kanban - an alternative path to agility (agile russia)

[email protected] @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.

PresenterDavid J. Anderson

CEO, Lean Kanban Inc.

Agile DaysMoscow

March 2014Release 1.1

KanbanAn Alternative Path to Agility

mailto:[email protected]


The Meaning of Agile



What Agile Methods Seek to Achieve

Let’s not bore you (yet again) with a slide showing the Agile

Manifesto!

Agile methods ask us to…

Make Progress with imperfect information

Reworking & course correcting as new information arrives is better risk management & faster than

delaying for “perfect” information

Enable a high trust culture

The trust dividend eliminates bureaucracy & encourages

collaborative working & use of tacit knowledge

Treat work-in-progress as if it were a liability rather than an asset

Knowledge work is perishable. Focus on finishing things quickly

before they go stale

Create Feedback Loops & enable a capability to

adapt

With 1st gen Agile methods this was limited to adapting to changing

requirements or scope

Create a craftsmanship work ethic

Encourage high quality, well engineered code that is easily adapted (refactored) as new

information arrives and requires very little rework due to errors



The Kanban Method –an alternative path to

agility!



The Old Model (18th-20th Century)

Managers

Process

Workers

ProcessCoaches

DesignsOr

DefinesImposes

Follow

AssignWorkersTo Tasks

Managers & Workers – 2

different classes

Manager as “dating agent” Model



The New Model (21st Century)

Managers

ProcessWorkers ProcessCoaches

Facilitate

learningControl

&EvolvePolicies

All Knowledge Workers make management

decisions

Pay grade relates, decision making,

risk & authority to override or change process policies



True Management Training

Very few knowledge workers

are given proper management

training.

They don’t know what business they

are in!



What Service Do You Provide?



Scaling Kanban in the Enterprise is about Scaling Effective Management

The Kanban Method is not…

A project management or software development lifecycle process

Nor, does it encourage a process-centric approach to improvement!

It’s a service-oriented approach to management & organization



Kanban Method

Uses large boards to visualize invisible work and virtual signal card systems

Creates an adaptive capability in your organization

Enables adaptability in your business processes to respond successfully to changes in your business environment



Kanban Method



Kanban has two meanings



Kanban’s Generalized Practices

6 Practices Enable Adaptive Capability

Visualize (with a kanban board (看板 ))

Limit Work-in-progress (with kanban (かんばん ))

Manage FlowMake Policies ExplicitImplement Feedback LoopsImprove Collaboratively, Evolve Experimentally(using models & the scientific method)



What is a kanban system?(かんばん )



A Kanban Systems consists of “kanban” (かんばん ) signal cards

in circulation



Using a virtual kanban system



H

FF OM

NK

J

I

Pull

Kanban systems are pull systems

Ideas

D

E

A

I

DevReady

G

5Ongoing

Development Testing

Done3 3

TestReady

5

F

B

CPull

Pull

*

There is capacity here

UATReleaseReady

∞ ∞

Pulling work from development will create

capacity here too –the pull signals move

upstream!

Now we have capacity to replenish our ready

buffer



H

FF FF FF J

I

Pull

Kanban are virtual!

Ideas

D

E

A

I

Engin-eeringReady

G

5Ongoing

Development Testing

Done3 3

TestReady

5

F

B

CPull

PullThese are the virtual kanban

*

These are the virtual kanbanThese are the virtual kanbanThese are the virtual kanban

The board is a visualization of the workflow process, the work-in-progress

and the kanban system

Boards are not required to do Kanban!

The first system used database triggers to signal pull. There was no board!

UATDeploy-

mentReady

∞ ∞



H

FF OM

NK

J

I

Kanban can be physical

Ideas

D

E

A

I

DevReady

G

Development TestingTest

Ready

F B

C

UATReleaseReady

In-progressLegend

Done

Blocked - issue

Blocked - defect

Physical token such as a magnet is a kanban

Colors are used to denote state

Moving done items down below a line is an optional enhancement

seen in some implementations

Override on kanban limit introduces additional

“blocked – issue” kanban



Commitment is deferred

H

EC A

I

D

Commitment point

FF FF FF FPull

Wish to avoid aborting after commitment

IdeasDev

Ready5

Ongoing

Development Testing

Done3 3

TestReady

5

UATReleaseReady

∞ ∞

We are committing to getting started. We are certain we want

to take delivery.

Ideas remain optional and (ideally) unprioritized

G



Discard rates are often high

H

E

C A

I

DF FF F

GH

I

Reject

IdeasDev

Ready5

Ongoing

Development Testing

Done3 3

TestReady

5

UATReleaseReady

∞ ∞

Discarded

The discard rate with Microsoft in 2004 was 48%. ~50% is commonly

observed

Options have value because the future is uncertain

0% discard rate implies there is no uncertainty about the future



Upstream Kanban Prepares OptionsReady

forEngin-eering

F

H

I

Comm-itted

D

4 Ongoing

Development

Done3

JK

12

Testing

Verification3

L

Commitment point

4 -

Requi-rementsAnalysis

2412 -

BizCaseDev

4824 -

Poolof

Ideas

∞

Min & Max limitsinsure sufficientoptions are alwaysavailable

Committed WorkOptions

Discarded

OReject

P Q

$$$ cost of acquiring options



TestReady

FF FF FF F

Replenishment Frequency

H

E

C A

I

G

D

Replenishment

Discarded

I

Pull

IdeasDev

Ready5

Ongoing

Development Testing

Done3 35

UATReleaseReady

∞ ∞

The frequency of system replenishment should reflect

arrival rate of new information and the transaction &

coordination costs of holding a meeting

Frequent replenishment is more agile.

On-demand replenishment is most

agile!



TestReady

FF FF FF F

Delivery Frequency

H

E

C A

I

G

D

Delivery

Discarded

I

Pull

The frequency of delivery should reflect the transaction &

coordination costs of deployment plus costs &

tolerance of customer to take delivery

IdeasDev

Ready5

Ongoing

Development Testing

Done3 35

UATReleaseReady

∞ ∞

UAT and Release buffer sizes can reduce as frequency of delivery

increases

Frequent deployment is more agile.

On-demand deployment is most agile!



TestReady

FF FF FF F

Specific delivery commitment may be deferred even later

H

E

C A

I

G

D

2nd

Commitmentpoint*

Kanban uses

2 Phase Commit

Discarded

I

IdeasDev

Ready5

Ongoing

Development Testing

Done3 35

UATReleaseReady

∞ ∞

We are now committing to a specific release date

*This may happen earlier if circumstances demand it



TestReady

FF FF FF F

Defining Kanban System Lead Time

H

E

C A

I

G

DPull

System Lead Time

Discarded

I

IdeasDev

Ready5

Ongoing

Development Testing

Done3 35

UATReleaseReady

∞ ∞

The clock starts ticking when we accept the customers order, not

when it is placed!

Until then customer orders are merely available options

Kanban system lead time ends when the

item reaches the first ∞

queue



Avg. Lead Time

Avg. Delivery Rate

WIP

Poolof

Ideas

ReadyTo

Deploy

Little’s Law & Cumulative Flow

Delivery Rate(from the kanban system) System Lead Time

WIP=



FF FF FF F

Defining Customer Lead Time

UAT

H

E

C A

I

DevReady

DeliveryReady

G

D

5∞

Pull

Ongoing

Development Testing

Done3 3

TestReady

5 ∞

Customer Lead Time

The clock still starts ticking when we accept the customers

order, not when it is placed!

Abandoned

J

Poolof

Ideas

Done∞

Frequency of batch transfers needs to be calculated and

added to kanban system lead time to calculate customer lead

time

Frequency of batch transfers needs to be calculated and

added to kanban system lead time to calculate customer lead

time



TestReady

Flow Efficiency

FH E

C A

I

GD

GYPB

DEMN

P1

AB

Customer Lead TimeWaiting Waiting WaitingWorking

* Zsolt Fabok, Lean Agile Scotland, Sep 2012, Lean Kanban France, Oct 2012** Hakan Forss, Lean Kanban France, Oct 2013

IdeasDev

Ready5

Ongoing

Development Testing

Done3 35

UATReleaseReady

∞ ∞Flow efficiency measures the

percentage of total lead time is spent actually adding value (or

knowledge) versus waitingFlow efficiency % = Work Time x 100%

Lead TimeFlow efficiencies of 1-5% are commonly reported. *, **

> 40% is good! Multitasking means time spent in working columns is often waiting

time

Working WaitingWorking



Observe Lead Time Distribution as an enabler of a Probabilistic Approach to Management

Lead Time Distribution

0

0.5

1

1.5

2

2.5

3

3.5

Days

CRs

& Bu

gs

SLA expectation of44 days with 85% on-time

Mean of 31 days

SLA expectation of105 days with 98 % on-time

This is multi-modal data!

The work is of two types: Change Requests (new

features); and Production Defects

This is multi-modal data!

The work is of two types: Change Requests (new

features); and Production Defects



Filter Lead Time data by Type of Work (and Class of Service) to get Single Mode Distributions

85% at10 days

Mean5 days

98% at25 days

Chan

ge R

eque

sts

Prod

uctio

n De

fect

s

85% at60 days

Mean 50 days

98% at150 days



Metrics for Kanban Systems

Cumulative flow integrates demand, WIP, approx. avg. lead time and delivery rate capabilities

Lead time histograms show us actual lead time capability

Flow efficiency, value versus failure demand (rework), initial quality, and impact of blocking issues are also useful



Kanban Improves Agility



Kanban Coming to Russia…

Moscow September 24-25

Venue to be announced. Watch…

http://conf.leankanban.com

http://conf.leankanban.ru/


http://conf.leankanban.com/

http://conf.leankanban.ru/


Learn More

http://www.limitedwipsociety.org

http://edu.leankanban.com

@leankanbanu


http://edu.leankanban.com/

http://edu.leankanban.com/


Thank you!



Upcoming Training in Europe

Leading Change & Managing Risk MasterclassesStockholm March 24-28http://djaa.com/kcpm-022014bVienna March 31 – April 4http://www.djaa.com/kcpm-05201401 Berlin May 19-23http://www.djaa.com/kcpm-05201401


http://djaa.com/kcpm-022014b

http://djaa.com/kcpm-022014b

http://www.djaa.com/kcpm-05201401





About

David Anderson is a thought leader in managing effective software teams. He leads a training, consulting, publishing and event planning business dedicated to developing, promoting and implementing sustainable evolutionary…He has 30 years experience in the high technology industry starting with computer games in the early 1980’s. He has led software teams delivering superior productivity and quality using innovative agile methods at large companies such as Sprint and Motorola.David is the pioneer of the Kanban Method an agile and evolutionary approach to change. His latest book, published in June 2012, is, Lessons in Agile Management – On the Road to Kanban.David leads Lean Kanban Inc., a global management training, events & publishing business dedicated to offering high quality, innovative, modern management training for the creative knowledge worker industries of the 21st Century.



Acknowledgements

Hakan Forss of Avega Group in Stockholm has been instrumental in defining the Kanban Kata and evangelizing its importance as part of a Kaizen culture.

Real options & the optimal exercise point as an improvement over “last responsible moment” emerged from discussions with Chris Matts, Olav Maassen and Julian Everett around 2009.

The inherent need for evolutionary capability that enables organizational adaptation was inspired by the work of Dave Snowden.



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kanban - an alternative path to agility (agile russia)

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