Operations Management Project Part A: Value Stream Mapping and Analysis
Operations Management Project Part A: Value Stream Mapping and Analysis
Overview
A core tool in Operational Excellence is Value Stream Mapping. This tool helps stakeholders visualize complex work systems (including material and information flows) and address disconnects, redundancies, and gaps in how work gets done between the beginning and end of a value stream or end-to-end process.
• The primary type of value stream is one in which a product or service is requested by, and delivered to, an external customer. Examples include request to receipt, order to delivery, and quote to cash.
• Other value streams which support the delivery of value are called value-enabling or support value streams. Examples include recruiting, onboarding, IT support, and annual budgeting.
Since it is nearly always a mistake to initiate changes without have a clear picture of how the system is currently functioning, we are beginning our Course Project with the creation and analysis of a Value Stream Map.
Instructions
For this assignment, select a value stream in your organization that can benefit from analysis and improvement. As noted previously, the value stream (or end-to-end process) selected does not need to be overly large or complex. Select something which has the potential for meaningful improvement, but which is manageable within the scope of this assignment.
1) Develop a current state Value Stream Map of your selected value stream. Show the customer demand rate (or Takt), information flow, work flow, and summary timeline on the map.
2) Document key metrics for each process block:
• Process Time (PT)
• Lead Time (LT)
• Percent Complete and Accurate (%C&A)
• Any other appropriate metrics, such as number of operators, changeover time or setup time, batch size, and % uptime.
3) Calculate the current state summary metrics:
• Total lead time (TotalLT)
• Total process time (Total PT)
• Activity Ratio (AR)
• Rolled Percent Complete and Accurate (Rolled %C&A)
4) Describe the current state of the value stream and highlight any performance deficiencies and challenges, such as delays, excessive WIP, bottlenecks, capacity and workload imbalances, rework, poor quality yields, long lead times, and other operational issues.
Submission Requirements
Your work may be submitted in either Word or PowerPoint.
• Since you will need to include a diagram to map the value stream for #1, you should select whatever software you are most comfortable working with. The Value Stream Map can easily be created in PowerPoint (see the symbols and template provided by the instructor), or neatly drawn by hand.
You may also use software such as Visio. In all cases, please scan or convert your map to a PDF or JPG, and paste it into Word or PPT before submitting.
• For #2, the information for each process block should be on the value stream map. For #3, it can be on the map or in tabular form. Show how the summary metrics are calculated. Keep your written answers brief and to the point. Accuracy is what matters. This should take no more than one page.
There are no additional points for overly elaborate responses.
• For #4, a thorough response with specifics should take no more than one page. As you discuss improvement opportunities, mention and make specific reference to the Value Stream Map, including names of process blocks and performance metrics.
JWI550 OPERATIONAL EXCELLENCE
Assignment 2
Operations Management Project Part B: Detailed Agenda(s) for Kaizen or Work-Outs
Overview
Kaizen events or Work-Outs are one- to five-day rapid improvement events widely used in the deployment of Lean and Operational Excellence. Jack was a huge fan of Work-Outs, which were so named because the focus was on getting the unnecessary work out of the system. These events were NOT just brainstorming sessions, but were well-planned and highly structured events that had:
? A well-defined process and set of expectations going in
? Sufficient time and freedom from distraction so participants could focus on the issues being discussed
? Participation by key stakeholders all the way from line workers to senior management
? Clearly defined requirements for decision and action
The second component of your Course Project is to construct a detailed agenda for such an event. The agenda must demonstrate how you will get input from key stakeholders involved with the selected process, use the Lean tools, and conclude the event with actionable improvement outcomes.
Instructions
Use your work from Part A of the Project to identify improvement opportunities in the value stream that are suitable for Kaizen events or Work-Outs.
1 ) List the potential Kaizen events, select the one to be deployed, and justify your selection. Then, define the Kaizen objective and scope for the selected event.
2 ) Develop a detailed agenda for your selected Kaizen event. Use a tabular format, showing:
• Days and times
• Session topics
• Lean tools to be used
• Deliverables or outputs
• Rationale
Day Time Session Topic/Objective Lean Tools Output/Deliverables Rationale
3) Explain your choice for number of days and sequence for session topics, and justify the Lean tools to be used and outputs from each session. Show how your Kaizen agenda supports the Kaizen objective and scope for the event. This discussion should be specific to your value stream and organization.
Submission Requirements
Your work is to be submitted in Word. Total length should be 3 to 4 pages, including the actual agenda. You are free to organize your submission in whatever way you feel best presents the material and makes it easy to understand. Typically, this will mean presenting each day’s tabular agenda in granular detail (15 minute to 2-hour timeslots with details for each session), and then providing supporting pages with additional explanations.
As guidance, design this as a document you would share with your team and/or your supervisor. It should be detailed enough to clearly explain how the event will be structured and why, but concise enough that it will actually get read.
Note: A generic agenda for a Kaizen event or a generic Lean discussion is not acceptable.
JWI550 OPERATIONAL EXCELLENCE
Assignment 3
Operations Management Project Part C: Six Sigma Project Charter
Overview
Six Sigma projects are powerful tools for achieving breakthrough improvements. Improvement projects utilize the DMAIC methodology, while design or re-design projects use the DMADV methodology. Such projects can be undertaken for large or small initiatives. But because they require a fair bit of work in planning and engaging the team, they are usually applied in situations where a significant change effort is likely to lead to an outcome well in excess of the work put into the project.
In the first two parts of your Operations Management Course Project, you have: (A) mapped and analyzed the value stream, and (B) organized a Kaizen or Work-Out to address improvement opportunities which do not require rigorous data analysis. Now, you are ready to move forward with one or more projects that leverage the power of Six Sigma’s tools and rigorous data-driven analysis. A project charter is needed for each proposed
Six Sigma project. Project charters enable management to understand, evaluate, and approve projects for launch.
Instructions
Use your work in Part A and Part B of your Course Project, as well as what you have learned so far in this course, to identify a potential Six Sigma project that can benefit the value stream and your organization.
1) List and describe potential Six Sigma project(s) that you would propose to senior management, recommend one project, and justifyyour selection.
2) Develop a detailed Project Charter for your recommended project. The project charter must include the following:
a. Problem statement
b. Goal statement or objectives
c. Project scope
d. Critical-to-quality requirements, or CTQs, of the processes within the scope of this project
e. Key metric Y (or key metricsY)
f. Expected operational and financial benefits of the project
g. Milestone dates for each phase of DMAIC (or DMADV)
h. Project team (titles of project team leader and members)
i. Champion (title of executive or senior manager)
Submission Requirements
Your work is to be submitted in Word. Total length should be 3-4 pages. Since this is a charter, put some thought into how best to present the material visually. Use the instructor-provided Project Charter Template as a guide. At an absolute minimum, you should include clear headers and sub-headers. You may also want to call out certain elements, like timelines or key milestones, using graphics, tables, or colors to make the charter visually appealing and easy to read.
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