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dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
PresenterDavid J. Anderson
CEO, Lean Kanban Inc.
Agile DaysMoscow
March 2014Release 1.1
KanbanAn Alternative Path to Agility
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
The Meaning of Agile
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
What Agile Methods Seek to Achieve
Let’s not bore you (yet again) with a slide showing the Agile
Manifesto!
Agile methods ask us to…
Make Progress with imperfect information
Reworking & course correcting as new information arrives is better risk management & faster than
delaying for “perfect” information
Enable a high trust culture
The trust dividend eliminates bureaucracy & encourages
collaborative working & use of tacit knowledge
Treat work-in-progress as if it were a liability rather than an asset
Knowledge work is perishable. Focus on finishing things quickly
before they go stale
Create Feedback Loops & enable a capability to
adapt
With 1st gen Agile methods this was limited to adapting to changing
requirements or scope
Create a craftsmanship work ethic
Encourage high quality, well engineered code that is easily adapted (refactored) as new
information arrives and requires very little rework due to errors
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
The Kanban Method –an alternative path to
agility!
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
The Old Model (18th-20th Century)
Managers
Process
Workers
ProcessCoaches
DesignsOr
DefinesImposes
Follow
AssignWorkersTo Tasks
Managers & Workers – 2
different classes
Manager as “dating agent” Model
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
The New Model (21st Century)
Managers
ProcessWorkers ProcessCoaches
Facilitate
learningControl
&EvolvePolicies
All Knowledge Workers make management
decisions
Pay grade relates, decision making,
risk & authority to override or change process policies
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
True Management Training
Very few knowledge workers
are given proper management
training.
They don’t know what business they
are in!
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
What Service Do You Provide?
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Scaling Kanban in the Enterprise is about Scaling Effective Management
The Kanban Method is not…
A project management or software development lifecycle process
Nor, does it encourage a process-centric approach to improvement!
It’s a service-oriented approach to management & organization
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
Kanban Method
Uses large boards to visualize invisible work and virtual signal card systems
Creates an adaptive capability in your organization
Enables adaptability in your business processes to respond successfully to changes in your business environment
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
Kanban Method
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
Kanban has two meanings
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Kanban’s Generalized Practices
6 Practices Enable Adaptive Capability
Visualize (with a kanban board (看板 ))
Limit Work-in-progress (with kanban (かんばん ))
Manage FlowMake Policies ExplicitImplement Feedback LoopsImprove Collaboratively, Evolve Experimentally(using models & the scientific method)
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
What is a kanban system?(かんばん )
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
A Kanban Systems consists of “kanban” (かんばん ) signal cards
in circulation
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
Using a virtual kanban system
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
H
FF OM
NK
J
I
Pull
Kanban systems are pull systems
Ideas
D
E
A
I
DevReady
G
5Ongoing
Development Testing
Done3 3
TestReady
5
F
B
CPull
Pull
*
There is capacity here
UATReleaseReady
∞ ∞
Pulling work from development will create
capacity here too –the pull signals move
upstream!
Now we have capacity to replenish our ready
buffer
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
H
FF FF FF J
I
Pull
Kanban are virtual!
Ideas
D
E
A
I
Engin-eeringReady
G
5Ongoing
Development Testing
Done3 3
TestReady
5
F
B
CPull
PullThese are the virtual kanban
*
These are the virtual kanbanThese are the virtual kanbanThese are the virtual kanban
The board is a visualization of the workflow process, the work-in-progress
and the kanban system
Boards are not required to do Kanban!
The first system used database triggers to signal pull. There was no board!
UATDeploy-
mentReady
∞ ∞
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
H
FF OM
NK
J
I
Kanban can be physical
Ideas
D
E
A
I
DevReady
G
Development TestingTest
Ready
F B
C
UATReleaseReady
In-progressLegend
Done
Blocked - issue
Blocked - defect
Physical token such as a magnet is a kanban
Colors are used to denote state
Moving done items down below a line is an optional enhancement
seen in some implementations
Override on kanban limit introduces additional
“blocked – issue” kanban
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
Commitment is deferred
H
EC A
I
D
Commitment point
FF FF FF FPull
Wish to avoid aborting after commitment
IdeasDev
Ready5
Ongoing
Development Testing
Done3 3
TestReady
5
UATReleaseReady
∞ ∞
We are committing to getting started. We are certain we want
to take delivery.
Ideas remain optional and (ideally) unprioritized
G
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
Discard rates are often high
H
E
C A
I
DF FF F
GH
I
Reject
IdeasDev
Ready5
Ongoing
Development Testing
Done3 3
TestReady
5
UATReleaseReady
∞ ∞
Discarded
The discard rate with Microsoft in 2004 was 48%. ~50% is commonly
observed
Options have value because the future is uncertain
0% discard rate implies there is no uncertainty about the future
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
Upstream Kanban Prepares OptionsReady
forEngin-eering
F
H
I
Comm-itted
D
4 Ongoing
Development
Done3
JK
12
Testing
Verification3
L
Commitment point
4 -
Requi-rementsAnalysis
2412 -
BizCaseDev
4824 -
Poolof
Ideas
∞
Min & Max limitsinsure sufficientoptions are alwaysavailable
Committed WorkOptions
Discarded
OReject
P Q
$$$ cost of acquiring options
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
TestReady
FF FF FF F
Replenishment Frequency
H
E
C A
I
G
D
Replenishment
Discarded
I
Pull
IdeasDev
Ready5
Ongoing
Development Testing
Done3 35
UATReleaseReady
∞ ∞
The frequency of system replenishment should reflect
arrival rate of new information and the transaction &
coordination costs of holding a meeting
Frequent replenishment is more agile.
On-demand replenishment is most
agile!
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
TestReady
FF FF FF F
Delivery Frequency
H
E
C A
I
G
D
Delivery
Discarded
I
Pull
The frequency of delivery should reflect the transaction &
coordination costs of deployment plus costs &
tolerance of customer to take delivery
IdeasDev
Ready5
Ongoing
Development Testing
Done3 35
UATReleaseReady
∞ ∞
UAT and Release buffer sizes can reduce as frequency of delivery
increases
Frequent deployment is more agile.
On-demand deployment is most agile!
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
TestReady
FF FF FF F
Specific delivery commitment may be deferred even later
H
E
C A
I
G
D
2nd
Commitmentpoint*
Kanban uses
2 Phase Commit
Discarded
I
IdeasDev
Ready5
Ongoing
Development Testing
Done3 35
UATReleaseReady
∞ ∞
We are now committing to a specific release date
*This may happen earlier if circumstances demand it
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
TestReady
FF FF FF F
Defining Kanban System Lead Time
H
E
C A
I
G
DPull
System Lead Time
Discarded
I
IdeasDev
Ready5
Ongoing
Development Testing
Done3 35
UATReleaseReady
∞ ∞
The clock starts ticking when we accept the customers order, not
when it is placed!
Until then customer orders are merely available options
Kanban system lead time ends when the
item reaches the first ∞
queue
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
Avg. Lead Time
Avg. Delivery Rate
WIP
Poolof
Ideas
ReadyTo
Deploy
Little’s Law & Cumulative Flow
Delivery Rate(from the kanban system) System Lead Time
WIP=
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
FF FF FF F
Defining Customer Lead Time
UAT
H
E
C A
I
DevReady
DeliveryReady
G
D
5∞
Pull
Ongoing
Development Testing
Done3 3
TestReady
5 ∞
Customer Lead Time
The clock still starts ticking when we accept the customers
order, not when it is placed!
Abandoned
J
Poolof
Ideas
Done∞
Frequency of batch transfers needs to be calculated and
added to kanban system lead time to calculate customer lead
time
Frequency of batch transfers needs to be calculated and
added to kanban system lead time to calculate customer lead
time
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
TestReady
Flow Efficiency
FH E
C A
I
GD
GYPB
DEMN
P1
AB
Customer Lead TimeWaiting Waiting WaitingWorking
* Zsolt Fabok, Lean Agile Scotland, Sep 2012, Lean Kanban France, Oct 2012** Hakan Forss, Lean Kanban France, Oct 2013
IdeasDev
Ready5
Ongoing
Development Testing
Done3 35
UATReleaseReady
∞ ∞Flow efficiency measures the
percentage of total lead time is spent actually adding value (or
knowledge) versus waitingFlow efficiency % = Work Time x 100%
Lead TimeFlow efficiencies of 1-5% are commonly reported. *, **
> 40% is good! Multitasking means time spent in working columns is often waiting
time
Working WaitingWorking
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
Observe Lead Time Distribution as an enabler of a Probabilistic Approach to Management
Lead Time Distribution
0
0.5
1
1.5
2
2.5
3
3.5
Days
CRs
& Bu
gs
SLA expectation of44 days with 85% on-time
Mean of 31 days
SLA expectation of105 days with 98 % on-time
This is multi-modal data!
The work is of two types: Change Requests (new
features); and Production Defects
This is multi-modal data!
The work is of two types: Change Requests (new
features); and Production Defects
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
Filter Lead Time data by Type of Work (and Class of Service) to get Single Mode Distributions
85% at10 days
Mean5 days
98% at25 days
Chan
ge R
eque
sts
Prod
uctio
n De
fect
s
85% at60 days
Mean 50 days
98% at150 days
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
Metrics for Kanban Systems
Cumulative flow integrates demand, WIP, approx. avg. lead time and delivery rate capabilities
Lead time histograms show us actual lead time capability
Flow efficiency, value versus failure demand (rework), initial quality, and impact of blocking issues are also useful
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
Kanban Improves Agility
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
Kanban Coming to Russia…
Moscow September 24-25
Venue to be announced. Watch…
http://conf.leankanban.com
http://conf.leankanban.ru/
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
Learn More
http://www.limitedwipsociety.org
http://edu.leankanban.com
@leankanbanu
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
Thank you!
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
Upcoming Training in Europe
Leading Change & Managing Risk MasterclassesStockholm March 24-28http://djaa.com/kcpm-022014bVienna March 31 – April 4http://www.djaa.com/kcpm-05201401 Berlin May 19-23http://www.djaa.com/kcpm-05201401
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
About
David Anderson is a thought leader in managing effective software teams. He leads a training, consulting, publishing and event planning business dedicated to developing, promoting and implementing sustainable evolutionary…He has 30 years experience in the high technology industry starting with computer games in the early 1980’s. He has led software teams delivering superior productivity and quality using innovative agile methods at large companies such as Sprint and Motorola.David is the pioneer of the Kanban Method an agile and evolutionary approach to change. His latest book, published in June 2012, is, Lessons in Agile Management – On the Road to Kanban.David leads Lean Kanban Inc., a global management training, events & publishing business dedicated to offering high quality, innovative, modern management training for the creative knowledge worker industries of the 21st Century.
dja@leankanban.com @lkuceo Agile Days Moscow 2014, Copyright Lean Kanban Inc.
Acknowledgements
Hakan Forss of Avega Group in Stockholm has been instrumental in defining the Kanban Kata and evangelizing its importance as part of a Kaizen culture.
Real options & the optimal exercise point as an improvement over “last responsible moment” emerged from discussions with Chris Matts, Olav Maassen and Julian Everett around 2009.
The inherent need for evolutionary capability that enables organizational adaptation was inspired by the work of Dave Snowden.
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