agile series - about lean

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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 1

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Page 1: Agile series - About Lean

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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Page 2: Agile series - About Lean

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

Page 3: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

LeanDevelopment

Toward beingSAFe™

Agile Scrum

KanbanXP – ExtremeProgramming

Page 4: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

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/

Page 5: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

LeanDevelopment

Toward beingSAFe™

Agile Scrum

KanbanXP – ExtremeProgramming

Page 6: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

Background

Toyota ProductionSystem/ Lean

AgileManufacturingHistory

Page 7: Agile series - About Lean

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.

Page 8: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

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

Page 9: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

Lean Thinking Vs. TraditionalThinking

• Traditional Thinking– Focus on maximum Utilization of resources

• Lean Thinking– Watch the baton, not the runners

Page 10: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

Background

Toyota ProductionSystem/ Lean

AgileManufacturingHistory

Page 11: Agile series - About Lean

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)

Page 12: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

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

Page 13: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

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

Page 14: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

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

Page 15: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

TPS – Lean Thinking House

Page 16: Agile series - About Lean

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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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Page 17: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

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

Page 18: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

Basics of Lean thinking

Key concepts from

• Queue Management• Variability and Predictability• Theory of constraints• Ensuring smooth FLOW

Page 19: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

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.

Page 20: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

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

Page 21: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

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

Page 22: Agile series - About Lean

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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)

Page 23: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

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

Page 24: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

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

Page 25: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

Ensuring Smooth FLOW

Lean implementation is about ensuring FLOW

Page 26: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

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

Page 27: Agile series - About Lean

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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

Page 28: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

Background

Toyota ProductionSystem/ Lean

AgileManufacturingHistory

Page 29: Agile series - About Lean

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.

Page 30: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

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

Page 31: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

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 !!!

Page 32: Agile series - About Lean

Copyright © Flow Cracker 2014. All other trademarks held by their respective owners.

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

Page 33: Agile series - About Lean

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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