Value Stream Mapping and the Cumulative Flow Diagram

  • Use value stream mapping to separate value-added time from waste in a delivery process
  • Read a cumulative flow diagram to spot bottlenecks, scope change, and work in progress
  • Calculate process throughput from a value stream map's work time and wait time

Value Stream Mapping (VSM) — a pictorial method to analyze the current state of a process and identify value-added time versus waste time in it, from conception all the way to delivery. Using that picture, the team devises a future-state process that minimizes the waste time and maximizes the value-added time. VSM's purpose is to identify the current state of a process, identify waste and potential roadblocks, streamline delivery, and optimize the overall workflow — it's based on the idea that every business represents a value stream, and the goal is to deliver as much value to the customer as quickly as possible.

A worked example: a hospital patient's journey runs reception formalities (10 min), a 15-minute wait, shift to the examination room (1 min), a 10-minute wait, examination by a junior doctor (15 min), examination by a senior doctor (5 min) — and so on through discharge (10 min), with waits of 10 and 5 minutes mixed in. Adding only the value-adding activities gives Work Time = 42 minutes; adding only the waits gives Wait Time = 40 minutes; Total Time = 82 minutes; and Throughput (process efficiency) = Work Time ÷ Total Time = 42 ÷ 82 ≈ 51%. Once the map shows where the waste actually sits — here, the waits dominate nearly half the total time — the team can target specific fixes (for example, collecting reception formalities and history data online, before the patient even arrives) rather than guessing at what to improve.

Cumulative Flow Diagram (CFD) — a graphical chart, commonly used in Kanban and Lean, that plots the number of work items (on the Y-axis, e.g. stories or features) against time (on the X-axis), with bands showing how many items sit in each state (commonly Backlog, Dev, Test, Done) at any given moment. It serves two purposes: understanding current progress — how much work is done, in progress, and in the backlog, and how fast the team is moving — and finding bottlenecks, lags, and other issues before they become obvious any other way.

Reading a CFD: a step up in the topmost (Backlog) line indicates a scope change — more work was added. The vertical gap between two adjacent bands at any point in time shows the work-in-progress (WIP) between those two states at that moment. The horizontal gap between two bands shows cycle time (or lead time, depending on which two bands are being compared) — how long items spend moving from one state to the next. A band that goes flat or barely grows while the bands above it keep climbing is the classic visual signature of a bottleneck — work is piling up upstream of that stage faster than it's draining out of it.

Reading practice: a widening gap between "Dev" and "Test" with Test essentially flat usually means plenty of work is being developed but very little is actually getting tested — a testing capacity bottleneck. A widening gap between "Test" and "Done" with Done rising in sudden jumps rather than smoothly often indicates deployment happens in batches rather than continuously, and that defect fixes aren't keeping pace with what's already been tested.

Study focus: for the exam, you're generally not expected to construct a CFD from scratch — you're expected to recognize what it is, what its axes represent, and what a flattening band or a widening gap between two bands is telling you about where work is piling up.

Key terms in this chapter

Value stream mapping (VSM) · Cumulative flow diagram (CFD) · Work in progress (WIP) · Cycle time · Lead time · Throughput

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