combiningg, g g lean, six sigma & agile - · pdf fileabout me arlen bankston director,...
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Combining Lean, Six Sigma & Agileg , g gWhy, and How?
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 1
About Me
Arlen BankstonDirector, Lean-Agile Consulting Director, Lean Agile Consulting
Six Sigma Master Black Belt
Certified ScrumMaster Trainer and Agile Methodology Coach
30+ Lean Six Sigma and Agile projects implemented over past five yearsimplemented over past five years
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Agenda
I. Introduction (What?)
II The Case for Change (Why?)II. The Case for Change (Why?)
III. Three Combined Models (How?)
IV. Discussion
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 3
I Introduction (What?)I. Introduction (What?)
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 4
Introduction
Let’s take a few moments to set expectations:How many Agile practitioners?How many Agile practitioners?How many Lean Six Sigma, BPM or operations management practitioners?g p
Has anyone previously combined Lean or Six Sigma process improvement techniques with Agile?
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 5
What are Lean Six Sigma and Agile?
Lean Six Sigma is one of a number of business process improvement
th d l i hi h h t
Define
Measure
methodologies, which shares roots with approaches such as BPM, TQM, SPC and others.(P F d)
Analyze
Improve(Process Focused)
p
Control
Agile is an iterative and incremental approach to project delivery, encompassing y, p gmethodologies such as Scrum and eXtreme Programming (XP).(Project Focused)
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 6
( j )
Basic Concepts of Lean Six Sigma
A 5 step approach founded on asking the right questions:
1. Define: What is important to the customer? 1. Define: What is important to the customer? What is their target and acceptable limitations; anything else is considered defective
2 Measure: What is the frequency of defects? How many defects?2. Measure: What is the frequency of defects? How many defects?Capability: How is the process performing for the customers? Entitlement: How good can the existing process be?Gage R&R: How good is the data? Is it reliable?
3. Analyze: Why, when and where do the defects occur?Data driven analysis to prove what the root causes are
4. Improve: How can we fix the process/critical defects?How can root causes can be addressed?
5. Control: How can we ensure the process remains fixed?
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5. Control: How can we ensure the process remains fixed?Develop controls to ensure process improvement is sustained
Basic Concepts of Agile
Key Agile principles are:
Focus on customer value – Employ business-driven prioritization of features.
Iterative & Incremental Delivery – Create a flow of value to customers by “chunking” feature delivery into small increments.
I t C ll b ti F t f Intense Collaboration – Face-to-face communication via collocation, etc; diversified roles on integrated teams.
Self Organization – Team members self-organize to fulfill a shared project vision.
Continuous Improvement – Teams reflect, learn and adapt to change; work informs the plan.
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Demonstrated Successes
Agile & Lean Six Sigma have both proven their mettle in the respective domains:
Agile Project Execution: Improved time-to-market, collaboration and customer satisfaction
L Si Si P I B Lean Six Sigma Process Improvement: Better process controls, higher efficiency and effectiveness
However, they still tend to operate independently.However, they still tend to operate independently.However, they still tend to operate independently.However, they still tend to operate independently.
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II The Case for Change (Why?)II. The Case for Change (Why?)
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 10
What’s Wrong with Independence?
Some common issues include:At the portfolio level:
Arbitrary and inconsistent project selection criteria
Poor alignment of projects across value streams
Unfocused approach to risk managementUnfocused approach to risk management
Within Agile projects:No quantification of project value
Customer difficulty in providing “grounded” requirements
Inconsistent alignment with highest-priority process needs
Within Lean Six Sigma projects:No incremental delivery of business value
Limited scope of analysis and opportunity for measurement
Insufficient linkage to execution of improvement recommendations
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 11
Insufficient linkage to execution of improvement recommendations
Why Do We Do Projects?
Why do we do projects?a) Increase Revenue
b) Avoid Costs
c) Improve Service
d) All f th Ab
(Trick Question)
d) All of the Above
To enhance businesses’ profitability by:To enhance businesses profitability by:Providing “Value” to external Customers (better service, more revenue generated), and
Providing “Value” to internal Customers (better service, lower cost)
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What is “Value?”
Value is generated by addressing Customers’ most critical and pressing needs.
Value, as defined by the Business Customer (Agile)
Customer requirements (PMI)
Voice of the Customer/Business, Critical to Quality i (Si Si )requirements (Six Sigma)
Value, Right Product/Time/Price (Lean)
Related, but subtly different perspectives.Related, but subtly different perspectives.Related, but subtly different perspectives.Related, but subtly different perspectives.
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Value from Two Perspectives
How can we improve our capability to deliver Value through projects?
Project Execution Improvements:Delivery speedCode quality
While these are critically
important…Business customer satisfaction
Business-Focused Improvements:Impact on business process performance Impact on business process performance (cycle time, SLA fulfillment, audit compliance)Measurable contribution to strategic
These are more often neglected... And even more
importantinitiativesIncremental operational integration & deploymentEnd user satisfaction
important.
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End user satisfaction
The Big Picture
An explicit linkage from Customer toProcess to ExecutionProcess to Executionis necessary to ensure that the organization is tightly aligned with the g y greal, changing needs of its users.
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Problem Definition vs. Solution Execution
Lean and Six Sigma, by defining the problem, help to:
Define and quantify ValueId tif t f b i blIdentify root causes of business problemsAvoid suboptimization by providing full business contextAlign business management with true customer needs
Do the right projects.
Agile, by crafting the solution, helps g , y f g , pto:
Deliver incremental ValueProvide framework for ongoing measurement of resultsE ff ti i l t ti f Ensure effective implementation of improvementsAlign business management with implementation teams
Do the right projects right.
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 16
Do the right projects right.
Agile’s Contributions
Agile execution of Lean Six Sigma process improvement recommendations can yield:Direct, continuously updated linkage to true needs of business & customersMinimized risk through iterative development and incremental g pdeliveryAbility to handle change beyond initial process analysesFocus and refinement of recommended improvements at the Focus and refinement of recommended improvements at the implementation levelIdeal platform for innovation and new product introductionSupport for whole-of-life product maintenance and continuing Support for whole-of-life product maintenance and continuing developmentClose coordination between Business and IT
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Lean Six Sigma’s Contributions
Lean Six Sigma provides a number of complements to Agile project execution:Grounded project vision and clear focus
Product Backlog items with quantifiable ValueProduct Backlog prioritization criteriag p
Stronger business casesQuantitative assessment of feature valuesClear linkage of IT efforts to business benefitsClea l age o e o ts to bus ess be e ts
Means to measure successKey metrics identified for a particular processMeasurement and control system in placeMeasurement and control system in place
Directed portfolio designSelect projects based on critical process constraintsAlign projects across functional silos
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Align projects across functional silos
A Simple Connection
Lean Six Sigma ProgramWhat are the best ways to improve the customer acquisition process?
Agile Project(s)Reduce time to complete online process by 50%
U d t ProductBacklog
Early notification of required information
F
Update Web
content
Update UI Flow
Item 1
Item 2
Time to complete online C t Fewer
screens
xN
…
Integrate systems
r4
Item 2
Item 3
e online process
yN
Customer Value
CTQ N …
rN
…
Item N
Identify value, waste and improvement recommendations Execution & Delivery of Value
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 19
recommendations
III The Approach (How?)III. The Approach (How?)
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Control Model: Waterfall Six Sigma
Six Sigma Deployment via Waterfall
Status Quo.
Six Sigma Deployment via Waterfall
d U
sers
Value received
En
Busi
ness
C
usto
mer
Something is wrong! Help!
Value received
Lean
Six
S
igm
a An
alys
t
Never fear, we shall Define this
problem!
Now, we will Measure to find out how bad it is!
Next, let’s Analyze to find the root causes.
Here are some recommendations
to Improve the situation.
Now let’s ensure the process
remains under Control.
IT T
eam
sS
Solution Development:Waterfall SDLC, Design for Six Sigma (DFSS)
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 21
Waterfall Model Basics
The Waterfall Six Sigma Model works like this:
Lean Six Sigma projects determine which problems projects should address, and their broad solutions.p j ,
Waterfall projects are spawned in the “Improve” phase to tackle these problems, further define their solutions, and establish process control.
This has worked for years in some companies… but This has worked for years in some companies… but there is always room for improvement!there is always room for improvement!
This has worked for years in some companies… but This has worked for years in some companies… but there is always room for improvement!there is always room for improvement!
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 22
y py py py p
Three Combined Models
We’re going to briefly examine three possible models for combining Lean Six Sigma and Agile:
Model 1: Initial Approach Low-Level Combination:Agile with basic LSS tools
Model 2: Integrated Approach Focused Teams:Lean Six Sigma & Agile
Model 3: Whole of Life
Death of the Project:Platform-based operational approach
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Three Models, One Set of Goals
All models share these goals:Align project portfolios with true, grounded strategic value generation
Accurately measure value generation and strongly link to strategic operations
Improve execution speed of process improvement initiativesinitiatives
Tighten feedback loops in process management and improvement effortsimprovement efforts
Support incremental improvements with a process designed around iterative delivery
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 24
Process Management Maturity Curve
Process Business Process Delivery Focused
Process Improvement
Focused
Business Process Management
Focused
3. Whole of Life Approach Death of Projects
2. Integrated ApproachLean Six Sigma & Agile
1. Initial ApproachAgile w/tools
tyM
atur
it
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 25
Time
Process Management Maturity Curve
Process Business Process Delivery Focused
Process Improvement
Focused
Business Process Management
Focused
3. Whole of Life Approach Death of Projects
2. Integrated ApproachLean Six Sigma & Agile
1. Initial ApproachAgile w/tools
ty A simple first step when:
Mat
urit Projects have already been selected and scoped
Projects affect loosely defined business processesProjects live within broader programsQuantification of project value is desired
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 26
Time
Model 1: Initial Basics
The Initial Model works like this:
Lean Six Sigma Analyst facilitates rapid process definition and Lean Six Sigma Analyst facilitates rapid process definition and measurement exercises with Agile team, Business Customer, process performers and End Users (~1 week)
During each Iteration, LSS Analyst:Analyzes current process performanceLeads detailed process design work (workflow, business rules, etc.)Quantifies project value based on few key metricsFacilitates feedback from end users and related process ownersActs as customer proxy to teamProvides “voice of the process” for Product Backlog prioritizationProvides “voice of the process” for Product Backlog prioritization
Assists with operational integration of project improvements
LSS Analyst generally works 1 2 iterations ahead of team gradually
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LSS Analyst generally works 1-2 iterations ahead of team, gradually ramps down involvement as backlog crystallizes
Model 1: Initial Details
Lean Six Sigma tools, Agile execution.
Lean Six Sigma & Agile: Integrated User needs (VOC) are not
Allows for gradual integration andLean Six Sigma & Agile: Integrated
Provide high-level needs
Provide user feedback:Usability test results,
surveys etc.
Integrate output into operations
(VOC) are not static!
integration and detailed feedback
…Something is wrong! Help!
Fulfill Product Owner Role
y
Value received
“Commander’s Intent”
Detailed inputfrom user and
High-level Measure:
Help to prioritize BacklogHigh-level
Define:CTQs
Measure & Analyze process
performance data
Fulfill Customer Proxy Role
Report Value delivered
Gather user feedback
Build Controls into process
…
process perspective
Measure:Key metrics
Data collection plan
CTQsValue stream
Critical constraints
Iteration 1:Develop Measurement System
Iteration 0:Architecture
Spike
…
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Gives business visibility into true project value to their processes
1. Defines what value meansfor this project2. Places project in context with related business activities
Process Management Maturity Curve
Process Business Process Delivery Focused
Process Improvement
Focused
Business Process Management
Focused
3. Whole of Life Approach Death of Projects
2. Integrated ApproachLean Six Sigma & Agile
A good choice when:Significant change is needed to business processes
1. Initial ApproachAgile w/tools
ty
Significant change is needed to business processesA program (multiple projects) is to be launchedNew processes need to be definedComplex problems preclude an obvious solution
Mat
urit
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 29
Time
Model 2: Integrated Basics
The Integrated Model works like this:
Lean Six Sigma projects provide initial definition and analysis of process areas
Tackle large complex process issuesTackle large, complex process issues
Provide grounded business cases and clear focus
Provide metrics to define success
Agile projects are spawned in the “Improve” phaseUtilize output from LSS projects to form Product Backlog
Members from LSS team are involved in execution
Adjustments are made as necessary to initial LSS analyses based on exploratory and production data influx
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 30
Model 2: Integrated Details
A simple step forward.Lean Six Sigma & Agile: Serial
nd U
sers
Value receivedFeedback
Provide high-level needs
Bus
ines
s C
usto
mer
E
Something is wrong! Help!
Feedback
Fulfill Product Owner Role
Value received
Lean
Six
Sig
ma
Ana
lyst Here are some
recommendations to Improve the
situation.
Now, we will Measure to find out how bad it is!
Never fear, we shall Define this
problem!
Next, let’s Analyze to find the root causes. Continue detailed measurement, analysis and improvement design...
Fulfill Customer Proxy Role
Agile
Tea
mL
Iteration 1
Build initial measurement
systems (1-2 resources)
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 31
Process Management Maturity Curve
Process Business Process Delivery Focused
Process Improvement
Focused
Business Process Management
Focused
3. Whole of Life Approach Death of Projects
Good when:2. Integrated Approach
Lean Six Sigma & AgileMission-critical or long life systems are involvedMultidisciplinary teams exist around core processesCustomer needs evolve
idl1. Initial Approach
Agile w/tools
ty
rapidlyCompetitive pressures are intense
Mat
urit
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 32
Time
Model 3: Whole of Life Basics
The Whole of Life Model works like this:
Platform-based teams execute top-priority tasks in regular cadence
Fixed costDeep domain understanding
Ongoing measurement and analysis drives businessLSS skill set is held by business managementExtensive customer experience feedback mechanisms
Balance between maintenance and new development
Ideal for mission-critical applications or non-IT business
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 33
management
Model 3: Whole of Life Details
Lean Six Sigma & Agile: Operational (Whole of Life)
Who needs projects anyway?
Lean Six Sigma & Agile: Operational (Whole of Life)
d U
sers
Use Product v3.0 Provide Feedback Use Product v3.1Use Product v3.0
Busi
ness
C
usto
mer
(s)
En
Provide Prioritized Business Needs
Provide Feedback
LSS
O
pera
tions
M
anag
erC
Update Process Control
mechanisms
Gather User Feedback:
Updated VOC/CTQs
Provide process recommendations
Analyze current performance
Measure Value delivered
…
Pla
tform
-B
ased
Agi
le
Team
Deploy Updated Products/Services
Iteration:EnhancementsMaintenance
…
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 34
A Case Study
Let’s take a quick look at some of the specific tools and techniques that we might utilize in a combined model…
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 35
Our Project CharterCASE
STUDY
Improve the process for new customers to sign up for financial management services.
OK, so what’s important?User needs (intuitive, quick, friendly, attractive)B i d (d t t t ti / ll)Business needs (data capture, user retention, up/cross-sell)Process needs (upstream/downstream workflow integration, data integration, business rule implementation)
So, we need to:Document the existing new account setup processes and supporting systems.systems.Identify and prioritize enhancements to the processes and underlying technical solution based on business and end user needs.Define and implement ongoing metrics that will tell us how the
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 36
p g gprocess is performing.
Our Business ContextCASE
STUDY
Suppliers Inputs Process Outputs Customers
S I P O CSuppliers Inputs Outputs Customers
Enter via specific channelF d d A tProspect Prospectp
Enter personal info
Select funds
Personal Information
Funded Account
Setup Confirmation
Prospect
Mail Room
Prospect
Fund Managers
Fraud Control
Enter financial info
Select preferences
Fund Selection Information
Prospect Information(Personal,
Financial, Fund, Preferences)
Customer Service
Mail Room
MarketingSelect preferences
Account funding
Detect fraud
Client Interaction Preferences Money
Detect fraud
Mail account info
Marketing Channel Financial
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 37
gAttributionInformation
Our Critical Constraints & Obvious OpportunitiesCASE
STUDY
This area presents an obvious opportunity for improving both
internal efficiency and
This area contains the most customer interaction, and huge
variation. Also, benchmarks
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 38
internal efficiency and customer satisfaction.
,show that it dramatically lags
competitive standards.
Our Critical MeasuresThese are some metrics
CASE STUDY
Req. Type: Metric Correlation(Strong 9 ns tio
ns
ntio
ns
ks nlin
e pr
oces
s
ntire
pro
cess
nt requ
est f
or h
elp
on ra
ting
Current survey data tells us that these are the
most important quality factors to our Internal &
that we could use to gauge how well we’re
doing. Which ones tell the story best?
y(ExpectedExciting)
(Strong - 9Medium - 3Weak - 1)
# of
onl
ine
drop
outs
# of
onl
ine
erro
rs
# ca
lls fo
r hel
p
# of
lega
l int
erve
ntio
# of
con
trol i
nter
ven t
# of
fund
ing
inte
rven
# of
ser
vice
cal
lbac
k
Tim
e to
com
plet
e on
Tim
e to
com
plet
e en
Tim
e to
fund
acc
oun
Tim
e to
resp
ond
to r
Cus
tom
er s
atis
fact
iofactors to our Internal & External Customers.
External (Customer) QualityExpected Web site is easy to use 9 3 9 1 3 3 9 9 9 3 1 9Expected Customer representative is readily available via phone 1 1 1 1 1 1 1 1 3 1 3 9Exciting Customer representative is readily available via chat 1 1 1 1 1 1 1 1 3 1 3 3Expected Representatives treat me well 1 1 1 1 1 1 1 1 1 1 1 9Expected Account options are easy to understand 9 9 1 3 9 9 9 9 3 3 1 9Expected Investment options are easy to understand 9 9 1 3 9 9 9 9 3 3 1 9Expected Extended information is easy to find 9 9 1 3 9 9 9 9 3 3 1 9Expected The process is fast and efficient 9 1 3 1 1 1 3 9 9 9 1 9Exciting I know up front what information is required 9 9 3 3 9 9 9 9 3 3 1 3Exciting I know up front how much time it should take 9 9 1 3 9 9 9 9 3 3 1 3Expected Page response time is good 3 1 3 1 1 1 3 3 3 1 1 3Exciting The process is built around my personal goals 3 3 3 1 1 1 3 3 3 3 1 9Expected Site is accessible to disabled users 3 1 3 1 1 1 1 1 1 1 1 3pExpected My data is secure 3 1 1 3 1 1 1 1 1 1 1 9Exciting The Web site is visually appealing 1 1 1 1 1 1 1 3 1 1 1 3Internal QualityExpected Regulatory requirements are met 1 1 1 9 9 9 3 1 1 3 1 1Expected Fraudulent accounts are controlled 1 3 1 3 9 3 1 1 1 9 1 1Exciting The system is easy to modify and expand 1 1 1 1 1 1 1 1 1 1 1 1Expected System is reliably available 3 1 1 1 1 1 1 9 9 9 1 3
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Expected System is reliably available 3 1 1 1 1 1 1 9 9 9 1 3Metric Importance 85 65 37 41 77 71 75 89 61 59 23 105
Our Critical Measures (Cont.)
We could choose to
CASE STUDY
120
We could choose to measure many things, but these few are the most telling.
60
80
100
0
20
40
omer
satis
faction
ratin
g
omple
te onli
ne pr
ocess
# of o
nline
dropo
uts
# of co
ntrol in
terve
ntion
s
# of s
ervice
callb
acks
of fun
ding i
nterve
ntion
s# o
f onli
ne er
rors
omple
te enti
re pro
cess
Time t
o fun
d acc
ount
# of le
gal in
terventi
ons# c
alls for
help
pond
to re
quest
for he
lp
Custom
Time t
o com # o
#
# o
Time t
o com #
Time t
o resp
o
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Our Critical Measures (Cont.)CASE
STUDY
Project Y Project Y Metric/MeasureMetric/Measure
Operational DefinitionOperational Definition Performance TargetPerformance Target Tolerance Tolerance LimitsLimits
Time to complete Elapsed Time from Login Landing to 10 minutes < 20 minutesTime to complete online process
Elapsed Time from Login Landing to Receipt of Final Confirmation
“Elapsed Time” = Absolute difference between Login Landing & Receipt of Final
10 minutes < 20 minutes
between Login Landing & Receipt of Final Confirmation times (Minutes:Seconds)
“Login Landing” = Point in time when h l i j prospect reaches login.jsp page
(Minutes:Seconds)
“Receipt of Final Confirmation” = Point in time when confirmation.jsp page is fully loaded (Minutes:Seconds)
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Other LSS & Agile Joint Activities
Backlog Prioritization (QFD)What Backlog items will contribute most to our defined Value (priorities)?(p )
Value Measurement (Process Capability, Analysis)How are we doing against our goals so far?Wh t th k f t th t t ib ti t What are the key factors that are contributing to our success/failure?
Control Strategy (FMEA, Control Plans)gy ( , )What are some of the major risks in our project’s host processes that we should consider?What is the relative priority of these risks?
Scenario Planning (QFD, Simulation, Prototyping) When we have multiple ways to address a problem, which is best?
Current Process
1.0
ProcessScenario 2
1.5
ProcessScenario 1
1.3
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Roles & Responsibilities
Product Owner Accountable for success or failure of project
Prioritizes the Product Backlog
Empowered to make decisions for all customers and usersp
Presents and explains Product Backlog to team
LSS AnalystLSS Analyst Quantifies project value based on few key metrics
Provides “voice of the process” for Product Backlog prioritizationp g p
Facilitates feedback from end users and related process owners
Acts as customer proxy to team
Assists with operational integration of project improvementsp g p j p
Scrum Team Estimates work level of effort
Executes top-priority items on Product Backlog
Accountable for meeting sprint/iteration commitmentsccou table o eet g sp t te at o co t e ts
ScrumMaster Responsible for the process
Responsible for maximizing team productivity
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Sets up and conducts meetings
Representative to management and team
General Implementation Guidelines
Gaps Combined Lean Six Sigma & Agile Solutions
At the portfolio level:
Arbitrary and inconsistent Map core processes touched by existing and Arbitrary and inconsistent project selection criteria
Map core processes touched by existing and upcoming projectsSelect new projects based on critical process constraints
Poor coordination between related projects
LSS Black Belts coordinate process interactions across projects, especially in different departments within the same value streamp
Unfocused approach to risk management
Build risk mitigation factors directly into project portfolio selection criteriaUse Lean Six Sigma tools to discover and control root causes within Agile projects
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General Implementation Guidelines
Gaps Combined Lean Six Sigma & Agile Solutions
Within Agile projects:
No quantification of project Base project value on extrapolation of key No quantification of project value
Base project value on extrapolation of key process metricsLSS Black Belt tracks project value generation
Customer difficulty in providing clear requirements
LSS Black Belt acts as customer proxy, assists with translating high-level goals to effective user stories
Inconsistent alignment with highest-priority process needs
LSS aligns actions with top-priority customer (hence process) needsAgile supports test-and-learn approach through early operational exposure
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General Implementation Guidelines
Gaps Combined Lean Six Sigma & Agile Solutions
Within Lean Six Sigma projects:
No incremental delivery of Use iterative delivery to quickly address “low No incremental delivery of business value
Use iterative delivery to quickly address low hanging fruit,” quantify value with LSS
Limited scope of analysis and opportunity for
Do coarse definition, measurement & analysis to get top priorities up front then more and opportunity for
measurementto get top priorities up front, then more granular and focused analysis during each iterationAnalysis takes place in parallel to delivery (LSS l k l l k 2 h d f Black Belt is looking 1-2 iterations ahead of
delivery team)
Insufficient linkage to LSS Black Belt ensures that high-level process gexecution of improvement recommendations
g precommendations are translated into effective implementationsImprovement effectiveness is tested both before (prototyping spikes) and after (usability
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before (prototyping, spikes) and after (usability testing, process analysis) implementation
Getting Started
Some specific steps that you can try now are noted below.
Business Context:Business Context:Use high-level mapping tools (SIPOC, Value Stream Map) to “see the whole picture”Use lower-level maps as appropriate to illustrate system interactions with business processesbusiness processes
Quantified Value:Integrate high-level Define and Measure techniques into up-front Agile Di S i ( 1 k)Discovery Session (~1 week)
Determine key process metrics, where they don’t exist, then drill down to aligned project metricsBuild measurement systems at start of project, refine over time
Process & Customer Perspective:Team with existing process experts to supply Process Coaches to Agile projectsUse Process Coaches as customer proxies, and to facilitate end user feedback
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 47
IV Di iIV. Discussion
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 48
Contact Information
Arlen Bankston PHONE: 703 / 631 6600Arlen [email protected]
PHONE: 703 / 631.6600
WEB: http://www.ccpace.com
MAIL: 4100 Monument Corner Dr., Suite 400
Fairfax, VA 22030,
(c) 2001, C.C. Pace Systemswww.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 49