Vsm Voc Brownbag Webinar 0610009

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?


Can We Agree?



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


2. Identify what we already know


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


Purpose: Why interview people

To understand what requirements are critical to maximize customer satisfaction and eliminate wasteful processes.


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?


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


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



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


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


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

Technology

Vsm Voc Brownbag Webinar 0610009