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Wednesday, September 30, 2009

Lean Transformations and Real-Time Performance Analytics

Tom DeForge discusses Lean Transformations and Real-time Performance Analytics. I first became acquainted with Tom because of the work he did in the Lean Turnaround that took place at PAS Technologies. Bob Weiner, CEO of PAS spoke very highly of Lean Value Solutions International and the role that LVSI played in the successful implementation of Lean at his organization. Tom also discussed a new software package designed for “Driving Lean Behavior through real time analytics.

Lean Value Solutions International (LVSI) is the destination for organizations seeking results-based partnerships that require rapid results - whether the assignments are strategic or tactical in nature. Regardless of the size of your organization, the fundamental obstacles to implementing a Lean strategy are fundamentally the same. LVSI provides the expertise and infrastructure necessary to help you implement strategy and align culture, processes and execution to achieve a series of quick results along a roadmap that is focused on achieving sustainable competitive advantage.

 


Lean Value Solutions -

Related Blog Posts:

Lean Value Solutions Podcast

Lean Transformation Discussion

PAS Technologies CEO, Bob Weiner discusses a Lean Transformation

It takes guts, to start with lean training in a turnaround!

Monday, September 28, 2009

Value Stream Mapping

 

Value 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.

Val Stream.JPG

Why use Software for Value Stream Mapping? I think the use of software that is written specifically for Value Stream Mapping is important. 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 on-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

Did you know you could draw your Value Stream Map in Excel

Value Stream Mapping

Friday, September 25, 2009

Elevating and Repairing Marketing Constraints

A continuation of my blog posts of Using the Theory of Constraints with your

Marketing HourGlass. We are concentrating optimizing the Throughput of the Marketing Hourglass utilizing the Five Steps of Continuous Improvement, Steps 4 and 5.

Step 4.  Elevate the system’s constraint.

You may have found significant improvement in the preceding steps and another constraint may have actually developed at this time. This is the step that we have to add capacity to the constraint. It may be additional events, sales people or increased advertising.

Reviewing the Marketing Hourglass you may have found significant shortcomings in one of the phases. You may have never instituted a formal referral program, for example. You may not have a presence in Social Media.

Jumping into this step early in the process is very common. The newest and/or the latest technology may seem an easy fix. Looking to vendors for your fix is an easy alternative, but you may not find the core problems associated with the constraint if you did. There is a reason this is the fourth step, and you should make every effort to improve the constraint through the fist three steps before adding equipment, software, increased advertising, etc.

This may also be the area that “Tribal Knowledge” may limit your thinking. We defend what we have always done. Look at new and different ways to accomplish the constraint.

Hourglass3

Step 5. If a constraint is broken, go back to Step 1. However, don’t allow inertia to become a constraint.

You will always have a constraint. A fundamental concept of continuous improvement. As you correct one another will develop. As in Lean this is a fundamental concept of TOC.

Mot organizations have an unlimited number of things to improve. However, most of the time only a relative few will make a significant difference in your company’s bottom line. If you are going to improve something , IMPROVE IT.

Why waste everyone's time? Changing the process without the data is cause for failure. You have heard it time and time again, JUST DO IT! We have been trained that way, action is accomplishment. However, the wrong action may accomplish little or drive you deeper into a hole. Without the data from the previous steps, you will not be able to make as effective and dramatic improvements that you desire. Seek 200% process improvements and cost reductions of half!

One of the sayings I have read about in TOC time and time again. Don’t leave inertia become the constraint. Change should help your performance, not hinder it.

Related Posts:

Using the Theory of Constraints in Marketing

The Marketing Hourglass

Using your Marketing HourGlass to determine your Constraint

Identifying your Marketing Constraint

Exploiting and Subordinating your Marketing Constraint