So you’ve heard about this Kanban thing and want to know where to start, or maybe you’ve been using it for a while and you want to know where to go. In this hands-on workshop, we’ll start at the very beginning and teach you how to build a Value Stream Map and use that to define your initial Kanban and WIP limits. If these terms don’t make sense to you, then you need to come along for a fun interactive workshop. Learning Outcomes: * Value Stream Mapping (VSM): VSM is the (often overlooked) practice of defining the functional steps in common business processes and can be anything from IT to sales & marketing; it doesn’t matter. Attendees will learn how to model their business processes and create VSMs. * Process efficiencies: How to calculate your process efficiency, Value Add (VA) and Non-Value Add (NVA) time and why that’s important. In brief, your VA time is defined as the average time spent actively working on a task in the process, NVA is the average time spent between each process step and you can calculate your process efficiency by dividing your VA with your total time (that is VA+NVA). * Align your VSM to your Kanban: Track the flow of work through your VSM on your Kanban wall * Learn how to use your VSM, team size and process efficiency to calculate your initial WIP * Learn how to embed a culture of continuous improvement (Kaizen) through the use of retrospectives and common lean metrics

1. EvanLeybourn
STARTINGWITHVSM & KANBAN
Apracticalworkshoponvaluestreammapping&WIP
Starting with Value Stream Mapping and Kanban by Evan Leybourn is licensed under a
Creative Commons Attribution-ShareAlike 3.0 Australia License
<http://creativecommons.org/licenses/by-sa/3.0/au/>

2. Evan Leybourn
lean / agile business leader and author
Singapore
@eleybourn
http://theagiledirector.com
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3. waterfall
agile

4. Waterfall (Incrementing)
Agile (Iterating)
Images with thanks from Jeff Patton:

5. individualsand interactions
overprocessesandtools

6. working software
overcomprehensivedocumentation

7. customer collaboration
overcontractnegotiation

8. responding to change
overfollowingaplan

9. 1. eliminate waste
2. amplify learning
3. decide as late as possible
4. deliver as fast as possible
5. empower the team
6. build integrityin
7. see the whole

10. mura: unevenness
muri: overburden
muda: waste
understandingwaste

11. the7wastes
transport
inventory
motion
waiting
overproduction
over processing
defects

12. agilebusinessintelligence
part 2: flow

16. valuestreammapping
defines the ‘as-is’ steps & roles for each
task

17. valueadd(va)
time spent on outcomes for the
customer

18. non-valueadd(nva)
time spent between steps

20. 1. gather preliminary information
2. product quantity routing analysis
3. group customers and materials
4. sort product families by sequence
5. choose one value stream to start

21. 6. create an operations flow chart
7. walk the shop floor
8. collect the data
9. construct the vsm
10. summarize the data to get the big picture

22. identify, isolate and define the process

23. measure the average va and nva

24. calculate your process efficiency
= (va / va + nva)

25. what is kanban (かんばん)
workflow monitoring & visualisation

26. 1. visualise (card wall)
2. limit wip
3. manage flow
4. make policies explicit
5. feedback loops
6. improve collaboratively

27. kanbanifyyourvsm
- merge 0’s
- define board policies
- calculate wip

28. workinprogress
limit concurrent work and promote
workflow

29. min throughput is usually= team size
ifyourefficiencywas100%,howmany“x”couldyoudosimultaneously?

30. whatisyourtotalwip
total wip =
min throughput / efficiency
e.g. 7/55% ~= 13
Assuming a
software team a 7
(not pairing)

31. calculate%effortperstate
% effort =
state va / total va
e.g. 4 / 14.5 ~= 28%

32. proportionwipbystate
wip =
total wip * % effort
e.g. 13 * 28% ~= 4

33. proportionwipbystate
design wip = 2
develop wip = 7
test wip = 4
deploy wip = 0 = 1

34. “pull” all ready tasksto wip limit
pull

40. classofservice
expedite
fixed delivery
intangible class

41. tasks with upstreamdependencies
blocked

43. identify&resolvebottlenecks
through low wip limitsand strictprocess
flow

44. productionlevelling
constant rate of flow through all states

45. cycletime
average time to complete a task from
start

46. leadtime
average time to complete a task from
request

47. progressmonitoring
cumulative flow diagram
statistical run chart
burndown/up chart

48. plot delivered functionalityagainst
duration
effortvisualisation

49. cumulative flow diagram

50. bottleneck

51. poor flow

52. large wip

53. long lead time

54. plateau

55. plot cycle time against average
durationvisualisation

56. cycle time run charts

57. process trend

58. process shift

59. extreme process variation

60. effortvisualisation
plot delivered functionalityagainst
velocity

61. velocity
how much work can be delivered per
iteration

62. burnup chart

63. burndown chart

64. discovery

65. scope creep

66. plateau

67. too many features

68. tracking epics

69. inspectandadapt
kaizen (改善)

70. what went well?
retrospective/qualitycircle

71. addactionabletaskstothebacklog
what could be improved?

72. kaizenemphasises
teamwork, discipline & morale

73. 1. do not send defective products to the subsequent process
2. the subsequent process comes to withdraw only what is
needed
3. produce only the exact quantity withdrawn by the
subsequent process
4. equalise, or level, the production
5. kanban is a means to fine tuning
6. stabilize and rationalize the process

74. http://agilebusinessmanagement.o
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75. To learn more, check out
Directing the Agile Organisation
by Evan Leybourn
available at Amazon and all good book stores
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