"Lean and Agile Value" Kevin Notheis EMEN 5500 Nov. 28, 2012

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"Lean and Agile Value" Kevin Notheis EMEN 5500 Nov. 28, 2012 by Mind Map: "Lean and Agile Value" Kevin Notheis EMEN 5500 Nov. 28, 2012

1. Goals

1.1. Provide value to customers

1.2. Continuously improve value processes

1.2.1. How do we do this? See below...

2. Scope

2.1. One's span of control or strong influence

3. Principles

3.1. Lean

3.1.1. Create customer value

3.1.2. Eliminate waste

3.1.3. Improve flow

3.1.4. Reduce cycle time

3.1.5. Continuous improvement

3.1.6. Visual management

3.2. Agile

3.2.1. Focus on business priorities

3.2.2. Eliminate no-value work

3.2.3. Early and frequent delivery

3.2.4. Short iterations

3.2.5. Frequent learning cycles

3.2.6. Focus on people over process

4. Approach

4.1. Identify stakeholders

4.1.1. Who are stakeholders? Customers Employees My boss Anyone impacted by the process

4.1.2. Don't necessarily cater to them, but be aware of them

4.2. Choose customers

4.2.1. Who are customers? The next user in the value chain Whoever writes the check The end user Potentially others...

4.3. Determine customer value

4.3.1. Potential customer value Find or create a need Lead users Anthropology Advertising Word-of-mouth Customer request or complaint Intelligent escalation Intelligent delegation For-fee > Product line Develop or identify a technology License Purchase patent portfolio Universities Open innovation Successful competitors Reverse engineering Recuritment Acquisitions Corporate ventures

4.3.2. Customer value models Job to be done Do a specific job for the customer Lean consumption Provide exactly what the customer wants... Exactly where it's needed... Exactly when it's needed... And don't waste the customer's time Kano model - customer perception of your good/service Expected value Specified value Delightful value Consider the marketing 4 Ps Product Price Place Promotion Listen to the customer Agile approach - key on the voice of the customer Involve the customer viewpoint when defining requirements Define the customer benefit package Tangibles Intangibles

4.3.3. Value chain Coordinate the flow of materials, services, money, and information along the elements of the supply chain Achieve the best combination of: End user value Customer value Shareholder value Stakeholder value Over the long run

4.4. Execute and continuously improve the value process

4.4.1. Have a standard process Types of flow processes Projects Job shops Flow shops Continuous flow The perfect process feels right and is best for... Customer Business Employee NOT the boss NOT any functional group

4.4.2. Follow the process without exception Must consistently follow the process before you can improve it

4.4.3. If an anomaly is detected, stop the process Jidoka Definition = Providing machines and operators the ability to detect when an abnormal condition has occurred and immediately stop work Production Jidoka - operations stop Client Jidoka - product use stop Steps for stopping and resolving Detect, stop, alert - methods: Stop production and client use Correct immediate condition, restart Find root cause - tools: Find great solutions - attributes: Implement great solutions

4.4.4. Improve the current process Empower people to suggest process improvements Rely on the people carrying out the process Processes to improve processes - tools: Balance push-pull To increase pull and decrease push, reduce... Reduce waste Eliminate waste in processes Eliminate idle waste - types: Reduce cycle times Why? It creates opportunities: How? Bullwhip effect - minimize whiplash Postponement - determine early/late differentiation Postponement of differentiation Service postponement Choose/Modify supply chain type Functional product supply chain Innovative product supply chain Choose/Modify supplier management model Arms-length model-process Partner model-process

4.4.5. Test the new process

4.4.6. If test is successful, implement the new process

5. Outcomes

5.1. Increased customer satisfaction

5.2. Increased throughput

5.3. Improved employee satisfaction

5.4. Opportunities for business expansion

6. Introduction

6.1. This model depicts the use of Lean and Agile methods to deliver customer value. As you expand the nodes you expose additional levels of detail. You also generally move from higher level concepts down to tools, methods, and examples. Sources for this model are the lecture notes from EMEN 5500, notes I took during the lectures, and a few other sources that are noted where they are referenced.

7. Conclusion

7.1. I do not have any suggestions for improving this assignment. I think it was a great way to have us look back at what we've covered and review and/or discover how the various concepts are connected. It was also interesting to review the lecture notes from the past courses and see how some of the content has evolved. The placement of waste, for example, within the overall structure of process improvement has changed since the time the concept was first introduced. Overall, this was a very useful exercise.