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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
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Industries Represented
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Accounting
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Banking
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Construction
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Education
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 Coach / Facilitator / Consultant / Trainer: 
Lean transformation & business performance 
improvement in all industries.
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Before the webinar…
• The materials are available on:
– www.ksmartin.com/files/webinarmaterials/MM‐
DD‐YYYY_slides.pdf (or...
More VSM Webinars!
11:00 am‐12:15 pm PT
• Tuesday, January 21, 2014
– Value Stream Analysis: Beyond the Mechanics – Part 2...
Value Stream Mapping Activity
Phases and Timing
Repeat

Prepare

Understand 
Current State

Design
Future State

Develop 
...
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© 2014 The Karen Martin Group...
www.ksmartin.com/VSM

© 2014 The Karen Martin Group, Inc.

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You will learn…
• The importance of a well‐crafted charter.
• Leadership’s role in the planning process & 
engagement tips...
Why Value Stream Mapping? 
Why Now?

To order from Amazon: www.bitly.com/VSMbk
For more information: www.ksmartin.com/VSM
...
Value Stream Mapping’s Roots
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Value
Value Stream
Flow
Pull
Perfection
1996

© 2014 The Karen Martin Group, Inc.
...
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

Mike Rother & John Shook, 1999

Beau Keyte & Drew Locher, 2004

Whenever there is a product ...
Value Stream Mapping: Common Failings
• Using the mapping process solely as a work design 
exercise
• Using the map to mak...
Value Stream Mapping Benefit:
Seeing the Whole

Value Stream Mapping enables a           
mapping team to get ABOVE the wo...
Value Stream Mapping: 
Visualize your Entire Operation on a Single Sheet of Paper

© 2014 The Karen Martin Group, Inc.

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VSM Promotes Systems Thinking

Individual Efficiency = Sub‐optimization

System Efficiency = Optimal Value Stream Performa...
Work: Degrees of Granularity
Value 
Stream

Macro       
Perspective
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Define strategic 
direction (“what”) 
Heavy le...
Work: Degrees of Granularity
Order Fulfillment Value Stream
Order 
Fulfillment

Strategic
Value‐stream 
Perspective
Quote
...
Work: Degrees of Granularity
Hiring Value Stream
Hire

Strategic
Value‐stream 
Perspective

Recruit
Tactical
Process‐level...
Value Stream Maps ≠ Process Flow Charts

© 2014 The Karen Martin Group, Inc.

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

0

PT Units
1
0

Seconds

Hours

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

I‐80 option

...
Value Stream Mapping Benefit:
Reaching Leadership Consensus

© 2014 The Karen Martin Group, Inc.

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Basic Current State Value Stream Map: 
3 Sections
1

2

3

© 2014 The Karen Martin Group, Inc.

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Basic Value Stream Map: Future State
1

Customer

IT interface
Standard
work

Error
proof

IT-1

Crosstrain

Modified
appr...
Basic Value Stream
Future State Performance Metrics
Current State 

Projected
Future State 

Projected
% Improvement

9.5 ...
Value Stream 
Mapping

Executing 
Transformation 
Plan

Making 
Specific  
Improvements
© 2014 The Karen Martin Group, Inc...
Value Stream Mapping Activity
Phases and Timing
Repeat

Prepare

4 Weeks Prior 
to Mapping

© 2013 The Karen Martin Group,...
Activity Preparation
Prepare

Understand 
Current State

Design
Future State

Develop 
Transformation 
Plan

Execute 
Tran...
VSM Preparation Phase Activities
• Hold initial conversation 
with executive sponsor, 
value stream champion & 
facilitato...
Key Roles: Considerations
• Executive Sponsor
– Typically VP or higher
– Authority over significant portion of value strea...
VSM Preparation Phase Activities
• Hold initial conversation 
with executive sponsor, 
value stream champion & 
facilitato...
Charter: Critical planning, communication, and consensus‐building tool
Value Stream Mapping Charter
Scope

Accountable Par...
Value Stream Mapping Charter
Scope

Accountable Parties

Logistics

Executive
Allen Ward
Sponsor

Value Stream Capital equ...
Value Stream Mapping Charter
Scope

Accountable Parties

Logistics

Executive
Required: typically VP or C-level
Sponsor

V...
Value Stream Scoping Diagram
Defining Specific Conditions
Medical/Surgical

Inpatient

Intensive Care

Pediatric

Patient ...
Value Stream Scoping Diagram
Defining Specific Conditions
Catalog

Configure           
to order

Custom 
hardware

Engine...
Where should the “fenceposts” be?
Function

Activity

Marketing

Generates sales leads

Sales

Calls on and qualifies  cus...
Value Stream Mapping Charter
Scope

Accountable Parties

Logistics

Executive
Required: typically VP or C-level
Sponsor

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

© 2014 The Karen Martin Group, Inc.

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VSM Preparation Phase Activities
• Hold initial conversation 
with executive sponsor, 
value stream champion & 
facilitato...
Socializing the Charter
• Conversation, not merely an email 
attachment.
• To the entire workforce who will be affected 
b...
VSM Preparation Phase Activities
• Hold initial conversation 
with executive sponsor, 
value stream champion & 
facilitato...
VSM Preparation Phase Activities
• Hold initial conversation 
with executive sponsor, 
value stream champion & 
facilitato...
Value Stream Mapping Charter
Scope

Accountable Parties

Logistics

Executive
Allen Ward
Sponsor

Value Stream Capital equ...
VSM Preparation Phase Activities
• Hold initial conversation 
with executive sponsor, 
value stream champion & 
facilitato...
Value Stream Mapping Overview
Recommended Content
• Define value stream
• Explain VSM benefits
• Difference between value ...
Your Questions
• How to deal with information flow problems 
between sales, management, and engineering 
before and during...
Available Now!

To order from Amazon: www.bitly.com/VSMbk
For more information: www.ksmartin.com/VSM
© 2014 The Karen Mart...
For Further Questions

Karen Martin, President
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
Bl...
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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. Value Stream Analysis: Beyond the Mechanics - Part 1 (Planning)

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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

Publicado en: Empresariales, Tecnología
  • Want to earn $4000/m? Of course you do. Learn how when you join today! ◆◆◆ http://scamcb.com/ezpayjobs/pdf
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  • Hi Skip - Yes, these slides aren't meant as standalones - they're slides for my webinars, which are recorded and houses on Slideshare as well.. And YouTube. And Vimeo. And my website. Recommend subscribing so you can attend free webinars real time - www.ksmartin.com/subscribe.
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  • Thank you. You realize that the videos are uploaded as well here on Slideshare. Also on YouTube and Vimeo. FAR better than simply viewing slides.They are slides that accompany my webinars, not slides meant to be viewed in isolation. Recommend subscribing as well: www.ksmartin.com/subscribe
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  • Good Job, Karen.... Maybe you just verbalize this, but I would suggest supplying detail notes on the common failings regarding slide 15. Thanks.
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  • excellent work
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