Scaled Agile Framework (SAFe) Lean Portfolio Management Practice Exam

Which of the following is a Lean Thinking principle?

1. Establish a fixed pricing model

2. Identify the Value Stream for each product

3. Design for maximum flexibility

4. Define clear project timelines

The correct answer is: Identify the Value Stream for each product

Identifying the Value Stream for each product is a key principle of Lean Thinking. This principle emphasizes understanding the flow of value towards the customer by mapping out all the steps involved in the production and delivery of a product or service. Focusing on the Value Stream helps organizations eliminate waste, streamline processes, and enhance value delivery, which ultimately contributes to higher customer satisfaction. By effectively identifying the Value Stream, organizations can pinpoint areas for improvement, facilitate better decision-making, and ensure that efforts align with delivering value to the customer. It fosters a continuous improvement mindset by encouraging teams to reflect on how they can optimize each part of the workflow. The other choices center around specific practices or methodologies that might not align with core Lean principles. Establishing fixed pricing models, designing for flexibility, or defining clear project timelines may not focus directly on value delivery or waste reduction, which are central themes of Lean Thinking. Rather, they could be elements of broader project management practices rather than the Lean foundation itself.