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© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL1
Achieving Execution Excellence with Kanban & TOC –
Case study from software support (Managed Services)
N. Balaji Ganesh,
Sirisha Somanchi
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL2
Achieving Execution Excellence
with Kanban & TOC –
Case study from software support
(Managed Services)
N. Balaji Ganesh,
Sirisha Somanchi
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL3
Agenda
Background
Challenges
Implementation
Benefits
• Why Change?
• Identifying gaps / Surfacing Bottlenecks
• Strategies to overcome bottlenecks
• Implementation plan
• Outcomes
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL4
Why Change?
Team
Organization
• High effort per ticket (2.2 P.Ds)
• Cost of Delivery reduction –
Productivity improvement
Customer
Enhance throughput of “back office”
tickets resolution from 25% to 50%
* From David Anderson’s book – Kanban (Successful
Evolutionary Change for your technology Business)
• Work throughput not meeting
customer expectations
• Sustain / improve end user
experience while reducing lead
times for work items
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL5
Challenges
Shared team -
Capacity constraints
High WIP
Business triggers for
enhanced throughput
Bottlenecks to flow –
high rework & wait time
Lack of Work
load leveling
No defined policies to
streamline work flow /
task prioritization
What to improve next ?
Uneven demand
High variation in cycle
time and effort per ticket
Multi-tasking across
Tickets, CRs, Projects
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL6
Why Kanban
http://kosmothink.com/2010/12/31/the-uncertainty-principal-or-how-to-choose-the-right-methodology/
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL7
Essence of Kanban
Little’s law – Work in progress lead time
Pull - Signal from upstream to downstream process
to start work.
Only when the tide goes out do you
discover who's been swimming naked.
Warren Buffett
Stop Starting, Start Finishing.
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL8
Focus & Strategy
• Lean awareness
• Optimize Effort
• Reduce Cycle
time
• Visualize Work flow
• Demand Management
• Capacity planning
• Standardization
• Retrospective &
feedback (PDCA)
• Identify bottle necks
to flow - Limit WIP
(Kanban),
• Reduce Multi-tasking
• Analyze CFDs
• Team Workshops on lean, Kanban and TOC
• Games to demonstrate benefits of smaller batch sizes
• Participative decision making and fostering collaboration
• Core team - Action plans and timelines for implementation rigor
• Visual feedback loop
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL9
TOC – How does it fit
• Visualize value stream
• Go See Yourself
• Knowledge
Management
• Standardization –
Policies / Definitions
• Work load levelling
Identify
Exploit
Subordinate
Repeat
Elevate
• WIP Limit
• CFD
• Buffers
• Cross Skilling
• Mistake Proofing
• Problem Management
• Automation
• PDCA
• Back to
“Identify”
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL10
Kanban – Execution Flow
P
D
D
C
A
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL11
Bottleneck What to Change How to change
Capacity < Inflow • Streamline demand
• Address capacity gaps in
high demand areas
• Problem Management
• Prioritization Policies / WIP limits
• Cross skilling
High WIP in
functional testing
• Improve Dependency /
Test Setup Management
• Reduce wait times
• Marshal additional
resources
• Limit upstream WIP
• Identified and communicated dependencies in
planning phase
• Automated test environment scheduling and
restoration
• Cross functional team (CFT) - Developers /
Analysts for FT.
High WIP in
Analysis phase
• Competency
Improvement
• Reduce wait times
• Work allocation
• Monitor and Expedite “Wait for Info” cases
• Dedicated Resources / Time slicing policies
• On the job mentoring / training
• Right task for the right person
• Translator for non-English language tickets
Failure load • Minimize hand-offs
• Optimal Work allocation
• Improve upstream
quality
• Standardize “Definition of Done” (DoD) /
Acceptance Criteria for CRs / Complexity
definitions
• Allocated work based on skill and complexity
• Implemented analysis / code quality
improvements, gating reviews, CFT
Improving flow
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL12
Dealing with individual variations
Individual
Variation
Time on
Floor
Analysis
Knowledge
Management
Collaboration -
pairing
WIP limits
Training /
Mentoring
Cross
skillingTime
slicing
Work load
levelling
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL13
Visualizing Work Flow
I hear and I forget.
I see and I remember.
I do and I understand.
Confucius
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL14
Visualizing Work flow
Legend
MFG
PM&S
FICO
SCM
Project CR Slip Template
Project Name
Project Ticket #
RICEF
EM Effort in Days
Wish Date
Functional Cons Name
Assigned to (To be Filled by Allocator)
Slip - ZDHF/SLFN
Type ZDHF / SLFN
Ticket # APXXX
RICEF
Date of Assignment
Functional Cons Name
Assigned to (To be Filled by assignee)
Monthly CR Slip Template
Release Month
Release Ticket #
RICEF APXXX
EM Effort in Days
Wish Date
Functional Cons Name
Assigned to
Daily team huddles around the kanban board for 15-20 minutes.
3 questions asked to each person:
• What was done yesterday ?
• What is done today ?
• What are the bottlenecks and how can we resolve them ?
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL15
Cumulative Flow Diagram (Consolidated for all Work streams)
0
5
10
15
20
25
30
35
40
0
5
10
15
20
25
30
35
Release to
customer
Waiting for
information from
customer / third
party
• Monitor and identify WIP patterns
• Ask Why
• Brainstorm and resolve
• Go to step 1
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL16
• Typical reasons for variation were:
• Competency
• Complexity
• Waiting for information cases
• Functional testing delays
Visual charts for Y (resolution time) – maximum & average plotted separately for different
categories.
Week-wise performance and trends observed and analyzed from Dec 2014.
Visual Trend – Resolution Time (Correction Tickets)
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL17
Skill Matrix
• Training plan identified for skill gaps
• Internal training provided on Adobe forms and workflow
• On the job mentoring done through collaborative development
Consultant
UCF
Cleared
UCF Next
Level
Smart
Forms
Adobe
Forms Reports
Module
Pool
Enhance
ments
Interfaces
(In/Out) Conversion Workflow EDI/ALE OOPS WebDynpro
Team member 1ABAP 3.2 ABAP 4.1 1 2 4 3 4 3 3 1 0 0 0
Team member 2ABAP 2.2 ABAP 3.1 4 4 4 4 4 3 4 1 2 3 1
Team member 3ABAP 2.1 ABAP 2.2 1 1 4 3 4 2 4 0 2 1 0
Team member 4ABAP 1.1 ABAP 2.1 1 1 2 1 2 1 0 0 0 1 0
Team member 5ABAP 4.1 N/A 2 0 2 2 2 4 4 1 2 2 0
Team member 6ABAP 2.1 ABAP 2.2 3 1 3 2 3 2 0 0 1 3 2
Team member 7ABAP 2.2 ABAP 3.1 4 2 4 3 4 2 4 1 2 3 0
Team member 8ABAP 2.2 ABAP 3.2 4 2 4 3 4 3 4 1 2 3 0
Team member 9ABAP 4.1 N/A 3 2 4 3 3 4 4 4 3 3 1
Team member 10ABAP 4.1 N/A 3 2 4 2 4 4 4 2 3 2 1
Team member 11 N/A ABAP 2.1 2 2 4 2 3 2 2 0 0 0 0
Team member 12ABAP 2.1 ABAP 2.2 1 0 3 2 2 0 2 0 2 2 0
Team member 13ABAP 1.1 ABAP 3.1 3 1 4 3 4 3 3 2 3 2 1
Team member 14ABAP 2.1 ABAP 2.2 0 1 2 2 1 0 0 0 0 0 0
Team member 15ABAP 2.1 ABAP 2.2 1 0 2 1 1 0 0 0 0 1 0
Team member 16ABAP 2.1 ABAP 2.2 1 0 2 2 1 0 0 0 0 1 0
Team member 17ABAP 2.1 ABAP 2.2 1 1 2 1 1 0 0 1 1 1 1
Project Target 3 4 10 5 6 5 8 3 3 5 0
Current status 7 1 11 7 10 7 9 1 3 5 0
Target Date 31st Jan 31st Jan
Skills
None 0
Trained 1
Experienced 2
Proficient 3
Expert 4
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL18
Control Charts –Average Cycle Time
191715131197531
50
0
-50
Observation
In
div
idu
al
Va
lue
_X=20.2 _
X=13.1
UC L=80.8
UC L=27.4
LC L=-40.4
LC L=-1.2
31.503 21.848
191715131197531
80
60
40
20
0
Observation
Mo
vin
g R
an
ge
__MR=22.79
__MR=5.38
UC L=74.45
UC L=17.58
LC L=0
31.503 21.848
LC L=0
I-MR Chart of P3 Resolution time (Avg Days)
Control charts were used to monitor cycle
average and maximum cycle time for P2, P3
and P4 categories.
Out of control points were analyzed for
specific reasons and appropriate preventive /
corrective actions.
Observed improvement in average cycle
time for both P3 and P4 tickets
Cycle Time (Days) Before
(Wk 49 – 4)
After
(Wk 5 – 14)
P3 – Average 20.2 13.1
P4 - Average 13.9 9.23
1715131197531
30
20
10
0
-10
Observation
In
div
idu
al
Va
lue
_X=13.90 _
X=9.23
UC L=33.24
UC L=23.60
LC L=-5.45 LC L=-5.15
27.337 5.968
1715131197531
24
18
12
6
0
Observation
Mo
vin
g R
an
ge
__MR=7.27 __
MR=5.41
UC L=23.77
UC L=17.66
LC L=0 LC L=0
27.337 5.968
I-MR Chart of P4 Avg Days_1 by P4 Avg Days_1
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL19
Observed that process improvements are statistically significant when compared with pre-improvement stage.
Validation of Process Improvements
Before : Jul – Sep 2013
After: Mar – May 2014
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL20
Benefits – Productivity and Cycle time
Ticket resolution effort reduced by 62%
83.4% increase in throughput for “back office” tickets resolved with the same team size.
Cycle time reduction of:
16.54% for P2 tickets
35.14% for P3 tickets
33.59% for P4 tickets
Cost of delivery (Manpower costs as % of revenue) reduction from 36.8% to 25.1%.
Enhanced people engagement / end user experience
00.5
11.5
22.5
Trend Chart of Effort per ticket (p.days)
p-Days
22%
36%33%
29%36%
44% 43%50%205
231214 220
376380
425
326
50
100
150
200
250
300
350
400
450
500
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14
Pe
rce
nta
ge R
eso
luti
on
Month
BO Resolution Performance(Oct '13-May '14)
BO Contribution
# of Tickets in BO
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL21
Customer Delight – CSAT Improvement
Customer commendation – Customer commended the team for resolving 425 tickets from
offshore (BO) in April 2014 against 173 in July 2013.
Customer PCSAT improved to 6/7 from 5/7 in FY12-13 – Customer was impressed with the
implementation of lean during his visit and would like to carry forward these tenets back to his
team.
Annual CSAT survey - Continuous Improvement as Expectation1 with rating 6/7 and average
overall rating 6/7. % Satisfied (Top2 Box – rating 6 or 7) improved from 60% to 100%
Benefits passed on to the Customer – Additional throughput with same team size resulted in
annualized savings of 1.3 million USD
Customer renewed the contract 6 months in advance for 1 more year (earlier contract end date
was October 2014), extended contract value = 5.5 Mn USD ACV (from Nov’14 – Oct’15)
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL22
Control / Sustenance Plan
• Continued usage of
• Kanban board
• Daily huddle around the Kanban board – 3 questions
• Resolution effort per ticket – To be monitored and sustained at 0.9 – 1.0 p.days
• Trend Chart of cycle time – Max and Avg Resolution chart plots to be continued and
monitored / analyzed for any spikes and troughs.
• Continued Inflow vs capacity analysis / cross skilling as required
• Disseminate lessons learnt to the team.
• Monthly retrospectives
• Root Cause Analysis for any exceptions
• Tickets slipping SLAs
• High cycle time
• Failure load
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL23
Conclusion / Lessons Learnt
Visualize
Kanban
Board,
Swim
lanes
• Integrated Kanban
Board
• Due date
• Delay Indicators
• Zeigarnik effect
Flow
WIP
Limits
CFD
• WIP Patterns
• Surface bottlenecks
• Reduce hand-offs
• Streamline demand
Optimize
Lean
Kaizen
• Exploit, then
elevate
• Cross functional
teams
• Reduce failure load
• Enhance capability
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL24
References
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL25
Winning Team
© 2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL26
Thank You
Balaji Ganesh N
Sirisha Somanchi