Think Like a Customer - Value Stream Mapping to See Waste and Value

THINK LIKE A CUSTOMER

Andrea Darabos Business Improvement Consultant, Coach

[email protected]

Phone: +44 793 604 1196

LEAN ADVANTAGE Ltd.

At LEAN ADVANTAGE, our Mission is tohelp create learning, continuously improvingorganizations and value streams.

Not building the product/serivice right

Why Lean Advantage? LEAN ADVANTAGE Ltd.

Not building the right product/service

60% of employees are disengaged at work

‘Catching the Big Fish’ or ‘Learning to Fish’ ?

LEAN ADVANTAGE Ltd.

Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos

The Problem: How We Create Value

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Etc.CXO

Sales MarketingCustomerSupport

Product/ServiceDesign

Product/ServiceDelivery

CEO

CXO CXO CXO CXO


LEAN ADVANTAGE Ltd.

Value flows this way

The Problem: How We Create Value

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LEAN ADVANTAGE Ltd.

CompanyB

CompanyA

CompanyC

How winning organisations optimizefor value?

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Step 1: What Value (services, products) do we provide to our customers?

Step 2: Who are our customers (internal, external) for this value?

Step 3: What are the steps we do to create this value for our customers?

Step 4: What waste and opportunities can we identify

(based on customer feedback) in our service?

Repeat.


Value Creation

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Step 1: What Value (services, products) do you provide to your customers?

Step 2: Who are your customers for that service/product?

Write down a list of your

- External customers

- Internal customers


How Customers think of Value

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„A tale of two friends”

OUCH!


Customers want: Maximal Value-Adding time as % of Total lead time (Flow efficiency).

Total lead time

Value is created by You, but defined

by the customer

Value-Adding time Non Value-Adding time – BNVA wasteNVA waste

9Copyright © of LEAN ADVANTAGE Ltd. www.leanadvantage.co.ukAndrea Darabos Lean Practitioner, [email protected] , +44 07936 041196, Twitter @ADarabos

Value Analysis

Value-Adding activity• Essential for a good service or delivery of product• Customer is usually willing to pay for this activity• Should be standardized, optimized

Business Non Value-Adding activity• Is necessary for the business (financial, regulations, risk

reduction)• Should be minimized if possible

Non Value-Adding activity• Not necessary & not valued by the customer• Usually, one of the TIM WOODS• Should be eliminated 10


Exploring Customer Needs

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1, Do qualitative

interviews, focus

groups & categorize

needs


2, Ask for quantitative

feedback

(surveys, star rating,

comparison)

KANO model

Customers have many unexpressed needs…

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The 8 Lean Software Wastes (Mary Poppendieck)

1, Technical Debt2, Task Switching3, Handovers4, Failure Demand5, Delays6, Unnecessary features7, Defects8, Skills unused (+1) by Andrea D.

A Product Development Value Stream

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CustomerContact

ProductEnvisioning

Productdesign

Develop Build CTest DeliverIntegrateand Test

Quote &Contract

Deploy

Why Value Stream map?

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• To see yourself with the eyes of your customer

• To understand what customers value

• To save cash and customers’ time

• To catalyze customer-focused improvement

• To enable employees to see the future


How to Value Stream map?

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• Do it collaboratively with all the necessary stakeholders involved• Focus on the actual, current state (AS-IS)

- Understand where you are before you decide where to go• Draw by hand, note down all the current steps involved

- How information and value flows- The communication with tools and customers, suppliers- Gather actual data on lead times, queue times

• Understand customer value as defined by them (VA)• Identify NVA waste, opportunities and start improving


A Few Value Stream Map Examples…

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But don’t forget, the lean toolyou use and the actual picture is secondary.

What is important is thediscussions and ideas thathappen within the team whoworks on the value creation and how they come up with betterways of working together.

A real-life value stream on the wall - 2013 ©

1, Hardware Repair Service Value Stream

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I was working with a global team of customer supportengineers, developers, testers and IC repair centers tounderstand how can they offer better service to theircustomers.

The „hardware” is products that are deployed in highavailability environments (i.e. World Cup or Olympicsstreaming). Thus, it was essential to offer reliablerepair service with short lead times.

The Problems we discovered

• Customers complained aboutlong repair lead times(long tail distribution with 40% of workbeyond expectations)

• The customers wanted better visibility of where the units are in repair and what is happening to them

Then we reflected on this feedback…• We had very little visibility ourselves of

the WIP in the process• Had no idea where the bottlenecks were• People working with repairs were very

busy managing work but customerescalations were common

• We did not feel good ownership of theservice (low morale)LEAN ADVANTAGE Ltd.

After the Customer Interviews

LEAN ADVANTAGE Ltd.

The Repair Value Stream AS-IS

When we started,We had very littledata on our own process(cycle times, what is value-adding, etc.)

Value Stream Notation

20Source: The green book in the end of this ppt.

Timeline calculations and notation:

Source and see more: MINITAB http://bit.ly/1q8mZYKI used the same notation in the examples.

http://bit.ly/1q8mZYK

LEAN ADVANTAGE Ltd.

1, What happened Next?

More about this story and

• Plan Do Check Act on a Value Stream• How to visualize the Value Stream and Empower the Team with

KANBAN• PDCA deployment – i.e. transparency around improvements in

the company via KANBAN…

on our upcoming webinar 9th July, 11 BST.Register now and send your questions in advance.

https://attendee.gotowebinar.com/register/2592989626045424898?utm_campaign=Andrea Darabos Webinar Invite - UK&utm_medium=email&utm_source=Eloqua&elq=ad9e74a70c6a4397a294ba265644f75e&elqCampaignId=110

2, Sales and Fulfillment Value Stream

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I was working with a the same company to help them think about howto make it easier for customers to order products and then how tospeed up the fulfillment cycle.

2, Sales and Fulfillment Value StreamAS-IS, when we started

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2, Sales and Fulfillment Value StreamFUTURE VS depicting the desired state

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Good Reads – Lean Value Creation


ANY THOUGHTS, QUESTIONS?

Feel free to ping meon the contacts below

Andrea Darabos Business Improvement Consultant, Coach

[email protected]

Phone: +44 793 604 1196Twitter: @adarabos

Slideshare:/andreadarabos79

LEAN ADVANTAGE Ltd.

A Few Interesting Events

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• 2nd July – Management 3.0 Workout with Jurgen Appelo

• 9th July – Webinar on Plan-Do-Check-Act with KANBANin collaboration with LeanKit

• 23rd October – Agile Tour LondonCall for Speakers by end of June.