Manage Flow - In search of flow efficiency (v2)

Manage Flow
Manage Flow
in search of ﬂow efﬁciency
Thursday, 14 August 14

Manage Flow
Chris McDermott
@chrisvmcd
Coach/Developer/Conference Organiser
www.leanagilescotland.com
@LeanAgileScot

Manage Flow
Can we improve the productivity of knowledge workers
by a factor of ﬁfty times during the twenty ﬁrst century?

Manage Flow
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working waiting working waiting working waiting
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Manage Flow
what?

Manage Flow
efﬁciency:
“in general, describes the extent to which time, effort
or cost is well used for the intended task or purpose.”
http://en.wikipedia.org/wiki/Efﬁciency

Manage Flow
resource efficiency:
“involves utilising resources as much as possible”
“A basic principle in this industrial development is to
divide an incoming job into smaller tasks, which are
carried out by different individuals and organisational
functions.”
“Another principle is to find economies of scale.
Grouping smaller tasks together so that individuals, parts
of an organisation, or the whole organisation can perform
the same task many times over increases resource
efficiency”
This Is Lean - Niklas Modig & Pär Åhlström

Manage Flow
resource efficiency:
“involves utilising resources as much as possible”
“A basic principle in this industrial development is to
divide an incoming job into smaller tasks, which are
carried out by different individuals and organisational
functions.”
“Another principle is to find economies of scale.
Grouping smaller tasks together so that individuals, parts
of an organisation, or the whole organisation can perform
the same task many times over increases resource
efficiency”
Xpeople

Manage Flow
flow efficiency:
“focuses on a unit processed in an organisation”
“In manufacturing, the unit is a product comprised of
different types of components that are processed in
various stages to make the product.”
“we refer to this form of efficiency as flow efficiency
because it focuses on the unit that ‘flows’ through the
organisation.”

Manage Flow

Ops Review
value receiving time in relation to lead time
*Value as seen through the eyes of the customer
lead time
*

Ops Review
lead time
value received
*

Ops Review
lead time
value received
waiting
*

Ops Review
lead time
value received
waiting
ﬂow efﬁciency =
value received time
lead time
x 100%
*

Ops Review
lead time
value received
waiting
ﬂow efﬁciency =
value received time
lead time
x 100%
20% =
(4 x 5 seconds)
100 seconds
x 100%
(100 secs)
(5 secs)
*

Ops Review

Manage Flow
why?

Manage Flow
faster time to market

Manage Flow
reduces secondary needs which reduces
superﬂuous work

Manage Flow
superﬂuous work
reduce stress, stay in control

Manage Flow
superﬂuous work
faster feedback, better decisions

Manage Flow
superﬂuous work
smoother/less handovers

Manage Flow
superﬂuous work
smoother/less handovers
faster resolution of defects

Manage Flow
how?

Manage Flow
“Kanban shines a light into some dark places of your org.
Are you brave enough to keep it on?”

Manage Flow
“Kanban shines a light into some dark places of your org.
Are you brave enough to keep it on?”
Kanban doesn’t provide the answers, it asks the questions.

Manage Flow
“Whatever the bottleneck produces
in an hour is equivalent to what the
plant produces. Every hour lost at a
bottleneck is an hour lost in the
entire system.”
Eliyahu Goldratt

Manage Flow
Analysis
(5)

Manage Flow
Analysis
(5)
Dev
(9)

Manage Flow
Analysis
(5)
Dev
(9)
Test (2)

Manage Flow
Analysis
(5)
Dev
(9)
Test (2)
Deploy
(6)

Manage Flow
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Ready 4
ReviewBacklog Dev (4) Review Done
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X
X

Manage Flow
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Ready 4
ReviewBacklog
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Dev (4) Review Done
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X
X

Manage Flow
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Ready 4
ReviewBacklog Dev (4) Review Done
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X

Manage Flow
“Economy is in ﬂow, not scale!”
John Seddon

Manage Flow
Littles Law
Work In Progress
Average LeadTime =
Throughput

Manage Flow
Littles Law
Work In Progress
Average LeadTime =
Throughput
10 in progress
5 per week
2 day =

Manage Flow
Littles Law
Work In Progress
Average LeadTime =
Throughput
10 in progress
5 per week
2 day =
5 in progress
5 per week
1 day =

Manage Flow
Littles Law
Work In Progress
Average LeadTime =
Throughput
10 in progress
5 per week
2 day =
5 in progress
5 per week
1 day =
20 in progress
5 per week
4 day =

Manage Flow
Littles Law
Work In Progress
Limiting WIP improves lead times
Average LeadTime =
Throughput
10 in progress
5 per week
2 day =
5 in progress
5 per week
1 day =
20 in progress
5 per week
4 day =

Manage Flow
Ready 4
DevBacklog Analysis Dev Test Dev
Func
Test Done

Manage Flow
Ready 4
Func
Test Done
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Manage Flow
Ready 4
Func
Test Done
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X

Manage Flow
“It is not enough to do your best; you
must know what to do, and then do
your best.”
W. Edwards Deming

Manage Flow
FOR
SALE
FOR
SALE
FOR
SALE
FOR
SALE
£￡
£￡
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£￡

Manage Flow
FOR
SALE
£￡
£￡
£￡
£￡

Manage Flow
FOR
SALE
£￡
£￡
£￡
£￡
FOR
SALE
FOR
SALE
FOR
SALE

Manage Flow
FOR
SALE
£￡
FOR
SALE
FOR
SALE
FOR
SALE

Manage Flow
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Manage Flow
“In God we trust; all others must
bring data.”
W. Edwards Deming

Manage Flow
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lead time - 30+ days

GH-234 3 432 2111 43 3 3
7 77

Manage Flow
~ 1 2 3 4 5 6 7 ~
22% ﬂow efﬁcient
Sprint commitment to Ready for Prod

Manage Flow
“To manage a system effectively, you
might focus on the interactions of the
parts rather than their behaviour
taken separately.”
Russell Ackoff

Manage Flow
Systems Thinking 101

Manage Flow
What is a system?

Manage Flow
What is a system?
A system is a whole

Manage Flow
What is a system?
A system is a whole
Which consists of parts

Manage Flow
What is a system?
A system is a whole
Each of which can affect the system behaviour or system properties

Manage Flow
What is a system?
A system is a whole
Each part of the system, when it affects the system, is dependent on its
affect for some other part

Manage Flow
What is a system?
A system is a whole
In other words the parts are interdependent

Manage Flow
What is a system?
A system is a whole
In other words the parts are interdependent
The essential or deﬁning properties of any system are properties of the
whole that none of it’s parts have.

Manage Flow
E.g.

Manage Flow
E.g.
A car

Manage Flow
E.g.
A car
The essential property of a car is that it can carry you from one place to
another

Manage Flow
E.g.
A car
another
No part of a car can do that

Manage Flow
E.g.
A car
another
The wheel? The seat? The engine?

Manage Flow
E.g.
A car
another
We have certain characteristics, the most important being life

Manage Flow
E.g.
A car
another
None of our parts live, we have life

Manage Flow
E.g.
A car
another
We can write, our hand can’t write

Manage Flow
E.g.
A car
another
We can see, our eye can’t see

Manage Flow
E.g.
A car
another
We can see, our eye can’t see
We can think, our brain can’t think

Manage Flow
In a nutshell... a system is:

Manage Flow
elements

Manage Flow
elements
which interact

Manage Flow
elements
which interact
to meet a purpose

Manage Flow
Systems Thinking
~ Mike Burrows

Manage Flow
Systems Thinking
concerned with understanding how systems behave as a whole
~ Mike Burrows

Manage Flow
Systems Thinking
emphases the relationships, interactions and inﬂuences between
components and the behaviours and outcomes that emerge from these
~ Mike Burrows

Manage Flow
Systems Thinking
emphases the relationships, interactions and inﬂuences between
components and the behaviours and outcomes that emerge from these
applied to social, economic and political systems
~ Mike Burrows

Manage Flow
Systems Thinking
(answers ‘why’ questions)

Manage Flow
8 volunteers...

Manage Flow
“It is not necessary to change. Survival
is not mandatory.”
W. Edwards Deming

Manage Flow
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Analysis
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Ready 4
Test
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Ready 4
3
Amigos TestBacklog
Ready 2
Celebrate DoneDev
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Manage Flow - In search of flow efficiency (v2)

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