Why should you listen to me? Until last week I was a delivery manager of a team of ~50, contractually obliged to find better ways of doing things I came into Lean as a way of motivating my team, having heard really good things about Toyota, and found the people management part was part of a much bigger way of thinking, which had a lot of resonance with what we were doing I'm going to tell you how to do it via a set of proven, interlocking approaches and tools, known as Lean. Anyone been in a Lean presentation before? OK, I promise you only 1 slide on the car industry, and only 1 with any kind of history..
Affordability Challenge: Enabling customer to cut cost without cutting capability Disruptive Change: Client : “Unprecedented” - requirement and opportunity for pervasive improvement Joint working – requires upheaval Report X & Report Y means BaU isn't an option Sector Leader: Need to be really smart at what we do” Growth Challenge: Aggressive targets in the Fall Plan Resourcing Constraint: Can't find the people fast enough to fulfill needs Adding more ppl won't enable cost constraints
Value is delivered when a paying customer gets what they pay for. So, it only actually happens **HERE** >click< - until that point, it doesn't actually mean anything. It also means that THE most important people are those who are creating the thing that the customer pays for.
Value is created as the piece of work is actively transformed through a process – from customer's initial idea of “I'd like a think” to its delivery back. We may not be all the pieces along the way – at xxx client, we didn't do full functional test or architecture, but we did design, build and Unit test.
The same for a piece of new development – work moves through a standard set of steps as its transformed from idea to working code in production
Now let's think about how long those steps take. That's in terms of both hands-on time spent writing designs, producing code, actively testing And The elapsed time it takes to do it The thing generally that takes the time isn't the hands on time, but the waiting, interruptions and “other stuff” time Let's add all that up
I've already calculated the overall elapsed time **>click<** But how much actual work was involved that took 37 weeks to complete? **>click<** **>click<** This is a relatively efficient process too – think how much longer it would be if you had a quarterly or six monthly release cycle. In many processes, you might be only 10% efficient. How long does a house take to build? (ask for suggestions) 3d. FertigHaus In xxx client, we found in one process, delivery was extending from 1d hands-on work to over a week for small pieces of work because of stakeholder signoffs and responses to queries. And in all that time, the customer is waiting, and has more opportunities to change their mind. **>click<**
There are some specific Lean tools to expose Waste, making it easier to see and therefore start removing. However, a target of single piece flow will bring many of them to the surface as barriers to achieving. These 5 principles will help you get there Value: What is it that the customer is paying for? What else are you doing? Why? Sometimes you have to as an enabler, but best to keep that far away from delivery people. Make sure that everything in the process is transforming from customer request/though to deliverable Any kind of batching is a waste – you've spent money on transforming to this point, so why are you holding it up artificially? Better to have it move on and closer to delivering value Pull: no point in adding to my pile as a tester as I won't get to it Perfection: You won't get there in one go, so one step at a time.
Problems/Opportunities come in all sizes **>click<** Traditional Improvement Programmes are one-off, lots of bang for the buck initiatives. They're the easiest to measure Lean does those, sure. But it also looks for all the very small opportunities, that individuals and small teams can change within their own control One of the biggest wastes you can have is untapped people creativity – and who else understands the work to be improved best? **>click<** And Lean organisations don't just improve once
Spend 80% of time understanding the problem Analyse & plan carefully Spend 20% of time doing Implement solutions aggressively Toyota do all improvement at every level on single pieces of A3. Even the global financials are done on A3, with the CFO challenging his reports to produce them on A4
Decision-making is rapid, based on devolving assessment to empowered managers coaching a knowledgeable team-member: The manager can’t solve the problem alone, because the manager isn’t close enough to the problem to know the facts. But the employee can’t solve the problem alone either, because he or she is often too close to the issue to see its context and may refrain from asking tough questions about his or her own work. Only by showing mutual respect is it possible to solve problems and move organisational performance to an ever-higher level.
I promised you 1 history slide and this is it. And I've combined it with the 1 car industry slide. In 1937, it was generally assessed that the average German worker was 3 times as productive as a Japanese, and that the average American was 3 times more productive again. In 1947, even after the huge dip caused by wartime destruction, the head of Toyota set his employees a challenge: to catch up with the Americans In the next couple of decades, Ford were in the middle of a boom, and assumed that this would carry them forward (forever) – they'd always be able to sell whatever they made In the mean time, there were Toyota, working hard in Interesting times to get better every day – better quality, better prices. Less time, less effort, fewer defects. Obsessively. Do you think it worked?
Faster, Better and Cheaper? Martin Burns, Lean CoE Sept 2011
About Me <ul><li>Traditionally trained Engagement & Delivery Manager </li></ul><ul><li>AMS Service Delivery Leader at xxx Client 2008 – 2011 </li></ul><ul><li>Started introducing Lean thinking to xxx account in 2010 </li></ul><ul><ul><li>Increased productivity 35% in one workstream </li></ul></ul><ul><ul><li>Reducing governance metrics compilation time from a week to 2d, and reducing impact on entire delivery team </li></ul></ul>
Interesting Times: Responding to Imposed Constraints More output Less time Less people Less cost Constant Improvement Resourcing Constraint Disruptive Change Cost Reduction Pressure Growth Challenge
What is Lean Thinking? Long Term Philosophy and Decision Making Value Maximisation One Piece Flow Pulled Through the System Obsessive Improvement At All Scales Involvement of Everybody
Value: Output The Customer Pays For Solution Request Solution Definition, Development & Delivery End user receives Solution Value Delivered Customer Logo Replaced Customer Logo Replaced
Value Is Created as Work Actively Moves Through The Value Stream Value Stream / End to end process Incident Raised by end user Incident Management End user receives resolution Incident Received Analysed Resolved Customer Confirmation Value Delivered Customer Logo Replaced Customer Logo Replaced Logo Replaced Start Finish
Value Is Created as Work Moves Through The Value Stream Value Stream / End to end process New Functionality Need Solution Delivery Solution Released to Production Review Review UAT QA Test Deploy Analysis Design Build Customer Logo Replaced Customer Logo Replaced Logo Replaced
Value Is Created as Work Moves Through The Value Stream Value Stream / End to end process New Functionality Need Solution Delivery Solution Released to Production Review (v) 1 day (e) 2 weeks (c) 6 weeks Test (v) 3 weeks (e) 3 weeks (c) 32 weeks Deploy (v) 1 week (e) 2 weeks (c) 37 weeks Analysis (v) 1 week (e) 4 weeks (c) 4 weeks Design (v) 2 weeks (e) 6 weeks (c) 12 weeks Build (v) 8 week (e) 14 weeks (c) 28 weeks Review (v) 1 day (e) 2 weeks (c) 14 weeks QA (v) 3 days (e) 1 week (c) 29 weeks UAT (v) 3 weeks (e) 3 weeks (c) 35 weeks (v) Value-adding Time (e) Elapsed Time (c) Cumulative Elapsed Time Customer Logo Replaced Customer Logo Replaced Logo Replaced
Value Is Created as Work Moves Through The Value Stream Value Stream / End to end process New Functionality Need Solution Delivery Solution Released to Production Review (v) 1 day (e) 2 weeks (c) 6 weeks Test (v) 3 weeks (e) 3 weeks (c) 32 weeks Deploy (v) 1 week (e) 2 weeks (c) 37 weeks Analysis (v) 1 week (e) 4 weeks (c) 4 weeks Design (v) 2 weeks (e) 6 weeks (c) 12 weeks Build (v) 8 week (e) 14 weeks (c) 28 weeks Review (v) 1 day (e) 2 weeks (c) 14 weeks QA (v) 3 days (e) 1 week (c) 29 weeks UAT (v) 3 weeks (e) 3 weeks (c) 35 weeks Total Value Adding Time: 18 Weeks Efficiency: 48% Total Elapsed Time: 37 Weeks Slow Expensive, Unresponsive Logo Replaced Customer Logo Replaced Customer Logo Replaced
5 Principles for Value Maximisation Customer Value Value Stream Flowing Processes Pull- Principle Perfection Create Value Without Waste Right Method Produces Right Results Stop producing what your customer is not asking (or paying) for Review & simplify your processes One In, One Out Produce on demand, not on schedule Not to have a problem is a problem
Work to Perfection: Change Done Right, At All Scales <ul><li>Lean difference is: </li></ul><ul><ul><li>Obsessive improvement at all times, at all levels, in all areas – enabling this is Management's Primary Role </li></ul></ul><ul><ul><li>Obsessive repeating of improvement, each time taking one step closer to the goal of perfection </li></ul></ul><ul><ul><li>Based on proven empirical method – Deming Cycle </li></ul></ul>Effective only if changing Method , not just Slogans
Standardised Template that error-proofs the thinking process Deming/ Shewhart Cycle:
Improvement is Even Simpler... The trouble with everyone of us is that we don't think enough Thomas J. Watson, Sr
Does It Work? <ul><li>Ford -v- Toyota 1976 </li></ul><ul><li>Employee Hours per Vehicle </li></ul><ul><ul><li>Ford: 112.5 </li></ul></ul><ul><ul><li>Toyota: 47.0 </li></ul></ul><ul><ul><li>2.4x as Productive </li></ul></ul><ul><li>Employee Cost per Vehicle </li></ul><ul><ul><li>Ford: $2464 </li></ul></ul><ul><ul><li>Toyota: $491 </li></ul></ul><ul><ul><li>5x as Cost-Efficient </li></ul></ul>Relative National Productivity 1937 Sources: Ohno: Toyota Production System: Beyond Large-scale Production The Competitive Status of the US Auto Industry, National Academy Press 1982
Customer Reference Ticket Turn Around Time reduced by 40% Operational Efficiency Improved Quality End user Customer satisfaction increased from 3.22 to 3.45 Productivity increased by 17%, Bad fixes reduced from 2.2 to 1.4% Average ticket turn around time improve by 20% Improve Communication between IBM and end user Standardized process within AM team Productivity increased by 15%, Total lead time reduced by 50% Increased flexibility of Maintenance release milestones Reduce the effort and rework in creating a solution for a Defect YTD cost-per-fix is down by 15%. Up to 70% reduction in the end-to-end production support lead-time For enhancements, confirmation of requirements and business need enabled better decision making Single point of entry and ticketing resulted in improved ticket solution and resolution time Standardization enables greater use of offshore resources (supports 20% IT cost reduction) Average turn around time reduced by 20% Volume of tickets reduced by 12% Ticket backlog reduced by 19% SLA adherence improved Productivity increased by 16% Reduction of Process Lead time to resolve incidents by 15 % and Problem Management by 20% End of Month Ticket Backlog reduction to Zero. Reduction in incoming tickets Changes in Remedy to get ticket alerts via email Incident Resolution productivity improvement of 10%-16% Customer Service Productivity Impact European Telecoms Equipment Manufacturer Global Mobile Telecoms Service Provider UK Telecoms Service Provider Large Oil & Gas Company Global Oil Company Leading Automotive Company
How to Get Started <ul><li>Contact the Lean CoE </li></ul><ul><ul><ul><ul><li>Jaspreet xxxxxxxx YOUR LOCATION REPLACED Based YOUR INDUSTRY REPLACED SME 07768 xxxxxx http://aninternalurl </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Martin Paul Burns 07740 xxxxxx http://aninternalurl </li></ul></ul></ul></ul><ul><li>Methods include: </li></ul><ul><ul><li>Value Stream </li></ul></ul><ul><ul><li>Kaizen </li></ul></ul><ul><ul><li>A3 </li></ul></ul><ul><ul><li>Kanban </li></ul></ul><ul><li>Or, more simply, every day, ask yourself and your team 5 questions: </li></ul>