Operational excellence

Operational excellence 

Operational excellence is the foundation of all successful organizations. In the context of system thinking, leading supply chain management approaches and effective leadership are employed in creating an organizational culture that continuously improves organizational effectiveness at delivering ever-increasing customer value. Key competencies are developed as innovative new solutions are implemented to that end. Improved productivity, operational, and financial performance is the expected outcome as the organization increasingly becomes the supplier of choice. By first focusing on improving effectiveness in delivering customer value and productivity, a firm generates financial and human capital that can be selectively invested in appropriate technologies to leverage their improvements and leap ahead of the competition. Such an approach will lead an organization to sustain competitiveness in the dynamically complex global economy. 

What is value stream mapping? 

Realizing success in the dynamically complex global economy is challenging. Many organizations need help knowing where to start addressing their myriad challenges. Value stream mapping offers a proven, structured approach to improving operational and financial performance and clarifies the path to sustainable competitiveness. 

  • VSM, when effectively employed, can transform your operational and financial performance.
  • It helps you to clearly and objectively see your system for delivering customer value.
  • It provides a horizontal view of the customer value delivery system, versus the vertical functional view of departments/silos
  • It illuminates the connections, flow and interactions between information, material, processes, and people
  • It helps identify sources of waste
  • It addresses the labour shortage by freeing up much needed labour for business growth
  • It provides a common language for improvement process
  • It makes your decisions for improving flow clear
  • It becomes the basis for an implementation plan
  • VSM identifies real, implementable opportunities to improve customer value delivery, resulting in improved operational and financial performance and a path to sustainable competitiveness for your organization.
  • A proven application of system thinking and continuous improvement
  • A proven approach to map the current state of the system (flow and processes) used to deliver customer value
  • Allows for a comprehensive analysis of the current state with the aim of improving flow and processes, identified in a future state map
  • Proposed future state improves customer value creation and delivery, productivity, operational and financial performance, and competitiveness
  • Improvements identified help reduce energy consumption and carbon footprint
  • Value stream mapping works in any organization where a product or service is delivered through a series of processes

The value stream maps shown are for a project that resulted in an increase in system valued added activity (reduction in waste) from approximately 12 per cent to virtually 100 per cent. Remember, customers only pay for value, everything else is waste (cost). Further, the project resulted in an increase from 87 per cent to 100 per cent of orders filled each day at current volumes, the re-deployment of two employees to another department, and a 17 per cent increase in productivity to take on new business. Your firm could see similar outcomes.

VSM projects with Conestoga

The Business Administration Supply Chain and Operations Management (SCOM) program has a capstone course in value stream mapping. Students engage with clients across all sectors, conducting a value stream mapping project in their firm. Based on feedback from the industry, VSM course theory is taught one day per week over four weeks at the beginning of the fall (September start) and winter (January start) terms. This allows organizations to send one or more employees to train with our students. Your cost to register for the course is under $500 per person, including the textbook. Your employee then teams up with two to three SCOM students and completes a project at your firm. Projects run 14 weeks from start to finish (including the classes). A faculty advisor is assigned to each team. The deliverables include a completed VSM project with a written report, identified improvements (operational and financial), an implementation plan, and a presentation to management, in addition to the knowledge transfer to your firm to allow you to continue the continuous improvement journey

Industry VSM projects
In financial impact
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