lean talk knoxville - pbworksagileconsortium.pbworks.com/f/lean talk knoxville.pdf · ·...

© Joe Little 2009

LEAN PRINCIPLES“What’s Lean got to do with it?”

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© Joe Little 2009

With help from...

With help from Google, Microsoft, IBM, MySpace, GE, Siemens, Nortel, AOL, Accenture, Trifork, Systematic Software Engineering, Exigen

Services, SirsiDynix, Philips, iContact, Medco, Xebia, SolutionsIQ, Crisp, Citigroup, Bank of America, Applied Physics Laboratory, Motley Fool, CAE, Wells Fargo/Wachovia, Ultimate Software, Scrum Training Institute, Rally, Sungard, Wake Forest University, Georgia Institute of Technology, Cornell, NC State University, CNN/Turner, Compuware, Red Hat, Huawei, Scripps

Network Interactive, CA, Morrison Management, McKesson, Version One, DST, Booz Allen Hamilton, McKinsey & Co, Scrum Alliance, Travelocity, SteamTheWorld, INM, EDR, intersect, RealTravel, NYSE Euronext, Avid Technology, Tradeware, The Hartford, Pearson, The Library Company,

Sonic Boom Media, The New Teacher Project, Alliance Global Services, Comcast, Gilbarco, Smart Online, Wireless Generation, HP, REMITData,

Asurion, Northrop Grumman, NEA, SAIC, FedEx, American Greetings Interactive, Nationwide, Dell, Polycom, Charles Schwab, Vignette, J ray McDermott, Capital One, Vanguard, S1, Argonaut Group, Mantech, ADI

LLC, and others.

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© Joe Little 2009

Attributions

Taiichi OhnoMary & Tom PoppendieckJeff SutherlandJim YorkMany others

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© Joe Little 2009

Joe Little

• Agile Coach & Trainer• 20+ years in senior level consulting to well-known firms in New York, London and

Charlotte• Focus on delivery of Business Value; interest in Lean • CST, CSP, CSM; MBA• Was Senior Manager in Big 6 consulting• Head of Kitty Hawk Consulting, Inc. since 1991• Head of LeanAgileTraining.com• Started trying to do [Agile] before reading The Mythical Man-Month

– http://agileconsortium.blogspot.com

– [email protected]

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© Joe Little 2009

6 Blindmen and an Elephant

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© Joe Little 2009

What’s the most important thing about Lean?

Respect people?

No one thing?

Taiichi Ohno’s attitude?

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© Joe Little 2009

Where to start?

Specify value in the eyes of the customer, in terms of a specific product at a specific time, place and price

See Womack & Jones, Lean Thinking

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© Joe Little 2009

Why are we building the wrong stuff?

Never45%

Rarely19%

Some1mes16%

O5en13%

Always7%

Features and functions used in a typical system:

Source: Standish Group Study Reported at XP2002by Jim Johnson, Chairman

2/3 of the stuff we build is rarely or

never used!

Only 1/5 of thestuff we build is used

often or always!

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© Joe Little 2009

Now, what does this mean?

Do we really focus enough on Business Value?

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© Joe Little 2009

Some people & firms

Ben Franklin “A penny saved is a penny earned”Henry Ford, Today and TomorrowPiggly-WigglySakichi ToyodaTaiichi OhnoShigeo ShingoToyotaWomack & JonesJeffrey LikerTakeuchi & Nonaka

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© Joe Little 2009

Key Terms

Just-in-timeKaizenSMED (Single minute exchange of die)Poka-YokeProduction levelingMura, muri, mudaWorkcellAndonGenchi genbutsuGemba5 Whys

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Pull systemValue stream mapOptimize cycle timeTPS; The Toyota Way“relentless pursuit of perfection”one-piece flowvisual managementzero inventorychallenge everythingrespect for peoplemake the process visiblestop the line cultureSensei

© Joe Little 2009

The essence?

“The essence of [the Toyota system] is that each individual employee is given the opportunity to find problems in hiw own way of working, to solve them and to make improvements.”

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© Joe Little 2009

Short Pause

I will make comparisons to ScrumWhat is that??

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© Joe Little 2009

Scrum is a Simple Framework

Scrum

Meetings

Sprint Planning

Daily Scrum

Roles

Team

Product Owner

ScrumMasterArtifactsBurndown Chart

Sprint Backlog

Product Backlog

Sprint Review

Retro-spective

Imped List

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Working SW

© Joe Little 2009

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© Joe Little 2009

Kaizen Mind

The ‘Toyota Way’ Is Translated for a New Generation of Foreign Managers By Martin Fackler, New York Times, February 15, 2007

• “It can be a shock to the system to be actually expected to make problems visible.”

• “There is a sense of danger,” said Koki Konishi, who heads the Toyota Technical Skills Academy in Toyota City.

• “We must prevent the Toyota Way from getting more and more diluted as Toyota grows overseas.”

• We need “kaizen mind,” an unending sense of crisis behind the company’s constant drive to improve.

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© Joe Little 2009

Toyota Way: Learn by DoingFujio Cho, Board Chairman

• We place the highest value on actual implementation and taking action. Agile Principle #1

• There are many things one doesn’t understand, and therefore we ask them why don’t you just go ahead and take action; try to do something? Agile Principle #3, #11

• You realize how little you know and you face your own failures and redo it again and at the second trial you realize another mistake … so you can redo it once again. Agile Principle #11, #12

• So by constant improvement … one can rise to the higher level of practice and knowledge. Agile Principle #3

"Anyone who has never made a mistake has never tried anything new." Albert Einstein 17

CSM v9.5 © Jeff Sutherland 1993-2009

Toyota & Lean Thinking

Brilliant process managementis our strategy.

We get brilliant results from average peoplemanaging brilliant processes.

We observe that ourcompetitors often getaverage (or worse) resultsfrom brilliant peoplemanaging broken processes.

What Toyota says

” Only after American car makers had exhausted every other explanation for Toyota’s success – an undervalued yen, a docile workforce, Japanese culture, superior automation – were they finally able to admit that Toyota’s real advantage was its ability to harness the

intellect of ‘ordinary’ employees.” – Harvard Business Review Feb 2006

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Make fact-based experiments

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This is the Deming Cycle


Lean is a new paradigm

Half of what we think is wrong!

So, is inventory an asset?

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Inventory is waste

Nothing good comes from a new car decaying on a lot; knowledge decays faster

Can you ever get to perfectly zero inventories and work-in-process??

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Three Key Lean Ideas

Mura: Unevenness of FlowMuri: Overstressing the systemMuda: Waste

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What is the goal?

Lean thinkers reason this way:“By greatly reducing the cycle time from customer identification of need until the need is satisfied (and we get the cash), we learn to give the customer better, more, faster, and cheaper.”

Most of the delay is in wait time.

This remains a paradox to many.We optimize cycle time, not anything else.

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The baton, not the runners

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Lean principles

Respect peopleEliminate wasteBuild quality inCreate knowledgeDefer commitmentDeliver fastOptimize the whole

25Source: Mary & Tom Poppendieck


Algorithm for answering a question

Is this a useful question? Or the right, best question?When is the best time to answer the question? (Usually when we have more information.) When must we answer the question?

Just before that time...ok, let’s decide the best answer now!

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© Joe Little 2009

Exercise: Pass the pennies

Source: Henrik Kniberg27

© Joe Little 2009

What’s the foundation?

The Toyota WayManagers-teachers imbued with Lean Thinking

You cannot “phone in” your support for The Toyota Way

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© Joe Little 2009

Where to learn?

Genchi genbutsu: Go and see for yourself.

This is much like the ScrumMaster building trust with the Team by fixing the biggest impediment

Go to the Gemba (the place where the truth is; the team room, perhaps)“Learn to see”

OK, ok, so some nice catch-phrases. So what??

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© Joe Little 2009

Stop the line culture - 1

What did it mean? Stop Henry Ford’s production line? Way too costly!

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© Joe Little 2009


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© Joe Little 2009


No bug escapes the Sprint.Impediments mentioned every Daily Scrum.Strong use of Retrospective.Every problem is an opportunity to improve.

The 5 Whys.

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© Joe Little 2009

Slack

Road utilization = 100%Throughput: Terrible

Road utilization ≈ 70%Throughput: Fast

Road utilization ≈ 5%Throughput: Fast

CPU:100%

CPU:100%

CPU:100%

CPU:70%

CPU:70%

CPU:70%

CPU: 5%

CPU: 5%

CPU: 5%

Server utilization = 100%Response: Slow

Server utilization = 70%Response: Fast

Server utilization ≈ 5%Response: Fast

! !!!

! !

! !!!

!

!

Staff utilization = 100%Delivery: Slow

Staff utilization ≈ 70%Delivery: Fast

Staff utilization ≈ 5%Delivery: Fast


© Joe Little 2009

What is “respect for people”?

ChallengingListeningDemandingAskingTestingLet them devise their own work methods, so they own them, and then can improve themFinally, deciding

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© Joe Little 2009

Standardize

Standardize a lot

...so the standards are easier to change

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© Joe Little 2009

Pull Scheduling

We do nothing up the line, until we get a signal down the line that it is needed and wanted

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© Joe Little 2009

Kanban

Kanban: literally - visual card

Use in manufacturing: a means of organizing a pull system to minimize inventory

Use in Agile: a means of signaling status of a user story so that it flows. And so that the Team can easily see the status of the work (in the Sprint).

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3 roles• Product owner• Scrum master• Team

3 artifacts• Product backlog• Sprint backlog• Sprint burndown

4 activities• Sprint planning• Daily scrum• Sprint review• Retrospective

© Joe Little 2009

Preferred Scrum board style

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Sou

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Mik

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w.m

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com

© Joe Little 2009

How does one learn process improvement?

Learn by doing. Practice, practice, practice.Who does it? Everyone.How often? Always, all-the-time.

Is it chaos? No. There are rules. Changes must be reviewed. Changes must be proven. Etc.

Is this the same as 6Sigma process improvement?

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The 7 wastes of software development

Partially done workExtra features Lost knowledgeHandoffsTask switchingDelaysDefects

Never45%

Rarely19%

Sometimes16%

Often13%

Always7%

Features and functions used in a typical system:

Source: Standish Group Study Reported at XP2002by Jim Johnson, Chairman

2/3 of the stuff we build is rarely or

never used!

Only 1/5 of thestuff we build is used

often or always!

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Root Causes

5 WhysIshikawa: fishbone diagram

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Value stream mapping

A thinking toolend-to-endRelatively quickly done“Process cycle efficiency” number

VA activitesNVA activities

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© Joe Little 2009

SamConcept

pres.Lisa

assigns resources

Graphics design

Sound design Dev Integr. &

deploy2d 1m

4h6m

8

Game backlog

1w 6m 6m

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Design-ready games

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Production-ready games

1m 3w 3m(1m+2m)

3w2h 1d

3 m value added time

25 m cycle time

w2w1 w4w3 w6w5 w8w7

= 12%Process cycle efficiency

Estimate

Preliminary result

2 m cycle time = 12x faster

3-4 m cycle time = 6-8x faster

w2w1 w4w3 w6w5 w8w7

Games out of date⇒ Missed market windows⇒ Demotivated teams⇒ Overhead costs





© Joe Little 2009

Sprint retrospective Long term effect

Sprint

Vel

oci

ty

4 5 6 7 8 9 10 11 121 2 3 13

Effective velocity over time(with retrospectives)

Effective velocity over time(without retrospectives)

Source: Henrik Kniberg

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© Joe Little 2009

The Goal

Toyota generally wants to be 4x the industry averageScrum wants to raise that a bit for software dev teams.

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© Joe Little 2009

The Test

What is one most memorable thing?

What will you act on tomorrow? (If anything.)

How could this be improved?

Thanks!

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