© 2014 Karen Martin & Mike Osterling

Value Stream Mapping CharterScope Accountable Parties Logistics

Value Stream Executive Sponsor

Demand RateFacilitator

Trigger

First Step

Last Step

Current State Problems & Business Needs Mapping Team1 Function Name Contact Information

2 1

3 2

4 3

5 4

Measurable Target Condition 5

1 6

2 7

3 8

4 9

5 10

Benefits to Customers & Business On-Call Support1 Function Name Contact Information

2 1

3 2

4 3

5 4

Relevant Data Agreement1 Executive Sponsor Value Stream Champion Facilitator

2

3 Signature: Signature: Signature:

4 Date: Date: Date:

Event Dates & TimesSpecific

Conditions Value Stream

Champion

Base-camp Location

Logistics Coordinator

Meals Provided

Boundaries & Limitations Briefing Attendees

** required *optional

Briefing Dates &TimesImprovement

Timeframe

© 2014 Karen Martin & Mike Osterling

Value Stream Mapping CharterScope Accountable Parties Logistics

Value Stream Value stream being improved Executive Sponsor Required: typically VP or C-level

Demand Rate How many times is this done per wk, qtr, mo, or yr?Facilitator

Trigger What initiates the process?

First Step Task on first process blockNot always needed

Last Step Task on last process block

What is the team NOT authorized to change?

Typically 3-6 months

Current State Problems & Business Needs Mapping Team1 What's driving the need for improvement? Function Name Contact Information

2 1 Leadership-heavy

3 2

4 3

5 4

Measurable Target Condition 5

1 Reduce <defined metric> from X to Y (Z% improvement). 6

2 Increase <defined metric> from X to Y (Z% improvement). 7

3 8

4 9

5 10

Benefits to Customers & Business On-Call Support1 How will the business, internal and external customers, and Function Name Contact Information

2 internal and external suppliers benefit from value stream improvement? 1 SMEs that may not be needed full time

3 2

4 3

5 4

Relevant Data Agreement1 What data is required to understand relevant current state issues. Executive Sponsor Value Stream Champion Facilitator

2 Examples: work volume & volume variation, process quality &

3 effectiveness, market trends, customer satisfaction, employee Signature: Signature: Signature:

4 engagement, financials, lead time, safety records, etc. Date: Date: Date:

Event Dates & Times

3 days typically; consecutive is best; 6 hrs per day minimum; 7 or 8 hrs is bestSpecific

Conditions What circumstances are included and excluded? (e.g., type of customer, geographic location, etc.)

Value Stream Champion

If needed—often director or manager level

Required: skilled, objective person leading the activity

Base-camp Location

On-site, ample wall space, quiet/private location

Logistics Coordinator

Meals Provided

Always a nice touch; keeps the team from wandering

Boundaries & Limitations Briefing Attendees

** required *optional

List the the people that are required to attend the briefings (**) and those whose attendance is optional (*).

Briefing Dates & Times

Aids in consensus building and organizational learning. Typically the last hour of the day.

Improvement Time Frame

© 2014 Karen Martin & Mike Osterling

Value Stream Mapping CharterScope Accountable Parties Logistics

Value Stream Capital equipment Executive Sponsor Allen Ward

Nancy Little

Demand Rate 1,000 per yearFacilitator Dave Parks Surf's Up - Room A

Trigger Customer submits RFQ

First Step Sales reviews the RFQDave Parks Continential breakfast & lunch

Last Step Production ships product

Current State Problems & Business Needs Mapping Team1 Desire to stay ahead of the competition & deepen customer loyalty. Function / Title Name Contact Information

2 Forecasted growth of 15% for next fiscal year. 1 Sales, Director Sean Michaels

3 Unclear & incorrect information flowing through value stream. 2 IT, Director Diana Marie

4 Lead time for RFQ turnaround = 2 weeks; PO to software dev = 5 weeks 3 Finance, Controller Dave Gerald

5 (Competition's RFQ LT is 1 wk and PO to delivery is 4 wks) 4 Scrum Master Ryan Austin

Goals & Measurable Target Conditions 5 Engineering, Vice President Nancy Little

1 Reduce RFQ lead time by a minimum of 50%. 6 Manufacturing, Director Ambreen Motiwala

2 Reduce PO to software development lead time by a minimum of 50%. 7 Customer Service, Manager Danny Tran

3 Improve quality of information flowing throughout value stream. 8 Customer (contract manufacturer) JR Hunt

4 9

5 10

Benefits to Customers & Business On-Call Support1 Faster delivery; less hassle; less cost. Function Name Contact Information

2 Better working relationships between sales, estimating & engineering. 1 Planning / Purchasing, Planner Lourdes Dwyer

3 Freed capacity to absorb additional business w/o increasing staff. 2 Production Supervisor Tom St. James

4 3

5 4

Relevant Data Agreement1 Sales effectiveness: RFQ conversion rate. Executive Sponsor Value Stream Champion Facilitator

2 Financial: Estimate-to-actual cost comparison.

3 Operational: LT in segments (RFQ to quote; PO to development). Signature: Signature: Signature:

4 Date: Date: Date:

Event Dates & Times

July 24-26, 20138:00 am - 5:00 pmSpecific

Conditions Engineer to order, requires both hardware & software customization

Value Stream Champion

Base-camp Location

Logistics Coordinator

Meals Provided

Boundaries & Limitations

No new software; only minor changes to existing IT systems; no additional staff; no budget changes Briefing Attendees

** required *optional

** Allen W (COO), Joe M (CIO), Sal T (VP Sales)* Bruce R (VP Ops), Carlos P (HR), Su T (CFO), Bill M (VP CS)

Briefing Dates & Times

July 24, 25, & 264:00-5:00 pmImprovement Time

FrameFuture state design is fully realized by December 31, 2013.

Order Now!

Karen Martin, Author and President The Karen Martin Group, Inc.

858.677.6799

Mike Osterling, Author and PresidentOsterling Consulting, Inc.

619.572.3632www.ksmartin.com www.mosterling.com