How to Run a Value Stream Mapping (VSM) Workshop

VSM Workshop -‐ Slideshare 1

Running a Value Stream Mapping Workshop


Sound Familiar?

“Our IT organization develops requirements in silos without considering the end-‐to-‐end business processes”


Sound Familiar?

“Our IT organization develops requirements in silos without considering the end-‐to-‐end business processes”

“The business requirements for our new IT solutions are not based on current business practices”


Sound Familiar?

“When we collect business requirements, we don’t really focus on the hard questions.”


Sound Familiar?


What problems are we trying

solve?


Sound Familiar?



solve?Will these

requirements deliver our product faster, at a

lower cost, at the quality level our

customer expects?


Sound Familiar?



solve?Will these



customer expects?

Are we improving our ability to

deliver value and remove waste?


The Solution

If these symptoms sound familiar, you may want to consider asking your IT department to conduct a Value Stream Mapping (VSM) workshop.

Here’s how…


Definitions


What Is a Value Stream?

A Value Stream is a sequence of activities an organization performs to address a customer’s request.


Who Is Impacted by a Value Stream?

A customer may be internal or external to the organization.


What Is a Value Stream Mapping Workshop?

A VSM workshop maps the current flow of information and materials, generates an ideal future state and puts forth a high-‐

level plan to achieve the future state.


The Key Elements of Value Stream Mapping


Customer Focus

The customer is the most important entity for each organization.Start with the customer and see what can and should be improved for their benefit.

Customer Focus

Strategic Level

Holistic View

Waste Detection

Metrics


Strategic Level Approach

A VSM workshop should focus on strategic direction and not get bogged down in the weeds.

Customer Focus

Strategic Level

Holistic View

Waste Detection

Metrics


Holistic Organizational View

Most organizations are a coalition of silos. VSM breaks down barriers between functional silos to uncover improvement opportunities across the entire value stream of the organization, not just within a discrete area.

Customer Focus

Strategic Level

Holistic View

Waste Detection

Metrics


Waste Detection

In almost all business processes there is waste. A VSM workshop exposes waste in a process, and provides the visibility and the opportunity to eliminate it.

Customer Focus

Strategic Level

Holistic View

Waste Detection

Metrics


Metric Analysis

Often there isn’t an awareness of the current performance of a process. The VSM workshop quantifies the current state and sets targets for improvements.

Customer Focus

Strategic Level

Holistic View

Waste Detection

Metrics


Preparing for a Value Stream Mapping Workshop


Prerequisites for VSM Success

Identify an experienced VSM workshop facilitator(internal or external).



Identify the organization’s Value Streams, also known as

core business processes.



Prioritize your Value Streams based on customer impact and organizational strategy.

Then pick the one that most meets the organization’s needs.



Establish an executive sponsor or champion who can commit to the VSM workshop and provide the leadership necessary to

implement the future state.



Empower the team to make important changes

that will transform the organization and meet strategic needs.


Executing aValue Stream Mapping Workshop


Step 1: Mandate

Develop a workshop mandate, or charter, which includes: • Scope• Problem Statement• Objectives• Metrics


Step 2: Agenda

Produce a detailed agenda (typically over 2 or 3 days, 8 hours per day)

and a logistical plan.


Step 3: Kick-‐Off Meeting

Hold a kick-‐off meeting with the executive sponsor to review the workshop mandate, logistics, recommended training (depending on organizational maturity), and pre-‐work assignments to get a

head start on capturing current-‐state processes.


Step 4: Final Preparations

Final preparations include holding a Q&A session (if required before the workshop) and setting up the space with

post-‐it notes, flip chart paper, and whiteboards.


Step 5: Facilitation

Day One: Map out the current state.




Day Two: Brainstorm and map the future state.





Day Two & Three: Identify the improvement opportunities, assign owners, and estimate overall implementation time for each improvement.





Day Two & Three: Identify the improvement opportunities, assign owners, and estimate overall implementation time for each improvement.

TIP: Produce a daily briefing for executive management.


Step 6: Governance

Establish governance and a review cadence to realize the improvement plan.


Deliverables


VSM Output

The deliverables from a VSM workshop are designed to bring about change:


VSM Output


– Process map of the Current State


VSM Output



– Process map of the Future State, with improvements highlighted


VSM Output




– Performance metrics (current and future)


VSM Output




– Performance metrics (current and future)

– Transformation plan to achieve the Future State


Outcomes


VSM: So What?

A well-‐executed VSM workshop with a committed champion can be a game changer

for your organization.


VSM: So What?

A well-‐executed VSM workshop with a committed champion can be a game changer

for your organization.

The outcomes may include: reduced lead time and waste, improved customer service and product quality, and increased

employee engagement.


VSM: So What?

Your IT organization is in a unique position to initiate a VSM workshop, given its involvement in business requirements

gathering and cross-‐functional projects.


VSM: So What?

Your IT organization is in a unique position to initiate a VSM workshop, given its involvement in business requirements

gathering and cross-‐functional projects.

If IT builds the capability to plan and execute VSM workshops to enable business transformation, the department can

move up the value chain within the broader organization.


Andy Nemtzow: linkedin.com/in/anemtzow

James Healey: linkedin.com/in/jamescundarihealey

Abraic helps improve business processes & outcomesfor IT organizations.


Learn more: abraic.com/blog

Abraic helps improve business processes & outcomesfor IT organizations.

How to Run a Value Stream Mapping (VSM) Workshop

Business

Transcript of How to Run a Value Stream Mapping (VSM) Workshop