vds approach v4
TRANSCRIPT
The Value Driven Approach
By Value Driven Solutions
The Resource for the Lean Enterprisew w w . v d s c o n s u l t i n g g r o u p . c o m
© 2015 | Value Driven Solutions 2
The World Class Enterprise
The Value Driven Approach
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
© 2015 | Value Driven Solutions 3
World Class Performance Cycle
The Value Driven Approach
The Value Driven Approach
Define Value
Devise Strategy
Develop Appropriate
Metrics
Maximize Flow
Improve Quality
Eliminate Variation
Analyze Results
Share Successes & Lessons Learned
Customer
© 2015 | Value Driven Solutions 4
Through the eyes of the customer
Define Value
The Value Driven Approach
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 pays for it
It’s done right the first time
Everything else is WASTE!
D
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Maximize value
ransformation Strategy
The Value Driven Approach
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
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Collect relevant data
Develop Metrics
The Value Driven Approach
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
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Value Stream Management
Maximize Flow
The Value Driven Approach
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
Monitor & repeat as necessary
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Introduce Six Sigma
Improve Quality
The Value Driven Approach
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 defects per million
opportunities, considered World Class Follows the DMAIC methodology
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Standardize all processes
Eliminate Variation
The Value Driven Approach
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
Strategi
c
Corporate policyRoadmapStrategic planSIPOCImpact maturity chartValue stream map
Operational
Process at a glance PQ analysisProcess matrixSpaghetti chartTime observationProcess capacity sheetSWIPStandard work sheet
Procedural
Work instructionOperating procedureSwim-lane mapElectronic file standardChecklistVisual control
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Compare to goals
Analyze Results
The Value Driven Approach
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
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Table 1. Typical metrics
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Share success and challenges
Lessons Learned
The Value Driven Approach
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Gemba Walks Reflection Meetings Andon Response Accountability Process Mentoring
Leadership Standard Work
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The Resource for the Lean Enterprise
Value Driven Solutions
The Value Driven Approach
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
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