Lean and Kanban at Scale Extending Kanban across the portfolio, program and team levels. Al Shalloway, Net Objectives. September 4 th, 2014

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2 Lean and Kanban at Scale Extending Kanban across the portfolio, program and team levels Al Shalloway, Net Objectives September 4 th, 2014

3 Implementing Kanban at Scale

4 Al Shalloway, CEO & Founder of Net Objectives With over 40 years of experience, Al is an industry thought leader in Lean, Kanban, product portfolio management, SAFe, Scrum and agile design. Co-founder of LKU (no longer affiliated) SPC Trainer

5 Copyright Net Objectives, Inc. All Rights Reserved 5 setting the record straight Agility is about delivering business value quickly, predictably, sustainably and with high quality It is not about developer cycles

6 this talk is about mindset solutions are not being provided Copyright Net Objectives, Inc. All Rights Reserved 6

7 Copyright Net Objectives, Inc. All Rights Reserved 7 The Players Kanban Kanban Method Lean- Kanban Lean- Thinking What they do Using pull to manage work A kaizen only approach Using kanban to improve flow by managing WIP Ignores structure of eco-system Using Kanban and Kanban Method within the bigger picture of Lean Using all of Lean to solve your challenges

8 Copyright Net Objectives, Inc. All Rights Reserved 8 Lean-Startup concepts to identify work to be done Lean to modify eco-system Kanban to manage flow Attend to technical practices

9 Copyright Net Objectives, Inc. All Rights Reserved 9 AGILE AT SCALE 1. THE CHALLENGE HIERARCHY VS. WORKFLOW 2. VALUE STREAM IMPEDANCE 3. ALLOCATE PEOPLE TO MOST VALUABLE WORK 4. MANAGING FLOW ACROSS ENTIRE VALUE STREAM 5. THE ROLES OF BUSINESS, MANAGEMENT, TEAMS 6. DIFFERENT APPROACHES 7. SCRUMBAN / KANBAN 8. SUMMATION & QUESTIONS agenda

10 Copyright Net Objectives, Inc. All Rights Reserved 10 Systems & Structures Poor systems cause most of our problems Biggest sources of waste are: Delays in workflow Delays in feedback Consider: Customers don t know what they want What happens when we don t do test-first Consider: Developers and fixing bugs The delays due to how devs & testers work together

11 Copyright Net Objectives, Inc. All Rights Reserved 11 Common Organizational Structure inspired by Dan North, BSC/ADP 2012

12 Copyright Net Objectives, Inc. All Rights Reserved 12 Hierarchical What they can manage What they need to manage Their people How busy they are Their productivity The quality of work of their people

13 The Nature of Our Work Copyright Net Objectives, Inc. All Rights Reserved 13

14 Copyright Net Objectives, Inc. All Rights Reserved 14 We Manage This Way even though our value flows this way

15 Copyright Net Objectives, Inc. All Rights Reserved 15 Hierarchical vs. Lean Management What they can manage Their people How busy they are Their productivity The quality of work of their people What they need to manage Time-to-market Effects of upstream groups on their teams Effects of downstream groups on their teams

16 Copyright Net Objectives, Inc. All Rights Reserved 16 Who is managing the value?

17 Time-to-Market Copyright Net Objectives, Inc. All Rights Reserved 17

18 Copyright Net Objectives, Inc. All Rights Reserved 18 How Often Does Work Wait? What percent of the time is our work moving forward? How much of the time is it waiting for something else to be done? How would you know? No one is managing this in most companies. Waiting Waiting Waiting Adding Value Adding Value Adding Value Adding Value Adding Value Adding Value

19 Copyright Net Objectives, Inc. All Rights Reserved 19 what happens when adding value is delayed? between getting requirements and using them between writing a bug and it being detected between two groups getting out of sync between starting a project and it delivering value

20 The Whole Picture Copyright Net Objectives, Inc. All Rights Reserved 20

21 Copyright Net Objectives, Inc. All Rights Reserved 21 Request Approve Reqts Sign Off Analysis Design Review Code Test Deploy 1. Identify the actions taken in the value stream

22 Copyright Net Objectives, Inc. All Rights Reserved 22 Request Approve Reqts Sign Off Analysis 0.5 hrs 8 hrs 160 hrs 8 hrs 100 hrs Design Review Code Test Deploy 120 hrs` 2 hrs 280 hrs 240 hrs 8 hrs 1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action?

23 Copyright Net Objectives, Inc. All Rights Reserved 23 Request Approve Reqts Sign Off Analysis 0.5 / 0.0 hr.1 / 7.9 hrs 60 / 100 hrs 1 / 7 hrs 0.5 hrs 8 hrs 160 hrs 8 hrs 40 / 600 hrs 100 hrs Design Review Code Test Deploy 40 / 80 hrs 2 / 0 hrs 80 / 200 hrs 40 / 200 hrs 120 hrs` 2 hrs 280 hrs 240 hrs 3 / 5 hrs 8 hrs 1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? 3. What was the average time working on this vs. working on other things?

24 Copyright Net Objectives, Inc. All Rights Reserved 24 Request Approve Reqts Sign Off Analysis 0.5 / 0.0 hr 320 hrs.1 / 7.9 hrs 80 hrs 60 / 100 hrs 320 hrs 1 / 7 hrs 80 hrs 40 / 600 hrs 0.5 hrs 8 hrs 160 hrs 8 hrs 100 hrs 80 hrs Design Review Code Test Deploy 40 / 80 hrs 160 hrs 2 / 0 hrs 80 hrs 80 / 200 hrs 80 hrs 40 / 200 hrs 80 hrs 120 hrs` 2 hrs 280 hrs 240 hrs 3 / 5 hrs 8 hrs 1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? 3. What was the average time working on this vs. working on other things? 4. Identify time between actions

25 Copyright Net Objectives, Inc. All Rights Reserved 25 Request Approve Reqts Sign Off Analysis 0.5 / 0.0 hr 320 hrs.1 / 7.9 hrs 80 hrs 60 / 100 hrs 320 hrs 1 / 7 hrs 80 hrs 40 / 600 hrs 0.5 hrs 8 hrs 160 hrs 8 hrs 100 hrs 80 hrs Design Review Code Test Deploy 40 / 80 hrs 160 hrs 2 / 0 hrs 80 hrs 80 / 200 hrs 80 hrs 40 / 200 hrs 80 hrs 120 hrs` 2 hrs 280 hrs 240 hrs 3 / 5 hrs 8 hrs 20% rejected Repeat 1X 65% defective Repeat 3X 1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? 3. What was the average time working on this vs. working on other things? 4. Identify time between actions 5. Identify any loop backs required

26 Request Approve Reqts Sign Off 0.5 / 0.0 hrs 0.5 / 0.0 hr 320 hrs.1 / 7.9 hrs hrs hrs hrs 60 / 100 hrs hrs 320 hrs 1 / 7 hrs hrs 80 hrs 0.5 hrs 8 hrs 160 hrs 8 hrs Analysis 40 / 60 hrs 40 / 600 hrs 100 hrs 80 hrs Design Review Code Test 40 / 80 hrs hrs 160 hrs 2 / 0 hrs hrs 80 hrs 80 / 200 hrs hrs 80 hrs 40 / 200 hrs hrs 80 hrs 120 hrs` 2 hrs 280 hrs 240 hrs Deploy 3 / 5 hrs hrs 8 hrs 20% rejected Repeat 1X 65% defective Repeat 3X 509 hrs PCE = = 14.9% 3433 hrs 1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? 3. What was the average time working on this vs. working on other things? 4. Identify time between actions 5. Identify any loop backs required Avg Time Worked 6. Calculate Process Cycle Efficiency: Total Cycle Time Copyright Net Objectives, Inc. All Rights Reserved 26

27 Copyright Net Objectives, Inc. All Rights Reserved 27 Request Approve Reqts Sign Off Analysis 0.5 / 0.0 hr 320 hrs 0.5 / 0.0 hrs hrs hrs 0.5 / 0.0 hrs 320 hrs 0.5 / 0.0 hrs 80 hrs 0.5 / 0.0 hrs 0.5 hrs 8 hrs 160 hrs 8 hrs 100 hrs 80 hrs Design Review Code Test Deploy 0.5 / 0.0 hrs 160 hrs 0.5 / 0.0 hrs 80 hrs 0.5 / 0.0 hrs 80 hrs 0.5 / 0.0 hrs 80 hrs 120 hrs` 2 hrs 280 hrs 240 hrs 0.5 / 0.0 hrs 8 hrs 20% rejected Repeat 1X 65% defective Repeat 3X Which gives a better return? Getting better at what you do Eliminating delays between what you do

28 Copyright Net Objectives, Inc. All Rights Reserved 28 Lean limits time Kanban queue size limits

29 Copyright Net Objectives, Inc. All Rights Reserved 26 September Request 0.5 / 0.0 hr Approve Reqts Sign Off 320 hrs.1 / 7.9 hrs 80 hrs 60 / 100 hrs 320 hrs 1 / 7 hrs 80 hrs 0.5 hrs 8 hrs 160 hrs 8hrs Analysis 40 / 60 hrs 100 hrs 80 hrs Design 40 / 80 hrs Review Code 2 / 0 hrs 160 hrs 80 hrs 80 / 200 hrs 80 hrs 40 / 200 hrs 80 hrs 120 hrs 2 hrs 280 hrs 240 hrs Test Deploy 3 / 5 hrs 8 hrs 20% rejected Repeat 1X 65% defective Repeat 3X

30 -- Product Managers -- Waiting for approval 320 map value stream to kanban board Copyright Net Objectives, Inc. All Rights Reserved 30

31 -- Product Managers -- Waiting for approval Working on approval map value stream to kanban board Copyright Net Objectives, Inc. All Rights Reserved 31

32 -- Product Managers -- Waiting for approval Working on approval Ready for Requirements map value stream to kanban board Copyright Net Objectives, Inc. All Rights Reserved 32

33 -- Product Managers -- Waiting for approval Working on approval Ready for Requirements Requirements map value stream to kanban board Copyright Net Objectives, Inc. All Rights Reserved 33

34 -- Product Managers -- Waiting for approval Working on approval Ready for Requirements Requirements Ready for sign off map value stream to kanban board Copyright Net Objectives, Inc. All Rights Reserved 34

35 -- Product Managers Development Team Waiting for approval Working on approval Ready for Requirements Requirements Ready for sign off Sign Off map value stream to kanban board Copyright Net Objectives, Inc. All Rights Reserved 35

36 -- Product Managers Development Team Waiting for approval Working on approval Ready for Requirements Requirements Ready for sign off Sign Off Ready for Analysis Analysis Ready for Design Design Ready for Review Review Ready for Code Code Ready for Test Test Ready for Deplay Deplay Done map value stream to kanban board Copyright Net Objectives, Inc. All Rights Reserved 36

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