© 2014 The Karen Martin Group, Inc. 25
3. Expanded scope to include receive cash. Modified
definition of “shipped” to “ready to ship.”
4. Refined target : “internally‐produced” change orders.
… to reduce the # of internally‐
produced change orders.
Future state realized by December 31, 2014
Last Step Product shipped
Must use existing resources (people, IT, etc.)
Trigger Customer submits RFQ
First Step Sales receives RFQ
Demand Rate 300 units (40 projects; 20 POs) per year
Value Stream Equipment type A
Modified Last Step: Receive cash.
Create variance tracking methodology.
Standardize the change process to reduce the # of Change Orders.
Reduce lead time (PO to ready to ship) from 12 mos to 8 mos.
Goals & Measurable Targets
Increase average ontime delivery (to "ready to ship") from 17% to 60%.
Mid‐Mapping Charter Revisions