Transitioning to Value Stream Organization Structure PPT


This PPT slide, part of the 118-slide Lean Enterprise Leader & Associate Overview Training PowerPoint presentation, illustrates a transition from a traditional functional organization to a value stream-focused structure. On the left side, the existing functional organization is depicted, with a Business Unit (BU) President or General Manager overseeing various departments such as Sales & Marketing, Product Engineering, Procurement, Finance, and others. Each department operates independently, which can lead to inefficiencies and silos.

The right side of the slide presents the new organizational model, emphasizing a value stream approach while maintaining functional support. This model still features the BU President or GM at the top, but introduces dedicated leaders for each value stream, labeled as Value Stream A, B, and C. This shift aims to enhance collaboration across departments, aligning teams around specific products or processes, such as rotors and housings.

The table below the organizational chart lists team members assigned to different roles within the value streams, indicating a clear assignment of responsibilities. This structure not only clarifies accountability, but also fosters a more integrated approach to product development and delivery. The presence of a Lean PMO (Project Management Office) suggests a commitment to Lean principles, ensuring that processes are continuously improved and aligned with customer needs.

Overall, this slide effectively communicates a strategic shift towards a more agile and responsive organizational design. The emphasis on value streams is intended to streamline operations, enhance communication, and ultimately drive better outcomes for the business. This approach is particularly relevant for organizations looking to optimize their processes and improve overall efficiency.




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