Here we talk about Step 3 of your current state value stream map – i.e., defining the goal. Make sure you check out the first and second steps before you start reading this article! Here’s a recap of the steps that I recommend you to follow initially while making your CSVSM:
Figure 1 – Steps to construct a CSVSM
Step 3: Define Quantifiable Goals
How should you define quantifiable goals for the ‘process in scope’?
You must ensure that the defined goals align with the current year’s business goals and objectives.
Let’s look at a practical example of defining quantifiable goals:
- Current year business goal – Reduce manufacturing costs by 5%
- You work in Department 3, which deals with the necessary raw materials from a supplier. There are three categories of materials – A, B, and C. ‘A’ category material is the costliest! Therefore, you may define the goal as reducing the cost of raw materials in ‘A’ by at least 5%.
- Improvement goals usually align with:
- Increase in productivity
- Improve quality
- Reduction of turnaround time
- Reduction of lead time
- Increase in efficiency etc.
As a management consultant, I prefer that a company develops an ‘end to end’ value stream. This approach would identify both improvement opportunities and goals.
When can you implement this approach?
- This approach works when Lean implementation is a part of the company’s long-term vision.
- If you a working professional and your company doesn’t follow Lean principles, this approach will work.
- If your company follows Lean, but your department is not involved in the journey, this approach will still work.
It is possible to develop a current state value stream map even without a goal. You can still identify improvement opportunities. However, the question remains – how will you set your priorities?
Here’s your answer: if the goal of your current state value stream map is to improve quality, opportunities rank will be based on where quality is damaged the most.
Click here to read the fourth step to making your current state value stream map – i.e., identifying your customer!