Value Stream Management Flashcards

What is 'Lead Time' in Value Stream Management?

Answer: The total time from when a customer request is made to when value is delivered to the customer

Lead Time is the end-to-end time from when a customer need is identified to when value is delivered, and reducing it is a primary goal of Value Stream optimization.

What is 'cycle time' and how does it differ from lead time?

Answer: Cycle time measures active work time on a specific item, while lead time measures total elapsed time including waiting

Cycle time measures only the active working time on an item, while lead time measures the total elapsed time from request to delivery including all wait states.

What is the 'cost of delay' concept and why does the RTE need to understand it?

Answer: The economic impact of delaying the delivery of a valuable feature, used to prioritize work in the ART and portfolio backlogs

Cost of Delay quantifies the economic impact of not delivering a feature on time, helping Product Management and the RTE prioritize work based on value and urgency.

How does the RTE use Value Stream thinking to improve ART performance?

Answer: By identifying bottlenecks, reducing WIP, eliminating handoff delays, and improving the flow of work from idea to delivery

The RTE applies Value Stream thinking by visualizing the entire delivery flow, identifying bottlenecks and waste, and facilitating improvements that increase throughput and reduce lead time.

What is a 'bottleneck' in a Value Stream, and how should the RTE handle it?

Answer: A constraint that limits the throughput of the entire value stream, which the RTE addresses by focusing improvement efforts on that constraint first

A bottleneck is the step in the value stream that constrains overall throughput, and the RTE should focus improvement efforts there, as it limits the entire system's output.

What does 'flow efficiency' measure in Value Stream Management?

Answer: The ratio of active work time to total elapsed time for an item, indicating how much time is spent adding value vs. waiting

Flow efficiency is the ratio of active work time to total lead time, and a low ratio indicates significant waiting and waste that the RTE should work to eliminate.