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

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1 By 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

2 The World Class Enterprise Through 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 The Value Driven Approach 2015 Value Driven Solutions 2

3 The Value Driven Approach World Class Performance Cycle Define Value Share Successes & Lessons Learned Devise Strategy Analyze Results Customer Develop Appropriate Metrics Eliminate Variation Maximize Flow Improve Quality The Value Driven Approach 2015 Value Driven Solutions 3

4 D Define Value Through the eyes of the customer 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 The Value Driven Approach 2015 Value Driven Solutions 4

5 T ransformation Strategy Maximize value 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 The Value Driven Approach 2015 Value Driven Solutions 5

6 D Develop Metrics Collect relevant data 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 The Value Driven Approach 2015 Value Driven Solutions 6

7 M Maximize Flow Value Stream Management 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 The Value Driven Approach 2015 Value Driven Solutions 7

8 I Improve Quality Introduce Six Sigma 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 The Value Driven Approach 2015 Value Driven Solutions 8

9 Strategic Operational Procedural E Eliminate Variation Standardize all processes 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 Corporate policy Process at a glance Work instruction Roadmap PQ analysis Operating procedure Strategic plan Process matrix Swim-lane map SIPOC Impact maturity chart Value stream map Spaghetti chart Time observation Process capacity sheet Electronic file standard Checklist Visual control SWIP Standard work sheet The Value Driven Approach 2015 Value Driven Solutions 9

10 A Analyze Results Compare to goals Adjust periodically according to changes in VOC and market conditions Business Metrics Revenue ($) EBIT ($) Improvement (2-3 yrs) 20% Increase 50% Increase Market Feedback World Class (> 6/7) Employee Satisfaction Quality Escapes Inventory Turn On Time Delivery Turn Around Time (Days) 45% Increase World Class (zero) 15% Increase 25% Increase World Class Table 1. Typical metrics The Value Driven Approach 2015 Value Driven Solutions 10

11 L Lessons Learned Share success and challenges Gemba Walks Reflection Meetings Andon Response Accountability Process Mentoring The Value Driven Approach 2015 Value Driven Solutions 11

12 Value Driven Solutions The Resource for the Lean Enterprise 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 The Value Driven Approach 2015 Value Driven Solutions 12

13 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 Or us your questions at info@vdsconsultinggroup.com Value Driven Solutions,