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Classes of Service - the "sonic screwdriver" of Kanban Coaching

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Digite SwiftKanban Webinar May 2017
Classes of service are used to manage non-deterministic problems in Kanban and Enterprise Services Planning. This presentation shows how to design and use classes of service to improve flow, improve predictability of delivery date, how to inform selection and scheduling and how to manage dependencies using dynamic reservation systems

Published in: Leadership & Management
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Classes of Service - the "sonic screwdriver" of Kanban Coaching

  1. 1. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Classes of Service the sonic screwdriver of the Kanban coach Reductionist determinism is the “dark side,” resist it with Classes of Service David J. Anderson Chairman, Lean Kanban Inc Swift Kanban Webinar May 2017
  2. 2. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. The Sonic Screwdriver is the utility tool of Dr. Who! Useful for opening locks through to befuddling or sedating any and all alien enemies. The Sonic Screwdriver is the only weapon a Time Lord ever needs
  3. 3. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Sonic Screwdrivers are benign yet fiendishly powerful! A sonic screwdriver does no harm or lasting damage It’s lightweight, easy to carry and deploy but it requires calibration and configuration for each situation Its versatility is its strength!
  4. 4. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Classes of Service
  5. 5. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Classes of Service are to the Kanban Coach what the Sonic Screwdriver is to Dr. Who!... A lightweight, highly configurable, very versatile tool for coping in uncertain and unpredictable situations
  6. 6. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. A Class of Service is defined by a set of policies which determine how something should be treated In a Kanban system, a class of service typically determines the priority of selection of a ticket and how quickly it will flow across the board
  7. 7. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Classes of Service are typically visualized using color Expedite – white; critical; top priority; no waiting; pre-empts other work; can exceed other kanban limit (bumps other work); limit 1 Fixed date – orange; critical cost of delay after externally controlled deadline; give priority where necessary Standard - yellow; typically flowed on a FIFO basis based on start date Intangible – blue; not urgent, may be critical over long term; protect capacity; risk hedge against Expedite; select & flow only when no Expedite or Fixed Date items are present Class of service and its policiesColorSelection 1st 2nd 3rd 4th
  8. 8. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Capacity allocated by class of service with kanban limit per color 5 4 4 5 2 = 20 total Allocation 10 = 50% ... +1 = +5% 4 = 20% 6 = 30% Input Queue In Prog DoneDoneIn Prog DevelopmentAnalysis Build Ready Test Release Ready
  9. 9. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Classes of Services are a critical tool in risk management Classes of service have two main roles in Kanban and Enterprise Services Planning 1. Improving predictability of lead time for high risk items 2. Improving dependency management
  10. 10. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Classes of Service are used to affect lead times and improve predictability of flow Classes of service are used to give some items priority & reduce waiting times in the workflow
  11. 11. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Reductionist deterministic planning is the way of the Dark Side A Jedi must embrace uncertainty Learn to manage probabilistically, you must!
  12. 12. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Classes of Service are also used to minimize the burden of dependency management Like purchasing a “standby” ticket for a flight, we can provide classes of service for scheduling in a kanban reservation system
  13. 13. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Flow Efficiency
  14. 14. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Test Ready Flow Efficiency F E I G D GY PB DE MN P1 AB Customer Lead Time Waiting Waiting WaitingWorking * Zsolt Fabok, Lean Agile Scotland, Sep 2012, Lean Kanban France, Oct 2012 ** Hakan Forss, Lean Kanban France, Oct 2013 Ideas Dev Ready 5 Ongoing Development Testing Done 3 35 UAT Release Ready ∞ ∞ Flow efficiency measures the percentage of total lead time is spent actually adding value (or knowledge) versus waiting Flow efficiency % = Work Time x 100% Lead Time Flow efficiencies of 1-5% are commonly reported. *, ** > 40% is good! Working WaitingWorking Multitasking means time spent in working columns is often waiting time
  15. 15. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Work flows better when WIP levels are low Done Pool of Ideas F E I Engin- eering Ready Deploy- ment Ready G D 2 ∞ Ongoing Development Testing Done Verification Acceptance 8 3 N With excessive WIP in the system tickets must wait in “done” states for longer periods of time The period spent waiting in a “done” state is non- deterministic because the risk profile and skills required for a piece of work determine its selection against the others it is waiting alongside.
  16. 16. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Work flows better when workers are well matched to work Done Pool of Ideas F E I Engin- eering Ready Deploy- ment Ready G D 2 ∞ No Pull Ongoing Development Testing Done Verification Acceptance 3 3 Work flows through a kanban system when work items are well matched with skills of available staff. When there is a poor match work waits for a suitable worker to become available. For work to flow freely in a kanban system, we must have work available to pull and suitably matched workers available to pull it. Hence, the act of pulling is the indicator that an item of work was matched to available workers and flow happened.
  17. 17. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. “pull criteria” policies affect flow & may cause delay in activity states 5 4 43 2 2 Input Buffer Dev Ready In Prog Done Build Ready Test Release Ready Stage Prod. DoneIn Prog DevelopmentAnalysis Policies ~~~~~~ ~ ~ ~ ~ Policies ~~~~~~ ~ ~ ~ ~ Policies ~~~~~~ ~ ~ ~ ~ Policies ~~~~~~ ~ ~ ~ ~ Delay until criteria are met We may choose to reduce flow efficiency in order to boost quality or meet regulatory requirements. Different risks affect flow time
  18. 18. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Flow through a kanban system is non-deterministic 5 4 43 2 2 Input Buffer Dev Ready In Prog Done Build Ready Test Release Ready Stage Prod. DoneIn Prog DevelopmentAnalysis These are not queues !!! But buffers or “supermarkets” Work waiting is seldom queueing unless the class of service describes a queueing discipline such as FIFO “done” and “ready” states in kanban systems are not queues, they are buffers or supermarkets. This means selection can be random & “queueing time” cannot be predicted. Think of them as “beauty contests”
  19. 19. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Waiting Waiting WaitingWorking Working WaitingWorking Test Ready Implications of low Flow Efficiency F E I G D GY PB DE MN P1 AB Ideas Dev Ready 5 Ongoing Development Testing Done 3 35 UAT Release Ready ∞ ∞ Low flow efficiency means that most of lead time is influenced by environmental factors that are unlikely to change soon Customer Lead Time In a low flow efficiency environment, Class of service is much more likely to influence lead time than any other factor As a result, lead time is not very sensitive to the size or complexity of a single work item, or to the specific people involved or their individual capabilities
  20. 20. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Summarizing Flow Efficiency Flow efficiencies are typically low on average Lead time mostly consists of waiting time Periods spent waiting are non-deterministic Lead times are non-deterministic Estimations of effort or working time are of little value as they represent a small percentage of the lead time Predicting lead time with accuracy is impossible
  21. 21. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Classes of Service correlates to flow efficiency Expedite – High flow efficiency. Often close to 100%. Preempts other work – almost no waiting time. Gaussian lead time distribution Fixed date – Higher flow efficiency. Some waiting. Tend to defer commitment until “just- in-time” & give flow priority Standard – Low flow efficiency in conditions of high worker utilization or heterogeneous skills requirements. Non-deterministic wait times Intangible – Very low flow efficiency. Defers to Expedite or Fixed Date items. Often preempted. Long, non deterministic wait times Class of service and its policiesColorSelection 1st 2nd 3rd 4th
  22. 22. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Scheduling
  23. 23. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. “When will [my item] be done?” Asking “When will [my item] be ready?” is the wrong question  Lead times are non-deterministic unless an item is implicitly given a high class of service to eliminate wait times  By implication, you can’t do this for every item. If all items are being expedited then none are being expedited – its just non-deterministic chaos Ask “When do you need to start [my item] in order to guarantee it is ready when I’d like to receive it or when I need it?”  Start times can be determined and controlled  Scheduling work items is something we control, wait times during flow cannot be controlled without class of service policies and queuing discipline
  24. 24. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Considering Probable Loss from Delay in Starting impact When we need it Zone of possible delay cost If we start here Commitment point timeJan 10 Nov 11 To consider the best time to start something we can examine the probable opportunity lost by multiplying the lead time probability distribution function against the Delivery Delay Cost function. By sliding the lead time distribution across the Delivery Delay Cost we can compare the Probable Delay Costs for a delay in starting Delay Cost Function
  25. 25. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. A typical lead time distribution function
  26. 26. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Filter for Expedite requests
  27. 27. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Filter for Fixed Date requests
  28. 28. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Filter for Standard class requests
  29. 29. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Filter for Intangible class requests
  30. 30. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Using classes of service enables us to hack the probability distribution
  31. 31. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. What if everything was Standard class?* i.e. No classes of service, treat all work homogeneously
  32. 32. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Predictability versus Risk Trade Because cost of delay risk isn’t homogeneous, we introduce classes of service. We trade the overall range in lead time, and general predictability for greater predictability of items with a high cost of delay. Where cost of delay is homogeneous a single class of service is preferred.
  33. 33. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Now consider Fixed Date class of service impact When we need it Now we can start here Commitment point timeJan 10 Dec 01 By introducing a Fixed Delivery Date class of service and filtering the Lead Time probability distribution function (PDF) just for Fixed Date items, we significantly narrow our risk. We can defer starting until 1st December & have close to 100% confidence of on-time delivery Delay Cost Function Anticipated delivery
  34. 34. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. #2 - Dependency Management
  35. 35. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Dependency Management Another area of inherent uncertainty Costly in time and money to solve deterministically Often deterministic approaches fail to resolve all dependencies and result in anxiety and rushed re-planning when discovered late As a reaction the desire is often to double-down, spend more time and money on better analysis to improve dependency detection and inform more accurate planning This should be a red flag!
  36. 36. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Cost of Delay informs Dependency Management When the cost of delay is small or there is sufficient time to start early then there is no need to manage dependencies explicitly. Let them emerge and manage them dynamically Where the cost of delay is greater introduce a dynamic reservation system using different classes of service to reserve capacity on dependent services
  37. 37. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Reservation systems First reported by Sami Honkonen, “Scheduling Work in a Kanban” November 2011 http://www.samihonkonen.com/wp-content/uploads/2011/11/scheduling-work-in-kanban.pdf
  38. 38. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Dynamic Reservation & Classes of Service Based on variability of service delivery throughput 1. Guaranteed – up to the minimum delivery rate 2. Reserved (not guaranteed) – minimum to mean delivery rate 3. Stand-by – mean to maximum delivery rate Reservation Classes & Kanban 1. Guaranteed = 6/week 2. Reserved = 4/week 3. Standby = 6/week
  39. 39. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Dependency discovery Dependency discovery is a request for information Dependency discovery should happen upstream and be required for a “definition of ready” Providing information is a service We should track dependency discovery requests as work item types, if the level of effort required is more than a few minutes and becomes intrusive for one or more people on the service delivery side Dependency discovery requests (like many requests for information, e.g. estimates) can be disruptive (and speculative) demand We should treat dependency discovery like estimates: don’t do it unless you really need to; if you need to then control the disruptive effect through time slicing or resource/service delivery isolation
  40. 40. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Classes of Service for Reservation Systems We typically associate classes of service with service delivery and the queuing discipline of tickets flowing through Kanban boards We can use classes of service for reservations in scheduling systems. For example, you can hold a “stand by” reservation for a “first class” air ticket. Different classes of services for the reservation versus the actual flight Use risk profiling to determine whether you care about delay from dependency risk  E.g. if we have a low cost of delay why would we bother to explicitly manage for dependencies which may cause delay Determine a class of service which directs policy on how (or if) you will manage dependencies for an item and how a reservation will be made  In which time slot should we make a reservation and which class of service (guaranteed/reserved/stand-by) is appropriate
  41. 41. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Class 1 No Dependency Management Calling Service Called Service We Don’t Care! No WIP limits Dependency impact is built into customer lead time distribution. We start early enough & cost of delay is low enough that we don’t need to explicitly manage the dependency
  42. 42. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Class 2 Tail Risk Mitigation. Reserved Capacity Calling Service Called Service WIP limits [5] [2] We wish to mitigate the tail risk in the customer facing lead time by insuring dependency delivery is predictable & reliable as a consequence of reserved capacity on the called service
  43. 43. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Class 3 Known Dependency. Informed Scheduling Calling Service Called Service Reservation system [5] [2] Filtered lead time “Reserved” Class Booking Dependency Analysis Determine the dependency exists, make a reservation for it to insure capacity on the called service when we need it!
  44. 44. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Class 4 Known dependency. Specific Scheduling Calling Service Called Service Reservation system “Reserved” “Guaranteed” Class Booking “Defn of Ready” requires confirmed booking on called service We want a high confidence in the start time for customer lead time. We take no risk on dependent capacity becoming available
  45. 45. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Class 5 No margin for error Calling Service Called Service “Guaranteed” “Guaranteed” Class Booking “Defn of Ready” requires confirmed “Guaranteed” booking on called service No margin for error! We want 100% confidence in the start time for customer lead time and no risk on dependent capacity availability
  46. 46. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Multiple Reservations Cost of delay (and other risk assessment) can be used to establish, optimal start, and whether earlier or later is preferred if optimal isn’t available Make multiple bookings at lower classes of service “reserved”, or “standby” for the same item. If it shows up early and capacity is available start it, cancel its other reservations “Guaranteed” “Reserved” “Stand by” 3 bookings for same ticket
  47. 47. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Conclusions
  48. 48. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. The Sonic Screwdriver is the utility tool of Dr. Who! Useful for opening locks through to befuddling or sedating any and all alien enemies. The Sonic Screwdriver is the only weapon a Time Lord ever needs
  49. 49. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Sonic Screwdrivers are benign yet fiendishly powerful! A sonic screwdriver does no harm or lasting damage It’s lightweight, easy to carry and deploy but it requires calibration and configuration for each situation Its versatility is its strength!
  50. 50. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Classes of Service are to the Kanban Coach what the Sonic Screwdriver is to Dr. Who!... A lightweight, highly configurable, very versatile tool for coping in uncertain and unpredictable situations
  51. 51. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Classes of Services are a critical tool in risk management Classes of service have two main roles in Kanban and Enterprise Services Planning 1. Improving predictability of lead time for high risk items 2. Improving dependency management
  52. 52. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Classes of Service are used to affect lead times and improve predictability of flow Classes of service are used to give some items priority & reduce waiting times in the workflow
  53. 53. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Classes of Service are also used to minimize the burden of dependency management Like purchasing a “standby” ticket for a flight, we can provide classes of service for scheduling in a kanban reservation system
  54. 54. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Reductionist deterministic planning is the way of the Dark Side A Jedi must embrace uncertainty Learn to manage probabilistically, you must!
  55. 55. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. What other uses can you find for classes of service? Every time you feel the pull of the Dark Side, the desire to produce deterministic plans based on speculation, you should think “How can Class of Service help me?”
  56. 56. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Classes of Service in Kanban - The Sonic Screwdriver of Kanban Coaches
  57. 57. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Thank you!
  58. 58. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. About David Anderson is an innovator in management of 21st Century businesses that employ creative people who “think for a living” . He leads a training, consulting, publishing and event planning business dedicated to developing, promoting and implementing new management thinking & methods… He has 30+ years experience in the high technology industry starting with computer games in the early 1980’s. He has led software organizations delivering superior productivity and quality using innovative methods at large companies such as Sprint and Motorola. David defined Enterprise Services Planning and originated Kanban Method an adaptive approach to improved service delivery. His latest book, published in June 2012, is, Lessons in Agile Management – On the Road to Kanban. David is Chairman of Lean Kanban Inc., a business operating globally, dedicated to providing quality training & events to bring Kanban and Enterprise Services Planning to businesses who employ those who must “think for a living.”
  59. 59. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. … Acknowledgements
  60. 60. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Appendices
  61. 61. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. Books
  62. 62. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. 2010 – Kanban “blue book”
  63. 63. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. 2012 Lessons in Agile Management The heavily under-rated book that underpins the Kanban Coaching Masterclass and most of the theory behind the Kanban Method
  64. 64. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. 2014 Kanban from the Inside
  65. 65. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc. 2016 Essential Kanban Condensed
  66. 66. Email dja@leankanban.com Twitter @lki_dja Copyright Lean Kanban Inc.

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