This article is Part 1 of a 3-part series exploring the journey toward operational excellence through Value Stream Management (VSM). Stay tuned for Part 2, which will look at shop floor management; and Part 3, which relates to governance and S&OP.
Phase 1 - Assessment and Prioritization of Improvement Actions
Facing Complexity as a Manufacturing Manager
I took on the role of manufacturing manager at a company producing components for the industrial and off-highway sectors, and immediately faced a complex challenge. The plant supplies preassembled subgroups to over 30 customer plants worldwide, and manages hundreds of product codes divided into three main categories. Each category includes numerous geometric variations but relies on similar production processes: sheet metal and profile processing, welding, painting, and assembly.
Conducting an Initial Assessment
The initial assessment was the first step in understanding the state of the organization and its processes. I conducted a thorough analysis, starting with the company’s strategic objectives and comparing them with the operational reality. Through interviews with department managers and support area leaders, direct observations on the shop floor, and KPI analysis, I identified the organization’s strengths and weaknesses. This allowed me to define not only the primary issues but also opportunities for improvement.
Key Problem Areas Identified
There were several particular areas that the observed problems spanned:
• Inefficient use of space: Unused or overloaded areas created hazards and bottlenecks.
• Resource engagement: High use of operational resources for non-value-added activities, such as data collection or KPI maintenance.
• Flow organization: Lack of integration between departments and disorganized shift planning.
• Material management: Issues with warehouse organization and material handling.
• Improvement projects: Lack of clarity and communication about improvement goals.
Identifying Strengths and Opportunities
In parallel, I analysed the organization’s strengths, such as internal technical expertise, and external opportunities, such as collaborations with suppliers or customers. Finally, I also evaluated potential risks that could get in the way of the implementation of improvements.
Clustering and Prioritizing Countermeasures
Grouping Improvement Points into Clusters
So now we had more than 50 identified improvement points! To deal with them effectively, it was absolutely necessary to group them into clusters or macro-categories. Each cluster focused on a specific area and included actions linked by shared objectives and expected results. This meant I could prioritize the macro-categories, optimize available resources, and ensure tangible results at every stage.
Process Mapping for Targeted Actions
The clusters were also defined through process mapping, which visualized workflows and identified the most impactful actions. This enabled the grouping of countermeasures to achieve partial results that contributed to the future implementation of Value Stream Management (VSM).
Key Clusters for Improvement
The main clusters defined were:
1. Shop Floor Management: Reorganizing the management of production departments to improve value flow and overcome siloed operations.
2. Governance and Sales & Operations Planning (S&OP): Balancing demand and strategic planning to meet customer requirements while reducing variability.
3. Footprint (Layout): Redefining operational flows and layout to optimize space and reduce indirect costs.
4. Value Stream Management: Establishing the foundation for future management through value streams.
Building a Roadmap for Operational Excellence
There are also countermeasures in areas outside the scope of this series of articles.
The entire process was organized to ensure that each cluster delivered measurable results and served as a stepping stone for subsequent actions, avoiding scattered or disorganized interventions. This allowed me to focus efforts on high-impact actions and build a clear roadmap for improvement.
Creating Alignment and Driving Change
The priority and sequence of the clusters were carefully planned so that the completion of one group of countermeasures would act as an enabler for the next. Specifically, the reorganization of operational flow management through Shop Floor Management was aimed at aligning departments with shared goals in safety, quality, and customer delivery. This alignment laid the groundwork for revisiting the planning of materials and production flows.
Setting the Stage for VSM
These two actions naturally created the need to free up warehouse space, physically reorganize flows and control areas, and reallocate resources for further layout optimization activities. In practice, this approach allowed the need for change to emerge directly from operations, providing a natural boost to self-sustain subsequent implementation steps toward the final vision of Value Stream Management.
The assessment and subsequent prioritization of actions represented a crucial step in establishing a structured strategy, laying the groundwork for a path toward operational excellence. The following blogs will focus on how these actions were developed and implemented in various operational areas - stay tuned!
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As you can see, the benefits of value stream mapping go far beyond the theory—it’s about real results that drive impactful change. Our lean professionals have helped countless organizations streamline operations, eliminate inefficiencies, and achieve measurable gains. Ready to see what VSM can do for you? Book a meeting with our experts today to discuss your unique challenges and get hands-on with our VSM software. Let’s start mapping your path to lean success.