Most, however, fall into two categories:
operational value streams and development value streams
. Both result in the creation of value for a customer (internal and/or external) and can come in the form of products, services, or a combination of the two.
How do you define a value stream?
A value stream is
the primary construct for understanding, organizing, and delivering value in SAFe
. Each value stream is a long-lived series of steps used to create value. A trigger starts the flow of value, and there's some form of monetization or value delivered at the end.
What is a business value stream?
Value streams, at their ideal notions, are
defined by the sequential processes a business uses to create solutions that provide the best possible quality and value added to people and society
. Value streams can either deliver the end customer value directly or support internal business processes to achieve this.
What best defines a value stream?
It also is defined as those activities that your Customer is willing to pay for — and are done right the first time. … The value stream can be defined as the
set of activities that occur to add value to your customer from the initiating step to the final realization of value by your customer
.
What is an example of a value stream?
Manufacturing value streams convert raw materials into the products customers purchase. Examples include
consumer products, medical devices, and complex cyber-physical systems
. Software product value streams offer and support software products. Examples include ERP systems, SaaS, and desktop and mobile applications.
What is the first step in the VSM?
The first step in value stream mapping is
to create a current state map
. This map can help identify waste such as delays, restrictions, inefficiencies, and excess inventories. These are then eliminated in the ideal state map, which gives the organization a working plan to achieve lean efficiency.
What are the 2 types of value streams in SAFe?
Build Technology Portfolios of Development Value Streams
Value streams optimize the flow of value across divisions and functional departments and through the system as a whole to the customer. SAFe describes two types of value streams,
operational and development
.
How many types of VSM are there?
There are
two kinds
of value stream maps, current state and future state. The current state value stream map is used to determine what the process currently looks like, the future state value stream map focuses on what the process will ideally look like after process improvements have occurred to the value stream.
How do I create a value stream?
- Determine the scope of your value stream map. Create your start and end points first, and place them in the top left and right corners of your document. …
- Map the steps of your process. …
- Add inventory and wait times. …
- Designate the direction of information flows. …
- Create a timeline.
How is VSM calculated?
Process efficiency In VSM, the ratio of process time (value adding time) to lead time.
Calculated by dividing the total process time by total lead time
. Also known as flow-time efficiency.
What are the benefits of VSM?
- Benefit #1: Value Stream Mapping Identifies Wastes. …
- Benefit #2: Value Stream Mapping Makes Processes Efficient. …
- Benefit #3: Value Stream Mapping Aligns Cross-Functional Teams for Greater Buy-In. …
- Benefit #4: Value Stream Mapping Provides Center Point for Conversation on Future Growth.
What is a value stream Six Sigma?
Value stream mapping is a technique — developed from Lean manufacturing — that organizations
use to create a visual guide of all the components necessary
to deliver a product or service, with the goal of analyzing and optimizing the entire process.
Is order to cash a value stream?
“Order to Cash” Value Stream: The order to cash business value stream comprises of all the steps from the moment a
customer places an order to fulfillment
and receiving cash/payment.
What elements are included in value streams?
- Customer. The first thing to draw on the value stream map is the customers. …
- Supplier. Next draw on the suppliers. …
- Product Flow. The product flow shows how material is moved through the process. …
- Information Flow. The information flow governs the product flow.
What is kanban lean?
Kanban is one
of the Lean tools designed to reduce the idle time in a production process
. … Lean uses visual cards as a signaling system that triggers an action to supply the process with its needs either from an external supplier or from a warehouse.
How do you use VSM?
- Use a simple matrix to show products that use the same process route.
- Add process boundaries and process steps to your VSM.
- Add information flows to your VSM.
- Add data to data boxes on your Value Stream Map.
- Our completed current State Value Stream Map.
