Intro: Welcome to the E6S-Methods podcast with Jacob and Aaron, brought to you by E6S Industries, your source for expert training, consulting, and leadership in business performance and continuous improvement methods, like Lean and Six Sigma. In this episode number 80, we focus on those "Value Streams in 'Critical Condition.'" Find the path. Here we go. http://bit.ly/E6S-080; http://bit.ly/E6S-iTunes
Objection 1: the value stream can't change. The customer, engineers or management won't allow it… etc.
Counter 1: this is the typical response to all change. Without change nothing improves.
Objection 2: it doesn't matter where the waste is, we need to eliminate all of it.
Counter 2: Listen further and check out the show notes. If we don't change your mind, contact us
Listeners may want to check out episodes 44 and 45 on Value Stream Essentials as well as episodes 60 and 61 on Value Stream Mapping (VSM) for more basic background on this topic.
I VSMs can be more complex than a straight line. This makes their improvement more complex
a. parallel process steps with different cycle times
b. Every branch adds another value stream path with a different lead time
i. eliminating waste in the wrong path will not improve the process lead time
1. Recall "MR TOYOTA" episodes72-77
c. home purchasing value stream example
i. Lead time 3+ weeks
ii. Value added time 1.7 hours; rest is waiting
II Where should we make our improvements?
a. Need to analyze each path individually to understand which path to focus on
i. If very complex process, software can help find the critical path, otherwise just do the math.
1. simulation software like iGrafx or SigmaFlow
b. Choose the "critical path" (i.e. the slowest one)
i. critical path sets the fastest possible rate for the value stream
c. Home buying VSM - why does it take so long?
i. most people might focus on the loan processing time, but that's not on the critical path in this scenario
1. improving it wouldn't improve the lead time for the customer
ii. Would need to focus on the waste in path "C" to make a improvement
1. May also simultaneously work on path "B" if significant improvements can be made in both. "B" could be the next critical path.
To be continued
Outro: Thanks for listening to episode 80 of the E6S-Methods Podcast. Stay tuned for the second half of "Value Streams in 'Critical Condition'" in episode 81. If you would like to be a guest on the podcast, contact us through our website. Join our mailing list! Subscribe to past and future episodes on iTunes or stream us live on-demand with Stitcher Radio. Find outlines and graphics for all shows and more at www.E6S-Methods.com. “Journey Through Success”