Mission Control Value Mapping - Russell Colbourne

Russell Colbourne - "Your Money Machine"

​Introduction
Your business is Your Money Machine. In this show we take a look under the hood of your business engine and show you how to fine tune your operations. Get ready for lift off as we add rocket fuel to your engine.
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Research shows that over 80% of small businesses fail within the first 3 years of operation.  However founders who undertake a course in entrepreneurial company building have a far higher success rate in getting past this crucial 3 year hurdle. In a survey of companies where the Founders were graduates from the Founder Institute course over 85% were still operating after 3 years.  Education is clearly one of the factors in creating a successful company.  And that is exactly what we will be sharing in our next season of Your Money Machine at the IBGR Network. Proven strategies delivered by a seasoned business owner and professional, sharing what works and what doesn’t work at each of stage of business growth. 

Value Stream Mapping is a lean methodology for identifying waste within your systems and processes.  Before embarking on a program of business growth you need to ensure your business is as efficient and effective as you can make it, so that when you grow you get the most profitable outcome.  By Value Mapping your operations you can cut the waste and create Standard Operating Procedures that your team can follow, freeing you up to work on the business, not in the business.
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Listen>Apply>Engage
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Show Objectives
We are in Growth Stage III - 
A lot of work for a young company but it has huge dividends - growing the company into its full potential in its current configuration.
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Key Issues - ​Owner Perspective:

1. What and how many steps/substeps were added.
2. What and how many steps/substeps were eliminated.
3. Estimate of how much time has been saved.
4. What is the scheduled date for SOP (Standard Operating Procedures) completion.

What You Need to Know

Value Mapping

• Select Process to Improve – start with the process that has the highest potential to improve margin.
• Conduct QFD (Quality Function Deployment) – understand customer requirements and make sure all are covered by the appropriate step (TO BE).
• Create “AS IS” (current process) Value Map – visual map of how work is currently done by steps or equipment.
• Design “TO BE” (improved process) Value Map – visual map of how it should be done, ensure it includes data from the QFD to ensure both process and delivery quality.
• Design Metrics – ensure the new process and individual behaviors are measured to better  manage performance.
• Write SOP (Standard Operation Procedure) – make it official – this is how we work from this point forward.
• Write Job Descriptions and Requirements – codify what is expected for each position, job, task, etc., leave no doubt what is expected.
• Create a training plan to build skill mastery (competence) in this order (1) current position, (2) other positions in their process, (3) promotable positions.

What You Need to Do​

1. Create a visual representation of each core processes 1st pass (what you think is happening).
2. Create a visual representation of each core process 2nd pass (what you want to happen)
3. Document the additions and subtractions between what you thought was happening and what you want to have happen now.
4. Identify real improvements in quality (waste reduction), decrease in time required to complete a substep or the entire step, reduction in labor required, reduction in materials, improvement in the quantity produced.

Shows

• Previous: EPISODE A3.003 ABC (ACTIVITY BASED COSTING)?
• Next: EPISODE F3.005 . Standard Operating Procedures

F3.04.3AA