Category Archives: Tools

Book Review: Value Stream Mapping

Karen Martin and Mike Osterling are consultants that have been helping companies with seeing their business through a different lens.  Karen and Mike have co-authored two books in the past: The Kaizen Event Planner, a well written how-to guide for planning, executing and following up after a kaizen event and Metrics-Based Process Mapping, a how-to for using key metrics to analyze and improve processes.  Value Stream Mapping is their third book together and again they have done a fantastic job.

Name of the Book:  Value Stream Mapping: How to Visualize Work and Align Leadership for Organizational Transformation

Author: Karen Martin and Mike Osterling

Publication Date:  December 2013

Book description: what’s the key message?

Karen and Mike explain the in’s and out’s of understanding and completing a value stream map.  They discuss how a value stream map is a tool that can help senior leaders and executives see their business in a new way.  A transformative way.

Karen and Mike take the reader through all the steps.  They explain the importance of setting the stage prior to the starting the value stream map in order to enable success in changing the business.  Karen and Mike also walk the reader through the best ways to understand the current state of the business and the importance of understanding the current reality no matter how sobering it is.  Next they walk the reader through developing the future state and then the transformation plan.

This book is not just a “Go do it this way,” book.  The book is very complete and explains why the process they describe works.

What are the highlights? What works?

Most people miss the main point of value stream maps.  They are about changing the mindsets of an organization through building a strategic direction with a lean lens.  Karen and Mike do a great of reiterating this point throughout the book.

If you have never seen or been through a value stream mapping session this book is a great guide.  The explanations are spot on.  Karen and Mike hit on the most important metrics that can be used on a value stream map in order to get the most out of it.  They explain how the map is not complete without the metrics, which is something a lot of people will leave off when doing the map.

The examples of value stream maps in the back of the book can help a reader with guidance in building their own.  I know they are in the appendices but it is worth it to study all the examples.

The book also has a link to a downloadable charter and transformation plan templates.  I found them to be very helpful.

What are the weaknesses?  What’s missing?

The book is very well done.  Not only a step-by-step but a great explanation of why for each step.  There is one thought that I believe is missing in doing a value stream map.  That is the concept and discussion around ideal state.

When doing a value stream map, I find invaluable to have a discussion on the difference between ideal state (perfection) and future state (somewhere between current state and ideal state).  Usually, this discussion takes place after building the current state map.  The team writes out bullet points of what the ideal state would look like.  After that is completed, then build the future state.  The ideal state discussion helps to stretch the thinking of the team and as Karen and Mike put it “help change the DNA of the organization.”

Having a direct conversation around ideal state is a step that I feel is important and I wish Karen and Mike would have spent some time on in the book.

How should I read this to get the most out of it?

The book can be used in two ways.  One way is by someone that has been tasked to help an organization create a value stream map.  It can be used as a learning text book.  It can help the reader learn the in’s and out’s of creating a value stream map and give them guidance.  Or even as a refresher for an experienced value stream map facilitator.

Another way for the book to be used is as an education piece for executives and senior leaders that want to change their business.  It can help them understand their role in the value stream transformation process and how they can help the facilitator before, during and after a mapping session.

Kudos to Karen and Mike for another great book.

OEE in the Lean News

I saw a post from Michel Baudin, Is OEE a Useful Key Performance Indicator?  I don’t think it is.  A few years back I wrote a blog about OEE and how it is very unclear as to what is really happening in a facility.  It violates nearly every rule as to what is a clear and relevant metric.

Michel’s post started out with a bit from Jeffrey Liker’s post about OEE.  This is the piece I found interesting from Jeffrey Liker:

Ignacio S. Gatell questions whether companies using OEE really understand it, can explain it clearly to their customers, and understand what it means to compare OEE as a KPI across plants. He questions whether even plant managers understand how it is calculated and what it means.

The only good argument for OEE is that at a macro-level in a plant it provides a high level picture of how your equipment is functioning.

I have to agree with Liker’s statement.  OEE is good for a macro level idea of what is happening but you can’t understand what is happening without splitting it up into the components.  Seems like Michel Baudin is thinking the same thing.

It is an overly aggregated and commonly gamed metric that you can only use by breaking it down into its constituent factors; you might as well bypass this step and go straight to the factors.

This is one of those blogs that gives me some of my sanity back.  OEE seems to be so entrenched in “good business practices” it is hard to get people to move away from it.  I get a lot of looks like I am completely crazy when I bring up my point of view.  Thanks, Jeffrey and Michel.  I see I’m not the only one now.

Value Streams Are Misunderstood

I really like seeing more and more organizations trying to implement lean.  Seeing organizations start to understand lean and want to improve using the lean mindset and principles is very refreshing.  A great step in the right direction.

But not all lean starts are created equally.  Or for that matter even get off on the right foot.

I recently saw a company giving a presentation on some HR practices and apprenticeship.  They were doing some really great stuff around apprenticeship for a machining shop.

What caught my eye was their comments about lean and aligning to value streams.  The company listed their value streams on a slide.  The first few sounded more like machining functions rather than a value stream but I don’t understand the business so I could be wrong.  Then I saw the bottom half of the list: Accounting, Project Management, Human Resources, etc…

Yikes!  These are not value streams.  These are functions that support value streams.

Misunderstanding of value streams is quite normal.  In order to be a value stream, it has to create value for the customer.  To understand what creates value a company has to have a definition of value.

I use one I learned from the Lean Learning Center:

  • The customer must be willing to pay for it
  • It must change the form, fit or function of the product/service
  • It must be done right the first time

In a machining shop, accounting does not create any value for the customer.  Nor does Project Management.

Value streams are linked process that create value to a product or service for customer.  The are not departments (accounting , project management) or functions (milling, cutting).

Grasping the true meaning of value streams and what your companies value streams are can really open your eyes to the improvement possibilities.

My Continuous Improvement: Personal Kanban – 4th Revision FAILED!

A couple of years ago, I read a blog post by Tim McMahon about his experience with using personal kanban to manage his work.  It inspired me to try my own.  The first one didn’t work as I mention here.

Then I tried again.  I had great success with the 2nd board.  I used it for a year and a half.

With a new role where I have multiple desks, I am constantly in different areas of the building.  I may not be back to my desk for several days or even a couple of weeks.  I wasn’t able to keep my board up and I had work to do written in several places.

I wanted to find an electronic kanban that would work for me.  I found one that worked well.  It was a computer only board.  I explain it more in this post here.

This new electronic kanban work well.  I could take a note or email myself on my phone with what needed to be on it and then transfer it when I got to my computer.  If I had my computer with my, I just added right then.

As a person always looking to eliminate waste, you can see where there was waste in emailing myself and then re-typing it for the kanban board.  A friend of mine recommended Trello for me to try.  It was web-based.  I was able to download an app to my phone which I could open and enter the work and not send myself emails to re-enter.

Everything looked great so I gave it a try for the last 3 months of last year.

It wasn’t hard to use.  It had plenty of features and it was setup very similar to the electronic kanban I was using.  For some reason, I couldn’t get the flow of it.  Trello was not working for me.  I tried for three months and I couldn’t get into the flow of using it and making my life easier to manage.

I have no idea why it didn’t click with me but it was a disaster.  I forgot some things that needed to be done.  I felt disorganized and stressed.

So, to start 2014 I am going back to my electronic kanban board on my computer and not using Trello.  I already feel more organized and less stressed since I switched back.

I’m not dismissing Trello yet.  I need to reflect as to why it wasn’t working for me.  Was it something truly with Trello?  Or did it have something to do with the enormous project I was on and I just couldn’t keep up with trying something new at the same time?

The important thing is to understand what was happening because maybe Trello can work for me and help me reduce my waste in maintaining my kanban board.

Learning is important and not just living with a change because we need to change.  The change needs to be given a fair chance and if it is failing then you can’t be scared to change back if necessary.

Does anyone else have any experiences with a change that totally failed?

Buying New Equipment? Use What You Got.

During some recent blog reading, I was spurred to think about a past situation when a company I worked for was buying new equipment and how WRONG this decision was.

I had been with the company for about four weeks when I heard about a capital expenditure my director had just approved to buy nine more of a patented machine.  My company owned the patent.  That would give us a total of 99 of these machines.

First question I asked, “Why are we buying more of these machines?”

The response was a typical one, “We they need more capacity because we are meeting the demand.”

I didn’t ask anymore questions at that point.  I decided to go and see for myself.  This was easy because the corporate offices we were in was part of the main manufacturing building.  I had to walk about 100 yards.

During my observations I found two things:

  1. The overall OEE of the 90 machines was around 35-40% when it was running.
  2. At anytime I never saw more than 50 of the 90 machines running.  This was because we never had enough people to run all the machines.

SAY WHAT?!?!!

After a few hours of direct observation, it was clear there was no understanding of what was really going on.

First, attack changeovers and downtime to get the OEE of the machine up to the 75% range.

Second, why buy more machines if we can’t staff them?!

By my calculations, if the OEE was raised to the 75% range, not only would we not have to buy more machines we could get ride of about 20-25 machines we already had.  That would mean our current staffing would be pretty close to what we needed.

I presented this to my new boss and the director, but by this time it was too late.  The money had been cut and were pretty much crated and on the road to our facility.

This is why companies should question any new capital expenditures.  Companies should be maintaining and using what they have first.  The OEE should be at least 70% if not higher before considering adding more capacity through spending.

Do not make any decisions about capital expenditures until the current state is thoroughly understood.  The best way to do that is to go and see for yourself.

Counting Down the Top 10 Viewed Posts of 2013 – 5 Thru 1

2014 is now in full swing.  Before 2013 is too far in the rear view mirror, I thought I would recap the Top 10 most viewed posts on Beyond Lean for 2013.

New followers of the blog can use this as an opportunity to read posts they might have not seen in the past.  While, long time followers can use this as an opportunity to re-read some of the top viewed posts.

This post will count down the 10th thru 6th most viewed posts of 2013.  Enjoy!

5.   Making Leader Standard Work Visual (June 2011) – Previous Year Ranked #9 – An example of a visual board from a group I worked with.  The board makes the tasks and if they were completed by the managers visual.

4.  Don’t Over Complicate the Formula (October 2011) – Talks about simplifying formulas to get you directionally correct especially with calculating kanbans.

3.  Need the Mental Toughness of a Navy SEAL (February 2012) – Previous Year Ranked #4 – Inspiration of a Navy SEAL got me thinking about the mental toughness it takes to create change.

2.  Keys to Sustaining 5S (September 2011) – Tips to help sustain (the 5th ‘S’) the gains made from implementing 5S.

AND……

1.  5S in the Office (September 2010) – Previous Year Ranked #3 - Most viewed post for two straight years now.  A look at using 5S in the office.  What is going too far and how to use 5S in the office properly.

I hope 2014 is a great year!

Top 6 – 10 of 2013

Blog Carnival Annual Roundup 2013 – Personal Kanban

At the end of the year, John Hunter does a great job of facilitating an annual roundup of business and lean blogs at Curious Cat Management.  The roundup is a review of blogs by other bloggers.  This year I have the honor of participating in the Blog Carnival Annual Roundup.

Personal_Kanban_Logo

A couple of years ago, I read the book Personal Kanban by Jim Benson and Tonianne DeMaria Barry.  It is a great book that helped me along my personal kanban journey.  From the book, Jim and Tonianne create a blog called Personal Kanban.

There is a great series of posts to help with managing your kanban boards.  The topics include how to categorize your backlog to make it easier to understand what work there is left to do, but before you categorize your backlog you should clean it out.  Clean out what is needed and what isn’t needed any longer.  And how to clean up the done column on the board.  The series has some great advice and hints to improve the use of your kanban board.

There are pointers on how to focus the work on a more important project.  This post discusses using a larger post-it note for the focus project and the team members being instructed to pull work from here first.

No matter if your a novice or been using kanban boards for a very long time, Jim and Tonianne have great pointers and examples to help everyone improve upon their usage of kanban boards.

Blog Carnival Annual Roundup 2013 – Lean Blitz

At the end of the year, John Hunter does a great job of facilitating an annual roundup of business and lean blogs at Curious Cat Management.  The roundup is a review of blogs by other bloggers.  This year I have the honor of participating in the Blog Carnival Annual Roundup.

Lean_Blitz_logo

A blog that I discovered a couple of years ago was Lean Blitz written by Chad Walters.  I like Chad’s unique way of relating lean and continuous improvement to the sports world, because there are plenty of examples throughout sports to do this.

Take the respect for people as an example.  The NFL was ripe with instances of disrespect this year, from the Miami Dolphins’ handling of the bullying in their locker room to the Tampa Bay Buccaneers’ unclean locker room leading to three players getting MSRA infections.  Not only in the NFL but in college also.  This post talks about Coach Kelly at Notre Dame not listening to his players when something was wrong with the gauntlet machine.  Chad tackles the issue head on in his posts.

Another topic on the blog is error proofing.  Chad talks about how Clemson and Notre Dame handled a color out night at their school for a football game.  Clemson was a huge success while Notre Dame not so much.  He shows some of the differences.  Another favorite is how sprinklers popped up in the middle of an NFL game at the end of last year.

Chad has created a unique blog at Lean Blitz.  It is a fun and different way to demonstrate lean principles in action in any environment.

Best of Beyond Lean in 2013

Today I am highlighting the five most popular posts written in 2013.  Then in January I will post the Top 10 posts for the year.

Enjoy and have a Happy New Year!!!!

5.  Visual Management at Home (February 2013) – A great example of a visual board used at home of a friend of mine.

4. Hoshin Planning – Catch Ball (April 2013) – A great video explaining the process of catch ball during the strategy development process.

3.  My Continuous Improvemnt: Personal Kanban 3rd Revision (January 2013) – The latest update to my evolving personal kanban for work.

2.  Guest Post: Moneyball – Hoshin Kanri (March 2013) – Chad Walters does a great job explaining strategy deployment using the movie Moneyball

1.  When Standards are in Place, Everything is an Experiment (May 2013) – Talks about the importance of setting standards and using them to understand your processes.

Have a Happy New Year!!!!

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