What is the Value Stream in SAFe?

As per my experience, I have found that people find the value stream concept in a scaled Agile framework hard to grasp. However, this is not rocket science;  professionals can easily understand. Simply put, the value stream in SAFe denotes several steps organizations employ to offer value to their customers.

Therefore, in simple terms, these organizations are finding unique solutions that help in meeting customer demands. Here I will discuss more about the types, roles, and unique challenges that value stream implementation presents. 

Types of Value Streams in SAFe

To understand the value stream in SAFe, firstly you need to understand the types of value streams available. In any business, there are two types of working processes involved in delivering a product. 

The first is the backend process, where the development of the product happens and the other is the frontend, where the client comes into play. 

Therefore, as per the suitability, there are two different types of value streams; they are: 

1. Operational

2. Developmental

Let me introduce each of the aspects of the value stream in SAFe in detail: 

1. Operational

The operational value stream underlines the steps and processes that a company uses to deliver products to its customers. Such strategies include marketing, manufacturing, delivery, or direct customer service as well. Effective value stream also plays a key role in delivering service without any disruptions. 

Here is a basic representation of value flow from one point to another: 

Steps (evaluates activities necessary in providing value) —> Personnel (people who work in every step to ensure value creation) —> Systems (ways taken by personnel to complete the tasks) —> Materials (physical goods, funding, and information needed for keeping value flow intact). 

2. Developmental 

Developmental value stream refers to a sequence of activities needed to convert a business hypothesis into a digitally enabled solution. For example, you can take the formulation of an e-commerce website, where the products are listed for sale.

Therefore, it indicates the sets of steps and solutions that are specifically procured to support the operational value stream in SAFe framework. Additionally, every employee and process of the operational value stream is also a part of the developmental value stream as well. 

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Components of a SAFe Value Stream

There are four essential components of a value stream in the SAFe framework. These components are as follows:

1. Customer 

One of the essential components of any value stream is always going to be the customers. I recommend starting with the value stream from the customers and proceeding forward. You can also draw the customer symbol on the map and calculate the Takt time. 

(Product assembly time to meet demand) Takt time = Net time available to work/customer demand. 

Thus, with the map, when you calculate this, you get the average time required to keep up with production to meet demand. Now if the calculation shows that the cycle time for the product is greater than the Takt time, it indicates bottlenecks in production. 

2. Supplier 

After drawing the customer, the next thing will be to draw the suppliers on the map. As per my understanding, it will be efficient for you if you just include one single supplier for a particular type of need. At least, you can take a proactive approach to see the inbound materials or products using the value stream in SAFe. 

Once you have an idea regarding the production, it helps you better map the production times and see if there are some bottlenecks in the delivery of materials. 

3. Product Flow 

Product flow is the step where you get an idea of how the material is moved through the production process. 

Understand how a particular raw material is transformed into a finished product and how it is sold to the customer. For each of the workstations or departments, the product flows through, there is a mapping regarding the following: 

• Cycle time

• Changeover time 

• Uptime 

• Number of Shifts 

• Number of operators 

• Amount of available time to push through the manufacturing stage

By having a brief understanding of all such roles, you can be better acquainted and ensure streamlined delivery. 

4. Information Flow 

Information flow generates the product flow and it is through the means of understanding the documentation. The information regarding the operations can be streamlined by assessing how the demand is received, or schedule sending, and planning the production process. 

These are the important things for consideration in the flow of the value stream in SAFe. However, after the flow is properly set up, the next important step is to track the KPIs and evaluate the performance. With such strong and impactful monitoring, the value stream in SAFe works appropriately for the end users. 

Also Read: SAFe Agilist vs SAFe Scrum Master

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Identifying and Defining Value Streams

The process of identifying and defining the value stream in SAFe provides fundamental support in working. 

Before proceeding with some tasks and setting a pace ahead, you must evaluate certain factors; they are as follows: 

1. Identify Customers

As I have mentioned above, identifying the customer is one of the basic aspects of starting an operation. The customer might be the end user, or they might be a team that needs support. 

2. Define the Triggers

The next important step for initiating the value stream in SAFe is to understand the trigger accurately. See the nature of the triggers and also identify the purpose that the trigger serves. 

Recognize the triggering aspect appropriately and see if it is an internal process need, an external client need, or a strategic business need. When the reason for the trigger is appropriately assessed, it helps in creating a stable value chain as well. 

3. Outline the Process Steps 

Now it becomes important for you to outline the process of one step to another in delivering value. One of the best ways it can be done is by using the documentation of the key steps and also ensuring that you can understand which steps are needed and steps that can be omitted. 

Take a simple example where the software needs to be developed for a particular purpose. You need to understand the requirements, generate code that fits, and start testing the same. 

Ultimately, the value stream in SAFe is quite simple and it involves generating additional values per deliverable towards customers. 

4. Initiate Tracking and KPIs 

The next step is to ensure that all the KPIs are met accordingly. If the KPIs are good, it indicates smooth production and no bottlenecks. However, in case there are some bottlenecks, an immediate review must be conducted. 

Ultimately, tracking the project and understanding the KPIs helps in better planning and execution of the project as well. 

5. Evaluate Potential Bottlenecks and Dependencies 

The next step is to make sure that all the bottlenecks and project-based dependencies are mapped. Mapping such bottlenecks and dependencies helps make sure that the production process is smoother. Take the example of a software development team, where each person is responsible for a certain part of the development. 

In such a case, if there are any delays from any of the team members, the operations might stall immediately. Additionally, you also need to make sure that if there are dependencies that might produce bottlenecks, you can get help from substitutes as well. 

6. Iterate and Redefine 

The value stream in SAFe is not the same and they need to be updated as per the requirements appropriately. Depending on the changing needs of the customers, it is truly dynamic. Regularly reviewing the performance metrics and reviewing performance helps make a significant difference in your life as well. 

Related Blogs: How to Upgrade to SAFe 6.0?

Challenges in Managing Value Streams

There are many challenges in managing the value stream in SAFe; some of them are:

1. Difficulty in Removing Bottlenecks

This is one of the core factors where managing bottlenecks becomes a problem. If the team or a project has dependencies, it is better to find alternatives. Bottlenecks are, however, not only related to the employees or members of a project; rather, they can also be a particular software or a system. 

2. Breaking Through Traditional Mindset

Some people also face challenges regarding breaking through the traditional siloed approach. Therefore, teams that are potent enough to handle any kind of working environment make a difference. On the other hand, if the teams are siloed as per department, communication and output production are usually lower. 

3. Lacks Economic Measures 

Creating a value stream in SAFe is simple and requires only the flow of the tasks. However, in the case of such planning, there is no proper understanding of the economic viewpoint of the processes as well. Thus, identifying inventory costs and managing the budgets might get hectic as well. 

Although there are a lot of benefits to using the value stream in SAFe, the negative effects must be considered as well. However, from my experience, I assure you that these negative effects can be easily removed using suitable measures as well. 

Conclusion

Value stream in SAFe plays a crucial role in making sure that you get your workflows designed as per customer deliverables. Thus, in such a case, any kind of value required for the customer can be delivered in each of the steps as well. 

With a better value stream in place, organizations can ensure a better delivery of value from start to end. Mapping all the points, starting from initiating the work to final delivery, helps in generating a better value for the clients as well. With StarAgile’s SAFe certification, you can get better career versatility and work well towards managing a project. 

Frequently Asked Questions

1. What is a SAFe operational value stream?

Value stream in SAFe is a technique that helps in framing a series of activities that help in delivering a service or a product to the customer. Such value stream methods often involve order fulfillment, producing the deliverables, taking a loan for the operations to continue, and making the final delivery. 

2. Why are value streams important in SAFe?

One of the core aspects of the value stream in SAFe is to make sure that wastes are minimized and a streamlined production process is achieved. Ultimately, value stream mapping can be applied for both product delivery and project completion as well. Apart from that, it ensures that from top to bottom of production, each step performed adds value to the production. 

3. How do you identify a value stream in an organization?

To identify the value stream in SAFe, there is a compact procedure that involves initial checks regarding the requirements. Once done, you can proceed over to checking the steps involved in analyzing the deadlines and alerting the team effectively. Design a value stream funnel and proceed working forward.