Benchmarking Experiences and Guidelines for Improvement

Transcription

1 Benchmarking Experiences and Guidelines for Improvement Christof Ebert, Vector Consulting Services V

2 Welcome Vector Consulting Services supports clients worldwide in improving their product development and IT and with interim management with clients such as Accenture, Audi, BMW, Bosch, Daimler, Ford, Huawei, Hyundai, IBM, Lufthansa, Munich RE, Porsche, Siemens, Thales, Toyota and ZF offers with the Vector Group a portfolio of tools, software components and services is as Vector Group globally present with 1500 employees and well over 300 Mio. sales Aerospace Industry Railway Automotive IT & Finance Medical 2/ Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

3 Agenda Welcome Performance Improvement Benchmarking Case Study Summary 3/ Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

4 Performance Improvement Product Development and the Business Impact Added value 30% Overheads 40% Pure waste 30% Department Ping Pong Sources: Vector Benchmarking Suite, Ebert / Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

5 Performance Improvement Optimizing Value Balancing Good Enough Value Insufficient quality Technical debt Target Good enough Realistic Overengineering Effort 5/ Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

6 Agenda Welcome Performance Improvement Benchmarking Case Study Summary 6/ Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

7 Benchmarking What is Benchmarking? Benchmarking is the structured and systematic learning from the best in class. Benchmarking of IT and Software applies to different dimensions Products (e.g., quality requirements, product complexity, variance, platforms, technical debt, architecture) Processes (e.g., roles, methods, tools, value stream, productivity) Projects (e.g., estimation, supplier management, interfaces) People (e.g., competences, distributed teams, organization) Productivity Improvement needs Learning, Transitition Sustainable Improvements Time 7/ Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

8 Benchmarking Benchmarking Consists of Three Steps Step 1: Understand needs and set goals Which strengths and gaps need to be addressed? Which products, services and practices need to be improved? What results are expected from a benchmark? Step 2: Measure against the best in class Which performance indicators should be measured? What reference data is available? Step 3: Implement sustainable improvements Which concrete actions will translate benchmarking results to benefits? How to avoid that benchmarking is a short-term hype? Benchmarking means measurement and improvement. If Benchmarking is misunderstood as mere data collection it will not yield any value. 8/ Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

9 Benchmarking Business Performance and Improvement IT/Software Impact Change Program Business Pain Points Pain Points Performance Business Performance Continuous Improvement Marketing, Ops, Product Mgmt Sales, Marketing, Finance (Customer Satisfaction, Prizing, Service, Revenues, Organization, Corporate Culture) Vector Benchmarking Suite Measurements (Gap analysis, Engineering and IT performance, contribution to business, improvement progress) Industry benchmarks (Product, Defects, Rework, Complexity, Locations, Competences, People management, Processes) Productivity levers: Value orientation, Waste reduction, People focus Best practices for change 9/ Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

10 Benchmarking Vector Benchmarking Suite Practices Improvement Potentials Organization rating and improvement suggestions Client Data Data Quantitative Data and Meta-Data Vector DB Benchmarks Qualitative Performance Rating Strengths and weaknesses from benchmarks 10/ Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

11 Benchmarking Benchmarking needs Measurement The role for measurement 80% of all life-cycle costs are (pre-) defined in development, e.g., rework or variation 75% of companies don t reliably measure their cost drivers An average project accumulates 43% of unplanned costs before finished or aborted Product cost Others Cost of sales Dvmt cost Business impact Dvmt cost Value: Regular project cost Waste: defects, rework etc. Focus Our recommendations: Set up mandatory internal standard measurements Do not just collect data, but analyze and use the data, such as trends Compare apples and apples Provide ways to learn and to improve from benchmarks Evaluate contribution and pinpoint to external effects, e.g. changes, complexity 11/ Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

12 Agenda Welcome Performance Improvement Benchmarking Case Study Summary 12/ Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

13 Case Study Vector Case Study: Qualitative Analysis Vector 3-S approach for each improvement: Setup, Success, Sustain Client practices and data are continuously benchmarked Train people on key competences, e.g. project managers, product managers Core teams with business ownership Empowered feature teams Less site distribution of projects Continuously improve Empower people Focus on value Optimize value streams Eliminate waste Case Study Focus Reduce interface frictions Combined design / test teams Higher process maturity Agile development Requirements valuation (e.g., Kano) Earned value management Variant reduction Review culture Test-oriented requirements engineering Defect root cause analysis Reduce and manage requirement changes Early defect detection Criticality analysis 13/ Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

14 Case Study Vector Case Study: Set a Clear Focus Our recommendations: Set a clear goal: Reduce waste Analyze waste in work flows such as requirements value, requirements changes, duration of open defects, defect detection effectiveness. Case Study Focus Sometimes 16% Rarely 19% Learn from industry best practices and extract concrete prioritized actions Project: Use quality gates as defined thresholds and to ensure transparent governance. Product: Reduce technical debt such as insufficient architecture with concrete refactoring actions. Often 13% Always 7% Never 45% Feature Usage Sources: Vector Benchmarking Suite, Microsoft, Daimler, BITKOM 2012, Ebert / Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

15 Case Study Vector Case Study: Quantitative Analysis Productivity Optimum: 2-3 tasks or projects Productivity Optimum: 10-15% # Tasks allocated per person Effort for requirements and architecture Focus Productivity Optimum: 2-3 sites Productivity Optimum: <40% # Sites per project # Requirements changes Productivity Optimum: < 1year duration < 10 PY effort < 1000 FP size Project complexity Productivity Optimum: 5-10% # Project delays at handover Sources: Vector Benchmarking Suite, Ebert / Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

16 Case Study Vector Case Study: Implement the Change Project From Classic Development To Lean Agile Vector Contribution Streamlined development processes and interfaces Value-orientation end-to-end Product line engineering from requirements onwards Efficient yet effective safety processes and governance Client Benefits 25% reduction of lead time and effort before project start Reduction of hand-offs and pingpong between project functions 20% reduction of project lead time by concurrent engineering 16/ Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

17 Agenda Welcome Performance Improvement Benchmarking Case Study Summary 17/ Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

18 Summary Performance Improvement Is Not Easy Two thirds of productivity improvement projects fail Productivity improvement is a substantial culture change Change is often underestimated and handled ad-hoc Other reasons Pressure without ownership 13% Internal resistance 17% 48% Reasons No management leadership Insufficient communication 22% Lack of internal know-how Insufficient know-how Sources: Vector Consulting Services 2016 Benchmarking needs top-down improvement focus. 18/ Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

19 Summary Recommendations Consider business impacts Start with strengths and weaknesses Set improvement targets in line with your business needs Start benchmarking top down to achieve sustainable results Learn from best in class Consider value, waste, people and your ability to improve Don t just collect and compare measurements Use benchmarking to grow Continuously challenge your performance Benchmarking must be supported by experts to avoid number-crunching without sustainable improvement. 19/ Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

20 Summary Concrete Benchmarks and Measurements Software Measurement Establish, Extract, Evaluate, Execute Christof Ebert and Reiner Dumke Third edition, Springer, Few organizations have really institutionalized measurement of their products and processes. This book is bang up-to-date in both fields and packed with practical advice. For every software engineer." Charles R. Symons, Inventor of Function Points 20/ Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

21 Summary Optimizing Global Projects and Teams Global Software and IT Christof Ebert 2. extended Edition, Wiley, 2011 Discount: "This book stands out as the best source of information on distributed software development. Seldom do we see a book with the concepts completely backed by industry experiences and views. Software developers and managers benefit from the broad case studies. S M Balasubramanian, Vice President, Wipro Technologies 21/ Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V

22 For more information about Vector Consulting Services please visit Vector Consulting Services Your Partner in Achieving Engineering Excellence Phone Fax Vector Consulting Services GmbH. All rights reserved. Any distribution or copying is subject to prior written approval by Vector. V