Time
9 hours 53 minutes
Difficulty
Intermediate
CEU/CPE
10

Video Transcription

00:00
Hi, guys. Welcome back. I'm Katherine McKeever, and today we're gonna go over operationally defining value at so we have been talking about voice of voice, of the customer, voice of the business voice of the process. So now we're gonna talk about defining the value, add from an operational perspective.
00:20
So you you remember in yellow Belt with the quite a bit of conversation around
00:24
value add and non value add. And as we do our process mapping, making sure that we look at every single step on determine if it is a value add or a non value add step. If this isn't sounding familiar, you should go back to your yellow belt course and review the modules on value. Add non value add.
00:42
You're going to need it for this module.
00:45
So if we think back to our history of, um, models, we know that the Toyota production system is basically the forefather of Lean and Six Sigma as we understand it today.
00:59
So I actually wanted to go over a passage that I highlighted out of the Toyota production system when I was learning my lean and six Sigma because it felt so powerful to me.
01:10
So the first part is it is irresponsible to allow non value adding work to continue,
01:17
period. There's no caveat, There's no but there's no except when
01:23
just a flat statement for the organization. It is irresponsible to keep non value add work going
01:30
the next one jumps out. It jumped out at me a lot, too, because it says this is disrespectful to the employees and compromises our competitive position, period. So if you remember back to Yellow Belt when we were going through the waist down time
01:47
and we talked quite a bit about the controversial eighth waste the waste of in select
01:52
this is where I pulled together that this is very important that we need to make sure that we are valuing our employees. In addition to that culture of kaizen. Where we talked about employee collaboration is one of the three things that you need to have to have your culture of ongoing continuous improvement.
02:10
The last statement is by ensuring that all work is value added. We build employment security into the production system, so this is really interesting, especially if you think about today's day and age where people don't stay at jobs between what? A production system
02:29
not only said, let's value our employees,
02:32
but let's build a workplace where our employees feel that they have security. This later becomes a giving their best to the organization, fully participating in the culture of kaizen. So this is an aspect of cultural piece.
02:46
If you remember, Dr Demming was considered a folklore hero because he said that high quality ultimately creates jobs.
02:54
This is where you see some of that manifesting
02:58
so with that. So when we talk about value at a non value, add what we didn't yellow boat was at the process level. We looked at every single step, and we said, Is this value add? Is this non value at Does this meet the three criteria customers willing to pay for It
03:13
is not rework and fundamentally transforms the product or service at some level.
03:19
Now we're gonna talk about operational value, add which is where we're going to step it up a level on. We're going to look at the entire value stream. So if you think about the process level work that we did in Yellow Belt is a silo. It is one chunk. If you remember when we did our sigh pock lecture.
03:38
We said that a value stream is basically sigh pox stacked on top of each other
03:44
so that we now understand how are outputs and suppliers become inputs and customers for the next chunk of the organization of the next chunk of the value stream. So operationally thinking about value add is thinking about that big picture. How do the silos interconnect
04:02
with each other so that we have a cohesive understanding of our organization?
04:08
This requires the insight of the voice off. So when we talked about it at a process level in our yellow boat, we said, We need to understand what the customer wants Now I'm saying we need to not only understand the customer, but also the business and the process,
04:25
because these become factors as we're starting to articulate what is value add
04:30
at our organization level or about Eastern.
04:32
So the way that you think about this is the value proposition. So if you remember when we were talking about our customers, we said that a customer need is what initiates the relationship between a customer and an organization.
04:46
The value proposition is articulating that customers need or being able to say definitively, This is what my company does for our customers. So we're going to do an imaginary Sai Buri one This is I've entirely made up for I've made this up. I'm not speaking for them.
05:03
But we're going to say that the cyber is value prop, maybe
05:08
to provide high quality economical training. So pretty straightforward. Sounds a lot like a mission statement. If you think about it as an organization that has your mission vision values painted on the wall, you wanted to be fairly straightforward. This is why customers come to cyber. This is why you the student, come here
05:26
because you want the best education.
05:28
Ah, a reasonable price or free. Um
05:31
so with that now we have to ask ourselves, Why do we care? Why does it matter? So remember, I just I just talked about how this articulates our what starts that relationship. What do we bring to our customers that meets their need? This now gives us context for our larger organization. This gives us
05:50
the framework that we need to make decisions as to whether or not
05:56
steps that we do in our process. Our value add at an organizational level rather than just a process level. So we're going to go through the classic classic Example of this. Eso are classic argument is the Q A department
06:12
from a process level value and non value add an eight waste perspective. The Q A department is entirely entirely non value. Add. It exists to confirm that we do, in fact, do our jobs.
06:28
And the argument back would be if you build a process that doesn't allow for defects, you have no reason
06:33
to need to do quality assurance or auditing because you know there are not defects in your process. So at that level it's totally non value add. But when we look at it in an organization or value stream level, let's think back to the CyberRays value proposition of high quality economical training.
06:53
What may be high quality for me as a lean six Sigma class may not necessarily be high quality for your cybersecurity, Um, class. So now you're Q. A department is knitting together multiple, different processes, so the process for lean six sigma compared to the process for cybersecurity,
07:12
you have a Q A department, that kind of
07:14
bridges, both of those So it, in fact, while at a process level, is non value, Add at an organization level is value add. So as you are going through your work as a greenbelt doing your current state process map
07:30
evaluating whether or not each of the steps are value add non value add. I expect you to have this organizational context because you have heard
07:40
the voice of the business, the voice of the process, and ask yourselves before we say this is non value add and we're gonna cut it out. Is this value add from an operation standpoint? So from a bigger picture. So we need to consider that before we hack these things out
07:58
so really, really quickly to kind of pull you guys back to value at non value add what are the three criteria for an activity to be value? Add
08:09
Okay, I am hoping that you said customers willing to pay for it must change the product in some way and must not be reworked. So remember, from Yellow Belt, if this all sounds unusual, go back and check your value at non value at these, this definition is still very relevant
08:28
to the work that you're going to do is a greenbelt. We've just added to it and said, Not only do you need to look at it from a process step perspective,
08:35
you also need to look at it from an organization perspective. It's very helpful when you have all of the key stakeholders on your team to make sure that you get that viewpoint. But so today we went over operationally defining value. Add so that big picture definition, how we use the voices of
08:54
to come to whether or not we do or don't need to do activities
08:58
and our next lecture. We're going to go over the house of quality or quality functional deployment, and I will see you guys there.

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This Six Sigma Green Belt course teaches students how and where to apply the Six Sigma process improvement methodologies. Upon completing the course, students will have the skills and knowledge to pass the Six Sigma Green Belt certification exam.

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Kathryn McIver
Lead Instructor at Evidence-Based Management Association
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