Identifying and Managing Waste in Complex Product Development Environments

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Product Development can be viewed as a Complex Adaptive System. Different people, groups, organizations and systems collaborate in a complex network of relationships and dependencies to produce something of value - generally a product or service. Identifying waste in this value network is a critical step towards creating a truly lean organization. These slides are from an interactive, hands-on workshop that I ran at the Agile India 2012 conference in Bengaluru, India. There is a corresponding Blog entry here:
  • 1. Identifying and ManagingWaste in Complex ProductDevelopmentEnvironmentsKen Power
  • 2. Setting Expectations!   This is a Workshop.!   That means: !   I will spend less time lecturing !   We will talk with each other !   We will learn from each other !   We will work through some difficult problems !   We will share our experiences and stories !   If we talk too long we may not get all material covered in details, but that’s OK !   I will give some concrete strategies and tools that have proved helpful !   I will write a workshop report and share the findings with you
  • 3. Learning Outcomes!   Understand the history and modern context of Lean Product Development in Software Development Organizations!   Understand appropriate metaphors for Lean Product Development, beyond the usual influence of the manufacturing or automotive domain!   Understand the importance of identifying and managing Waste!   Be able to identify Waste in your own organizations!   Be able to apply the framework for managing Waste in your own Product Development Organizations!   Concrete strategies and practices for eliminating waste in your own organizations
  • 4. General Flow!   Opening (20 minutes)!   Identifying Waste (30 minutes)!   Managing and Eliminating Waste (30)!   Closing (10 minutes)
  • 5. I’m the Irish guy
  • 6. OPENING
  • 7. Lean Principles!   Section I: Long-Term Philosophy !   Section III: Add Value to the !  Principle 1. Base your management Organization by Developing Your People decisions on a long-term philosophy, even !  Principle 9. Grow leaders who thoroughly at the expense of short-term financial goals. understand the work, live the philosophy, and teach it to others. !  Principle 10. Develop exceptional people and!   Section II: The Right Process Will teams who follow your company’s Produce the Right Results philosophy. !  Principle 2. Create a continuous process !  Principle 11. Respect your extended flow to bring problems to the surface. network of partners and suppliers by !  Principle 3. Use “pull” systems to avoid challenging them and helping them overproduction. improve. !  Principle 4. Level out the workload (heijunka). (Work like the tortoise, not the !   Section IV: Continuously Solving Root hare.) Problems Drives Organizational Learning !  Principle 5. Build a culture of stopping to !  Principle 12. Go and see for yourself to fix problems, to get quality right the first thoroughly understand the situation time. (genchigenbutsu). !  Principle 6. Standardized tasks and !  Principle 13. Make decisions slowly by processes are the foundation for consensus, thoroughly considering all continuous improvement and employee options; implement decisions rapidly empowerment. (nemawashi). !  Principle 7. Use visual control so no !  Principle 14. Become a learning problems are hidden. organization through relentless reflection !  Principle 8. Use only reliable, thoroughly (hansei) and continuous improvement tested technology that serves your people (kaizen). and processes.
  • 8. Optimize on the people who add value!   Almost every organization claims it’s people are important, but if they truly optimize their structures on those who add value, they would be able to say:
  • 9. 7 Principles of Lean Software!   Eliminate Waste!   Build Quality In!   Create Knowledge!   Defer Commitment!   Deliver Fast!   Respect People!   Optimize the Whole
  • 10. Complex Adaptive Systems!   A dynamic network of interacting agents !   Stakeholders – people and groups !   Other systems!   Control is decentralized and dispersed throughout the network!   Adapts to changing environment
  • 11. Modern LeanProductDevelopment
  • 12. “Eliminating waste is the mostfundamental lean principle, the onefrom which all the other principlesfollow. Thus, the first step toimplementing lean development islearning to see waste.”(Poppendieck and Poppendieck 2003)
  • 14. Waste is considered to be anythingthat either (a) does not directly addvalue to the product, process,customer or organization, or (b)hinders or prevents the organizationfrom being as effective and efficientas possible.
  • 15. DemingWaste is Loss“In my experience, most troubles and most possibilities for improvement add up to proportions something like this: 94% belong to the System (the responsibility of management) 6% belong to Special Causes”
  • 16. The Wastes of Product Development!   Extra Features!   Delays!   Handoffs!   Extra Processes / Relearning!   Partially Done Work!   Task Switching!   Defects!   Unused Employee Creativity
  • 17. Extra FeaturesThese are features that are not required in the product, and that donot have a current economically justified need.
  • 18. Delays (Waiting)Includes waiting for people to be available, or to deliver dependentwork.
  • 19. HandoffsIncludes tacit knowledge lost when work is handed off betweenpeople or groups.
  • 20. Extra Processes / RelearningAspects of the process used by the team, or mandated by the organization,that do not add value (Poppendieck 2003). Process that cause knowledge tobe lost, forcing relearning to occur (Poppendieck 2007).
  • 21. Partially Done WorkPartially done work is analogous to inventory in software productdevelopment.
  • 22. Task SwitchingWaste caused by working on multiple tasks at the same time and thetime lost in switching between them.
  • 23. DefectsMistakes, errors, flaws in the product that cause unexpected resultsor behavior.
  • 24. Unused Employee CreativityRefers to underutilization of people and in particular their ideas andcreative input to improve the process.
  • 25. Game: Identifying WasteUsing the “Speedboat” Innovation Game
  • 26. Game Rules!   Draw a speedboat !   This speedboat represents your team(s)!   Draw anchors on the speedboat !   Anchors are slowing down the speedboat !   They prevent it from going as fast as it wants to go!   Each anchor has a theme: one of the 8 wastes!   For each anchor: !   What are the links on this anchor that are holding this speedboat back?!   Write examples on Sticky Notes !   Attach Sticky Notes to Anchors!   Be specific, give examples
  • 27. Post-Game Analysis!   What examples of Waste did you discuss?!   How do these affect you? Your team? Your organization?
  • 29. Techniques, Practices!   Value Stream Maps!   Value Network Maps!   A3 Report!   Waste Matrix
  • 30. !   Follows the steps of the Scientific Method !   Plan: develop a hypothesis or experiment Act Plan !   Do: conduct the experiment !   Check: collect measurements !   Act: interpret the results and take appropriate action!   Also known as !   The Demming Cycle !   The Shewart Cycle Check Do
  • 31. !   Element 1: Logical Thinking Process!   Element 2: Objectivity!   Element 3: Results and Process!   Element 4: Synthesis, Distillation, and Visualization!   Element 5: Alignment!   Element 6: Coherency Within and Consistency Across!   Element 7: Systems ViewpointSee also Claudio Perrone’s A3 & Kaizen presentation:
  • 32. Different A3 ReportsFocus Problem Solving Proposal Writing Project Status ReviewThematic content or focus Improvements related to Policies, decisions, or Summary of changes and quality, cost, delivery, safety, projects with significant results as an outcome of productivity, etc. investment or either problem solving or implementation proposal implementationTenure of person Novice, but continuing Experienced personnel; Both novice and moreconducting the work throughout career managers experienced managersAnalysis Strong root-cause emphasis; Improvement based on Less analysis and more quantitative/analytical considering current state; focus on verification of mix of quantitative and hypothesis and action items qualitativePDCA cycle Document full PDCA cycle Heavy focus on the Plan Heavy focus on the Check involved in making an step, with Check and Act and Act steps, including improvement and verifying steps embedded in the confirmation of results and the result implementation plan follow-up to complete the learning loop From Table 5.1 from “Understanding A3 Thinking”
  • 33. Owner: Ken Power Report Theme: Describe the goal and quantify the improvement Date: 08/01/2012Background CountermeasuresWhy are we talking about this? For each Actionable Root Cause, describe the actionWhat is the issue? and the benefit What alternatives could be considered?Current condition / Problem Situation How will our selected countermeasures impact the root cause and change the current problem situation?Describe Expectation, Discrepancy, Extent, RationaleWhere things are today - visualize Effect confirmation / PlanGoal / Target Track progress towards due date Action Plan: Who will do what? By when? How?What specifically are we going to do? By when? Quantify What are the indicators of progress? What milestonesthe improvement. How will we measure success? should we track? Look for the most critical measuresRoot-Cause AnalysisUse 5-Whys, Fishbone, Force Field, Circle of Questions, Follow-up actionsor other analysis techniquesWhat constraints prevent us from reaching our target? What other issues can be anticipated? E.g., theGet past symptoms countermeasure might make things worse, or uncoverGet to actionable root causes other problems What failure modes should we look out for?
  • 34. John Clifford, Construx
  • 35. Waste Example Waste Description Relative # Stakeholders Value Trigger Date, Relative value Relative value Category Importance affected by which the for managing for managing waste must be this waste vs. this waste vs. eliminated other wastes other Project workCompile and Waiting It can take We are losing 42 Devs, 12 50+ people will Release 4.5.1 in This will help This willBuild times 15-30 minutes nearly 20 QA (directly have less August 2012 reduce ultimately helptake too long to run a full person-hours affected – frustration feedback loops us go faster build, per day across others are waiting for long and encourage with other depending on the entire team. indirectly build cycles; more use of project work the machine affected) Shorter build TDD, leading cycles to higher encourage quality, fewer more frequent integration integration and errors, fewer testing, and defects hence more reliable productTeam spends Partially Done Engineers, We are not 8 Devs, 3 QA, The entire teamtime working Work designers and doing sufficient 2 Eng Mgr, 2 can spend moreon features that others are due diligence Product Mgr time focusingget dropped putting on some on delivering significant features. We features we will effort into need to get ship with. features that get better at dropped later. defining our Minimal Viable Offer.Duplication of Extra Processes Functional Duplicated 4 Eng. Mgr, 1status and lines are effort and Program Mgr, 3progress managing own danger of Team Leadsreporting reporting mixed messageResolving Defectsdefects incomplexproductdependencychains
  • 36. Exercise: Manage Waste!   Pick a Technique !   Waste Matrix !   A3 Report!   Choose one of the Wastes identified earlier!   Think about how to remove or manage it!   Start to create an A3 Problem Solving Report or a Waste Matrix chart
  • 37. Post-Game Analysis!   What Wastes did you choose to solve? Why?!   Describe how you used the Waste Matrix.!   Describe how you used the A3 Problem Solving Report.
  • 38. CLOSING
  • 39. Remember…!   Your organization is a Complex Adaptive System!   There is waste in every system !   Find it !   Eliminate it (or at least get it under control)!   Use these techniques as part of your Continuous Improvement (Kaizen) efforts !   Release or Iteration Retrospectives are a great forum !   Dedicated Problem Solving Sessions !   Strategy Sessions !   Portfolio Management Sessions!   Keep it Visible
  • 40. And finally …!   Develop people to be Problem Solvers!   You can have fun finding and eliminating waste !   – use serious games at work
  • 41. References
  • 42. ReferencesDeming, W. E. (1994). The New Economics for Industry, Poppendieck, M., and Poppendieck, T. (2007).Government, Education, Cambridge, MA: The MIT Press. Implementing lean software development : from concept to cash, London: Addison-Wesley.Gray, D., Brown, S., and Macanufo, J. (2010).Gamestorming : a playbook for innovators, rulebreakers, and Poppendieck, M., and Poppendieck, T. (2010). Leadingchangemakers, Beijing ; Cambridge: OReilly. lean software development : results are not the point, Upper Saddle River, NJ. ; London: Addison-Wesley.Hohmann, L. (2006). Innovation Games: CreatingBreakthrough Products Through Collaborative Play, Upper Reinertsen, D. G. (2009). The principles of productSaddle River, NJ: Addison-Wesley. development flow : second generation lean product development, Redondo Beach, Calif.: Celeritas.Liker, J. K. (2004). The Toyota way : 14 managementprinciples from the worlds greatest manufacturer, New York: Rothman, J. (2009). Manage your project portfolio :McGraw-Hill. increase your capacity and finish more projects, Raleigh, N.C.: Pragmatic Bookshelf.Ohno, T. (1988). Toyota production system : beyond large-scale production, Cambridge, Mass.: Productivity Press. Shingo, S. (2007). Kaizen and the art of creative thinking : the scientific thinking mechanism,Poppendieck, M., and Poppendieck, T. (2003). Lean Bellingham, WA: Enna Products Corporation and PCSSoftware Development: An Agile Toolkit, Boston: Addison- Inc.Wesley. Sobek, D. K., and Smalley, A. (2008). Understanding A3 thinking : a critical component of Toyotas PDCA management system, Boca Raton: CRC Press.
  • 43. THANK YOU
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