MBA 745 Final

• Value Stream

  all activities (value added, business value added, and non-value added) required to meet a customer or stakeholder request.
• Types of Value Stream

  Products

  Services

  Ideas

  Sales

  Resources

  Projects
• 3.Types of Value Stream


  Products: A product used from materials to the point of use by the customer
• 4.Types of Value Stream


  Services: A service from suppliers to solving the need of a customer (ex barber, police, etc)

  
  

  start when notified service is required, end when service is provided
• 5.Types of Value Stream: Ideas


  from concept to implementation (new products and services)

  
  

  concept through product launch
• 6.Types of Value Stream: Sales


  new business from marketing to closing the deal

  Prospect to Order
• 7.Types of Value Stream: Resources


  from justification to retirement at end of use (recruiting of new employees through retirement)

  
  

  Equipment and people
• 8.Types of Value Stream: Projects


  Projects from concept o implementation and support (ex lean transformation project - from concept through implementation)

  
  

  Concept to Improvement
• 9.Value Stream Manager


  designated as the owner of a value stream which crosses functional boundaries. They are champions for future state design and implementation, creating flow and leverage pull across all functions
• 10.Value Stream Map


  A visual representation of activities and flows of information, materials, and services required to accomplish specific objectives.
• 11.Value Stream Flows


  > Materials, Products and Services >

  < Funds and Returns <

  < Information >
• 12.A current state value stream map must be...


  ...at the level of detail which identifies the waste.
• 13.Mapping the Value Stream - 1-10


  1. Identify Mapping Team

  2. Identify Value Stream

  3. Identify Suppliers

  4. Identify Inputs

  5. Identify Process

  6. Identify Outputs

  7. Identify Customers

  8. Other Stakeholders

  9. Speculate Value

  10. Champion Approval

  14.Steps 11-20: Creating the map: 11. Choose Approach

  12. Choose Symbols

  13. Identify Big Activities

  14. Decide what information

  15. Variation and Priorities

  16. Collect information

  17. Get facts (not memory)

  18. Something Happening

  19. Nothing Happening

  20. Value Add Guestimate
• SIPOC

  Suppliers, Inputs, Process, Outputs, Customers
• 16.Value Add Guestimate


  total time something is happening divided by the total time.
• 17.Check Sheet


  a tool for recording and organizing data to identify a problem
• 18.Run Charts


  type of chart used to show variations in the process over time or to show trends (such as improvements or the lack of improvements) in the process.
• 19.4 rules of run chart


  STAR

  - Shift

  - Trend

  - Astronomical

  - Runs
• 20.Run Chart


  Shift: when too much data is grouped above or below the lines (rule of 6)
• 21.Run Chart


  Trend: When a consecutive group is going up or going down (5 points)
• 22.Run Chart


  Astronomical: When there is an outlier
• 3.Run Chart


  Runs: (too few or too many) - number of times the median line is crossed
• 24.Value Stream Map


  : a visual representation of activities and flows of information, materials, and services required to accomplish specific objectives.
• 25.Value Stream Mapping


  : a team based systematic approach to create value stream maps which identify waste in the current state or paint the vision of a future state with less waste.
• 26.Made to Stock


  Environment where products can be and usually are finished before receipt of a customer order (ex - grocery store)
• 27.Assemble/Finish to Order


  - An environment a product or service is assembled after receipt of a customer's order

  - Products are typically a mix of standard items and prefabricated modules
• 28.Make to Order


  a) An environment where a good or service is made after receipt of a customer's order

  b) Relatively long lead time to ship after the order is received --> carry less stock
• 29.Design/Engineer to Order


  a) An environment where customer specifications require engineering design, specific customization or unique materials
• 30.Push


  a process that relies upon a forecast to create inventory in anticipation of customer orders

  o You push inventory into your supply chain

  o When actual orders don't match forecast, there will be excess inventory or stock

  o AKA Speculative

  o Ex - Buffet
• 31.Pull


  A process that uses actual customer demand to drive production

  o The order pulls inventory through your supply chain

  o AKA - reactive

  o Ex steak - that is ordered as rare, med rare etc...
• SIPOC diagram

  
• kai


  to take apart
• zen


  to make good
• kaizen burst


  Symbol to identify waster on current state map. The areas to make good.
• root cause analysis


  underlying causes
• Pareto Principle


  80/20 rule

  roughly 80% of the effects come from 20% of the causes
• scatter diagram


  A correlation chart that uses a regression line to explain or to predict how the change in an independent variable will change a dependent variable.
• Benchmarking


  comparing the performance of your products, services or processes with those of competitors and best-in-class organizations.
• Best Practices


  a procedure, demonstrated by research and experience, which produces superior results and is suitable for widespread adoption as a standard
• Root cause analysis


  ___________________ is a systematic process for identifying "root causes" of problems or events and an approach for responding to them. RCA is based on the basic idea that effective management requires more than merely "putting out fires" for problems that develop, but finding a way to prevent them.