Value Stream Mapping

Definition of Value Stream Mapping as it relates to Business, Accounting Principles, Cost Accounting

Value Stream Mapping is a visual tool used in business management to analyze and design the flow of materials, information, and processes required to bring a product or service from concept to customer. It originates from lean manufacturing principles and is closely related to accounting practices such as cost accounting and general accounting principles. Value stream mapping involves creating a detailed diagram that illustrates all the steps necessary to complete a process, including both value-added and non-value-added activities. The goal of value stream mapping is to identify areas for improvement and eliminate waste, leading to more efficient and effective business operations. By visualizing the entire value stream, organizations can gain a deeper understanding of their processes and make data-driven decisions that drive continuous improvement and maximize value for customers.

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