What does a value stream encompass?

A value stream refers to the complete range of activities required to create a product or service, from the initial concept through to its delivery to the customer. This includes not only the production phase but also all the activities that add value throughout the process, such as design, production, logistics, marketing, and customer support. Each step in the value stream contributes to the final value perceived by the customer, making it essential to consider the entire process for effective management and improvement.

By recognizing and optimizing every activity that contributes to production and delivery, organizations can identify waste, streamline processes, and enhance overall efficiency, ultimately delivering greater value to customers. This holistic approach is crucial in operations management, ensuring that all elements align towards fulfilling customer demands and expectations effectively.