by the power of metrics

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By the power of metrics LeanKanban Central Europe 2014 - #LKCE14 Wolfgang Wiedenroth @wwiedenroth

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Page 1: By the power of metrics

By the power of metrics

LeanKanban Central Europe 2014 - #LKCE14 Wolfgang Wiedenroth @wwiedenroth

Page 2: By the power of metrics

Metrics in the Kanban MethodPractices

1.Visualize

2.Limit WIP

3.Manage Flow

4.Make Process Policies Explicit

5.Develop Feedback Loops

6.Improve Collaboratively, Evolve Experimentally (using models/scientific method)

Page 3: By the power of metrics

Metrics in the Kanban Method

Sustainability

Service-Oriented

Survivability

Kanban’s 3 Agendas

Page 4: By the power of metrics

1.Visualize

2.Limit WIP

3.Manage Flow

4.Make Process Policies Explicit

5.Develop Feedback Loops

6.Improve Collaboratively, Evolve Experimentally (using models/scientific method)

Practices

Sustainability

Service-Oriented

Survivability

Kanban’s 3 Agendas

Metrics in the Kanban Method

Page 5: By the power of metrics

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Analyse# Selected# Planning# Planning#Done# Dev# Dev#Done# TesDng# TesDng#Done/Endgame# to#be#released# Released#

Visualize Cumulative Flow Diagram

y = No. of Tickets

y = Time

Work piling up

Departure Rate

Arrival Rate

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Visualize

Release Cycle is getting shorter Daily Deployments

Weekly Deployments

Biweekly Deployments

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Visualize

That’s how Flow looks like

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Visualize That’s the opposite of Flow!

we call it Christmas holidays

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Visualize

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Lead Time Distribution Chart

y = No. of Tickets finished with lead time x

x = Lead Time

Average Lead Time

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MEDIAN"

VisualizeThroughput

x = Calendar Weeks

y = No. of tickets finished in calendar week x

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Visualize

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Visualized metrics let you see things faster

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Visualized metrics let you identify pattern

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Visualized metrics give everyone the same picture

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Visualized metrics are great feedback loops

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Manage Flow

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Manage Flow

Demand

Capability

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Manage Flow

Demand Capability

Flow = Balance Demand against Capability

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Manage Flow

Capability AnalysisDemand Analysis

How much demand do we have?

What are the sources of our

demand?

Do we have seasonal

variance in demand?

What are the risk profiles that are attached to

different types of work?

What skills are required for different types of demand?

What are our current lead times? What is our

delivery rate?

What skills do we have?

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Manage Flow using Weibull

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Manage Flow using Weibull

Weibull with shape parameter k = 1.5

Mode = most common lead time Median = 50% Average 80% of tickets finish in less time 95% of tickets finish in less time 98% of tickets finish in less time

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Manage Flow using Weibull

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Features

Bugs

Expedites

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Manage Flow using Weibull

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Features Q(p;k, λ) = λ( - ln(1 - p))1/k

Number of data points: 143 Shape parameter (k): 1.64Scale parameter (λ): 11.64Average: 10.76

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Manage Flow using Weibull

85% of tickets finish in 13.2 days

95% of tickets finish in 20.9 days

Q(p;k, λ) = 11.64( - ln(1 - p))1/1.64

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Manage Flow using Weibull

Bugs

Number of data points: 8 Shape parameter:Scale parameter: Average: 3.88

not enough data points, but visualisation gives us

an idea of the shape

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Manage Flow using Weibull

Bugs

Number of data points: 8Shape parameter: looks like between 1.25 and 1.50 Scale parameter: Average: 3.88

Page 27: By the power of metrics

Manage Flow using Weibull and Forecasting Cards

k = 0.75

k = 1.25

k = 1.50

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Alexei Zheglov

Manage Flow using Weibull and Forecasting Cards

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98% of tickets finish in 12.4 days

Manage Flow using Weibull and Forecasting Cards

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Manage Flow using Weibull

Service Level Expectations (SLE) we can communicate

85% of all features can be expected in 13 days

Bugs can be expected to be delivered in between 3 (average) and 12 days (98%)

Page 31: By the power of metrics

Manage Project Flow

Average Lead Time

Average WIP

Project Scope

Average Throughput

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WIPLead Time

Throughput =

Manage Project Flow using Little’s Law

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Calculate Project Lead Time

Project Lead Time = No. of Tickets Average Lead Time Average WIP

= 450 1.2 15 = 36 weeks

Manage Project Flow using Little’s Law

Page 34: By the power of metrics

Calculate Project Budget

Average WIP = Average Lead Time No. of Tickets Delivery date in weeks

= 1.2 450 36

= 15 WIP

Manage Project Flow using Little’s Law

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20% 20%60%

Project ScopeEnd Date

2nd le

g

1st leg

3rd leg

Delivery Rate

Manage Project Flow using Little’s Law

Page 36: By the power of metrics

Metrics help you to better understand your

demand and capability

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Metrics help you calculate Service Level Expectations (SLE)

for different work items

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Metrics help you forecast your projects#

without estimating

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Metrics to secure survival

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Sustainability

Service-Oriented

Survivability

Kanban’s 3 Agendas

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Service-Oriented

Product Development

Maintenance

Online Marketing

Access Management

Change Management

Problem Management

Page 42: By the power of metrics

Survivability

What’s the purpose of the services we provide?

What criteria need to be satisfied to call the service fit for this purpose?

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Survivability“Fitness Criteria are metrics that measure things customer value when selecting a service again and again.”

- Delivery Time- Quality- Predictiability- Safety (or conformance to regulatory requirements

David J. Anderson

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SurvivabilityBugs per Week

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SLA Compliance in %

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April May June July

Lead Times

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Ask your customer what they care about!

Make it your core metric#you always measure!

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Metrics supporting changes

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Metrics help us to distinct between good and bad

changes from an objective point of view

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Metrics for improvementsEmotions

Risk

Measuring

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Metrics for improvements

"Sometimes, you just have to roll back with your chair to take a second look from the back and make a good guess how the curve will end up."

- Troy Magennis at LKCE13 reception

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Metrics for improvements

"We do only this until we have enough data to provide better sample."

- Troy Magennis at LKCE13 reception

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Always support change with

measurements!

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Metrics for improvements

WIP limit breach

defect rate customer

satisfaction

employee satisfaction

number of blockers

time spent on “real quick” work

time tickets were blocked

time waiting for external suppliers

rework

time spent on white noise

Page 56: By the power of metrics

Not like that! Keep it simple!

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#Urheber Markus Beyer - Herzlichen Dank!

Joe from Marketing Wanted Y

Took me 30min

Sue from ProductWanted Y

Took me 15min

CEOWanted Y

Took me 6h

Bob from Operations Wanted Y

Took me 60min

Joe from Marketing Wanted Y

Took me 45min

Page 58: By the power of metrics

Regularly check your metrics, whether they have become Chindōgu!

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chindōgu are sometimes described as "unuseless" – that is, they

cannot be regarded as "useless" in an absolute sense, since they do

actually solve a problem; however, in practical terms, they cannot

positively be called "useful".

https://en.wikipedia.org/wiki/Chind%C5%8Dgu

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to check if your service is fit for purpose

Metrics help you

to evaluate your changes

to manage your projects

to manage Flow

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to check if your service is fit for purpose

Collect metrics now

to evaluate your changes

to manage your projects

to manage Flow

Page 62: By the power of metrics

Thank you!Wolfgang Wiedenroth

Mail: [email protected]

Twitter: @wwiedenroth