Understanding Lean IT


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Benefits of Lean IT and it's importance.

The world is a merry-go-round and you can't get off. Customers are becoming more demanding, markets are becoming more customised, and product life-cycles that are getting shorter are just a few of the reasons why Lean could be important to you. As the demands on our processes increase they evolve and adapt accordingly which often results in processes that end up inefficient and wasteful. Lean is about challenging the way things are done and opening our eyes to that waste and inefficiency. The environment in which an organization operates will continue to change; Lean can help organizations meet the challenge.

Lean can provide an organization with a clear competitive advantage since the correct application of the Lean principles will realise substantial benefits that include:

- Greater productivity
- Greater throughput
- Improved quality
- Reduced cycle times
- Less fire-fighting
- Smoother operation
- Reduced operating costs

CTE Solutions' preferred Lean IT training provider Snowdon Consulting gave this amazing presentation in our Toronto Office on April 25th, 2014. Click the below link to get a copy of the presentation used during this seminar.


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Understanding Lean IT

  1. 1. Page  1   SnowdonConsulting Welcome to the Lean IT Bootcamp April  25,  2014  
  2. 2. Page  2   SnowdonConsulting Getting to Know You…. Your  Role?   •  IT  Technical  Resources     •  Developer,     •  Network/Systems/Database  Administrator,     •  Enterprise/Technical/Solution  Architect,     •  Network/Systems/QA/Test  Engineer,     •  Etc...   •  IT  Project  Resources     •  PM/PMO   •  Business  Analyst   •  Etc   •  IT  Management  Resources     •  IT  Manager/Sr.  Mgr   •  IT  Leadership  (Director  or  higher)   •  Etc..   •  Other  Roles   Your  Knowledge  of  Lean/Six  Sigma   •  Heard  of  It;     •  Worked  With  It;   •  CertiYied  GB  or  BB  
  3. 3. Page  3   SnowdonConsulting What I want to get out of this seminar
  4. 4. Page  4   SnowdonConsulting Agenda •  What  is  Lean?   •  Why  Lean  IT?   •  Learning  to  See  Waste   •  Linking  to  ITIL   •  Q&A  
  5. 5. Page  5   SnowdonConsulting Why  does  the  IT  Dept   exist?  
  6. 6. Page  6   SnowdonConsulting Lean Thinking •  Based  on  the  Toyota  Production  System,   created  by  Taichi  Ohno   •  A  principle  driven,  tool  based  philosophy   that  focuses  on  eliminating  waste  so  that  all   activities/steps  add  value  from  the   customer’s  perspective.   •  Popularized  in  North  America  and  Europe   by  the  book  Lean  Thinking     Our  Session  today  is  about  Learning  to  See  waste…   and  recognizing  how  it  affects  IT  Services  
  7. 7. Page  7   SnowdonConsulting Goal of a Lean Organization Create  the  ability  to:     1.  Deliver  the  exact  product  /   service   2.  In  the  exact  quantity     3.  With  the  exact  quality  that  the   customer  needs     4.  Exactly  when  they  need  it  
  8. 8. Page  8   SnowdonConsulting Lean Management Thinking 1.  Base  you  management  decisions  on  a   long-­‐term  philosophy,  even  at  the   expense  of  short  term  Yinancial  goals   2.  Create  continuous  process  Ylow  to  bring   problems  to  the  surface   3.  Use  ‘pull’  systems  to  avoid   overproduction   4.  Level  out  the  workload   5.  Build  a  culture  of  stopping  to  Yix   problems,  to  get  quality  right  the  Yirst   time  
  9. 9. Page  9   SnowdonConsulting 6.  Standardized  tasks  are  the  foundation  of   continuous  improvement  and  employee   empowerment   7.  Use  visual  control  so  no  problems  are   hidden   8.  Use  only  reliable,  thoroughly  tested   technology  that  serves  your  people  and   processes   9.  Grow  your  leaders  who  thoroughly   understand  the  work,  live  the  philosophy   and  teach  it  to  others   Lean Management Thinking
  10. 10. Page  10   SnowdonConsulting 10.  Develop  exceptional  people  and  teams   who  follow  your  company’s  philosophy   11.  Respect  your  extended  network  of   partners  and  suppliers  by  challenging   them  and  helping  them  to  improve   12.  Go  and  see  for  yourself  to  thoroughly   understand  the  situation   13.  Make  decisions  slowly  by  consensus,   thoroughly  considering  all  options;   implement  decisions  rapidly   14.  Become  a  learning  organization  through   relentless  reYlection   Lean Management Thinking
  11. 11. Page  11   SnowdonConsulting Five Lean Principles The  continuous  movement  of   products,  services  and   information  from  end  to  end   through    the  process   3   Establish   Flow   The  complete  elimination   of  waste  so  all  activities   create  value  for  the   customer   5   Work  to   Perfection   DeAine  value  in  from  the   customers  perspective  and   express  value  in  terms  of  a   speciAic  product   1   Specify  Value   2     Map  the     Value  Stream   Map  all  of  the  steps…value   added  &  non-­‐value  added… that  bring  a  product  of   service  to  the  customer   Nothing  is  done  by  the  upstream  process   until  the  downstream  customer  signals   the  need   4   Implement   Pull  
  12. 12. Page  12   SnowdonConsulting Why Lean IT? – The Role of IT is Changing! •  Mobile,  cloud  and  pervasive   computing  technologies  will   fundamentally  shift  the   expectations  and  roles  of  IT  in  the   enterprise   •  The  role  of  IT  will  move  from  one   of  managing  physical  assets  to  that   of  being  a  broker  of  IT  services   from  inside  and  outside  to  satisfy   business  needs  
  13. 13. Page  13   SnowdonConsulting Why Lean IT? – To Streamline IT Service Delivery and Deliver Value to the Customer Faster
  14. 14. Page  14   SnowdonConsulting Why Lean IT? – Free Up Time to Focus More on Innovation •  Application,  server  and  storage   silos  and  complexity  have  pushed   most  organizations  into  an  IT   spending  pattern  where  the  bulk   of  their  budget  is  required  to   ‘keep  the  lights  on’   •  Innovation  of  services  is  being   sacriYiced  to  keep  current   services  operational   •  There  is  a  gap  between  what  IT   can  deliver  and  what  the   organization  needs!     New   Innovations,   30%   Ongoing  IT   Operations,   70%   Typical  Spending  Pattern  in  an  IT   Dept   IT  Sprawl  creates  complexity  which  is  expensive   and    slows  the  delivery  of  value  to  the  customer  
  15. 15. Page  15   SnowdonConsulting What does Lean IT really mean? Lean  IT  means:   •  Reduce  Steps   •  Reduce  Errors   •  Reduce  Complexity   •  Increase  IT  Agility   •  Free  Up  the  Capacity  of  IT  to  focus  on  Innovation     Which  leads  to:   •  Increased  Ratio  of  Planned  to  Unplanned  Work   •  Increased  Mean  Time  Between  Failure  (MTBF)   •  Reduced  Mean  Time  To  Release  (MTTR)   •  Reduced  Mean  Time  To  Resolve  (MTTR)   •  Increased  Availability   •  Increased  %  of  Successful  Changes   •  Increased  Server  to  Sys  Admin  Ratio   •  Increased  %  Effort  Deployed  Early  in  Change-­‐Release  Cycle   •  Improved  Ratio  of  Ongoing  Support  Costs  to  Innovation  Costs     •  Improved  employee  engagement  and  productivity  
  16. 16. Page  16   SnowdonConsulting What Lean IT is Not •  A  replacement  for  proven  engineering,   software  design  and  related  technical   principles  and  practices   •  Bad  code  is  still  bad  code   •  Poor  engineering  design  is  still  poor  engineering   design   •  A  substitute  for  leadership  and  people   management  activities   •  Leaders  still  need  to  lead,  set  vision  and  align   people/resources  around  important  goals   •  Management  activities  still  need  to  be  focused  on   efYicient  use  of  resources/people  to  achieve  goals   •   A  substitute  for  a  technology  strategy  and   vision  for  the  organization  
  17. 17. Page  17   SnowdonConsulting Consider  the  following:  You  are  a   Green  Belt  touring  a  Service  Desk.   They  had  done  a  lot  of  work  to  ‘tune’   the  process.    The  place  is  humming   with  activity  as  you  tour  the  Service   Desk,  your  guide  proudly  shows  you   the  team  in  action.             Turning  to  you  he  exclaims.  “Six   minutes  to  resolve  a  ticket.    Can  you   believe  it?!?    How  could  you  ever   improve  a  process  running  as   smoothly  as  this!”   Scenario
  18. 18. Page  18   SnowdonConsulting How  would  you  respond  to  the   the  guide?    
  19. 19. Page  19   SnowdonConsulting Lean Definitions 1.  Value  Added   •  Value  is  a  product  or  service  that  the  customer  is   willing  to  pay  for  e.g..  Processing  a  loan,  printing   cheques  etc.   2.  Non  Value  Added   •  An  activity  that  the  customer  would  be  unwilling   to  pay  for  in  isolation  eg.  Waiting  times,  checking   work,  correcting  errors     3.  Value  Enabling  or  Business  Value  Added   •  An  activity  that  is  required  to  operate  the   business  but  the  customer  is  unwilling  to  pay  for,   eg.,  budget  tracking,  internal  controls.  
  20. 20. Page  20   SnowdonConsulting Value Added Ratio (VAR) •  A  key  ratio  that  you  should  calculate  is   the  Value  Added  Ratio  (VAR)   •  Most  processes  can  quickly  achieve  a   50%  reduction  in  lead  time  by  focusing   on  waste  elimination   VAR  (%)  =   Total  Time  of  VA  Activity   Total  Process  Cycle  Time  
  21. 21. Page  21   SnowdonConsulting Let’s  revisit  the  scenario  at  the  Service   Desk.    You  observe  the  following:   •  There  is  a  queue  full  of  tickets  ready  to   be  worked  on   •  It  took  the  Service  Desk  Technical   Support  person    2  minutes  to  retrieve  the   ticket  from  the  queue  and  get  ready  to   work  on  it   •  The  actual  troubleshooting  operation   took  2  minutes   •  Once  the  ticket  was  completed  it  was   moved  be  moved  to  another  queue  until   it  went  to  the  next  step  in  the  process.     This  took  2  minutes.     Scenario
  22. 22. Page  22   SnowdonConsulting Draw  a  simple  picture  of  this   process.     Calculate  the  VAR     Any  insights?  
  23. 23. Page  23   SnowdonConsulting You  are  looking  at  the  improve  the   mean  time  to  release.    You  have  been   told  that  it  takes  ‘way  too  long’.         You  have  measured  the  following   processes  and  collected  the  following   times:   Requirements  Gathering:  4  weeks   Development:  12  weeks   ConYiguration:  1  week   QA:  6  weeks   Release:  1  day     Scenario What  will  you  Yix   to  make  this   process  go  faster?  
  24. 24. Page  24   SnowdonConsulting Defining Value and Waste Time   Value  Added  Work   Non-­‐Value  Added  Work   Time     Would  you  believe  …   Typical  non-­‐value  to  value-­‐added  ratio  is  of  the  order  of  99:1     You  need  to  consider  the  entire  value  stream   After   Before   ReleaseQAConfigDevReq’s
  25. 25. Page  25   SnowdonConsulting Let’s Take 10! April  24,  2014  
  26. 26. Page  26   SnowdonConsulting •  Transport   •  Inventory   •  Motion   •  Waiting   •  Over-­‐production   •  Over-­‐processing     •  Defects/Inspection   People’s  Talents   Defining Waste Do  you  know  TIM  WOOD?  
  27. 27. Page  27   SnowdonConsulting Transportation and Conveyance •  Unnecessary  movement   of  materials,  or   information;  only  convey   materials  and  information   when  and  where  they  are   needed   •  Consumes  valuable   resources  and  takes  time   •  Safety  concerns  and   increases  damage   •  Capital  expenditures  
  28. 28. Page  28   SnowdonConsulting Transportation – Some IT Examples •  Walking  to/from  printer,  copier,  fax   machine,  Yiling  cabinet,  archival  storage   •  Providing  a  spreadsheet  or  report  to  more   people  than  actually  need  it   •  Needing  to  split  email  attachments  into   smaller  segments  due  to  Yile  size  limitations   •  Unnecessary  movements  of  electronic   information   •  Sending  attachments  rather  than  links  to   documents   •  On-­‐site  visits  to  resolve  system  issues  that   could  be  resolved  with  remote  monitoring   and  correction   •   Using  multiple  emails  for  dialogue  when  a   conference  call  or  face-­‐to-­‐face  meeting  is   more  effective  
  29. 29. Page  29   SnowdonConsulting Excess Inventory •  Inventory  that  is  not  needed,   is  wasted  (includes  raw   materials,  work  in  progress   and  Yinished  products   •  Increases  lead  time,   overhead  and  requires  space   •  Masks  poor  processes,   impacts  cash  Ylow   •  Moving  inventory  increases   chance  of  damage        
  30. 30. Page  30   SnowdonConsulting Excess Inventory – Some IT Examples •  Any  Backlog,  anything  in  a  Queue!   •  In  Inboxes   •  Old/obsolete  Yiles   •  Projects  that  are  not  being   considered,  but  still  on  the   project  list   •  Partially  completed  development   work   •  Uncoded  documentation   •  Unsynchronized  code   •  Untested  code   •  Undocumented  code   •  Undeployed  code   •  Multiple  software  code  objects  that   perform  the  same  function   •  Unused  software  licenses    
  31. 31. Page  31   SnowdonConsulting •  Any  motion  that  does  not   add  value   •  Stretching,  bending,   picking  up,  moving  can   ultimately  impact  quality   and  productivity     •  Relates  to  the  physical   layout  of  the  workspace   and  ergonomics.   Unnecessary Motion
  32. 32. Page  32   SnowdonConsulting •  Poor  user  interface  or   workYlow  design  that   causes  unnecessary   keystrokes,  mouse  clicks   or  navigation  steps   •  Searching  for  Yiles  at  your   desk  (electronic  of   physical)   Unnecessary Motion – Some IT Examples
  33. 33. Page  33   SnowdonConsulting Waiting •  Idle  time  between   operations,  is  100%  waste   and  can  be  attacked  simply   and  effectively  by  mapping   out  a  process   •  Adds  to  cycle  time   •  Consumes  valuable   resources   •  Increases  work  in  process   •  Slows  response  to  customer  
  34. 34. Page  34   SnowdonConsulting Waiting – Some IT Examples •  Slow  application  response   •  Delays  between  coding  and   testing   •  Overnight  batch  processing  of   data   •  Waiting  for  a  specialist  who  is   currently  working  on  another   task/project   •  Waiting  for  inputs  from  team   members   •  Delays  in  receiving,  transmitting   and  storing  information  
  35. 35. Page  35   SnowdonConsulting Over-Production •  Performing  any  task  without   considering  if  it  is  needed   •  Producing  more,  earlier  or  faster   than  is  needed  by  the  next   process  or  customer   •  Consumes  valuable  resources   not  immediately  needed,  builds   unnecessary  inventory  or  hides   process  problems  (bad  quality,   scheduling  &  delivery)  
  36. 36. Page  36   SnowdonConsulting Over-Production – Some IT Examples •  Too  many  or  ineffective  meetings!   •  Unnecessary  or  early  work   performed  due  to  unclear  priorities   •  Running  reports  that  no-­‐one  reads   •  Coding  functionality  that  is  not   utilized   •  Unnecessary  delivery  of  low-­‐value   applications  and  services   •  Running  more  tests  than  are   required   •  Capturing/storing  more  data  than  is   required  
  37. 37. Page  37   SnowdonConsulting Over-Processing •  Excessive  levels  of   approval,  over-­‐engineering,   adding  too  many   unnecessary  features   •  Consumes  valuable   resources   •  Creates  delay   •  Opportunity  for  more   defects  
  38. 38. Page  38   SnowdonConsulting Over-Processing – Some IT Examples •  Over  design  of  Software  apps   •  Over  automation  of  processes   •  Premature  technology   intervention  to  improve  a   process   •  Developing  complex  solutions  to   simple  or  non-­‐recurring   problems   •  Overly  complex  governance,   funding,  prioritization  and   control  processes  
  39. 39. Page  39   SnowdonConsulting Defects •  Any  aspect  of  a  product  or   service  which  does  not  meet   the  customer’s  requirements,   leads  to  rework,  delayed   output,  unhappy  customers,   or  even  lost  customers   •  Creating  and  correcting   defects  robs  resources,   “chokes”  Ylow,  and  must  be   minimized  or  eliminated    
  40. 40. Page  40   SnowdonConsulting Defects – Some IT Examples •  Application  bugs   •  Design  Ylaws   •  Data  inaccuracies/ inconsistencies   •  Unplanned  downtime   •  Any  hand-­‐off  between  teams  that   fails  to  meet  the  deYined  standard   •  Missing  info,  incomplete  info,   inaccurate  info   •  Outside  of  SLA/OLA    
  41. 41. Page  41   SnowdonConsulting Reflective Thinking What  are  some  of  the  wastes  in   my  process?    How  often  do  they   occur?    Do  people  realize  they   are  waste?    Which  ones  would   be  easy  to  Yix?  What’s  my  guess   as  to  the  VAR  in  my  process?  
  42. 42. Page  42   SnowdonConsulting Final Thoughts on Waste •  Waste  is  present  in  every  process.    Even  processes   that  seem  ‘efYicient’.   •  Waste  is  not  ‘seen’  in  a  meeting  room,  or  in  your   cubicle.    It  is  observed,  by  going  out  into  the   workplace,  to  the  places  where  the  teams  are   actually  doing  work.    The  place  we  call  the  Gemba.   •  To  Yind  waste,  you  must  look  for  it.    Gemba  walks   are  a  critical  part  of  improving  your  value  stream.     The  Gemba  walk  is  not  a  social  visit,  although  there   will  be  many  social  interactions.       •  Your  Gemba  walks  are  purposeful.    It  is  to  engage   with  the  teams  and  to  look  for  waste.    Once  you   learn  to  see  it,  you  will  see  it  everywhere.   •  Prioritize  your  waste  reduction  efforts.    Not  all   ‘waste’  contributes  equally  to  the  blockages  in  Ylow.     Focus  on  the  ‘big  hitters’  and  slowly  but  surely,   work  on  improving  them  –  PDCA!    
  43. 43. Page  43   SnowdonConsulting ITIL Lifecycle Processes
  44. 44. Page  44   SnowdonConsulting IMHO …. Critical ITIL Processes Change   Management   • Purpose:  Ensure  that   changes  are  recorded,   evaluated,  authorized,   prioritized,  planned,   tested,  implemented,   documented  in  a   controlled  manner   Incident   Management   • Purpose:  Restore  normal   service  as  quickly  as   possible,  and  to  minimize   the  adverse  impact  on   business  operations   Problem   Management   • Purpose:  to  prevent   problems  and  resulting   incidents  from  happening,   to  eliminate  recurring   incidents  and  to  minimize   the  impact  of  incidents   that  cannot  be  prevented   How  do  these   processes  relate?           Why  are  they   vitally  important   to  the  CIO?     How  does  Lean   connect  into  all   this?    
  45. 45. Page  45   SnowdonConsulting Examples of Lean IT Projects •  Reducing  the  lead  time  to  create  certain  types  of   reports   •  Reducing  the  %  of  servers  that  go  ‘dark’  on  key   asset  management  reports   •  Improving  the  Yirst  call  close  rates  at  the  Service   Desk   •  Increasing  the  reliability  and  automation  of  test   cases  to  reduce  MTTR   •  Reducing  the  number  of  incidents  that  are   requiring  key  resources  to  resolve   Focus  on  your  customers  Yirst,  then  analyze  how  your   people  and  processes  deliver  the  service.    Find  the  waste   and  eliminate  it  with  technology.  
  46. 46. Page  46   SnowdonConsulting Reflective Thinking In  reYlecting  on  everything   that  we’ve  covered,  which  one   thing  do  I  want  to  discuss  with   my  manager  tomorrow?    Why   did  I  choose  this  one  thing?  
  47. 47. Page  47   SnowdonConsulting Lean IT - Summary Lean  IT  is  a  way  of  thinking  and   doing  that:   •  Is  complimentary  to  existing  IT   methodologies  and  frameworks   •  Augments  the  skills  of  the  technical  teams   to  design,  build,  test  and  deploy  IT  Services   with  greater  efYiciency  and  effectiveness   •  Builds  upon  the  strengths  of  the  leaders  and   managers     •  Offers  a  speciYic  lens  to  guide  strategy  and   management  activities   •  Empowers  teams  and  individuals  to  solve   problems,  and  gives  them  the  tools  to  do  so  
  48. 48. Page  48   SnowdonConsulting Looking Ahead Lean  IT  –  Yellow  Belt  Training  &  CertiYication  (3  Days)   •  September,  2014,  Toronto   •  Winter  2015,  Toronto   April  24,  2014  
  49. 49. Page  49   SnowdonConsulting Thank You!! Good  luck  with  your  Lean  IT   journey.  
  50. 50. Page  50   SnowdonConsulting Paul Snowdon, BA, BASc, MBB Paul  is  a  thought  leader,  a  lecturer,  a   researcher  and  a  master  practitioner  who   specializes  in  making  teams  and  processes   more  efYicient,  effective  and  economical.   Paul’s  professional  career  includes  engineering  roles  at  General  Electric,  consulting  roles  with   PricewaterhouseCoopers  and  over  the  past  seven  years  he  has  been  working  and  consulting  in  the   IT  industry  on  a  variety  of  topics  including  post  merger  integration,  sales  force  enablement,   marketing  operations,  NPI  and  GTM  strategy  and  practices,  Lean  IT,  PMO  maturity  and  Lean  Six   Sigma  implementation  to  name  a  few.     Paul  is  a  Lean  Six  Sigma  Master  Black  Belt  who  has  led  enterprise-­‐wide  initiatives  in  manufacturing,   transactional  and  service  industries.      He  is  a  recognized  speaker,  author  and  instructor  of  Lean  Six   Sigma  process  re-­‐engineering  principles  and  is  the  LSS  Program  Leader  at  the  University  of  Toronto,   School  of  Continuing  Studies.    Paul  has  trained  and  coached  thousands  of  ‘belts’  and  is  a  Yirm  believer   in  the  power  of  people  to  solve  problems.     Paul  holds  undergraduate  degrees  in  History  and  Chemical  Engineering,  and  is  currently  pursuing   an  Doctorate  in  Business  Administration,  with  a  focus  on  Coaching  and  Leadership  practices  in  IT   Yirms.  
  51. 51. Page  51   SnowdonConsulting April  24,  2014   SnowdonConsulting Paul Snowdon BA, BASc, Master Black Belt Email: Paul@snowdonconsulting.ca www.snowdonconsulting.ca Direct: 416.453.4079