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Lessons Learned using KanBan 
Outsourced Development Services Supplier Point of View 
Saulius Kaukėnas 
Agile Tour Vilnius...
Just-in-time 
(c) agmis, 2014 
2
JIT Principles 
„The philosophy of JIT is simple: the storage of 
unused inventory is a waste of resources.“ – 
Wikipedia....
1997. Rock Solid Documentation 
(c) agmis, 2014
Trying to Follow RUP 
(c) agmis, 2014 
5
…and XP (Agile) 
(c) agmis, 2014 
6
What about Outsourcing? 
(c) agmis, 2014 
7
KanBan. 1st Try 
 Fits for support projects 
 Stumbled on larger development projects 
(c) agmis, 2014 
8
1st Try Retrospective 
 In Agile everyone should be Agile: 
 Your customer 
 Your suppliers 
 3rd parties involved 
 ...
Agile = Assembly Line 
(c) agmis, 2014 
10
JIT Supply Chain - It’s All Connected 
 Sometimes it is not even obvious how tight 
the JIT supply chain dependency is. 
...
Agile in Outsourcing 
 Equivalent to JIT supply chain. 
 Delays should be avoided at all costs. 
12 
(c) agmis, 2014
Making JIT Supply Chain Work 
1. Long term relationships. 
2. Joint process certification. 
3. Co-locate facilities to red...
15 Smells for Agile Process 
Refactoring 
 Guidelines for reducing delays (#1-#7): 
ensure optimal flow of joint assembly...
Ensure optimal flow of joint 
assembly line. 
Guidelines for reducing delays (#1-#7)
#1: (Web Services) Integration 
 Illusion: Web services cannot be frozen, 
mocked up and so on as then development 
doesn...
#1: Web Services Integration 
 Hints: 
 Make sure web services development is done in 
iterations, in parallel. 
 Ensur...
#2: You’re Subcontractor 
 What about feedback from the end customer? 
 Is he aware abou tyou? 
 Hints: 
 Direct custo...
#3: Third Parties 
 Another supplier or subcontractor. 
 May turn up only when the contract is inked. 
 Hint: Test him,...
#4: Customer‘s People 
 Are here „to help you“ or lower the cost. 
 Hint: 
 Very risky. Avoid if you can. 
 Ensure con...
#5: Customer Staff’s Priorities 
 „Higher priority“ tasks. 
 “Committee cannot decide”. 
 Hints: 
 Ensure that your cu...
#6: Focus on delivery terms and price 
 Or even worse, solely on price. 
 Hints: 
 Focus on process. 
 Agile contract ...
#7: Customer Wants Agile Supplier 
 Suspicious if too emphasized. 
 May hear surprisingly interesting versions. 
 KanBa...
Continuously do your 
homework. 
Guidelines for internal affairs (#8-#12)
#8: Separate KanBans 
 Might be easier for project but not for the 
company. 
 Hints: 
 Single KanBan works better. 
(c...
#9: Heroes 
 Some people are simply not fit for the 
teamwork. 
 Hint: 
 The „heroes“ make perfect consultants. 
 It‘s...
#10: High Expectations 
 Illusions: 
 Easy Win is Near 
 Most Agile are 
simple. 
 Hints: 
 Set expectations 
right. ...
#11: Project Manager’s Time Saved! 
 Teams started to manage themselves!!! 
 At a price. 
 Hints: Guess who is responsi...
#12: Just Implemented Agile! 
(c) agmis, 2014 
29
#12: Just Implemented Agile! 
 “if it works, don't touch it“, right? 
 Project nature may change 
 Hints: 
 Agile impl...
Manage Scope.
#13: Fixed Price 
 Accolades at the beginning of the day.. 
 “Agile doesn't mean that you don't have to 
complete ALL th...
#14: Warranty Period? 
 Can customer be sure that everything is error 
free when closing the sprint? 
 Hints: 
 Always ...
#15: Customers Waiting in Line 
 Who wouldn‘t want that, huh? 
 Hint: Think of what could make customers 
want it? 
 Qu...
Tested At Agmis 
 KanBan. 
 Team building. 
 Internal experience sharing sessions. Keeps 
everyone involved into contin...
FailBox 
 Version 2.0 delivered 
constant cash flow. 
(c) agmis, 2014 
36
Agile in Outsourcing 
Parameter Internal, Product Agile Agile for Outsourcing 
Complexity 1 2-3 
Implementation Continuous...
Conclusions 
 Agile for outsourcing IS more complex. 
 Involves more risks to be managed. 
(c) agmis, 2014 
38
Questions? Comments?
40 
Thank You! 
agmis 
mpowering companies 
t: +370-687 81204 
europos pr. 121, 
LT-46339, kaunas, lithuania 
e-mail: info...
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Saulius Kaukenas. Lessons learned using kanban

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What to expect choosing KanBan as a development approach? What are the risks, what works and what doesn't when you are in the position of external supplier. Experiences and lessons learned from real life projects executed at Agmis that every manager should take into account. What should be discussed and cleared up among the customer and supplier before the project begins. What customer should ask about their suppliers and vice versa.

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Saulius Kaukenas. Lessons learned using kanban

  1. 1. Lessons Learned using KanBan Outsourced Development Services Supplier Point of View Saulius Kaukėnas Agile Tour Vilnius, 10/09/14
  2. 2. Just-in-time (c) agmis, 2014 2
  3. 3. JIT Principles „The philosophy of JIT is simple: the storage of unused inventory is a waste of resources.“ – Wikipedia.  JIT = minimal inventory. In IT - minimal possible number of features being developed in parallel.  JIT = waste elimination. Waste = production of unneded products, rework, waiting time. In IT - unneeded features, change requests for features, waiting time. (c) agmis, 2014 3
  4. 4. 1997. Rock Solid Documentation (c) agmis, 2014
  5. 5. Trying to Follow RUP (c) agmis, 2014 5
  6. 6. …and XP (Agile) (c) agmis, 2014 6
  7. 7. What about Outsourcing? (c) agmis, 2014 7
  8. 8. KanBan. 1st Try  Fits for support projects  Stumbled on larger development projects (c) agmis, 2014 8
  9. 9. 1st Try Retrospective  In Agile everyone should be Agile:  Your customer  Your suppliers  3rd parties involved  Everyone becomes part of the process  You can be Agile without other parties, or you need to be Agile WITH other parties (c) agmis, 2014 9
  10. 10. Agile = Assembly Line (c) agmis, 2014 10
  11. 11. JIT Supply Chain - It’s All Connected  Sometimes it is not even obvious how tight the JIT supply chain dependency is. (c) agmis, 2014 11
  12. 12. Agile in Outsourcing  Equivalent to JIT supply chain.  Delays should be avoided at all costs. 12 (c) agmis, 2014
  13. 13. Making JIT Supply Chain Work 1. Long term relationships. 2. Joint process certification. 3. Co-locate facilities to reduce transport. Minimize feedback loops, keep everyone involved. 4. Stabilize delivery schedules. Discipline. 5. More inventory. Projects from other customers in the pipeline? Have your customers wait in the line  6. Multiple sourcing. (c) agmis, 2014 13
  14. 14. 15 Smells for Agile Process Refactoring  Guidelines for reducing delays (#1-#7): ensure optimal flow of joint assembly line.  Guidelines for internal affairs (#8-#12): do your homework. Continuously.  Guidelines for scope management (#13-#14): fixed price and warranty.  Guideline for sales (#15): have customers waiting in line. 14 (c) agmis, 2014 14
  15. 15. Ensure optimal flow of joint assembly line. Guidelines for reducing delays (#1-#7)
  16. 16. #1: (Web Services) Integration  Illusion: Web services cannot be frozen, mocked up and so on as then development doesn‘t remain agile per se. (c) agmis, 2014 16
  17. 17. #1: Web Services Integration  Hints:  Make sure web services development is done in iterations, in parallel.  Ensure direct developer communication on both ends. (c) agmis, 2014 17
  18. 18. #2: You’re Subcontractor  What about feedback from the end customer?  Is he aware abou tyou?  Hints:  Direct customer communications to get the feedback in time.  No “Chinese whispers”. (c) agmis, 2014 18
  19. 19. #3: Third Parties  Another supplier or subcontractor.  May turn up only when the contract is inked.  Hint: Test him, ensure that you are both talking Agile. (c) agmis, 2014 19
  20. 20. #4: Customer‘s People  Are here „to help you“ or lower the cost.  Hint:  Very risky. Avoid if you can.  Ensure control and process adherence. (c) agmis, 2014 20
  21. 21. #5: Customer Staff’s Priorities  „Higher priority“ tasks.  “Committee cannot decide”.  Hints:  Ensure that your customer understands that delays = stop of flow = higher cost.  Encourage culture and accountability of the supplier. (c) agmis, 2014 21
  22. 22. #6: Focus on delivery terms and price  Or even worse, solely on price.  Hints:  Focus on process.  Agile contract negotiation (I&I).  Focus on how both of you ensure flow via supply chain to assembly line. (c) agmis, 2014 22
  23. 23. #7: Customer Wants Agile Supplier  Suspicious if too emphasized.  May hear surprisingly interesting versions.  KanBan <> Scrum or TDD.  Agile <> Unit tests.  Hint: Test how Agile is customer in his kitchen. (c) agmis, 2014 23
  24. 24. Continuously do your homework. Guidelines for internal affairs (#8-#12)
  25. 25. #8: Separate KanBans  Might be easier for project but not for the company.  Hints:  Single KanBan works better. (c) agmis, 2014 25
  26. 26. #9: Heroes  Some people are simply not fit for the teamwork.  Hint:  The „heroes“ make perfect consultants.  It‘s people business, know everyone in your team. (c) agmis, 2014 26
  27. 27. #10: High Expectations  Illusions:  Easy Win is Near  Most Agile are simple.  Hints:  Set expectations right.  It’s a continuous process. (c) agmis, 2014 27
  28. 28. #11: Project Manager’s Time Saved!  Teams started to manage themselves!!!  At a price.  Hints: Guess who is responsible for..  Process following by all parties.  Process improvement. (c) agmis, 2014 28
  29. 29. #12: Just Implemented Agile! (c) agmis, 2014 29
  30. 30. #12: Just Implemented Agile!  “if it works, don't touch it“, right?  Project nature may change  Hints:  Agile implementation is a process: continuous and incremental.  Separate tools might not be enough.  Where is the next waste? (c) agmis, 2014 30
  31. 31. Manage Scope.
  32. 32. #13: Fixed Price  Accolades at the beginning of the day..  “Agile doesn't mean that you don't have to complete ALL the features FOR THE SAME PRICE”… at the end of the day.  Hint: Avoid it, unless contract allows for scope flexibility. (c) agmis, 2014 32
  33. 33. #14: Warranty Period?  Can customer be sure that everything is error free when closing the sprint?  Hints:  Always discuss it before project start.  Maintenance agreement (3 mo to 6 mo – 50%, up to 1 year – 25%, etc.).  Or, factor that into hourly rate. (c) agmis, 2014 33
  34. 34. #15: Customers Waiting in Line  Who wouldn‘t want that, huh?  Hint: Think of what could make customers want it?  Quick Ramp-up time.  A discount?  Possibility to work with you? (c) agmis, 2014 34
  35. 35. Tested At Agmis  KanBan.  Team building.  Internal experience sharing sessions. Keeps everyone involved into continuous process improvement.  Code reviews. Probably the most efficient form of inside training.  Close-outs (Retrospectives).  Shorter iterations (or, longer iterations DIDN‘T work). Aim at having them 3 weeks or shorter. (c) agmis, 2014 35
  36. 36. FailBox  Version 2.0 delivered constant cash flow. (c) agmis, 2014 36
  37. 37. Agile in Outsourcing Parameter Internal, Product Agile Agile for Outsourcing Complexity 1 2-3 Implementation Continuous Continuous Risks Delays, Customer Priorities (c) agmis, 2014 37 Customer Agility, Supplier Agility Warranty Part of the process Needs to be discussed Contract focus (if any) Quality, TTM Process, quality, TTM PM focus Process following and improvement Process following and improvement, external communications Integrations Medium risk factor High risk factor
  38. 38. Conclusions  Agile for outsourcing IS more complex.  Involves more risks to be managed. (c) agmis, 2014 38
  39. 39. Questions? Comments?
  40. 40. 40 Thank You! agmis mpowering companies t: +370-687 81204 europos pr. 121, LT-46339, kaunas, lithuania e-mail: info@agmis.lt (c) agmis, 2014

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