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Value Stream Analysis:
Beyond the Mechanics (Part 1)

Webinar
January 7, 2014
Welcome!
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© 2014 The Karen Martin Group, Inc.

Argentina
Australia
Belgium
Bulgaria
Canada
Denmark
France
Great Britain
Israel

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Lithuania
Latvia
Morocco
Netherlands
New Zealand
Russia
Saudi Arabia
Spain
United States
2
Industries Represented
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Accounting
Aerospace
Banking
Biotech & Pharma
Construction
Defense
Education
Energy
Financial Services
Government

© 2014 The Karen Martin Group, Inc.

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Healthcare
Information Technology
Insurance
Legal
Manufacturing
Publishing
Real Estate
Retail
Telecommunications
Transportation
 Coach / Facilitator / Consultant / Trainer: 
Lean transformation & business performance 
improvement in all industries.
 Teacher: University of California, San Diego
 Author & Speaker:
Karen Martin, President
The Karen Martin Group, Inc.
www.ksmartin.com

2013 Shingo 
Prize winner!

www.ksmartin.com/subscribe
4
Before the webinar…
• The materials are available on:
– www.ksmartin.com/files/webinarmaterials/MM‐
DD‐YYYY_slides.pdf (or _handout.pdf)

After the webinar…
• All recordings are available on:
–
–
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www.vimeo.com/karenmartingroup
www.youtube.com/karenmartingroup
www.slideshare.net/karenmartingroup
www.ksmartin.com/webinars

• The materials are available on:
– www.slideshare.net/karenmartingroup
© 2014 The Karen Martin Group, Inc.

5
More VSM Webinars!
11:00 am‐12:15 pm PT
• Tuesday, January 21, 2014
– Value Stream Analysis: Beyond the Mechanics – Part 2 
(Mapping Execution)
– https://www2.gotomeeting.com/register/835695002

• Tuesday, February 18, 2014
– Value Stream Analysis: Beyond the Mechanics – Part 3 
(Executing the Transformation Plan)
– https://www2.gotomeeting.com/register/154959186

• Thursday, March 27, 2014
– Value Stream Mapping: Case Studies
– https://www2.gotomeeting.com/register/288652530
© 2014 The Karen Martin Group, Inc.

6
Value Stream Mapping Activity
Phases and Timing
Repeat

Prepare

Understand 
Current State

Design
Future State

Develop 
Transformation 
Plan

Execute 
Transformation 
Plan

4 Weeks Prior 
to Mapping

Three Consecutive Days

Following 
Mapping

Tuesday
January 7, 2014

Tuesday
January 21, 2014

Tuesday
February 18, 2014

© 2013 The Karen Martin Group, Inc.

7
Want to Learn about Upcoming Webinars?
www.ksmartin.com/webinars

www.ksmartin.com/subscribe
© 2014 The Karen Martin Group, Inc.

8
www.ksmartin.com/VSM

© 2014 The Karen Martin Group, Inc.

9
You will learn…
• The importance of a well‐crafted charter.
• Leadership’s role in the planning process & 
engagement tips.
• How to define the scope and set appropriate target 
objectives.
• Which leaders MUST be on the mapping team.
• Techniques for properly socializing the VSM charter.
• Logistics details that matter.

© 2014 The Karen Martin Group, Inc.

10
Why Value Stream Mapping? 
Why Now?

To order from Amazon: www.bitly.com/VSMbk
For more information: www.ksmartin.com/VSM
© 2014 The Karen Martin Group, Inc.

11
Value Stream Mapping’s Roots
•
•
•
•
•

Value
Value Stream
Flow
Pull
Perfection
1996

© 2014 The Karen Martin Group, Inc.

12
Value Stream Defined
Value Stream: All of the activities required to
transform a customer request into a good or service.
Value Stream
Process

Customer
Request

Process

Process

Customer
Receipt
First defined in The Machine That Changed the World, 
James Womack, Daniel Jones, & Daniel Roos, 1990.

© 2014 The Karen Martin Group, Inc.

13
Value Stream Mapping’s Roots

Mike Rother & John Shook, 1999

Beau Keyte & Drew Locher, 2004

Whenever there is a product for a customer, 
there is a value stream. 
The challenge lies in seeing it.
— Mike Rother & John Shook, Learning to See
© 2014 The Karen Martin Group, Inc.

14
Value Stream Mapping: Common Failings
• Using the mapping process solely as a work design 
exercise
• Using the map to make tactical improvements
• Creating maps but taking no action
• Mapping with an inappropriate team—or no team at all
• Creating value stream maps during a kaizen event
• Creating maps with no metrics
• Mapping without a team charter or not socializing it

© 2014 The Karen Martin Group, Inc.

15
Value Stream Mapping Benefit:
Seeing the Whole

Value Stream Mapping enables a           
mapping team to get ABOVE the work
© 2014 The Karen Martin Group, Inc.

16 16
Value Stream Mapping: 
Visualize your Entire Operation on a Single Sheet of Paper

© 2014 The Karen Martin Group, Inc.

17
VSM Promotes Systems Thinking

Individual Efficiency = Sub‐optimization

System Efficiency = Optimal Value Stream Performance 
© 2014 The Karen Martin Group, Inc.

18
Work: Degrees of Granularity
Value 
Stream

Macro       
Perspective
•
•
•

Define strategic 
direction (“what”) 
Heavy leadership 
involvement
Value Stream 
Mapping

Process

Process

Micro 
Perspective

Process
•
•

Step

© 2014 The Karen Martin Group, Inc.

Step

Step

•

Identify the  
tactical “how”
Heavy frontline 
involvement
Metrics‐Based  
Process Mapping

19
Work: Degrees of Granularity
Order Fulfillment Value Stream
Order 
Fulfillment

Strategic
Value‐stream 
Perspective
Quote
Tactical
Process‐level 
Perspective

© 2014 The Karen Martin Group, Inc.

Design

Produce

Fabricate

Assemble

Ship

20
Work: Degrees of Granularity
Hiring Value Stream
Hire

Strategic
Value‐stream 
Perspective

Recruit
Tactical
Process‐level 
Perspective

© 2014 The Karen Martin Group, Inc.

Write job 
description

Select

Post internally

Onboard

Post externally

21
Value Stream Maps ≠ Process Flow Charts

© 2014 The Karen Martin Group, Inc.

22
Value Stream Maps ≠ Swim Lane Process Maps
Current State Metrics-Based Process Map

0

PT Units
1
0

Seconds

Hours

Minutes

Days

LT Units
15
6
-1
0

Seconds

Hours

Minutes

Days

1 Customer

Diane O'Shea
Sean Michaels
Sam Parks
Sally Dampier
Michael Prichard

Specific Conditions Domestic orders through sales force
Occurrences per Year 37,500
Hours Worked per Day 8
Date Mapped 25-Jun-08

Step # ►
Function /
Department

Mapping Team

Process Details
Process Name Order Fulfillment

1

2

Activity

PT

LT

%C&A

Fax PO to Sales
Rep

0

0

Ryan Austin
Mary Townsend

Facilitator
Dave Morgan
3

4

45%

PT

LT

%C&A

Activity

PT

LT

%C&A

Review PO;
clarify with
customer as
needed

20

2

90%

Fax PO to
warehouse

10

4

Activity

PT

LT

%C&A

Activity

PT

LT

%C&A

Check inventory
levels; notify
Sales Rep re:
status

2 Sales Rep

Activity

5

90%

5

4

95%

Fax PO to Sales
Rep

5

0.33

90%

5 Finance

6

Warehouse /
Shipping

Critical Path PT
Critical Path LT
Rolled %C&A
Total PT

0

20
0
45%

0

10
2
90%

20

5
4
90%

10

5
4

0.33
95%

5

90%
5

Metrics‐Based Process Mapping is used to improve tactically & define standard work 
© 2014 The Karen Martin Group, Inc.

23
Value Stream Maps:
Strategy Before Tactics
Where am I? 
Where do I want 
to go?
Which route 
should I take?

I‐80 option

© 2014 The Karen Martin Group, Inc.

?

?
?
I‐40 option

I‐70 option

24
Value Stream Mapping Benefit:
Reaching Leadership Consensus

© 2014 The Karen Martin Group, Inc.

25
Basic Current State Value Stream Map: 
3 Sections
1

2

3

© 2014 The Karen Martin Group, Inc.

26
Basic Value Stream Map: Future State
1

Customer

IT interface
Standard
work

Error
proof

IT-1

Crosstrain

Modified
approvals
2

Process 1

3

Crosstrain

Process 2

Function A
1 items

IT-2

LT = 1 days
PT = 10 mins.
%C&A = 99%

Process 3

Function C
5 items

5

4

Standard
work

Function E
10 items

3
LT = 2 days
PT = 120 mins.
%C&A = 95%

4
LT = 0.5 days
PT = 30 mins.
%C&A = 95%

1 days

2 days

0.5 days

Total LT = 3.5 days

10 mins.

120 mins.

30 mins.

Total PT = 160 mins.
Activity Ratio = 9.5%
Rolled %C&A = 89.3%

© 2014 The Karen Martin Group, Inc.

27
Basic Value Stream
Future State Performance Metrics
Current State 

Projected
Future State 

Projected
% Improvement

9.5 days

3.5 days

63.2%

180 minutes

160 minutes

11.1%

Activity Ratio

3.9%

9.5%

143.6%

Rolled % Complete & 
Accurate

30.0%

89.3%

197.7%

Metric
Total Lead Time
Total Process Time

User defined
User defined

© 2014 The Karen Martin Group, Inc.

28
Value Stream 
Mapping

Executing 
Transformation 
Plan

Making 
Specific  
Improvements
© 2014 The Karen Martin Group, Inc.

29
Value Stream Mapping Activity
Phases and Timing
Repeat

Prepare

4 Weeks Prior 
to Mapping

© 2013 The Karen Martin Group, Inc.

Understand 
Current State

Design
Future State

Develop 
Transformation 
Plan

Three Consecutive Days

Execute 
Transformation 
Plan

Following 
Mapping

30
Activity Preparation
Prepare

Understand 
Current State

Design
Future State

Develop 
Transformation 
Plan

Execute 
Transformation 
Plan

1. Engage executive sponsor
2. Draft charter
3. Socialize charter
4. Plan logistics
5. Gather data
6. Deliver VSM overview
© 2014 The Karen Martin Group, Inc.

31
VSM Preparation Phase Activities
• Hold initial conversation 
with executive sponsor, 
value stream champion & 
facilitator.
• Draft charter
–
–
–
–
–

Purpose
Goals
Scope
Team
Logistics (start/end times, 
location, briefings)

• Socialize charter

© 2014 The Karen Martin Group, Inc.

• Plan logistics
– Send meeting invitations (to 
briefing attendees as well)
– Talk with prospective gemba 
interviewees
– Gather relevant data
– Book “base camp” room
– Gather supplies
– Order food

• Gather relevant data
• Hold value stream mapping 
overview session

32
Key Roles: Considerations
• Executive Sponsor
– Typically VP or higher
– Authority over significant portion of value stream (or strong 
relationship w/ peer group)
– Ultimately accountable for results
– Must attend briefings

• Value Stream Champion
– Oversee significant portion of the value stream
– Heavily engaged in entire value stream transformation (own the 
transformation plan)
– Member of mapping team
– In small companies or those just starting out, the VS Champion 
and Exec Sponsor could be the same person.

• Facilitator
– Objective; no “skin in the game”
– Skilled in both mapping/improvement mechanics, and high‐level 
team dynamics.
© 2014 The Karen Martin Group, Inc.

33
VSM Preparation Phase Activities
• Hold initial conversation 
with executive sponsor, 
value stream champion & 
facilitator.
• Draft charter
–
–
–
–
–

Purpose
Goals
Scope
Team
Logistics (start/end times, 
location, briefings)

• Socialize charter

• Plan logistics
– Send meeting invitations (to 
briefing attendees as well)
– Prepare for value stream walks 
(e.g., talk with prospective 
gemba interviewees)
– Book “base camp” room
– Gather supplies
– Order food

• Gather relevant data
• Hold value stream mapping 
overview session

http://www.ksmartin.com/wp‐content/files/Value‐Stream‐Mapping‐Charter.xlsx
© 2014 The Karen Martin Group, Inc.

34
Charter: Critical planning, communication, and consensus‐building tool
Value Stream Mapping Charter
Scope

Accountable Parties

Logistics

Executive
Required: typically VP or C-level
Sponsor

Value Stream Value stream being improved

Value Stream If needed—often director or
Champion manager level

Specific What circumstances are included and excluded?
Conditions (e.g., type of customer, geographic location, etc.)
Demand Rate How many times is this done per wk, qtr, mo, or yr?

Facilitator

Trigger What initiates the process?
First Step Task on first process block

Required: skilled, objective person
leading the activity

3 days typically; consecutive
Event Dates
is best; 6 hrs per day
& Times
minimum; 7 or 8 hrs is best
Base-camp On-site, ample wall space,
Location quiet/private location

Logistics
Not always needed
Coordinator

Last Step Task on last process block
Boundaries &
What is the team NOT authorized to change?
Limitations

Meals Always a nice touch; keeps
Provided the team from wandering

Briefing List the the people that are
Attendees required to attend the briefings (**)
** required and those whose attendance is
*optional optional (*).

Improvement Time
Typically 3-6 months
Frame

Current State Problems & Business Needs

Aids in consensus building
Briefing
and organizational learning.
Dates &
Typically the last hour of the
Times
day.

Mapping Team
Function

1 What's driving the need for improvement?
2
3

Contact Information

2

4

Name

1 Leadership-heavy
3

5

4

Measurable Target Condition

5

1 Reduce <defined metric> from X to Y (Z% improvement).

6

2 Increase <defined metric> from X to Y (Z% improvement).

7

3

8

4

9

5

10

Benefits to Customers & Business

On-Call Support
Function

1 How will the business, internal and external customers, and
2 internal and external suppliers benefit from value stream improvement?
3

Contact Information

2

4

Name

1 SMEs that may not be needed full time
3

5

4

Relevant Data

Agreement
Executive Sponsor

1 What data is required to understand relevant current state isues.

Value Stream Champion

Facilitator

2 Examples: work volume & volume variation, process quality &
3 effectiveness, market trends, customer satisfaction, employee

Signature:

Signature:

Signature:

4 engagement, financials, lead time, safety records, etc.

Date:

Date:

Date:

© 2014 The Karen Martin Group, Inc.

35
Value Stream Mapping Charter
Scope

Accountable Parties

Logistics

Executive
Allen Ward
Sponsor

Value Stream Capital equipment
Specific Engineer to order, requires both hardware &
Conditions software customization

Event Dates July 24-26, 2013
& Times 8:00 am - 5:00 pm

Value Stream
Nancy Little
Champion

Demand Rate 1,000 per year

Base-camp
Surf's Up - Room A
Location

Facilitator Dave Parks

Trigger Customer submits RFQ
First Step Sales reviews the RFQ

Logistics
Dave Parks
Coordinator

Last Step Production ships product
Boundaries & No new software; only minor changes to existing IT
Limitations systems; no additional staff; no budget changes

Meals
Continential breakfast & lunch
Provided

Briefing ** Allen W (COO), Joe M (CIO),
Attendees Sal T (VP Sales)
** required * Bruce R (VP Ops), Carlos P
*optional (HR), Su T (CFO), Bill M (VP CS)

Improvement Time Future state design is fully realized by
Frame December 31, 2013.

Current State Problems & Business Needs

Briefing
July 24, 25, & 26
Dates &
4:00-5:00 pm
Times

Mapping Team
Function / Title

1 Desire to stay ahead of the competition & deepen customer loyalty.

Name

2 Forecasted growth of 15% for next fiscal year.

1 Sales, Director

Sean Michaels

3 Unclear & incorrect information flowing through value stream.

2 IT, Director

Diana Marie

4 Lead time for RFQ turnaround = 2 weeks; PO to software dev = 5 weeks

3 Finance, Controller

Dave Gerald

5 (Competition's RFQ LT is 1 wk and PO to delivery is 4 wks)

4 Scrum Master

Ryan Austin

5 Engineering, Vice President

Nancy Little

1 Reduce RFQ lead time by a minimum of 50%.

6 Manufacturing, Director

Ambreen Motiwala

2 Reduce PO to software development lead time by a minimum of 50%.

7 Customer Service, Manager

Danny Tran

3 Improve quality of information flowing throughout value stream.

8 Customer (contract manufacturer)

Contact Information

JR Hunt

Goals & Measurable Target Conditions

4

9

5

10

Benefits to Customers & Business

On-Call Support
Function

1 Faster delivery; less hassle; less cost.

Name

2 Better working relationships between sales, estimating & engineering.

1 Planning / Purchasing, Planner Lourdes Dwyer

3 Freed capacity to absorb additional business w/o increasing staff.

2 Production Supervisor

4

Contact Information

3

5

Tom St. James

4

Relevant Data

Agreement
Executive Sponsor

1 Sales effectiveness: RFQ conversion rate.

Value Stream Champion

Facilitator

2 Financial: Estimate-to-actual cost comparison.
3 Operational: LT in segments (RFQ to quote; PO to development).

Signature:

Signature:

Signature:

4

Date:

Date:

Date:

© 2014 The Karen Martin Group, Inc.

36
Value Stream Mapping Charter
Scope

Accountable Parties

Logistics

Executive
Required: typically VP or C-level
Sponsor

Value Stream Value stream being improved

Value Stream If needed—often director or
Champion manager level

Specific What circumstances are included and excluded?
Conditions (e.g., type of customer, geographic location, etc.)
Demand Rate How many times is this done per wk, qtr, mo, or yr?

Facilitator

Trigger What initiates the process?
First Step Task on first process block

Required: skilled, objective person
leading the activity

3 days typically; consecutive
Event Dates
is best; 6 hrs per day
& Times
minimum; 7 or 8 hrs is best
Base-camp On-site, ample wall space,
Location quiet/private location

Logistics
Not always needed
Coordinator

Last Step Task on last process block
Boundaries &
What is the team NOT authorized to change?
Limitations

Meals Always a nice touch; keeps
Provided the team from wandering

Briefing List the the people that are
Attendees required to attend the briefings (**)
** required and those whose attendance is
*optional optional (*).

Improvement Time
Typically 3-6 months
Frame

Current State Problems & Business Needs

Aids in consensus building
Briefing
and organizational learning.
Dates &
Typically the last hour of the
Times
day.

Mapping Team
Function

1 What's driving the need for improvement?
2
3

Contact Information

2

4

Name

1 Leadership-heavy
3

5

4

Measurable Target Condition

5

1 Reduce <defined metric> from X to Y (Z% improvement).

6

2 Increase <defined metric> from X to Y (Z% improvement).

7

3

8

4

9

5

10

Benefits to Customers & Business

On-Call Support
Function

1 How will the business, internal and external customers, and
2 internal and external suppliers benefit from value stream improvement?
3

Contact Information

2

4

Name

1 SMEs that may not be needed full time
3

5

4

Relevant Data

Agreement
Executive Sponsor

1 What data is required to understand relevant current state isues.

Value Stream Champion

Facilitator

2 Examples: work volume & volume variation, process quality &
3 effectiveness, market trends, customer satisfaction, employee

Signature:

Signature:

Signature:

4 engagement, financials, lead time, safety records, etc.

Date:

Date:

Date:

© 2014 The Karen Martin Group, Inc.

37
Value Stream Scoping Diagram
Defining Specific Conditions
Medical/Surgical

Inpatient

Intensive Care

Pediatric

Patient care

X‐Rays
Vaccine Clinic
CT Scans

Potential selection criteria:
• Highest volume?
• Highest margin?
• Most painful?
• Most supportive 
leadership?
© 2013 The Karen Martin Group, Inc.

Outpatient

Imaging
MRI
OB/GYN
Services

Mammography
38
Value Stream Scoping Diagram
Defining Specific Conditions
Catalog

Configure           
to order

Custom 
hardware

Engineer             
to order

Custom  
software

Capital 
Equipment

Golden State 
Equipment, Inc.

New Product 
Development

Both

Catalog
Spares & 
subassemblies
Engineer to 
order
© 2014 The Karen Martin Group, Inc.

39
Where should the “fenceposts” be?
Function

Activity

Marketing

Generates sales leads

Sales

Calls on and qualifies  customers

Customer

Submits RFQ to sales

Sales

Reviews RFQ

Estimating

Generates quote

Sales

Approve quote

Customer

Accepts quote; submits a PO

Sales

Approves PO

Customer service

Creates SO; compiles spec package

EE/ME design

Designs product; generates BOM

Customer

Approves design

EE/ME design

Forwards design to SW dev

Software Dev

Writes code

Purchasing/Planning

Releases WO; schedules production

Supplier (external)

Delivers materials

Production

Manufactures & ships product

Customer

Installs equipment

Field service

Conducts 90‐day follow‐up

© 2014 The Karen Martin Group, Inc.

40
Value Stream Mapping Charter
Scope

Accountable Parties

Logistics

Executive
Required: typically VP or C-level
Sponsor

Value Stream Value stream being improved

Value Stream If needed—often director or
Champion manager level

Specific What circumstances are included and excluded?
Conditions (e.g., type of customer, geographic location, etc.)
Demand Rate How many times is this done per wk, qtr, mo, or yr?

Facilitator

Trigger What initiates the process?
First Step Task on first process block

Required: skilled, objective person
leading the activity

3 days typically; consecutive
Event Dates
is best; 6 hrs per day
& Times
minimum; 7 or 8 hrs is best
Base-camp On-site, ample wall space,
Location quiet/private location

Logistics
Not always needed
Coordinator

Last Step Task on last process block
Boundaries &
What is the team NOT authorized to change?
Limitations

Meals Always a nice touch; keeps
Provided the team from wandering

Briefing List the the people that are
Attendees required to attend the briefings (**)
** required and those whose attendance is
*optional optional (*).

Improvement Time
Typically 3-6 months
Frame

Current State Problems & Business Needs

Aids in consensus building
Briefing
and organizational learning.
Dates &
Typically the last hour of the
Times
day.

Mapping Team
Function

1 What's driving the need for improvement?
2
3

Contact Information

2

4

Name

1 Leadership-heavy
3

5

4

Measurable Target Condition

5

1 Reduce <defined metric> from X to Y (Z% improvement).

6

2 Increase <defined metric> from X to Y (Z% improvement).

7

3

8

4

9

5

10

Benefits to Customers & Business

On-Call Support
Function

1 How will the business, internal and external customers, and
2 internal and external suppliers benefit from value stream improvement?
3

Contact Information

2

4

Name

1 SMEs that may not be needed full time
3

5

4

Relevant Data

Agreement
Executive Sponsor

1 What data is required to understand relevant current state isues.

Value Stream Champion

Facilitator

2 Examples: work volume & volume variation, process quality &
3 effectiveness, market trends, customer satisfaction, employee

Signature:

Signature:

Signature:

4 engagement, financials, lead time, safety records, etc.

Date:

Date:

Date:

© 2014 The Karen Martin Group, Inc.

41
Who should be on the team, be on call,         
and attend briefings?

© 2014 The Karen Martin Group, Inc.

42
VSM Preparation Phase Activities
• Hold initial conversation 
with executive sponsor, 
value stream champion & 
facilitator.
• Draft charter
–
–
–
–
–

Purpose
Goals
Scope
Team
Logistics (start/end times, 
location, briefings)

• Socialize charter

© 2014 The Karen Martin Group, Inc.

• Plan logistics
– Send meeting invitations (to 
briefing attendees as well)
– Talk with prospective gemba 
interviewees
– Gather relevant data
– Book “base camp” room
– Gather supplies
– Order food

• Gather relevant data
• Hold value stream mapping 
overview session

43
Socializing the Charter
• Conversation, not merely an email 
attachment.
• To the entire workforce who will be affected 
by change.
• Adjust the charter if new discoveries or 
concerns surface. 

© 2014 The Karen Martin Group, Inc.

44
VSM Preparation Phase Activities
• Hold initial conversation 
with executive sponsor, 
value stream champion & 
facilitator.
• Draft charter
–
–
–
–
–

Purpose
Goals
Scope
Team
Logistics (start/end times, 
location, briefings)

• Socialize charter

© 2014 The Karen Martin Group, Inc.

• Plan logistics
– Send meeting invitations (to 
briefing attendees as well)
– Talk with prospective gemba 
interviewees
– Gather relevant data
– Book “base camp” room
– Gather supplies
– Order food

• Gather relevant data
• Hold value stream mapping 
overview session

45
VSM Preparation Phase Activities
• Hold initial conversation 
with executive sponsor, 
value stream champion & 
facilitator.
• Draft charter
–
–
–
–
–

Purpose
Goals
Scope
Team
Logistics (start/end times, 
location, briefings)

• Socialize charter

© 2014 The Karen Martin Group, Inc.

• Plan logistics
– Send meeting invitations (to 
briefing attendees as well)
– Talk with prospective gemba 
interviewees
– Gather relevant data
– Book “base camp” room
– Gather supplies
– Order food

• Gather relevant data
• Hold value stream mapping 
overview session

46
Value Stream Mapping Charter
Scope

Accountable Parties

Logistics

Executive
Allen Ward
Sponsor

Value Stream Capital equipment
Specific Engineer to order, requires both hardware &
Conditions software customization

Event Dates July 24-26, 2013
& Times 8:00 am - 5:00 pm

Value Stream
Nancy Little
Champion

Demand Rate 1,000 per year

Base-camp
Surf's Up - Room A
Location

Facilitator Dave Parks

Trigger Customer submits RFQ
First Step Sales reviews the RFQ

Logistics
Dave Parks
Coordinator

Last Step Production ships product
Boundaries & No new software; only minor changes to existing IT
Limitations systems; no additional staff; no budget changes

Meals
Continential breakfast & lunch
Provided

Briefing ** Allen W (COO), Joe M (CIO),
Attendees Sal T (VP Sales)
** required * Bruce R (VP Ops), Carlos P
*optional (HR), Su T (CFO), Bill M (VP CS)

Improvement Time Future state design is fully realized by
Frame December 31, 2013.

Current State Problems & Business Needs

Briefing
July 24, 25, & 26
Dates &
4:00-5:00 pm
Times

Mapping Team
Function / Title

1 Desire to stay ahead of the competition & deepen customer loyalty.

Name

2 Forecasted growth of 15% for next fiscal year.

1 Sales, Director

Sean Michaels

3 Unclear & incorrect information flowing through value stream.

2 IT, Director

Diana Marie

4 Lead time for RFQ turnaround = 2 weeks; PO to software dev = 5 weeks

3 Finance, Controller

Dave Gerald

5 (Competition's RFQ LT is 1 wk and PO to delivery is 4 wks)

4 Scrum Master

Ryan Austin

5 Engineering, Vice President

Nancy Little

1 Reduce RFQ lead time by a minimum of 50%.

6 Manufacturing, Director

Ambreen Motiwala

2 Reduce PO to software development lead time by a minimum of 50%.

7 Customer Service, Manager

Danny Tran

3 Improve quality of information flowing throughout value stream.

8 Customer (contract manufacturer)

Contact Information

JR Hunt

Goals & Measurable Target Conditions

4

9

5

10

Benefits to Customers & Business

On-Call Support
Function

1 Faster delivery; less hassle; less cost.

Name

2 Better working relationships between sales, estimating & engineering.

1 Planning / Purchasing, Planner Lourdes Dwyer

3 Freed capacity to absorb additional business w/o increasing staff.

2 Production Supervisor

4

Contact Information

3

5

Tom St. James

4

Relevant Data

Agreement
Executive Sponsor

1 Sales effectiveness: RFQ conversion rate.

Value Stream Champion

Facilitator

2 Financial: Estimate-to-actual cost comparison.
3 Operational: LT in segments (RFQ to quote; PO to development).

Signature:

Signature:

Signature:

4

Date:

Date:

Date:

© 2014 The Karen Martin Group, Inc.

47
VSM Preparation Phase Activities
• Hold initial conversation 
with executive sponsor, 
value stream champion & 
facilitator.
• Draft charter
–
–
–
–
–

Purpose
Goals
Scope
Team
Logistics (start/end times, 
location, briefings)

• Socialize charter

© 2014 The Karen Martin Group, Inc.

• Plan logistics
– Send meeting invitations (to 
briefing attendees as well)
– Talk with prospective gemba 
interviewees
– Gather relevant data
– Book “base camp” room
– Gather supplies
– Order food

• Gather relevant data
• Hold value stream mapping 
overview session

48
Value Stream Mapping Overview
Recommended Content
• Define value stream
• Explain VSM benefits
• Difference between value stream and 
process mapping 
– Show sample maps

• How the mapping activity will be structured
–
–
–
–
–

What they can expect
Roles & responsibilities
Approximate agenda
Deliverables
“Rules of engagement”

• Review the charter in detail
• Assign homework, if needed.
© 2014 The Karen Martin Group, Inc.

49
Your Questions
• How to deal with information flow problems 
between sales, management, and engineering 
before and during production.
• For an organization just beginning their Lean 
transformation, how do you encourage effective 
use of VSM? Data that exists is often questionable. 
It's difficult to get leaders to commit the time to do 
it right.
• I’m looking to implement a continuous 
improvement culture in an office environment. 
Where should I start?
© 2014 The Karen Martin Group, Inc.

50
Available Now!

To order from Amazon: www.bitly.com/VSMbk
For more information: www.ksmartin.com/VSM
© 2014 The Karen Martin Group, Inc.

51
For Further Questions

Karen Martin, President
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
Blog & newsletter:  www.ksmartin.com/subscribe

© 2014 The Karen Martin Group, Inc.

52
52

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