I've been ranting about organizations' inability to utilize Value Stream Mapping (VSM) because...well, because their managers just aren't smart enough.

I've used VSM to get the rock-bottom, fundamental point of agility across to managers. 

I was doing some work at a local steel mill and we were putting a very simple VSM together (that's the only kind I do because I can't keep track of all the stuff that's supposed to go on a VSM).  Essentially, we were laying out the big steps of making a certain type of steel product from blast furnace to shipping.  The data relevant to each of the production steps (e.g., scrap, delay times, costs, roll change times, yields, efficiency) were readily available and well understood.  Data relevant to wait times between production steps was harder to come by.  But the team I was working with did manage to pull such data together. 

We stepped back and looked at the overall process.  How long is it supposed to take, I asked?  Six weeks.  That's what was quoted to customers.  Six weeks from order to delivery.  The data we had showed that it actually took anywhere from four weeks to six months!

I asked the question:  Would there be any strategic value or advantage realized by the company if the "blast furnace to ship" time was consistently four weeks, even if costs remained the same.  The team sat in silence for awhile.  Steel making is all about cost cutting.  It's not wise to say things that could, in any way, be interpreted as not fully accepting the primacy of cost cutting as an objective. 

Finally, the team members found their voices: "Yes, because we'd have shorter lead times and better on time delivery than our competitors for the same price we're charging now."  In fact, they figured that even getting more consistent around the six week lead time would be good for business.

One team member said that it was the first time he really understood what lean manufacturing was all about.

"And," I told them, "here's the thing:  the steps you need to take to reduce cycle time and variability always reduce costs."

VSM, then, looks at creating strategic advantage, not simply removing labor content.