Value Stream Mapping Charter

Scope
Value Stream

Accountable Parties

Logistics

Executive Sponsor

Specific
Conditions

Event Dates &

Times

Value Stream
Champion

Demand Rate

Facilitator

Base-camp
Location

Logistics
Coordinator

Meals
Provided

Briefing Attendees
** required
*optional

Briefing Dates
&Times

Trigger
First Step
Last Step
Boundaries &
Limitations
Improvement
Timeframe

Current State Problems & Business Needs

Mapping Team

1
2

Function

Name

Function

Name

Contact Information

Measurable Target Condition

10

Benefits to Customers & Business

On-Call Support

1
2

Relevant Data

Contact Information

Agreement

Executive Sponsor

Value Stream Champion

Facilitator

2
3

Signature:

Signature:

Signature:

Date:

Date:

Date:
2014 Karen Martin & Mike Osterling

Value Stream Mapping Charter

Scope
Value Stream Value stream being improved

Accountable Parties
Executive Sponsor Required: typically VP or C-level

Specific What circumstances are included and excluded?

Conditions (e.g., type of customer, geographic location, etc.)

Value Stream If neededoften director or

Champion manager level

Demand Rate How many times is this done per wk, qtr, mo, or yr?

Facilitator

Trigger What initiates the process?

First Step Task on first process block

Improvement Time
Typically 3-6 months
Frame

Required: skilled, objective person

leading the activity

Base-camp On-site, ample wall space,

Location quiet/private location
Meals Always a nice touch; keeps the
Provided team from wandering

List the the people that are

Aids in consensus building and
Briefing Attendees
required to attend the briefings (**) Briefing Dates organizational learning.
** required
and those whose attendance is
& Times Typically the last hour of the
*optional
optional (*).
day.

Current State Problems & Business Needs

Mapping Team

1 What's driving the need for improvement?

Function

1 Leadership-heavy

3 days typically; consecutive is

Event Dates &
best; 6 hrs per day minimum; 7
Times
or 8 hrs is best

Logistics
Not always needed
Coordinator

Last Step Task on last process block

Boundaries &
What is the team NOT authorized to change?
Limitations

Logistics

Name

Contact Information

Measurable Target Condition

1 Reduce <defined metric> from X to Y (Z% improvement).

2 Increase <defined metric> from X to Y (Z% improvement).

10

Benefits to Customers & Business

On-Call Support

1 How will the business, internal and external customers, and

Function

2 internal and external suppliers benefit from value stream improvement?

1 SMEs that may not be needed ful

Name

Relevant Data

Contact Information

Agreement

1 What data is required to understand relevant current state issues.

Executive Sponsor

Value Stream Champion

Facilitator

2 Examples: work volume & volume variation, process quality &

3 effectiveness, market trends, customer satisfaction, employee

Signature:

Signature:

Signature:

4 engagement, financials, lead time, safety records, etc.

Date:

Date:

Date:
2014 Karen Martin & Mike Osterling

Value Stream Mapping Charter

Scope
Value Stream Capital equipment

Accountable Parties
Executive Sponsor Allen Ward

Specific Engineer to order, requires both hardware &

Conditions software customization

Base-camp
Surf's Up - Room A
Location

Facilitator Dave Parks

Trigger Customer submits RFQ

First Step Sales reviews the RFQ

Logistics
Dave Parks
Coordinator

Last Step Production ships product

Improvement Time Future state design is fully realized by

Frame December 31, 2013.

Event Dates & July 24-26, 2013

Times 8:00 am - 5:00 pm

Value Stream
Nancy Little
Champion

Demand Rate 1,000 per year

Boundaries & No new software; only minor changes to existing IT

Limitations systems; no additional staff; no budget changes

Logistics

Meals
Continential breakfast & lunch
Provided

** Allen W (COO), Joe M (CIO), Sal

Briefing Attendees
T (VP Sales)
Briefing Dates July 24, 25, & 26
** required
* Bruce R (VP Ops), Carlos P (HR),
& Times 4:00-5:00 pm
*optional
Su T (CFO), Bill M (VP CS)

Current State Problems & Business Needs

Mapping Team

1 Desire to stay ahead of the competition & deepen customer loyalty.

Function / Title

Name

2 Forecasted growth of 15% for next fiscal year.

1 Sales, Director

Sean Michaels

3 Unclear & incorrect information flowing through value stream.

2 IT, Director

Diana Marie

4 Lead time for RFQ turnaround = 2 weeks; PO to software dev = 5 week

3 Finance, Controller

Dave Gerald

5 (Competition's RFQ LT is 1 wk and PO to delivery is 4 wks)

4 Scrum Master

Ryan Austin

5 Engineering, Vice President

Nancy Little

1 Reduce RFQ lead time by a minimum of 50%.

6 Manufacturing, Director

Ambreen Motiwala

2 Reduce PO to software development lead time by a minimum of 50%.

7 Customer Service, Manager

Danny Tran

3 Improve quality of information flowing throughout value stream.

8 Customer (contract manufacturer) JR Hunt

Goals & Measurable Target Conditions

10

Benefits to Customers & Business

Contact Information

On-Call Support

1 Faster delivery; less hassle; less cost.

Function

Name

2 Better working relationships between sales, estimating & engineering.

1 Planning / Purchasing, Planner

Lourdes Dwyer

3 Freed capacity to absorb additional business w/o increasing staff.

2 Production Supervisor

Tom St. James

Relevant Data

Contact Information

Agreement

1 Sales effectiveness: RFQ conversion rate.

Executive Sponsor

Value Stream Champion

Facilitator

2 Financial: Estimate-to-actual cost comparison.

3 Operational: LT in segments (RFQ to quote; PO to development).

Signature:

Signature:

Signature:

Date:

Date:

Date:
2014 Karen Martin & Mike Osterling

Order Now!

Karen Martin, Author and President

The Karen Martin Group, Inc.
858.677.6799
www.ksmartin.com

Mike Osterling, Author and President

Osterling Consulting, Inc.
619.572.3632
www.mosterling.com