📚 Learning Guide
Business Analysis Techniques
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In the context of Business Analysis, how does Gap Analysis differ from Value Stream Mapping when assessing a company's processes?

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Learning Path

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Choose the Best Answer

A

Gap Analysis focuses on identifying discrepancies between current and desired performance, while Value Stream Mapping visualizes the flow of materials and information.

B

Gap Analysis is solely about financial performance, and Value Stream Mapping is about employee satisfaction.

C

Gap Analysis is used for market analysis, and Value Stream Mapping is used for customer feedback.

D

Gap Analysis does not require data, whereas Value Stream Mapping relies heavily on data.

Understanding the Answer

Let's break down why this is correct

Answer

Gap Analysis looks for the distance between where a company is now and where it wants to be, focusing on missing skills, resources or capabilities that create a performance gap. Value Stream Mapping, on the other hand, draws a detailed picture of every step in a process, showing how materials and information flow from start to finish and highlighting waste or delays. While Gap Analysis asks “what do we lack to reach our goal? ” Value Stream Mapping asks “how does the work actually move and where can it be made faster or cheaper? ” For example, a retailer might use Gap Analysis to find that it needs better inventory data, then use Value Stream Mapping to see that the current ordering process takes too long and creates stockouts.

Detailed Explanation

Gap Analysis checks how far a process is from its ideal state and shows where improvement can happen. Other options are incorrect because It is easy to think Gap Analysis only deals with money and VSM only about people, but Gap looks at any difference between current and desired outcomes, not just finances; Some may assume Gap Analysis is only for market research and VSM is about gathering customer opinions, but Gap is for any process gap, not just market.

Key Concepts

Gap Analysis
Value Stream Mapping
Topic

Business Analysis Techniques

Difficulty

medium level question

Cognitive Level

understand

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