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Lean Prod Development ProductCamp Vancouver Feb15
- 3. What We Need…. • Delivery at speed of change in our markets • Sufficient predictability • Alignment of efforts to maximize value to customers
- 4. Traditional Approach Development work is: • Largely invisible • Highly variable Organizations: • Centralize control • Fail to take an economic view • Pursue false economies of scale • Focus on people staying busy • Try to remove variability • Rely too heavily on plans • Ignore queues
- 5. Delay breeds waste! Knowledge is perishable • Developer & analyst discuss a requirement - A week old VS. - 3 months old • Tester discovers a bug - A day old VS. - A month old Quality suffers Motivation goes down Business opportunities get missed
- 6. Agile helps, but… • Dev team focused (suboptimal) • Coordination and scaling challenges • Underlying principles at odds with traditional management assumptions • Won’t solve all your problems • Can put stress on rest of organization • Focus on “velocity” can foster overload
- 7. 30% capacity
- 8. 60% capacity
- 9. 95% capacity
- 10. Highway Throughput 30% 60% 95% Avg speed: 65 MPH Throughput: ~400 per hour Avg speed: 65 MPH Throughput: ~800 per hour Avg speed: 20 MPH Throughput: ~500 per hour
- 11. Highway Throughput WSDOT Sep. 2006 Gray Book publication)
- 12. Highway Throughput Don Reinertsen. The Principles of Product Development Flow
- 13. Queues
- 14. Queue Behavior Don Reinertsen. The Principles of Product Development Flow
- 15. Queue Behavior Don Reinertsen. The Principles of Product Development Flow
- 16. Queue Behavior Don Reinertsen. The Principles of Product Development Flow
- 17. Impact of Queues Cycle time Risk Variability Overhead Feedback time Quality Motivation
- 18. Batch Size Don Reinertsen. The Principles of Product Development Flow
- 19. Batch Size Don Reinertsen. The Principles of Product Development Flow
- 20. Focus on Transaction Costs Don Reinertsen. The Principles of Product Development Flow
- 21. Limit WIP
- 22. Limit WIP
- 24. Limit Your WIP Kanban at Scale – A Siemens Success Story , InfoQ, Feb 28, 2014 http://www.infoq.com/articles/kanban-siemens-health-services#anch107610
- 25. Finding Leverage • Stop using oversized batches • Make work visible • Focus on managing queues – Capacity utilization is hard to control – Cycle time is a trailing indicator • Attack queues as they arise • Queues have a quantitative cost • Understand the tradeoffs
- 26. Constrain WIP at All Levels • Epics, MMFs – Eliminate excessive early elaboration – Drop items as you add new ones • Put WIP limits on all backlogs • Manage WIP of shared resources, experts
- 27. Take an Economic View • Understand full value chain • Quantify cost of delay • Don’t consider $ already spent • Watch the work product, not the worker
- 28. Take an Economic View • Influence small decisions • Quantify life-cycle profit impact of: – Product cost – Product value – Development expense – Cycle time – Risk
- 29. Manage Variability • Standardize where it makes sense – Automated testing – Continuous integration – Continuous deployment • Make batches roughly the same size • Include technical risk in prioritizing stories
- 30. Get Fast Feedback Don Reinertsen. The Principles of Product Development Flow
- 31. Use Cadence To… • Limit the accumulation of variance • Provide sufficient capacity margin to enable cadence • Make waiting times predictable • Enable small batch sizes • Reduce communication costs (i.e. meetings)
- 32. Synchronization Don Reinertsen. The Principles of Product Development Flow
- 33. Synchronization Don Reinertsen. The Principles of Product Development Flow
- 34. Summary • Understand your economics • Make your queues visible and control them • Create a process to exploit variability • Reduce your batch size • Control cycle time by controlling WIP – Attend to delays • Sequence work based on economics • Accelerate feedback with smaller batches • Push decision making down (where advisable)
- 35. Additional Info • Don Reinertsen’s website (blogs & videos): http://reinertsenassociates.com • The 175 Principles of Flow: http://lpd2.com/the-principles-of-flow/ • First chapter of the book: http://www.celeritaspublishing.com/PDFS/ReinertsenFLOWChap1.p df • Al Shalloway: Not Doing SAFe? No Problem. Not Doing These? Big Problem http://www.netobjectives.com/blogs/not-doing-safe-no- problem-not-doing-these-big-problem • Kanban at Scale – A Siemens Success Story http://www.infoq.com/articles/kanban-siemens-health- services#anch107610