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Lean Prod Development ProductCamp Vancouver Feb15

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Achieving agility at scale in product development organizations.

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Lean Prod Development ProductCamp Vancouver Feb15

  1. 1. Joe Lukan joelukan@gmail.com @joelukan
  2. 2. What We Need…. • Delivery at speed of change in our markets • Sufficient predictability • Alignment of efforts to maximize value to customers
  3. 3. Traditional Approach Development work is: • Largely invisible • Highly variable Organizations: • Centralize control • Fail to take an economic view • Pursue false economies of scale • Focus on people staying busy • Try to remove variability • Rely too heavily on plans • Ignore queues
  4. 4. Delay breeds waste! Knowledge is perishable • Developer & analyst discuss a requirement - A week old VS. - 3 months old • Tester discovers a bug - A day old VS. - A month old Quality suffers Motivation goes down Business opportunities get missed
  5. 5. Agile helps, but… • Dev team focused (suboptimal) • Coordination and scaling challenges • Underlying principles at odds with traditional management assumptions • Won’t solve all your problems • Can put stress on rest of organization • Focus on “velocity” can foster overload
  6. 6. 30% capacity
  7. 7. 60% capacity
  8. 8. 95% capacity
  9. 9. Highway Throughput 30% 60% 95% Avg speed: 65 MPH Throughput: ~400 per hour Avg speed: 65 MPH Throughput: ~800 per hour Avg speed: 20 MPH Throughput: ~500 per hour
  10. 10. Highway Throughput WSDOT Sep. 2006 Gray Book publication)
  11. 11. Highway Throughput Don Reinertsen. The Principles of Product Development Flow
  12. 12. Queues
  13. 13. Queue Behavior Don Reinertsen. The Principles of Product Development Flow
  14. 14. Queue Behavior Don Reinertsen. The Principles of Product Development Flow
  15. 15. Queue Behavior Don Reinertsen. The Principles of Product Development Flow
  16. 16. Impact of Queues Cycle time Risk Variability Overhead Feedback time Quality Motivation
  17. 17. Batch Size Don Reinertsen. The Principles of Product Development Flow
  18. 18. Batch Size Don Reinertsen. The Principles of Product Development Flow
  19. 19. Focus on Transaction Costs Don Reinertsen. The Principles of Product Development Flow
  20. 20. Limit WIP
  21. 21. Limit WIP
  22. 22. Cumulative Flow Diagram
  23. 23. Limit Your WIP Kanban at Scale – A Siemens Success Story , InfoQ, Feb 28, 2014 http://www.infoq.com/articles/kanban-siemens-health-services#anch107610
  24. 24. Finding Leverage • Stop using oversized batches • Make work visible • Focus on managing queues – Capacity utilization is hard to control – Cycle time is a trailing indicator • Attack queues as they arise • Queues have a quantitative cost • Understand the tradeoffs
  25. 25. Constrain WIP at All Levels • Epics, MMFs – Eliminate excessive early elaboration – Drop items as you add new ones • Put WIP limits on all backlogs • Manage WIP of shared resources, experts
  26. 26. Take an Economic View • Understand full value chain • Quantify cost of delay • Don’t consider $ already spent • Watch the work product, not the worker
  27. 27. Take an Economic View • Influence small decisions • Quantify life-cycle profit impact of: – Product cost – Product value – Development expense – Cycle time – Risk
  28. 28. Manage Variability • Standardize where it makes sense – Automated testing – Continuous integration – Continuous deployment • Make batches roughly the same size • Include technical risk in prioritizing stories
  29. 29. Get Fast Feedback Don Reinertsen. The Principles of Product Development Flow
  30. 30. Use Cadence To… • Limit the accumulation of variance • Provide sufficient capacity margin to enable cadence • Make waiting times predictable • Enable small batch sizes • Reduce communication costs (i.e. meetings)
  31. 31. Synchronization Don Reinertsen. The Principles of Product Development Flow
  32. 32. Synchronization Don Reinertsen. The Principles of Product Development Flow
  33. 33. Summary • Understand your economics • Make your queues visible and control them • Create a process to exploit variability • Reduce your batch size • Control cycle time by controlling WIP – Attend to delays • Sequence work based on economics • Accelerate feedback with smaller batches • Push decision making down (where advisable)
  34. 34. Additional Info • Don Reinertsen’s website (blogs & videos): http://reinertsenassociates.com • The 175 Principles of Flow: http://lpd2.com/the-principles-of-flow/ • First chapter of the book: http://www.celeritaspublishing.com/PDFS/ReinertsenFLOWChap1.p df • Al Shalloway: Not Doing SAFe? No Problem. Not Doing These? Big Problem http://www.netobjectives.com/blogs/not-doing-safe-no- problem-not-doing-these-big-problem • Kanban at Scale – A Siemens Success Story http://www.infoq.com/articles/kanban-siemens-health- services#anch107610

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