The Value Driven Approach Lean Transformation Strategy By

The Value Driven Approach Lean Transformation Strategy By Value Driven Solutions The Resource for the Lean Enterprise

Value Driven Solutions The Resource for the Lean Enterprise Value Driven Solutions (VDS) is a management consulting firm dedicated to continuous process improvement. Our approach is based on the Lean Principles for manufacturing and service organizations, and the Six Sigma methodology for near-perfect quality. Our Mission “Value Driven Solutions is fully committed to enabling businesses to reach their full operational potential through the implementation of tailored problem solving strategies in the most efficient and cost-effective manner. ” Lean Transformation Strategy © 2015 | Value Driven Solutions 2

The Value Driven Approach The World Class Performance Cycle 1. Identify customers and see value through their eyes. VOC Define Value 8. Continue to improve focused on delighting the customer Share Success & Lessons Learned Corporate Strategy 2. Established based on LSS principles to maximize value. 7. Compare to goals, adjust strategy Customer Analyze Results Develop Metrics 3. Ensure satisfaction of customers requirements 6. Standardize processes Eliminate Variation Maximize Flow Improve Quality 5. Target specific projects using 6σ DMAIC Lean Transformation Strategy © 2015 | Value Driven Solutions 4. Define Value Streams, eliminate waste, and introduce pull systems 3

Business Case for Transformation Business goals and process metrics aligned Quality Customer satisfaction Market growth Lead-time Inventory Total product cost Lean Transformation Strategy © 2015 | Value Driven Solutions Deliver more value to stakeholders 4

Lean Transformation Strategy 5 Steps to Success ! Step 5 Step 4 Step 3 Step 2 Step 1 Roll Out Commence tool flow down through structured events managed by steering committee. Involve all and Share Success! Measure Create Leadership Standard work with steering committee. Establish KPIs at the enterprise, site, cell & process level. Vision Create vision with senior leadership. Establish strategic plan to address gaps from Lean Enterprise Assessment. Create Steering Committee. Prioritize projects according to organizational goals. Roadmap to World Class. Competency Intense workshop for all senior and mid-management on operating methodology and LSS tools. Create Lean Six Sigma Tool Box, for specific business model, and Competency Development Program. Analysis. Perform Lean Enterprise Assessment. Determine the organization’s cultural readiness for change, operational capability, and level of alignment between strategy and goals. Select pilot cell and establish the project’s potential, scope and timeline. Lean Transformation Strategy © 2015 | Value Driven Solutions 6

Analysis Lean Enterprise Assessment The goal of the assessment is to determine the organization's: q Cultural readiness for change q Current state of continuous improvement efforts q Operational capability and flexibility q Relationship among internal processes and with suppliers q Adaptability to the continuously changing competitive environment Lean Transformation Strategy © 2015 | Value Driven Solutions 7

Competency . Educating the Workforce Master Level Creates vision with senior leadership and provides advanced training. Practitioner Level Can Lead, Co-lead & implement events and provide basic training. Associate Level Trained in basic tools can participate and support events Lean Six Sigma Competency Development Track Develop curriculum to certify participants and support the transformation Lean Transformation Strategy © 2015 | Value Driven Solutions 8

Competency The Lean Six Sigma Toolbox VSM DMAIC LSS tools are not one-size-fits-all, introduce tools 6 S sequentially according to Business Model q Type and severity of problems q Level of competency of the workforce q Kaizen There are 3 distinct tool categories Problem solving q Waste elimination q Decision making q Lean Transformation Strategy © 2015 | Value Driven Solutions 9

Vision Strategy Tailored to Specific Business Model Sales & Marketing Mfg & Aftermarket Healthcare Insurance Primary focus is process improvement of strategic intent, not on discovery of waste. Focus on waste elimination, control of inventory, on time delivery, quality, and turn around time Improvements in patient outcome, quality, reduced wait times Linking information to different product design and increased customer service Effort Put Into System Design Will Result in Greater Benefits Lean Transformation Strategy © 2015 | Value Driven Solutions 10

Measure Cross Functional Steering Committee Members q Site leadership and management representatives from key departments (Operations, Sales, Materials, Human Resources, Contracts) q Key stakeholder groups that have an interest in the outcome of the project q Transformation leadership (Lean Transformation Leader, Site CI Manager, etc. ) Responsibilities q q q Approve project deliverables Help resolve issues and policy decisions Approve scope changes Provide direction and guidance to the project Acts as liaisons to executive group and sponsors Lean Transformation Strategy © 2015 | Value Driven Solutions 11

Measure Establish Key Metrics Customer Focus on the Voice of the Customer. Strive to delight customers. Delivery Working every day to meet 100% on time delivery Responsiveness Best in Class Turn Around Time and discrepancy resolution. Quality Zero defect philosophy. Define Metrics for the Enterprise, Site, and Cells based on these four categories Lean Transformation Strategy © 2015 | Value Driven Solutions 12

Roll Out Pilot Event q q q Form cross-functional, multi-level team Match the tools to the problem Document results Share successes and challenges Select next cell or area to improve Continue to monitor results Target cell based on process metrics or value stream data Lean Transformation Strategy © 2015 | Value Driven Solutions 13

Our Vision At VDS, our goal is to provide our clients with… ü a true baseline from which to grow ü help to identify opportunities for improvement of critical processes ü a comprehensive road map to World Class performance VDS offers a balanced and cost effective approach based on: ü exceptional customer support ü knowledge transfer ü innovative solutions. Lean Transformation Strategy © 2015 | Value Driven Solutions 14

Contact Us To learn more about VDS Services please visit www. vdsconsultinggroup. com Interested in seeing how we can help your organization? Call us 1 800 253 5260 Or Email us your questions at info@vdsconsultinggroup. com www. facebook. com/VDSConsulting Value Driven Solutions, LLC @Lean_VDS