Create a Value Stream Map For the Assignment, select a value stream in your organization that can benefit from analysis and improvement. As noted previously, the value stream (or end-to-end process) s

Current Value Stream Map

Create a Value Stream Map For the Assignment, select a value stream in your organization that can benefit from analysis and improvement. As noted previously, the value stream (or end-to-end process) s 1

(I also attached this separately to Blackboard in its original PowerPoint format)

Calculations of Current State Summary Metrics

Total Lead Time:

(1 day) + (1 day) + (3 days) + (1 day) + (30 days) = 35 days

Total Processing Time:

(1 day) + (7 days) + (90 days) + (14 days) + (1 days) = 113 days

Activity Ratio:

(113 days) / (35 days) x 100 = 322%

Rolled %C&A:

(1 x 1 x 1 x .75 x 1) x 100 = 75%

Description & Challenges of Value Stream

The value stream of the Sales Cycle has an incredible amount of Processing Time simply because there are factors that cannot be controlled by us (SumTotal). Specifically, there is a lot of down time during the functions that is tied to “waiting on the client”, as well as going back and forth with the client on specifics that would be listed in more detailed process analysis.

The amount of time it takes to initiate our internal processes is very fast, respectively. It doesn’t take long at all from when a Sales Opportunity is found, to create a team, engage with the client, and create a demo. That process is usually very fast and fluid. The challenges lie in-between the Demo and Negotiation. The reason for so much Processing Time is due to the client getting back with their team, going over what was presented, reaching back out to SumTotal with questions, seeing multiple vendor demos, checking references, etc. It’s also incredibly common to have the work in progress completely stopped due to the client not responding to correspondence, which is better known as “going dark”.

Once/if SumTotal is selected as the winning vendor, moving the process from a verbal close to a signed contract takes about two weeks of pricing negotiation, and then a few rounds of back and forth between Legal teams. We can get a contract created within a day, so again, the processing time is tied to elements out of the control of SumTotal. The client’s Legal team almost always creates changes with our contracts, due to language they feel they need to revise.

The only place SumTotal has a major delay in the overall value stream map is the 4 week lead time after the client signs the contract, and we begin their platform implementation. This also the only bottleneck of the process, and it has a major shift in “who” has to handle the work. Our Professional Services Team handles all of the implementation work, and they have a current backlog of at least 4 weeks before they can start on signed agreements.

References:

Martin, Karen., Osterling, Mike. (2014). Value Stream Mapping. New York, NY. McGraw Hill Education.

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