Managing the Extended Value Stream

Striving for overall performance improvement, not for local peaks.

Direct the Overall Flow of Product and Information

It is critical to understand the overall workstream all the way from supplier to customer. This allows you to select and coordinate improvements for real breakthroughs. In most organizations today, improvements are focused on “local problems” within each department, assuming that independent improvements will lead to an overall breakthrough.

We help our clients to quickly analyze the current Value Stream with a minimal workload for operators and managers for gathering data. Usually this leads to initial results from “Future State 1” within 3 months.

Building on this success and improved value stream oriented transparence in the next steps, we work on organization and teams in the Value Stream. Analysis becomes more complex and more insightful for achieving the appropriate detail for each Value Stream. Results become more significant and lasting.

The first step is to select a product and the key metrics you want to improve. Capacity, Conversion Costs, Throughput Times, Total Cost of Ownership, Service Levels at reduced Lead Times… Which do you want to tackle?

Introduce an MES

Complex processes, Excel-based production scheduling and hand-written (&archived!) Batch Record documentation limited this site’s capacity to increase production of trans-dermal patches. With strategic outlook, the head of production decided to go for a Manufacturing Execution System the “right way”. In partnership with experts for IT-vendor selection, we facilitated internal teams enthusiastically working through all the details of their production. The site did numerous quick-wins and conducted an effective RFP.

Plan to Triple Production

A private equity company bought an established producer of blood-based pharmaceuticals. With site management and 3 cross-functional teams of 40 employees in total we reviewed the complete value stream. Identifying, prioritizing and sequencing the identified 90 projects (from small to multi-year) we provided the plan to first double and in 3 years triple production without further production buildings. As a side-effect, people who worked 25+ years at the company noted: “Wow, we never before saw the links between our units so clearly!”

Adjust Specifications for Saving

With a medical devices supplier we’ve reached a reduction of production costs by 20% in a new product launch as a result of systematic Value Stream Screening with focus on design to tolerances. The challenges were tackled by a series of facilitated workshops to balance the understanding of requirements with matching process capabilities. Lean process validation then supported the rapid implementation.

Forecast to Invoice

A medical products company improved its overall supply chain, from forecasting through in-house assembly to shipment. We helped address poor forecast quality and high variation in supplier performance through systematic minimum safety stocks, better flow of information on critical parts and better alignment of logistics & production. The successes continued after the project, thanks to redesigning the organization, creating more transparent performance methods and continuously improving processes.