Brownbag University Brownbag University “Improving Your Business “Improving Your Business Through VOC and VSM”Through VOC and VSM”
Mike PircerMAP Business Solutions, Inc.(248) 379-8344www.mapbizsolutions.com
Dan WalkerRiver’s End Consulting(248) 770-2554www.riversendconsulting.com
Today’s AgendaToday’s Agenda• Introductions• Value Stream Mapping
– What is value stream?– Difference between process mapping and value stream
mapping.– 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
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 Improvement Value Stream Improvement vs. vs.
Process ImprovementProcess Improvement
Value Stream Improvement Value Stream Improvement vs. vs.
Process ImprovementProcess Improvement
Start Finished Product
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 the
future.• Enables broad participation.• Reduces the risk of creating
“islands of excellence”.• Helps to break down
communication barriers.• Provides an implementation
road map.
Current-State Value Stream MappingCurrent-State 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.
Current-State Value Stream MappingCurrent-State Value Stream MappingA few VSM Icon DefinitionsA few VSM Icon Definitions
CustomerInsurance Provider
Customer ServiceSystem
Weekly Updates,e-mail advice
Evaluate Requests
Operators Pershift5
Cycle Time Secs175
Rework (%) %10
Uptime (%) %95
Overtime Hrs/wk100
Absenteeism %5
Daily Batch e-mailadvice
Batch
Days1
1 Days
Process Shifts/Day Shfts2
ProcessHours/Shift Hrs8
Post / Enclose
Operators Pershift5
Cycle Time Secs190
Rework (%) %2
Uptime (%) %98
Overtime Hrs/wk200
Absenteeism %10
Process Shifts/Day Shfts2
ProcessHours/Shift Hrs8
Batch
Days1
1 Days
190 Secs
Ave. DailyDemand Claims1500
Batch
Days5
Weekly ScheduleDaily Priority
Schedule
5 Days
Key Info Summary
CustomerDemand Claims1500
Time Avail. Secs54000
Takt Secs36
175 Secs
VA per Claim Secs365
NVA per Claim Days7
VA % %.09
Non-ValueAdded Time
Value-Added Time
OutsideSource
OutsideSource
Process/Operation
Box
Data Box
Inventory/Waiting
Queue Box
TransportationMethod
ElectronicInfo Flow
Manual InfoFlowMaterial
Flow (Push)
ProductionControl / Work
Scheduling
© River’s End Consulting, llc
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?
© River’s End Consulting, llc
Can We Agree?
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© River’s End Consulting, llc
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 critical to maximize customer satisfaction and eliminate wasteful processes.
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Textual Analysis (What we already know)
Functions
Airplane safety Standards
Basic functionality
Resists Environmental
Degradation
Aesthetically Pleasing
Mechanical soundness
FAA 10330.45USGR 330.5
Max payload spec 30034
Aircraft paint standard 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
© River’s End Consulting, llc
Objectives: What we want to know1 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 needs of our customers
4Understand the customer needs for payload capacity and basic aircraft functionality
5Understand the struggles manufacturing experiences during aircraft construction
6 Understand the way our planes are used
7 Understand the perception of shareholder value
8
9
© River’s End Consulting, llc
© River’s End Consulting, llc
Purpose:To understand what requirements are critical to maximize customer satisfaction and eliminate wasteful processes.
Objectives:
1 2 3 4 5 6 7
Understand the buying habits of our customers
Understand the type of color choices the
customer desires
Determine how well the graphics we apply meet
the needs of the customer
Understand the customer needs
for payload capacity and basic aircraft functionality
Understand the struggles
Manufacturing experiences
during aircraft construction
Understand the way our planes are
used
Understand the perception shareholder
value
Question 1 What determines the quantity of planes you buy?
How do you choose the color of your plane?
What additional graphic choices do you desire?
What is the range of payload capacity you need?
Tell me about your experience building the planes.
How do you use the planes you buy from us?
What is your impression of our cash flow?
Question 2 Tell me about your experience with our company.
How well do our plane colors meet your needs?
How do you decide on the type of graphics you use?
What type of cargo do you haul?
What kind of difficulties do you experience doing your job?
Tell me about your business use of the planes.
Tell me your view of how the industry is doing in general
Question 3 What other companies do you buy from and why?
How do you see an improved process for manufacturing?
Question 4 Tell me your view of how the industry is doing in general
© River’s End Consulting, llc
Interviewee/Objectives: ____________ Date: ________Questions Interview Team (________)
1What determines the quantity of planes you buy? (Who do you buy 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, llc
The InterviewOne interview facilitator
One to two note takers
Write Verbatim Notes
Very conversational
Ways to Connect The Alumni Community
An alumni association holds a body of memories and
builds relationships
Community Building
Business Networking
Event Characteristics
An alumni association should hold regular monthly
meetings
You need a come-to-Jesus meeting. Most people don’t
know you’re trying to do something.
A Walsh grad needs to help another Walsh Grad. That’s
the connection.
Everyone expects networking to be part of
events
He feels the WCAA could bring new contacts and the
chance to make sales.
Valuable events would include information and
contacts to build a sense of community.
I liked that Stephanie Bergeron took the time to
visit the networking event in Novi.
Has liked all events he has attended, but does notice
that many of the same people attend the same
events.
Reaching Out with Effective
Communication
He also feels it is important to be part of an institution of higher learning. He
wants to be on the cutting edge of information and feels Walsh
community should provide that to him.
Consistent and Regular Updates
on Relevant Insights
Methods of Communication
2.0
Traditional Methods of
Communication
As a member of the Walsh community, I would like to
hear about cutting edge stuff.
For me, staying involved in an institution of higher learning is
important because I want stimulating conversations, banter, politics, cutting
edge discussions.
Email and paper are good ways to communicate with me. Email is easy
to get, paper can be shared easily and put on the table for reference.
I can’t recall exactly what brought me into WCAA, but after I started my business I got Walsh email newsletters.
LinkeIn or Facebook page would be a good social
networking tool for Walsh to use.
In print, I’d like to see a longer-term calendar of
upcoming events.
Print, email are best ways to communicate with me.
I’ll discard more email than paper mail.
Reasons for Getting Involved
Motivation to Giveback
Involvement Barriers
To contribute back to Walsh, the college would have to go back to its roots, foundation
and ideals
I feel compelled to contribute to Walsh because I wrote the college something
on a personal level – I got good PR from the college for business
purposes via a publication/newsletter.
I think the Alumni association is for fund
raising.
It’s difficult for graduate students to get involved. Undergrad is a better fit.
With online learning, there is no way to build deep
relationships.
Lack of Visibility
Once they pass by on graduation day, there’s no
further connection.
I have NO IDEA what the Alumni Assoc. does
He wants to get involved or at least learn his options but
has no idea how to get started.
Alumni Feeling Disconnected
I was disconnected for 10 years then got reconnected to my Alumni association at
MSU.
Not involved with other alumni associations, all ask
for money or I felt no connection when in school.
Future-State Value Stream MappingFuture-State Value Stream Mapping
Creating the Future-State VSM• Voice of Process Review (VOP)
– Review the current-state map with the team and draw 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.com
Dan WalkerRiver’s End Consulting(248) 770-2554www.riversendconsulting.com
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 Lean Office, Don Tapping and Tom Shuker
• Voices into Choices, Gary Burchill and Christina Hepner Brodie
• Synchronous Management, Mokshagundam Srikanth and Michael Umble
• Throughput Accounting, Thomas Corbett
Websites• The Lean Enterprise Institute (eVSM
software can be purchased from this site)www.lean.org
Training:• cpd.engin.umich.edu: University of
Michigan Lean Certification Program.
• www.villanovau.com: Villanova University Lean Six Sigma Certification Program
Recommended