agile series - about lean
TRANSCRIPT
Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.
Lean Development
Speed, Scale, Skills, Simplicity
http://www.flowcracker.com
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Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.
Principle Consultant – Durgaprasad B. R
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Durgaprasad B. R 20+ Years of IT experience B. E (E & C), Alumni of
IIM,Bangalore Certifications
PMI-PMP, PMI-ACP SCP from Scaled
Agile Academy
Durgaprasad B. R 20+ Years of IT experience B. E (E & C), Alumni of
IIM,Bangalore Certifications
PMI-PMP, PMI-ACP SCP from Scaled
Agile Academy
Developer, Project/ProgramManager, Location DeliveryHead, Agile Coach
Industries: Telecom,Healthcare, ConsumerElectronics, Automotive
Past few Clients: Avaya,Nortel, ALU, Microsoft,Qualcomm, Intel, Toshiba,Continental
Technologies: WebTechnologies, Embedded,Legacy large systems
Developer, Project/ProgramManager, Location DeliveryHead, Agile Coach
Industries: Telecom,Healthcare, ConsumerElectronics, Automotive
Past few Clients: Avaya,Nortel, ALU, Microsoft,Qualcomm, Intel, Toshiba,Continental
Technologies: WebTechnologies, Embedded,Legacy large systems
Led large Telecomprograms, IP Switches,Voice Messaging System,Contact Center, ConsumerElectronics products,Automotive productdevelopment
Well versed in new agetechnologies as well as sun-set technologies
Trained and coachedindividuals and teams onAgile, Kanban, Scrum andSAFe methodologies
Regular public workshopson PMP, ACP and SAFeCertifications
Led large Telecomprograms, IP Switches,Voice Messaging System,Contact Center, ConsumerElectronics products,Automotive productdevelopment
Well versed in new agetechnologies as well as sun-set technologies
Trained and coachedindividuals and teams onAgile, Kanban, Scrum andSAFe methodologies
Regular public workshopson PMP, ACP and SAFeCertifications
http://www.flowcracker.in/about-durgaprasad-b-r/Contact: [email protected]. Cell: 9845558474
Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.
LeanDevelopment
Toward beingSAFe™
Agile Scrum
KanbanXP – ExtremeProgramming
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THE OATH OF NON-ALLEGIANCE
I promise not to exclude from consideration any idea based on its source, but toconsider ideas across schools and heritages in order to find the ones that best suit thecurrent situation.
- DURGAPRASADhttp://oathofnonallegiance.com/
Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.
LeanDevelopment
Toward beingSAFe™
Agile Scrum
KanbanXP – ExtremeProgramming
Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.
Background
Toyota ProductionSystem/ Lean
AgileManufacturingHistory
Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.
Manufacturing History
CraftProduction
MassProduction
LeanProduction
Lean avoids the high cost of craft and rigidity of the massmanufacturing
Uses multiskilled workers. Uses highly flexible, increasinglyautomated machines to produce volumes of products in enormousvariety
Lean : Because it uses less of everything compared with massproduction
Quality goal : Perfection
Use narrowly skilled professionalsFocus on high volume, standardized productsMaintain standard design in productionAdd extra buffer, workers, space to ensure FLOWEmployees find work methods, boring and despirtingConsumer gets lower cost at the expense of varietyQuality goal: “good enough”After WW-1, Henry Ford & Alfred Sloan (GM),
moved world manufacture from craft productionled by Europeans into the age of mass production
Post WW-II, EjiToyoda and Taiichi
Ohno of Toyota,pioneered the
concept of Leanproduction.
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Manufacturing HistoryArmour Meatprocessing plantEarly 1900’s
Principle - movingproducts &
Stationary workers
Ford’s highlandpark plan byAlbert Kahn1910+
Reduced assemblytime for Model T
from 728 minutes to93 minutes
Toyota –Motomachi Plant(Japan) 1950+
Toyota ProductionSystem –
elimination ofwaste
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Lean Thinking Vs. TraditionalThinking
• Traditional Thinking– Focus on maximum Utilization of resources
• Lean Thinking– Watch the baton, not the runners
Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.
Background
Toyota ProductionSystem/ Lean
AgileManufacturingHistory
Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.
Toyota Production System
“Only after American carmakers had exhaustedevery other explanation for Toyota’s success,
including better suppliers, cheaper labor, a heavierinvestment in robots etc., did they finally
acknowledge that the true differentiator lay inharnessing the intellect of ordinary employees ”
- Mary Poppendick(Lean Software Development)
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About Toyota• Started in 1937, by Toyota family as textile loom manufacturer• In 1950, Eji Toyoda & Taiichi Ohno visited Fords Detroit plant for 3 months• They realized the whole plant was filled with waste – TIMWOOD• Ohno thought assembly workers could do most of the work done by specialists
better because of their familiarity with ground situation• Domestic market was tiny, needed variety and was just recovering from war• Toyota had to guarantee its employee in labor settlement
• Life time employment• Pay steeply graded by seniority (than productivity)(i.e. employees became members of Toyota community with lifetimeemployment and Toyota facilities – housing, recreation)
• Taiichi Ohno, realized that with this settlement, the work force was not avariable cost but a significant fixed cost.
• Toyota to get the best out of this human talents, had to continuously enhanceworkers skills to gain the benefit of knowledge and experience
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TPS - Timelines
1950’s
• Elimination of waste concept,• Reduction in WIP inventory,• Line stop authority to Workers
1960’s
• Visual controls/4S, Creative suggestion system,• reduction of batch size and change over time,• kanban implementation, production leveling mixed
assembly
1970’s
• Pull system,• Kanban implementation company wide,• Average die change time reduced to < 15 minutes
1980’s
• US study missions to Toyota to see TPS.• After the oil shock of 1975-77, Toyota profit kept rising and
the gap between Toyota and others increased. With thisToyota Production system started drawing attention
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Toyota Production
http://www.vision-lean.com/lean-manufacturing-in-action/heijunka-flexible-production/
1. Heijunka on line (LoadBalancing)e.g. 2 People carriers, 1 twodoor, 1 saloon car, 2 peoplecarriers, 1 two door, 1 salooncar
2. Lightened logisitcs,small trains, setting upflows3. Small Containers, lessstock
4. Line side compression (reduced line spacesincreases value add), concentration on valueadd, reduced muda5. Heijunka flexible multi-product line, betteruse of production resources6. Operators creating value
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TPS – Lean Thinking House
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What is Lean?
An business management approachthat focuses on delivering customer value and
creating wealth,through creating products, improving process and
developing peoplewhile consuming fewest possible resources
* Lean goes beyond just process improvement, hence it is a business managementapproach
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Lean Thinking• Focus is more on output (value/throughput/cycle time
– baton) than the utilization of worker (cost – runner)
• Focus on cost results in local optimization at theexpense of overall system cycle time resulting inwaste/inventory
• WIP waste needs time & money resulting in low ROI
• High WIP affects our ability to respond to changes
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Basics of Lean thinking
Key concepts from
• Queue Management• Variability and Predictability• Theory of constraints• Ensuring smooth FLOW
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Basic Characteristic of Systems
• Every system has a Bottleneck
• Bottleneck is formed when demand for a service exceeds the capacity to serve it,thus resulting in Queues
• Throughput of the system is dependent on the throughput of the bottleneck
• For maximum output, the system should keep the bottleneck working at 100%capacity with little or no defects
• Non bottleneck processes will be working at 100% capacity, so as not to burdenthe bottleneck with large number of batches of WIP
This is typical characteristic of systems – factory, hospital, software, hotel etc.
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Why Queue Management ?• Any process involves activities, handoffs, interaction and waiting time
which results in Queue
• These Queues are not visible. They manifest as cycle time and wastes(inventory)
• Costs increase due to inventory handling, task switching overheads, cost ofdelay, managing and tracking WIP items, etc.
• Knowledge of Queue Management and Psychology of Queues help tounderstand the impact on customer experience
• Managing queues helps in– Better customer experience– Understanding delays– Improve processes, eliminate wastes and reduce costs
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Psychology of Queues• Unoccupied time feels longer than occupied time
– Once customer requirement is known, deliver it ASAP, before they change their mind– Do not record all customer needs upfront. Record only the “next” most important ones
• Pre-process waits feel longer than in-process waits• Anxiety makes wait look longer• Uncertain waits seem longer than known, finite waits
– Be transparent and keep customers updated on the WIP and expected end date for themost important ones to the customer
• The more valuable the service, the longer the customer is willing to wait– Focus on the most valuable work item to keep the customer engaged
• Solo waits feel longer than group waits– Keep the cycle time constant across wait requests. Variability in servicing the requests
will make some happy, but many others unhappy– Reduce variability and improve predictability
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Queuing Theory• Clearing the queue takes longer than making it• Mismatch in rate of arrival & processing, creates queue• Processing time is non linear with arrival rate• Cycle time increases with resource utilization
– E.g. Cycle time may be lowest < 50% utilization, start increasing at > 50% and increases non-linearly before it reaches 100%
The focus on managing queues should be on improving the output, than utilizationof the workers/resources
(hence watch the baton and not the runner)
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Variability and Predictability• The cycle time of processing a work item varies based on multiple
factors, such as• Size of the work items• Arrival rate of work item into the queue• Processing time of the work items
• Containing the variability of the system is important to maintain apredictable output (cadence) and ensure smooth flow
• Steps to reduce variability and improve predictability
• Maintain work item sizes which are small and similar in size• Split larger batches into small and similar size work items• Build in safety buffer before the bottleneck, to absorb the variable inflow, to
ensure 100% usage of the bottleneck
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About Theory of Constraints• Theory of constraints deals with bottlenecks (constraint), cycle time,
batch size and queues• Based on the premise that
“There is atleast one primary constraint (bottleneck) that limits the throughputor performance of the system”
• Constraint may be “physical constraint”, “skills” or “policy”• To improve the process
‘Focus on reducing/eliminating the primary constraint till it is no more a primaryconstraint. Then find the next primary constraint and repeat the process.”
• Improving performance of the non-primary constraint does not improvethe overall system performance.
The chain is no stronger than its weakest link
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Ensuring Smooth FLOW
Lean implementation is about ensuring FLOW
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Ensuring Smooth FLOW• Eliminate queue in between process steps
• Use automation tools, cross skilled team instead of specialists, reducebatch size
• Eliminate multi tasking• Avoid working on multiple work items simultaneously
• Reduce variability and improve predictability• Reduce batch sizes and equal/similar sized batches• Average cycle time improves when batch sizes are small and of similar
size
• Make hidden queues in the process visible and make thebottlenecks explicit, which then needs to be fixed
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Ensuring Smooth FLOW
• FLOW can be improved by Developing Skills and Challenging them (Continuous Improvement)
• Challenging people leads to engagement which in turns results removing distractions
• However,– Challenging without skill development leads to anxiety– Developing skills without challenge leads to boredom
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Background
Toyota ProductionSystem/ Lean
AgileManufacturingHistory
Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.
How Software is different ?
• Normally built on-time, on budgetand do not fall down
Reasons:• Extreme design details• Design frozen. Contractors have no
flexibility to change specification• When a bridge falls, it is
investigated and failure are studied
• Software never comes on-time,on-budget and always breaksdown
Reasons:• Changing business environment,
does not allow to freeze design• Failures are covered up, ignored
or reasoned out• Same mistakes are repeated over
and over again
Bridge Construction Software Development
Though different, we use same project management methodology(waterfall’ish). Hence the high rate of failure.
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Which Process ?“Ad-hoc” process• Most common process• “Just do it” type, common
process• Not Chaotic, but not consistent• Ideal for spikes, prototypes, POC’s
“Defined” Process• Factory model - One size fits all type• Execution of defined activities• Management by controlling activities
to confirm to plan• Approval for every deliverable before
starting next step• Change not encouraged
Adaptive Processes• Goal based, we know what we want to achieve• But don’t know what steps we will exactly follow to reach there• Customer know something but not everything about what they need• Management by retrospection, learning, adoption, trial and error• Be ready to accept change as both customer and team improve their
product and process knowledge as the project evolves
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Things To Know• Lean – manufacturing developed by Toyota between 1950’s & 80’s• Developed by – Taiichi Ohno @ Toyota• Lean - reason for Toyota’s consistent success in a stagnant industry
• Initial Agile enthusiasts were inspired by lean manufacturing.
• Mary Poppendick (Manufacturing) and her husband Tom Poppendick (softwaredeveloper) mapped Lean principles to Software developments in their books
• Lean Software Development term usually refers to contents of these books• Both Mary & Tom are founding members of Agile Alliance• Lean Software Development contains broad set of Lean Principles applied to
software industry.
You don’t do Agile or Lean. You do both !!!
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Things To Know• Both Lean Software Development and Agile have similar viewpoint
– emphasize on people involvement and value driven processes
• Many Lean manufacturing tools and leadership practices are sillbeing inherited and helping Agile grow
• Lean concepts like treating unfinished work (code, documents) asinventory, reducing cycle time are being adopted into the softwareworld
• Understanding Agile based on Lean helps develop Agile mindset.This helps to continuously improve Agile process and developpeople
Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.
Flow Cracker#7, 3rd Floor, Srishti Building,8th Main, Basaveshwar Nagar,Bangalore - 560079
Email :
[email protected] [email protected]
Cell: +91 984 555 8474
ThankYou
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