VSM Awarded Shingo Research & Publication Award!
© 2015 The Karen Martin Group, Inc. 3
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Strategy Deployment
Value Stream Transformation
Individual Improvements
VSM Transformation: 10 Key Success Factors
1. Tie value stream transformation to a larger organizational strategy.
© 2015 The Karen Martin Group, Inc. 6
© 2015 The Karen Martin Group, Inc. 7
1. Create a Strategy
2. Define True North Metrics
3. Prioritize Problems & Opportunities
4. Transform Value Streams As Needed
Gain Alignment and Focus
VSM Transformation: 10 Key Success Factors
2. Must be leadership driven.
© 2015 The Karen Martin Group, Inc. 8
VSM Transformation: 10 Key Success Factors
3. Must be at the right level: Macro.
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Work: Degrees of Granularity
Value Stream
Process Process Process
Step Step Step
11
Macro Perspective
• Define strategic direction (“what”)
• Heavy leadership involvement
• Value Stream Mapping
Micro Perspective
• Identify the tactical “how”
• Heavy frontline involvement
• Metrics-Based Process Mapping
VSM Transformation: 10 Key Success Factors
4. Scope narrowly.
© 2015 The Karen Martin Group, Inc. 14
Value Stream Scoping Diagram Defining Specific Conditions
Golden State Equipment, Inc.
Capital Equipment
Catalog
Configure to order
Engineer to order
Custom hardware
Custom software
Both New Product Development
Spares & subassemblies
Catalog
Engineer to order
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VSM Transformation: 10 Key Success Factors
5. Team composition & size: • Leaders with strategic authority • No more than 10 • Highly cross-functional.
© 2015 The Karen Martin Group, Inc. 16
Sample Mapping Teams
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123456789
10
Function NameHospitalist Physician
ED Physician PhysicianMedical Group Corporate Director
Nursing DirectorPharmacy & Ancillary Assistant Vice President
Case Management & Quality Assistant Vice PresidentRehab Assistant Vice President
Admitting, Bed Control, UR ManagerEVS Assistant Vice PresidentNursing Chief Nursing Officer
123456789
10 Order management Director
Logistics Vice PresidentIS Vice President
Tech support Chief Operating Officer
Sales DirectorImplementation Director
Legal Vice PresidentStrategic operations Vice President
Client services Vice President
Function NameAccounting, order mgmt Director
VSM Transformation: 10 Key Success Factors
6. Sequester the team for three consecutive days.
© 2015 The Karen Martin Group, Inc. 18
Prepare Understand Current State
Design Future State
Develop Transformation
Plan
Execute Transformation
Plan
Three Consecutive Days 4 Weeks Prior to Mapping
Following Mapping
Repeat
Value Stream Mapping Activity Phases and Timing
19
VSM Transformation: 10 Key Success Factors
7. Hold daily briefings with leaders in all affected areas.
© 2015 The Karen Martin Group, Inc. 21
VSM Transformation: 10 Key Success Factors
8. Use a highly skilled facilitator.
© 2015 The Karen Martin Group, Inc. 23
VSM Facilitator: Key Skills & Traits
• Objective; No skin in the game. • Able to sense posturing and draw out objections from
senior leaders. • Able to challenge senior leader mindsets and paradigms. • Highly skilled in measurement, data collection, analysis. • Highly skilled in time and people management. • Significant experience with performance measurement
and a wide variety of countermeasures.
© 2015 The Karen Martin Group, Inc. 25
VSM Transformation: 10 Key Success Factors
9. Future State: Think BIG!
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Sample Future State Decisions
• Replace sales commissions with annual profit sharing. • Insource an outsourced activity. • Merge two departments. • Shift work from one department to another. • Eliminate a department (with staff redeployment to other areas). • Build the means for customers to order online. • Develop, test, and roll out multi-disciplinary bedside rounding. • Double financial levels of authority.
© 2015 The Karen Martin Group, Inc. 27
VSM Transformation: 10 Key Success Factors
10. Transformation Plan needs to be tightly managed.
© 2015 The Karen Martin Group, Inc. 28
J F M A M J J A S O N D
1 PROJ Steve 0%
2 PROJ Steve 100%
3 KE Bruce 50%
4 KE Bruce 50%
5 PROJ Jessie 100%
6 PROJ Sally 100%
7 KE Jessie 0%
8 PROJ Mike 100%
9 JDI Jessie 50%
10 PROJ Steve 80%
11 PROJ Steve 10%
12 PROJ Bob 0%
13 JDI Jessie 100%
14 PROJ Marcia 25%
15 PROJ Tom 30%
16 KE Marcia 50%
17 PROJ Sally 50%
Value Stream Champion Sally BrooksValue Stream Mapping Facilitator Karen Martin
Value Stream Transformation PlanValue Stream Product Y Scheduled Review Dates
Executive Sponsor Jim McMahon 2/10 + bi-weekly Thu 10 am
Socialize new criteria for engineering, quality, & purchasing involvement.
Date Created 1/5/2014Kaizen Burst # Improvement Objective / Hypothesis Proposed Countermeasure Exec.
Method * OwnerPlanned Timeline for Execution
Status
Create procedure/train GS service engineers to properly feedback suggestions to engineering.
Create bulletin re: standardized headplate design to eliminate flange orientation.
Create visual "milestone" timeline to educate customers.
Define technical info needed from customer and when.
Signature: Signature: Signature:
Revise standard Ts & Cs to incorporate time limit for customer approval for f inal payment.
Error proof P.O. info (correct specs, ship to, etc.); notify customer re missing info and drop dead date.
Create criteria for LOI acceptance.
Add initial project release in SF.
Resocialize existing customer-requested CO procedure.
One piece engineering flow
Agreement
Executive Sponsor Value Stream Champion Value Stream Mapping Facilitator
* Execution Method = JDI (Just-do-it), KE (Kaizen Event), or Proj (Project)
Move to one release (pump & systems)
Date: Date: Date:
Create commodity management team & supplier SLAs.
Standardize WPS/PQR from suppliers.
Revise proposal template to limit time to 4 revisions.
Create pull signal for invoicing.
Create trigger to release (BOMs) for purchase.
Conf
iden
tial C
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VSM Transformation: 10 Key Success Factors
1. Tie to a larger organizational strategy. 2. Leadership driven. 3. Macro level (via value stream mapping). 4. Scope narrowly (one product family or set of conditions). 5. Team composition & size: leaders, no more than 10, highly cross-functional. 6. Sequester the team for 3 consecutive days. 7. Hold daily briefings with full leadership team. 8. Use a highly skilled facilitator. 9. Future state: think big! 10. Transformation plan needs to be tightly managed.
© 2015 The Karen Martin Group, Inc. 30
Your Questions
• I’d like to see VSM applied to construction, oil and gas, architecture, education….
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Karen Martin, President @karenmartinopex
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