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Kanban and TOC for Execution Excellence Lean India Summit 2014

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Kanban and TOC

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Kanban and TOC for Execution Excellence Lean India Summit 2014

  1. 1. Achieving Execution Excellence with Kanban & TOC – Case study from software support (Managed Services) © 2014 WIPRO LTD | WWW.WIPRO.1 COM | CONFIDENTIAL N. Balaji Ganesh, Sirisha Somanchi
  2. 2. Achieving Execution Excellence with Kanban & TOC – Case study from software support (Managed Services) N. Balaji Ganesh, Sirisha Somanchi © 2014 WIPRO LTD | WWW.WIPRO.2 COM | CONFIDENTIAL
  3. 3. Agenda Background Challenges Implementation © 2014 WIPRO LTD | WWW.WIPRO.3 COM | CONFIDENTIAL Benefits • Why Change? • Identifying gaps / Surfacing Bottlenecks • Strategies to overcome bottlenecks • Implementation plan • Outcomes
  4. 4. Why Change? Team • Work throughput not meeting customer expectations • Sustain / improve end user experience while reducing lead times for work items Organization • High effort per ticket (2.2 P.Ds) • Cost of Delivery reduction – Productivity improvement * From David Anderson’s book – Kanban (Successful Evolutionary Change for your technology Business) Customer Enhance throughput of “back office” tickets resolution from 25% to 50% © 2014 WIPRO LTD | WWW.WIPRO.4 COM | CONFIDENTIAL
  5. 5. Challenges Shared team - Capacity constraints High WIP Multi-tasking across Tickets, CRs, Projects © 2014 WIPRO LTD | WWW.WIPRO.5 COM | CONFIDENTIAL No defined policies to streamline work flow / task prioritization Business triggers for enhanced throughput Bottlenecks to flow – high rework & wait time Lack of Work load leveling What to improve next ? Uneven demand High variation in cycle time and effort per ticket
  6. 6. Why Kanban http://kosmothink.com/2010/12/31/the-uncertainty-principal-or-how-to-choose-the-right-methodology/ © 2014 WIPRO LTD | WWW.WIPRO.6 COM | CONFIDENTIAL
  7. 7. Essence of Kanban Little’s law –Work in progress  lead time Stop Starting, Start Finishing. Pull - Signal from upstream to downstream process to start work. Only when the tide goes out do you discover who's been swimming naked. Warren Buffett © 2014 WIPRO LTD | WWW.WIPRO.7 COM | CONFIDENTIAL
  8. 8. Focus & Strategy • Lean awareness • Optimize Effort • Reduce Cycle time • Visualize Work flow • Demand Management • Capacity planning • Standardization • Retrospective & feedback (PDCA) • Identify bottle necks to flow - Limit WIP (Kanban), • Reduce Multi-tasking • Analyze CFDs • Team Workshops on lean, Kanban and TOC • Games to demonstrate benefits of smaller batch sizes • Participative decision making and fostering collaboration • Core team - Action plans and timelines for implementation rigor • Visual feedback loop © 2014 WIPRO LTD | WWW.WIPRO.8 COM | CONFIDENTIAL
  9. 9. TOC – How does it fit • Visualize value stream • Go See Yourself • PDCA • Back to “Identify” © 2014 WIPRO LTD | WWW.WIPRO.9 COM | CONFIDENTIAL • Knowledge Management • Standardization – Policies / Definitions • Work load levelling Identify Exploit Subordinate Repeat Elevate • WIP Limit • CFD • Buffers • Cross Skilling • Mistake Proofing • Problem Management • Automation
  10. 10. Kanban – Execution Flow A C © 2014 WIPRO LTD | WWW.WIPRO.10 COM | CONFIDENTIAL P D D
  11. 11. Improving flow Bottleneck What to Change How to change Capacity < Inflow • Streamline demand • Address capacity gaps in high demand areas • Problem Management • Prioritization Policies / WIP limits • Cross skilling High WIP in functional testing • Improve Dependency / Test Setup Management • Reduce wait times • Marshal additional resources • Limit upstream WIP • Identified and communicated dependencies in planning phase • Automated test environment scheduling and restoration • Cross functional team (CFT) - Developers / Analysts for FT. High WIP in Analysis phase • Competency Improvement • Reduce wait times • Work allocation • Monitor and Expedite “Wait for Info” cases • Dedicated Resources / Time slicing policies • On the job mentoring / training • Right task for the right person • Translator for non-English language tickets Failure load • Minimize hand-offs • Optimal Work allocation • Improve upstream quality • Standardize “Definition of Done” (DoD) / Acceptance Criteria for CRs / Complexity definitions • Allocated work based on skill and complexity • Implemented analysis / code quality improvements, gating reviews, CFT © 2014 WIPRO LTD | WWW.WIPRO.11 COM | CONFIDENTIAL
  12. 12. Dealing with individual variations Time on Floor Analysis Individual Variation Work load levelling © 2014 WIPRO LTD | WWW.WIPRO.12 COM | CONFIDENTIAL Knowledge Management Collaboration - pairing WIP limits Training / Mentoring Cross skilling Time slicing
  13. 13. Visualizing Work Flow I hear and I forget. I see and I remember. I do and I understand. Confucius © 2014 WIPRO LTD | WWW.WIPRO.13 COM | CONFIDENTIAL
  14. 14. Visualizing Work flow Legend MFG PM&S FICO SCM Project CR Slip Template Project Name Project Ticket # RICEF EM Effort in Days Wish Date Functional Cons Name Assigned to (To be Filled by Allocator) © 2014 WIPRO LTD | WWW.WIPRO.14 COM | CONFIDENTIAL Slip - ZDHF/SLFN Type ZDHF / SLFN Ticket # APXXX RICEF Date of Assignment Functional Cons Name Assigned to (To be Filled by assignee) Monthly CR Slip Template Release Month Release Ticket # RICEF APXXX EM Effort in Days Wish Date Functional Cons Name Assigned to Daily team huddles around the kanban board for 15-20 minutes. 3 questions asked to each person: • What was done yesterday ? • What is done today ? • What are the bottlenecks and how can we resolve them ?
  15. 15. Cumulative Flow Diagram (Consolidated for all Work streams) 40 35 30 25 20 15 10 5 0 35 30 25 20 15 10 5 0 Release to customer Waiting for information from customer / third © 2014 WIPRO LTD | WWW.WIPRO.15 COM | CONFIDENTIAL party • Monitor and identify WIP patterns • Ask Why • Brainstorm and resolve • Go to step 1
  16. 16. Visual Trend – Resolution Time (Correction Tickets) Visual charts for Y (resolution time) – maximum & average plotted separately for different categories. Week-wise performance and trends observed and analyzed from Dec 2014. • Typical reasons for variation were: • Competency • Complexity • Waiting for information cases • Functional testing delays © 2014 WIPRO LTD | WWW.WIPRO.16 COM | CONFIDENTIAL
  17. 17. Skill Matrix Consultant UCF Cleared UCF Next Level Smart Forms Adobe Forms Reports Team member 1ABAP 3.2 ABAP 4.1 1 2 4 3 4 3 3 1 0 0 0 Team member 2ABAP 2.2 ABAP 3.1 4 4 4 4 4 3 4 1 2 3 1 Team member 3ABAP 2.1 ABAP 2.2 1 1 4 3 4 2 4 0 2 1 0 Team member 4ABAP 1.1 ABAP 2.1 1 1 2 1 2 1 0 0 0 1 0 Team member 5ABAP 4.1 N/A 2 0 2 2 2 4 4 1 2 2 0 Team member 6ABAP 2.1 ABAP 2.2 3 1 3 2 3 2 0 0 1 3 2 Team member 7ABAP 2.2 ABAP 3.1 4 2 4 3 4 2 4 1 2 3 0 Team member 8ABAP 2.2 ABAP 3.2 4 2 4 3 4 3 4 1 2 3 0 Team member 9ABAP 4.1 N/A 3 2 4 3 3 4 4 4 3 3 1 Team member 10ABAP 4.1 N/A 3 2 4 2 4 4 4 2 3 2 1 Team member 11 N/A ABAP 2.1 2 2 4 2 3 2 2 0 0 0 0 Team member 12ABAP 2.1 ABAP 2.2 1 0 3 2 2 0 2 0 2 2 0 Team member 13ABAP 1.1 ABAP 3.1 3 1 4 3 4 3 3 2 3 2 1 Team member 14ABAP 2.1 ABAP 2.2 0 1 2 2 1 0 0 0 0 0 0 Team member 15ABAP 2.1 ABAP 2.2 1 0 2 1 1 0 0 0 0 1 0 Team member 16ABAP 2.1 ABAP 2.2 1 0 2 2 1 0 0 0 0 1 0 Team member 17ABAP 2.1 ABAP 2.2 1 1 2 1 1 0 0 1 1 1 1 Project Target 3 4 10 5 6 5 8 3 3 5 0 Current status 7 1 11 7 10 7 9 1 3 5 0 Target Date 31st Jan 31st Jan Skills None 0 Trained 1 Experienced 2 Proficient 3 Expert 4 • Training plan identified for skill gaps Module Pool Enhance ments Interfaces (In/Out) Conversion Workflow EDI/ALE OOPS WebDynpro • Internal training provided on Adobe forms and workflow • On the job mentoring done through collaborative development © 2014 WIPRO LTD | WWW.WIPRO.17 COM | CONFIDENTIAL
  18. 18. Control Charts – Average Cycle Time I-MR Chart of P3 Resolution time (Avg Days) UC L=80.8 31.503 21.848 _ X=20.2 _ UC L=27.4 X=13.1 LC L=-40.4 LC L=-1.2 1 3 5 7 9 11 13 15 17 19 50 0 -50 Observation Individual Value 31.503 21.848 UC L=74.45 __ MR=22.79 UC L=17.58 __ MR=5.38 LC L=0 LC L=0 1 3 5 7 9 11 13 15 17 19 80 60 40 20 0 Observation Moving Range Control charts were used to monitor cycle average and maximum cycle time for P2, P3 and P4 categories. Out of control points were analyzed for specific reasons and appropriate preventive / corrective actions. Observed improvement in average cycle time for both P3 and P4 tickets Cycle Time (Days) Before I-MR Chart of P4 Avg Days_1 by P4 Avg Days_1 27.337 5.968 27.337 5.968 © 2014 WIPRO LTD | WWW.WIPRO.18 COM | CONFIDENTIAL (Wk 49 – 4) After (Wk 5 – 14) P3 – Average 20.2 13.1 P4 - Average 13.9 9.23 1 3 5 7 9 11 13 15 17 30 20 10 0 -10 Observation Individual Value _ X=13.90 _ X=9.23 UC L=33.24 UC L=23.60 LC L=-5.45 LC L=-5.15 1 3 5 7 9 11 13 15 17 24 18 12 6 0 Observation Moving Range __ MR=7.27 __ MR=5.41 UC L=23.77 UC L=17.66 LC L=0 LC L=0
  19. 19. Validation of Process Improvements Observed that process improvements are statistically significant when compared with pre-improvement stage. © 2014 WIPRO LTD | WWW.WIPRO.19 COM | CONFIDENTIAL Before : Jul – Sep 2013 After: Mar – May 2014
  20. 20. Benefits – Productivity and Cycle time  Ticket resolution effort reduced by 62%  83.4% increase in throughput for “back office” tickets resolved with the same team size.  Cycle time reduction of:  16.54% for P2 tickets  35.14% for P3 tickets  33.59% for P4 tickets  Cost of delivery (Manpower costs as % of revenue) reduction from 36.8% to 25.1%.  Enhanced people engagement / end user experience 2.5 2 1.5 1 0.5 0 Trend Chart of Effort per ticket BO Resolution Performance(Oct '13-May '14) 205 50% 500 450 400 350 300 250 200 150 100 60% 55% 50% 45% 40% 35% 30% 25% 20% © 2014 WIPRO LTD | WWW.WIPRO.20 COM | CONFIDENTIAL (p.days) p-Days 22% 36% 33% 29% 36% 44% 43% 231 214 220 376 380 425 326 50 15% Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Percentage Resolution Month BO Contribution # of Tickets in BO
  21. 21. Customer Delight – CSAT Improvement  Customer commendation – Customer commended the team for resolving 425 tickets from offshore (BO) in April 2014 against 173 in July 2013.  Customer PCSAT improved to 6/7 from 5/7 in FY12-13 – Customer was impressed with the implementation of lean during his visit and would like to carry forward these tenets back to his team.  Annual CSAT survey - Continuous Improvement as Expectation1 with rating 6/7 and average overall rating 6/7. % Satisfied (Top2 Box – rating 6 or 7) improved from 60% to 100%  Benefits passed on to the Customer – Additional throughput with same team size resulted in annualized savings of 1.3 million USD  Customer renewed the contract 6 months in advance for 1 more year (earlier contract end date was October 2014), extended contract value = 5.5 Mn USD ACV (from Nov’14 – Oct’15) © 2014 WIPRO LTD | WWW.WIPRO.21 COM | CONFIDENTIAL
  22. 22. Control / Sustenance Plan • Continued usage of • Kanban board • Daily huddle around the Kanban board – 3 questions • Resolution effort per ticket – To be monitored and sustained at 0.9 – 1.0 p.days • Trend Chart of cycle time – Max and Avg Resolution chart plots to be continued and monitored / analyzed for any spikes and troughs. • Continued Inflow vs capacity analysis / cross skilling as required • Disseminate lessons learnt to the team. • Monthly retrospectives • Root Cause Analysis for any exceptions • Tickets slipping SLAs • High cycle time • Failure load © 2014 WIPRO LTD | WWW.WIPRO.22 COM | CONFIDENTIAL
  23. 23. Conclusion / Lessons Learnt Visualize Kanban Board, Swim lanes • Integrated Kanban Board • Due date • Delay Indicators • Zeigarnik effect Flow WIP Limits CFD • WIP Patterns • Surface bottlenecks • Reduce hand-offs • Streamline demand © 2014 WIPRO LTD | WWW.WIPRO.23 COM | CONFIDENTIAL Optimize Lean Kaizen • Exploit, then elevate • Cross functional teams • Reduce failure load • Enhance capability
  24. 24. References © 2014 WIPRO LTD | WWW.WIPRO.24 COM | CONFIDENTIAL
  25. 25. Winning Team © 2014 WIPRO LTD | WWW.WIPRO.25 COM | CONFIDENTIAL
  26. 26. Thank You Balaji Ganesh N Sirisha Somanchi © 2014 WIPRO LTD | WWW.WIPRO.26 COM | CONFIDENTIAL

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