Enterprise Value Stream Analysis

What is most important in 2012 is how well manufacturers implement strategy into daily execution. The Enterprise Value Stream Analysis (EVSA) is a combination of methods, tools and techniques used to analyze a business processes and to prescribe a plan with timeline and assignments for transforming the process to achieve breakthrough results. The EVSA approach ensures that the organization is working on improving process performance with a more critical eye by identifying and eliminating "non value-added” activities. EVSA deliverables include:

Process model maps
Current state value stream map
Ideal state value stream map
Future state value stream map
Baseline data
Key Performance Indicators
Detailed plan of rapid improvement events

The Enterprise Value Stream Analysis (EVSA) process event is an intense learn-by-doing process conducted with a core team. It is a hands-on, learn-as-you-go process that begins by establishing a fact-base business case (i.e., the reason driving the need for a process improvement); defining:

The value that is provided by the value stream from the eyes of the customer
Defining boundaries for the value stream analysis
Visualizing how the current business process is performed in a current state

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Current State Value Stream Process Mapping

Pertinent process data is then gathered and documented on the current state map and analyzed by the team to see where leverage exists within the value stream. This analysis determines flow/efficiency stoppers and major barriers found in the current value stream that later become the inputs for improvement ideas. We continue our "learn-as-you-go" analysis by introducing key tools such as Takt Time concepts and continuous flow or cellular approaches. There are critical lessons that allow the teams to take a fresh look at the current value stream and establish a "vision" of what the new flow or cellular approach, pull-based value stream can evolve too.

Ideal State Value Stream Process Mapping

Teams are coached to look with new eyes at how organizational culture and paradigms influence our way of thinking and behaving. A series of activities teach team members to understand the cultural areas that require focus in order to create breakthroughs performance in the value stream. Following paradigm discussions, an "ideal state" map is created that depicts what a waste free value steam could look like. This new vision is often a radical shift from the current value stream and requires "outside the box" thinking. Teams frequently identify the "breakthrough performance" projects that will make the ideal state a realistic goal.

Future State Value Stream Process Mapping

The final step of the process is to finalize improvement ideas and to construct a "Future State" map using the “Ideal State” as the compass. At this stage, teams use the concepts of flow, standard work, single piece flow, 6s, and pull) to establish the future state. A gap analysis between current and future state maps is performed, followed by the creation of an action plan to eliminate those gaps consisting of target areas for improvement and activities necessary to transform the value stream. Key performance metrics are established to measure success for the value stream team. The final activity is to establish a change management plan engaging stakeholders to accelerate implementation of the “Future State” process.