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Value Stream Mapping: 
How to Visualize Work & Align Leadership for 
Organizational Transformation
Webinar
October 3, 2013
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After the webinar…
• All recordings are available on:
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Value Stream Defined
Value Stream: All of the activities required to
transform a customer request into a good or service.
...
Value Stream Mapping’s Roots
7
Mike Rother & John Shook, 1999 Beau Keyte & Drew Locher, 2004
Whenever there is a product f...
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“The new bible for value stream mapping and 
improving organizational performance."
...
© 2013 The Karen Martin Group, Inc. 9
Book Structure
• Introduction
• Chapter 1 – Value Stream Management
• Chapter 2 – Se...
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Value Stream Mapping is for…
• Organizations who are unfamiliar with value 
stream ...
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Function FunctionFunctionFunction
Core Value Stream
Support Value Stream
Support Va...
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Why Value Stream Mapping?
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Value Stream:
Strategy Before Tactics
Where am I? 
Where do I want 
to go?
I‐80 opt...
Work: Degrees of Granularity
Value 
Stream
Process Process Process
Step StepStep
Micro 
Perspective
• Identify the  
tacti...
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Metrics‐Based Process Mapping:
Improving Tactically; Defining Standard Work 
0
1
0
...
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Value Stream Mapping Benefit:
Seeing the Whole
60,000 foot view; Rooftop view
VSM Enables Systems Thinking
17
Individual Efficiency =    
Sub‐optimization
System Efficiency = 
Optimal Value Stream 
Pe...
18
Value Stream Maps Serve as Visual “Storyboards”
Makes the disconnects 
and obstacles to flow 
visible at a macro level
...
Effective Way to Visualize Relationships between 
IT Systems and the Operation
19
© 2013 The Karen Martin Group, Inc.
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Value Stream Mapping Benefit:
Reaching Leadership Consensus
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Value Stream Mapping Benefits
• Visual unification tool
• Connection to the custome...
22
Value Stream Maps: 
Effective for New Hire Orientation
You 
are 
here
© 2013 The Karen Martin Group, Inc.
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Value Stream Mapping: Common Failings
• Using the mapping process solely as a work ...
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Value 
Stream 
Mapping
Strategy 
Deployment 
(Hoshin Kanri) 
or A3
Projects, 
Kaize...
Components of a Value Stream Map
© 2013 The Karen Martin Group, Inc.
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Common value stream mapping icons
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Key Metrics: Time
• Process time (PT)
– The time it takes to actually perform the w...
© 2013 The Karen Martin Group, Inc. 28
Process time versus lead time 
across the value stream
© 2013 The Karen Martin Group, Inc. 29
Key  Metrics:  Quality
• %Complete and Accurate (%C&A)
– % of incoming work that’s ...
Components of a Value Stream Map
Summary 
metrics
© 2013 The Karen Martin Group, Inc.
© 2013 The Karen Martin Group, Inc. 31
Summary Metrics: Time
• Activity Ratio (AR)
– The percentage of time anything is be...
© 2013 The Karen Martin Group, Inc. 32
Summary Metrics: Quality
• Rolled Percent Complete & Accurate (Rolled %C&A)
– The p...
Summary Metrics: Labor Requirements
• Total PT
– Sum of all activities, not just critical path
• Labor Requirements
33
Tot...
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Common current state findings
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Customer
1
Process 3
Function E
LT = 0.5 days
PT = 30 mins.
%C&A = 95%
4
4
10 mins....
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Time & Quality Value Stream 
Performance Metrics
Metric Current State 
Projected
Fu...
© 2013 The Karen Martin Group, Inc. 37
Acceptable branching on a 
Value Stream Map
Process 5
Function E
5
Process 2
Functi...
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Parallel steps on the timeline
Process 4
Function E
LT = 2 days
PT = 25 mins.
%C&A ...
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Multiple timelines
Customer
1
Perform
repair
Service
LT = 3 days
PT = 4 hrs.
%C&A =...
Prepare
Understand 
Current State
Design
Future State
Develop 
Transformation 
Plan
Execute 
Transformation 
Plan
Three Co...
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Name...
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Name...
Service 
order
Existing 
customer
New 
construction
Repair
Warranty
Non‐
warranty
Planned 
maintenance
New
customer
New 
c...
Patient care
Inpatient
Medical/Surgical
Intensive Care
Pediatric
Outpatient
Vaccine Clinic
Imaging
X‐Rays
CT Scans
MRI
Mam...
Prepare
Understand 
Current State
Design
Future State
Develop 
Transformation 
Plan
Execute 
Transformation 
Plan
Three Co...
© 2013 The Karen Martin Group, Inc. 46
Value Stream Mapping Activity Steps
1. Kick‐off
2. Understand the Current State
– V...
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Post‐it Note after Value Stream Walk #1
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Post‐it Note after Value Stream Walk #2
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How to document multiple downstream customers 
reporting different %C&As from the s...
Prepare
Understand 
Current State
Design
Future State
Develop 
Transformation 
Plan
Execute 
Transformation 
Plan
Three Co...
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2 Improve quality of referral to 85% KE
Sean
Michaels 10...
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Value Stream Mapping:
As Much Art as Science
© 2013 The Karen Martin Group, Inc. 53
Related Webinars
• Metrics based process mapping
– www.ksmartin.com/MBPM
• Kaizen E...
© 2013 The Karen Martin Group, Inc. 54
Karen Martin, President
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm...
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Name
Name
Lourdes Dwyer
Diana Marie
Dave Gerald
Ryan Austin
FacilitatorValue Stream Champion
Sean Michaels
Contact Information
Contact Information
Demand Rate
Trigger
1,000 per year
Customer submits RFQ
Value Stream Mapping Charter
Scope Accountable Parties Logistics
Allen Ward
Nancy LittleSpecific Conditions
Engineer to order, requires both hardware &
software
Value Stream
Champion
Capital equipment
Executive
Sponsor
Value Stream
Event Dates
& Times
July 24-26, 2013
Dave Parks
Base-camp
Location
Facilitator
Current State Problems & Business Needs Mapping Team
Boundaries &
Limitations
Improvement Time
Frame
No new software; only minor changes to existing IT
systems; no additional staff; no budget changes
Future state design is fully realized by
December 31, 2013.
Last Step Production ships product
Logistics
Coordinator
Dave Parks
July 24, 25, & 26
4:00-5:00 pm
First Step Sales reviews the RFQ
Briefing
Dates &
Times
Meals
Provided
Briefing
Attendees
** required
*optional
** Joe M (CIO), Sal T (VP Sales)
* Bruce R (VP Ops), Carlos P
(HR), Su T (CFO), Bill M (VP CS)
Scrum Master
Goals & Measurable Target Conditions Engineering, Vice President
Unclear & incorrect information flowing through value stream. IT, Director
Lead time for RFQ turnaround = 2 weeks; PO to SW dev = 5 weeks Finance, Controller
Desire to stay ahead of the competition & deepen customer loyalty. Function / Title
Forecasted growth of 15% for next fiscal year. Sales, Director
Reduce PO to SW dev by a minimum of 50%. Customer Service, Manager
Ambreen Motiwala
Danny Tran
Michael O'Shea
Reduce RFQ lead time by a minimum of 50%. Manufacturing, Director
Higher confidence in Golden State's products and staff. Production Supervisor
Faster delivery. Function
Less hassle (back and forth re: RFQ, design and code). Planning / Purchasing, Planner
Continential breakfast & lunch
Surf's Up - A
Tom St. James
Benefits to Customers On-Call Support
JR HuntImprove quality of information flowing throughout value stream. Customer (contract manufacturer)
Freed capacity to absorb additional business w/o increasing staff. Signature:
Date:
Benefits to Business Agreement
Better working relationships between sales, estimating & engineering.
Executive SponsorHigher margins.
Signature: Signature:

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