Think Like a Customer - Value Stream Mapping to See Waste and Value

THINK LIKE A CUSTOMER
Andrea Darabos
Business Improvement Consultant, Coach
Andrea@leanadvantage.co.uk
Phone: +44 793 604 1196
LEAN ADVANTAGE Ltd.

At LEAN ADVANTAGE, our Mission is to
help create learning, continuously improving
organizations and value streams.
Not building the product/serivice right
Why Lean Advantage? LEAN ADVANTAGE Ltd.
Not building the right product/service
60% of employees are disengaged at work

‘Catching the Big Fish’ or ‘Learning to Fish’ ?
LEAN ADVANTAGE Ltd.
Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.uk
Andrea Darabos Lean Practitioner, Andrea@leanadvantage.co.uk , +44 07936 041196, Twitter @ADarabos

The Problem: How We Create Value
4
Etc.CXO
Sales Marketing
Customer
Support
Product/Service
Design
Product/Service
Delivery
CEO
CXO CXO CXO CXO
LEAN ADVANTAGE Ltd.
Value flows this way

The Problem: How We Create Value
5
LEAN ADVANTAGE Ltd.
Company
B
Company
A
Company
C

How winning organisations optimize
for value?
6
Step 1: What Value (services, products) do we provide to our customers?
Step 2: Who are our customers (internal, external) for this value?
Step 3: What are the steps we do to create this value for our customers?
Step 4: What waste and opportunities can we identify
(based on customer feedback) in our service?
Repeat.

Value Creation
7
Step 1: What Value (services, products) do you provide to your customers?
Step 2: Who are your customers for that service/product?
Write down a list of your
- External customers
- Internal customers

How Customers think of Value
8
„A tale of two friends”
OUCH!

Customers want: Maximal Value-Adding time as % of Total lead time (Flow efficiency).
Total lead time
Value is created by You, but defined
by the customer
Value-Adding time Non Value-Adding time – BNVA waste
NVA waste
9

Value Analysis
Value-Adding activity
• Essential for a good service or delivery of product
• Customer is usually willing to pay for this activity
• Should be standardized, optimized
Business Non Value-Adding activity
• Is necessary for the business (financial, regulations, risk
reduction)
• Should be minimized if possible
Non Value-Adding activity
• Not necessary & not valued by the customer
• Usually, one of the TIM WOODS
• Should be eliminated 10

Exploring Customer Needs
11
1, Do qualitative
interviews, focus
groups & categorize
needs
2, Ask for quantitative
feedback
(surveys, star rating,
comparison)
KANO model
Customers have many unexpressed needs…

12
The 8 Lean Software Wastes (Mary Poppendieck)
1, Technical Debt
2, Task Switching
3, Handovers
4, Failure Demand
5, Delays
6, Unnecessary features
7, Defects
8, Skills unused (+1) by Andrea D.

A Product Development Value Stream
13
Customer
Contact
Product
Envisioning
Product
design
Develop Build CTest Deliver
Integrate
and Test
Quote &
Contract
Deploy

Why Value Stream map?
14
• To see yourself with the eyes of your customer
• To understand what customers value
• To save cash and customers’ time
• To catalyze customer-focused improvement
• To enable employees to see the future

How to Value Stream map?
15
• Do it collaboratively with all the necessary stakeholders involved
• Focus on the actual, current state (AS-IS)
- Understand where you are before you decide where to go
• Draw by hand, note down all the current steps involved
- How information and value flows
- The communication with tools and customers, suppliers
- Gather actual data on lead times, queue times
• Understand customer value as defined by them (VA)
• Identify NVA waste, opportunities and start improving

A Few Value Stream Map Examples…
16
But don’t forget, the lean tool
you use and the actual picture is
secondary.
What is important is the
discussions and ideas that
happen within the team who
works on the value creation and
how they come up with better
ways of working together.
A real-life value stream on the wall - 2013 ©

1, Hardware Repair Service Value Stream
17
I was working with a global team of customer support
engineers, developers, testers and IC repair centers to
understand how can they offer better service to their
customers.
The „hardware” is products that are deployed in high
availability environments (i.e. World Cup or Olympics
streaming). Thus, it was essential to offer reliable
repair service with short lead times.

The Problems we discovered
• Customers complained about
long repair lead times
(long tail distribution with 40% of work
beyond expectations)
• The customers wanted better visibility of
where the units are in repair and what is
happening to them
Then we reflected on this feedback…
• We had very little visibility ourselves of
the WIP in the process
• Had no idea where the bottlenecks were
• People working with repairs were very
busy managing work but customer
escalations were common
• We did not feel good ownership of the
service (low morale)LEAN ADVANTAGE Ltd.
After the Customer Interviews

LEAN ADVANTAGE Ltd.
The Repair Value Stream AS-IS
When we started,
We had very little
data on our own process
(cycle times, what is
value-adding, etc.)

Value Stream Notation
20
Source: The green book in the end of this ppt.
Timeline calculations and notation:
Source and see more: MINITAB http://bit.ly/1q8mZYK
I used the same notation in the examples.

LEAN ADVANTAGE Ltd.
1, What happened Next?
More about this story and
• Plan Do Check Act on a Value Stream
• How to visualize the Value Stream and Empower the Team with
KANBAN
• PDCA deployment – i.e. transparency around improvements in
the company via KANBAN…
on our upcoming webinar 9th July, 11 BST.
Register now and send your questions in advance.

2, Sales and Fulfillment Value Stream
22
I was working with a the same company to help them think about how
to make it easier for customers to order products and then how to
speed up the fulfillment cycle.

AS-IS, when we started
23

FUTURE VS depicting the desired state
24

25
Good Reads – Lean Value Creation

ANY THOUGHTS, QUESTIONS?
Feel free to ping me
on the contacts below
Andrea Darabos
Business Improvement Consultant, Coach
Andrea@leanadvantage.co.uk
Phone: +44 793 604 1196
Twitter: @adarabos
Slideshare:/andreadarabos79
LEAN ADVANTAGE Ltd.

A Few Interesting Events
27
• 2nd July – Management 3.0 Workout with Jurgen Appelo
• 9th July – Webinar on Plan-Do-Check-Act with KANBAN
in collaboration with LeanKit
• 23rd October – Agile Tour London
Call for Speakers by end of June.

Think Like a Customer - Value Stream Mapping to See Waste and Value

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