The VDS Approach
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This document outlines the key features and processes involved in achieving world class enterprise performance using a value driven approach. It describes a cycle for continuous improvement focused on defining value from the customer perspective, devising strategies to maximize value, developing metrics, maximizing workflow, improving quality, eliminating variation, analyzing results, and sharing lessons learned. The goal is to provide clients with the tools and roadmap to achieve world class status through this methodology.
The VDS Approach
- 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 The Value Driven Approach © 2015 | Value Driven Solutions 2 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 Through the Value Driven Approach
- 3. World Class Performance Cycle The Value Driven Approach The Value Driven Approach © 2015 | Value Driven Solutions 3 Define Value Devise Strategy Develop Appropriate Metrics Maximize Flow Improve Quality Eliminate Variation Analyze Results Share Successes & Lessons Learned Customer
- 4. Through the eyes of the customer Define Value The Value Driven Approach © 2015 | Value Driven Solutions 4 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 D
- 5. Maximize value ransformation Strategy The Value Driven Approach © 2015 | Value Driven Solutions 5 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 T
- 6. Collect relevant data Develop Metrics The Value Driven Approach © 2015 | Value Driven Solutions 6 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 D
- 7. Value Stream Management Maximize Flow The Value Driven Approach © 2015 | Value Driven Solutions 7 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 M
- 8. Introduce Six Sigma Improve Quality The Value Driven Approach © 2015 | Value Driven Solutions 8 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 I
- 9. Standardize all processes Eliminate Variation The Value Driven Approach © 2015 | Value Driven Solutions 9 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 Strategic Corporate policy Roadmap Strategic plan SIPOC Impact maturity chart Value stream map Operational Process at a glance PQ analysis Process matrix Spaghetti chart Time observation Process capacity sheet SWIP Standard work sheet Procedural Work instruction Operating procedure Swim-lane map Electronic file standard Checklist Visual control E
- 10. Compare to goals Analyze Results The Value Driven Approach © 2015 | Value Driven Solutions 10 Adjust periodically according to changes in VOC and market conditions Business Metrics Improvement (2-3 yrs) Revenue ($) 20% Increase EBIT ($) 50% Increase Market Feedback World Class (> 6/7) Employee Satisfaction 45% Increase Quality Escapes World Class (zero) Inventory Turn 15% Increase On Time Delivery 25% Increase Turn Around Time (Days) World Class A Table 1. Typical metrics
- 11. Share success and challenges Lessons Learned The Value Driven Approach © 2015 | Value Driven Solutions 11 L Gemba Walks Reflection Meetings Andon Response Accountability Process Mentoring
- 12. The Resource for the Lean Enterprise Value Driven Solutions The Value Driven Approach © 2015 | Value Driven Solutions 12 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
- 13. Value Driven Solutions, LLC @Lean_VDSwww.facebook.com/VDSConsulting 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 ro u p . c o m Interested in seeing how we can help your organization? Call us 1 800 253 5260 Or Email us your questions at info@vdsconsultinggroup.com