lean kanban university presentatie tri ict hartman & stroo
DESCRIPTION
Two Lean IT cases, combining Lean Six Sigma and ITIL processesTRANSCRIPT
ITIL gives the factory a name
Lean shows the hidden
factory
Ard-Jan Hartman &
Marcel Stroo
Tri ICT, The Netherlands 26-10-2012
IT Operational Excellence
Serving Clients Better
About us
2
Ard-Jan Hartman Marcel Stroo
Intro
IT Operational Excellence
Serving Clients Better
Agenda
Introduction: Lean IT in Operations & Support
Case 1 IT service desk at logistics company
Case 2 IT department in high tech company
Conclusions & Q&A
3
Intro
IT Operational Excellence
Serving Clients Better
Lean (Six Sigma) in IT operations
Development <-> IT Operations; Agile, Scrum <-> ITIL
It starts with Development, IT operations always the next step
– Development: Waterfall -> Agile/Scrum
– IT Operations: ITIL -> Lean IT operations
4
Intro
IT Operational Excellence
Serving Clients Better
ITIL & Lean Six Sigma
ITIL: process blueprint & basic implementation
Lean Six Sigma : improve existing processes
Happy flow versus real life flow
– Lean dives deeper
– Hidden factory
ITIL® v3: Lean Six Sigma elements incorporated
– Value
– End2end IT Service lifecycle
– Continual Service Improvement
5
Intro
No
IT Operational Excellence
Serving Clients Better
Opinion Poll 1
Our good improvement ideas end up in the meeting minutes, and stay
there!
– Yes
– No
6
Intro
IT Operational Excellence
Serving Clients Better
Case 1: IT servicedesk at a logistical company
Improving incident management & configuration management
– Focus on incident management
Situation
– IT servicedesk at Dutch logistics company
– Two managers Green Belt trained, Lean Six Sigma used in company, but hardly
in IT
– Willingness to change: overall good
• No threats to jobs, Lean is no taboo
Challenge
– Performance below target:
• Customer satisfaction too low
• Resolution time below target:
– Recent increase in external FTE’s had to be reduced with 1 FTE by working
more efficiently
7
Case 1
IT Operational Excellence
Serving Clients Better
General approach
Awareness & skills:
– Workshop Lean Six Sigma for key staff (project members)
– Kick off: why are we doing this?
– Brainstorm with team: why could this project fail? How to tackle this?
Communication
– Existing communication channels
Quick wins, weekly
– Spirit of continual improvement
– Day starts & week starts
DMAIC project cycle, several months
– Selection of Lean Six Sigma tools used
– Weekly workshops
8
Case 1
IT Operational Excellence
Serving Clients Better
Lean & Six Sigma Tools used
9
Tool Value
Project Charter Keeps you on the main tracks
Basic statistics: mean&median,
standard deviation, distribution,
histogram, control charts, Pareto chart
• Spot special problem causes
• Performance tracking
Value Stream Map • Better understanding between staff
• Pinpointing problems
Brainstorm selection method N/3 Simple way of choosing most
important problems & most valuable
solutions
Belbin team roles Get a good mix of people in your team
and brainstorm sessions
SIPOC Always the basis for setting process
scope
5S Simple to start with, quick results, gets
the spinning wheel of continual
improvement running
Case 1
IT Operational Excellence
Serving Clients Better
Pareto customer dissatisfaction
10
Case 1
IT Operational Excellence
Serving Clients Better
VSM
Part of the VSM
Problems highlighted using colours
11
Case 1
IT Operational Excellence
Serving Clients Better
Some examples of improvements
Part of 3rd line (in shifts) in same room as 1st & 2nd line
Skip slow non-value-add step in registration tool
Central & daily management of 2nd line incident pool
Reducing number of Knowledge Base codes
Stricter quality coaching on ticket registration (never pass a defect)
Short consultation with 2nd line before dispatching incident
Awareness of how your work impacts colleagues and process end result
12
Case 1
IT Operational Excellence
Serving Clients Better
Measuring & sustaining results
Measurements in progress
1st results promising
– Customer satisfaction on target
– More incidents within resolution time target
Week & Day starts part of normal work
Working on complex improvements: burning platform needed
13
Case 1
IT Operational Excellence
Serving Clients Better
Opinion Poll 2
My IT processes performance are data driven
– >70%
– +/- 50%
– < 30%
14
Poll
IT Operational Excellence
Serving Clients Better
Aligned with your customer?
15
Intermezzo
QUALITY
“Let’s work smarter, not harder”
“LEAN is… a mindset, or way of thinking, with a
commitment to achieve a totally waste-free operation
that’s focused on your customer’s success….It is
achieved by simplifying and continuously improving all
processes and relationships in an environment of trust,
respect and full employee involvement….It is about
people, simplicity, flow, visibility, partnerships and true
value as perceived by the customer.”
Case 2
IT Operational Excellence
Serving Clients Better
Problem Description:
Processes are incorrectly embedded in the Clients IT organization Low customer and employee satisfactory IT management not in control of the process Cost-to-Serve No improvement culture among IT employees.
Problem Scope:
The incident- and problem management processes within Clients Global IT, including 1st & 2nd (outsourced) and 3rd line support.
Project Goals:
Insight into process performance (KPI’s) and influencing factors Identifying & implementing improvements
17
PROJECT SCOPE & GOALS Case 2
IT Operational Excellence
Serving Clients Better OPERATIONAL EXCELLENCE ROADMAP Incident- and problem management
Fact:
Term ‘LEAN’ not used due
to negative associates
with FTE reduction
Case 2
IT Operational Excellence
Serving Clients Better
• IT strategy analysis
• Project charter
• Customer Voice Chart
• SIPOC
LEAN tooling Scan step
Workshops
Interviews
Data
analysis
Improvement plan Improvement opportunity's
Critical to Customer analysis
Critical to Quality analysis
Return on Investment analysis
1
2
3
4
Other tooling
Management
intake
• Voice of the Customer / IT
• Critical to Quality
• Critical to Customer
• KANO analysis
Determining
customer needs
• Value Stream Mapping
• Data analysis
• GEMBA walk
• FMEA
Process mapping
• TIM WOODS
• 5S method
• Spaghetti diagram
• Ishikawa diagram
• Poka Yoke
Improvement
analysis
• Employee/ Customer
satisfactory models
OBASHI methodology • Ownership
• Business Layer
• Application Layer
• System Layer
• Hardware Layer
• Infrastructure Layer
• NOREA
• SOX
• SSAE16
OPERATIONAL EXCELLENCE SCAN Quick Scan (pre-DMAIC)
Case 2
IT Operational Excellence
Serving Clients Better
“I hear and I forget.
I see and I remember.
I do and I understand."
WORKSHOP APPROACH Do! Do! Do!
Case 2
IT Operational Excellence
Serving Clients Better
PEOPLE PROCESS PRODUCT
Low level of IT landscape
knowledge on 1st and 2nd line
support.
Requesting ‘new server’
process takes a long time.
Active Internet Explorer browser
version not up-to-date to
nowadays web standards.
Only the 3rd line engineers
understand my problems.
Releases are always running
out of time due to test defects.
Cannot send emails via Outlook
with > 7 MB attachment.
IT should be more consulting in
latest product releases.
Who do I contact in case of
escalations.
Compatibility with different
Office versions (.doc, .docx)
IT engineers are fire fighters, and
not improvers.
Incidents are hardly resolved
within SLA time.
What products can I get from
IT? Products do not always
match Business processes.
IT engineers are always willing to
help!
There is no pro-active or re-
active problem management,
to prevent.
Where can I find the latest
work instruction, product
plans or other documents?
IT engineers find it hard to translate
IT solutions into ‘Business
language’.
Incidents cannot be resolved at
1st or 2nd line support due to
access rights.
No pro-active monitoring on
Services / network.
Slow IT development causes
delay on Business projects
Slow network connection at
Client office.
Many Access databases build
by Business, no IT support.
VOICE OF THE BUSINESS Example VOB’s that are Critical to Business
Case 2
IT Operational Excellence
Serving Clients Better
1. Sorting (Seiri)
2. Straightening or setting in order (Seiton)
3. Sweeping or shining or cleanliness / systematic cleaning (Seiso)
4. Standardizing (Seiketsu)
5. Sustaining the discipline or self-discipline (Shitsuke) In
cid
en
ts
PRODUCT IMPROVEMENT 5 S KAIZEN SESSIONS WITH IT & BUSINESS
BUCA: “Difficult to find the right
documentation on network shares”
Case 2
IT Operational Excellence
Serving Clients Better
1. Sorting
2. Straightening
3. Sweeping
4. Standardizing
5. Sustaining
• Complex search structure
• No version management
• Complex and manual user access
management
• Who’s responsible for the
content?
• Search documents by sector
• Only latest version online
• Offline and online documents
• Easy user management
• Document ownership
Old: Network drive mapping
New: SharePoint intranet
Reduction > 35 % of files!
=
Less storage costs & effective search (< 10 sec.)
PRODUCT IMPROVEMENT 5 S KAIZEN SESSIONS WITH IT & BUSINESS
Case 2
IT Operational Excellence
Serving Clients Better PRODUCT IMPROVEMENT REDUCING COMPLEX IT ENVIRONMENT
* BUCA: “Too many systems and applications. IT needs to be functionality driven
instead of technology. Standardize the IT environment”
What the customer
wants
What the customer
gets now from IT
What the customer
should get
Solution / Win
“I need this new tool I
found online to
administrate my business
projects”
“Okay, we will install
this as soon as
possible”
“Dear customer, in order to
administrate your business
projects we provide
Microsoft Project as
standard”
The customer can
choose from a
functionality Service
catalogue
“I want to install Firefox on
my desktop, because I
also use this at home”
“Okay, we will install
this as soon as
possible”
(Fingers crossed..)
“Dear customer, we use
internet Explorer 8 as
standard browser. This has
been tested according on
our (security) standards.”
Easier testing
process, rapid
deployments, less
defects.
“I need to have a new
server, next week!”
“Okay (panic), we will
get you one. (again
fingers crossed, Hmm
what are the specs???)
“Dear customer, we can
deliver a new virtual server
within 3 days, if you
delivery the required specs
on time.”
Standard Windows
server environments,
easy to deploy, easy
to maintain.
Case 2
IT Operational Excellence
Serving Clients Better
1st line
support
2nd line
support
3rd line
support
Client
Business
39 21 3 34 65 7
Team
Lead
X Incidents
X Problems
X Changes
“Hidden factory” “Hidden factory”
“Hidden factory” “Hidden factory”
PEOPLE/ PROCESS IMPROVEMENT Re-design incident- and problem
management process
Engineers with nr. of tickets
* BUCA: “No proper process coördination within 3rd line
support”
Case 2
IT Operational Excellence
Serving Clients Better
Incident Management process Other processes
Team
Lead
Process
Manager
3rd line Support
1st line support
2nd line support
Client
Business
Process
Manager
Service
managers
• First Time Right solution! • One Touch • No Defects! • Faster resolution times • Strong customer focus Flexible
FTE’s
PEOPLE/ PROCESS IMPROVEMENT Re-design incident- and problem
management process
Case 2
IT Operational Excellence
Serving Clients Better
Process ‘war rooms’ with combined knowledge from all
3rd line teams to solve incidents, problems and
Changes First Time Right, and in One Touch! But
also to Continuously Improve the process.
PEOPLE/ PROCESS IMPROVEMENT Re-design incident- and problem
management process
Case 2
IT Operational Excellence
Serving Clients Better
Determine process Baselines
Set-up simple Process and Team (K)PI’s
Create simple and visual measure methods
MEASURE & CONTROL Case 2
IT Operational Excellence
Serving Clients Better
Customer
satisfactory
Cost-to-
Serve
Proces
Quality level
MT
level
Team Level
Customer
satisfactory Proces
Quality Level
Prevent
%
% One
Touch
% First Time
Right
% Online
KPI’s
=
Control &
Pay off
PI’s
=
Control
Cost-to-Serve
% Pro-
active
monitoring
Average
Handeling
Time Employee
Level > Service
level
# Bounced
Defects
Employee
satisfactory
Employee
satisfactory
# Improvements # Customer
complaints
# Bounced
Defects
2012 QUALITY KPI GOALS Incident management
Case 2
IT Operational Excellence
Serving Clients Better
KPI Start project Start
QUALITY
Continuous Improvement
Nov. ‘11 Jan. ‘12 May ‘12 Sept. ‘12 Dec. ‘12
Employee satisfactory 5 5,5 6.5 7 7.5
Customer satisfactory 6 - 6 6.5 7 7.5
Cost-to-Serve x - 5% -10% -15% - 20%
Proces Quality level (Max. 400 pnt) x
(120 pnt)
30% (230 pnt)
57% (265 pnt)
66%
(316 pnt)
75% First Time Right x 40 % 70 % 80 % 90 %
Mean Time to Repair x - 10% - 20% - 25% - 30%
(Administrative) Defects x - 10% - 70% - 80% - 90%
Within Service level x 60% 70% 80% 90%
2012 QUALITY KPI GOALS Case 2
100 % score
on all KPI goals! Vision
IT Operational Excellence
Serving Clients Better
31
CONTINUOUS IMPROVEMENT
Time
Voice of the
Business
Pain
Pleasure
0
+
++
+++
-
Start QUALITY
program Nov. ‘11
QUALITY program
Feb. ‘12
QUALITY program
Dec. ‘12
Case 2
Making the
waste visual..
IT Operational Excellence
Serving Clients Better
QUALITY
“This is only just the beginning…..”
Case 2
IT Operational Excellence
Serving Clients Better
Opinion Poll 3
My organisation has a positive attitude to change
– Yes
– No
33
Poll
IT Operational Excellence
Serving Clients Better
Lessons learned (1)
Don’t use standard ‘Lean IT’ approach, starting position differs per situation,
even per team
Lean tools & methods well suited for IT Operations
– But think about which to use
Improving with Lean is a next step after improving with ITIL
– ITIL still helpful (necessary) if process standardisation is low
Only use data if available and sufficiently reliable;
– but quite often ‘expert estimates’ are a good basis. A mix of different types of
experts should make the estimation together
34
Conclusion
IT Operational Excellence
Serving Clients Better
Lessons learned (2)
Improvement project needs ‘burning platform’ / sense of urgency
Small improvements easier to incorporate in daily work
Project planning: improving takes most time
Two cases, different approaches
– Whatever suits the environment
– Clear customer results
35
Conclusion
IT Operational Excellence
Serving Clients Better
Opinion Poll 4
My business & IT processes are adequately aligned
– Yes
– No
36
Poll
Contact Tri ICT:
www.triict.nl
@triict