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Glossary

Value stream

Value Stream - a closed loop of value circulates through the company and customers, somewhat like fluid flowing through pipes. Separate parts of the general flow have their form of value, processes, laws of separation of flows, etc.

Business Value Stream - a value stream of a particular business. A business line is characterized by its set of goods or services delivered in a certain way to its customer segment.

Stream Transformer - an employee, team, division, company, customer, or other value stream transformer that changes incoming value and creates new value. Further downstream value is transferred differently.

Stream Segment - a transport pipe through which the value from one stream transformer passes to another.

Value Element - an entity that conveys value in a flow. Such an entity at various flow segments could be product changes, risk mitigation, product maintenance, handling a user request, or any other work of value to a downstream transformer.

Anti-Value Element - an entity that conveys a negative value in a stream. Such an entity can be a payroll deduction, an incident, employee mistakes, customer complaints, hacking attacks, etc.

Value Element Model - rules, conditions, and requirements for changing the value of an element based on various conditions. For example, solving a marketing promotion issue will not have the same value after a specific date.

Transformer Domain - a type of transformer property, such as security, performance, architecture, etc. The domain represents a specific entity in each transformer. For example, Team Architecture is an organizational structure, or Product Architecture is an Application and Infrastructure Architecture.

Domain Policy - the top-level requirements for managing the domain of a particular transformer in Value Stream. The policy restricts the implementation of certain practices in the stream transformer.

Events

Value Stream Design Meeting - the value stream of a particular business must be documented (entities that represent value are defined, and agreed upon method for measuring business value). Responsible for hosting and moderating the meeting Value Stream Owner.

Value Stream Optimization Meeting - Finding losses and opportunities for value grow and stream optimization based on experience and vision. Responsible for holding and moderating the meeting Value Stream Manager.

Stream Transformer Design Meeting - the stream transformer design must be documented (value elements, policies, practices, plans). Responsible for hosting and moderating the meeting Stream Transformer Owner.

Stream Transformer Optimization Meeting - Finding losses and opportunities for value grow and stream transformer optimization based on experience and vision. Responsible for holding and moderating the meeting Stream Transformer Manager.

Indicators

Business Value Points - an abstract value that measures the usefulness of value elements or the damage of anti-value elements for a specific business. Typically, business value points can be expressed in terms of money (with a set of assumptions).

Value Production - the number of business value points delivered by a stream segment in a given period.

Value Consumption - the number of business value points the converter has received in a certain period.

Transformer Efficiency - the ratio of the produced value to the consumed value for the same period of a specific transformer.

Value Production Plan - the number of value points planned to produce by a specific transformer in a certain period.

Value Plan Feasibility - the ratio of the value production plan to the actual value.