a lean production project in software development at almaviva - lean it summit 2014
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C o m p a n y P r o f i l e
P r o v i d i n g S o l u t i o n s
Information & Communication Technology Group
Our mission
To develop solutions capable of upgrading the operating systems and processes of
government entities and private businesses, to help them improve the services they
offer and meet the needs of a continuously evolving market
President: Alberto Tripi
CEO: Marco Tripi
About us AlmavivA Group is Italy's number one Information & Communication Technology
provider, with a longstanding experience and in-depth knowledge and understanding
of the public and private sector markets we specialize in. Operating as a global
organization, AlmavivA Group has 38 offices in Italy, 16 abroad and employs 32.500
people, also in Brazil, Tunisia and China.
The Group offering includes ICT services and solutions based on Cloud Computing
and the Outsourcing of CRM services, using cutting-edge technologies capable of
ensuring excellence in CRM 3.0 and Big Data & Advanced Analytics solutions for the
management and enhancement of information.
The research and testing of new technologies with our international partners is at the
core of AlmavivA's success.
Information & Communication Technology Group
38 offices
14 offices
in Italy
in Brazil
in Tunisia
in China
1 office
1 office
Where we are
Information & Communication Technology Group
1 office in U.S.A.
Our Companies
Almawave and Almawave do Brasil
govern the technologies underlying the
current drivers of change: mobile,
social, cloud and big data. The two
companies develop technological
solutions for the real-time analysis and
understanding of large volumes of
destructured and highly volatile data of
various kinds, coming from a range of
sources, for the strategic and
operational valorization of information
captured by businesses and from
customer relations, offering a unique
model of «shared Intelligence».
MARKETS
Government, Banks & Insurance,
Media, Transportation & Logistics,
Finance, Tlc.
HR 2013: 166 (*)
REVENUE 2013: 14 MLN € (**)
AlmavivA Contact is a market leader in
Italy, catering to private organizations
and public entities for the outsourced
delivery of CRM services, using
innovative technologies capable of
ensuring excellence in CRM 3.0.
AlmavivA Contact, AlmavivA do Brasil,
AlmavivA Tunisie and Lit manage
inbound and outbound Customer Care
services to support clients in developing
a successful Customer Experience
strategy, based on Almawave cutting-
edge semantic technologies for
recognizing natural language.
MARKETS
Banks & Insurance, Media,
Government, Tlc, Transportation &
Logistics.
HR 2012: 28.661 (*)
REVENUE 2012: 371 MLN € (**)
A longstanding partner to the main central
government agencies, AlmavivA supports
the country's key digitization and
technological Innovation projects and
processes. AlmavivA upgrades and
integrates complex systems with
emerging technologies, through software
development services and processes of
excellence and cloud computing.
AlmavivA also provides an impressive all-
round offering of IT services, based on
certified infrastructures and unique
competences, which enable the company
to ensure service continuity, privacy and
data security.
MARKETS
Agriculture, Banks & Insurance,
Homeland Security & Protection,
Government, Tlc, Transportation &
Logistics, Utilities.
HR 2013: 3.119 (*)
REVENUE 2013: 329 MLN € (**)
Information & Communication Technology Group
(*) Figures at 31 December 2013
(**) Company revenue calculated gross of intercompany transactions
Competence Centers
CRM
Project Management
Information Discovery & Advanced
Analytics
Service Oriented Architecture
Java, Microsoft.NET, Opensource
Information Security
Portal Development e WEB 2.0
Document & Data Management
Monetica & Payments
Mobile Solutions
Energy Management
Command & Control Integrated
Systems
Surveillance Integrated Systems
IT Biometrics Solutions
SAP
CE
RT
IFIC
AT
ION
S
CO
MP
ET
EN
CE
CE
NT
ER
S
Information & Communication Technology Group
Our strong points
Certifications
EN UNI 15838
ISO 9001
ISO 27001
ISO 20000
ISO 14001
AQAP 2110/AQAP 160
CMMI ML3
Information & Communication Technology Group
Offering guidelines
ICT Services
Cloud computing
CRM 3.0
Big Data &
Advanced Analytics
Markets
Software development - ICT outsourcing -
Application and Infrastructure management - Service assurance
Hosting on cloud - Application Services on cloud - Security -
Virtualization & Consolidation - IT Infrastructure
Consulting and process reengineering -
Inbound and Outbound Services -
Back Office & Document Management - Market Analysis -
Adaptive Front/end - Multichannel Customer Solutions -
Case Management & Quality Monitoring
Business Data Management - Enterprise Knowledge Solutions -
Semantic Solutions & Speech Recognition -
Business Intelligence 2.0 - Data Science - Predictive Analytics
Homeland Security
& Protection
Banks
& Insurance
Transportation
& Logistics Telco, Energy
& Services Healthcare
Central
Gov
Local
Gov Agriculture
Lean Production Project
P r o v i d i n g S o l u t i o n s
Information & Communication Technology Group
OPERATIONS
INFRASTRUCTURE AND
APPLICATION SERVICES
SW Engineering
SW Development Model
Information & Communication Technology Group
OPERATIONS INFRASTRUCTURE AND APPLICATION SERVICES
Transportation Global
Outsourcing
Market Global Outsourcing
Managed Operations
Software Engineering
Application Maintenance
Services
Functional Competence Centers
Company IT Systems Management (HRM, PayRoll, Financial & Accounting Management, ..)
INFRASTRUCTURE SERVICES APPLICATION SERVICES
Technical bid management
S e
c u
r i
t y
P r
a c
t i
c e
Central & Local Government, Financial Services, Telco, Utilities, Manufactoring, Retail, Transportation
BUSINESS UNITS
I n n
o v
a t
i o
n
OPERATIONS INFRASTRUCTURE AND APPLICATION SERVICES
Information & Communication Technology Group
SW ENGINEERING (*)
(*) more than SIX hundred people
SW Engineering - Development Model
Information & Communication Technology Group
MISSION
Knowledge
Development &
Transfer
Innovation
Prototyping
Building Blocks
CMMI
(Lev.3)
MISSION
OPTIMIZE:
Quality
Time to Market
Cost
10
Technical Competence Center
competence center 1
competence center ..
competence center n
Solution Competence Center
competence center 1
competence center ..
competence center n
STAFFING
SOFTWARE DEVELOPMENT & TEST LAB
SW DEVELOPMENT & MANAGEMENT TOOLS
Work Packages Development
Test Lab
Delivery
Management
KPI
INFRASTRUCTURE AND
APPLICATION SERVICES
SW Engineering
Lean Production Project
Information & Communication Technology Group
12
BUSINESS DRIVERS
The Market Value of SW Development is rapidly decreasing
Quality Level and Time to Market are crucial for Customer Loyalty and for Company’s market share and Company’s reputation
Labour cost is a constraint, to maintain profitability we should increase productivity
OPERATIONAL TARGETS
Customer Satisfaction
Increased quality
Compliance with the plan baseline
Increased productivity
Lean Production Project: Business Drivers and Goals
Information & Communication Technology Group
Lean Production Project: Actions, Context, Roadmap
13
Actions Adopt Lean Production in order to increase SW quality and customer
satisfaction (external goals) and to reduce waste and losses (internal goals)
Context Operations – Application Services SW Development
Information & Communication Technology Group
14
The Almaviva Lean Production Project is very ambitious because of the complexity and the extent of the adoption field.
The project approach is based on the paradigm “Train the Trainer”: the focus is on people coaching – both operational teams and internal lean staff
Lean Production Project: Adoption Strategy
Phase 1 3 IT projects
10 people
8 weeks
Phase 0 Assessment
3 weeks
Kick off Project Review Workshop
Go/NoGo Go/NoGo
Phase 2 Large Adoption
100 people – 40.000 FP
FY14 2Q 3Q 4Q
Information & Communication Technology Group
15
Context: 3 projects – about 1,000 FP(*)
Lean Production Project: Assessment Step
(*) A Function Point is a unit of measurement to express the amount of business functionality an information system provides to a user. Function points measure software size.
Assessment Step has allowed to: Highlight the specific context of application and technology Identify the categories of problems and issues Define the KPIs Detect the level of customer satisfaction (Voice of Customer) Implement the first field observations Start training the first two internal lean experts
Phase 1 3 IT projects
10 people
8 weeks
Phase 0 Assessment
3 weeks
Kick off
Project Review Workshop
Phase 2 Large Adoption
100 people – 40.000 FP
FY14 2Q 3Q 4Q
September 2013
Information & Communication Technology Group
16
Lean Production Project: Assessment Step
Main findings:
Performance levels and targets not known by the teams and team leaders
Projects managed based on estimated completion percentages that are very distant from reality
Very large number of obstacles faced by developers and analysts in their day to day work
Information & Communication Technology Group
Effort
Necessary No Value
Added Activity
WASTE TIME
Development TIME
BUGS FIXING TIME
17
Planning Measurement Reporting HRM …
Broken production flow Transmission of defects from one stage to the next Downtime due to the unavailability/inadequacy of
work tools and equipment Lack of technical skills related to this specific work
environment …
Errors caught in user acceptance testing
Bugs found in production
Lean Production Project: Assessment Step Improvement Targets
ADDED VALUE TIME
12% Information & Communication Technology Group
Effort
Development TIME
18
Optimize necessary activities
Reduce Waste
Increase the net value share of development time
Lean Production Project: Assessment Step Improvement Targets
ADDED VALUE TIME
Information & Communication Technology Group
Necessary No Value
Added Activity
Reduce Bugs & Defects
BUGS FIXING TIME
WASTE TIME
19
Project People FP
Project 1 6 480
Project 2 2 140
Project 3 3 310
TOTALE 11 930
ACTIVITIES
Using Visual Management for Problem Management and Problem Solving
Defining and implementing metrics for measuring and monitoring the Value Stream
Identifying: • improvement areas, • efficiency enhancement actions • optimization of production processes
Team leaders and team workers coaching
Lean Production Project: Phase 1 - 3 IT Projects
Phase 1 3 IT projects
10 people
8 weeks
Phase 0 Assessment
3 weeks
Kick off
Project Review Workshop
Phase 2 Large Adoption
100 people – 40.000 FP
FY14 2Q 3Q 4Q
December 2013
Information & Communication Technology Group
20
Lean Production Project: Phase 1 - 3 IT Projects
1. Clarify the operational challenge
Setup internal weekly
releases
Adjust production plans
4-6 month project
Weekly releases Make team daily goals clear
Create a visual environment to reveal problems
Daily meetings Daily goals
Problem solving (PDCA)
Information & Communication Technology Group
21
Lean Production Project: Phase 1 - 3 IT Projects
2. Solve information transfer problems
Make problems visible
(« red » bins)
Study concrete examples
Specification transfer sessions
with checklist
Entire days lost by developers searching for missing information in specifications
Information & Communication Technology Group
22
Lean Production Project: Phase 1 - 3 IT Projects
3. Solve development problems
Standards / on the job training for frequent
technical tasks
Lack of knowledge of the specific technical environment
by the developers
Very slow change/compile/test
cycle time
Application server
Business logic
DB Access
EJB
Application server
EJB Business logic
DB access
Need to restart the application Server after each code change (3 min)
The business logic can be tested in a few seconds
Information & Communication Technology Group
23
Lean Production Project: Phase 1 - 3 IT Projects
4. Involve management
Sponsor interventions and Gemba visits in order to clarify the challenge and create a trust relationship with and within the team:
Focusing on enterprise business drivers and understanding together the team challenge
Paying attention to team issues: Supporting lack of competencies with specific training Regulating knowledge transfer from seniors to juniors with the
«question time» Finding better team mix Observing and understanding real workloads
Paying attention to workplace and tools: Finding ways to speed up developer workstations Fixing severe air conditioning problems to improve working
environment Co-locating teams to improve teamwork
Information & Communication Technology Group
INDIRECT OUTCOMES (SIDE BENEFITS) The 3 Project Teams have increased awareness of the overall application
architectures The 3 Project Teams highlighted to Systems and Network Administrators
the opportunity of improving the performance by different configuration choices for DBMS, middleware and network resources
Project FP/g/p Start
FP/g/p TARGET
FP/g/p AT THE END OF PHASE 1
Project 1 0,5 3
Project 2 1,8 3
Project 3 1,6 3
24
Lean Production Project: Phase 1 - OUTCOMES
1
+ 100% That’s OK but not yet Goal
3,2 + 78% Goal !
3 + 88% Goal !
DIRECT BENEFITS
Information & Communication Technology Group
The evidences and the outcomes of Pilot Phase and Phase 1 were discussed with Top Management in Project Review Meeting.
On the basis of these results, the Board decided to continue with Phase 2 of Lean Production Project, involving about 100 employees in the rest of FY2014 , for a total estimated production of approximately 40,000 Function Points.
Lean Production Project: Adoption Strategy Phase 2 - Scenario FY 2014
Phase 1 3 IT projects
10 people
8 weeks
Phase 0 Assessment
3 weeks
Kick off
Project Review Workshop
Go/NoGo Go/NoGo
Phase 2 Large Adoption
100 people – 40.000 FP
FY14 2Q 3Q 4Q
Information & Communication Technology Group
25
Information & Communication Technology Group
26
CONFIDENTIAL
Lean Production Project: Adoption Strategy Phase 2 – Project Goals
Reduce waste time
Reduce errors and defects
Reduce time to market
Increase Value Added Time, i.e. more Function Points delivered per working time unit (man/day)
Decrease FP unit cost Reduce total number of workers for a
given amount of FP Increase Customer Satisfaction
1,8 FP/man/day to 3 FP/man/day
Reduce unit FP cost by 30%
Free approximately 20 FTE that can be used to develop new projects or to replace external resources
Win the tender for the new contract
27
Lean Production Project: Phase 2 – Large adoption
Deploy at the SW factory level
Deploy the new production approach
Factory-level performance management
Problem solving for factory manager and
all team leaders
Weekly reviews and problem solving coaching by the factory manager and all team leaders
Weekly internal releases
Visual management Problem solving
+
Information & Communication Technology Group
Information & Communication Technology Group
28 CONFIDENTIAL
Lean Production Project: Adoption Strategy Phase 2 – August 2014: Results
SW Factory productivity
FY 2013
FY 2014 (Lean)
22 workers left the project due to the increase of productivity
Lean Production Project: Adoption Strategy Phase 2 – August 2014: Results
They were all reallocated to other projects or services
No «Victims», No «Collateral Damages»
TRUST & ENDORSEMENT
Information & Communication Technology Group
30
CONFIDENTIAL
Lean Production Project: Adoption Strategy Phase 2 – August 2014: Actuals
… and last but not least:
We won the tender for the new 2 year contract
31
AlmavivA Lean Production Project was born from clear, compelling and widely shared Business Drivers.
It is not an "ideological" project, because it is based on a heuristic approach:
A first phase of evaluation of the specific needs in the context of our SW Application Lifecycle
A subsequent pilot phase, which enabled us to better understand operational objectives and specific measures of our reality
An experimental phase of full implementation of the Lean approach in three heterogeneous SW development projects
Each of these phases was concluded with a discussion of the project outcomes with corporate stakeholders and decision-making, and with an assessment step on the opportunities and usefulness of continuing the project.
Lean Production Project: Lesson Learned (1/2)
Information & Communication Technology Group
32
The evidence of the steps carried out so far are very encouraging, both in terms of improvement results achieved, and in terms of motivation of the operational teams involved in the project.
The challenge that the project involves is hard, because it requires a change of culture and vision which covers all company roles involved in the production process.
The commitment of the Company Top Management is not important, it is crucial. Without the conviction and determination of the management and corporate stakeholders, the project would have had no chance of success.
Last but not least: this is not a "one shot" initiative, it is a journey of continuous improvement, and search for production process quality targets increasingly challenging.
Lean Production Project: Lesson Learned (2/2)
Information & Communication Technology Group
www.almaviva.it
Via di Casal Boccone, 188 – 190
00137 Roma
Italia
Information & Communication Technology Group
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