In the production world, "value" is one of the main tenets of lean philosophy and value stream analysis and mapping (VSA/M) considered a critical first step in beginning a lean manufacturing implementation. Whether or not this holds true for product development is a subject of debate.
For a good background on VSA/M, you'll definitely want to download the following article from MIT's Lean Aerospace Initiative:
"Value Stream Analysis and Mapping for Product Development"
by Hugh L. McManus and Richard L. Millard

This article will provide you with a thorough understanding of VSA/M's place in the Lean toolbox, how it is generally applied, the types of analysis required, sample output charts and some examples of how it is used by real companies.
Like all tools used in the manufacturing environment, particular scrutiny must be paid to how well they may work in the development and engineering areas. The specific debate regarding VSA/M centers on disagreements about the tool's benefit vs its cost.
Proponents of mapping tools will argue that you can not properly focus or even identify opportunities for improvement until you can map the system fully. Those with a contrary view will counter that the VSA/M exercise consumes valuable time and resources better spent focusing on more immediate high leverage improvements.
It does appear that VSA/M is of most use with large and complex projects. This seems logical and in line with the fact that the above article is taken from the aerospace industry. Also, VSA/M requires much time to do the necessary data collection, compilation and examination, and it takes much effort before you even can begin to see the value that is being mapped.
If you look at Figure 5 from the article, you will see a sample data collection sheet from a VSA/M exercise. From this it is easy to see the level of effort required as this is supposedly just a single data sheet from a system that could easily require hundreds more to complete the full map.
One could argue that a small, less complex project would be more manageable to map, but by the same token, you could say that a smaller, less complex project should not require such robust data to sort out the highest leverage opportunities for lean process application.
These types of value stream data sheets also seem to convert the product development process to a "gaming" system one might find in popular resource management simulation games such as SimCity or Theme Park Tycoon. In such games, a player can affect his success in managing something like an amusement park by tweaking numbers, for example, adding extra entrances to reduce wait time, raising concession prices strategically, etc. With value stream data maps, one could similarly play with scenarios like reducing the approval gates in the design process or changing the priority level of a particular test mode. This is not a judgement, just an interesting observation.
For those reading this, what are your thoughts on the value of value stream mapping? Is it an essential first step or glorified goose chase (or somewhere in the middle)?