valuestream

A value stream is the set of all actions required to bring a product or service from concept to customer, including both material and information flows. It encompasses value-adding steps and non-value-adding steps, and its goal is to maximize value while minimizing waste. The term is commonly written as two words value stream, though concatenated forms such as valuestream appear in some texts.

In Lean thinking, value streams are analyzed and optimized using value stream mapping, a visual tool that documents each step, its duration, resources, and dependencies. The map typically distinguishes value-added time from non-value-added time and highlights delays, inventory, and handoffs.

The scope usually spans from suppliers to customers and includes processes, people, information systems, transportation, and storage. It emphasizes both material flow and information flow, and often distinguishes the current state map from a future state or to-be map that eliminates waste and synchronizes steps using pull systems.

Methodology: choose a product family, map the current state, collect data on cycle times, changeovers, downtime, and inventory, identify wastes (overproduction, waiting, transport, extra processing, stock, motion, defects), design a future state that reduces lead time and creates continuous flow, then implement and measure progress with metrics like lead time, takt time, and overall equipment effectiveness.

Applications and impact: used in manufacturing, but also applied to services, software development, healthcare, and logistics. It helps organizations understand value creation, improve flow, reduce lead times, and align processes with customer demand.