How to improve flow efficiency, remove the red bricks Agile2014

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Do you want to improve end-to-end feature lead-time? It is not a question of working harder. It is a question of first removing the feature wait time, the red bricks.

If you would build an end-to-end timeline for your features using red, yellow and green LEGO bricks. Where:

* Red = Non value adding waiting time
* Yellow = Non value adding activates required due to how work is organized
* Green = Value adding activities of real customer value

How would your feature end-to-end timeline look like? In most cases, you will have less than 20% green and yellow bricks and more the 80% red bricks.

In this session, you will be see how flow efficiency can be drastically improve in two concrete examples from two different domains.

First, you will see how a Swedish Breast Cancer Clinic drastically improved flow efficiency and reduced patient wait time by focusing on removing the red and yellow bricks.

In the second example, you will see how a Product Development Test Organization reduced lead-time and created time for improvements by focusing on improving flow efficiency.

We will take a close look at the three laws that define the performance of all processes:

* Little’s Law
* Law of bottlenecks
* Law of variation

By understanding how the three laws governs the performance of your processes, we can look at ways to improve your flow efficiency.

When time is gone, it is gone. Time to start removing the red and yellow bricks

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How to improve flow efficiency, remove the red bricks Agile2014

  1. 1. Håkan Forss hakan.forss@avegagroup.se @hakanforss http://hakanforss.wordpress.com/
  2. 2. Håkan Forss Lean/Agile Coach The Plumber @hakanforss Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  3. 3. Agile/Scrum/XP Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  4. 4. Lean, Kanban & Flow Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  5. 5. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  6. 6. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  7. 7. I’m a huge LEGO fan! DISCLAIMER LEGO® is a trademark of the LEGO Group, which does not sponsor, authorize or endorse this presentation. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  8. 8. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  9. 9. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  10. 10. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  11. 11. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand
  12. 12. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  13. 13. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  14. 14. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  15. 15. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  16. 16. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  17. 17. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  18. 18. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  19. 19. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  20. 20. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  21. 21. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  22. 22. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  23. 23. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  24. 24. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  25. 25. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  26. 26. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  27. 27. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  28. 28. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  29. 29. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  30. 30. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  31. 31. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  32. 32. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  33. 33. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  34. 34. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  35. 35. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  36. 36. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  37. 37. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  38. 38. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  39. 39. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  40. 40. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  41. 41. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  42. 42. > 1000 hours < 60 hours Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  43. 43. A Question of focus Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  44. 44. Strategy to increase utilization Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  45. 45. Strategy to fulfill needs a.s.a.p. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  46. 46. Niklas Modig Stockholm School of Economics @LeanOnMyself Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  47. 47. Strategytoincreaseutilization Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  48. 48. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  49. 49. Strategy to fulfill needs a.s.a.p. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  50. 50. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  51. 51. Low utilization Short lead-times Low Work-In-Process Small batches Focus on customer value Little waiting for flow unit Fast to respond to change High utilization Long lead-times High Work-In-Process Large batches Focus on unit cost Lots of waiting for flow unit Slow to respond to change Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  52. 52. Lean Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  53. 53. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  54. 54. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  55. 55. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  56. 56. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  57. 57. Which process is most expensive? ≥ Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  58. 58. Flow efficiency in numbers Usually 1-5% value added of total lead-time 20% value added is a high number Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  59. 59. How many and bricks do you have? Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  60. 60. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  61. 61. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  62. 62. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  63. 63. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  64. 64. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  65. 65. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  66. 66. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  67. 67. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  68. 68. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds
  69. 69. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  70. 70. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  71. 71. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  72. 72. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  73. 73. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds
  74. 74. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  75. 75. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  76. 76. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  77. 77. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  78. 78. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  79. 79. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  80. 80. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  81. 81. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  82. 82. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  83. 83. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  84. 84. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  85. 85. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  86. 86. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  87. 87. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  88. 88. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  89. 89. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  90. 90. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  91. 91. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  92. 92. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  93. 93. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  94. 94. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  95. 95. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  96. 96. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  97. 97. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  98. 98. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  99. 99. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Support team responds Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  100. 100. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  101. 101. We need to Shift our focus Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  102. 102. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  103. 103. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  104. 104. BUSY WORKERS High Resource Efficiency Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  105. 105. BUSY FLOW UNITS High Flow Efficiency Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  106. 106. Q & A Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  107. 107. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  108. 108. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  109. 109. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  110. 110. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  111. 111. Use historical data Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  112. 112. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  113. 113. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  114. 114. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  115. 115. How to improve Flow Efficiency? Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  116. 116. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Start with the bricks Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  117. 117. Non value adding bricks: Wait time Waiting in a queue Waiting for a decision Waiting on dependency Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  118. 118. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Then take on the bricks
  119. 119. Non value adding bricks: Required waste Over processing Backlog maintenance Reporting and status meetings Rework due to Defects Handovers Long lead-times Lack of understanding the requirements Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  120. 120. Yes!! But how? Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  121. 121. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  122. 122. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  123. 123. We need to Shift our focus Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  124. 124. From local awareness… Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  125. 125. ..to global awareness Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  126. 126. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  127. 127. …to a shared and visual understanding of End-To-End flow Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  128. 128. We need to Shift our focus Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  129. 129. From big batch, low frequency… Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  130. 130. …to small batches with high frequency Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  131. 131. Reducing batch size Smaller features Smaller slices first, MMF, MVP second Deliver continuously, or more often Avoid projects Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  132. 132. We need to Shift our focus Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  133. 133. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  134. 134. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  135. 135. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  136. 136. Blockers and Impediments are like Gold and Gems for improving flow in your process Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  137. 137. The three ”laws” Little’s Law Law of bottlenecks Law of variation Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  138. 138. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  139. 139. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  140. 140. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  141. 141. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  142. 142. Little’s Law Work-in-Process Throughput Lead Time = Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  143. 143. Little’s Law 12 12 / min 1 min = Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  144. 144. Little’s Law 6 12 / min 0.5 min = Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  145. 145. Little’s Law 24 12 / min 2 min = Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  146. 146. ABC ABC ABC AAA BBB CCC Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  147. 147. ABC ABC ABC AAA BBB CCC
  148. 148. ABC ABC ABC AAA BBB CCC Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  149. 149. Time Capability 100% Utilization planed at 70% Plan for less than 100% utilization Inspired by Mårten Pehrson Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  150. 150. Time Capability 100% Lower planned utilization Inspired by Mårten Pehrson Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  151. 151. Lead-time Insurance Time Capability 100% Utilization planed at 70% Acts as an insurance policy for shorter lead-time Inspired by Mårten Pehrson Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  152. 152. Options Time Capability 100% Utilization planed at 70% Creates option to do the important things when you need it Inspired by Mårten Pehrson Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  153. 153. Time Capability 100% Utilization planed at 70% Creates the time for increasing capability Inspired by Mårten Pehrson Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  154. 154. Time Capability 100% Utilization planed at 70% Plan for less than 100% utilization Inspired by Mårten Pehrson Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  155. 155. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  156. 156. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  157. 157. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  158. 158. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  159. 159. Lowering the water level uncovers process improvement opportunities Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  160. 160. Lower Work-In-Process Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  161. 161. The three ”laws” Little’s Law Law of bottlenecks Law of variation Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  162. 162. Law of Bottlenecks Every process has one Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  163. 163. Capacity = 6 Capacity = 4 Capacity = 6 Throughput = 4 You can’t go faster than your bottleneck Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  164. 164. Equal too or greater capacity in front You can go as fast as your bottleneck You can’t go faster than your bottleneck Capacity => 4 Capacity = 4 Capacity > 4 Throughput = 4 Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  165. 165. Full use of a higher capacity in front of the bottleneck will make lead-time go up You can’t go faster than your bottleneck Capacity = 6 Capacity = 4 Capacity > 4 Throughput = 4 Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  166. 166. Equal to or greater capacity after You can go as fast as your bottleneck You can’t go faster than your bottleneck Capacity => 4 Capacity = 4 Capacity >= 4 Throughput = 4 Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  167. 167. Higher capacity after the bottleneck will not improve throughput over time You can’t go faster than your bottleneck Capacity => 4 Capacity = 4 Capacity >= 4 Throughput = 4 Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  168. 168. Process stage without WIP Limits Demand Stage 1 Stage 2 Stage 3 WIP Limit WIP Limit Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  169. 169. Process stages without WIP Limits Demand Stage 1 Stage 2 Stage 3 WIP Limit WIP Limit Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  170. 170. Demand Stage 1 Stage 2 Stage 3 WIP Limit WIP Limit Process stages without WIP Limits Nobackpressure Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  171. 171. Demand Stage 1 Stage 2 Stage 3 WIP Limit WIP Limit Stage 2 Set WIP Limits on every process stage! Backpressure WIP Limit Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  172. 172. Setting first WIP Limits Low Organizational friction High Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  173. 173. Adjust WIP 20-30% Identify the problems Resolve the problems Stabilize processRepeat Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  174. 174. The three ”laws” Little’s Law Law of bottlenecks Law of variation Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  175. 175. Low variation Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  176. 176. High variation Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  177. 177. Low variation Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  178. 178. High variation Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  179. 179. Common sources of variation Large batches Ad-hoc processes Swarming on work Load balancing processes Uneven arrival rate of work Uneven work duration Uneven availability of capacity Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  180. 180. Reduce unnecessary process variation Use a mixed feature portfolio Remove iterations, or reduce length Avoid Ad-hoc processes Swarming on work Loadbalancing processes Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  181. 181. Time Capability 100% Utilization planed at 70% Plan for less than 100% utilization Absorbs unwanted variation Inspired by Mårten Pehrson Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  182. 182. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  183. 183. Improvements are experiments Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  184. 184. Puff Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  185. 185. Oh, I did NOT expect that! Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  186. 186. The sound of learning Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  187. 187. Hypothesis Prediction Experiment Observation Learning Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  188. 188. Prediction Observation Observation Hypothesis Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  189. 189. Expect at least 50% of the experiments will not give the expected result This is when we REALLY learn! Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  190. 190. Daily work Delivering value Improving the work Make improvements and changes in small batches Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  191. 191. Plan • Define hypothesis • Make Prediction Do • Run Experiment • Closely observe Check • What did we learn? Act • Update or new hypothesis I told you so! Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  192. 192. Actively encourage an experimentation culture Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  193. 193. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  194. 194. “A bad system will beat a good person every time.” W. Edwards Deming Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  195. 195. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  196. 196. Q & AHåkan Forss Mail: hakan.forss@avegagroup.se Twitter: @hakanforss Blog: http://hakanforss.wordpress.com Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  197. 197. We are too busy No thanks! Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  198. 198. Don’t Be(e) a busy worker! Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  199. 199. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  200. 200. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  201. 201. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  202. 202. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  203. 203. Great work Maria! Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com Just a few more shots
  204. 204. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  205. 205. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  206. 206. Demand Stage 1 Stage 2 Stage 3 WIP Limit WIP Limit Stage 2 Set WIP Limits on every process stage! Backpressure WIP Limit Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com
  207. 207. Non value adding: Wait time Non value adding: Required waste Value adding: Actual demand Why Work-In-Process and not Work-in-Progress? Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com You tell me!
  208. 208. Created by Håkan Forss @hakanforss http://hakanforss.wordpress.com

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