What does the term "value stream" refer to in Lean methodology?

The term "value stream" in Lean methodology specifically refers to the flow of information and materials that add value to a product or service from start to finish. It encompasses all the steps and activities involved in delivering value to the customer, identifying which actions are value-added and which ones are not. By mapping the value stream, organizations can visualize processes, highlight inefficiencies, and find ways to eliminate waste while enhancing value delivery.

This concept is central to Lean thinking, as it emphasizes the importance of understanding and optimizing the entire process that contributes to the value perceived by customers. By focusing on the value stream, teams can streamline operations, reduce cycle times, and improve overall product quality, thereby aligning closely with customer expectations and needs.