Improving operations, reducing costs, and saving time, is (or can be) a desire of any type of operation, any type of business. If you run a law firm, you need to know who needs to be involved and supporting what type of work product for your customers. If you milk cows, you want to focus on getting the milk to market as efficiently as you can. AND – If you are in any kind of product manufacturing, THROUGHPUT is the key metric.

How long does it take to get from ORDER to DELIVERY!

This concept, when reduced to a deliberative process, is called “Value Stream Mapping”, essentially looking at your process or processes from beginning to end, from Order to Delivery, and looking for opportunities to improve/shorten THROUGHPUT.

Define the Current State!

The first step is to get the Current State documented. How are we doing business today? What are the steps from order to delivery? We are looking at any and all opportunities in the flow of your work product to identify and eliminate “WASTE”. And you’d be surprised how much WASTE is hiding in plain sight.

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Set some Goals!

What if we were 10% more efficient, meaning 10% faster delivery and/or 10% less cost to deliver the product? That turns into PROFIT, and PROFIT means we can pay our people more, hire more people, invest in expansions, replace outdated equipment and buildings, and the list goes on. Increased cash flow and almost anything can be accomplished.

Take Action!

Taking action really means two more steps. First, we must design the Future State, which means we align our goals with our Current State map, and decide what actions to take to change or optimize the process and drive our business towards achieving those goals. In other words, what does the future need to look like if we achieve those goals?

The second and most important part of the Take Action phase is to establish a set of actions or projects to close that gap – to get from Current State to Future State. This is where the real work begins – but this is also the work that should always be focus of the company. What comes out of this step is a prioritized list of projects or actions that your team can complete. Most project lists are on a 1–2 year time horizon, and are managed by an internal Project Manager. And, of course, the projects and priorities are subject to review and change on a continual basis.

And… Keep Your People!

This entire concept of Value Stream Mapping is also connected to keeping the people we have – in other words, “Don’t Lose Your People” in the continuous struggle of staff turnover. Projects that focus on Continuous Improvement, and a constant focus on Elimination of Waste, form the framework that aligns your staff with Purpose, and that Purpose allows you to provide what you really need to give to your people, and that is to Challenge them to improve themselves and the performance of the business.

In summary, there are things that all companies can do to help with their pathway to success:

• Focus on developing a culture of Continuous Improvement
• Align Goals and Actions with the Elimination of Waste
• Bring these goals to your people, Aligning them with real Purpose
• Challenge your people to improve themselves AND your Operations Every Day

We Help South Dakota Manufacturers Prosper and Grow

Stuart Giere
Business Advisor,
SD Manufacturing & Technology Solutions