Open Agile Architecture Practitioner Certification

10.1 Explain Lean Value Stream Mapping through the client on-boarding case study

Granularity

Instead of a generic value stream for all products, break down the granularity. Group related products into value streams.

Current Conditions

Current conditions is about collecting facts to understand what challenges currently exist in the value stream.

• P/T - Process time
• VA - Value added time (P/T that delivers value)
• D/T - Delay time
• P/T + D/T = L/T - Lead time
• %C/A - Percentage complete and accurate

Clean slate vision

The clean-slate vision focuses on creating good experiences for the simple value stream. The ideal scenario is written out.

Waste

Waste (Muda) is anything other than the minimum amount of resources that add value to a product

1. Type 1 Muda - Create no value but necessary to maintain operations (e.g., regulatory requirements)
2. Type 2 Muda - Create no value for any stakeholders

Efficiency = ${\displaystyle \frac{VA}{L/T}}$

Muda (waste) is a symptom, not a cause. Look for the underlying problem that is causing the waste.

Two typical causes of muda are variability (Mura) and overburden (Muri)

Mura and Muri

Takt time = available work time per shift / customer demand rate per shift

In a service context, using takt time may not be sufficient to manage Mura (demand variation) and Muri (overburden)

Future State Mapping

Challenges and target state conditions

Schedule an Appointment

First challenge: Sort prospects that should go through the simple value stream. we want to rapidly streamline this value stream because it would improve the experience for the largest percentage of customers.

Second Challenge: Having capacity to meet demand.

Discover, Offer, and Choose Products

Interview will start with 15 minutes of "quality time" to listen to the prospect. In this stream, needs should be simple and the advisor can ask a few questions to better understand. This reduces "offer and choode products" P/T from 30 -> 10.

Collect and Control Documents

List of required document is easy to remember for this stream. Info campaign can reduce improper scans. SaaS can be used to verify documents in real-time. This combo can reduce P/T from 35 -> 15.

In this increment, advisors will NOT get tablets because it takes long to implement and has high upfront cost, hard to justify..

Capacity Management

Match capacity and demand.

1. Determine demand patterns and assess the causes of variations.
2. Indentify, experiment, implement countermeasures

Influencing Demand

• Decrease
  • Communicate busy times
  • Offer non-peak usage incentives
  • Charge full price
• Increase
  • Offer discounts
  • Target new market segments
  • Offer free shipping

Managing Capacity

• Cross-train employees so they can adjust at peak times
• Request employees work overtime
• Increase customer participation with self-care
• Automate

Increase On-Boarding Capacity

Advisors at different branches can use video-conferencing to on-board prospects. A cross-functional team with people from all departments will conduct a feasability study.

This new way of working can support new use cases. the next step is to support a true omnichannel model where the bank also operates over the internet, but this creates new cybersecurity challenges the bank will have to address.

Printing Credit Cards in Branches

1. Install printers in branches
2. Preprinted anon cards that would be replaced later

Reduces "deliver means of payment" P/T 10 -> 5*, but the big win is reducing D/T from 5 days -> 0 minutes

Usage and Implementation Considerations

Can be used to improve product development value streams AND production valuie streams.

Value stream Mapping provides guidelines to stimulate thinking, it does not supply standard solutions.

Benefits

1. Developing targets that can be achieved step-by-step
2. Comms between teams help understand perspectives
3. Customer focus gives common purpose
4. Members understand how activities impact customers positively or negatively

Organizational Implications

A value stream manager role could be implemented with minimal impact to the organization.

Agile teams are mostly stream-aligned and cross-functional.They regroup the roles and skills needed to develop products. They are led by product owners.