Value Factory

We can use the mental model of “Value Streams” to talk about operational plans modeled as a matrix of activities relating to a goal. We can use the mental model of a “Value Factory” to talk about the network of Value Streams that compose the system as a whole. That's the top level constraint on improving competative position.

The ways in which waste is incurred in software and services is different from what we find in factories. Grafting lean practices from manufacturing onto knowledge work processes tends to obscure the actual sources of waste. Value Factory helps identify where the leaks are, so managers have more to work with to create value.

To deliver on the opportunities identified by the business, managers need a feed of reliable and coherent signals from work activities, with the goal of bringing the allocation of resources in line with those activities which actually produce results.