Paul Yandell is a manufacturing and supply chain specialist with strong skills in identifying and eliminating waste and improving operational performance.  His particular strengths are building infrastructure to support turnaround and growth situations, building and leading teams in total quality environments and he is bilingual (Spanish).

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What did Mark capture in this presentation? I believe that Mark actually depicts the Social Media Landscape accurately. Mark says, ”99% of interaction take place outside of Social Media!.” Many Social Media pundits will emphasize its importance and  expand to be the focal point for delivering your message. The importance of Social Media has not been about delivering messages but how your “organization’s persona (brand)” has shifted to the hands of the public. This perspective is driving organizations to better understand customers through out the entire customer journey. An end to end value stream, where the focal point is the customer rather than internal operations that ends with a transaction.

Organizations can no longer feed products to customers, as I described in the blog post, Kill the Sales and Marketing Funnel. Customers have the ability to access resources and information comparable to their suppliers and choose suppliers by their own definition of value and how that value should be created. The new wave of marketing has seen an entire new set of tools being used. No longer do we trust print media, radio, television and other forms of traditional media. The tools have all become a commodity. To make effective marketing decisions, you need a clear understanding of what the customer values and what your company strategy is to support them.

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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.

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.

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Value Stream Mapping for Marketing

Lean your Marketing thru Segmentation

If you control it well, it flows well!

Following the Customer’s Need in your Value Stream Map

Technorati : Lean Variation Six Sigma, Marketing Systems, Value Stream

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.

1. Visually see your entire process flow using the language of Lean to learn to see and eliminate wastes
2. Answer the question How can we make only what we need when we need it?
3. Form a blueprint for Lean implementation to rally your team to eliminate wastes
4. Instant o n-line training for Lean concepts and techniques
5. Easily customized written in Excel with all of its familiar formulas and charts
6. Professional deliverables easily stored, emailed, and shared
7. Drill down to swim lane flowcharts and other related documents
8. Import Old comparison data with the click of a button
9. Inexpensive to easily share & collaborate

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Simple, Easy to use Lean Six Sigma Software tools

Do you know much value you provide? If not, how can you be more effective?

5 Step Process to Lean Marketing

Technorati : 6 Sigma, Excel, Lean, Mapping, Six Sigma, Software, Value Stream

The Purpose of a Process Map:

1. Graphical representation of how the process is performed.
2. Identify process steps that are non value added.
3. Identify data collection points.
4. Created for each service. (Ex -Webinar)
5. Created for every project and continuously updated.
6. Provides a step by step guide for brainstorming and improvement.

A Basic Process map should include:

1. Value added and non-value steps.
2. Process owners of each step
3. Time for each step.
4. Defect rate for each step.

A Real Process Map should include:

1. All of the Basic Steps
2. Input and outputs of each process step (X’s and Y’s).
3. Current requirements of each X and Y.
4. Defect rate associated with each X and Y.

Creation of a Process Map

1. Assemble Team
2. Scope the project/process being mapped. Focus only on a particular service/product such as the example of a Webinar above.
3. Identify all steps to perform this process and note if this step is value added or non value added.
4. Identify the inputs (X’s) and outputs (Y’s) of each process step.
5. Capture current specifications, process owners and materials for each X and Y identified.
6. Identify and document all data collection points within the project scope.

I have included this process for a single step in the diagram below for a graphic understanding of the process. Don’t get hung up
on the X, Y, f or the equation. Just start looking at the basic process. I find out the people that want to go to the next step will
and the ones that don’t still receive value in this exercise. They will just rely on “Tribal Knowledge” versus data.

That’s it! But what about results and what we are going to do about all this. This is simple beyond the scope of this step. In the Six Sigma Process of DMAIC, we are only at the Measure stage. The next stage is Analyze. I wonder what we will do next.

Technorati : DMAIC, Value Stream, lean, marketing, measure, process map, six sigma