A Con-Way case study presented by Mark Lear and Mike Orzen at the European Lean IT Summit 2012

1. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Applying Value Streams
in a DevOps Environment
~~~
A Case Study
Mark Lear, Process Owner
Project & Enhancement Value Stream (PEVS)
Mike Orzen, Lean IT Coach, Adjunct Professor

2. 22 & 23 November, 2012
Paris, France
Agenda
• Who are Con-way and • Implementation Approach
Menlo?
• Results
• Lean background at Menlo
• Lessons Learned
• Core Problems?
• Experimental • Ongoing Challenges
Countermeasures
• Q&A
• Expected Improvements
Applying Value Streams in a DevOps Environment – Lear / Orzen 2

3. Con-way Inc.: $5 billion transportation & logistics company
Less-than-Truckload (LTL) Third-Party Logistics (3PL) Truckload (TL)
•$3.1 billion revenue •$1.5 billion gross revenue •$0.6 billion revenue
•9,100 Tractors •145 worldwide warehouse •2,600 Tractors
locations
•26,300 Trailers •8,100 Trailers
•4,300 employees
•Nearly 300 service centers
Safety Collaboration Integrity Commitment Excellence
3
Applying Value Streams in a DevOps Environment – Lear / Orzen

4. 22 & 23 November, 2012
Paris, France
Background on Lean at Menlo
• Getting started
• A person with a vision
• A key ingredient
• Check-Adjust
• The glass ceiling
Applying Value Streams in a DevOps Environment – Lear / Orzen 4

5. 22 & 23 November, 2012
Paris, France
Core Problems
External VOC Feedback:
• Cost and Delivery
• Quality
Applying Value Streams in a DevOps Environment – Lear / Orzen 5

6. 22 & 23 November, 2012
Paris, France
Core Problems (continued)
Internal VOC:
• Organizational Structure
• Project and Resource
Management
• Work-Life Balance
Applying Value Streams in a DevOps Environment – Lear / Orzen 6

7. 22 & 23 November, 2012
Paris, France
Experimental Countermeasures
Implementation of Value
Streams to address
standardization and flow:
• A “focused factory” concept
separating repetitive
production / operations
support work from project /
development work
Applying Value Streams in a DevOps Environment – Lear / Orzen 7

8. 22 & 23 November, 2012
Paris, France
Expected Improvements
External VOC:
• Reduce cycle time
• Allow better cost isolation
• Improve quality of
systems / processes
Internal VOC:
• Increase team focus on flow/
standardization
• Simplify scheduling
• Improve work-life balance
Applying Value Streams in a DevOps Environment – Lear / Orzen 8

9. 22 & 23 November, 2012
Paris, France
Implementation Approach
• Sold to IT managers first
• Documented value stream owner role
• Defined structure, boundaries and size of Value
Streams
• Socialized with team members and listened to
concerns
Applying Value Streams in a DevOps Environment – Lear / Orzen 9

10. 22 & 23 November, 2012
Paris, France
Implementation Approach (continued)
• Held Town Hall to address concern areas:
– Co-location
– Production support seen as low-value work
– Team member rotation
– Suitability for smaller teams
– Sensitivity to “factory” reference
Applying Value Streams in a DevOps Environment – Lear / Orzen 10

11. 22 & 23 November, 2012
Paris, France
Results – New Value Stream Organization
Operations
Sustained
Sales to
Startup
Projects & Enhancements
Pre-Sales Project Customer Quality Business
Integration TMS WMS
Support Mgmt Delivery Testing Intelligence
• Technical tools
• Job rotations
• Training
• Production turnover
Technical Customer Quality Business
Integration TMS WMS
Support Delivery Testing Intelligence
Production Support
Operations
Sustained
Applying Value Streams in a DevOps Environment – Lear / Orzen 11

12. 22 & 23 November, 2012
Paris, France
Results – IT Production Support
SMART Target 2011 2012 YTD
Critical Incidents resolved within 2 hours 28% 43%
High Incidents resolved within 4 hours 47% 54%
Expedited Service Requests resolved within 1 day 62% 75%
Overall incidents resolved within defined SLOs 86% 88%
Problem Resolution Tickets Opened / Resolved 34 / 23 58 / 51
Savings from Problem Resolution Team Kaizens $99.164 $170,758
Application Occurrences Application Duration (hrs)
15 30,00
25,00
10 20,00
15,00
5 10,00
5,00
0 0,00
nov.-09
févr.-12
févr.-10
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mai-10
févr.-11
nov.-11
août-10
mai-11
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mai-12
août-12
nov.-09
févr.-10
nov.-10
nov.-11
mai-10
févr.-11
août-10
mai-11
févr.-12
août-11
mai-12
août-12
Applying Value Streams in a DevOps Environment – Lear / Orzen 12

13. 22 & 23 November, 2012
Paris, France
Results – IT Projects and Enhancements
SMART Target 2011 2012 YTD
Startups budget variance (+/- 10% budget) 58% 63%
Customer enhancement & R&D project budget variance
74% 72%
(+/- 10% budget)
Post Go-Live Defect Tracking NA 52%
Enhancement Cycle Time 22-34 Weeks 16-28 Weeks
2012 Initiatives:
• Post go-live defect tracking
• Design Oversight Committee
• Iterative Development Approach
• Improved Forecasting and Demand /
Resource Planning
• Warehouse Management
Enhancement Value Stream Pilot
Applying Value Streams in a DevOps Environment – Lear / Orzen 13

14. 22 & 23 November, 2012
Paris, France
Lessons Learned
• Key Role: Process Owner
• Transition duration
• Reliance on key resources
• “Big Picture” understanding
• Employee engagement
• Change management /
Current-to-future state
• Metrics and measurements
Applying Value Streams in a DevOps Environment – Lear / Orzen 14

15. 22 & 23 November, 2012
Paris, France
On-going Challenges
• Perception of Administrative
excess
• Low-hanging fruit is gone
• Keeping Lean fresh
• Manager engagement and
follow-up
• Metrics and measurements
Applying Value Streams in a DevOps Environment – Lear / Orzen 15

16. 22 & 23 November, 2012
Paris, France
What’s Next?
• Both Value Streams
• Projects &
Enhancements
• Production Support
Applying Value Streams in a DevOps Environment – Lear / Orzen 16

17. 22 & 23 November, 2012
Paris, France
Thank You!!
Mark Lear: Lear.Mark@con-way.com
Mike Orzen: Mike@MAOrzen.com
Applying Value Streams in a DevOps Environment – Lear / Orzen 17

18. 22 & 23 November, 2012
Paris, France
More Lean IT presentations and videos on
www.lean-it-summit.com
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