Do you want to improve end-to-end feature lead-time? It is not a question of working harder. It is a question of first removing the feature wait time, the red bricks.
If you would build an end-to-end timeline for your features using red, yellow and green LEGO bricks. Where:
• Red = Non value adding waiting time
• Yellow = Non value adding activates required due to how work is organized
• Green = Value adding activities of real customer value
How would your feature end-to-end timeline look like? In most cases, you will have less than 20% green and yellow bricks and more the 80% red bricks.
In this session, you will be learn how flow efficiency can be drastically improved in a concrete example.
You will see how a Swedish Breast Cancer Clinic drastically improved flow efficiency and reduced patient wait time by focusing on removing the red and yellow bricks.
We will take a close look at the three laws that define the performance of all processes:
• Little’s Law
• Law of bottlenecks
• Law of variation
By understanding how the three laws governs the performance of your processes, we can look at ways to improve your flow efficiency.
When time is gone, it is gone. Time to start removing the red and yellow bricks
3. Good work!
Keep it up.
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
4. Everyone is busy but
we seem to be very
slow getting things
to our customers!
How are
we doing?
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
6. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
7. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
8. I’m a huge LEGO fan!
DISCLAIMER
LEGO® is a trademark of the LEGO Group,
which does not sponsor, authorize or
endorse this presentation.
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
9. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
13. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
14. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
15. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
16. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
17. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
18. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
19. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
20. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
21. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
22. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
23. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
24. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
25. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
26. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
27. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
28. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
29. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
30. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
31. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
32. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
33. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
34. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
35. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
36. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
37. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
38. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
39. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
40. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
41. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
42. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
43. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
44. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
45. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
46. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
47. > 1000 hours < 60 hours
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48. A Question of focus
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49. Strategy to increase utilization
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50. Strategy to fulfill needs a.s.a.p.
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
51. Niklas Modig
Stockholm School of Economics
@LeanOnMyself
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53. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
54. Strategy to fulfill needs a.s.a.p.
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
55. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
56. Low utilization
Short lead-times
Low Work-In-Process
Small batches
Focus on customer value
Little waiting for flow unit
Fast to respond to change
High utilization
Long lead-times
High Work-In-Process
Large batches
Focus on unit cost
Lots of waiting for flow unit
Slow to respond to change
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
57. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
58. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
59. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
60. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
61. Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
62. Which process is most expensive?
≥
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64. Flow efficiency
Green + Yellow
Green + Yellow + Red
Flow efficiency =
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
65. Flow efficiency in numbers
Usually 1-5% value added of
total lead-time
20% value added is a high
number
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
66. How many
and
bricks do you have?
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67. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
68. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
69. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
70. How to improve
Flow Efficiency?
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
71. Start with the bricks
Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
72. Non value adding
bricks: Wait time
Waiting in a queue
Waiting for a decision
Waiting on dependency
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
73. Then take on the bricks
Non value adding: Wait time
Non value adding: Required waste
Value adding: Actual demand
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
74. Non value adding
bricks: Required waste
Over processing
Backlog maintenance
Reporting and status meetings
Rework due to
Defects
Handovers
Long lead-times
Lack of understanding the requirements
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
82. Create a shared and visual understanding of
End-To-End flow
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
83.
84. We need to
Shift our focus
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86. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
87. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
88. Blockers and Impediments
are like Gold and Gems
for improving flow
in your process
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
89. The three ”laws”
Little’s Law
Law of bottlenecks
Law of variation
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90. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
91. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
92. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
93. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
113. The three ”laws”
Little’s Law
Law of bottlenecks
Law of variation
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
114. Law of Bottlenecks
Every process has one
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
115. Capacity = 6 Capacity = 4 Capacity = 6
Throughput = 4
You can’t go faster than your bottleneck
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
116. Equal too or greater capacity in front
You can go as fast as your bottleneck
You can’t go faster than your bottleneck
Capacity => 4 Capacity = 4 Capacity > 4
Throughput = 4
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
117. Full use of a higher capacity in front of the bottleneck will make
lead-time go up
You can’t go faster than your bottleneck
Capacity = 6 Capacity = 4 Capacity > 4
Throughput = 4
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
118. Equal to or greater capacity after
You can go as fast as your bottleneck
You can’t go faster than your bottleneck
Capacity => 4 Capacity = 4 Capacity >= 4
Throughput = 4
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
119. Higher capacity after the bottleneck will not improve throughput
over time
You can’t go faster than your bottleneck
Capacity => 4 Capacity = 4 Capacity >= 4
Throughput = 4
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
120. Process stage without WIP Limits
Demand Stage 1 Stage 2 Stage 3
WIP Limit WIP Limit
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121. Process stages without WIP Limits
Demand Stage 1 Stage 2 Stage 3
WIP Limit WIP Limit
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122. Demand Stage 1 Stage 2 Stage 3
WIP Limit WIP Limit
Process stages without WIP Limits
Nobackpressure
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123. Demand Stage 1 Stage 2 Stage 3
WIP Limit WIP Limit
Stage 2
Set WIP Limits on every
process stage!
Backpressure
WIP Limit
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
124. Setting first WIP Limits
Low Organizational friction High
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
125. Adjust WIP 20-30%
Identify the problems
Resolve the problems
Stabilize processRepeat
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
126. The three ”laws”
Little’s Law
Law of bottlenecks
Law of variation
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
131. Common sources of variation
Large batches
Ad-hoc processes
Swarming on work
Load balancing processes
Uneven arrival rate of work
Uneven work duration
Uneven availability of capacity
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
132. Reduce unnecessary
process variation
Use a mixed feature portfolio
Remove iterations, or reduce length
Avoid Ad-hoc processes
Swarming on work
Loadbalancing processes
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
133. Time
Capability
100%
Utilization
planed at 70%
Plan for less than 100% utilization
Absorbs unwanted variation
Inspired by Mårten Pehrson
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
134. “A bad system will beat a
good person every time.”
W. Edwards Deming
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
135. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
136. Q & AHåkan Forss
Mail: hakan.forss@king.se
Twitter: @hakanforss
Blog: http://hakanforss.wordpress.com
Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com