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Prepare Understand Current State Design Future State
Develop Transformation Plan Execute Transformation Plan Three Consecutive Days 4 Weeks Prior to Mapping Following Mapping Repeat Value Stream Mapping Activity Phases and Timing 10 January 7, 2014 February 18, 2014January 21, 2014 www.ksmartin.com/webinars
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4 3 5 4 5 1 6 2 7 3 8 4 9 5 10 1 2 1 3 2 4 3 5 4 1 2 3 4 Date: Date: Contact Information Budget-to-actual expenses per PO/project. Signature: Signature: Signature: Date: 2013 average ontime delivery. Executive Sponsor Value Stream Champion Facilitator Annualized quantity of change orders. Profitably grow our business and open new markets. Prod Development Charlie F Relevant Data Agreement Reduce customer's warranty & LD exposure. Finance Lori P Capable processes that are repeatable (process focused). Design Manager Andrew M Projects completed on time (customer) & under budget (business). Function Name Reduced lead times & increased sales opportunities. IT Mars L Sales Kellie McMahon Benefits to Customers & Business On-Call Support Create variance tracking methodology. Program Mgmt Leia Chang Standardize the change process to reduce the # of Change Orders. Manufacturing Robert Cashman Reduce lead time (PO to ready to ship) from 12 mos to 8 mos. CFO Sharon Prince No KPIs. Sales Ed Borge Goals & Measurable Targets Engineering Joakim Gutan On-going changes to project parameters (design, test dates, & supply chain). Supply Chain, purch, log, ware Tom Johnson Consistently late delivery. CEO Mark Simpson Increase average ontime delivery (to "ready to ship") from 17% to 60%. Quality Sally Jones Projects are not scoped accurately (voice of the customer). Function Name Lack of consistant processes and execution. Operations John Morgan Briefing Dates &Times Feb 3, 4 & 5, 2014 4:00 - 5:00 pmImprovement Timeframe Future state realized by December 31, 2014 Current State Problems & Business Needs Mapping Team Contact Information Last Step Product shipped Boundaries & Limitations Must use existing resources (people, IT, etc.) Briefing Attendees ** required *optional ** Frank L, Rick M, Cory C, Glen S, Sinan, Ben, Jane, Sal, Malaika, Andrew, AE's, Sales Mgr's, Rachel, Adam, Dustan Base-camp Location Bldg B, Conf Room A Trigger Customer submits RFQ First Step Sales receives RFQ Logistics Coordinator Georgette Winters Meals Provided Continental breakfast, lunch, snacks Specific Conditions Land-based Value Stream Champion Janice Mitchell Demand Rate 300 units (40 projects; 20 POs) per year Facilitator Karen Martin Value Stream Mapping Charter Scope Accountable Parties Logistics Value Stream Equipment type A Executive Sponsor Joe Abrams Event Dates & Times Mon, Tue, Wed Feb 3, 4 & 5, 2014 8:00 am - 5:00 pm
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J J A S O N D 1 PROJ Joakim 2 PROJ Leia 3 KE Kellie 4 KE Joakim 5 PROJ Joakim 6 PROJ Ed 7 KE Sharon 8 PROJ Mark 9 JDI Kellie 10 PROJ Robert 11 PROJ Joakim 12 PROJ Robert 13 JDI Ed 14 PROJ Tom 15 PROJ Tom 16 KE Tom Value Stream Champion Janice Mitchell Start: 2/10/2014 Value Stream Mapping Facilitator Karen Martin Value Stream Transformation Plan Value Stream Land-based, retractable, medium complexity equipment Scheduled Review Dates Executive Sponsor Joe Abrams Every other Monday 10 am Socialize new criteria for engineering, quality, & purchasing involvement. Date Created 1/5/2014 Kaizen Burst # Measurable Target Objectives Proposed Countermeasure Exec. Method * Owner Planned Timeline for Execution Status Create procedure/train GS service engineers to properly feedback suggestions to engineering. Create bulletin re: standardized headplate design to eliminate flange orientation. Create visual "milestone" timeline to educate customers. Define technical info Ebara needs from customer and when. Revise standard Ts & Cs to incorporate time limit for customer approval for final payment. Error proof P.O. info (correct specs, ship to, etc.); notify customer re missing info and drop dead date. Create criteria for LOI acceptance. Add initial project release in SF. Enforce customer-requested CO procedure. One piece engineering flow Move to one release (equip & systems) Create commodity management team & supplier SLAs. Standardize WPS/PQR from suppliers. Revise proposal template to limit time to 4 revisions. Create trigger to release (BOMs) for purchase. Removed for confidentiality purposes
Healthcare: Outpatient Imaging Value Stream • History –
Hospital lost 25% outpatient imaging business in 1 year. – Radiology group believed market share loss was due to the patient experience at the aging hospital. • Wanted to enter into JV with hospital to build a free‐standing imaging center to compete with the new one across town. – Hospital leadership believed poor quality radiologist work created market share loss. • Value Stream Mapping was selected as the means to analyze & improve performance.
Imaging Value Stream Transformation – Round #1 Results Metric Before After
% Improvement Timeline Lead Time 4.0 days 1.3 days 67.5% Timeline Process Time* 59 minutes 48 minutes 18.6% Activity Ratio 3.1% 7.6% 145.2% Rolled % Complete & Accurate 30.5% 65.0% 113.1% Tech Turnover (annual) 100% 0% Surprise discovery! * Reduction in Tech’s PT frees enough capacity to earn add’l $500K in annual revenue.
Interesting Developments • Worst LT problem was super easy to fix. • During kanban
and 5S work, team discovered $25,000K of expired material and $17,000 of obsolete material. • Forged a far stronger relationship between hospital and radiologists. • Collecting copays in Imaging was reversed. • Implementing voice recognition took 2 years due to technology issues. • Creating a break room for techs boosted morale beyond anyone’s expectation.