A cross-functional team is designing a value stream to support the development of a new financial service. Some members of the team are suggesting that multiple value streams are needed. Which…

Question

Options

• AThe methods used to manage the development work
• BWhether the service is being created for internal or external customers
• CThe number of practices required to support the service
• DThe number of suppliers that will be used to source service components

• A
  77% (24)
• B
  3% (1)
• C
  13% (4)
• D
  6% (2)

Explanation

Option A is correct because a value stream maps the specific sequence of steps and activities used to deliver value - and fundamentally different development methods (e.g., Agile vs. traditional waterfall) produce different workflows, handoffs, and activity structures, making a single value stream unable to accurately represent both. Whether the service targets internal or external customers (B) doesn't inherently change the flow of work, so one value stream can often serve both; customer type is a demand consideration, not a workflow differentiator. The number of practices (C) is irrelevant because a single value stream can incorporate many practices - practices are building blocks within a stream, not reasons to split them. The number of suppliers (D) affects procurement and supply chain management but is handled within a value stream through the Supplier Management practice, not by creating separate streams.

Memory tip: Think of a value stream as a recipe - if you cook two dishes with completely different cooking methods (grilling vs. baking), you need two separate recipes. Different development methods = different step-by-step workflows = multiple value streams.

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