Improving Your Business ByImproving Your Business ByCombining VSM with VOC.Combining VSM with VOC.

Improving Your Business By CombiningImproving Your Business By CombiningVSM with VOC.VSM with VOC.

• Introductions

• Value Stream Mapping– What is value stream?

– Difference between process mapping and value streammapping.

– Benefits of value stream mapping.

– Typical maps

• Voice of Customer– Importance of VOC

– Steps in obtaining Voice of Customer

– Results

• Bringing VOC and VSM together.

• Questions and Answers

• Brown Bag Series

FacilitatorsFacilitators

Mike PircerMAP Business Solutions, Inc.(248) 379-8344www.mapbizsolutions.comwww.linkedin.com/in/mikepircer

Dan WalkerRiver’s End Consulting(248) 770-2554www.riversendconsulting.comwww.linkedin.com/in/tentmakerenterprise

Defining a Value StreamDefining a Value Stream

What is a Value Stream?• Actions required to bring a product or service to a

customer.

Value-added or non-value added?Three tests:

1. It changes the shape or form.

2. The customer cares about it.

3. It needs to be done right the first time.

Value Stream ImprovementValue Stream Improvementvs.vs.

Process ImprovementProcess Improvement

Value Stream ImprovementValue Stream Improvementvs.vs.

Process ImprovementProcess Improvement

Start FinishedProduct

1

Process

2

Process

3

ProcessCustomer

Value Stream

Value Stream MappingValue Stream Mapping

What is Value Stream Mapping?• PENCIL AND PAPER!!!

• Door to Door

• Prioritize Improvement Plans

Value Stream MappingValue Stream MappingBenefits of Value Stream

Mapping.

• Creates a vision of thefuture.

• Enables broad participation.

• Reduces the risk of creating“islands of excellence”.

• Helps to break downcommunication barriers.

• Provides an implementationroad map.

CurrentCurrent--State Value Stream MappingState Value Stream Mapping

Creating the Current-State VSM• Form the team.

• Educate (if necessary).

• Brainstorm an initial map through:– Team consensus

– “Value Stream Waste Walk”

• Formalize scope and preliminary objectives.

• Draft a rough-cut map.

• Gather necessary data and info.

• Create the final current-state value stream map.

CurrentCurrent--State Value Stream MappingState Value Stream MappingA few VSM Icon DefinitionsA few VSM Icon Definitions

© River’s End Consulting,Latest update 02/16/09

Our customers are unaware of many of our capabilities?

It would be nice to:•Match our customers unknown expectations•With our unknown capabilities

We are unaware of many of our customer expectations?

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Can We Agree?

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© River’s End Consulting,

We are going to ask our Stakeholders about:• Experiences with our products and services• Experiences with competitor products and services

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2. Identify what we already know

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What We Will Do1. Build a small team of internal experts

7. Develop specific solutions based on the top rated responses

3. Identify what we do not know

4. Develop specific topics of conversation

5. Interview select individuals

6. Sort and analyze the interview responses

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Purpose: Why interview people

To understand what requirements are criticalto maximize customer satisfaction andeliminate wasteful processes.

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Textual Analysis(What we already know)

Functions

Airplane safetyStandards

Basicfunctionality

ResistsEnvironmental

Degradation

AestheticallyPleasing

Mechanicalsoundness

FAA 10330.45USGR 330.5

Max payloadspec 30034

Aircraft paintstandard 45.87

What do we already know?

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Unknown, for further investigation1 How many planes do our customers buy and use

2 Customer desire for color choices

3 How well the customer likes the graphics

4 Pay load capacity needed by the customer

5 Customer needs for additional functionality

6 Manufacturing needs for minimum scrap and over-production

7 The perception of the shareholder related to what we produce

8

9

10

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Objectives: What we want to know

1 Understand the buying habits of our customers

2 Understand the type of color choices the customer desires

3Determine how well the graphics we apply meet the needsof our customers

4Understand the customer needs for payload capacity andbasic aircraft functionality

5Understand the struggles manufacturing experiencesduring aircraft construction

6 Understand the way our planes are used

7 Understand the perception of shareholder value

8

9

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Value Stream

StakeholderMatrix

ExternalSupplierPaper mfg,Stamp mfg, tapemfg

Internal CFTDesign,ManufacturingEngineering,Finance,Purchasing, Quality

Internal MFGFabrication,Assembly,Decorating andFinishing

CompetitorBaker Stream Mfg

End UserCust ACust B

InfluencersFAA, USGR

Non-T

raditi

on

al

Segm

en

tation Customer

Shareholder

Manufacturing

Supplier

© River’s End Consulting,

Purpose:To understand what requirements are critical to maximizecustomer satisfaction and eliminate wasteful processes.

Objectives:

1 2 3 4 5 6 7

Understand thebuying habits ofour customers

Understand thetype of colorchoices the

customer desires

Determinehow well thegraphics weapply meet

the needs ofthe customer

Understand thecustomer needs

for payloadcapacity andbasic aircraftfunctionality

Understand thestruggles

Manufacturingexperiences

during aircraftconstruction

Understandthe way ourplanes are

used

Understand theperceptionshareholder

value

Question 1What determinesthe quantity ofplanes you buy?

How do youchoose the colorof your plane?

Whatadditionalgraphicchoices do youdesire?

What is the rangeof payloadcapacity youneed?

Tell me aboutyour experiencebuilding theplanes.

How do youuse theplanes youbuy from us?

What is yourimpression ofour cash flow?

Question 2Tell me aboutyour experiencewith our company.

How well do ourplane colors meetyour needs?

How do youdecide on thetype ofgraphics youuse?

What type ofcargo do youhaul?

What kind ofdifficulties do youexperience doingyour job?

Tell me aboutyour businessuse of theplanes.

Tell me yourview of how theindustry isdoing ingeneral

Question 3What othercompanies do youbuy from and why?

How do you seean improvedprocess formanufacturing?

Question 4Tell me your viewof how the industryis doing in general

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Interviewee/Objectives: ____________ Date: ________Questions Interview Team (________)

1What determines the quantity of planes you buy? (Who do youbuy from other than us?)

2 Tell me about your experience with our company

3 Tell me your view of how the industry is doing in general

4 How well do our plane colors meet your needs?

5 What type of cargo do you haul?

6 What additional graphic choices do you desire?

7 What is your overall impression of our quality?

8

© River’s End Consulting,

The Interview

One interview facilitator

One to two note takers

Write Verbatim Notes

Very conversational

FutureFuture--State Value Stream MappingState Value Stream Mapping

Creating the Future-State VSM• Voice of Process Review (VOP)

– Review the current-state map with the team anddraw improvement loops.

• Voice of Customer Review (VOC)• Determining improvement ideas.

– Brainstorm ideas.– Identify resources needed and time required to

implement.– Set realistic goals.

• Draw future-state map.• Communicate.

Questions and AnswersQuestions and Answers

Mike PircerMAP Business Solutions, Inc.(248) 379-8344www.mapbizsolutions.comwww.linkedin.com/in/mikepircer

Dan WalkerRiver’s End Consulting(248) 770-2554www.riversendconsulting.comwww.linkedin.com/in/tentmakerenterprise

Brown Bag Webinar SeriesBrown Bag Webinar Series

Friday, June 26 (11:30am – 12:15pm)VSM – How To Create a Current State Map

Friday, July 10 (11:30am – 12:15pm)VOC – How To Set Up a Proper VOC Project

Friday, July 24 (11:30am – 12:15pm)VOC/VSM – Group discussion

Recommended ReferencesRecommended References

Books• Learning to See, Mike Rother and John

Shook

• Value Stream Management for the LeanOffice, Don Tapping and Tom Shuker

• Voices into Choices, Gary Burchill andChristina Hepner Brodie

• Synchronous Management,Mokshagundam Srikanth and MichaelUmble

• Throughput Accounting, ThomasCorbett

Websites• The Lean Enterprise Institute (eVSM

software can be purchased from thissite)www.lean.org

Training:• cpd.engin.umich.edu: University of

Michigan Lean Certification Program.

• www.villanovau.com: VillanovaUniversity Lean Six SigmaCertification Program