Managing Operations in a Slowdown Gautam Brahma January 28, 2009

Agenda Advantages Approach Innovation Cost Reduction Q&A

Advantages

Approach

Innovation

Cost Reduction

Q&A

Advantages Management attention Readiness for change Focus on essentials Reduced input costs: resources, products & services Professional learning

Management attention

Readiness for change

Focus on essentials

Reduced input costs: resources, products & services

Professional learning

Approach Greater effectiveness at lower cost: Innovation Collaboration platform “ We-Think” – Charles Leadbeater Directed ideation “ The New Age of Innovation” – C.K. Prahlad & M.S. Krishnan Service level assurance at lower cost: Cost Reduction “ Driving Down Costs” – Andrew Wileman

Greater effectiveness at lower cost: Innovation

Collaboration platform

“ We-Think” – Charles Leadbeater

Directed ideation

“ The New Age of Innovation” – C.K. Prahlad & M.S. Krishnan

Service level assurance at lower cost: Cost Reduction

“ Driving Down Costs” – Andrew Wileman

Innovation Upstream QA Design review Set Based Design: Prius 10 engines; 4/15 mths ROI 19 / 92% small to large projects Barry Boehm: USC Reports Large projects ( 2K to 512K SLOC; FP 10 to 100000 ) Decreasing share of construction (80% to 20%) Decreasing productivity (13 to 1.7 FP/M) Increasing defects (0.07 to 1.3 errors/FP) Steve McConnell: “Less is More” IEEE Software 1997; Capers Jones: “Applied Software Development” 2 nd Edn. McGraw Hill 1997

Upstream QA

Design review

Set Based Design: Prius 10 engines; 4/15 mths

ROI 19 / 92% small to large projects Barry Boehm: USC Reports

Large projects ( 2K to 512K SLOC; FP 10 to 100000 )

Decreasing share of construction (80% to 20%)

Decreasing productivity (13 to 1.7 FP/M)

Increasing defects (0.07 to 1.3 errors/FP)

Steve McConnell: “Less is More” IEEE Software 1997;

Capers Jones: “Applied Software Development” 2 nd Edn. McGraw Hill 1997

Innovation Upstream QA Collaborative Requirement Management “ Experimental Evaluation of Wiki Technology” Wu, Yang, Koolmanojwong, Boehm USC CSE 2008 Upfront Testing Test Case – Code relationship & Preventive Testing “ Competing on the Basis of Speed” Mary Poppendieck

Upstream QA

Collaborative Requirement Management

“ Experimental Evaluation of Wiki Technology” Wu, Yang, Koolmanojwong, Boehm USC CSE 2008

Upfront Testing

Test Case – Code relationship & Preventive Testing

“ Competing on the Basis of Speed” Mary Poppendieck

Innovation Sampling Across projects BU representation Effort coverage / headcount coverage, revenue potential, ‘strategic’ importance. Within projects Selective milestones, selective modules, “conditional health checks”

Sampling

Across projects

BU representation

Effort coverage / headcount coverage,

revenue potential,

‘strategic’ importance.

Within projects

Selective milestones,

selective modules,

“conditional health checks”

Innovation Workflow redesign New lifecycle models Product Development: Lean Software, Extreme Programming, SCRUM Blended organizational model Attribute-based selection: Team Size: No. of people Personnel: %level 1B/ 2&3 Criticality: Loss due to impact of defects Dynamism: %requirement changes / month Culture: %thriving on chaos (“Observations on Balancing Discipline & Agility” Richard Turner (GWU) & Barry Boehm (USC))

Workflow redesign

New lifecycle models

Product Development: Lean Software, Extreme Programming, SCRUM

Blended organizational model

Attribute-based selection:

Team Size: No. of people

Personnel: %level 1B/ 2&3

Criticality: Loss due to impact of defects

Dynamism: %requirement changes / month

Culture: %thriving on chaos

(“Observations on Balancing Discipline & Agility” Richard Turner (GWU) & Barry Boehm (USC))

Innovation Workflow redesign (Contd.) Tool Deployment Automation: Test automation, Code Analysis (“Technical Debt” management ) Standardization: Estimation, Metrics collection Process Simplification Elimination : Value metrics base Cycletime reduction: Self-certification with random check Project Formality Worksheet: DOD-STD-7935: Score-based selection on documentation deliverables

Workflow redesign (Contd.)

Tool Deployment

Automation: Test automation, Code Analysis (“Technical Debt” management )

Standardization: Estimation, Metrics collection

Process Simplification

Elimination : Value metrics base

Cycletime reduction: Self-certification with random check

Project Formality Worksheet: DOD-STD-7935: Score-based selection on documentation deliverables

Cost Reduction Outsourcing “ True” resource cost determination Renegotiation Reducing rates Reducing period Product-Service transition (h/w & s/w) Resource rationalizations Contracts Separation ( Ref: Capability Grid )

Outsourcing

“ True” resource cost determination

Renegotiation

Reducing rates

Reducing period

Product-Service transition (h/w & s/w)

Resource rationalizations

Contracts

Separation ( Ref: Capability Grid )

Managing Self 30/60 – day planning High milestone density Supervisory reference Self-esteem Business links Learning Self Study Certification (?) Volunteering for assignments (“Ask Annie” Fortune)

30/60 – day planning

High milestone density

Supervisory reference

Self-esteem

Business links

Learning

Self Study

Certification (?)

Volunteering for assignments

(“Ask Annie” Fortune)

Q&A [email_address]

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