These slides are from the presentation at http://www.agiletourlondon.co.uk 1/11/2013. They are based on simulated results using a basic Kanban workflow. The goal of the presentation was to explain the Theory Of Constraints by example and show how this can be applied to make effective changes and to provoke thinking about the wider system we work within

1. Making Changes That Matter
Theory Of Constraints - A Fundamental Systems Thinking Principle!
Craig Strong!
@craigstrong
craig.strong@c6s.co.uk
www.strongandagile.co.uk
Daryn Holmes!
@darynholmes
darynholmes@gmail.com
!1
http://darynholmes.wordpress.com

2. Goal Of Presentation
1. Explain the Theory Of Constraints by example and
show how this can be applied to make effective
changes
2. To provoke thinking about the wider system we work
within
!
!2

3. Theory Of Constraints
1. Identify The Bottleneck
2. Exploit The Bottleneck
3. Subordinate Every Decision To The Bottleneck
4. Elevate The Bottleneck
5. And Again!
!3

4. From Manufacturing To Software
!4

5. Lead Time ?
The elapsed time between starting and finishing a defined process
!5

6. Kanban Workflow
Day 0
Output : 0
Design
Ready
In Progress
Story
Done
In Progress
Done
Test
In Progress
0
Story
Development
0
Story
Story
Story
System WIP = 2
!6
Shipped

7. Kanban Workflow
Output : 0
Day 1
Design
Ready
In Progress
Development
Done
Story
Done
In Progress
1
Story
In Progress
Test
1
Story
Story
Story
System WIP = 2
!7
Shipped

8. Kanban Workflow
Day 1
Output : 0
Design
Ready
Development
In Progress
Done
0
0
In Progress
Done
Test
In Progress
1
1
Story
Story
Story
System WIP = 4
!8
Shipped

9. Kanban Workflow
Day 1
Output : 0
Design
Development
Ready
In Progress
Done
Story
0
0
1
Story
In Progress
Done
Test
In Progress
1
Story
System WIP = 4
!9
Shipped

10. Kanban Workflow
Day 1
Output : 0
Design
Development
Ready
In Progress
Done
Story
0
0
1
Story
In Progress
Done
Test
In Progress
1
Story
Story
Story
System WIP = 4
!10
Shipped

11. Kanban Workflow
Output : 0
Day 2
Design
Ready
Development
In Progress
Done
In Progress
0
0
1
1
Done
Test
In Progress
2
2
Story
Story
Story
System WIP = 6
!11
Shipped

12. Kanban Workflow
Output : 0
Day 2
Design
Development
Ready
In Progress
Done
In Progress
Story
0
0
1
1
2
Story
Done
Test
In Progress
2
Story
System WIP = 6
!12
Shipped

13. Kanban Workflow
Output : 0
Day 2
Design
Development
Ready
In Progress
Done
In Progress
Story
0
0
1
1
2
Story
Done
Test
In Progress
2
Story
Story
Story
System WIP = 6
!13
Shipped

14. Kanban Workflow
Output : 0
Day 3
Design
Ready
Development
In Progress
Done
In Progress
Done
0
1
1
2
2
Test
3
0
In Progress
3
Story
Story
Story
System WIP = 8
!14
Shipped

15. Kanban Workflow
Output : 0
Day 3
Design
Development
Ready
In Progress
Done
In Progress
Done
Story
0
0
2
2
3
Story
1
1
Test
In Progress
3
Story
System WIP = 8
!15
Shipped

16. Kanban Workflow
Output : 0
Day 3
Design
Development
Ready
In Progress
Done
In Progress
Done
Story
0
0
2
2
3
Story
1
1
Test
In Progress
3
Story
Story
Story
System WIP = 8
!16
Shipped

17. Kanban Workflow
Output : 0
Day 4
Design
Ready
In Progress
Development
Done
0
1
0
1
In Progress
Done
2
2
Test
In Progress
3
3
Story
Story
Story
System WIP = 10
!17
4
4
Shipped

18. Kanban Workflow
Output : 0
Day 4
Design
Development
Ready
In Progress
Done
Story
0
1
Story
0
1
In Progress
Done
2
2
Test
In Progress
3
3
Story
System WIP = 10
!18
4
4
Shipped

19. Kanban Workflow
Output : 0
Day 4
Design
Development
Ready
In Progress
Done
Story
0
1
Story
0
1
In Progress
Done
2
2
Test
In Progress
3
3
Story
Story
Story
System WIP = 10
!19
4
4
Shipped

20. Kanban Workflow
Day 5
Output : 2
Design
Ready
In Progress
Development
Test
Done
In Progress
Done
In Progress
0
1
2
0
1
2
3
3
4
4
Story
Story
Story
System WIP = 10
!20
Shipped
5
5

21. Kanban Workflow
Day 5
Output : 2
Design
Ready
In Progress
Development
Test
Done
In Progress
Done
In Progress
0
1
2
0
1
2
3
3
4
4
Story
Story
Story
System WIP = 10
!21
Shipped
5
5

22. Flow Explained
Day 5
Output : 2
Lead Time = 5 Days
Lead Time =WIP / Throughput
5 Days = 10 / 2
!22

23. Simulator
Theory Of Constraints
Matchstick Game
Simulator
!23

24. Goal
To deliver software more frequently at a
sustainable pace without drastically increasing
costs
!24

25. Common Limitations
•
Limited financial resources
•
Hiring more people often makes the problem
worse
!25

26. Simulated Workflow
WIP LIMIT
Design
Development
Test
Ready
In Progress
Done
In Progress
Done
In Progress
Story
Story
Story
Story
Story
Story
Story
Story
Story
Story
Story
Story
Shipped
Story
Story
Story
Story
Story
Story
!26

27. Initial System State
Backlog
Design
Development
Testing
Min Output
1
1
1
Max Output
10
10
4
40
40
20
WIP
10
!27

28. 500 Cycles Later
!28

29. Results After 500 Cycles
Deployed Units
Avg !
Throughput !
(Per Cycle)
Avg !
WIP
Avg!
Lead Time
1237
2.47
105.67
41 Cycles
!29

30. Theory Of Constraints
1. Identify The Bottleneck
2. Exploit The Bottleneck
3. Subordinate Every Decision To The Bottleneck
4. Elevate The Bottleneck
5. And Again!
!30

31. Present CFD
!31

32. Underneath The Hood
Lead Time
16
15.50
15.38
12
Design (LT = 3.73)
Dev (LT = 15.65)
Test (LT = 23.48)
7.98
8
4
2.98
0.75
0.27
0
Design Backlog
Design Doing
Design Done
Dev Doing
Lead Time
!32
Dev Done
Test Doing

33. Bottlenecks
“Being the bottleneck is not bad, although some people hate
being the focus of attention. Conversely being the bottleneck
is not good, although some people like the attention”
http://www.agilecoach.net
!33

34. Theory Of Constraints
1. Identify The Bottleneck
2. Exploit The Bottleneck
3. Subordinate Every Decision To The Bottleneck
4. Elevate The Bottleneck
5. And Again!
!34

35. How Can We Exploit The
Bottleneck ?
•
Shield the team from interruptions
•
Reduce Task Switching & Introduce WIP
(Max day capacity)
•
Only work on throughput producing work (reduce
personal admin e.g. reports, timesheets, meetings
etc)
•
Not done through overtime as bottleneck will
burnout and slow down over time
!35

36. Lead Time And Feedback
Handoffs and approvals slow down the BuildMeasure-Learn feedback loop and inhibit both
learning and accountability
The Lean Startup: How Constant Innovation Creates Radically Successful Businesses by Eric Ries
!36

37. Exploit The Bottleneck
Backlog
Design
Development
Testing
Min
1
1
1
Max
10
10
4
40
40
20
WIP
10
!37

38. Exploit The Bottleneck
Backlog
Design
Development
Testing
Min
1
1
1
Max
10
10
6 (+2)
40
40
6 (max)
WIP
10
!38

39. 500 Cycles Later
!39

40. Results 500 Cycles
Deployed!
Throughput
Units
Avg WIP
Improved
Lead Time
Lead Time
Original
1237
2.47
105.67
41 Cycles
Exploited
Bottleneck
1727
3.45
90.86
26 Cycles
!40
36%

41. Theory Of Constraints
1. Identify The Bottleneck
2. Exploit The Bottleneck
3. Subordinate Every Decision To The Bottleneck
4. Elevate The Bottleneck
5. And Again!
!41

42. Subordinate Every Decision
To The Bottleneck
•
Reduce the backlog by introducing WIP
upstream. Work to the rhythm of the bottleneck.
•
The bottleneck should always be busy. Wasted
effort on the bottleneck is a wasted effort for
the entire system
!42

43. Subordinate Bottleneck
Backlog
Design
Development
Testing
Min
1
1
1
Max
10
10
6
(40) Now 12
(40) Now 12
6
WIP
10
!43

44. 500 Cycles Later
!44

45. Results 500 Cycles
Deployed!
Throughput
Units
Avg WIP
Improved
Lead Time
Lead Time
Original
1237
2.47
105.67
41 Cycles
Exploited
Bottleneck
1727
3.45
90.86
26 Cycles
36%
Subordinate
Everything
1750
3.49
36.25
10 Cycles
75.6%
!45

46. Subordinate Every Decision
To The Bottleneck
•
Other teams can help test when available and necessary
(Cross Functional Team)
•
If you switch away from your skill your input is reduced
(Simulated up to 40% of effort)
!46

47. Subordinate Every Decision
To The Bottleneck
If the testers have too much work to do, we don’t want
developers to keep building new features and adding to
their workload— instead, they should focus on helping
test. WIP limits act as an alert signal to highlight the
problem before it gets out of hand.
Lean from the Trenches: Managing Large-Scale Projects with Kanban by Henrik Kniberg
!47

48. Solving Problems Together
!48

49. Working Outside Strongest
Skill Set
Job rotation shows people how their work impacts on
others. Goedtel said, “When you get people rotating,
they learn what defects they would send downstream;
so when people rotate to upstream jobs, they don’t send
as many problems down. When everyone knows what’s
important downstream, they take care of it upstream.”
!
Empowered work teams at Chrysler http://www.allpar.com/corporate/empowered-work-teams.html#ixzz2MwiV7cb4
!49

50. Subordinate Bottleneck
Backlog
Design
Development
Testing
Min
1
1
1
Max
10
10
6
12
12
6
WIP
10
!50

51. 500 Cycles Later
!51

52. Cross Functional
Distribution
Over 500 Cycles
200
191
150
121
100
50
38
13
0
0
1
0
Design
Development
Design
Development
!52
1
Testing
Testing
0

53. Results 500 Cycles
Deployed
Deployed!
Avg TP
Throughput Avg WIP
Avg WIP
Units
Units
Original
Exploited
Bottleneck
Subordinat
e
Everything
CFT
Change
Improved
Avg CT
Lead Time
CT
Lead Time
1237
2.47
105.67
41 Days
1727
3.45
90.86
26 Days
36%
1750
3.49
36.25
10 Days
75.6%
2184
4.36
35.27
8 Days
80.5%
!53

54. Theory Of Constraints
1. Identify The Bottleneck
2. Exploit The Bottleneck
3. Subordinate Every Decision To The Bottleneck
4. Elevate The Bottleneck
5. And Again!
!54

55. Better working Environments
Elevate the bottleneck
!55

56. Better Tools
Elevate The Bottleneck
!56

57. Pairing - Team Work
Elevate The Bottleneck
!57

58. Elevate Bottleneck
Backlog
Design
Development
Testing
Min
1
1
1
Max
10
10
6
12
12
6
WIP
10
!58

59. Elevate Bottleneck
Backlog
Design
Development
Testing
Min
(+3) 4
(+3) 4
(+1) 2
Max
(-4) 6
(-4) 6
(-2) 4
8
8
4
WIP
8
!59

60. 500 Days Later
!60

61. Results 500 Cycles
Deployed!
Units
Throughput
Avg WIP
Original
1237
2.47
105.67
41 Days
Exploited
Bottleneck
1727
3.45
90.86
26 Days
36%
Subordinate
Everything
1750
3.49
36.25
10 Days
75.6%
CFT
2184
4.36
35.27
8 Days
80.5%
Elevate
Bottleneck
1926
3.84
23.78
6 Days
85.4%
!61
Improved
Lead Time
Lead Time

62. Lead Time And Feedback
Remember, if we’re building something that
nobody wants, it doesn’t much matter if we’re
doing it on time and on budget.
The Lean Startup: How Constant Innovation Creates Radically Successful Businesses by Eric Ries
!62

63. Lead Time And Feedback
The goal of a startup is to figure out the right thing
to build—the thing customers want and will pay for
—as quickly as possible.
The Lean Startup: How Constant Innovation Creates Radically Successful Businesses by Eric Ries
!63

64. Theory Of Constraints
1. Identify The Bottleneck
2. Exploit The Bottleneck
3. Subordinate Every Decision To The Bottleneck
4. Elevate The Bottleneck
5. And Again!
!64

65. Original CFD
!65

66. Present CFD
Time &
Cost
Original Capacity
!66

67. Deviation Comparison
Original
Elevate
!67

68. Lead Time Built Into Scrum
Sprint 1
5
Story
Sprint 2
8
Story
Sprint 3
8
Littles Law
Story
Lead Time = WIP/Throughput
2
Story
8
Story
2
Story
8
Story
2
Story
2
Story
5
Story
5
Story
5
Story
5 Days = 4 Stories/0.8
Or
5 Days = 18 pts /3.6
5 Days
5 Days
5 Days
Avg Velocity
5 Stories/25 pts
3 Stories/12 pts
4 Stories/17 pts
4 Stories/18 pts
!68

69. ToC Example Applied
http://www.strongandagile.co.uk/index.php/the-hourglass-scrumban-board/
!69

70. Workflow
The bottleneck should always be busy.
Wasted effort on the bottleneck is a wasted
effort for the entire system
Design
Dev
!70
Test

71. Workflow
The bottleneck should always be busy.
Wasted effort on the bottleneck is a wasted
effort for the entire system
Requirements
Design
Dev
?
!71
Test

72. Workflow
The bottleneck should always be busy.
Wasted effort on the bottleneck is a wasted
effort for the entire system
Requirements
Design
Dev
?
Test
Release
?
!72

73. Inventory
!73

74. Links & Books
•
I’m not a bottleneck I’m a free man(http://www.agilecoach.net/coach-tools/bottleneck-game/)
•
http://www.allpar.com/corporate/empowered-work-teams.html#ixzz2MwYdgDYk
!74

75. Thank You
!
Questions ?
Craig Strong!
@craigstrong
craig.strong@c6s.co.uk
www.strongandagile.co.uk
Daryn Holmes!
@darynholmes
darynholmes@gmail.com
!75
http://darynholmes.wordpress.com