Standard Business Roadmap

Implementation Manual



 Complete current state assessment


The project team needs to first complete a current state assessment in order to capture a “snapshot” of the project area.  The current state assessment is composed of analysing the key metrics and mapping the material and information flow.


Analysis of key metrics can include quality, cost, and delivery measures for the model value stream.  Examples of these measures are shown in figure 10.


Text Box:  
Example of possible metrics for current state assessment
Quality                                                           Delivery
Right first time                                               Lead time
Rework cost/unit                                            On time, in-full
Scrap cost/unit
Warranty cost/unit                                         Safety
                                                                        Time since last LTA
Cost                                                               Number of minor accidents
Labour productivity                                       Moral
Inventory turns
Over time                                                       Absenteeism
OEE                                                                Turnover rate                        













                                                 Figure 10 – Key metrics


Material and information flow analysis is a tool that identifies the root cause of waste in a system.  A material and information flow diagram, a pictorial representation of a manufacturing process, illustrates the flow of material between processes and the required information to convert material into final product.  The diagram illustrates the big picture, not the individual steps, and can be used to improve the entire system rather than just optimising local processes.  The project team can use a material and information flow diagram to  develop a common understanding of the current state. See figure 11


This should be done as a team exercise in conjunction with the value stream analysis training pack.

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