The Value Stream Mapping and PerformancePrism.pptx

Value Stream Mapping (VSM) is a visual management tool used in Lean methodology to analyze and improve the flow of materials and information required to bring a product or service to a customer. It provides a holistic view of the entire process, from the initial raw materials to the delivery of the final product to the customer.
Furthermore, Performance Prism provides a comprehensive framework for organizations to measure, manage, and improve performance in a way that creates value for all stakeholders involved. It encourages a balanced approach to performance management, taking into account the diverse and often competing interests of different stakeholders.
while Value Stream Mapping is focused on improving process efficiency and eliminating waste within specific processes or value streams, the Performance Prism provides a broader framework for measuring and managing organizational performance, taking into account the needs and expectations of all key stakeholders.
while Value Stream Mapping is focused on improving process efficiency and eliminating waste within specific processes or value streams, the Performance Prism provides a broader framework for measuring and managing organizational performance, taking into account the needs and expectations of all key stakeholders.

While Value Stream Mapping is focused on improving process efficiency and eliminating waste within specific processes or value streams, the Performance Prism provides a broader framework for measuring and managing organizational performance, taking into account the needs and expectations of all key stakeholders.

1. TOPIC : Value Mapping Performance Prism

2. What is Value Stream Mapping (VSM)? It is an activity that visualizes the flow of a product or service from the supplier to the customer and allows you to create a detailed visualization of all steps in your work process in which products must pass through multiple departments and or phases before delivery. It displays all the important steps of your work process necessary to deliver value from start to finish.

3. The Benefits of Value Stream Mapping Value Stream Mapping identifies wastes • Wastes – any action or step in a value stream sequence that does not add value to the customers. 7 Common Types of Wastes Defects – It is a waste created by unsellable or refunded goods. Specific Defect Causes include: Poor quality control at the production level Poor machine repair Lack of process standards

4. Overproduction – A waste that can lead to production delays, quality problems, and wasted time. Waiting – Goods that are not being transported or handled on time. Common causes of Overproduction include: Unreliable process Unstable production schedules Inaccurate forecast and demand information Common causes of Waiting include: Unplanned downtime or idle equipment Long or delayed set-up times Poor process communication

5. Underutilized Talent – It refers to team members who have extra time in their schedule for tasks that are not being used. Transportation – Unnecessarily moving physical goods and supplies from one place to another is an example of transportation waste. Examples of Non-Utilized Talent Failure to involve people in workplace design and development Poor Management Lack of Team Training Common Types of Transportation Waste Multiple storage facilities Poor layouts (large distance between operations) Poorly design production systems and large batch sizes

6. Inventory Waste – Overproduction refers to an accumulation of inventory that has become too heavy or created a burden in some way. Motion - Similar to transportation, motion covers wasted resources that go from Point A to Point B, only in this case, it refers to people and not objects. Common causes of Inventory Waste include: Overproduction Inventory Defects Delays in Production Common Motion Waste examples include: Poor workstation layout Poor production planning Poor process design Lack of production standards Shared equipment's and machines

7. Additional Processing – It refers to overworking a certain area, whether that’s extra steps or using too high-quality output for unnecessary aspects of the product or service that don’t have a proportionate effect on the end customer experience. Examples of Additional/Excess Processing include: Poor communication Slow approval process or excessive reporting Human Error

8. The Value Stream Mapping: Makes Processes Efficient This activity allows the company to see where the actual value is being added, or not added, in the process, allowing them to improve the overall efficiency associated with the delivery of the end product to produce maximum output and achieve desired goals. Aligns Cross-Functional Teams for Greater Buy-In It includes all the interdepartmental stakeholders who are involved with the various process stages. Provides Center Point For Conversation On Future Growth After a value stream map is complete, and the stakeholders are in alignment, the map can inform a larger conversation relating to the future vision of the company and establishes shared goals for growth.

9. PERFORMANCE PRISM is an approach to performance management which aims to effectively meet the needs and requirements of all stakeholders .

10. The Performance Prism is a thinking aid which seeks to integrate five related perspectives and provide a structure that allows executives to think through the answers to five fundamental questions: Stakeholder Satisfaction : Who are our stakeholders and what do they want and need? Stakeholder Contribution : What do we want and need from our stakeholders? Strategies : What strategies do we need to put in place to satisfy these sets of wants and needs? Processes : What processes do we need to put in place to satisfy these sets of wants and needs? Capabilities : What capabilities – bundles of people, practices, technology and infrastructure – do we need to put in place to allow us to operate our processes more effectively and efficiently?

11. There are five interrelated perspectives in the Performance Prism framework First Perspective: Stakeholder Satisfaction Organizations exist to deliver ‘value’ to their key stakeholders. Stakeholders will include, for instance, investors, customers, employees, suppliers, regulators, pressure groups et al. ‘ Value ’ will be defined by and be different for different stakeholder groups. Second Perspective: Stakeholder Contribution There is a dynamic and subtle tension between the two sets of wants and needs : What the organization wants and needs from stakeholders as well as what the stakeholder wants and needs from the organization.

12. Third perspective: Strategies Having first decided what respective stakeholders’ wants and needs are, executives must then decide whether and to what extent they will prioritize their satisfaction in the strategies which the organization develops to deliver the requisite stakeholder ‘value’ (whilst also ensuring that its own requirements are satisfied too). Fourth perspective: Processes The chosen strategy must be underpinned by processes aligned and designed to facilitate its successful achievement. Processes are what make the organization work (or not, as the case may be).

13. Fifth perspective: Capabilities Processes cannot function on their own. They need people with certain skills, some policies and procedures about the way things are done, some physical infrastructure for it to happen and some technology to enable or enhance it.

14. Managing with Measures Performance measures are designed to help people track whether they are moving in the direction they want to. what are the wants and needs of our key stakeholders? Four fundamental processes that underpin the development and deployment of a performance measurement system. Design is concerned with understanding what should be measured and defining how it should be measured Plan and Build is concerned with planning how to gain access to the required data, building the measurement system, configuring data manipulation and distribution and crucially overcoming people’s political and cultural concerns about performance measurement. Implement and Operate is concerned with actually managing the measures using the measurement data to understand what is going on in the organization and applying that insight to drive improvements in business performance.

15. That’s a wrap!