team hacking with lean metrics & cumulative flow diagrams

LEAN METRICSTEAM HACKING WITH

HI! I’M TIM!▸ Agile Consultant, Co-founder Skillfire.co

▸ Say hi: @timnwbld & linkedin.com/in/timnewbold

▸ Check out our Skillfire Labs Projects:

▸ Skillfire Project Forecaster (Monte Carlo)

▸ Agile Assessment CanvasNeed some help on your Agile journey?Skillfire is a collective of brilliant independent Agile Consultants. We provide top Coaches and Team Facilitators from the likes of ThoughtWorks, REA, Seek and other leading agile firms. Contact us discuss how we can help you succeed!

Call +613 9913 4402 or email hello@skillfire.co

KEEP STORIES TO A SIMILAR SIZE OTHERWISE, YOUR METRICS DON’T MEAN MUCH

HOW ARE METRICS USEFUL?

▸ Understand changes in team dynamics

▸ Highlight opportunities for improvements

▸ Highlight challenges the team is facing

▸ Forecasting

▸ Inspect and adapt

WHERE ARE THEY DANGEROUS

▸ Don’t reflect productivity

▸ Lack qualitative observations

▸ Partial view

▸ Most are lagging

▸ Gaming

“WHEN A MEASURE BECOMES A TARGET, IT CEASES TO BE A GOOD MEASURE.”

Goodhart's law

HONEST SIMPLE

ACTIONABLE

QUALITY METRICS

WORK IN PROGRESS QUEUE SIZE

LEADING INDICATORS

TIME IN QUEUESPROCESS EFFICIENCY

COST OF DELAYWHAT’S A QCOST?

WSJF = Value + Time + Risk + Opportunity

Size

Story Value PA = Projected Revenue

Story Count

Story Value PA

Business DaysDaily COD =

IDEAS TO QUANTIFY

1

2

3

WSJF

DAILY AVERAGE

OTHERS?

THROUGHPUT LEADTIME

HOW MUCH, HOW FAST?

PRODUCTION-LEAD TIME

TIME TO PRODUCE

Coun

t

0

7.5

15

22.5

30

Days to complete

1 2 3 4 5 6 7 8 9 10 11+

PRODUCTION LEAD TIME DISTRIBUTION

Days Count % % SUM 1 12 11 112 15 14 263 24 23 494 17 16 655 15 14 796 10 10 897 5 5 938 3 3 969 2 2 98

10 1 1 9911+ 1 1 100

CYCLE TIME TAKT TIME

FREQUENCY

[AVERAGE] CYCLE TIME IS COMPUTED BY DIVIDING OPERATING HOURS BY THE QUANTITY REQUIRED PER DAY. EVEN WHEN CYCLE TIME IS DETERMINED THIS WAY, INDIVIDUAL TIMES MAY DIFFER.

Taiichi Ohno (1988)

CYCLE TIME != PRODUCTION LEAD TIME!!! WELL… IN THE TPS & MOST LEAN TEXTS ANYHOW.

CYCLE TIME

30 min cycle time30 min /2

15 min cycle time

CYCLE TIME - SEQUENTIAL STEPS

30 min cycle time

WASH DRY FOLD

CYCLE TIME 30 MIN

30 min cycle time

30 min cycle time

THEORY OF CONSTRAINTS

IDENTIFY

EXPLOIT

ELEVATE SUBORDINATE

REPEAT

LITTLE’S LAWWHAT TO CHANGE?

WIP = THROUGHPUT * PRODUCTION LEAD TIME

50 = 5 * 10

PRODUCTION LEAD TIME = WIP /THROUGHPUT

10 = 50 /5

THROUGHPUT = WIP /PRODUCTION LEAD TIME

5 = 50 /10

WIP 4

4 DAYS

WIP = THROUGHPUT * PRODUCTION LEAD TIME

4 = 1 * 4

WIP 22 DAYS

(4 = 1 * 4)/2

2 = .5 * 2

DEFECTS PER STORY MTTR

FAILURE DEMAND

"HIGH-QUALITY SOFTWARE IS NOT EXPENSIVE. HIGH-QUALITY SOFTWARE IS FASTER AND CHEAPER TO BUILD AND MAINTAIN THAN LOW-QUALITY SOFTWARE, FROM INITIAL DEVELOPMENT ALL THE WAY THROUGH TOTAL COST OF OWNERSHIP."

Capers Jones

TIME TO FEEDBACK

NO SURPRISES

NET FLOWARE WE TAKING ON TOO MUCH?

UTILISATIONSOME THINGS BEST LEFT ALONE

DARK MATTER!

WHERE DID THAT COME FROM?

SOLVING THE CUSTOMER’S PROBLEM

FOCUS ON IMPACT

TEAM HAPPINESS

FLOW IS GREAT, BUT…

A QUICK RECAP SO FAR…

▸ Queue size

▸ Work In Progress

▸ Cost of Delay

▸ Throughput

▸ Lead time

▸ Production Lead Time (AKA Processing time)

▸ Mean Time To Resolve

▸ Cycle Time/Takt Time

▸ Theory of Constraints

▸ Little’s Law

▸ Net flow

▸ Time to Feedback

▸ Dark Matter

▸ NPS

▸ Team Happiness

Create your own from: https://docs.google.com/spreadsheets/d/16YuUH298KMV4ummXv2fGHmORvUGXMW2wZhAX2VtCkkM/edit?hl=en#gid=2

CUMULATIVE FLOW DIAGRAMS (CFD)

Prod Lead Time

CFD EXAMPLES

SCOPE CHANGE INCREASED WIP DEV WIP/QA CAPACITY ISSUE?

BIG BATCH LASTING PROBLEM TROUBLE IN TEST

See more: http://brodzinski.com/2013/07/cumulative-flow-diagram.html

REMOVE ‘TO DO’ & ‘DONE’ TO SEE WIP

PROCEED WITH CAUTION

QUESTIONS/THOUGHTS?

REFERENCES

▸ https://less.works/less/principles/queueing_theory.html

▸ http://leankit.com/learn/kanban/lean-flow-metrics/

▸ http://hbswk.hbs.edu/archive/1460.html#1

▸ http://web.mit.edu/sgraves/www/papers/Little's%20Law-Published.pdf

▸ http://itsadeliverything.com/littles-law-the-basis-of-lean-and-kanban

▸ http://brodzinski.com/2013/07/cumulative-flow-diagram.html

▸ https://www.atlassian.com/agile/metrics

▸ https://stefanroock.wordpress.com/2010/03/02/kanban-definition-of-lead-time-and-cycle-time/

ATTRIBUTIONS

▸ Over Utilisation: http://media.virbcdn.com/cdn_images/resize_1600x1600/a3/PageImage-510914-3534502-overload.jpg

▸ Samuel Jackson Image: http://hqwallbase.pw/43039-wtf-wallpaper-1440x900/

▸ Illustrated CFD: http://paulklipp.com/images/Interpreting_a_Cumulative_Flow_Diagram.jpg

▸ Fail Image: http://www.sharenator.com/FAIL_6/

▸ NPS image: http://www.netpromotersystem.com/about/measuring-your-net-promoter-score.aspx