Archive for Value Stream
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?
Measuring your value and become more effective
Posted by: | CommentsYesterday I discussed creating a Value Stream Map to discover the value and opportunities you had in your marketing process. Many companies stop, right there. However, the value cannot be determined till it has been quantified. This is where the use of Six Sigma can be utilized so effectively. If we accept the Current Value Stream as correct, we can progress to the measure stage in DMAIC. A Process Map is usually constructed at this stage. Process Mapping is much more specific than a Value Stream Map and should be created for every product or service defined in the Value Stream.
The Purpose of a Process Map:
- Graphical representation of how the process is performed.
- Identify process steps that are non value added.
- Identify data collection points.
- Created for each service. (Ex -Webinar)
- Created for every project and continuously updated.
- Provides a step by step guide for brainstorming and improvement.
A Basic Process map should include:
- Value added and non-value steps.
- Process owners of each step
- Time for each step.
- Defect rate for each step.
A Real Process Map should include:
- All of the Basic Steps
- Input and outputs of each process step (X’s and Y’s).
- Current requirements of each X and Y.
- Defect rate associated with each X and Y.
Creation of a Process Map
- Assemble Team
- Scope the project/process being mapped. Focus only on a particular service/product such as the example of a Webinar above.
- Identify all steps to perform this process and note if this step is value added or non value added.
- Identify the inputs (X’s) and outputs (Y’s) of each process step.
- Capture current specifications, process owners and materials for each X and Y identified.
- 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.
