Task C1.1: Describe Value Streams

What is Task C1.1?

Task C1.1 is part of the "Decide" phase in the Viability Canvas methodology, specifically within the "Plan the Product Flow" step (Step C1). This task instructs you to "Describe Value Streams" by identifying and documenting the series of steps and processes involved in delivering products or services to customers, from initial request to final delivery and beyond.

Purpose of Describing Value Streams

The purpose of this task is to create a clear understanding of how value flows through your organization to customers. This serves several important functions:

1. Providing clarity: Creating a shared understanding of how work actually flows through the organization
2. Identifying operational units: Determining where natural boundaries exist in your value creation process
3. Revealing dependencies: Making visible the connections and handoffs between different parts of the process
4. Highlighting bottlenecks: Showing where constraints or delays occur in the flow of value
5. Establishing a baseline: Creating a reference point for identifying improvement opportunities

By describing value streams, you establish the foundation for all subsequent organizational design decisions in the Viable System Model framework.

Understanding Value Streams

In the context of the Viability Canvas, a value stream represents:

• The end-to-end sequence of activities required to deliver a product or service to a customer
• The flow of both materials and information through the process
• All steps from initial customer request through delivery and sometimes beyond (including service)
• Both value-adding activities and necessary non-value-adding activities

Value streams are typically organized around specific products, product families, or customer segments, rather than around functions or departments. They represent how work actually flows, which may differ from how the organization chart is structured.

How to Complete Task C1.1

To effectively describe your organization's value streams:

1. Identify distinct product/service families:
   • Group products or services that follow similar production paths
   • Consider customer segments that might require different approaches
   • Look for natural divisions in how value is created and delivered
2. For each value stream, map the end-to-end process:
   • Start with the customer request or trigger
   • Identify major processing steps in sequence
   • Include both physical/material flow and information flow
   • Note handoffs between different areas
   • Continue through to delivery to the customer
3. Document key characteristics of each value stream:
   • Typical volumes and variation
   • Cycle times for key steps
   • Quality requirements
   • Key resources required
   • Critical dependencies
   • Main information systems used
4. Visualize each value stream:
   • Create a high-level flowchart or value stream map
   • Show major processing steps in sequence
   • Indicate where different operational units are involved
   • Note key decision points and information exchanges
5. Validate with stakeholders who understand different parts of the process:
   • Ensure the description matches reality, not just the official process
   • Identify any variations or exceptions that occur regularly
   • Confirm that all significant steps are included

Example from Canned Tornado

In the Canned Tornado case study, they mapped three distinct value streams:

1. Standard battery modules for OEM customers:
   • Flow: Cell production → Standard module assembly → Testing → Packaging → Shipping
   • Characteristics: Higher volumes, standardized specifications, predictable demand
   • Key requirements: Cost efficiency, consistent quality, reliable delivery schedules
2. High-performance modules for special applications:
   • Flow: Cell production → Specialized module assembly → Enhanced testing → Custom packaging → Shipping
   • Characteristics: Medium volumes, enhanced specifications, variable demand
   • Key requirements: Higher performance, durability, specific technical features
3. Customer-specific solutions:
   • Flow: Customer requirements → Custom design → Cell production → Custom assembly → Extensive testing → Documentation → Delivery
   • Characteristics: Low volumes, highly customized, project-based
   • Key requirements: Technical collaboration, flexibility, documentation, specific performance criteria

By defining these distinct value streams, Canned Tornado created a clear foundation for segmenting their operational units and designing appropriate coordination mechanisms.

Value Stream Mapping Techniques

There are several approaches to mapping and documenting value streams:

1. Basic Flowchart: Simple visual representation showing the sequence of major steps with arrows connecting them.
2. Lean Value Stream Mapping: More detailed approach showing process steps, inventory locations, information flows, and key metrics (cycle time, changeover time, etc.).
3. SIPOC Diagram: High-level view showing Suppliers, Inputs, Process, Outputs, and Customers for each major step.
4. Swim Lane Diagram: Process map that shows which department or role is responsible for each step, highlighting handoffs.
5. Service Blueprint: Specialized for service processes, showing customer actions, visible staff actions, invisible staff actions, and supporting processes.

The appropriate technique depends on your organization's context and the level of detail needed. For the initial Viability Canvas analysis, a higher-level approach is often sufficient, with more detailed mapping reserved for specific improvement initiatives later.

By clearly describing your organization's value streams, you establish the foundation for all subsequent VSM analysis and design work, enabling you to create operational structures that align with how value actually flows to customers.