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Value Stream Mapping and
Management
APICS Greater Jacksonville Seminar
December 5, 2002
Presented by:
Beau Keyte, LEI Faculty
Agenda
1. How We Got Here
2. Value Stream Mapping
3. Value Stream Management
The lean transformation
should provide:
Growth with improved margins
Growth with minimal capital
Growth without more employees
What are our main stumbling
blocks?
75 years of bad habits
Financial focus with limited cost understanding
A lack of system thinking and incentives
Metrics supporting a 75 year old model
Limited customer focus
Absence of effective operating strategies
How have we elected to address
these stumbling blocks?
Programs of the month (band aids)
Meetings, meetings, meetings, meetings
Silo optimization
What’s the impact of “silo”
improvements?
“Plant to plant” key players
Material Control
Purchasing Transportation
Slide courtesy of HLS, Inc.
If we could just start over…..with
Activities aligned with our business strategy
Efforts focused on NET improvements for the
company
Metrics supportive of fundamental change
Simple, constant communication of our plans
and achievements as an enterprise
Why not take the value stream
perspective?
“Whenever there is a product (or service) for a customer,
there is a value stream. The challenge lies in seeing it.”
3 enterprise value streams:
Raw Materials to Customer - Manufacturing
Concept to Launch - Engineering
Order to Cash - Administrative Functions
A Value Stream is the set of all actions (both
value added and non value added)
required to bring a specific product or
service from raw material through to the
customer.
Value Stream Improvement vs.
Value Stream Improvement vs.
Process Improvement
Process Improvement
Value Strea
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