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Lean thinking
 

Lean thinking

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Application of lean thinking principles in IT industry

Application of lean thinking principles in IT industry

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    Lean thinking Lean thinking Presentation Transcript

    • Fundamental Principles of Lean Thinking, CMMI and Process Quality Improvement
      -Shantanu Dey
    • History
    • Philosophy
      Map the flow in sync with demand at various stages of the production process
      Downstream supply should be linked to upstream demand
      Develop a Pull System
      Meet demand as and when it arises, eliminate need to store inventory
      Inventory is waste
      Make parts available at the right place at the right time in right quantity
      5S, Just in Time
      Identify the value stream and eliminate non value additive activities
      Value Stream Mapping
      Ensure quick turnaround
      Quick set ups and changeovers, cellular layout
      Ensure High degree of Communication and Visibility
      Problems should be highlighted and visible to all for quick remedial actions
      Kanban or card system for requirement transfer
      Jidoka
      Perform Root Cause Analysis to identify problems, not symptoms
      5 whys, Fishbone diagram
      Eliminate defects by preventing defects than detecting same – Poka Yoke
      Carry out Continuous and Radical Improvements
      Kaizen and Kaikaku
    • Key Concepts – Lean Thinking
    • Lean Principle – Complete Picture
      Value stream analysis
      Identification of steps that add value
      Type 1 and Type 2 Muda
      Develop a flow based process responding to demand
      Eliminate waste – type 2 Muda
      Through Continuous Improvements (kaizen) and radical improvements (Kaikaku)
      Develop a flow process based on demand, eliminate batch and queue
      Demand is the key driver at every stage
      Reorganize production process to aid in flow (cellular layout, collocation)
      Kanban based flow management
      Develop a just in time philosophy
      Measure takt time (total time for producing one unit in line with demand)
      Develop one piece flow
      Make sure that upstream process only responds to downstream demand at the right time
      Standardize work and assure quality
      Clear accountability, responsibility and instruction sheet, guidelines and templates
      Andon or visual control – problem and current status is visible and anybody can stop entire process in the event of a problem (Jidoka)
      Poka yoke or failure proofing, prevent defect rather than detect defect
      5S
      Level workload (Heijunka) and improve flow (production leveling)
      Identify the root cause
      5 Whys
    • Value Stream Analysis
    • Root Cause Analysis
      5 Whys - Problem Statement is Customers are unhappy because products shipped do not meet specifications
      Ishikawa or Fishbone diagram
      • Many opinions to root cause for a specific problem
      • Capture all opinions and stimulate brainstorming
      • Helps in visualizing many causes for a problem
      • Start with a “Why” question for problem statement
      • All causes should belong to distinct categories
    • Other Quality Concepts
      PDCA cycle - Deming
      SPC and Control Charts – Shewhart and Deming
      • Normal distribution of the measured parameter (m = 0, SD = 1)
      • Creation of a control chart with upper and lower control limits (X bar, R chart etc.)
      • Control limits are defined at m+3S and m-3S
      • Variations due to common and special causes – special causes need to be ascertained through RCA
      • Indicates when to act and when not to act
      • Special cause must be attacked
      • Only way to reduce common cause is continuous improvement and tighter control
      Capability Maturity Model (Integrated) – SEI
    • How Lean Thinking Can Help Us
      Distinguish between Batch and Queue vs. Continuous Flow
      Subject everything to demand and customer needs
      Identify value adding and non value adding processes and eliminate wastes
      7 deadly wastes include “Wait and Queuing”, “Inventory”, “Reworks and Defects”, “Gold Plating and Excess Work”, “Lack of Focus”, “Deviation from Standard and Requirement”, “Lack of Communication”
      Adopt single piece flow for faster turnaround
      Communicate, Make problems and status visible
      Define, Measure, Analyze, Improve
      Prevent problems than do firefighting, raise flags as early as possible
      Level workload and ensure performance consistency
      Adopt standardization and uniformity, adhere to 5S
      Identify root cause of problems
      Develop Continuous Improvement culture
      Change mindset and address resistance to change
      Empower, motivate, learn, adapt
      Collaborate with business partners to drive changes
    • Linking to what we should do in IT
      • We follow a batch and queue method of prioritization and allocation
      • Engagement with business, BUS survey, relationship management, collaborative planning with other teams
      • Standard Operating Procedure and value measurement
      • Take one design/code into logical conclusion before working on another
      • Turnaround time and throughput as parameters defined and measured, analyzed for variations and planned for improvements, having more focus on issues in hand, reducing turnaround time for investigation
      • Status reports, tracking and monitoring, early warning, master specification, ageing in investigation, RCA for TAT and ageing, development slippage
      • Core team review, early warning, escalations
      • Master Specification Plan, Specification target, release quota, throughput consistency on a week by week basis
      • LAN folder and SharePoint, templates, standards, checklists and guidelines
      • Root cause analysis for TAT, ageing analysis, statistical process control for TAT, RCA for development slippage
      • Statistical process control, problem identification and adoption of process improvement measures
      • Forming quality circle, lessons learned exercises, learning forums and BPML, brainstorming, rewards and recognitions, additional responsibilities, having consensus before major initiatives, implement after consensus is achieved
      • Collaboration with other teams, ensuring team utilization, helping reduce total turnaround time
      Distinguish between Batch and Queue vs. Continuous Flow
      Subject everything to demand and customer needs
      Identify value adding and non value adding processes and eliminate wastes
      Adopt single piece flow for faster turnaround
      Communicate, Make problems and status visible
      Define, Measure, Analyze, Improve
      Prevent problems than firefighting, raise flags
      Level workload and ensure performance consistency
      5S and standardization
      Identify root cause of problems
      Develop Continuous Improvement culture
      Change mindset and resistance to change
      Empower, motivate, learn, adapt, generate consensus, act fast
      Collaborate with business partners to drive changes
    • Tasks Cut Out for Us in IT
      Adopting a demand based continuous flow
      Batch and queue methods (prioritization, allocation)
      Pick up high priority issues and functionalities
      Production Support Process – Value Stream Analysis and Future State Mapping
      Identifying type 1 and type 2 Muda
      Eliminating type 2 Muda
      Adopting Single Piece Flow for faster turnaround
      Working on one design at a time till approval
      Testing one functionality at a time till test completion
      Focus on few issues for investigation without letting them ageing
      Heijunka or Leveling
      Having consistent weekly and monthly throughput without overload
      Meeting Specification Master Plan
      Communication and Visibility, demand based continuous flow
      Synchronizing specification flow with development team needs
      Managing requirement changes, faulty requirements
      Reducing Turnaround Time, Increasing Throughput based on demand
      Managing prioritization
      Prevent problems, raise flags
      Early warning, raising slippage on planned dates (clarification not obtained, spec completion, development completion, testing completion), raising flags on - ageing, bandwidth issues, lack of knowledge, lack of clarifications
      Addressing queries at the earliest and making sure commitments are adhered to
      Continuous Improvement Culture
      Getting the buy in of the team, empowering and motivating team members
      Root cause analysis and resolution of root cause
      Measuring success of initiatives, modification of plan based on measurement outcomes
      Anything else?