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Program Management Office Lean Software Development and Six Sigma

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Program Management Office Lean Software Development and Six Sigma

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Successfully combining a PMO, Agile, and Lean / 6 starts with understanding what benefit each paradigm brings to the table. Architecting a solution for the enterprise requires assembling a “Systems” with processes, people, and principles – all sharing the goal of business improvement.

Successfully combining a PMO, Agile, and Lean / 6 starts with understanding what benefit each paradigm brings to the table. Architecting a solution for the enterprise requires assembling a “Systems” with processes, people, and principles – all sharing the goal of business improvement.

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Program Management Office Lean Software Development and Six Sigma

  1. 1.  PROGRAM MANAGEMENT OFFICE  AGILE SOFTWARE DEVELOPMENT  LEAN / 6 ALL LIVING IN HARMONY? Successfully combining a PMO, Agile, and Lean / 6 starts with understanding what benefit each paradigm brings to the table. Architecting a solution for the enterprise requires assembling a “Systems” with processes, people, and principles – all sharing the goal of business improvement. 1
  2. 2. Where do we start?  Depends on where you want to go  Enterprise projects need some form of enterprise management  Agile software development has specific assumptions about management outside their domain  Lean and 6 are performance measurement processes  The solution starts with the Architecture of the desired business process – not the tools 2
  3. 3. The Core Concepts of Lean 3
  4. 4. The Core Concepts of the Lean Program Management Office “Lean Program Office, Defense Software Summit, 15 October 2007 4
  5. 5. Three Steps to Product and Process Improvement 5 Defining the Controls … That Assures Process Usage … Results in Reduced Waste The existing process, development, and operational controls assessed for effectiveness, efficiency and applicability. These incremental improvements are made using the principles of Kaizen guided by eliminating the 7 Wastes. Control applications applied to standard work. Standard work does not mean constrained, over controlled, draconian. It means “what we do for our customers as a firm is known, defined, and adds value in ways acknowledged by all participants. Using Kaizen as well as other process and product improvement process, search for, remove, and replace Waste Reducing process, products and service.
  6. 6. What do Lean and PMO’s have in Common? Copyright © 2008, Lewis & Fowler, All Rights Reserved, Do Not Use without written permission 6
  7. 7. Lean Processes 7 Specify value Value is defined by the customer in terms of specific products & services Value is defines in terms of Mission Success Identify the value stream Map out all end-to-end linked actions, processes and functions necessary for transforming inputs to outputs to identify and eliminate waste Use a Value Stream Map or VSM to define the “good” plan Make value flow continuously Having eliminated waste, make remaining value-creating steps “flow” Let customers pull value Customer’s “pull” cascades all the way back to the lowest level supplier, enabling just-in-time production Pursue perfection Pursue continuous process of improvement striving for perfection
  8. 8. But We’ve Been Here Before ! Total Quality Management Traditional Six Sigma Lean Thinking Goal Meet customer expectations Reduce process variation Eliminate waste to create value Focus Product quality Sources of variation People and processes Org Structure Quality circles Green and black belts Integrated Product Teams Business Model Improve shareholder value Increase customer satisfaction Deliver value to all stakeholders 8
  9. 9. What Does This Mean for Enterprise Software Development? Value Identification Value Proposition Value Delivery Identify the stakeholders and their value expectations Develop a robust value proposition to meet the expectations Deliver on the promise with good technical and program performance Source: Lean Enterprise Value: Insights from MIT’s Lean Aerospace Initiative, Murman, et. al 2002 9
  10. 10. Principles of the PMO Principle Activity Identify, coordinate, verify connections between projects, programs, and portfolios of projects are centrally managed Through a centralized clearing house, coordinate the interactions of projects and programs in support of the delivery of value for the enterprise Identify and solve issues in individual projects for the benefit of all projects Performs assessments of the overall state of projects and their management. Providing going assistance to assure issues remain solved Periodic reviews, assessments, oversight, and support assure issues that arise in individual projects are addressed in a centralized manner Centralized services to assure processes add value to all projects and programs Project management tools, processes, training, and coaching provided through a centralized enterprise wide organization 10
  11. 11. Defining Value is a Difficult Processes 11  Value Added  Transforms or shapes material or information  And the customer wants it  And it’s done right the first time  Non-Value Added – Necessary  No value is created but which cannot be eliminated based on current technology or thinking  Required (regulatory, customer mandate, legal)  Non-Value Added – Waste  Consumes resources but creates no value in the eyes of the customer  If you can’t get rid of the activity, it’s non-value added but necessary
  12. 12. Thinking Lean Takes Effort Craft Mass Production Lean Focus Task Product Customer Operation Single items Batch and queue Synchronized flow and pull Overall Aim Mastery of craft Reduce cost and increase efficiency Eliminate waste and add value Quality Integration (part of the craft) Inspection (a second stage after production) Inclusion (built in by design and methods) Business Strategy Customization Economies of scale and automation Flexibility and adaptability Improvement Master-driven continuous improvement Expert-driven periodic improvement Worker-driven continuous improvement Source: Lean Enterprise Value: Insights from MIT’s Lean Aerospace Initiative, Palgrave, 2002. 12
  13. 13. Lean Principles in Common with an Agile PMO 13 Lean Agile PMO Value Stream Mapping Project and Program Portfolio Management Create capacity Resource management Focus extra capacity on productive work Continuous delivery of increasing value of IT products and services Lean out analysis and test to relieve bottlenecks in production processes Define incremental increasing maturity and maturity assessment points of projects and programs Return to first principles, then apply these to reduce waste Minimize processes and activities that do not add value to the products and services
  14. 14. Turn the processes from a linear, waterfall development approach … To iterative, incremental, continuously improvement activities … That deliver continuous value to the project, program, and portfolio stakeholders. 14
  15. 15. CONNECTING LEAN AND THE PROGRAM MANAGEMENT OFFICE Lean and PMO are connected through the Seven Wastes and their resolution on projects, programs, and portfolios 15
  16. 16. The Seven Process Wastes (Remember TIM WOOD) Use these as test questions for Process Improvement or Development 16  Transportation  Unnecessary Inventory  Unnecessary or Excessive Motion  Waiting  Overproduction  Over or Inappropriate Processing  Defects
  17. 17. Transportation 17 Any movement or motion from one place to another that adds no value  Make the distance over which something is moved as short as possible  Make review and approval cycles short and sweet  Reduce artifacts to only those that can be directly absorbed into the production of products or process – “executable maps in BPML”
  18. 18. Unnecessary Inventory 18 Reduce the amount of work-in-process within the system  Ensure that work arrives at the downstream process when it is required and does not sit (no in basket overflow)  Use “pull” work stream management for all software production and test  Define the “pulled products” in a maturity map by working from Right to Left in the schedule
  19. 19. 19 Unnecessary or Excessive Motion Processing steps that add no value to the product or service  Avoid looking, searching, or wasted effort that burdens the value of the product or service  Have producers hold all components until “pull” demand is made  Have repositories of usable components under configuration control
  20. 20. 20 Waiting Someone or something waiting with nothing to do  Keep people productively active  Avoid paper, or decisions around the paper, from sitting around before being processed  Provide adequate staffing at the bottlenecked operations  Minimize non-value- added transactions by asking “how does this effort move the product or service forward in it’s maturity?”
  21. 21. 21 Overproduction Production of products, services, documentation, or facilities ahead of demand  Establish a flow sequence to satisfy the downstream customer – pull don’t push  Create workplace guidelines and standards for each process and follow them at all times – pull don’t push  Forward 100% mature products – no rework
  22. 22. 22 Over or Inappropriate Processing Activities still performed but no longer needed or poor planning and organizational flow  Remove unnecessary steps – make NVA  Stop copying everyone on emails  Stop sending reports and see who complains  Stop unnecessary signoffs and reviews
  23. 23. Defects 23 Activities that result in error, rework, work arounds, or quality defects prevent the customer from accepting the product or service  Error proof the process steps  Build robust and fault recovery products and services  Use standardized work instructions  Continuous customer feedback used to make incremental improvement to errors, exceptions, and recoveries  Focus on the avoiding “exception handling” – this is where waste occurs and burns valuable resources
  24. 24. Lean Principles for Software Development Lean Principle Software Development Examples Transportation  Hand offs and transfers of products to various functions along the way impedes momentum Unnecessary Inventory  Features built before needed Unnecessary or Excessive Motion  Looping between teams and functions  Production of unnecessary documents Waiting  Bottle necks, inadequate resources  Keep customer acceptance moving in small increments Overproduction  “better is the enemy of good enough” Over or Inappropriate Processing  Excess or inadequate coverage resulting in leakage Defects  Breakage of produced code means rework and lost value 24
  25. 25. Most failures to realize potential return on process and product improvements starts by committing one of these Seven Sins The Seven Sins of Process Improvement Process not traceable to strategy Improvements don’t involve the right people Teams not given a clear charter and held accountable Top management focused on change not improvement Change to the people not considered Focused on redesign rather than implementation Failure to leave measurement system in place Improving Performance, How to Manage the White Space on the Organization Chart, 2nd Edition, Geary A. Rummler and Alan P. Brache, Jossey Bass, 1995 25
  26. 26. CONDUCTING THE PRODUCT DEVELOPMENT KAIZEN (PDK) 26
  27. 27. Example – embedded software control system 27 Improve Gases Production System Unit Design and Deployment Process Mission Increase profit to cost of development of nonflammable gases design and prototyping cycles of semi-conductor plant standalone units process control software Goals  Reduce units from design and prototyping work  Reduce cycle time for design review and approval to prototype manufacturing for embedded process controller  Improve emergency shutdown integrity of software base Must Haves Can’t Do  Can make decision about improvements in the software design and integration process as long as there is no negative effect on other organizations within the gas unit interfaces  Must get agreement from other departments prior to executing change if the proposed change requires adjustment to the emergency shutdown procedures  No impact of sunk labor of this department or other departments results from changes to the emergency shutdown software changes
  28. 28. The Kaizen Cycle 28 Focus Evaluate Solve Act
  29. 29. The Kaizen Cycle 29 Focus Evaluate Solve Act
  30. 30. The Kaizen Cycle 30 Focus Evaluate Solve Act
  31. 31. The Kaizen Cycle 31 Focus Evaluate Solve Act
  32. 32. MODEL OF THE LEAN ENTERPRISE 32
  33. 33. Meta Principles of the Lean Enterprise 33
  34. 34. Overarching Practices of the Lean Enterprise 34 Overarching Practices Human Oriented Practices Process Oriented Practices Promote Lean Leadership at all Levels Optimize Capability & Utilization of People Assure Seamless Information Flow Maintain Challenge of Existing Processes Develop Relationships Based on Mutual Trust & Commitment Continuously Focus on the Customer Implement Integrated Product & Process Development Identify & Optimize Enterprise Flow Make Decisions at Lowest Possible Level Nurture a Learning Environment Ensure Process Capability and Maturation Maximize Stability in a Changing Environment Source: web.mit.edu/lean
  35. 35. In the End 35

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