Suhail Iqbal, PE, PfMP, PgMP, PMP, PMI-PBA, PMI-SP, PMI-RMP, PMI-ACP, CAPM, CIPM, FAAPM, MPM, MQM, CLC, CPRM, AAPM, ACB, ALB, AEC, SCT, ESMC, SPOC, SMC, SDC, PRINCE2 Practitioner, Certified Project Management Expert, MCTCEO SysComp International Private Limited, Pakistan.

Session Title: Agile – The Way ForwardLean-Agile (LeAgile) Project Management

Objective

To introduce a way forward for Lean, the Lean-Agile (LeAgile) Project Management for non-

convetional Industries.

Not only to highlight the positive need for adoption of agility in non-conventional industries but also an

attempt to marry it up with the lean.

Contents

– Introduction to Lean and Agile

– Lean Applied

– Possibility of Agility in Non-Conventional Industries

– Can Lean and Agile be used in unison?

– Lean-Agile (LeAgile) Project Management Proposed.

Questions Addressed

1. What is LeAgile? Does this term exist already or we just invented it?

2. What is the biggest challenge in introducing agile in non-concentional industries?

3. How do we propose lean and agile approaches can be used in unison?

4. Is there any existing methodology or approach which closely resembles the idea of LeAgile in non-conventional industries?

5. Will the existence of Lean facilitate the acceptance of LeAgile?

Introduction to Lean and Agile

‘Lean’ and ‘Agile’

– ‘Lean’ and ‘Agile’ - two separate approaches

– Some identified relationship

– Parallel development paths

– Some common features and intrusions

– Sometimes mistaken to be the same.

– Both approaches - distinct and unique in purpose

‘Lean’ and ‘Agile’ – What to do?

– Find a way how to best utilize them together.

– Find the similarities and differences

– Try to have the best of the both worlds.

‘Lean’ and ‘Agile’ Non-Conventional Industries

– Difficult to draw a parallel or clear distinction

– Tangible Deliverables

– More organized and well managed industries

– still causes a lot of waste

– already realised the need to be lean,

– Concept like lean construction or supply chain are already accepted.

– Clearer objectives and static scope

– Assumed “agile is not for us”

‘Lean’ and ‘Agile’ - LeAgile

– If lean and agile can work together in software and other industries, then why not others?

– Other projects may be few but command larger budgets.

– Greatest benefits to reap if agile and lean can work for them together.

‘Lean’ and ‘Agile’ – Diverse Views

– Many researchers and diverse views – Agile - as a way to do things within the overall perspective

of lean

– Some debate they cannot work together at all. We will try to establish

– Reinforce the commonalities of both

– Smoothen out the jagged edges

– Present a fit for non-conventional industries.

– Marriage of convenience - LeAgile

Definitions – Lean is Value

– “Lean is an approach that identifies the value inherent in specific products, identifies the value stream for each product, supports the flow of value, lets the customer pull value from the producer, and pursues perfection.”

(Karkukly, 2013)

Definitions – LeanDoing more with less

– “Lean is doing more with less. Use the least amount of effort, energy, equipment, time, facility space, materials, and capital – while giving customers exactly what they want.”

(Womack & Jones, 2008)

Definitions - Agile

– Agility is the ability to both create and respond to change in order to profit in a turbulent business environment.

– Agility is the ability to balance flexibility and stability.

(Highsmith, 2002)

Definitions – LeAgile (Lacher View)

– Lacher and Bodamer (2009) – Agility in Project Management.

– Agile in the perspective of lean.

– Lacher and Varisco (2008) – Agile is the implementation of Lean Thinking.

– Lean-Agile is a combination of Lean Thinking and Agile disciplines.

– Lean is the ‘What’ and Agile is the ‘How’.

Lean Organization – Exact and Precise

– Most economical usage of resources - Just-In-Time (JIT).

– Manages and maintains flow of all its materials and resources

– Eliminates all chances of waste.

– Reach a level of precision.

Lean Organization Managing Projects

– Work and only the work required contributing directly to the organizational objectives.

– All such effort leading to waste is not taken up.

– Highly proactive and experienced with processes.

– Be able to forecast and plan very soundly.

Agile Projects

– Focus is not on accuracy or precision but on speed and flexibility.

– How quickly team can react to the changing requirements

– Be able to complete the job in less than expected times.

Agile – How it works?

– Distributes whole work in smaller chunks.– Concentrates on one piece at a time.– Remaining work is open to suggestion and

change. – Cost effective response to customer

demand.– Based on flexibility of design, production

and delivery. – Projects with constantly changing scopes. – Delivers the product faster. – Reduces the development cycle

considerably.

‘Lean’ and ‘Agile’ – Foci & Scope

– Lean focuses on reducing waste,

– Agile focuses on being alert to opportunities effecting changes in a fast manner.

– Agile is for projects with constantly changing scope.

– Lean needs to be very well-planned right from the outset, so scope must be as clear and static as possible.

History of Lean and Agile

Exhibit 1 – History of Lean and Agile (Copyright Ennova 2011, Friday, 23 September 2011)

1960 - JIT by Taiichi Ohno 1982 - Lean as a formal approach 1990 - Lean in quality and supply-chain 1993 - Effective scheduling for construction 1998 - Repetitive scheduling method / LBMS

1999 – LeAgile for Supply Chain Management

1950 - Line of Balance (LoB), a visual method of construction planning

2000 - Last Planner System

2011 – Agile and Lean for Construction (ENNOVA)

‘Lean’ and ‘Agile’ Similarities & Differences

Lean Agile

Primarily a philosophy A conceptual framework

Focus on customer value Focus on customer satisfaction

Focus on eliminating waste Focus on simplicity

Integrated and collaborative teams Self-Organizing teams

Daily and weekly planning Close and daily cooperation between all parties

Focus on improving task reliability and reduction of overall duration

Focus on speed and adaption to changing circumstances

Maximising profitability by reducing unit cost

Profitable sales maximisation

Exhibit 2 – Comparison of Lean and Agile (Copyright JACOBS)

Lean Applied

Lean Principles Task Groupings

1. Specify value

2. Identify the value stream

3. Flow

4. Pull

5. PerfectionWomack & Jones (2008)

• Value-added

• Enablers

• Waste

MacAdam (2009) & Moujib (2007)

Seven Types of Lean Waste

– Over Production Waste

– Waiting Waste

– Transportation or Conveyance Waste

– Over Processing Waste

– Inventory Waste

– Motion Waste

– Correction or Defects (Repair or Rework) Waste

Value & Value Stream

– Value is defined as a capability provided to a customer at the right time at an appropriate price, as defined in each case by the customer

(Womack & Jones, 1996, p. 353)

– Value Stream is defined as all the actions, both value added and non-value added, currently required to bring a product from raw material to the arms of the customer or through the design flow from concept to launch. (Morgan, 2002)

Value Flow

– Make the value flow– Differentiate between the value-adding activities,

enablers and non-value adding activities– By eliminating non-value adding activities we

eliminate waste. – Once value is created, it is not delivered to

customer until and unless customer needs it and pulls it on JIT principle.

– The whole process is then perfected by continuous improvement.

Possibility of Agility in Non-Concentional Industries

Agile Manifesto (2001) Software Industry

– Individuals and interactions over processes and tools

– Working software over comprehensive documentation

– Customer collaboration over contract negotiation

– Responding to change over following a plan

Agile Manifesto (2001)

– Created for software industry

– Adopted by several other industries

– Possibility for Non-Conventional Industries– Change ‘software’ to ‘product’ in 2nd point

Agile Manifesto – How Can It Apply?Non-Conventional IndustriesIndividuals and interactions over processes and tools– Processes and tools are valued more and status quo

maintained.

– Still non-convemtional industries evolves, innovates and adapt.

– What if we consciously promote creativity

– Give initiatives to team and stakeholders to innovate.

– LBMS where a conventional schedule may not be workable for all locations, plan separately for each location.

– Start prioritizing individuals and interactions over processes and tools.

Agile Manifesto – How Can It Apply? Non-Conventional IndustriesWorking product over comprehensive documentation.

– Needs a workable product but perfection sought.

– Results in gold-plating and exceeding the basic specification.

– If not for customer’s changing requirement, we are causing waste and are not even meeting the target of being lean.

– In LP system, the schedule is divided into five layers, only first being mandatory, and are not detailed or restrictive.

– LPS has already taught us to reduce documentation and take to the last planner level.

Agile Manifesto – How Can It Apply? Non-Conventional IndustriesCustomer collaboration over contract negotiation.

– Contract is the binding force in any construction project.

– Engineers will never agree to give priority to customer collaboration over the contract.

– Contract revisions and changes, anyways, still occur.

– Why can’t we remove this barrier and work as partners?

– In LP system, last planner improves his bottom-level plan due to feedback of the customer.

Agile Manifesto – How Can It Apply? Non-Conventional IndustriesResponding to change over following a plan.

– We must be ready to respond to change as and when it is needed.

– Make our phases smaller in size and iterative in nature.

– In LP system, Weekly Plans are prepared and collaboration with customer is promoted.

Can Lean and Agile be used in unison?

‘LPS’ and ‘LBMS’Common Characteristics

– Both systems are lean by nature

– Both focus on decreasing waste and increasing productivity.

‘LPS’ and ‘Agile’Similarities

– LPS uses approach similar to agile

– Last Planner is the person actually doing the work or the lowest level supervisor.

– The planning is not centric and involvement of this last planner is essential.

– This makes the planning a collaborative effort and better commitments are achieved.

‘LBMS’ and ‘Agile’Similarities

– LBMS is more of a technical system in which work flow lines are created for different locations

– Overall plan may be governed by traditional CPM and PERT methods.

– LBMS makes the buffers of critical chain explicit

– LBMS forecasts future performance based on statistical projections.

Last Planner System - Phases

Exhibit 3 – Scheduling Levels in Last Planner (Copyright Ennova 2011, Friday, 23 September 2011)

‘LPS Phases’ and ‘Agile’Phases

– LPS interacts with the customer like Agile and adjusts and improves the plan based on the feedback.

– Master schedule is just to define the key milestones.

– Phase Schedules are slightly more detailed explicitly defining the handoffs from one phase to the other.

– Only these two levels are mandatory.

‘LPS Phases’ and ‘Agile’Phases

– Look-Ahead Schedule is optional

– If you have time to forecast or if anything has to be re-planned, we can use this level.

– Last two levels have similarity to Kanban as well as Agile.

– Weekly Work Plan may be considered like an agile iteration

– Progress Tracking may be the feedback loop with the customer,

‘LPS Phases’ and ‘Kanban’Phases

– Weekly Work plan is something we intend TO DO.

– Progress Tracking deals with DOING and DONE of Kanban.

– The missing link between Lean and Agile is Kanban which has the capacity to bind them together into LeAgile.

Last Planner

Exhibit 4 – Last Planner System(Copyright Ennova 2011, Friday, 23 September 2011)

Lean-Agile (LeAgile) Proposed

Any Existence of Proposed Application

– No proposed application exists so far

– Discussion to stir up minds to the possibility of LeAgile

– Some research and white papers exist.

– Lean does exist.

– LeAgility is not a far-fetched idea.

– LPS and LBMS already hold the key to LeAgility.

Expected Benefits of LeAgility

– Opposition expected from non-conventional industry

– Opening the floodgates of new possibilities

– Reduce waste in non-conventional projects

– Make them much more efficient and profitable

– Can be fast and flexile

– Saving enormously on time and cost

– Satisfy our stakeholders and

– Be able to sell more

– Making even more profits

LeAgile Supply Chain Management

Leagile Construction System (LCS)

– Name: Suhail Iqbal

– Web: http://www.syscompk.com

– Email: suhail@syscompk.com

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