Top 20 roles & responsibilities of value stream leaders

Top 20 roles & responsibilities of value stream leaders

A value stream represents all the things we do to create value for the customer. This involves far more than the manufacturing processes. 

Different kinds of value streams 

1.    Order fulfillment value streams

2.    New product development value streams

3.    In some cases, specific departments – e.g. New customer development may form value streams on their own. 

Why do we focus on value streams? 

We focus on value streams simply because this is where the money is made

Value is created by the combined efforts of people in different departments.

Value stream is where the value is and also where the waste is – which we want to eliminate

A lot of time is in a way wasted when improvement is made to one department or process but giving little overall impact to the business 

Why manage by value streams?

Focus – who is responsible for everything to do with this family of products?  How do we make more money there?

Accountability – the value stream team becomes responsible for the value stream performance measures

Simplicity – from complex organization chart hundreds of cost centers and thousands of transactions – to a simple few value streams management

Drive for continuous improvement 

Problems & issues 

New organization structure

How to allocate people

People in more than one value stream

Monument equipments

Value stream size

No. of value streams

People who are not in any of the value streams

Competition between value streams

Size of the value stream 

How to identify a value stream? 

Staple yourself to an order

Prepare the current state map

Identify the people in the value stream

Reorganize your organization chart to suit

Identify performance measures for the value stream

Create visuals for all information required for the value stream

Create a value stream continuous improvement team

Do value stream costing 

Value stream costing

For value stream costing to work effectively…..

Reporting is done by value streams and not by departments

People in the company are assigned to value streams with little or no overlap

Few shared services departments and few monuments

Production processes must be reasonably under control with low variability supported with through tracking of the measures, inventory under reasonable control and relatively low 

Roles & responsibilities of value stream leaders 

1.    To drive continuous improvement (CI) in value stream

2.    Creation of standards

3.    Meeting the set targets

4.    Training of employees

5.    Control of RM, FG inventories

6.    Control wastage of material at the Gemba (real place)

7.    Control/ reduce rejection or rework

8.    Ensure good team work among value stream employees

9.    Lead the team for the continuous change

10.  Manage all the value stream related costs

11.  Study and take corrective actions on customer complaints

12.  Improve morale and motivation through implementation of suggestions schemes

13.  Reduce absenteeism

14.  Decide responsibilities within the value stream for all tasks, in order to bring about total investment

15.  Everyday hold 5 minute standing meeting among key people in value stream

16.  Take corrective actions on deviations

17.  Ensure safe place to work

18.  Ensure good housekeeping (five s)

19.  Highlight critical issues of value stream to the management

20.  Analyze key issues affecting the equipments and take corrective actions

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