The two approaches are typically quite different – a full project team approach will typically involve team members who are not full time on the project (but will carry on with their usual day-job in tandem). These projects are typically headed by an improvement expert (sixsigma black belt for example) and follow the DMAIC method. Such improvement projects may take the route of a formal project methodology.

The shorter approach provides a much more intense methodology and aims to deliver results more quickly. Typically this short burst approach will utilize DMAIC methods but will not carry out the implementation stage. The main difference between a project approach is that team members are dedicated. This shorter approach is also typically headed by an improvement expert and it’s common that preliminary work may have been carried out.

As a reminder DMAIC stands for

• Define
• Measure
• Analyze
• Improve
• Control

Due to its popularity and profile - there is a tendency to reach for DMAIC whatever the problem - DMAIC is not however a cure all and is not suitable for all initiatives.

Where process (or product) design is being carried out DMAIC is not particularly suitable – DMEDI (Design for Lean Six Sigma (here for the wikipedia article) is more relevant.

It’s important to remember that DMAIC facilitates development of the basic process which exists already but is not meeting expectation.

However, you’ll be pleased to know Value stream mapping is not rocket science – given some time and practice anyone can do it.

The big Value Stream Mapping secret: It’s easy!

Before we get to the list of must haves for Value Stream Mapping – let me explain what I mean when I say that it isn’t rocket science – like any methodology Value Stream Mapping has certain processes and steps to follow to produce the desired result – Information can be obtained such as this Value stream mapping guide or these Example Value stream maps - the most important thing to remember is that these steps can be learned.

To help you out on your Value stream mapping quest there are books, software and case studies that will be of use. Remember that you are not alone – there’s a heap of resources out there to help you.

Heres our list of Value stream mapping essential elements

1/ Information Flow – At the heart of VSM is the mapping of the flow of information
2/ Material Flow – As well as information the other crucial element is the flow of material.
3/ Customers – capture the customer and its interface
4/ Suppliers – Capture the suppliers and the flow of material from them
5/ Lead Time – Capture the lead time or waiting time between each process activity
6/ Value Add time – Capture the time spent adding value to the product by each step of the process
7/ Activity – capture each activity step in the process
8/ Materials – capture the levels of materials used/held at each activity stage.
9/ Resources – capture the resources used at each activity step
10/ Transportation – capture the movement of materials between steps, customers and suppliers.

At its heart Kanban is a signaling system used to signify the need for material. The system traditionally uses cards to signal need. (Kanban is not limited to using cards though and other items are sometimes used). A kanban often utilizes a multi-bin system where one bin is placed in the production line – one is placed in the stores and another placed at the supplier.

Kanbans work by using an item such as a Kanban card to trigger replenishment. Stock is placed in a storage area or bin. When stock runs out the card is sent to the store or warehouse acting as a replenishment request. In turn the card from the now empty store bin is forwarded to the supplier. Thus an effective Kanban system can keep a steady flow of materials providing the correct amount of stock when required.

• Variability in lead time
• Variability in demand
• Inaccurate forecasting
• Obsolesence
• Poor quality

Methodologies such as DMAIC are ideally suited to solving these problems as they encourage the business to be both analytical in their approach whilst looking for standardization.

Improvement programs in this are typically focus on internal processes and management and also the role of the supply chain.

The focus on internal activity is typically on improvements in forecasting (better understanding consumption rates and supplier lead time) this can facilitate more accurate stockholdings ensuring that they are more closely aligned with customer requirement.

Another common activity is to work with suppliers on root cause analysis on problems with lead time. All too often internal problems are then carried over into the supplier base causing lead time issues (for example providing inaccurate specifications or unrealistic delivery requirements).

Whilst improvement activity often interfaces with supply chain in a manufacturing environment (through the introduction of Kanbans for example), it also has a role to play where supply chain is the primary focus with many of the tools and methods being applicable.

• Financial
• Process
• Customers
• Learning and Growth

Working on the basis that financial measures are not sufficient in their own right to manage a business – scorecards aim to bridge the gap between an organizations strategy and operational performance. More than a jumble of metrics, measures are carefully selected to help define a businesses performance. Scorecards can radically improve the visibility of a businesses execution.

A correctly constructed balanced scorecard can:

1/ Help align strategy with the organization
2/ Drive improvement through highlighting areas of inefficiency and waste
3/ Ensure strategy and decision making are supported with fact
4/ Facilitate the ongoing monitoring of business initiatives.
5/ Link financial results with operational performance
6/ Bring together short and long term objectives
7/ Prioritize issues and associated decision making
8/ Show the relationship between employee performance and business success
9/ Underpins accountability of operational management
10/ Provides feedback to executives that strategy is working

Balanced scorecards have been around since the early 1990’s and have become an increasingly popular form of performance indicator. They can take various guises and whilst there are no hard and fast rules they generally contain measures covering

• Financials
• Customers
• Processes
• Growth

Within each section a number of measures can be included, these depend on the prevailing issues within the business. The scorecard is then graphically portrayed on one “report”.

A number of software packages are available to facilitate the creation of business scorecards and business intelligence systems increasingly include support for scorecards or consolidated views (see www.xcelsius.com for example).

1/ Map using pencil and paper

These days there are lots of value stream mapping software available but for first timers who may not be familiar with the software its just one extra thing to learn – remember excellent results can be obtained through traditional pencil and paper, just remember to stick with a “house style” and traditional value stream mapping icons.

2/ Don’t forget the data

Unlike other types of process mapping – value stream mapping is quite data intensive – don’t forget that you’ll need to capture process data along the way such as inventory, cycle time etc, make sure that you consider how you’ll capture your data – for example you may want to consider a data collection plan – or nominating a member of your team for the task.

3/ Take your time

There is a lot to think about when undertaking value stream mapping for the first time so be sure not to rush – create a check list of items that should be included in the map and cross them off as you go along – check out Value stream mapping guide for more information on how to run a VSM program.

4/ Don’t be shy – visit the workplace

A key element of Value stream mapping is accuracy – an incorrect VSM can lead to wrong conclusions being drawn and can waste valuable time of improvement teams. Spend time at the workface to ensure that what you map is accurate.

5/ Validate

When you think you’ve got your map complete – validate it with your stakeholders – ensure its representative of what actually happens – use this to iron out any problems with the map. Don’t take this stage for granted – get it wrong and you can find your improvement suggestions shot down in flames as stakeholders rubbish your map!

6/ Produce the as is then focus on the to be

Don’t be tempted to produce the “as is” and “to be” maps at the same time – we can all see improvements but capture them (perhaps in a list) and go back to producing your “as is” map. Remember that you may not have the whole picture until the “as is” is complete.

The good news is that improving your business doesn’t have to be complicated, there’s a variety of simple lean tools and concepts that are both accessible and easy to implement – all of which can contribute to improving your businesses

In the list below we list 5 top tips from the world of lean which can help your business thrive - got more - add your tips in our comments section below.

1. Capture your processes with Value Stream Mapping

Value stream mapping is a process mapping tool that can be used to evaluate and understand the flow of information and materials within your organization. Its equally suited to manufacturing and service organizations and through its use of data can provide an accurate picture of the state of your business, showing you the good and the bad - an ideal start point for any lean programme.

2. Reduce the 7 Wastes

The seven wastes are a concept of categorizing business inefficiencies. By analyzing your business processes and targeting reduction within each category of waste, efficiency gains can be achieved and your business streamlined.

3. Utilize Poka Yoke

Eradicating errors is crucial to any business. Errors cost money and impact customer satisfaction. By introducing simple measures to trap and stop errors organizations can not only save costs but also become more efficient. Poka Yoke is the concept of error proofing through using visual aids – and whats more its quick and easy to implement.

4. 5S

With the premise that everything in the workplace has it’s place – 5S is a business tool that aims to install and maintain a clean and standardized workplace, ensuring that only when things are required are they bought into the workarea. By improving the workspace the business lays a foundation for future improvement programs.

5. Implement a Pull System

Pull systems such as Kanbans help reduce the number of items in work in progress. The various stages of the production process aim to pull resources along the production line so for example as inventory is consumed just enough inventory is reprovisioned to meet the task in hand. Pull systems also aim to eliminate variation in lead times and batch sizes.

Kano Analysis was developed by Professor Noriaki Kano in the 1980’s and classifies customer preferences into the following catagories

• Attractive
• One-Dimensional
• Must-Be
• Indifferent
• Reverse
Customer preferences can be analyzed and segmented according to the customers are either dissatisfied, satisfied or delighted. Results can then be charted into Kano Model