Achieving Future State Future State

Step
by
Step
Current State
 Value Stream Management Process
1. Management selects
strategic
Value Streams for focus
> General Timing 1a. Mgmt. creates Team
> Resource plan Charters for each
(Annual planning) strategic Value
Stream
10. Closure
> Celebrate
success 2. Create
> Release Current
resources State Map

9. Audit & Stabilize OPTION I - 3. Create Future

system changes TEAM DRIVEN State Map

8. Project reviews 4. Identify, Quantify,

at least bi-weekly & Prioritize
Opportunities
(Goal document)

7. Implementation
5. Review with Mgmt
team for approval
6. Create Work Plans
Track Key
Measures
 Value Stream Transformation Process
OPTION I -
1. Management selects
strategic TEAM DRIVEN
Value Streams for focus
> General Timing 1a. Mgmt. creates Team
> Resource plan Charters for each
(Annual planning) strategic Value
Stream
10. Closure 2. Create
> Celebrate Current
success State Map 2. Create
> Release Current
resources State Map
3. Create Future
State Map
9. Audit & Stabilize 3. Create Future
OPTION II -
system changes State Map
MGMT DRIVEN
4. Identify, Quantify,
& Prioritize
Opportunities
8. Project reviews (Goal document) 4. Identify, Quantify,
at least bi-weekly & Prioritize
Opportunities
5. Mgmt. creates Team (Goal document)
Charters to
7. Implementation implement
target opportunities
5. Review with
Mgmt team for
6. Create Work Plans approval
Track Key
Measures
1. Start with an Annual Plan for Transformation

Annual Value Stream Planning document

l Sets priorities for top 10-12 projects
l Multiple projects run simultaneously
l Allows balancing of workload / resources
l Living document: may change during year
2. Pick a Value Stream and Map the Current State
 3. Develop a Future State Vision
4a.Identify
4. Identify
Opportunities

Indicator CS FS
Days of Foam 3.2 .34
Days of Resin 6.2 .85
Scrap 3.8% 1.9%
Direct Labor 36 30

4b. Quantify
Opportunities
4b. Quantify Opportunities: Goal Document

GOAL DOCUMENT
l Key tool for identifying
target improvement
efforts
l Quantifies expected
benefits
l Basis for measuring
results at close of
project
4c. Prioritize Opportunities
High
Priority Priority
I III
High Benefit High Benefit
Low Cost High Cost
Benefit
Priority Priority
II IV
Low Benefit Low Benefit
Low Cost High Cost
Low

Low High
Cost or Difficulty to Implement
5. Team Charter

TEAM CHARTER
l Identifies team members,
Sponsor, Leader, Coach
l Boundary conditions
define limits
l Sets expectations
 Deliverables
 Metrics
 Timeline
l Provides overall structure
 APX-HIWHT QS Cycle time Goal:<50

6a. Track Key 60

(Excludes weekends and unexpected downtime)

54
Hours

Average hours to produce

50
43

Measures
40

30 29 31
24
20

10

0
History 2288
APX-HIWHT 66434 66433 68356 69596 70712
HLWHT

Series1 29 31 54 43 24

Goal: < 50
KEY INDICATOR TRENDS APX-LOCLR QS Cycle time
(Excludes weekends and unexpected downtime)
Hours

125

l Simple, direct measure 110 110

Average hours to produce

95
80
65
l Tracked daily / weekly 50
35
45 51
20

l Shows effect of 5
-10
History 2288 History APX-
66616 67633 69364
HLCLR LOCLR
improvement actions Series1 110 45 51

Goal: < 50
APX-LOWHT QS Cycle time Hours
(Excludes weekends and unexpected downtime)
Average hours to produce

65

50

35
27 25
20
11 12
5
History 2288 History APX-
66531 66530 67372 69784
HLWHT LOWHT

Series1 11 27 25 12
 6b. Work Plans

Value Stream__PILT Value Stream TeamLeaderNate CobbsSponsor_Steve HollandDates:Review Mtgs:No.Action ItemDueDatePerson(s)Assigned4/274/305/75/145/215/286/46/119/29/99/169/239/305/35/306/149/301.Order pump5/ 18Na

WORK PLAN
l Simple visual tool
l Track if target
actions are taking
place on schedule
l Establish timing
l Assign tasks to
team members
l Reviewed with
sponsor on regular
schedule
 8. Implementation & Project Reviews
Value Stream__PILT Value Stream TeamLeaderNate CobbsSponsor_Steve HollandDates:Review Mtgs:No.Action ItemDueDatePerson(s)Assigned4/274/305/75

l These are 2 key documents

for managing projects.
l Should be reviewed at least
bi-weekly between Sponsor
& Champion
l Champion learns to come PILT-70P Days & LBs of Inventory
prepared to meeting
18000 35
16000 Goal: 2000# 4
l Should take 15-30 minutes 14000 Day
30
25
12000
per team. 10000 20
8000 15
6000
10
4000
2000 5
0 0
 8a. Role clarity
Biggest concern --weak / unclear sponsorship.

Sponsor

Accountability
Coach
Champion

Value Stream
Team

Sponsor = manager level leader who underwriting the activity of the team. Not member
but provides accountability.

Champion = leader of the team and is personally invested in seeing the team succeed.

Relationship between Sponsor and Champion is key. Sponsor should be spending time
weekly with the champion coaching, challenging thinking and thoroughness, and
providing needed support.
8b. Basic Project Management
9. Audit & Stabilize system changes

Most common reason new systems often

backslide or fail is lack of a system to
sustain the changes.
 9b. Sample
Audits

Audit Check Sheet

Items specific to each target area
Simple Yes / No evaluation
Yes = desired condition
Provide comment for all No’s
Numeric score tracked weekly
As scores improve, audit
frequency is reduced
9b. Auditing Standardized Work
 10. Closure

• Summarizes all key

data and activities of
the project
PILOT • Quantifies actual
results
Team • Celebrate Success!!
Storyboard • Release resources
• Lessons learned
 Oak Creek – Lean Project Executive Summary
Updated: 11/08/01 By: Janice Wirtz, Lean Manufacturing Manager

PROJECT NAM E: PI LT Value Stream

OBJECTI VE: To reduce waste in the value stream of all PILT products.

TEAM M EM BERS: Nate Cobbs, Kathy Welsch, Jay Bullis, Peter Mackowski, John Jurkiewicz,
Dave Cosentino

BACKGROUND:
PILT products are made in a dedicated batch tank in Industrial production. Due to tank constraints,
material was made in three parts. The first part produces an intermediate concentrate and the last two
parts blend this concentrate with solvent. This lengthy process produc ed much waste in the form of time,
materials, storage capacity and handling. Due to this fact and its large volume, 120,000 gallons per yea r, 1-Page Executive Summary
it was an ideal candidate for a lean value stream.
KEY ACTI ONS: Captures key activities and
· Produce intermediate concentrate on demand in exact quantity.
· Solvent ordered as needed and concentrate added directly to tankwagon, bypassing need for bulk
bottom line results
storage tank.
· Production occurs in one part instead of three. Provides upward visibility
KEY I NDI CATORS:
SL-51-1462 Days & LBs of Inventory PILT-70P Days & LBs of Inventory
Helps build executive
50000 20 18000
Goal:
35 sponsorship
Goal : 16000 30
40000 1400# 1/2 Day 14000 2000# 4 Day
15 25
12000
30000 20
10000
10
20000 8000 15
6000
5 10
10000 4000
2000 5
0 0 0 0
5 9 3 7 0 4
4/1 4/2 5/1 5/2 6/1 6/2 7/8 7/22 8/5 8/19 9/2 9/16 9/30 4 7/8 2 8/5 9 9/2 6 0
6/2 7/2 8/1 9/1 9/3

RESULTS:
· Reduced production cycle time from 197 hou rs to 74 hours (62%).
· Reduced inventory by $32,061 (74%).
· Bulk tank available for other use for savings of $278,000 per year.
COM M ENTS:
· The lean process introduced a significant process change to this value stream. This change reduced
cycle time significantly and introduced a major cost saving. O ther lean teams with bulk finished
goods should investigate the benefits of blending in a raw material tankwagon.
 Can we “Sustain the Gains” of Lean like
maintaining a machine?
“Now we are Lean”?

Process
Results

Time
“Do Lean” “Getting Lean” What’s Next?
(Apply Tools) (Lean out Process) (Sustain the Gains)
 Entropy will always set in Degrading the
Perfect Lean Solution
“Why are we Slipping?”

“Entropy” Means
Process Decay
Results

Time
“Do Lean” “Getting Lean” What’s Next?
(Apply Tools) (Lean out Process) (Recovery)
“Like Weeding Garden without pulling roots”
Working Out to Arrest Entropy
 Counter Entropy With Positive Energy

Process
Results

Time

“Early Projects” “Spread Lean” ‘Daily Management’

(Experiment) (Learn) (Leadership)
 Alignment and Responsibilities
Leadership Responsibilities: Value Stream
Approach
1. Provide organizational ALIGNMENT

2. GUIDANCE to select right target opportunities Directors

within each value stream

Ops Manager
3. ACCOUNTABILITY using work plans and trend graphs

Sponsor
4. FOCUS: Scope and Time frame Results & Closure.

5. RESOURCES and support. Champion

Team
 Key Ingredients for Change
Participation
Ownership
Structure
Organization
Documents
Roles / Resp

Change Lasting
Effort
Results

Accountability
Skill-based
Education &
Mentoring
The TPS Hothouse
The Iceberg Model of TPS

Kanban.
Charts 5S Andon
Slogans Teams Cells

Culture Change:
Involve People in
Continuous Improvement
To Eliminate Waste through
the Toyota Way