Enterprise Value Stream
Mapping and Analysis
Stakeholder Value Metrics!
March 25, 2002!
Presented By:!
C. Hallam, J. Mize!
MIT LAI!
Research Sponsored (Jointly) By <insert funding source>!
Lean!
Aerospace!
Initiative!
Function to Requirements
Reliability
Availability
Customer Value
Product Performance
Defects
Failure Rate, MTBF
Responsiveness
Early Involvement
Quality of Support
Open Communications
Trust
Risk Sharing
Benefit Sharing
Viability of Enterprise
Product /
Service
Quality
Relationship
with
Corporation
CUSTOMER
SATISFACTION
Product Development Cost
Acquisition Cost
Operating Cost
Support Cost
Retirement Cost
Retention of Resale Value
Order Lead Time
Product Development Time
Maintenance/Repair/Overhaul Time
On-Time Delivery
Just in Time Capability
2 - Team Initials/Presenter - 041001 © 2001 Massachusetts Institute of Technology!
Cost of
Ownership
Cycle
Time
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Lean!
Aerospace!
Initiative!
Market Information
Demand Information
Design Information
Production Information
Product/Process Improvement
Supplier Value
Training/Assistance with Process Improvement
Supplier Certification
Early Involvement (design, development, production)
Information Sharing
Technology Sharing
Viability of Enterprise
Long Term Relationship
Corporation's Market Reputation
Fair Pricing
Risk Sharing
Equitable Benefit Sharing
On-Time Accounts Receivable
Growth in Market Share
3 - Team Initials/Presenter - 041001 © 2001 Massachusetts Institute of Technology!
Relationship
with
Corporation
SUPPLIER
SATISFACTION
Financial
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Lean!
Aerospace!
Initiative!
Increased Operational
Effectiveness?????
Shareholder Value
Earnings/Share
Financial Ratios
Corporate Profit
Share Price
Bond Interest Rate
Corporate Debt
Corporate Equity
Bond Rating
Share Rating
Barriers to Entry
Market Share
Competitors
Substitutes
Branding
R&D Investment
New Product Successes
Track Record
Vision Expression
Respect (internal and external)
Perception of Ability to Perform
Information Availability
Goodwill
Reputation
Regulatory Compliance
4 - Team Initials/Presenter - 041001 © 2001 Massachusetts Institute of Technology!
Return
Risk
Market
Position
Growth
Potential
SHAREHOLDER
SATISFACTION
Executive
Leadership
External
Relations
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Lean!
Aerospace!
Initiative!
Individual
Team
Lost Time Incident Rate
Employee Empowerment
Employee Value
Salary
Benefits
Bonus
Skills are valued
Safety
Environment/OSHA
Ergonomics
Good Management Relations
Timely Communications
Two-way Communications
Job Security
Training
Potential for Career Advancement
Employability
Community Relations
Company Reputation/Personal Pride
Quality of Life
5 - Team Initials/Presenter - 041001 © 2001 Massachusetts Institute of Technology!
Compensation
Work
Environment
EMPLOYEE
SATISFACTION
Career
External
Factors
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Lean!
Aerospace!
Initiative!
Corporate Tax on Profits
Property Tax
Income Tax of Employees
Local Sales Tax
Suppliers
Supporting Commerce
Reduction of Emissions
Waste Reduction
Societal Value
Tax Revenue
Charitable Contributions
Secondary and Tertiary Industry
Job Potential
Job Security
Voluntary Efforts
Environmentally Friendly Practices
Quality of Work Environment
Adherence to Regulations
6 - Team Initials/Presenter - 041001 © 2001 Massachusetts Institute of Technology!
Financial
Economic
Attractiveness
of Industry
SOCIETAL
SATISFACTION
Corporate
Citizenship
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Lean!
Aerospace!
Initiative!
Headcount Protection
Position Protection
Union Value
Job Security
Compensation
Benefits
Safety
Job Classifications
Seniority Rights
Sharing in Decision Making
Contribution to Long-term Corporate Success
Instill Sense of Pride in Workforce
Strike Threat Capability
Encourage Involvement in Innovation
Employment
Power
UNION
SATISFACTION
Political
Action
Committees
7 - Team Initials/Presenter - 041001 © 2001 Massachusetts Institute of Technology!
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Lean!
Aerospace!
Initiative!
Corporate Value
Revenue
Expenses
Stock rating
Bond rating
Market Share
Barriers to Entry
Competition
Substitutes
Branding
New Product Development
New Market Development
Profits
Growth in profits
Other financial ratios
Cash flow
Ability to raise capital
Financial
Market Position
Growth Potential
Sustainability
Continuous Improvement
Knowledge Management
Contribution to Innovation
Productivity
Turnover
Cost (Salaries & Benefits)
Safety
Sick/Absent days
Loyalty
Customer satisfaction
Loyalty
Sales
Timely Accounts Receivable
CORPORATE
SATISFACTION
Employees
Customers
High Quality
Low Cost
Timely Delivery
Suppliers
Stakeholder
Fewer Conflicts
Unions
Infrastructure Support
Long Term Partnership
Society
Political/Public
8 - Team Initials/Presenter - 041001 © 2001 Massachusetts Institute of Technology!
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Lean!
Aerospace!
Initiative!
9 - Team Initials/Presenter - 041001 © 2001 Massachusetts Institute of Technology!
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