lean software development - accelinnova · lean software development. agenda what is lean? what is...

Lean Software Development

Agenda

What is lean?

What is lean

software

development?

Tools that work

Simulation

Summary

Lean Agenda

What is Lean?

A journey, not a destination

Deliver continually

increasing customer

value

Expending continually

decreasing effort

Shortest possible

timeframe

Highest possible

quality

- Mary Poppendieck

Foundation Principles

Business Goals:

Create customer value!

How do we do that?

What does not directly create

value is “waste”

Eliminate the waste

We use lean tools to find and

reduce the waste. These tools

work!

Customer Value Rule of Thumb

Ask:

Would your

customers be

willing to pay for

it?

Anything else

might be waste.

Example: Customer Value

As a pizza customer, am I willing to pay for:

Sauce?

Toppings?

Time when delivery driver given incorrect

directions to my house?

Electricity for pizza oven?

Electricity for pizza oven

left on overnight?

Continuously Remove Waste

Continuously

optimize processes

to improve:

Effectiveness

Flexibility

Time-to-market

The Principles of Lean

Focus on customers

Eliminate waste

Learn first

Deliver fast

Build quality in

Keep getting better

Optimize the Whole

Focus on Customers

“If you organize around the consumer, the rest of it will follow.”

-Eric Schmidt

Do not focus on the products you are building,

focus on the problems customers are encountering.

It is not enough for customers to be satisfied, they should

love your products.

- Mary Poppendieck

Eliminate Waste

Eliminate Waste

The three biggest wastes in product

development are:

Building the Wrong Thing

Building the Thing Wrong

A Batch and Queue Mentality

- Mary Poppendieck

The 7 Deadly Forms of Waste

Rework/Correction: not “right the first time”

Overproduction: file and data retention,

duplication of effort

Motion: looking for information or supplies

Material: information not available or not

correct

Waiting: for approvals, decisions, etc.

Inventory: “just in case” activities

Over Processing: redundant approvals,

reports with too much information, decisions

made at the wrong levels

Applied to Software Development

Forms of Waste Mapped to IT

Rework Need I Say More?

Overproduction Building Features We Don’t Need

Motion Approval Cycles, Access to Decision-

makers. Queues

Material Poor communication. Unused Tools,

Equipment

Waiting Waiting

Inventory Over-planning. 40% of Licenses That

We Never Use.

Over-processing Gold-plating, Over-engineering

Which of these would customers pay for?

WaitingInternal

Paperwork

Defects Complexity

&

Extra

Features

Red Tape

Backlogs = Delays

Your Forms of Waste?

Rework

Not getting it right the

first time

Long time between

defect injection and

removal.

Have any examples?

Excess movement

= Handoffs between process steps

and departments

Handoffs

Lose key

information

Incomplete

information

Motion

Navigating

through

processes and

approvals.

Got any

examples?

Material and Inventory

Poor communication

Information not available

Duplicate tools and processes

Got any?

Waiting

Waiting for anything

– particularly

decisions.

What do you wait

for?

Over-Processing

Making things better than they have to be.

What examples do you have?

Leadership Role

Every line of code costs money to test

and more money to support.

It is better for developers to be surfing

than writing code that won't be needed.

- J. Sutherland

Extra Processes

Unnecessary Paperwork

Long & Complex status

reporting

Poor Communication

Endless Meeting

Paralysis

Management Activities

What is the

value to

customer?

Don’t add work

to the team

The Evils of Churn

Requirements churn: 30-50% waste

Features defined long before development

begins (they will change)

Test-and-fix churn: 50% of development

time

Testing long after development

Delayed integration

Architecture issues discovered late

Exercise: Reducing Churn

Percentage of requirements change after

they are documented?

Percentage of development time is spent in

“test and fix” or “hardening” activities at the

end of a development cycle?

What could you do to reduce these

percentages?

Lean Tools

Goal Tool Why It Works

Find the waste Would the customer pay for? Focus on value creation

Find the waste Value Stream Mapping Make the waste visible

Make everything

visual

Visual Controls Better to see than to

read. Push not Pull.

Reduce churn Real Options Defer decisions to

reduce churn

Reduce churn One-piece flow (aka iterative

development)

Shorten feedback loops

Adapt to change

Deliver faster (yes,

faster)

Optimize the whole System thinking enabled by

value stream mapping

Include all the inputs and

outputs

Find the

waste …

….and

remove it.

Value stream mapping


Why Value Stream Maps

Makes the process visible so that we can see the waste

Focuses us on what generates customer value

Focuses us on process effectiveness

Helps us identify ways to take time out of processes and improve delivery speed

• Replaces process emotion with process data

Where do we waste time?

Cycle Time:

Average end-to-end process time

From problem detection

To problem solution

Begins and ends with customer.

Problem Solution

Cycle Time

Customer Request Customer Satisfied

Don’t get bogged down with detail

Most typical scenario

“Staple yourself” to the process

Map what happens

Focus on parts to improve

Add detail later (if needed)

Example: Customer Requests Fix

Where can we remove the waste?

Customer

requests fix

Support

triages

request

Dev team

triages

request

Dev fixes,

releases in

fix pack

Customer

deploys

fix pack

Work: 5 min 2 hrs 1 hr 2 wks 1 hr

Efficiency = Value added time

Total cycle time

10.5 days

38.5 days= = 27%

Wait: 5 min 3 days 1 wk 2 wks

Value Added Time = 10.5 days

Cycle time = Work + Wait = 38.5 days

1 Day Agreement

Achieved

2 Days7 Days

Select Delivery Content (no travel allowed!)

Need for

Scope Def.

2 Hours

Call & Email

With Cust

1 Hour

Call & Email

With Cust

1 Hour

X 6

Customer Request to Agreement

Working Time = 16 hours

Elapsed Time = 50 days

Wasted Time = 48 days

Efficiency = 4%

Note: Comparison assumes

• 1 day travel to customer site

• 1 day face to face work

• 1 day travel home is excluded since

customer is satisfied

Face to Face Meeting

Working Time = 8 hours

Elapsed Time = 2 days

Waiting Time = 1 days

Efficiency = 50%

As-Is Example

As a new customer, I want to enter my Information only once

in the Small Business Portal

SOW

Final Dev

(1 Day)

System Test

(5 Days)

Standards

Compliance

(1 Day)

Wireframe

Design

(2 Days)

Development

(5 Days)

1 Day

2 Wks2 Days

2 Wks2-4 Wks

Process Efficiency = Work / Time = 14 / 56 = 25%

To-Be Example

Requirements

Planning

(2 Days)

System Test

(5 Days)

Standards

(1 Day)

Wireframes

Design

(1 Day)

Development

(5 Days)

1 Day

Work = 14 days

Time = 11 days

Efficiency = 127%

As Is SAP Integration for New Product

Business Value

Justification

2 Hours

Authors

SAP

1 Hour

Requirements

2 Hours

B Analyst

2 Hours

1 Week

2 Days

2 Weeks2 Weeks1 Week1 WeekSolution

Document

2 Days

Quote

Time & $

1 Day

Bus Approval

for Funding

1 Day

Allocate

Developer

2 Hours

2 Weeks Read Solution

Document

1 Hour

1 Week Clarification

Meeting

4 Hours

1 Week

Implement

Change

15 Days

0 Days

UAT

Test

10 Days

0 Days Put In

Production

1 Hour

2 Days Bug

Found

1 Day

2 Weeks

Re-Implement

Change

1 Hour

1D

ay

1D

ay X3

In SAP

Ready to Use0 Days

Working time = 33 days + 18 hours = 35 business days

Wait Time = 13 weeks + 10 days = 75 business days

Elapsed time = 110 business Days

Efficiency = 35/110 = 32%

As Is SAP Integration for New Product

Value Stream – Parallel Development

4141

Create a Value Stream Map

Select a Process that is relevant to you

Create a Value Stream Map

Calculate Process Cycle Efficiency

Process Efficiency =

How can you change the process to reduce

the waste? (the To Be state)

Value Added Time

Total Cycle Time

VSM’s may give you short-term

whining rights but improving the

process will give you long-term

bragging rights.

- Pollyanna Pixton

Value Stream Mapping

Your

Questions?

Lean Tools


Find the waste Would the customer pay? Focus on value creation


Make everything

visual




reduce churn


development)


Adapt to change


faster)




outputs

Visual Controls

It is better to see than to read.

Why?

June

Total Variable Costs as a % of Revenue 59.07%

Materials as a % of Revenue 32.70%

Direct Labor as a % of Revenue 6.00%

Variable Overhead as a % of Revenue 8.10%

Commissions as a % of Revenue 3.40%

At a glance, which is better?At a glance, which is better?

June






At a glance, which is better?Or, two data points?

April






Or?

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Materials Percentage of Revenue

Direct Labor Percentage of Revenue

Variable Overhead Percentage ofRevenue

Commissions Percentage of Revenue

Total Variable Percentage of Revenue

Or, something we can see?

Visual Controls Acceptance Criteria

I can “tell the status by looking”

The information is current

The information is meaningful and helps me

do my work

The information is useful and helps me

make better decisions

Includes standards

In Your Lives

Lean Tools




Make everything

visual




reduce churn


development)


Adapt to change


faster)




outputs

Real Options

to Defer Commitments

55

Defer Commitments

Pilots are trained to make decisions in

challenging weather situations.

56

Maintain Options

You don’t know everything yet so….

Keep your options open

Business

Technical

Make decisions reversible where possible

Or make them

At The LAST Responsible Moment

Defer Commitments

Get most information before making

irreversible decisions

Tools:

Make decisions reversible, wherever

possible

Defer Commitments

Make irreversible decisions at last

responsible moment

Tools:

Real Options

Maintain options at points where change is

likely to occur

Real Options

- Chris Matts

Example

I can get to the airport in several ways: Walk (90 minutes)

Take light rail (45 minutes)

Ride a bike (40 minutes)

Drive myself (20 – 25 minutes)

Take a taxi (20 minutes)

If I take light rail, what options did I just

eliminate? What options did I leave open?

If I wait until 30 minutes before check-in,

what options are still open?

When do I need to decide?

Defer Commitment

Don’t solve problems until they arrive

Wait for something to happen

Respond quickly and correctly

Tools:

Eliminate deterministic control systems

Learn to wait

Defer Commitment

Your

Questions?

Lean Tools




Make everything

visual




reduce churn


development)


Adapt to change


faster)




outputs

One-Piece Flowaka Iterative Development

How do we delivery fast and

unleash dormant process

capacity?

Get as close to

possible to one-

piece flow

Deliver Fast

Continuous Stream of completed work

No Batching

No Waiting

No Backlog

Fast Immediate Action

Fast Flow

Deliver Fast

Companies that compete on time

L.L.Bean ships in 24 hours and put Sears

catalog out of business

FedEx: next day delivery

Southwest: fastest turnaround at gates

Deliver Fast

This is NOT hack and release

Must build quality in

Need engaged people you can trust to make

decisions and help each other

Repeatedly and reliably respond to

customer faster than competitors

One-Piece Flow

Your

Questions?

Lean Tools




Make everything

visual




reduce churn


development)


Adapt to change


faster)




outputs

System Thinking

Optimize the Whole

The synergy between the parts of a system is the key to the

overall success of the system.

Appreciate the Entire Value Stream

... from concept to cash. Optimizing any part will sub-optimize

the whole.

- Mary Poppendieck

Optimize the Whole

Vicious Circle (of course, this would never

happen at your company):

A customer wants some new features, “yesterday.”

Developers hear: Get it done fast, at all costs!

Result: Sloppy changes made to code base.

Result: Code base complexity increases.

Result: Number of defects in code base increases.

Result: Exponential increase in time to add features.

With Thanks to Mary & Tom Poppendieck

Example: “Not my size!”

Twice-weekly orders

Delivers globally 2 days

after order • On hangers, priced, ready to sell

• Shipping costs not optimized!

Manufactures in small

lots• Mostly at co-ops in Western Spain

at Western European labor rates

• Manufacturing costs not optimized!

Design-to-Store in 2

weeks

RESULTS Zara Industry

New Items

introduced / year11,000 3,000

Items sold at full

price85% 60-70%

Unsold Items <10% 17-20%

% sales spent on

advertising0.3% 3-4%

% sales spent on IT 0.5% 2%

Revenues vs GAP $23.1B $16.1B

Profit vs GAP $3.2B $1.3B

Customers visit the store 17 times a year vs

average store 4 times

Now the biggest fashion retailer in the world

Everyone understands "the model" of fast

supply chain

Owner Amancia Ortega is now the 3rd

richest man in the world

Zara Market Performance

System Thinking Tools

Focus end-to-end

Drive cost out of

each department• Easy

• Often interferes with overall

cost reduction

Split Responsibility• Dev Team has Technical

Success

• Product Manager has

Business / Profitability

Eliminate waste

between departments• Difficult

• May not result in the lowest

department costs

Team Responsibility• Whole Team Business + Dev are

responsible for Business Success

VS

VS

Average Cycle Time From Product Concept To First Release

OrFrom Capability Request To Capability Deployment

Or

From Defect To Patch

The Business CaseP&L or

ROI or

Time to Break Even

Systems Measurements

Customer Satisfaction

Net Promoter ScoreHighly correlated to market share and long term growth

How likely are you on a scale of 1 to 10 to

refer this product to a peer?

(# of 9’s and 10’s) – (# of 1’s through 6’s)

Total number of responses

System Thinking

Your

Questions?


Summary

Using Lean To Improve Processes

Identify what creates value for the customer

Document the value stream – the things we

do that generate value for the customer

Identify the waste in the process

Revise and standardize the process to

reduce the waste

Enforce quality at the source

Continuously improve processes

Lean in summary

Theme Takeaway Eliminate Waste Profit = revenue - cost

Defer Commitment Decide as late as possible

Deliver Fast Respond quickly to changes

See the whole The whole is bigger than the sum of

the parts

and Build Quality In Shorten the feedback loops

Focus on learning Lessons learned and applied

Lean Summary

Think big.

Act small.

Fail fast.

Learn rapidly.

- Mary Poppendieck

Lean References

“Beyond Toyota: How to Root Out Waste and

Pursue Perfection”, James Womack and Daniel

Jones, HBR Sept-Oct 1996

“Decoding the DNA of the Toyota Production

System”, Steven Spear and H. Kent Bowen, HBR,

Sep-Oct 1999.

Toyota Production System, Taiichi Ohno,

Productivity Press

Software by Numbers, Mark Denne & Jane

Cleland-Huang, Prentice Hall

Lean References

Lean Sources

Mary & Tom Poppendieck,


Implementing Lean Software Development

Leading Lean Software Development

Lean References

Applying Lean Tools

The Cup Game!

The Cup Game

Four Teams

9 volunteers for each team!

Warehouse Material handler

2 Star assembly persons

2 Half-circle preparation and assembly persons

2 Toothpick sorting and installation persons

2 QA Inspectors

Give yourselves a team name.

It is NOT a competition!

The Cup Game Rules

The goal is to produce as many acceptable

cups as possible in the shortest amount of

time.

All cups must be moved in batches of 3

cups.

All assemblies must match the pictures.

You must have fun.

For the observers, think about the tools.

The Cup Game

The cups can only be moved from station to

station in batches of three cups and can only be

moved by the Warehouse person.

There can be NO MORE than three cups at any

station.

Completed cups must be moved before next set of

cups arrive.

Remember, this is NOT a competition.

The Cup Game

The person at the star station must place two stars

opposite each other and so that two of the points

touch the top edge of the cup (see below).

The Cup Game

The person at the half-circle station must cut the

circles into half-circles and then place them exactly

below each star, straight, and near the bottom of the

cup.

The Cup Game

The person at the toothpick station simply puts

4 different color toothpicks into the cup.

Warehouse

Warehouse person to move

batches in lots of 3 cups.

Star Station

Operator to place 2 stars on each

cup, front and back.

Half-circle Station

Operator to place 2 half-circles on

each cup, front and back.

Toothpick Station

Operator to place 4 toothpicks in

each cup, one of each color.

QA Inspection

Inspector separates the good from

the bad cups.

Good Bad

X

The Cup Game … Agile Version

What?

Quality Cups

Delivered to the customer

How?

You are a self-organising team

There are No Rules about How

Before we start I suggest

Co-location

Make sure you have the resources

Ready?

What was different?

What Was Different?

Feedback

What should we:

1. Keep Doing

2. Start Doing

3. Stop Doing

NPS: Net Promoter Score

“Would you recommend this classto a peer?”

10-9 Yes!

8-7 Neutral

0-6 No way!

lean software development - accelinnova · lean software development. agenda what is lean? what is...

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