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Wednesday, July 14, 2010

Value Stream Mapping, it isn't just for manufacturing anymore

Way back when, Anita Bryant used to tell us regularly on TV "Orange juice, it isn't just for breakfast anymore". Back in the day paraphrasing this line became an all purpose exhortation to change our perceptions and do something differently. Nothing so dramatic as  a paradigm shift was required here ( If you don't know Anita Bryant you can google her and see for yourself how the world has changed for the better since her day: she failed as a social activist, but as a promoter of widespread change in OJ consumption habits she did pretty well.).  Think back in your own life. What did you do in the past that you would not want to do now? Actions that today have been made unpopular/obsolete/illegal by business, social, or technological advance?  Got some in mind? It is not too hard to do. I find it very interesting to track the positive changes around us - it confirms we are growing for the better.

Today I want to talk about expanding the use of Value Stream Mapping (VSM) from its roots in dear old manufacturing, to a basic tool for all kinds of businesses. This little perception change is as easy as drinking OJ at dinner.  VSM is well explained in the ultra-practical book Learning to See by Mike Rother and John Shook. It is the definitive text on VSM for manufacturers. However with only a little imagination the reader can substititute a few words and change it to a transformative tool for their particular business. Change the words:  product to service, plant floor to workplace, customer to client or patient et voila! You now have the best basic tool there is to help get your own Lean implementation underway. 

What is VSM?

A value stream is the collection of all the steps that occur to satisfy the customer. This can be taken from a very high level (the single office, factory, or enterprise) or even extended to the molecular level of contributing raw materials! VSM includes real (observed) data about the actual product/service family being mapped. There are 2 stages of a VSM; first  the Current State map (CSM) is made and validated and second, a Future State map (FSM) is generated by the application of Lean methods that provide a reachable goal of a leaner operation. Once the first  future state is achieved, a new one can be envisoned, thereby creating a virtuous cycle of improvement.

VSM is a key tool for the Lean Leader


The lack of a Value Stream Map (or ineffective articulation and communication of an existing VSM) has been the seed of failure and frustration, and the cause of unsatifactory progress, in many Lean implementations.  This is so because the VSM process provides a  focal point for a company's vision of the future that is absolutely needed to align the forces for change and drive progress through the depth and breadth of an organization.  It is senior management's responsibility to guide, provide vision, and even direct (yes I said it, direct is not necessarily a dirty word.) the company's Lean efforts. VSM is their tool first and foremost to do that. Producing a VSM with real data, involving the right people, and then implementing an FSM (future state map) has been demonstrated to be much more effective than the too common tactic of training the frontline workers in "lean 101" and letting them loose on the place.

The FSM becomes the basis for planning corporate goals more accurately. Capital expenditures can be priortized by the vision of the FSM. It is the basis for a balanced scorecard, new KPI (Key Performance Indicators), revised work organization and even  policy changes (e.g. remuneration methods). It is refreshing for the organization to become realigned to provide the best value to the customer without regard to entrenched interests or functional silos.

Try to imagine doing something different. Imagine how satisfied your customer would be with half the current lead time for your service. Imagine your people determined to solve the issues that plague your company and keep you up at night.  Time to get started. Its about as easy as having OJ at dinner, and much more rewarding.

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