There is More To Lean Than You KnowAgile Australia 2015TJ Gokcen
AIM and Agenda
1the lean journey
AIM and AGENDA
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the lean journey
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lean concepts
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lean concepts
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profound knowledge
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lean concepts
lean tools
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the lean journey
AIM and AGENDA
the lean journey
1500Venice Arsenal,
Italy
Mass producing methods for building warships.
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Methods of mass production At the peak, they produced almost one ship a day with 16,000 people
1822U.S.A.
Automatic Production of Complex Parts
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Simple parts like rope blocks for ships with no manual labor
1890U.S.A.
The Principles ofScientific Management
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Frederick Taylor Analyze work in search if the best way to do a job Introduced standard cost accounting to allocate overhead for machine and labor hours
1896Japan
Toyoda Power Loom
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Automatic stopping device if thread is broken (Jidokha)
1913U.S.A.
Ford T-Model
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True interchangeable parts with mass production of autos Factory is automated by conveyors and fabrication steps are completed in “process villages”.
1924Japan
Toyoda Automatic Loom
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Zero-time shuttle changeover so the loom can run continuously.
1930Germany
Takt Time
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The purpose of takt time is to precisely match production with demand If factory operates 24 hours-a-day and customer demand is 24, then takt time is 1 hour. Also applied to internal customers Takt is German for a precise interval of time such as a musical meter Toyota typically reviews the takt time for a process every month, with a tweaking review every 10 days
1930U.S.A.
Statistics
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Walter A Shewart Using statistical approach in management Inventor of Shewhart Cycle (we will touch that later) Inventor of Statistical Control Charts
1945U.S.A.
Supermarkets : JIT
1950U.S.A.
Father of Quality
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Dr. W Edwards Deming Went to Japan after WWII to help them with their industry Known as the “guy who made Japan” Improved Shewhart Cycle that became PDSA Cycle which was the basis of Kaizen Improved Statistical Control Charts
1960Japan
Toyota Production System
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Building on Dr. Deming’s ideas, Toyota comes up with TPS
1979Japan
Toyota Production System – The Book
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Taiichi Ohno publishes TPS
1989U.S.A.
Lean – John Krafcik, MIT
lean concepts
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=> What is Lean?
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What is Lean? a holistic and sustainable approach to using less of everything to give you more. => What does less of everything mean?
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What does less of everything mean? Less Waste Shorter Cycle times Fewer suppliers Less Bureaucracy =>But also means more
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But also means more More respect More employee knowledge More communication More agility More capability More productivity => Leads to satisfied customers
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But the most important More value to the customer More satisfied customers => People are the most valuable assets a company can have
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People are the most valuable assets a company can have They are more important than tools and fixtures, equipment, material, or capital. => Then there is the concept of value
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Value Worth of something. That something can be goods, services or both. The worth can be expressed in terms of money, an exchange, a utility, a merit etc. Who determines the value? Customers Value is not obsolete – it does not occur in isolation
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Value is in the interactions of the components. Think of your mobile phone: By itself, no matter how great your phone is, it does not bring you value The value is determined by; electricity the communications network system The websites you visit and their ability The email system The internet Think of value in a holistic way => And then there is waste. What is waste?
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Waste Anything that does not add value But more complicated than that Google free-cafeteria: does it add value or is it a waste? Once again nothing is isolated and the interactions determine the value Not all waste-looking activities are wastes
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Admission process in the hospital may seem like a waste However, without that we may not know about patient history Which leads to better treatment Therefore it adds value But that does not mean we cannot improve it. Chances are there is lot of waste in that process. => To prevent waste, Lean has another concept: Just In Time
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Just in Time Make or get only what you need, when you need it and in the amount you need it Applies to both materials and information Synchronize with customer demands by Responding to change Standardizing work Creating a continuous flow The pace of producing value is called takt time => For JIT to work, you need a pull system, so you can pull what you need exactly when you need it
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Push System Push System is where the managers push work to employees Pull system Inspired by supermarkets Tags to show product info Empty space is a signal – a “Kanban” - to alert the workers that new product is needed We do this for our own fridge everyday too In software development the Kanban Method is an example of a pull system
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Pull System vs Push System Pull system is where the employee pulls the next work item in backlog in a push system they are given the work The initiative lies with the employee in a push system, the boss determines what needs to be worked on next as well as tooling etc. So is the responsibility In a push system, the responsibility is still with the employee even though they did not choose the tooling, architecture etc. Pull systems work on trust Push Systems do not really because if they did they would give the employee more control => Next we have on our concepts list is something called the Value Stream
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Value Stream Mapping the current value producing state of your processes Helps you look at the big picture Helps you see interactions Always from the customer’s perspective Start from the end – with the consumer’s view End with sources of raw material and labor Shows how much time is added or wasted to deliver the value This customer may not be the end user. It may be another department/branch/retail shop in your organization
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Think of the value added stream: parcel delivery overnight Pick-up using the right trucks, otherwise it will be a waste Delivery to a sorting facility Sort items Delivery to airport (if need be) Catching the right plane Pickup from plane and deliver to the destination sorting facility Sort items Get correct truck that is going out to the correct area Deliver In perfect condition Here is an example…
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Here is what a Value Stream Map looks like. There are 2 stages to a VSM Current State Future State Through Continual Improvement, you try to achieve the results you are after => Whenever you have a process you create waste
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Whenever you have a process You are creating waste Opportunity to become lean-er => So, what is waste? How do we define waste?
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Waste anything that does not improve the quality of the product does not reduce the amount of time and effort it takes to produce the product does not provide real value to the customer Process bottleneck is a huge waste => In order to avoid waste, Lean has what we call 8 deadly diseases (it is 7 originally, 8th is our addition)
Defective Production
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Extra costs incurred reworking the part, rescheduling the production, labor time, loss of productivity and process overload. Bugs creeping into production. Leads to low quality customer perception, the longer it takes to attend to it, the worse.
Overproduction
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Producing more or faster than required or demanded. Writing more code or functionality than required. A good example is the Standish Chaos Report
Waiting
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Whenever goods are not in transport or being processed, they are waiting. A large part of an individual product's life is spent waiting to be worked on. Delays in starting a project, delays in staffing, delays due to excessive requirements documentation, reviews, approvals, testing and deployment. A Kanban board would make the waste and waiting transparent and highlight the problematic areas in your process. Columns like “Dev Done” or “Ready for Test” highlight waste and can contribute to higher takt times
Neglected Talent
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Take advantage of your team’s skillset. Know your team and what they can and cannot do.
Transportation
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Transportation does not make any transformation to the product that the consumer is willing to pay for. Task switching, context switching, hand offs, bringing in more developers to “speed up” development. Code branches, having to merge code branches and lack of continuous deployment (where applicable)
Inventory
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Having stored raw materials, work in progress or finished goods that has not been demanded by the customer. Functions and/or methods (“code”) that are not being referenced or used by any other function or method.
Motion
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Damage that the production process inflicts on the entity that creates the product. For e.g. wear and tear, injuries of workers etc. Finding information. From business consultant, to sales department, to project manager or owner.
Excessive Processing
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More work is done on a piece than is required by the customer. More precise, complex, higher quality than required. Extra processing steps and functionality. Extra paperwork may be required but it does not mean it adds value. Inefficient code => So let’s recap these “diseases”
=> Now let’s take a look at some of the lean tools: The first one is something called 5S
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5S Comes from Japanese words but they have English translations Seiri, Seiton, Seiso, Seiketsu, Shitsuke (in case someone wants to know) Put simply, organizing your workplace so there is no waste (or make waste visible) Finding notes from that last meeting Finding requirements for that new server Get rid of clutter in workplace and your processes Or any other activity that makes you waste time Applicable to individual as well as organization
Sort
Straighten
ShineStandardize
Sustain
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Sort Determine what’s needed and what’s not : Legacy Code, commented code (that’s why we use Source Code Control) Straighten Arrange all necessary items so they can be easily selected for use: Separate your layers Shine Clean your work area: Allow time for refactoring, clean up code For manufacturing: helps to see leaks and makes maintenance easier Apply to software development: write cleaner code, tests, easier to see leaks just as manufacturing does Have an organized desk. Too much clutter == disaster
Sort
Straighten
ShineStandardize
Sustain
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Standardize Maintain orderliness. Maintain everything in order and according to its standard.: Have a coding standard in place Every process has a standard. Sustain Create new habits: Get into habit of doing these This step is the most common step of failures => Safety (if included called 6S)
Sort
Straighten
Shine
Standardize
Sustain
Safety
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Safety (if included called 6S) Workplace safety: No naked cables lying around There is debate if including it here undermines its value => Security (if included called 7S)
Sort
Straighten
Shine
StandardizeSustain
Safety
Security
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Security (if included called 7S) (total security management – software security risk management) Developing and implementing comprehensive risk management and security practices for a firm’s entire value chain => Moving on from 5S, there is also something called A3 Thinking
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A3 Thinking Putting a problem on an A-3 sized paper Different templates, best to come up with your own template which makes sense to you Basically; What is the problem What is the current state What is the root cause What are the actions to resolve this issue How do we measure the outcome How to standardize so it does not happen again => And then comes the one that we have seen at the history of lean: The Statistical Control Chart
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Statistical Control Chart Using statistics to understand processes A process is either in or out of statistical control Displays value of some processes or quality characteristics over time If the value is between upper and lower limits, then it is under control If not, then it is a special cause for variation and needs to be further analyzed All of the values are plotted as oppose to running average values School bus example if time permits => We then move on to what is called PDSA Cycles and is the basis of Kaizen.
PDSA Cycle
Do
StudyAct
Plan
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Plan What are you trying to accomplish? Plan for that aim Do Implement the plan Study Study the results Act Make adjustments and standardize. Act according to the results of the study Trap: Standardizing: do not try to standardize things that do not standardize well But continuous deployment can be => So, with all these concepts and tools at your disposal
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Just doing your best is not enough You need to make good decisions => And for that you need to have profound knowledge
profound knowledge
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=> So, how do we get this Profound Knowledge? It is a big topic and from dr. Deming, but to complete the whole picture, let’s take a look at it very briefly
System of Profound Knowledge
Appreciation for a system
Appreciation for a system
Knowledgeabout variation
System of Profound Knowledge
Appreciation for a system
Knowledgeabout variation
Theory ofknowledge
System of Profound Knowledge
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Management to test its opinions, theories, hypotheses, hunches and beliefs against data to truly understand what is going on and learn what is necessary to improve the situation. Learning needs to be continual and organization-wide. Theories need to be developed, applied and tested to advance knowledge in a systematic fashion.
Appreciation for a system
Knowledgeabout variation
Theory ofknowledge
Psychology
System of Profound Knowledge
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Through this system, one acquires profound knowledge which leads to better decision making.
applications
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=> So, how do we use, for example, PDSA Cycles in a software project?
- Aim of the project- Feature List- Infrastructure, Design- Predictions
- Develop- Deploy
- Outcome vs Aim- Outcome vs Prediction- Study the process
- Rework or Deploy- Change Process, Aim or Predictions
Soft
war
e Pr
ojec
t
Do
StudyAct
Plan
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Plan Aim of the project. What are we trying to accomplish? Feature list Design, infrastructure Predictions: What do you want the outcome to be and what impact are you expecting to see Do Develop Deploy Build Study Outcome of the project against the initial aim The process : what worked and what did not in the whole project Act According to Study, if the outcome is not aligned with the initial aim, rework Take steps into changing the development process for the future If all good, go live => Now let’s take a look at what the features PDSA Cycle would look like
- Aim of the feature- Acceptance criteria
- TDD, BDD- Coding
- Tests- Outcome vs Aim- Outcome vs Prediction- Process
- Deploy- Rework- Change Process, Aim or Predictions
Soft
war
e Fe
atur
es
Do
StudyAct
Plan
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Plan Aim of the feature Get the highest priority item (pull) Devise a plan according to the acceptance criteria Acceptance criteria is the predicted outcome Add any diagrams, prototypes etc. Do Test Driven Development, Behavior Driven Development Code Study Tests Is it inline with the aim of the feature? Is the result inline with the prediction? (acceptance criteria) Is the development process effective? Act Deploy Deploy this feature Move to the next highest priority item Rework Until it is inline with the initial plan and aim => What big software developers use lean?
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Toyota, BMW, Mercedes, Honda, Nissan Software company In a hybrid car, half of the cost is software Lexus contains 14 million lines of code, comparable to banking and airplane software systems Moving towards more Agile software development (some are waterfall) but in a lean way Patiently and studying the results every step of the way Agile is not the goal itself
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Leaving you with these thoughts: Lean and Agile are not the goal Neither using Scrum or Kanban or Scrumban They are all different ways of providing value and innovation to the customer which is the main goal Study your processes: A bad process will always beat down a good person Get rid of waste Limit Work in Progress Do not follow any methods blindly Understand the philosophy behind them and understand your environment Find your own way Copycat approach does not work There are no silver bullets Finally; Strongly urge you to look at Dr. Deming’s ideas. You will find a true and proven hidden gem there. 5S: Seiri, Seiton, Seiso, Seiketsu, Shitsuke (in case someone wants to know)