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    SMSWebinar2010

    Wednesday3rdNovember

    AchievingEnterpriseScaleAgilitywithLean

    P.GrantRule

    [email protected]

    ManagingDirector,SMSExemplarGroup,SpecialistsinEffecFveSystemsPerformance

    www.smsexemplar.com

    YourWebinarHost

    AlanShalloway

    [email protected]

    CEO,NetObjecFves

    www.netobjecFves.com

    WebinarPresenter

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    [email protected]

    @alshalloway

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    Enterprise Agility

    Lean thinking

    The Big Picture

    Where to start

    Summary

    AgendaAgenda

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    thinkingpoints

    1. Enterprise Agility2. Lean thinking3. The Big Picture4. Where to start5. Summary

    The business case for agility

    Product portfolio management

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    Agility of entireorganizations

    Requires team agility

    Enterprise AgilityEnterprise Agility

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    First Release

    InvestmentPeriod PaybackPeriod ProfitPeriod

    Breakeven

    Economics of Responsiveness

    from Denne and Cleland-Huang. Software by Numbers

    Cashflow

    Time

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    Staged Releases

    First

    Release

    Invest-

    ment

    Period

    Profit

    Period

    Pay-

    back

    Period

    Second

    Release

    Invest-

    ment

    Period

    Pay-

    back

    Period

    Breakeven

    Point

    Release 2 Net Return

    Cashflow

    Time

    Release 1 Net Return

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    Profit

    Period

    Investment

    Invest-

    ment

    Period

    Pay-

    back

    Period

    Breakeven

    Point

    Staged Releases

    Total Return

    Cashflow

    Time

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    Cashflow

    Breakeven

    SingleRelease

    First ReleaseFirst Release

    Time

    StagedReleases

    Increased Profit

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    Minimal MarketableFeatures

    Can try out new ideas

    Get revenue faster

    Greater scheduling flexibility

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    focusing on the known, valuable features

    gives greater certainty

    produces greater value

    lowers risk of mis-building and over-building

    Deliver

    in Stages when possible

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    PARETO

    Businessvalue

    realized

    releas

    e

    releas

    e

    releas

    e

    releas

    e

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    MINIMUM BUILD RELEASE

    Businessvalue

    realized

    Time

    releas

    e

    releas

    e

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    WATERFALL?

    Businessvalue

    realized

    Time

    releas

    e

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    BLEND

    Businessvalue

    realized

    Time

    releas

    e

    releas

    e

    releas

    e

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    thinkingpoints

    1. Enterprise Agility2. Lean thinking3. The Big Picture4. Where to start5. Summary

    Attending to time

    The Value Stream

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    Lean Principle

    Idea to Delivery

    Support &Feedback

    ProjectApproval

    ProjectStaffing

    ProjectDevelopment

    ProjectDeploy-

    ment

    VisioningSupport &Feedback

    ProjectDevelopment

    ProjectDeployment

    ProjectApproval

    ProjectStaffing

    Visioning

    Lean Principle

    $$$ Cost$$$ CostLean Principle

    Opportunity CostOpportunity Cost

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    BUSINESS VALUE

    PIPELINE

    Selecting what to work on Developing It

    Give Feedback

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    Support

    Customers

    Shared

    Components

    Shared

    Components

    ProductRelated

    ProductRelated

    Development

    Customer

    ProductManagers

    BusinessLeaders

    RegionalCoordinators

    Trainers&Educators

    ProductChampion(s)BusinessCapabilities

    SoftwareRelease

    SoftwareProduct

    NewRequirements

    ConsumpFon

    Concept

    Managemen

    t

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    1. Identify the actions taken in the value stream1. Identify the actions taken in the value stream

    Approve

    Request ReqtsSignOff

    Review Deploy

    Analysis

    Design Code Test

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    0.5 hrs 160 hrs8 hrs 8 hrs

    120 hrs 280 hrs 240 hrs

    100 hrs

    8 hrs2 hrs

    Approve

    Request ReqtsSignOff

    Review Deploy

    Analysis

    Design Code Test

    1. Identify the actions taken in the value stream

    2. Calculate calendar time for each action2. Calculate calendar time for each action

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    0.5 hrs 160 hrs8 hrs 8hrs

    120 hrs 280 hrs 240 hrs

    100 hrs

    8 hrs2 hrs

    Approve

    .1 hr avg

    Request0.5 hr avg

    Reqts60 hrs avg

    SignOff

    1 hr avg

    Review2 hrs avg

    Deploy3 hrs avg

    Analysis40 hrs avg

    Design40 hrs avg

    Code80 hrs avg

    Test40 hrs avg

    1. Identify the actions taken in the value stream

    2. Calculate calendar time for each action3. Calculate time actually worked on the action3. Calculate time actually worked on the action

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    Approve

    .1 hr avg

    Request0.5 hr avg

    Reqts60 hrs avg

    SignOff

    1 hr avg

    Review2 hrs avg

    Deploy3 hrs avg

    Analysis40 hrs avg

    Design40 hrs avg

    Code80 hrs avg

    Test40 hrs avg

    320 hrs 80 hrs 320 hrs 80 hrs

    80 hrs

    160 hrs 80 hrs 80 hrs 80 hrs

    1. Identify the actions taken in the value stream

    2. Calculate calendar time for each action3. Calculate time actually worked on the action

    4. Identify time between actions4. Identify time between actions

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    November3,10

    Approve

    .1 hr avg

    Request0.5 hr avg

    Reqts60 hrs avg

    SignOff

    1 hr avg

    Review2 hrs avg

    Deploy3 hrs avg

    Analysis40 hrs avg

    Design40 hrs avg

    Code80 hrs avg

    Test40 hrs avg

    320 hrs 80 hrs 320 hrs 80 hrs

    160 hrs 80 hrs 80 hrs 80 hrs

    1. Identify the actions taken in the value stream

    2. Calculate calendar time for each action3. Calculate time actually worked on the action

    4. Identify time between actions

    5. Identify any loop backs required5. Identify any loop backs required

    80 hrs

    65% defective

    Repeat 3X

    20% rejected

    Repeat 1X

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    1. Identify the actions taken in the value stream

    2. Calculate calendar time for each action3. Calculate time actually worked on the action

    4. Identify time between actions5. Identify any loop backs required

    6. Calculate Process Cycle Efficiency:6. Calculate Process Cycle Efficiency:AvgAvg Time WorkedTime Worked

    Total Cycle TimeTotal Cycle Time

    Approve

    .1 hr avg

    Request0.5 hr avg

    Reqts60 hrs avg

    SignOff

    1 hr avg

    Review2 hrs avg

    Deploy3 hrs avg

    Analysis40 hrs avg

    Design40 hrs avg

    Code80 hrs avg

    Test40 hrs avg

    320 hrs 80 hrs 320 hrs 80 hrs

    160 hrs 80 hrs 80 hrs 80 hrs

    65% defective

    Repeat 3X

    20% rejected

    Repeat 1X

    80 hrs

    PCE = = 14.9%PCE = = 14.9%509 hrs509 hrs

    3433 hrs3433 hrs

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    1. Identify the actions taken in the value stream

    2. Calculate calendar time for each action3. Calculate time actually worked on the action

    4. Identify time between actions5. Identify any loop backs required

    6. Calculate Process Cycle Efficiency:6. Calculate Process Cycle Efficiency:AvgAvg Time WorkedTime Worked

    Total Cycle TimeTotal Cycle Time

    Approve

    .1 hr avg

    Request0.5 hr avg

    Reqts60 hrs avg

    SignOff

    1 hr avg

    Review2 hrs avg

    Deploy3 hrs avg

    Analysis40 hrs avg

    Design40 hrs avg

    Code80 hrs avg

    Test40 hrs avg

    320 hrs 80 hrs 320 hrs 80 hrs

    160 hrs 80 hrs 80 hrs 80 hrs

    65% defective

    Repeat 3X

    20% rejected

    Repeat 1X

    80 hrs

    PCE = = 14.9%PCE = = 14.9%509 hrs509 hrs

    3433 hrs3433 hrs

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    1. Identify the actions taken in the value stream

    2. Calculate calendar time for each action3. Calculate time actually worked on the action

    4. Identify time between actions5. Identify any loop backs required

    6. Calculate Process Cycle Efficiency:6. Calculate Process Cycle Efficiency:AvgAvg Time WorkedTime Worked

    Total Cycle TimeTotal Cycle Time

    Approve

    .1 hr avg

    Request0.5 hr avg

    Reqts60 hrs avg

    SignOff

    1 hr avg

    Review2 hrs avg

    Deploy3 hrs avg

    Analysis40 hrs avg

    Design40 hrs avg

    Code80 hrs avg

    Test40 hrs avg

    0.5 hrs 160 hrs8 hrs 8hrs

    120 hrs 280hrs 240hrs

    100 hrs

    8 hrs2 hrs

    320 hrs 80 hrs 320 hrs 80 hrs

    160 hrs 80 hrs 80 hrs 80 hrs

    65% defective

    Repeat 3X

    20% rejected

    Repeat 1X

    80 hrs

    PCE = = 14.9%PCE = = 14.9%509 hrs509 hrs

    3433 hrs3433 hrs

    Time to Market

    The Core LeanMetric

    cycle time

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    he ales Value tream

    At start

    Sales: Sell fast!

    Devs: Deployment problems

    Afterwards

    Sales focus: # of successful

    deployments

    Customers happier

    20% dev team improvementw/o touching dev teams

    Development

    Deployment

    Sales

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    Which gives a better return?

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    1. Identify the actions taken in the value stream

    2. Calculate calendar time for each action3. Calculate time actually worked on the action

    4. Identify time between actions5. Identify any loop backs required

    6. Calculate Process Cycle Efficiency:6. Calculate Process Cycle Efficiency:

    Approve

    .1 hr avg

    Request0.5 hr avg

    Reqts60 hrs avg

    SignOff

    1 hr avg

    Review2 hrs avg

    Deploy3 hrs avg

    Analysis40 hrs avg

    Design40 hrs avg

    Code80 hrs avg

    Test40 hrs avg

    320 hrs 80 hrs 320 hrs 80 hrs

    160 hrs 80 hrs 80 hrs 80 hrs

    65% defective

    Repeat 3X

    20% rejected

    Repeat 1X

    80 hrs

    Approve.1 hr avg

    Request0.5 hr avg

    Reqts60 hrs avg

    Sign Off1 hr avg

    Review2 hrs avg

    Deploy3 hrs avg

    Analysis40 hrs avg

    Design40 hrs avg

    Code80 hrs avg

    Test40 hrs avg

    AvgAvg Time WorkedTime Worked

    Total Cycle TimeTotal Cycle Time

    0.5 hrs 160 hrs8 hrs 8hrs

    120 hrs 280hrs 240hrs

    100 hrs

    8 hrs2 hrs

    320 hrs 80 hrs 320 hrs 80 hrs

    160 hrs 80 hrs 80 hrs

    65% defectiveRepeat 3X

    20% rejectedRepeat 1X

    80 hrs

    80 hrs

    PCE = = 14.9%PCE = = 14.9%509 hrs509 hrs

    3433 hrs3433 hrs

    509 hrs509 hrs

    3433 hrs3433 hrs

    AvgAvg Time WorkedTime WorkedTotal Cycle TimeTotal Cycle Time

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    Now What?

    a ue treama ue ream

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    when do you

    know

    you have allthe pieces?

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    thinkingpoints

    1. Enterprise Agility2. Lean thinking3. The Big Picture4. Where to start5. Summary

    Team agility is only part of thepicture

    Big picture thinking is possible inAgile

    Failure modes of team agile

    What to attend to

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    TeamPro

    cess

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    Pareto vs

    Parkinsons

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    75% of organizations using Scrumwill not succeed

    in getting the benefits that they hope forfrom it.

    Ken Schwaber

    www.agilecollab.com/interview-with-ken-schwaber

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    WhY?

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    but the wrong problem

    Maybe weve got the right solution

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    Why Scaling DoesnWhy Scaling Doesnt Workt Work

    Starts at team levelMay not be your problem.

    Providing customer and business

    value is #1.

    Incomplete focus

    What works at the team level isnot what is needed at

    management and business level.

    Lacks common visionNeed a common vision across the

    entire organization; development

    teams view does not provide this.

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    egacy rgan za on:

    Matrix Resources to Projects

    Project1

    Project2

    Project3

    Project4

    ProjectN

    C

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    Lets Create a Pilot Project

    Project1

    Project2

    %

    Project3

    Project4

    ProjectN

    BusinessAnalyst,Architect,UsabilityExpert,

    Developer,Developer,Tester,Project

    ManagerExpert

    Experiencehasshownthatifyou

    createacrossfuncFonalco

    locatedteamyouwillimprove3x

    withoutchangingyourprocess.

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    Proper selection & sizingof projects

    Agile teams

    Coordination of teams Visibility

    WhatWhats Requireds Required

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    MAKE

    VALUE

    FLOW

    technic

    al

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    MAKEMAKEINCREMENTAL

    DELIVERY

    CREATIVELY SOLVINGTHEIR PROBLEMS

    QUALITY BUILT IN

    technic

    al

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    technic

    al

    VALUEVALUEPRIORITIZATIONBUSINESS

    ITERATIONS

    RELEASE PLANNING

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    FLOW

    VALUE STREAMVISUALIZATION

    IMPEDIMENT IMPACT

    WORKFLOW AS PROCESS

    technic

    al

    WITH

    ACCOUNTABILITYMANAGE (LIMIT)

    QUEUES

    VISUAL CONTROLS

    MANAGE FLOW

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    thinkingpoints

    1. Enterprise Agility2. Lean Thinking3. The Big Picture4. Where to start

    5. Summary

    Look at the value stream to decide One part affects others

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    Where Should

    You Start YourTransition to

    Agile?

    It Depends

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    See what yourimpediments are

    Address them

    Dont look just where thelight is better

    What to DoWhat to Do

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    delay

    delay

    ss toomanyprojectstoomanyprojects

    exceedingcap

    acityexceed

    ingcapacity

    defect

    sdef

    ects

    thrashingthrashing

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    ProductManagers

    BusinessLeaders

    RegionalCoordinators

    Trainers&Educators

    Customers

    ProductChampion(s)

    SharedComponents

    SharedComponents

    ProductRelatedProductRelated

    ProductRelated

    SoftwareRelease

    SoftwareProduct

    NewRequirements

    Capabilities

    Development

    Support

    CustomerBusiness

    Product Portfolio Management

    Managing hereCan

    reduce

    induced

    waste here

    Management

    ConsumpFon

    Concept

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    thinkingpoints

    1. Enterprise Agility2. Lean thinking3. The Big Picture4. Where to Start

    5. Summary

    Speed to Market Metrics

    Visibility Predictability

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    Improve your pre-cognitive abilities

    Lower the variation in

    your efficiency

    PredictabilityPredictability

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    copyright 2010 Net Objectives Inc.

    Thank You &Thank You &

    Questions!Questions!Register atwww.netobjectives.com/register

    Contact me at [email protected]

    Twitter tag @alshalloway

    Download the recording from the webinar archive at:www.smsexemplar.com/library/webinars

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    Events

    6thDec:MakingtheBusinessCaseforChange,1dayworkshop,London

    9thDec:DemysFfyingLean,Agile&Kanban,1dayseminar,London

    TbcJan:SMSWebbasedtraining:BasicsofAgileProjectManagement

    NetObjecFvesLeanAgileProjectManagement3daycourse,London

    23rd25thMarch2011

    Info:[email protected]

    www.smsexemplar.com

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    ASSESSMENTS

    CONSULTING

    TRAININGCOACHING

    Lean for

    Executives

    Product Portfolio

    Management

    Lean Management

    ProjectManagement

    Kanban / ScrumATDD / TDD / Design Patterns

    process technical