The Complete Lean Enterprise
Value Stream Mapping for Office and Services, Second Edition
The first edition of this book won a Shingo Prize for Excellence in Manufacturing Research, and now, following in the tradition of its bestselling predecessor, The Complete Lean Enterprise: Value Stream Mapping for Office and Services, Second Edition details a robust step-by-step approach for implementing Lean initiatives in the service industry and office environments.
A must-read for those looking to maximize the value they provide their customers, this new edition describes how to better align value stream improvements to strategic needs. In addition, it engages the entire organization in experimentation and connects a new management system with tiered visuals in support of leader standard work.
This updated edition of a Shingo Prize Winner:
- Features new critical steps in planning and preparing for VSM events
- Includes new content and examples from the service industry, including healthcare
- Provides a new examination of future state mapping
- Details methods for engaging an entire organization in continuous improvement by focusing on socialization
- Discusses the use of experiments to "learn your way" to a future state
- Provides examples of tiered visual management and demonstrates the principles of a lean management system
Providing improved ways to involve your organization in transformation and to sustain your efforts, the book expands beyond the "tools focus" to challenge your organization to think and act differently in order to change the culture of your organization as you become more effective and efficient.
This book details proven methods for aligning the organization for transformation, creating future state visions of improved effectiveness and efficiency, and engaging all levels of the organization in the transformation. After reading it, you will be better prepared to transform your organization to one that not only sustains improvement gains but is more adaptable to shifts in market and customer needs.
Table of Contents
Applying Value Stream Mapping to Information Management
Applying Value Stream Mapping to Office and Service Processes
Purpose of the Case Study
Getting Started: Mapping Office and Service Value Streams
Understanding Value Stream Mapping Basics
Getting Started: Scoping the Selected Value Stream and Choosing the Mapping Team
Identifying Office and Service Waste
Determining Value from Waste in Office and Service Activities
Introduction to the Quick Loan Bank Case Study
Assessing the Current State
Step 1: Document Customer Information and Needs
Step 2: Identify the Main Processes (in Order)
Step 3: Select Process Metrics
Quick Loan Bank Current State
Drawing the Current State Map
Step 1: Document Customer Information and Needs
Step 2: Identify the Main Process Boxes (in Order)
Step 3: Select Process Metrics
Step 4: Perform Value Stream Walk-Through, Fill In Data Boxes
Step 5: Establish How Each Process Prioritizes Work
Step 6: Calculate the System Metrics for the Value Stream
Step 7: Socialize the Current State Map
Designing a Future State
Question 1: What Does the Customer Really Need?
Question 2: Which Steps Create Value and Which Generate Waste?
Question 3: How Can Work Flow with Fewer Interruptions?
Question 4: How Will Interruptions in the Flow Be Controlled?
Question 5: How Will the Workload and/or Activities Be Leveled?
Question 6: How Will We Manage the New Process?
Question 7: What Process Improvements Will Be Necessary to Achieve the Future State?
Quick Loan Bank Future State
What Does the Customer Really Need?
Which Steps Create Value and Which Generate Waste?
How Can Work Flow with Fewer Interruptions?
How Will Interruptions in the Flow Be Controlled?
How Will the Workload and/or Activities Be Leveled?
How Will We Manage the New Process?
What Process Improvements Will Be Necessary to Achieve the Future State?
Achieving the Future State
Tie the Value Stream Design to the Company’s Business Objectives
Identify "Chunks" in the Future State and Prioritize
Develop a Plan to Implement the Envisioned Future State for Each Chunk
Sharing with the Organization
Let the Experiments Begin!
Leading in the Future State
Using the PDCA Model
The Role of Leader Standard Work
Building the Thinking Muscles through Humble Inquiry
Visual Management: Creating a Focal Point for the Management System
Examples of Tiered Metrics
Appendix I: Suggested Reading
Appendix II: Demand Rate
Beau Keyte is the founder of Branson, Inc., a management consulting company focused on the application of lean transformation strategies and techniques. Beau began his "lean" consulting career in the mid-80s at the Ford Motor company. He has clients in wide variety of industries such as automotive, healthcare, financial services, pharmaceutical, paper, chemical, refrigeration, distribution, and transportation. Beau has also successfully tied lean initiatives to the "bottom line" through the application of lean cost management techniques.
In addition to assisting companies in implementing lean strategies, Beau also trains organizations in a variety of public and private settings. He is currently a faculty member and instructor for the Lean curriculums at the Lean Enterprise Institute, the University of Michigan, Ohio State University, and the National Institute of Standards and Technology (NIST), where he has assisted in the development and implementation of a consistent training program for use within small- and medium-sized manufacturers. Beau has co-authored the book, The Complete Lean Enterprise: Value Stream Mapping for Office and Administrative Processes, which received the Shingo Prize in 2005. Beau received a BSE and an MBA from the University of Michigan.
Drew Locheris currently Managing Director for Change Management Associates. CMA provides various Business Improvement Consulting and Organizational Development services to industrial and service organizations. CMA will assist organizations to successfully implement Systems and Quality Management principles within their operations to improve business performance. Since 1986, Drew has been working to implement innovative Business Management strategies in a wide spectrum of business environments. From 1986 to 1990 he worked to develop and deliver Business Improvement programs for General Electric. During this time, he had the opportunity to gain first hand experience in significant business improvement initiatives throughout a large industrial and service company. In 1990, Drew left GE to form CMA. CMA is a consortium of individuals who share a similar business management and improvement vision. They are committed to seeing innovative strategies implemented in all business environments. The CMA approach is practical and application oriented - a 'learn as you're doing and succeeding' approach.
In 1997, CMA partnered with the National Institute of Standards and Technologies', Manufacturing Extension Partnership, to develop a "Lean University". For more information, check out the NIST/MEP Lean Website. Since 2001, Drew has proudly been a faculty member of the Lean Enterprise Institute (LEI), the not-for-profit organization of the co-author of the landmark book "Lean Thinking", James P. Womack. LEI is committed to educating organizations worldwide in the concepts of Lean through its publications and workshops. He is also an adjunct faculty member at Ohio State University delivering Lean related workshops as part of the Fisher School of Business.
In 2004, Drew Locher co-authored book titled, "The Complete Lean Enterprise - Value Stream Mapping for Office and Administrative Processes". In April 2005, the book won the prestigious Shingo Prize for Excellence in Manufacturing. His new book (2008) is titled, "Value Stream Mapping for Lean Development - a How-to Guide to Streamline Time to Market". Drew received a Bachelor of Science degree from the University of Delaware in Mechanical Engineering, as well as a Master of Science degree from Drexel University in Electrical and Computer Engineering. He has also received a Master of Business Administration from Cornell University.
"Beau Keyte and Drew A. Locher have accomplished an ambitious task—one that can benefit anyone concerned with creating maximum value for customers with as little waste as possible. ... Beau and Drew expand the use of the now-proven Value Stream Mapping (VSM) tool to indirect, support operations, and services, locations and sources of so much waste. VSM as introduced by Beau and Drew seeks to enable users to see administrative and service waste, identify its sources, and develop a future state that eliminates it so that scarce resources can then be focused on those activities truly necessary to create value. You could find no two more experienced guides for this journey than the well-traveled Beau and Drew."
—From the Foreword by Dan Jones and John Shook