Boosting ROI with Value Stream Mapping Consultants: A Smart Investment for Companies
Utilizing Value Stream Mapping elevates the efficiency and efficacy of diverse organizational processes. Value Stream Management addresses activities that do not contribute value and removes inefficiencies, such as extended lead times, defects, and material and information flow bottlenecks. The VSM (Value Stream Mapping) procedure visually demonstrates the organization’s movement of information and materials. Its objective is to visually pinpoint, portray, and reduce lean waste, all while facilitating seamless and effective flow throughout all manufacturing procedures. As a Value Stream Mapping Consultant in Mumbai, ARROWHEAD Consulting aims to provide optimal manufacturing efficiency for your organization.
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Points to keep in mind
There are some points to remember while doing Value Stream Mapping in Mumbai; it could lead to a wasteful activity if not done right.
1. Focus point should always be return on investment (ROI). Find a balance between the effort invested in conducting value stream mapping and the potential value or savings it can offer.
2. As a cross-functional & complex process, involving experienced employees from all departments in the value stream mapping is essential.
3. Starting from a small scale. Improvements may not directly provide vast savings but frequently result in bottom-line savings once a comprehensive walkthrough is concluded.
4. Always sketch a rough draft first. Do not try to use professional map templates in the beginning. Once you’ll get the idea start using professional symbols and templates.
How ARROWHEAD Consulting Will Do Monitoring and Measuring Performance Quality
Collecting baseline data
- ARROWHEAD Consulting starts with having an initial video conversation with key stakeholders from the client to understand their need for a VSM
- Then in the next step, we explain how VSM data is critical to creating a perfect future state, basically its importance.
- ARROWHEAD has a VSM data template with 21 different data points critical for any VSM session.
- We share this data template with our client.
- The client collects data per our instructions and sends all data back to ARROWHEAD before the VSM event. We also ensure that clients keep a backup of their data if needed for the event.
- As a VSM Consultancy in Mumbai, we analyze this data using Six Sigma methodologies and come prepared for VSM with a comprehensive understanding of key issues in the current state.
Goals to achieve
Goals are determined and decided at the start of every VSM session in front of an entire team. Our goals majorly focus on reducing 8 lean wastes as well as every possible variation within the whole value stream.
ARROWHEAD Consulting’s VSM implementation
We use a standard methodology in every VSM event, and this methodology is broken down into 5 distinct phases:
- Mapping the current state of value stream from order entry dispatch of finished goods or service delivery.
- Understanding all issues in the current state concerning lean wastes.
- Assessing root causes of all top issues that can have maximum impact on cost, quality, and time.
- Devising solutions (projects) for eradicating these root causes
- Mapping an ideal future state that will be a drastically improved state versus current value stream.
- After the day of the VSM event, we prioritize to schedule a conference within one week with the entire team and senior management of the respective organization to re-visit the VSM event and discuss the future state’s clear plan for project implementation.
- ARROWHEAD‘s black belt experts visit the site twice a month (or as per the requirement of client/project/team) to monitor the project and suggest inputs to ensure the project is delivered as per time and plan.
- Detailed monthly review of each project with the entire team to understand progress and estimated impact. If the desired result is within tolerance, then no course corrections are needed; else, the team may need some training and/or hand-holding.
Evaluation for ROI
- Every project ROI calculations are based on investment cost (man, material, software) versus targeted financial benefits. These can be in terms of pure cost reduction, improved cash flow, or cost avoidance.
- ARROWHEAD has several financial templates we share with clients for ease of monitoring projects and their ROI.
- Apart from ROI, ARROWHEAD also helps calculate NPV (net present value) and IR (internal rate of return).
- If a project has an ROI of < 30 months and an IRR of > 24%, then ARROWHEAD considers this a sound investment in resource time and material. Additionally, clients always have their metrics and yardsticks of what is considered good from their perspective.
VSM in Various Industries-
VSM for Logistics sector visually represents the flow of materials, information, and processes, and through this, professionals can optimize work, leading to better customer satisfaction with cost savings.
VSM for Service Industry proves by illuminating the end-to-end process of delivering services.
VSM for Software Development visualizes the software lifecycle, highlighting steps from ideation to deployment. It enhances collaboration among team members, resulting in faster and more efficient software delivery.
VSM for Manufacturing Process allows manufacturers to identify wasteful activities, minimize production bottlenecks, and optimize resource utilization.
VSM for Retail Stores to visualize the customer journey and operational processes creating a more efficient shopping experience, reducing wait times, and enhancing overall customer satisfaction.
VSM for Warehouse operations understands the flow of goods, information, and processes. Warehouses can achieve better resource utilization, reduced handling costs, and improved order fulfillment efficiency.
VSM for Assembly Line operations can be used to streamline, reduce cycle times, and make the overall production process more efficient, leading to increased output and reduced waste.
Projects & Training Programs By ARROWHEAD Consulting
This program category focused on various aspects like VSM. Kaizen, Lean Workplace, Gage R-R sessions. ARROWHEAD has meticulously formed a plan for each session. You can check our website’s service page for more information.
Specific areas within business
In this, we aim to understand pain points given by management and suggest and implement business solutions.
Look at entire business model
This one-year tenure program focuses on the entire business model in detail and achieving long-term goals.
As the name suggests, focusing on result-driven strategies to complete the project.
ARROWHEAD Consulting provides training initiatives to strengthen project and problem-management capabilities within organizations. You can find our certification programs and other services on our website.