Value Streams Inventory and Attributes - Assessment and Health Attributes for the Value Streams Inventory

Value Streams Inventory and Attributes

Chapter 14. Assessment and Health Attributes for the Value Streams Inventory

Assessment and Health attributes capture the measured and evaluated state of each Value Stream — how long it takes end to end, how efficiently value flows through it, where it is constrained, and how it scores against assessed dimensions.

Attribute Name	Maturity	Description and Notes
End-to-End Cycle Time	Walk	Description — The total elapsed time from the triggering event to the delivery of value, measured across the entire Value Stream. Benefit(s) — The single most recognizable value stream performance measure — the basis for improvement targets and for comparison against stakeholder expectations. Source — Manual Examples — 8 business days (Order to Cash); 4 hours (Incident to Resolution) Notes — Record the typical or median elapsed time, and note the measurement basis. Elapsed (calendar) time, not active working time.
Flow Efficiency	Run	Description — The ratio of value-adding time to total elapsed time across the Value Stream, expressed as a percentage. It quantifies how much of the end-to-end cycle time is spent actively creating value versus waiting. Benefit(s) — The signature diagnostic metric of value stream health. A low flow efficiency reveals that the value stream is dominated by waiting, hand-offs, and queues rather than by value-adding work. Source — Calculated Notes — Calculated as value-add time divided by total lead time. Most value streams that have never been analyzed exhibit flow efficiency well below 25 percent. Run-tier because it requires measuring value-add versus wait time at each stage.
Bottleneck Stage	Run	Description — The stage of the Value Stream currently constraining overall flow — the stage whose capacity or cycle time most limits the throughput of the whole value stream. Benefit(s) — Directs improvement effort to the single point where it will most improve end-to-end performance. Source — Manual Examples — Underwriting and Decisioning; Assessment and Investigation Notes — Names one of the stages listed in the Value Stream Stages attribute. The bottleneck moves over time as the value stream is improved; this attribute reflects the current constraint.
Assessed Maturity	Walk	Description — A practitioner assessment of how well the enterprise performs this Value Stream relative to industry peers and best practices. Benefit(s) — Connects the value stream portfolio to improvement investment decisions. Source — Manual Examples — Exceeds Industry, On-Par w/ Industry, Lags Industry, Non-Existing Notes — Valid values: Exceeds Industry, On-Par w/ Industry, Lags Industry, Non-Existing. Assessed annually.
Performance Rating	Walk	Description — A health and performance summary for the Value Stream, updated on the inventory’s review cadence. Benefit(s) — Enables a portfolio-level value stream health dashboard. Source — Manual Examples — Red, Yellow, Green Notes — Valid values: Red \| Yellow \| Green.

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