Internal presentation on achieving flow across a product delivery system

2. John Rauser
July 27th, 2018
This is Lean

3. 1 2 3 4
PRESENTATION
agenda
What is Lean
The Myth of Resource Efficiency.
Key Concepts
Overview of features that meet your
solution requirements.
Key Metrics
Discussion and clarification of needs.
7Geese
How can we apply this to us

4. Building the
Right Things
Building the
Things Right

5. Systems
“We create relationships because we
believe that we will create some value that
is not present in the individual parts”
- Reinertsen
“Systems produce the behaviors, not the
people in them”
- Deming
Know Your System

7. The Myth of Resource Efficiency
SECTION 1

10. Need: I am sick and I need a diagnosis
Value-adding time: Time with doctors, nurses
or staff (5 hours)
Time Period: Time from bug being reported to
change going live in production (1000 hours)
Flow efficiency: 1 / 7 = 0.05%
FLOW EFFICIENCY

11. Need: There is a bug in the 7Geese UI
Value-adding time: Developer refactoring
code to fix the bug (1 day)
Time Period: Time from bug being reported to
change going live in production (7 days)
Flow efficiency: 1 / 7 = 15%
FLOW EFFICIENCY

12. Lean is an operations strategy that prioritizes
Flow Efficiency over Resource Efficiency
This is Lean, p. 89
FACTS
Lean: Definition

13. Typical flow problems:
● Customer needs not met
● Missed deadlines
● Rework, unnecessary work
● Time wasted waiting for work
● Not enough work, or too much work
● Working on the wrong things
● Inability to estimate
Resource Efficiency Flow Efficiency
Typical resource problems:
● Lack of information
● Toil (work that scales linearly)
● Errors and mistakes (defects)
● Unplanned or hidden work
● Skill and experience
● Equipment / Environment

15. A Where most organizations think they are
B Where most organizations actually are
C Increasing Flow Efficiency
Use of visualization, standardization and visualization to drive a dramatic
increase in flow
D Increasing Resource Efficiency
Once flow efficiency has been achieved, it becomes easy to see how
resources can be made more efficient and effective
The Efficiency Paradox
E The Ideal State
Resource efficiency is at less than full capacity, allowing the org to deal
with uncertainty,
The reality is that a lot of work performed is superfluous
Status quo appears to work
Unwillingness to risk change

16. Key Concepts
SECTION 2

17. Value Stream
1) What activities are value-adding?
2) What is value?

18. Standardization

19. Visibility

20. Flow Measurement

21. Key Metrics
SECTION 1

22. Outcomes Provide Evidence of Value
and Ways to Improve
FACTS
Evidenced-Based Management

23. Work in Progress

24. Queues (wait states)

25. Lead Time
How long value take to be delivered
to a customer

26. Flow Time
(throughput)
How long does it take to create value?
Number of units processed per time unit

27. Cycle Time
(Little’s Law)
How much work can an activity
process?
Cycle Time =
Work in Process
Average Completion Rate

28. Value-Creating Time
Time spent within a process that
actually create value

29. Three Sources of Inefficiency
1) Long throughput times
2) Many flow units
3) Many restarts per flow unit