Archive for Value Stream
Value Stream Mapping Customer Value
Posted by: | CommentsValue Stream Mapping Customer Value can be difficult to say the least. Even getting your organization to decide on what the Customer Value’s can be challenging. This PowerPoint/Video highlights the 5 Cs of Driving Market Share as the method of choice to determine your Customer’s Value Stream. It also introduces the term Voice of Market versus Voice of Customer.
I hope after watching the video, you picked up on several key points. One, that your organization cannot determine customer value your customer is the only one that can do that. The other point is that Customer value is the best leading indicator of future market share.
The 5Cs of Driving Market Share is a program developed by Dr. Eric Reidenbach of the Six Sigma Marketing Institute. You can find out more about Dr. Reidenbach and the 5Cs at http://drivingmarketshare.com. 5 Cs is also part of the Marketing with Lean Program Series.
Related Books by Dr. Reidenbach:
Listening to the Voice of the Market: How to Increase Market Share and Satisfy Current Customers
Six Sigma Marketing: From Cutting Costs to Growing Market Share
Value-Driven Channel Strategy: Extending the Lean Approach
Competing for Customers and Winning with Value: Breakthrough Strategies for Market Dominance
Dominating Markets with Value: Advances in Customer Value Management
Download on this site: Best in Market.
Marketing Systems are Out of Control.
Posted by: | CommentsMost Marketing systems are out of control. They have not been managed with understanding of the process speed and the effect of the flow on the process. As a result, performance has to be sub-standard. My marketing has too many variables to define my Value Stream! Can you afford to say that?
Depending on your industry, marketing can be anywhere between 5 to 30% of your total expenses. In most operations that I am familiar with it runs in the neighborhood of 5 to 10%. It is not uncommon to find labor at a similar amount. Would you accept the same amount of variability in your workforce? If you have variability in your marketing, why not cut the budget? Increasing it only will increase the variability. On the other hand, if you have low capacity you have little variation. Is that the problem you want to have?
Variation in demand and in processing time will have a major impact on your total process lead time. If you are functioning close to your optimum level, customers in your value stream, and you get a sudden rush of opportunities, the opportunities will be severally minimized by just variation alone.
How do you minimize variation and get a handle on the process? It has to do with segmentation. If you have not segmented your list properly, you have tremendous variation and the numbers you are looking are skewed. You must segment until you can get a handle on variation. It does not mean you have to segment to, there is none. You have to segment until you can start to minimize the variation that is incurring. You must conquer complexity by narrowly defining your problem.
Related Posts:
Value Stream Mapping for Marketing
Lean your Marketing thru Segmentation
Why would you use Value Stream Mapping Software?
Posted by: | CommentsValue stream mapping is a tool that helps you to see and understand the flow of material and information as a product or service makes its way through the value stream. Value stream mapping is typically used in Lean, it differs from the process mapping of Six Sigma.
A value stream map will take into account not only the activity of the product, but the management and information systems that support the basic process. You will gain insight into the decision making flow in addition to the process flow. The basic idea is to first map your process, then above it map the information flow that enables the process to occur.
Why use Software for Value Stream Mapping? I think th euse of software that is written specifically for Value Stream Mapping is importnat. It forces you to make a decision to drill down into the subject as you are doing it versus later in the process. This particular tool is interesting because of the ability to Excel’s powerful scenarios to analyze multiple sets of numbers without needing to redraw an almost identical map over and over again. Take a look at some of the other features.
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Visually see your entire process flow using the language of Lean to learn to see and eliminate wastes
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Answer the question How can we make only what we need when we need it?
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Form a blueprint for Lean implementation to rally your team to eliminate wastes
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Instant o n-line training for Lean concepts and techniques
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Easily customized written in Excel with all of its familiar formulas and charts
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Professional deliverables easily stored, emailed, and shared
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Drill down to swim lane flowcharts and other related documents
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Import Old comparison data with the click of a button
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Inexpensive to easily share & collaborate
Related Posts:
Simple, Easy to use Lean Six Sigma Software tools
Do you know much value you provide? If not, how can you be more effective?
