Enterprise Value Stream Mapping & Analysis (EVSMA)

Posted by Perspect

Client Introduction

Copyright Notice

These materials, including all attachments, are protected under the copyright laws of Canada, United States and other countries as unpublished work. These materials contain information that is proprietary to, and confidential to, Perspect Management Consulting Inc. and are the subject of a legally binding Contractual Agreement. Under the terms of the Contractual Agreement the materials shall not be used for any purpose other than those described in the Contractual Agreement. Any other use or disclosure of this information, in whole or in part, without express written permission of Perspect Management Consulting Inc. is prohibited.

© 2012 Perspect Management Consulting Inc. All Rights Reserved

What is the motivation behind EVSMA?

• Expand successful technique of value stream analysis and mapping to an enterprise application
• Provide a coherent method for analyzing and improving enterprise performance, integrating Strategic objectives, Stakeholder interests, Process performance
• Provide supporting tools for the enterprise Transition-to-Lean (TTL) Roadmap

Traditional VSM versus EVSMA

EVSMA … expanded reach

• The EVSM is a portrayal of the relationships of the enterprise with its external environment and the general ordering and integration of high-level internal enterprise processes;
• Typically more general than a single product value stream;
• Integrates multiple processes and multiple stakeholders;
• Encompasses product or service lifecycle processes as well as enabling support processes and executive/leadership functions.

Goals and Expected Outcomes

• Create a vision of a lean enterprise three to five years in the future which optimizes the enterprise value stream.
• Provide enterprise executives with a balanced decision aid to:
  • Identify barriers to the creation/delivery of value to each stakeholder;
  • Specify a vision of their future lean enterprise;
  • Determine significant gaps between current and future states;
  • Prioritize opportunities for eliminating waste and increasing value deliver for the maximum benefit of the total enterprise.

Benefits

• Focuses at total enterprise level;
• Provides a cohesive method for diagnosing an enterprise in order to expose sources of waste and to identify barriers to value delivery;
• Gives consideration to the needs/values of all stakeholders ;
• Focuses on enterprise-wide processes;
• Identifies process interfaces, disconnects and delays;
• Identifies improvement opportunities that will benefit the entire enterprise.

EVSMA & Our Clients (Typical)

• At the enterprise level our clients fundamentally satisfy a customer’s need at some level. They accomplish this in unique ways, but this is one of the overarching values. There are numerous value propositions for various stakeholders throughout the enterprise value streams that need to be examined in the context of strategy definition and objective establishment for the client.

  There are numerous value propositions for various stakeholders throughout the enterprise value streams that need to be examined in the context of strategy definition and objective establishment for the client.

• Often our clients have been exposed to value stream mapping (VSM) as part of a business improvement approach. VSM exercises are typically focused on a single line of business and delivery of value to one customer.
• Enterprise value stream mapping and analysis (EVSMA) is an advanced lean tool used in a much more strategic capacity. It examines the client’s entire business lifecycle and relevant stakeholder value delivery system. It is a portrayal of the relationships of the client with its external environment and the general ordering and integration of high-level internal processes.
• In an EVSMA exercise for our clients, value delivered by and received from customers, suppliers, taxpayers, society, employees, unions, government and the customer are examined. This holistic value representation would include the core business processes across the client as well as support and executive functions. The intent is to clearly represent at the strategic level, the current state, and to then restructure this to a future state that aligns with the overarching business fundamentals and desired culture of continuous improvement and engagement.

EVSMA Our Clients (Typical)

• EVSMA is a powerful strategic planning tool that’s benefits include:
  • Focus on the entire organization;
  • Provision of a cohesive method for diagnosing the organization in order to expose sources of waste and to identify barriers to desired value delivery;
  • Consideration of the needs and values of all stakeholders (not just customers);
  • Concentration on organization-wide processes;
  • Discovery of process interfaces, disconnects and delays;
  • Identification of improvement opportunities that will benefit the entire enterprise.
  • The outcomes will provide senior management with a balanced decision aid to:
  • Identify barriers to the creation and delivery of value to each stakeholder;
  • Clarify a vision of a future lean organization;
• EVSMA is a powerful strategic planning tool that’s benefits include (cont’d):
  • Determine significant gaps between current and future states;
  • Prioritize opportunities for eliminating waste and increasing value delivery for the maximum benefit of the total enterprise.
  • The gaps between the current and future state form the basis for three- to five-year breakthrough strategies for the organization that then feed strategic deployment.

Questions

If your organization is interested in taking your continuous improvement efforts to the next level and would like to discuss EVSMA please feel free to contact us.

We would be happy to answer any questions you may have.