Measuring Customers Expectations to Outcomes with a Value Stream Map

As you may already know there are fundamentally five (5) key steps in the Lean transformation of a process. These are traditionally uniform across many Lean experts with only minor tactical variations resulting from customization in unique product or service delivery. These include:

Lead Execution Roadmap
1. Specify value
2. Identify the value stream
3. Establish flow
4. Pull from the Customer
5. Continuously improve to perfection

While all steps are critical to the Lean solution, I believe that the Value Stream identification has a profound impact on the understanding the current state and defining the future state. Simply put the Value Stream Map (VSM) makes the process real by its visual construction.

Through the VSM the following is achieved:

• All process or service actions, both value-creating and wasteful actions are mapped;
• Fundamentally, it is a focused end-to-end view of the process, showing what is upstream to the process and what is downstream to the process;
• As such, the VSM is a closed loop of the Customer demand and the associated response by the business process to meet the demand…good (value added) and bad (non-value added);
• The VSM highlights key performance metrics (volumes, FTE’s, throughputs), delays and even Quality metrics…anything that provides a numeric perspective of how the process executes;
• Ancillary information is also shared, such as market share, demand streams, process breaks, etc…

The development of a real and an effective VSM takes practice, but with a little help most process owners can visually map key elements of their day-in day-out process as the first step. I would recommend that those truly interested in improving not only their understanding of a process chart a VSM on paper. To develop robust VSM’s, read the working text by Mike Rother & John Shook titled “Learning to See”. This is an excellent step by step instruction manual on how to create VSM’s. Here is a sample VSM that pictorially provides a summary of a process:

High Level Process Map Tool…SIPOC

To understand where opportunities exist within a process you need to make the process visual.  There are a number of ways to accomplish this task. You can create and end-to-end Value Stream Map (VSM), a Process Map or a SIPOC.   In subsequent blog posts I will review the components & benefits of the VSM and the standard process map.  For now I would like to share how a SIPOC can be effective in understanding process elements and get you off to a good start in your continuous improvement effort.

 Simply, a SIPOC refers to: Suppliers, Inputs, Process, Outputs and Customers.  These elements break out into the following:

Suppliers – Providers of information, data, materials to the process
Inputs – What specifically is being provided? Reports, eMails, nuts, bolts, applications, etc…
Process – In five (5) to 10 high level steps, summarize how the process flows.  Each flow step must be actionable (start with a verb) and typically does not include decisions but merely task steps*
Outputs – A listing of the outputs that are generated from the process.  These could be reports, data, yes / no decisions, audits, defects, completed applications, etc…
Customers – A listing of who in the end receives the completed product or service.  This could be internal departments, managers, executives, regulatory agencies, real Customers, Members, etc…

 *-Most CI Consultants recommend that to build an effective SIPOC you must start with the Customer. I take a different approach in that you should start in the middle…articulate the process, understand it, map it and then work from left to right (suppliers through the Customer).

 To supplement the value of SIPOC’s I recommend that three additional components be added to the bottom:

Systems – A listing of the systems that interface or are used with the specified process
Triggers – A bullet listing of those things that trigger events for the process to begin or take additional steps.  Not “War and Peace” but quick bullets of what makes the process move or actionable
Volumes / Metrics – Helpful information that provide measures to the process. Daily volumes, number of FTE’ supporting the process, Quality Results & requirements, etc…

 While there a many variations of SIPOC’s the completed product is a single page that can be used in many ways.  It can be a quick training tool, or used for an executive process overview, or as mentioned it can be used as a critical step in mapping out a current state process flow for CI purposes. 

Here is an example of a SIPOC:

Reading Recommendations

Recommended Reads

 Over the years I have read many continuous improvement (CI) texts; some good, bad, complex, and even some entertaining.  To this end I feel compelled to share my list of those continuous improvement texts I found beneficial to my understanding of CI, Lean, LeanSigma, Six Sigma, Production Management, and just general day-to-day business operations.

 While this may not provide immediate success, consider the listings as nuggets of opportunities to at least investigate.  Most of these texts can be purchased on-line in electronic or hard copy form.  Some can possibly be found used at a second hand book store.

 Furthermore, you will note that I have not included a narrative as you can easily Google the title for more information and of course a professional summary and possible reader reviews.   As time warrants I will update this list.  Happy trails…& reading!

 As of June 9, 2011 this is my quick list:

Do the Gemba…It is Amazing What the Eyes Can See

Ever wonder why your focused approach to a production or process problem seems to linger despite your day-in day-out committed efforts?  From changing procedures, deploying new metrics and even adding more staff your leadership just can’t “right the ship”.  Improving capacity, Quality and lowering costs are constant pressures for virtually every business, small and large.  Many savy production managers seem stuck in the mire and muck of wasteful results, however, rest assured there is one proven action that all Leaders should not over look, the “Gemba”.

WikiPedia defines “Gemba (現場, gemba^?) as a Japanese term meaning “the real place.” Japanese detectives call the crime scene gemba, and Japanese TV reporters may refer to themselves as reporting from gemba. In business, gemba refers to the place where value is created; in manufacturing the gemba is the factory floor. It can be any “site” such as a construction site, sales floor or where the service provider interacts directly with the customer.^[1]”

Credible Lean purveyors preach the practice of “Make it Flow and Make to Visible”.  This concept of making it visible is really a challenge to Leaders to find every opportunity to see first hand the process in play.  Through observation of the Team in action, through graphical displays of production charts, processing results, andon signal devices, color coded triggers, binders, baskets, cards, etc… these all make the process visible. 

Key to this is the steadfast practice of having Leaders present on the floor to see where process flaws and opportunities exist.  To send a real message about the value of this practice I challenge clients to force 60 – 70% of their daily Leadership activities to the floor.  This is NOT in their office, in a cubicle, in coaching sessions, or in meetings, but really, really on the floor.  Leaders need to interface with Team members who are experiencing real world process & service demands…Leaders need to be where the rubber meets the road to insure they understand complexities, issues and concerns.  This time will dramatically help identify wasteful practices and quickly improve capacity, Quality and lower costs.

So the next time you go to work challenge yourself and your peers to “Do the Gemba!”…It is Amazing What the Eyes Can See!

Huddle!…Huddle!…Setting Daily Direction through Daily Huddles!

Jumping on to the playing field as fast as they can, High Performing Teams can make profound success in tackling day-to-day challenges by reviewing the play book and the opponent before the ball is hiked.  The following is an example of a summary I penned for a recent client regarding the practice of deploying “Daily Huddles”…

…With a “heads down” approach the Team has been steadfast in not only taking on incoming new daily volume but more importantly reducing the outstanding applications backlog from a to a two day turnaround.  While this achievement required a focused effort, it provided significant rewards and a view of true processing capability.

One of many facets of the Team’s success can be found on the floor of the Team’s ABC Avenue offices.  In the middle of the floor at precisely 8:15am every day, an Associate call out for “Huddle” can be heard.  Unlike herding cats and more similar to a Captain of a high performing team, the designated Associate On Point (AOP) gathers every player together to call out the score from prior day’s efforts and reviews the challenges to be faced.  With only 15 minutes to relay a playbook taken from multiple Associate generated graphs and charts, the next eight to ten hours are laid out by the AOP.  Undoubtedly this Captain has the undivided attention of each member of the Team.  Questions are answered, comments are shared, and strategies are hammered out amongst this forming “Self Directed Team”.  Several proud Coaches insure that the right plays are called and that everyone understands their critical role for today’s success. Once the Coaches confirm how tough today’s adversary really is, they provide continuous feedback from the sideline through the course of the day…

Further directing the Team, the AOP then hands the ball to the Coach who then identifies the “player of the day” by pointing out a significant win or accomplishment from the prior day.  With a proud Associate recognized for a job well done, the AOP then takes the coaches handoff and passes the ball to another Coach who imparts a nugget of transformational thought for the day…a new lesson in the play book of continuous improvement.

No later than 8:30am the AOP moves to send the Team to the line where they will execute the plays towards delivering the goods and services…with the shuffle of feet, the tapping of the keyboards, and the answering of phones  the AOP hikes the ball into play…

Characteristics of an Effective Team

Working with various small & large clients I found that there are ten (10) characteristics that make up “Effective Team”.  Unlike a light switch, these characteristics evolve over time.  They take repeated practice and cycles to insure that each becomes common place within the working unit…Ultimately the goal is for the Team to become a “Self-Directed Team”…

Collectively and / or individually, an Effective Team is:
Focused on the Customer
–Understands WHO the Customer is
–Knows what is “Value Add” to the Customer
–Prioritizes the Customer as #1

Filled with Integrity

–Is candid  with responses

–Shares needs and shortcomings for action

–Acts according to the organization’s mandates of exceeding Customer expectations without jeopardizing personal, Team or organizational reputation

 

Transparent
-Openly shares Team & individual process goals, accomplishments & results
–Prioritizes results based on areas of deficiencies

SELF-DIRECTED
–Is sure of itself, open & honest
–Everyone knows their roles & accepts responsibility for their roles
–Collectively live the Characteristics of an Effective Team
–Requires little supervision and acts based on Customer demand
–Mentors / supports Team Members as needed for success

Driven by Goals
-Targets & measures performance
–Driven by elements of Quality (accuracy & timeliness)
–Is proactive with view of process and servicing the Customer

Values Time
–Recognizes that time is finite
–Maximizes time by identifying & eliminating “time thieves”
–Pushes against non-productive activities
–Maximizes yield with short to the point communications (written, verbal, face-to-face) activities

Resolves Conflict
–Removes personal feelings and acts for the Customer
–Is not diverted or slowed to actions due to issues

Actively Engaged
–Is action oriented towards Team’s success for the Customer
–Avoids being an unheard silent voice within the Team
–Balances actions against personal desire, opting for doing the right thing for the Customer

Looks Beyond the Team
–Understands & remediates impacts of the Team to downstream processes and the Customer
–Partners with upstream processes for elimination of waste & improvement actions

Promotes Recognition
–Recognizes a “job well done” & celebrates