Beau Keyte and Drew Locher copyright Dedication Thanks to my dad and Debi, whose constant love and support have carried me through these years and allowed me to chase my dream. And, thanks to my great clients who have worked with us to implement fundamental new thoughts and actions. -Beau Keyte To Eileen, without your love and support I could never succeed. Thanks to all of the companies with whom I have workedyou are the true innovators. -Drew Locher To everyone at the Lean Enterprise Institute and the Lean Enterprise Academy for giving us the opportunity, time and support in testing these new waters. Special thanks to John Shook and Mike Rother for paving the way. Whenever there is a product for a customer, there is a value stream. The challenge lies in seeing it. -Mike Rother and John Shook, Learning to See When you have learned to see value streams in individual facilities, it's time to see and then optimize entire value streams from raw material to the customer. -Dan Jones and Jim Womak, Seeing the Whole When you have learned to see the "raw material to the customer" value stream, it's time to see, challenge, and optimize how the rest of the enterprise supports the core value stream. -Beau Keyte and Drew Locher Contents Foreword ix Introduction xi Chapter 1: Applying Value Stream Mapping to Information Management 1 Applying Value Stream Mapping to Non-production Areas 3 Purpose of the Case Study 4 Chapter 2: Getting Started: Mapping Office Value Streams 5 Understanding Value Stream Mapping Basics 6 Scoping the Selected Value Stream and Choosing the Mapping Team 8 Chapter 3: Identifying Office Wastes 15 Determining Value from Waste in Administrative Activities 16 Chapter 4: ABC Design's Lean Transformation in the Production Area 19 Chapter 5: Assessing the Office Current State 23 Step 1: Document Customer Information and Need 24 Step 2: Identify Main Processes (In Order) 24 Step 3: Select Process Metrics 25 Step 4: Perform Value Stream Walk Through 33 Step 5: Establish How Each Process Prioritizes Work 33 Step 6: Calculate System Summary Metrics 34 Chapter 6: Designing the Current State Map for ABC Design 37 Step 1: Documenting Customer Information and Need 38 Step 2: Identifying Main Processes (In Order) 39 Steps 3 and 4: Selecting Process Metrics and Filling In the Data Boxes 40 Step 5: Establishing How Each Process Prioritizes Work 46 Step 6: Calculating System Summary Metrics 47 Reflecting on the Current State Map 50 Chapter 7: Thinking Lean at the Functional Level 55 Sales, Marketing, and Operations 56 Order Processing 57 New Product Design 59 Inventory Control 60 Purchasing and Inventory Management 61 Scheduling and Production Control 62 Quality Management 63 Cost Accounting 64 General Accounting 65 Human Resources 66 Chapter 8: Designing a Future State 67 Question 1: What Does the Customer Really Need? 68