep it simple! Schedule follow up and see how we’re doing

Early November????

December Board Meeting???

December to April. ??????

April Board Meeting ?????


value stream.pptvalue stream.ppt

Resources:

Rother, Mike and John Shook. Learning to See: value stream mapping to add value and eliminate muda.

www.lean.org

value stream.pptvalue stream.ppt

Customer ValueCustomer ValueIm

po

rtan

ce

PerformanceHighLow

High

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