Kanban as a Business Analysis Tool
A Case-study
Introduction
Clarinha Prado
• Consultant in business analysis and information technology.
• 20 years of experience in companies from various branches, mainly in the financial sector.
• Graduated in computer engineering, with postgraduate studies in business administration.
Introduction
• Gigante Consultoria is a consulting company that works with:– Business Analysis– Project Management– System Analysis– Training
• This presentation refers to one of our projects, where we worked to improve the procurement process of one customer.
Objective
• Present the Kanban as a tool to support business analysis.
• Describe the introduction of Kanban in the procurement process of Poiesis – a Culture, Language and Literature Support Institute.
Agenda
Contextualization: • Description of the
company, the procurement area and
its process.
Problems Encountered:• Problems that
prompted the hiring of consultancy.
Suggested solution:• Suggested actions by
consulting.
Deployment of Kanban:• Stages of deployment,
key challenges, obtained results.
Conclusion:• Main conclusions and
recommendations.
Contextualization
Poiesis - Culture, Language and Literature Support Institute
• Where are we? São Paulo – state of Brazil.
SÃO PAULOArea: 248.209 km2
Population: 43.663.669 inhabitants
Poiesis - Culture, Language and Literature Support Institute
• Non-governmental organization, qualified by the State Government of São Paulo.
• Promotes socio-cultural and educational development, focused on project management in cultural spaces.
• Develops programs and research in cultural spaces geared to the training of students and the general public.
Poiesis - Culture, Language and Literature Support Institute
• Performs the management of 29 cultural units :– 21 Cultural workshops, – 5 Culture factories,– 2 Museums, – 1 Reading space.
• Responsible for making purchases for cultural spaces managed by Poiesis and to the headquarters of the Organization.
Approximate volume of 400 procurements/month.
Procurement Department
Procurement Department
Organizational structure:
Administrative Manager
Contract Manager
Procurement Manager
5 buyers 1 intern
Procurement Process
Receive Request
Assign Buyer
Quote or Negotiate
Get Signatures
Approve Purchase
Wait For Delivery
Validate Delivery
Request Payment
Draw Up A Contract
Motivation to Contract Business Analysis
Problems Faced by Poiesis
• Lack of transparency to solicitants.
• Process time consuming, complex and bureaucratic.
• Lack of clarity in the distribution of responsibilities.
• Lack of knowledge of business rules.
• Problems in the purchases prioritization.
• Uneven distribution of workload between buyers.
• Lack of management information.
The Business Analysis
The Business Analysis
• The consulting company Gigante held a job of diagnosing problems and proposal for improvements.
• Several actions were proposed to address the problems singled out, among them the introduction of a Kanban.
The Kanban Proposal
• Use the Kanban as a tool for:– Increase the transparency of the procurement
process. – Enable strategic management over acquisitions.– Control the flow of the department
purchases.– Optimize productivity quickly.
The Kanban Proposal
1st phase – Physical Kanban
Deployment of Kanban
1st phase – Physical Kanban
• Start: May 14, 2013.• Used for about 2 months.• Deployment steps:– Process modeling with managers.– Team training.– Monitoring the deployment.– Use of available materials: brown paper, masking
tape, post-its, A4 sheet.
1st phase – Physical Kanban
Identification of bottlenecks
Staff overload
Profile of purchases
1st phase – Physical Kanban
Non-instant availability resource
Capacity-constrained
resource
Manually Extracted Metrics
Board Customizations
• Suggestions from the team, during the daily meetings.
Board Customizations
• Stamp: standardization and practicality for a low cost.
Last Board Configuration
Main Challenges
• Fixing the frame and the cards.
• Motivation for the team to use the new tool.
• Establishment of new concepts.
• Manual generation of metrics.
• Maintaining the daily meeting.
Obtained Results
• The team's involvement in the proposed improvements and troubleshooting.
• Customer awareness.
• Sharing information.
• Workload visualization.
• Analysis of performance metrics.
• Reducing the index of complaint.
2nd phase - Automated Kanban
Deployment of Kanban
2nd phase - Automated Kanban
• Start: September 16, 2013.• Deployment steps:– Selection and hiring of the Kanban application.– Team training.– Import of the cards.– Customization of indicators.
Kanban Products Analysis
A B C D
2nd phase - Automated Kanban
2nd phase - Automated Kanban
Obtained Metrics
Obtained Metrics
Main Challenges
• Choice of the Kanban tool.
• Two months interval between automated and physical Kanban.
• Adaptation of the team to the new system.
• Loss of board visibility, that used to be displayed on the Department wall.
Obtained Results
• Ongoing purchases controlled by Swift-Kanban.
• Metrics to support managerial activity:– Data in real time, backlog, productivity, costs, purchase
volume, lead time, cycle time.
• Customized web page to search for the purchase status.
• The contracts area wants to start using Swift-Kanban.
Conclusion
Conclusions
• Kanban is a solution easy to adopt, with an affordable cost.
• Helped solve the main encountered problems.
• Gave the manager support through the workflow visualization and analysis of indicators.
Kanban as a Business Analysis Tool
A Case-study