VSM 01 08 2014

Value Stream Transformation:
Achieving Excellence through Leadership Alignment

and Holistic Design
CONNECT
January 8, 2014
Why Value Stream Mapping?

Why Now?
2014 The Karen Martin Group, Inc.
To order from Amazon: www.bitly.com/VSMbk

For more information: www.ksmartin.com/VSM
Value Stream Mappings Roots
Value
Value Stream
Flow
Pull
Perfection
1996
Value Stream Defined

Value Stream: All of the activities required to
transform a customer request into a good or service.
Process
Customer
Request
Process
Process
Customer
Receipt
First defined in The Machine That Changed the World,
James Womack, Daniel Jones, & Daniel Roos, 1990.
Silo-Centric vs. Value Stream Thinking

Function
Function
Function
Function
Support Value Stream

Value stream
segment
Core Value Stream
Value stream
segment
Support Value Stream
Value Stream Mappings Roots
Mike Rother & John Shook

1999
Beau Keyte & Drew Locher

2004
Whenever there is a product for a customer,

there is a value stream.
The challenge lies in seeing it.
Mike Rother & John Shook, Learning to See
Value Stream Mapping: Common Failings
Using the mapping process solely as a work design exercise

Using the map to make tactical improvements
Creating maps but taking no action
Mapping with an inappropriate teamor no team at all
Creating value stream maps during a kaizen event
Creating maps with no metrics
Mapping without a team charter or not socializing it
Value Stream Thinking: Strategy Before Tactics

Where am I?
Where do I want
to go?
Which route
should I take?
I-80 option
?
?
I-40 option
I-70 option
Value Stream Mapping Benefit:

Reaching Leadership Consensus
Value Stream Mapping enables a

mapping team to get ABOVE the work
10
VSM Promotes Systems Thinking
Individual Efficiency = Sub-optimization
System Efficiency = Optimal Value Stream Performance

11
Work: Degrees of Granularity

Macro
Perspective
Value
Stream
Define strategic
direction (what)
Heavy leadership
involvement
Value Stream
Mapping
Process
Process
Micro
Perspective
Process
Step
Step
Step
Identify the
tactical how
Heavy frontline
involvement
Metrics-Based
Process Mapping
12
Work: Degrees of Granularity

Order Fulfillment Value Stream
Order
Fulfillment
Strategic
Value-stream
Perspective
Quote
Tactical
Process-level
Perspective
Design
Produce
Fabricate
Assemble
Ship
13
Value Stream Mapping:

Visualize your Entire Operation on a Single Sheet of Paper
14
Basic Value Stream Map:

3 Sections
ABC Technology, Inc.
Current State Value Stream Map
Name of Value Stream Being Mapped
Demand Rate = XX / Year
Name of Value Stream Champion
Mapping Date
Customer
1
Information
Flow
IT-1
2
Work
Flow
1 items
3
Timeline
IT-2
Process 1
Process 2
Process 3
Process 4
Process 5
Function A
Function B
Function C
Function D
Function E
11
LT = 1 days
PT = 10 mins.
%C&A = 50%
LT = 0.5 days
PT = 5 mins.
%C&A = 75%
480mins.
240mins.
10mins.
5mins.
45 items
3
LT = 5 days
PT = 120 mins.
%C&A = 85%
10 items
LT = 2 days
PT = 30 mins.
%C&A = 99%
LT = 1 days
PT = 15 mins.
%C&A = 95%
5days
2days
480mins.
120mins.
30mins.
15mins.
Total LT = 9.5 days

Total PT = 180 mins.
Activ ity Ratio = 3.9%
Rolled %C&A = 30.0%
15
Basic Value Stream Map:

Future State
ABC Technology, Inc.
Future State Value Stream Map
Name of Value Stream Being Mapped
Demand Rate = XX / Year
Name of Value Stream Champion
Mapping Date
Customer
IT interface
Standard
work
Error
proof
IT-1
Crosstrain
Process 2
Function A
5
Standard
work
Process 3
Function C
5 items
LT = 1 days
PT = 10 mins.
%C&A = 99%
Crosstrain
Modified
approvals
Process 1
1 items
IT-2
Function E
10 items
3
LT = 2 days
PT = 120 mins.
%C&A = 95%
4
LT = 0.5 days
PT = 30 mins.
%C&A = 95%
1days
2days
0.5days
Total LT = 3.5 days
10mins.
120mins.
30mins.
Total PT = 160 mins.

Activity Ratio = 9.5%
Rolled %C&A = 89.3%
16
Basic Value Stream

Future State Performance Metrics
Current State
Projected
Future State
Projected
% Improvement
9.5 days
3.5 days
63.2%
180 minutes
160 minutes
11.1%
Activity Ratio
3.9%
9.5%
143.6%
Rolled % Complete &

Accurate
30.0%
89.3%
197.7%
Metric
Total Lead Time
Total Process Time
User defined
User defined
17
Value Stream
Mapping
Executing
Transformation
Plan
Making
Specific
Improvements
18
Value Stream Mapping Activity

Phases and Timing
Repeat
Prepare
4 Weeks Prior
to Mapping
Understand
Current State
Design
Future State
Develop
Transformation
Plan
Three Consecutive Days
Execute
Transformation
Plan
Following
Mapping
19
Charter: Critical planning, communication, and consensus-building tool

Value Stream Mapping Charter
Scope
Accountable Parties
Logistics
Executive
Allen Ward
Sponsor
Value Stream Capital equipment

Specific Engineer to order, requires both hardware &
Conditions software customization
Event Dates July 24-26, 2013

& Times 8:00 am - 5:00 pm
Value Stream
Nancy Little
Champion
Demand Rate 1,000 per year
Base-camp
Surf's Up - Room A
Location
Facilitator Dave Parks
Trigger Customer submits RFQ

First Step Sales reviews the RFQ
Logistics
Dave Parks
Coordinator
Last Step Production ships product

Boundaries & No new software; only minor changes to existing IT
Limitations systems; no additional staff; no budget changes
Briefing
Attendees
** required
*optional
Improvement Time Future state design is fully realized by

Frame December 31, 2013.
Meals
Continential breakfast & lunch
Provided
** Allen W (COO), Joe M (CIO),

Sal T (VP Sales)
* Bruce R (VP Ops), Carlos P
(HR), Su T (CFO), Bill M (VP CS)
Current State Problems & Business Needs
Mapping Team
1 Desire to stay ahead of the competition & deepen customer loyalty.
Function / Title
Name
2 Forecasted growth of 15% for next fiscal year.
1 Sales, Director
Sean Michaels
3 Unclear & incorrect information flowing through value stream.
2 IT, Director
Diana Marie
4 Lead time for RFQ turnaround = 2 weeks; PO to software dev = 5 weeks
3 Finance, Controller
Dave Gerald
5 (Competition's RFQ LT is 1 wk and PO to delivery is 4 wks)
4 Scrum Master
Ryan Austin
5 Engineering, Vice President
Nancy Little
1 Reduce RFQ lead time by a minimum of 50%.
6 Manufacturing, Director
Ambreen Motiwala
2 Reduce PO to software development lead time by a minimum of 50%.
7 Customer Service, Manager
Danny Tran
3 Improve quality of information flowing throughout value stream.
8 Customer (contract manufacturer)
JR Hunt
Goals & Measurable Target Conditions
Briefing
July 24, 25, & 26
Dates &
4:00-5:00 pm
Times
Contact Information
10
Benefits to Customers & Business
On-Call Support
1 Faster delivery; less hassle; less cost.
Function
Name
2 Better working relationships between sales, estimating & engineering.
1 Planning / Purchasing, Planner Lourdes Dwyer
3 Freed capacity to absorb additional business w/o increasing staff.
2 Production Supervisor
Contact Information
Tom St. James
Relevant Data
Agreement
1 Sales effectiveness: RFQ conversion rate.
Executive Sponsor
Value Stream Champion
Facilitator
2 Financial: Estimate-to-actual cost comparison.

3 Operational: LT in segments (RFQ to quote; PO to development).
Signature:
Signature:
Signature:
Date:
Date:
Date:
20

Scope
Accountable Parties
Logistics
Executive
Allen Ward
Sponsor


& Times 8:00 am - 5:00 pm
Value Stream
Nancy Little
Champion
Base-camp
Surf's Up - Room A
Location

Logistics
Dave Parks
Coordinator

Briefing
Attendees
** required
*optional

Meals
Provided

Sal T (VP Sales)
Mapping Team
Function / Title
Name
1 Sales, Director
Sean Michaels
2 IT, Director
Diana Marie
Dave Gerald
4 Scrum Master
Ryan Austin
Nancy Little
Ambreen Motiwala
Danny Tran
JR Hunt
Briefing
July 24, 25, & 26
Dates &
4:00-5:00 pm
Times
Contact Information
10
On-Call Support
Function
Name
Contact Information
Tom St. James
Relevant Data
Agreement
Executive Sponsor
Facilitator

Signature:
Signature:
Signature:
Date:
Date:
Date:
21

Scope
Accountable Parties
Logistics
Executive
Allen Ward
Sponsor


& Times 8:00 am - 5:00 pm
Value Stream
Nancy Little
Champion
Base-camp
Surf's Up - Room A
Location

Logistics
Dave Parks
Coordinator

Briefing
Attendees
** required
*optional

Meals
Provided

Sal T (VP Sales)
Mapping Team
Function / Title
Name
1 Sales, Director
Sean Michaels
2 IT, Director
Diana Marie
Dave Gerald
4 Scrum Master
Ryan Austin
Nancy Little
Ambreen Motiwala
Danny Tran
JR Hunt
Briefing
July 24, 25, & 26
Dates &
4:00-5:00 pm
Times
Contact Information
10
On-Call Support
Function
Name
Contact Information
Tom St. James
Relevant Data
Agreement
Executive Sponsor
Facilitator

Signature:
Signature:
Signature:
Date:
Date:
Date:
22

Scope
Accountable Parties
Logistics
Executive
Allen Ward
Sponsor


& Times 8:00 am - 5:00 pm
Value Stream
Nancy Little
Champion
Base-camp
Surf's Up - Room A
Location

Logistics
Dave Parks
Coordinator

Briefing
Attendees
** required
*optional

Meals
Provided

Sal T (VP Sales)
Mapping Team
Function / Title
Name
1 Sales, Director
Sean Michaels
2 IT, Director
Diana Marie
Dave Gerald
4 Scrum Master
Ryan Austin
Nancy Little
Ambreen Motiwala
Danny Tran
JR Hunt
Briefing
July 24, 25, & 26
Dates &
4:00-5:00 pm
Times
Contact Information
10
On-Call Support
Function
Name
Contact Information
Tom St. James
Relevant Data
Agreement
Executive Sponsor
Facilitator

Signature:
Signature:
Signature:
Date:
Date:
Date:
23
Value Stream Scoping Diagram

Defining Specific Conditions
Catalog
Configure
to order
Custom
hardware
Engineer
to order
Custom
software
New Product
Development
Both
Capital
Equipment
Golden State
Equipment, Inc.
Catalog
Spares &
subassemblies
Engineer to
order
24
Where should the fenceposts be?

Function
Activity
Marketing
Generates sales leads
Sales
Calls on and qualifies customers
Customer
Submits RFQ to sales
Sales
Reviews RFQ
Estimating
Generates quote
Sales
Approve quote
Customer
Accepts quote; submits a PO
Sales
Approves PO
Customer service
Creates SO; compiles spec package
EE/ME design
Designs product; generates BOM
Customer
Approves design
EE/ME design
Forwards design to SW dev
Software Dev
Writes code
Purchasing/Planning
Releases WO; schedules production
Supplier (external)
Delivers materials
Production
Manufactures & ships product
Customer
Installs equipment
Field service
Conducts 90-day follow-up

25
Who should be on the team, serve on-call,

and attend daily briefings?
26

Scope
Accountable Parties
Logistics
Executive
Allen Ward
Sponsor


& Times 8:00 am - 5:00 pm
Value Stream
Nancy Little
Champion
Base-camp
Surf's Up - Room A
Location

Logistics
Dave Parks
Coordinator

Briefing
Attendees
** required
*optional

Meals
Provided

Sal T (VP Sales)
Mapping Team
Function / Title
Name
1 Sales, Director
Sean Michaels
2 IT, Director
Diana Marie
Dave Gerald
4 Scrum Master
Ryan Austin
Nancy Little
Ambreen Motiwala
Danny Tran
JR Hunt
Briefing
July 24, 25, & 26
Dates &
4:00-5:00 pm
Times
Contact Information
10
On-Call Support
Function
Name
Contact Information
Tom St. James
Relevant Data
Agreement
Executive Sponsor
Facilitator

Signature:
Signature:
Signature:
Date:
Date:
Date:
27
Create the Current State Map

Prepare
1.
2.
3.
4.
5.
Understand
Current State
Design
Future State
Develop
Transformation
Plan
Execute
Transformation
Plan
Value stream walk #1

Layout the map
Value stream walk #2
Add map details
Add timeline; calculate
summary metrics
28
Effective Way to Visualize Relationships between

IT Systems and the Operation
29
Create the Future State Map

Prepare
Understand
Current State
Design
Future State
Develop
Transformation
Plan
Execute
Transformation
Plan
1. Define the right work

2. Make the right work flow
3. Manage the right work
30
How will you realize the future state?

Prepare
Understand
Current State
Develop
Transformation
Plan
Design
Future State
Execute
Transformation
Plan
Value Stream Transformation Plan

Value Stream
Executive Sponsor
Value Stream Mapping Facilitator
Date Created
FS VSM
Block #
2
Measurable Target
Scheduled Review Dates
Outpatient Imaging
Allen Ward
1-Nov-12
Paul Scanner
21-Nov-12
Dave Parks
13-Dec-12
10/18/2012
10-Jan-13
Proposed Countermeasure
Exec.
Method*
Owner
Planned Timeline for Execution

1
10 11 12
Status
Improve quality of referral to 85%
Implement standard work for referral

process
KE
Sean
Michaels
100%
Reduce lead time between scheduling

and preregistration step to 45 minutes
Cross-train and co-locate work teams
Proj
Dianne
Marie
75%
Only one check in per patient
Collect copays in Imaging
KE
Ryan
Austin
50%
Reduce wait time in waiting area by 50% Balance work / level demand
KE
Dianne
Marie
50%
Eliminate 6 hour lead time associated

with transcription step
Implement voice recognition technology
Proj
Dave
Gerald
50%
Eliminate redundant data entry
Auto populate between PACS and

Meditech
Proj
Dave
Gerald
25%
Visually managed inventory; no outages

or expired items
5S CT supplies area; implement kanban
KE
Michael
O'Shea
100%
Reduce imaging LT to one hour
Value-stream specific radiologists
Proj
Martha
Allen
25%
Reduce report delivery LT to 30 minutes
Increase % of physicians receiving

electronic delivery
Proj
Martha
Allen
0%
Reduce LT at image review to 1 day
Visual metrics and indicators
JDI
Dave
Gerald
100%
3,4
Agreement
Executive Sponsor
Value Stream Mapping Facilitator
Signature:
Signature:
Signature:
Date:
Date:
Date:
* Execution Method = JDI (Just-do-it), KE (Kaizen Event), or Proj (Project)
31
Where the rubber meets the road

Prepare
Understand
Current State
Design
Future State
Develop
Transformation
Plan
Execute
Transformation
Plan
Accountability rests with executive sponsor

Monthly status meetings
Adjust plan as new discoveries are made
32
And then repeat
33

Outpatient Imaging Services
Pre-register
Patient
Customer Demand:
15 patients perDay
(Takt Time 1920seconds)
8 hours per day
Schedule
Appointment
Referring
Physician
Hospital
Lead Time = 24 days
Lead Time = 990 mins.
Cycle Time = 30 mins.

% C&A = 100 %
Demand = 15 per day

% C&A = 98 %
% C&A = 65 %
CT=Cycle Time
LT=Lead Time
%C&A=% Complete & Accurate
Symposium
E Pay
Excel
ADS
Internet
Meditech
Fax Order
Solutions
Waiting Room
Management
System
PACS
Auto Fax 50%

Us Mail 25%
MD Mailbox 25%
Rework Loop
via Fax 25% of
the time
Check-in
Patient
(Admitting)
Prep
Patient
(Tech)
Check-in
Patient
(Imaging)
Complete
Exam
(Tech)
Transmit
Images
(Tech)
Read/Dictate
Exam
(Radiologist)
Transcribe
Report
(MDI)
Review
Draft/Sign
(Radiologist)
Print
Reports
(Imaging)
Send
Reports
(Imaging)
5 mins.
5
5 mins.

% C&A = 90 %
0.0833 hrs.
0.0833 hrs.
2 mins.

% C&A = 98 %
45 mins.
0.75 hrs.
1 mins.
30 mins.

% C&A = 100 %
0.5 hrs.
10 mins.
5 mins.

% C&A = 90 %
0.0833 hrs.
15 mins.
248 mins.

% C&A = 100 %
10
4.13 hrs.
3 mins.
365 mins.

% C&A = 95 %
11
6.08 hrs.
15 mins.
960 mins.

% C&A = 75 %
12
16 hrs.
5 mins.
110 mins.

% C&A = 95 %
1.83 hrs.
1 mins.
13
120 mins.

% C&A = 99 %
2 hrs.
1 mins.
14

% C&A = 90 %
LT = 32.5 hrs.
3 mins.
CT = 56 mins.
CT/LT Ratio = 2.87%
Rolled First Pass
yield = 29%

Outpatient Imaging Services
Standard
Work
Work
Balance
Customer Demand:
15 patients perDay
(Takt Time1920 seconds)
8 hours per day
Co-locate
Schedule appt
Pre-register
Referring
Physician
Hospital
3
Lead Time = 15 days
Demand = 15 per day

% C&A = 98 %
% C&A = 85 %
Risk
Reduction
(Joint
Commision)
Symposium
E Pay
Excel
Internet
Waiting Room
Management
System
Work
Balancing
Standard
Work
35 mins.

% C&A = 98 %
0.0833 hrs.
Complete
Exam
(Tech)
20 mins.

% C&A = 100 %
0.583 hrs.
1 mins.
Transmit
Images
(Tech)
5 mins.

% C&A = 90 %
0.333 hrs.
10 mins.
Visual
Workplace
Set-up
Reduction
Prep
Patient
(Tech)
Check-in
Patient
(Imaging)
Fax Order
Solutions
PACS
Auto Fax 80%

Us Mail 15%
MD Mailbox 5%
5S
Value Stream
Alignment
Pull System
(Supplies
Kanban)
Remove
Check in
and Reduce
System Access
5 mins.
Meditech
CT=Cycle Time
LT=Lead Time
%C&A=% Complete & Accurate
120 mins.
Review
Draft/Sign
(Radiologist)
420 mins.

% C&A = 95 %
2 hrs.
2 mins.
Batch
Reductions
Voice
Recognition
Read/Dictate
Exam
(Radiologist)

% C&A = 100 %
0.0833 hrs.
10 mins.
Continuous
Flow
Print
Reports
(Imaging)
2 mins.

% C&A = 95 %
7 hrs.
15 mins.
Rework Loop
via Fax 10% of
the time
30 mins.

% C&A = 99 %
0.0333 hrs.
1 mins.
10
Send
Reports
(Imaging)
0.5 hrs.
1 mins.
11

% C&A = 90 %
LT = 11.3 hrs.
3 mins.
CT = 43 mins.
CT/LT Ratio = 6.32%
Rolled First Pass
yield = 40%
Outpatient Imaging
Value Stream Improvement Results
Current
State
Improved
State
%
Improvement
LT
32.5 hrs
11.3 hrs
65%
PT
AR
RFPY
# Steps
56 mins
2.9%
29%
14
43 mins*
6.3%
40%
11
23%
117%
38%
21%
100%
25%
75%
Metric
Tech turnover
(annual)
* This reduction (freed capacity) enabled the client to collect $500K more in annual
revenue without incurring additional labor or equipment expenses.

Purchasing Non-repetitive purchases less than $5,000
Supplies Purchasing - Current State VSM
Inititate Req.
Originator
31
PT = 10 mins.
C&A = 10%
Supplies
Hard Copy
Form File
File Maker
Quicken
Vendor
Website
Excel
ERP
Data Entry
Review
Budget
Review Req.
Finance
PT = 5 mins.
C&A = 60%
0.25 days
4 hrs.
PT = 5 mins.
C&A = 95%
0.5 days
5 mins.
20 Reqs
Review
Requisition
Review
5
Requisition
PT = 5 mins.
C&A = 90%
8 hrs.
PT = 5 mins.
C&A = 100%
1 days
5 mins.
10 Reqs
PT = 10 mins.
C&A = 95%
4 hrs.
PT = 15 mins.
C&A = 98%
0.5 days
10 mins.
Approve in
ERP
24 hrs.
PT = 5 mins.
C&A = 90%
3 days
15 mins.
Submit PO
to Supplier
8
63 Reqs
10
External
Supplier
Corp Purchasing
Manager
1
Admin Asst
Financial Mgr
1
8 hrs.
1 days
5 mins.
Enter
Requisition
Review
6
Requisition
IS Manager
1
1
40 hrs.
5 days
5 mins.
Sys Engineer
Supervisor
2
6
2 hrs.
Corp Purchasing
6
56 hrs.
PT = 15 mins.
C&A = 98%
7 days
5 mins.
80 hrs.
PT = 20 mins.
10 days
15 mins.
LT = 28.4 days
PT = 65 mins.
AR = 0.477%
RFPY = 4.2%
Customer Demand:
615 requisitions per y ear
PT = Process Time
LT = Lead Time
C&A = % Complete & Accurate
AR = Activ ity Ratio (PT/LT x 100)
RFPY = Rolled First Pass Y ield

Purchasing Non-repetitive purchases less than $5,000
Supplies Purchasing - Future State VSM
Additional
IT access
Enter Req.
in ERP
Integrate Form
File with File
Maker
Originator
31
PT=30 mins.
C&A = 85%
Supplies
Requisition
Checklist
Vendor
Websites
File Maker
Cross
Training
Approval
Additional
IT access
6 hrs.
0.75 days
5 mins.
Place
Order
5
External
Supplier
PT=20 mins.
80 hrs.
PT=20 mins.
C&A = 98%
1 days
5 mins.
Dedicated
Buyers
Corp Purchasing
8 hrs.
PT=5 mins.
C&A = 90%
PT=5 mins.
C&A = 95%
0.5 days
Approve
in ERP
Dept.
Manager
1
Supervisor
4 hrs.
Use budget in place

of Quicken
Auto Notify
Standard
Work for
review
Review
Req.
ERP
10 days
20 mins.
LT = 12.3 days
PT = 30 mins.
AR = 0.508%
Customer Demand:
615 requistions per year
PT = Process T ime
LT = Lead T ime
C&A = % Complete & Accurate
AR = Activity Ratio (PT /LT x 100)
RFPY = Rolled First Pass Yield
RFPY = 71%
Purchasing Process
Projected Results
Current
State
Projected
Future State
%
Improvement
28.4 days
12.3 days
56.7%
65 mins
30 mins
53.8%
Activity Ratio
0.48%
0.51%
6.3%
Rolled %C&A
4.2%
71.0%
1,590%
# Handoffs
10
50%
# IT Systems
50%
Metric
Total Lead Time

Total Process Time
%C&A = Correct & accurate (Quality)
Value Stream Mapping:

As Much Art as Science
40
Available Now!
To order from Amazon: www.bitly.com/VSMbk

For more information: www.ksmartin.com/VSM
41
For Further Questions

Karen Martin, President
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
Blog & newsletter: www.ksmartin.com/subscribe
42

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Value Stream Transformation:

Achieving Excellence through Leadership Alignment

Why Value Stream Mapping?

2014 The Karen Martin Group, Inc.

To order from Amazon: www.bitly.com/VSMbk

Value Stream Mappings Roots

2014 The Karen Martin Group, Inc.

Value Stream Defined

2014 The Karen Martin Group, Inc.

Silo-Centric vs. Value Stream Thinking

Support Value Stream

Core Value Stream

Support Value Stream

2014 The Karen Martin Group, Inc.

Value Stream Mappings Roots

Mike Rother & John Shook

Beau Keyte & Drew Locher

Whenever there is a product for a customer,

Mike Rother & John Shook, Learning to See

Value Stream Mapping: Common Failings

Using the mapping process solely as a work design exercise

2014 The Karen Martin Group, Inc.

Value Stream Thinking: Strategy Before Tactics

2014 The Karen Martin Group, Inc.

Value Stream Mapping Benefit:

2014 The Karen Martin Group, Inc.

Value Stream Mapping enables a

VSM Promotes Systems Thinking

Individual Efficiency = Sub-optimization

System Efficiency = Optimal Value Stream Performance

Work: Degrees of Granularity

2014 The Karen Martin Group, Inc.

Work: Degrees of Granularity

2014 The Karen Martin Group, Inc.

Value Stream Mapping:

2014 The Karen Martin Group, Inc.

Basic Value Stream Map:

Total LT = 9.5 days

2014 The Karen Martin Group, Inc.

Basic Value Stream Map:

2014 The Karen Martin Group, Inc.

Total LT = 3.5 days

Total PT = 160 mins.

Basic Value Stream

Rolled % Complete &

2014 The Karen Martin Group, Inc.

Value Stream Mapping Activity

2014 The Karen Martin Group, Inc.

Three Consecutive Days

Charter: Critical planning, communication, and consensus-building tool

Value Stream Capital equipment

Event Dates July 24-26, 2013

Demand Rate 1,000 per year

Facilitator Dave Parks

Trigger Customer submits RFQ

Last Step Production ships product

Improvement Time Future state design is fully realized by

** Allen W (COO), Joe M (CIO),

Current State Problems & Business Needs

1 Desire to stay ahead of the competition & deepen customer loyalty.

2 Forecasted growth of 15% for next fiscal year.

3 Unclear & incorrect information flowing through value stream.

4 Lead time for RFQ turnaround = 2 weeks; PO to software dev = 5 weeks