This presentation observes the concepts of Lean in Automotive from the spectacular recovery of Porsche, in the 90's. It then provides some thoughts on how Lean Thinking could be applied in IT. More importantly, Lean thinking is close to the agile efforts in IT and similar leadership traits should be applied. This talk will be updated soon to include the further story of Porsche and their product development.

1. Philippe Guenet, 01/08/2017
From Lean in
Automotive to
Lean in IT
Image source: howstuffworks.com

2. Quest of improving IT delivery
Adopting
Agile @
Scale
Making
Banks
Leaner
V.

3. What automotive can tell us
about IT?
§ Toyota Production
System, emergence of
Lean
§ Customers need variety
§ Smaller batches
§ Just-in-time
§ Lean value chain
§ Lean as industry
standard
Image source: www.supplychaindigital.com

4. 70% drop in sales
between 1986 and 1993
Ranked <#30 for quality
High production costs
Losses of €214m
over 3 years
Porsche in the early ‘90s

5. “We must fix
Production”
§ New CEO - Wendelin
Wiedeking
§ Japanese Lean
consultants: “the
factory looks more like
a warehouse”
§ Reduce inventory
§ Gemba: Cut height of
shelves
§ Reduce production
defects
Image source: Porsche Consulting, Porsche AG

6. Production recovery
Continuous
evolution of the
production,
73% less time
to assemble the
911
Image source: Porsche Consulting, Porsche AG

7. Architecture evolution
The Porsche 911 - 50 years of evolution
A classic architecture, always improved
Image source: Porsche AG, www.autoblog.com

8. Standardisation of platforms
Standardisation of platforms and components (incl. VW group)
Standardisation of processes, tools and assembly
…yet highly desirable & differentiated products
Image source: Porsche AG

9. Automotive manufacturers adopt a matrix organisation
This drives platform development and component reuse
Matrix organisation

10. Results
§ Porsche sold 225,000
vehicles in 2015 (x10
volumes of the 90s)
§ Most profitable car
manufacturer in the world
§ #1 for Quality (2013-
2015)
§ Zuffenhausen is still the
historic factory +
Leipzig
§ €8,911 bonus awarded
to every employee in
2015
Image source: Porsche AG

11. How is this relevant to IT in Banks?
“ The main difference
between Service and
Manufacturing is the
Service department
doesn’t know that
they have a product.”
W. Edwards Deming
Image source: www.census.gov

12. Different start points / same goal
Standardisation of Platforms and
Components
Industrialisation of processes
Lean touchpoints and
automation
End product specific from
variants of common components
Very clear control of costs
Information Technology:
Bespoke Development à Standardised assembly
Automotive Manufacturing:
Mass production à Mass customisation

13. State of the Financial sector
Global
Financial
Crisis of 2008
Need for
drastic cost
cutting
Need to
transform
Legacy IT
Burden of
Regulatory
Compliance
Technology
disruption
& FinTechs
New entrants
with leaner
operations
Are the Banks of 2017 like Porsche in the 90s?

14. Typical struggles of IT in Banks
• Tactical solutions leading to technical debt
• Silos & poor re-use
• Disruptive programmes of Change
• Inconsistent infrastructure & tools
• Go “low-cost” / Off-shoring as only solution
A considerable waste
on the shop floor of IT Delivery

15. New management of IT
ORGANISATION
• Enable the flow of work
• Incentivise continuous improvements
• Organise for re-use
• Leverage people, including partners
PRODUCT
• Innovate fast
• Standardise base
components
• Engineer platforms
and micro-services
• Manage technical debt
PROCESSES
• Improve tools
• Standardise assembly
• Automate
• Optimise processes
• Safeguard quality
• Measure progress

16. Matrix organization of IT
Delivery units produce Change
projects and optimise Delivery
Specialist units enable re-use
whilst engineering platforms &
components

17. Purposeful evolution
Stabilisation Optimisation Automation Innovation
Leaning the operations &
technology
Exploiting opportunity of
agility
LEAN - AGILE

18. Philippe Guenet
Founder | Principal Consultant
pguenet@henko.co.uk
+44 (0) 7798 623 007
@HenkoPhil