Category Archives: Value Stream

A VALUE STREAM is an end-to-end business process which delivers a product or service to a customer or consumer. The process steps along the way may both use and produce intermediate goods, services and information to reach that primary end.

Analysis may suggest the removal of intermediate process steps, goods, services and information that do not move the value stream forwards to its primary end, provided they do not serve important secondary ends such as compliance, quality control or employee loyalty.

VALUE STREAM MAPPING is a lean manufacturing technique used to analyze the flow of materials and information currently required to bring a product or service to a consumer.

Using Customer complaints to improve your supply chain

Posted on by

Marketing talk about the “better mousetrap syndrome”, it is not a bigger, better, faster mouse trap that customers want – they just want to be rid of the mouse, so too with Supply. Customers just want what they order, when they expect it (or told to expect it).

Many times the message will be heard that customers want a faster more reliable delivery service. So the Distribution Manager will call for a meeting with the Carrier asking they address the problem – now. But by drilling down it is found customers are receiving their orders anywhere between 4-25 days with a gazetted delivery of 6 days.

In fact after talking to the customers, all they really want (as an example) is to get a guarantee that their orders will arrive on day 6, every time and this actually happens.

To achieve this will not entail just talking to the carrier and setting KPIs and exception reports etc, there will need to be a proper Root Cause Analysis carried out.  You may find that aside from the Carriers own issues there are delays throughout the process, for example the time it takes to receive and enter an order, the picking schedules in the warehouse, the collection schedules, the availability of stock etc.

There are many ways a company can improve their own Supply Chain without the need to rush out and purchase new systems or equipment. Often it is seeing the big picture, then following some basic steps:

1-       Map the Supply Chain

2-       Identify the bottle necks

3-       Identify a few, appropriate KPIs

4-       Put into place an Exception Reporting process (to trigger Root Cause Analysis & Corrective Actions)

5-       Use your ‘CAR’ system to record and monitor issues, both operational and systemic.

6-       Communicate with all stake-holders: suppliers-staff-customers

Like the Mousetrap, investing in bigger, faster processes and products may not be what is required, it might just be to stabilise what you have and set appropriate customer expectations.  A targeted approach such as this will cost less, retain customers and will probably reduce ongoing costs.

The Value of Public Perception on Your Business

Posted on by

The opponents of climate change do not seem to be as vocal, or numerous as they were.  The swing now is on the amount of media attention highlighting how little or how much change the climate is going through.

Whatever the cause or source for the focus on climate change, it has meant that all governments – local, state, national and international – are putting regulations and monitory in place.  One immediate benefit from this is that records are now being kept and as any Six Sigma proponent will tell you, it is only then that you can make informed decisions – either way. Without this information it is all emotion and hearsay.

BUT this will not absolve businesses from being aware of perception; a declining public perception will kill profits and eventually the business. I am not promoting or knocking Eviance, (a company that provides Environmental Enterprise Resource Planning software) but they have put out a white paper on this subject  “The Value of Public Perception: Transforming Environmental Efforts From Compliance-Driven to Risk Management”.

I like this paper as they are suggesting that following the regulations and making business calculations based on whether to comply or not, is like playing the game from the sidelines.  Customers, investors and competitors are now very savvy and review a companies environmental performance – and environmental plans – which means if you are perceived in the wrong light regards your environmental scorecard, you lose.

It is the pro-active steps that are taken regards the environment (not just climate change) that can push a company to the front of the pack. This is a common marketing theme – listen to your customer.  Even raising the awareness of customers, investors and competitors that your company is against particular regulations or perceived climate friendly initiatives will damage your reputation.

In summary, any SWOT analysis would indicate that it is in the company’s best interest – including long term financially – to go environmentally friendly, be ahead of the regulations, be perceived as being on the same side as other stake-holders. Yep, the tide is rising and as with the Danish King Canute, no commands or pleading will stop it.