Value Stream Mapping Using Lean and Agile to Improve

Processses

Angel Medinilla

angel.medinilla@proyectalis.com www.proyectalis.com/en/AngelMedinilla

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How long, you said?

“All we are doing is looking at the timeline, from where the customer gives us an order to where we collect the cash. And we are reducing the time line by reducing the non-value adding wastes.

- Taiichi Ohno

Lean Principles

•Maximize customer value •Optimize the Value Stream •Continuous Flow •Pull Production •Improve everything

What’s value?•Project - Product - Problem •Customer centricity

Exercise•In groups of three people that don’t know each other, introduce yourselves, then tell what project you are working on, what product or service your provide, what’s the problem you are solving and for whom

•Extra points if you can do that for your company and for you as a professional / individual: what team are you part of? What service do you provide? What problem do you solve?

What’s Waste?•In short: mostly everything is waste •Muda: Not needed / not value adding •Mura: Unevenness, irregular, unbalanced •Muri: Overburden / irrational

Can you give some examples?

How does Waste manifests?•Wrong products •Long time to market / Delays •High costs •Low quality •Frustration and stress

Waste• Unwanted features / overprocessing • Wrong priorities • Repeated work • Loops • Bugs (before production) • Bugs (in production) • Overload • Unskilled people • Underutilized people • Context Switching / parallelizing • Too much work in progress / excesive

workload • Non-automated work • Inadequate technology • Waiting for resources / information /

knowledge • Bureacracy / Compliance overkill • Excessive inspection / audit

Exercise: Waste Poker (30 minutes)• Unwanted features / overprocessing • Wrong priorities • Repeated work • Loops • Bugs (before production) • Bugs (in production) • Overload • Unskilled people • Underutilized people • Context Switching / parallelizing • Too much work in progress / excesive

workload • Non-automated work • Inadequate technology • Waiting for resources / information /

knowledge • Bureacracy / Compliance overkill • Excessive inspection / audit

Rate, Cause, Solution.

What are (some) causes of waste?• Dependencies • Over specialization • Suboptimization • Lack of empowerment / Trust • Lack of support / development • Wrong / no strategy • No learning • Wrong strategy implementation • Politics • Fear / lack of emotional intelligence • Rewarding wrong behaviors • Noise / interruptions • Handoffs / Touchpoints • Batch size

Value Stream•Concept to cash •Request / deliverable •System wide

UML (Universal Modelling Language)

Notation

Non-Value adding time

Value adding time

Lead TimeFlow Efficiency = VAT / LT

QueueProcess

Customer Order

Customer Delivery

Exercise: 30 minutes• Client calls requesting a feature. PO schedules meeting within 1 or 2 weeks

(call time: 20 minutes) • Meeting takes place (2 hours). PO writes brief. • PO meets team within next week. Gets initial quotation (2 hours) • PO schedules meeting with client within 1-2 weeks • Meeting takes place. Client accepts (1 hour). PO schedules meeting of client

and team for requirements refinement (20 min call). • Meeting takes place in 2 weeks. Refinement takes 4 hours. • During the next 2 weeks, team will work in a final proposal (8 hours). • When the proposal is done, PO will schedule a meeting with the client (1

weeks). Final proposal will be presented and accepted in this 2 hour meeting.

• PO will tell team to start development. Team will introduce it in the next Sprint (starts in 1 week). They will dedicate 25% of their capacity during 4 2-week sprints to do it.

• Client will come to final demo (2 hours). Refinements and modifications will be discovered. Team will dedicate 25% of their next sprint to them.

• Client will come to SP5’s demo (2 hours). Accepts. • Team asks infrastructure department to release the feature into production.

They will schedule it on the next release, 1 week from now (4 hours)

More or less...

What can be improved? (15 minutes + 5 minute briefing)

Value Stream + KanbanSelected Backlog

Code Test Done!

Design

Rdy Rdy On On

Optimizing Value Streams•Remove waste •Remove impediments (flow!) •Remove unnecessary steps •Start earlier / parallelize •Work in smaller / more frequent batches •Remove bottlenecks (ToC) •Subordinate to the pacemaker and free

resources •As a final option, only when all the others

have been done, add resources

How can we solve?

•Enforce value maximization, both by communication, rewarding right behaviors and pointing out wrong ones

•Enforce long term thinking & planning • Involve leadership and form cross-

functional teams •Define relevant metrics •Consider the hidden cost of “not doing”

Resources

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