Macro Value Stream Mapping

Macro Value Stream Mapping / Systems Thinking Workshop Overview

Macro Value Stream Mapping one-day workshop helps the participants to see their Value Streams as Integrated Systems encompassing the whole supply chain, and to use Macro Mapping as a tool for improvement. Participants, learning in a powerful hands-on way, see how Value Stream Systems react to changes in demand at each node. They are taught to plan countermeasures as they prepare their future state during Macro Value Stream Mapping.

The session starts with a two-hour introduction to Systems Thinking and Macro Value Stream Mapping, and then proceeds with a simulation that illustrates the key elements of the Forrester Effect. The Forrester or whip effect is characterized by erratic waves of supply and demand in the value stream, building inventory throughout, lengthening lead times, and increasing costs. In the simulation part of the workshop the participants play various roles in the supply chain, generating orders, and fulfilling orders from their customers. Popularly known as the Beer Game after researchers at MIT who observed the pattern changes in the supply and demand for beer over spring break, this simulation has proven to be a must for MBA students and business schools all over North America. Recognizing and developing countermeasures to the whip effect is one of the critical skills required to draw a successful macro value stream map.

After the simulation, the participants explore problems with traditional push planning systems based on forecasting. They then learn how pull is a successful countermeasure to these problems.

Learning Objectives

• Introduce Macro Value Stream Mapping as a tool for enterprise-wide improvement


• Introduce the Forrester Effect through a powerful hands-on simulation


• Discuss the pitfalls of Push based planning, and to show how pull systems are the countermeasure to the Whip Effect

Program Agenda

Macro Mapping and Systems Thinking (A.M.)

• Introductions


• Introduction to Macro Value Stream Mapping


• Rules of the Simulation Game


• The Simulation

Macro Mapping and Systems Thinking (P.M.)

• Reports on simulation results


• Debriefing


• The problems with traditional Push planning logic


• Countermeasures for the Forrester Effect


• Class discussion and questions


• Wrap-up

Who Should Attend?

• Line Managers


• Engineers


• Logisticians


• Production Planners


• Executives

Prerequisites

A good working knowledge of Value Stream Mapping is important.