How do you measure the value you add?

Yesterday I discussed creating a Value Stream Map to discover the value and opportunities you had in your marketing process. Many companies stop, right there. However, the value cannot be determined till it has been quantified. This is where the use of Six Sigma can be utilized so effectively. If we accept the Current Value Stream as correct, we can progress to the measure stage in DMAIC. A Process Map is usually constructed at this stage. Process Mapping is much more specific than a Value Stream Map and should be created for every product or service defined in the Value Stream.

The Purpose of a Process Map:

1. Graphical representation of how the process is performed.
2. Identify process steps that are non value added.
3. Identify data collection points.
4. Created for each service. (Ex -Webinar)
5. Created for every project and continuously updated.
6. Provides a step by step guide for brainstorming and improvement.

A Basic Process map should include:

1. Value added and non-value steps.
2. Process owners of each step
3. Time for each step.
4. Defect rate for each step.

A Real Process Map should include:

1. All of the Basic Steps
2. Input and outputs of each process step (X’s and Y’s).
3. Current requirements of each X and Y.
4. Defect rate associated with each X and Y.

Creation of a Process Map

1. Assemble Team
2. Scope the project/process being mapped. Focus only on a particular service/product such as the example of a Webinar above.
3. Identify all steps to perform this process and note if this step is value added or non value added.
4. Identify the inputs (X’s) and outputs (Y’s) of each process step.
5. Capture current specifications, process owners and materials for each X and Y identified.
6. Identify and document all data collection points within the project scope.

I have included this process for a single step in the diagram below for a graphic understanding of the process. Don’t get hung up
on the X, Y, f or the equation. Just start looking at the basic process. I find out the people that want to go to the next step will
and the ones that don’t still receive value in this exercise. They will just rely on “Tribal Knowledge” versus data.

That’s it! But what about results and what we are going to do about all this. This is simple beyond the scope of this step. In the Six Sigma Process of DMAIC, we are only at the Measure stage. The next stage is Analyze. I wonder what we will do tomorrow.

Technorati : DMAIC, Value Stream, lean, marketing, measure, process map, six sigma