In the fast-paced manufacturing world, optimising production processes can make or break a company’s success.
At Verigreen Pty (Ltd), a weeklong intervention combining Value Stream Mapping (VSM) with 20 Keys benchmarking proved to be a game-changer. This blog post dives into how this powerful approach, rooted in Key 4 of the 20 Keys framework, transformed Verigreen’s operations and set them on a path to achieve their ambitious production goals.
Figure 1: Key 4 of 20 Keys System for Continuous Improvement
The Power of Key 4: Reducing Work-in-Process
Value Stream Mapping, as outlined in Key 4 of the 20 Keys to Workplace Improvement, is a lean manufacturing technique designed to visualise and optimise the flow of materials and information. The “rule book” for Key 4 provides a clear roadmap:
- Rule 1: Document the current process and information flow (Current State VSM).
- Rule 2: Determine how processes are linked.
- Rule 3: Set targets for improvement.
- Rule 4: Improve coupling between processes.
- Rule 5: Allocate responsibilities.
- Rule 6: Decide on focus areas.
When Verigreen approached me to optimise their production system, I proposed a unique blend of 20 Keys benchmarking and a weeklong VSM workshop involving their senior management team. The goal? To not only identify inefficiencies, but also empower the team to design a future state that would help Verigreen scale from producing 900,000 bags per day to an ambitious 1.2 million bags per day.
Planning the Intervention
The journey began with meticulous planning. Inspired by a successful VSM session with BBF Safety in Pinetown, I proposed a structured approach for Verigreen, as illustrated below:
Figure 2: The Process flow of events for the Benchmarking and optimisation.
A Value Stream Mapping Charter was developed to define the scope and expectations. This charter, agreed upon by all participants, set the stage for a collaborative and focused intervention.
Figure 3: Example of Value Stream Mapping Charter
Day 1: Benchmarking with 20 Keys
The first day kicked off with an introduction to the 20 Keys system. I met with managers, walked the production floor, and engaged with operators to assess the current state of operations. The benchmarking results, compiled and shared on Day 4, were visualised in a radar chart, providing a clear snapshot of strengths and areas for improvement.
Figure 4: 20 Keys Benchmarking Radar Chart
The insights gained from this process were invaluable, especially when paired with the hands-on learning from the VSM workshop.
Day 2: Mapping the Current State
Day 2 was all about discovery. The team walked the production floor twice—first to identify the process blocks and then to quantify metrics for each block. We mapped three types of flow:
- Information Flow: From right to left, capturing how data moves.
- Material Flow: From left to right, tracking physical goods.
- Timeline: At the bottom, highlighting process durations.
Figure 5: Value stream mapping picture board
The result was a hand-drawn Current State Value Stream Map, later digitised for clarity. The flow unit was defined as a roll of 20 bags, aligning with Verigreen’s production metrics.
Figure 6: Digitised Current state map
This process was a revelation, uncovering collective knowledge and pinpointing waste in the system. For each step, we quantified value-adding time, laying the groundwork for improvement.
Day 3: Designing the Future State
On Day 3, the team shifted gears to envision a Future State Value Stream Map. The focus was on creating a pull production system to replace the existing push-based approach. A key innovation was the introduction of a “supermarket” model in the finished goods warehouse, where stock levels would trigger production at the bottleneck area, rather than relying on customer orders.
The heart of the Future state design. “The supermarket level in Finished Good Store, pull, production”.
Figure 7: Digitised Future State Value Stream Map follows the hand-drawn one.
The Future State Map highlighted several interventions, marked as Kaizen blitz stars, to reduce inventory (raw materials and work-in-process) and improve flow. A comparison matrix summarised the improvements between the current and future states.
Figure 8: Current State vs Future State summary Comparison Matrix
Day 4: Building the Transformation Plan
The workshop culminated in the development of a Value Stream Transformation Plan. This detailed roadmap assigned responsibilities, timelines, and priorities for implementing the identified improvements. The plan was designed to guide Verigreen toward its future state, with clear, actionable steps.
Figure 9: Value Stream Transformation Plan with reference to applicable Key of 20 Keys
Post-Workshop: Bringing the Plan to Life
To ensure the plan’s success, weekly follow-up meetings were scheduled every Wednesday in Verigreen’s Innovation Boardroom, with remote participation via MS Teams. These meetings tracked progress, addressed challenges, and made necessary adjustments.
Figure 10: Weekly follow-up meetings were scheduled and diligently adhered to.
The Impact of Value Stream Mapping
The Verigreen case study underscores the transformative power of Value Stream Mapping when combined with 20 Keys benchmarking. By involving senior management in walking the floor, identifying waste, and co-creating solutions, the process fostered a shared understanding and commitment to change.
As Iwao Kobayashi, the founder of 20 Keys, emphasised, reducing inventory through process and information flow mapping is a cornerstone of workplace improvement. Key 4’s focus on flow and efficiency builds on the foundational keys, delivering measurable results when executed well.
Key Takeaways
- Collaboration is Key: Engaging senior management in VSM fosters ownership and drives meaningful change.
- Visualising Waste: Mapping the current state reveals hidden inefficiencies and collective knowledge.
- Pull Over Push: Designing a pull-based system, like the supermarket model, enhances flexibility and reduces inventory.
- Continuous Improvement: Weekly follow-ups ensure the transformation plan stays on track.
References
- Learning to See by Mike Rother and John Shook
- 20 Keys to Workplace Improvement by Iwao Kobayashi
- Value Stream Mapping by Karen Martin and Mike Osterling
By embracing Value Stream Mapping and the principles of Key 4, Verigreen is well on its way to achieving its production goals and setting a new standard for operational excellence. What could VSM do for your organisation?
A Success Story: Verigreen’s Ongoing Transformation
The impact of the Value Stream Mapping (VSM) intervention at Verigreen didn’t stop with the workshop. The company has continued to evolve, leveraging the insights and strategies from the VSM process to drive efficiency and innovation across its operations.
The Initial Impact
The VSM workshop laid a strong foundation for Verigreen, identifying bottlenecks, streamlining processes, and aligning teams toward common goals. By applying the 20 Keys framework, Verigreen tackled waste reduction and improved production flow, setting the stage for long-term success.
A Celebratory Update from Theo Govender
Theo Govender, Verigreen’s Operations Manager, recently shared an inspiring update on how the company has built on that foundation:
“The write-up is good; it covers all the areas that we implemented. Just to add, the following was continued to ensure we continue to be efficient and reduce all waste in all departments:
- We worked on the Skills Matrix and ensured all the members are trained to the level we needed them to be.
- Monthly 5 Whys root cause analysis is done on major breakdowns that occurred during the month.
- We have VSM every two weeks, and that allows us to fix issues that the team is facing by setting target dates.
- Our OTIF (On-Time In-Full) has increased to 99%.
- Our inventory holding has gone from 1 day to 1 week now.
- We have a planner that manages our correct model stock levels.
- We also moved the warehouse to reduce logistics and rental costs.
- Specs and Parameters docs have been introduced.”
Theo’s feedback showcases the remarkable progress Verigreen has made. From boosting workforce skills to achieving near-perfect delivery performance, the company has embraced continuous improvement wholeheartedly. The bi-weekly VSM sessions and new operational tools like Specs and Parameters docs reflect a dedication to excellence that keeps Verigreen thriving.
This ongoing transformation underscores the power of Value Stream Mapping and the 20 Keys framework. Verigreen’s success proves that any organisation can turn insights into action and achieve lasting results with the right tools and commitment.
Author: George Meiring: Facilitator and Coach