the vds approach
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Value Driven Solutions
The Resource for the Lean Enterprise
w w w . v d s c o n s u l t i n g g r o u p . c o m
The World Class Enterprise
The Value Driven Approach © 2015 | Value Driven Solutions 2
Features of a World Class Enterprise
Culture of Continuous Improvement focused on customer satisfaction
Decisions revolve around Voice Of Process & Voice Of Customer
Strategic and operational excellence
Hoshin Kanri
Lean Operating System
Clear roadmap to excellence
Best in Class
Industry leader
Benchmarked by peers
Through the Value Driven Approach
World Class Performance Cycle
The Value Driven Approach
The Value Driven Approach © 2015 | Value Driven Solutions 3
Define Value
Devise Strategy
Develop Appropriate
Metrics
Maximize Flow
Improve Quality
Eliminate Variation
Analyze Results
Share Successes &
Lessons Learned
Customer
Through the eyes of the customer
Define Value
The Value Driven Approach © 2015 | Value Driven Solutions 4
A product or service provided to a customer at the right time,
quantity and at an appropriate price, as defined in each case by the
customer.
Anything the customer is willing to pay for
Satisfies the following:
It changes the product
The customer cares about it
It’s done right the first time
D
Maximize value
ransformation Strategy
The Value Driven Approach © 2015 | Value Driven Solutions 5
Based on Lean Six Sigma Principles
Flows to all levels of the organization
Prioritizes projects based on their value adding capacity and
ROIC
Links projects directly to organizational goals
Integrates suppliers in value adding effort
LSS must be the way everyone does business
Revise accordingly, remember…
The Voice Of the Customer is a moving target
T
Collect relevant data
Develop Metrics
The Value Driven Approach © 2015 | Value Driven Solutions 6
A good measurement:
Is critical to the internal & external customer (CTQ)
Provides quick feedback and motivates the team to act
Is a source of information, not punishment
Consider all collection points
Leading metrics
Process metrics
Lagging metrics
D
Value Stream Management
Maximize Flow
The Value Driven Approach © 2015 | Value Driven Solutions 7
Value Stream Mapping
Provides a visual representation of the flow of materials
and information
Highlights waste, work stoppages, and their sources
5 steps
Define Family
Map Current
State
Map Future State
Implement Plan
M
Introduce Six Sigma
Improve Quality
The Value Driven Approach © 2015 | Value Driven Solutions 8
A highly disciplined methodology to deliver near-perfect quality
consistently
Focused on eliminating variation, the main cause of defects
A six sigma process produces less than 3.4 million defects per
opportunity, considered World Class
Follows the DMAIC methodology
I
Standardize all processes
Eliminate Variation
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Simplify and structure work for maximum efficiency, quality, and
consistency through policies, procedures, and instructions
Preserves know-how and expertise, provides a basis for training
Three types of Standard Work
Str
ate
gic Corporate policy
Roadmap
Strategic plan
SIPOC
Impact maturity chart
Value stream map
Op
era
tio
na
l Process at a glance
PQ analysis
Process matrix
Spaghetti chart
Time observation
Process capacity sheet
SWIP
Standard work sheet
Pro
ce
du
ral Work instruction
Operating procedure
Swim-lane map
Electronic file standard
Checklist
Visual control
E
Compare to goals
Analyze Results
The Value Driven Approach © 2015 | Value Driven Solutions 10
Adjust periodically according to changes in VOC and market conditions
Business Metrics Improvement (2-3 yrs)
Revenue ($) 20% Increase
EBIT ($) 50% Increase
Market Feedback World Class (> 6/7)
Employee Satisfaction 45% Increase
Quality Escapes World Class (zero)
Inventory Turn 15% Increase
On Time Delivery 25% Increase
Turn Around Time (Days) World Class
A
Table 1. Typical metrics
Share success and challenges
Lessons Learned
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L
Gemba Walks
Reflection Meetings
Andon Response
Accountability Process
Mentoring
The Resource for the Lean Enterprise
Value Driven Solutions
The Value Driven Approach © 2015 | Value Driven Solutions 12
Value Driven Solutions (VDS) is a management consulting firm dedicated to
continuous process improvement. Our Value Driven Approach is based on the
Lean Principles for manufacturing and service organizations, and the Six
Sigma methodology for near-perfect quality.
Our goal is to provide clients with…
• a true baseline from which to grow
• identify opportunities for improvement
of critical processes
• a comprehensive road map to World
Class performance
Value Driven Solutions, LLC @Lean_VDSwww.facebook.com/VDSConsulting
Contact Us
To learn more about VDS Services please visit
w w w. v d s c o n s u l t i n g g r o u p . c o m
Interested in seeing how we can help your organization?
Call us
1 800 253 5260
Or Email us your questions at