Part V.

Achieving the future state

VSM is a tool.
Unless you achieve the future state you have
drawn
your mapping is worthless

Achieving the future state means

Breaking implementation in to steps
The value stream plan
Value stream improvement: management's job

Breaking implementation into steps

Lean is a process of building connected flows, not
separate techniques
VSM looks at the entire process rather than
individual processing areas
To do the VSM improvements is too much to do all at
once.
Break the task into steps
Break the task into value stream loops
Envision value stream loops

Each pull system

supermarket in the value
stream communicates
with the end of another
loop

Controls the
material and
information
flow

Key is the pacemaker loop.

- Controls everything downstream
- Paces the flow of material and information
between the customer and the pacemaker

The Value stream plan:

One more sheet - where you need to go

The Value stream plan:

One more sheet - where you need to go
Value stream goals are established by the Value Stream
manager

Exactly what you plan to do

By when, Step by step, Measurable goals

Clear check points with real deadlines and named

reviewers

Read titles!

Pick a starting point for loops: think small

Where the process is well understood by your people
But keep it simple and dont go to areas that need major
solutions that inhibit success
Where the likihood of success is high (to gain
momentum)
Where you can get a big
bang for the buck
Well look at these

Follow the sequence described earlier

Creating a loop follows a known pattern
Develop continuous flow that operates based on
Takt time
Establish a pull system to control production
Introduce leveling
Practice Kanabn to continually eliminate waste,
reduce batch sizes, shrink supermarkets and
extend the range of continuous flow

Why follow the sequence described earlier?

Return On Investment
Continuous flow gives the biggest RIO by
eliminating waste (overproduction and
inventory) and shorting lead time (for better
customer service
Standardize work elements so production is
consistent and predictable to takt time
Then use pull give instructions to production
for flow
Then level production to stop batching

Acme
Manufacturing

For Acme, how well the

Weld/Assembly cell is managed,
impacts everything upstream in that
value stream,
especially
Acme future
state the customer

Stamping

Weld/Assembly
cell

Shipping

Acmes Value stream manager

plans implementation into steps
that are these three loops

Acme future state plans

Objective and goals are
established by the Value
Stream manager
Loop 1
Pacemaker loop
Loop 2
Stamping loop
Loop 3
Coil-supplier loop

Objective and goals are

established by the Value
Stream manager

Loop 1
Pacemaker
loop

Loop 2
Stamping
loop
Loop 3
Coil-supplier
loop

Improve
profitability in
steering
brackets

Refer to Future
state VSM

Look at these on the

form

Look at these on the

form

Loop 3: Coil Supplier loop

Objectives:

Look at these on the

form

Develop pull system with the steel coil supermarket

Introduce daily delivery
Goal:
Only 1.5 days of coil inventory in the supermarket

Completion dates are

planned on a familiar
Gantt chart

Responsible key
individuals and affected
departments sign off and
buy in

No money, the VS managers budget,

will be approved only if goals are
communicated and approved

Value stream plan

becomes a progress,
communication tool.
Bring your VSM &
plan to our meeting
with an honest
progress evaluation
each month

CEO: What do
you need to get
this item on
track?
The VS manager indicates
progress by using meeting time
with the CEO to highlight the
unsuccessful items and then, time
permitting, the behind items
O = on target
= slightly behind
X = unsuccessful

15 years of lean experiences show

15 years of lean experiences show

15 years of lean experiences show

15 years of lean experiences show

15 years of lean experiences show

15 years of lean experiences show

Ah yes. Management
15 years of lean experiences show
Eliminate overproduction and you will get flow
Must have a firm conviction that lean can be
adapted to your workplace
A willingness to try. To fail and to learn by trail
and error

Ah yes. Management
15 years of lean experiences show
Each Kaizan will be trail and error and failure
and learning
As you learn to do each one right more
understanding is gained
Each iteration and reiteration is a normal part
of the lean effort
Progress is had only by being willing to work
through obstacles

Management responsibility
Management needs to devote the time to really
learn this stuff

Management responsibility
Learn lean to the point that
they can teach it.
Teach with daily staff interaction
Whether CEO or plant manager, Lean
must be part of their words and deeds
The VSM needs to become intuitive and instinctive

Management responsibility
Begin by focusing on small groups of people with
relatively small number of specific targets
Manage by VS maps
Have a dynamic process were lower levels of the
organization take part in formulating policy and carrying
it out.
Have Close-to-the-operation support
Must be tied to direct value added operations

Close-to-the-operation support
Have Close-to-the-operation support
All indirect operation are support for direct operations
The support of indirect
Production control
Maintenance
Supervision
Team leaders
Material handling
Problem responders
Must be tied to direct value added operations

Operators and Takt

If we are asking the operators to work to Takt time we
need to be able to manage within the same framework
Ask Can my support organization (material handling,
maintenance, production control, engineering) respond
to problems encountered by production operators within
Takt time,
If the answer is no (and it almost always is) then your
organization is not ready for production to operate to
Takt time

Management responsibility
Change the focus from departments to production teams
Get a VS manager whose job it is to
Lead people operating the process
To have those people in the process take
responsibilities for cost, delivery, and quality of the
product in the present state
While leading them to implementation of the future
state
Get lean specialists who will help VS mgrs see waste
and introduce the practices needed to eliminate waste.

Management responsibility
Make sure the lean promotion group is on the
floor
Leading the changes with hands-on
Paying attention to the customer and actual
needs of the organization

Management responsibility
Start new performance measures for product
teams focused on
Lead times
Space
Human effort
Defects
Missed delivers

Basic lean principles

Dont kill the goose that lays the golden eggs

Translation: laying off people from gains made
by lean will result in people not participating
Sabotaging even!

Basic lean principles

Principle 1: Measures should encourage

desired behavior by the front line people
Principle 2: Measures should provide
information to senior managers
Principle 3 takes precedence over Principle

Atta boys
Make the VS management part of your own
appraisal process
Need t really show what your performance is
Gives teeth to linking your progress and
organizations to your paycheck
Reinforces you are the aggressive goal setting
leader
Gives an honest evaluation of other peoples
involvement in future state progress, in lean

OPW slides as reminders that this is not

theoretical