Kanban At Siemens
Health Services
Bennet Vallet
Daniel S. Vacanti
11/04/13
DO NOT REPRODUCE
© Corporate Kanban 2013
Is it possible to do Kanban
without doing Kanban?

Does it even matter that
we “do Kanban”?
Kanban at Siemens Health
Services
A Philadelphia Story
Siemens Health Services
A strategic part of the Siemens
Healthcare portfolio, HS offers a broad
range of clinical and fina...
Soarian Revenue Cycle
• Org of about 500
people
• 15 cross-functional
teams
• 3 continents
• Complex software
deployed to
...
Release

Features

Features

Epics

Epics

User Stories
The Problem
Predictability

Operational Efficiency
Quality
Predictability

Predictability
Predictability
Predictability
Completing ―potentially shippable stories‖ in
predictable 20 day time-boxed increments
Accurately estimatin...
The business and culture at HS requires a high
degree of certainty, predictability and
transparency.
Internal Decision Che...
Product Lifecycle Management (PLM)
Excellence
Goals

Drive Quality

Reduce Cycle Time

Learning
Organization

Balanced
Thr...
The Approach
Idealized Design

Focus on transforming the whole system rather than
improving parts of the system
Idealized Design
Design the system with which we would replace the
existing system right now as if we were free to replace...
Idealized Design

Requires participation of everyone who will
be affected by it. Ownership of the
resulting plan must be w...
Flow Team Strategy
We needed to shift the paradigm and deliver
results quickly
Big bang approach with high degree of worku...
Flow Team Strategy
Deploy coaches into all teams
Develop and execute education and
communication strategy
Engage external ...
Use electronic board for all feature teams
Support Kolkata team members
Invest heavily in metric capture

Installed large ...
Teams & Responsibilities
PLM Excellence Core Team

The Flow team is a cross
business unit team, multi- and overseeing PLM-...
But…coaching replaced formal
compliance and governance

21
Kanban Coaching Guide
Responsibilities and Knowledge areas:

•
•
•
•
•
•
•
•
•
•

Kanban board
Connecting the process to t...
PLM Excellence is our framework for driving long term systemic changes targeted at increasing our
competitive position by ...
The Results
First, some metrics on the
release before the release
that we limited WIP
(at the user story level)
Project : SF 3.4 Base

Story Cycle Time Scatter Plot

Team : (All)

Median Cycle
50% of stories Time (All Sprints) ==21
Av...
Project : SF 3.4 Base

Story Cycle Time Scatter Plot

Team : (All)

Median Cycle Time (All Sprints) = 21
Average Cycle Tim...
Project : SF 3.4 Base

Story Cycle Time Scatter Plot

Team : (All)

Median Cycle Time (All Sprints) = 21
Average Cycle Tim...
For the next release we
didn’t limit WIP right away
201204

6-Apr-12

4-May-12
11-May-12

27-Apr-12

20-Apr-12

13-Apr-12

201205
201206
201207
27-Jul-12

13-Jul-12
20-Jul-12...
When we limited WIP…
201204

6-Apr-12

4-May-12
11-May-12

27-Apr-12

20-Apr-12

13-Apr-12

201205
201206
201207
27-Jul-12

13-Jul-12
20-Jul-12...
201204

6-Apr-12

4-May-12
11-May-12

27-Apr-12

20-Apr-12

13-Apr-12

201205
201206
201207
27-Jul-12

13-Jul-12
20-Jul-12...
And the release after
that?
43 days

41 days
2000

3.4.100 Open
3.4.100 Closed
3.4 Open
3.4 Closed

1800
1600
1400
1200
1000
800
600
400
200
0

D2

RI
We have a problem?
Lessons Learned (so far)
“If you can’t do Scrum why
do you think you can do
Kanban?”
“It’s because we can’t do
Scrum that we have to do
Kanban”
Visualization forced
collaboration—stronger standups
with remote teams; testers said
this was the first time they had
real...
At some point we violated all
the foundational principles of
Kanban
No Classes of Service were
harmed in the making of thi...
At Siemens HS, back in
November 2011, no one had
heard of Kanban. First year
results convinced all product lines
to migrat...
Next Steps
Forecasting and Simulation

Teams fighting for scarce resources
across complex product lines.
Legislative timelines need c...
Story Flow – Current State
CONDITIONING

Reqt
Candidates
Pre-Incept

FORMAL TEST
DEVELOPING

Incept
Dev
Backlog

Pre-Sprin...
For more information…

Bennet Vallet, Director of Product
Development
bennet.vallet@siemens.com

Daniel S. Vacanti
daniel@...
Thank-you!
Bennet Vallet
Daniel S. Vacanti
DO NOT REPRODUCE
© Corporate Kanban 2013
KANBAN AT SCALE: A SIEMENS HEALTH SERVICES CASE STUDY (BENNET VALLET & DAN VACANTI) - LKCE13
KANBAN AT SCALE: A SIEMENS HEALTH SERVICES CASE STUDY (BENNET VALLET & DAN VACANTI) - LKCE13
KANBAN AT SCALE: A SIEMENS HEALTH SERVICES CASE STUDY (BENNET VALLET & DAN VACANTI) - LKCE13
KANBAN AT SCALE: A SIEMENS HEALTH SERVICES CASE STUDY (BENNET VALLET & DAN VACANTI) - LKCE13
KANBAN AT SCALE: A SIEMENS HEALTH SERVICES CASE STUDY (BENNET VALLET & DAN VACANTI) - LKCE13
KANBAN AT SCALE: A SIEMENS HEALTH SERVICES CASE STUDY (BENNET VALLET & DAN VACANTI) - LKCE13
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KANBAN AT SCALE: A SIEMENS HEALTH SERVICES CASE STUDY (BENNET VALLET & DAN VACANTI) - LKCE13

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This presentation will describe the approach taken for one of the world’s largest Kanban implementations at Siemens Health Services. It will describe how Kanban augmented existing agile practices there, and it will examine the achieved benefits of “flow” as demonstrated by real project data. Through a careful consideration of successes, challenges, and ongoing opportunities, this case study should be very meaningful to software product/development management organizations of any size whose funding, business operations, and profitability are dependent upon achieving a high degree of operational efficiency, transparency, and predictability.

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  • Thank the organizers; Introduce self; only scratching the surface, like this to be informal talk; reserved time for qa at the end, but would appreciate questions all the way through; the point is to start the conversation by showing what’s possible
  • KANBAN AT SCALE: A SIEMENS HEALTH SERVICES CASE STUDY (BENNET VALLET & DAN VACANTI) - LKCE13

    1. 1. Kanban At Siemens Health Services Bennet Vallet Daniel S. Vacanti 11/04/13 DO NOT REPRODUCE © Corporate Kanban 2013
    2. 2. Is it possible to do Kanban without doing Kanban? Does it even matter that we “do Kanban”?
    3. 3. Kanban at Siemens Health Services A Philadelphia Story
    4. 4. Siemens Health Services A strategic part of the Siemens Healthcare portfolio, HS offers a broad range of clinical and financial IT applications, as well as outsourcing and professional services to support health providers across the continuum of care.
    5. 5. Soarian Revenue Cycle • Org of about 500 people • 15 cross-functional teams • 3 continents • Complex software deployed to hundreds of Healthcare facilities • Highly regulated • Mission Critical Mature Scrum Process since 2005 20 day sprints Stable feature teams Release Cycles about every 12 months
    6. 6. Release Features Features Epics Epics User Stories
    7. 7. The Problem
    8. 8. Predictability Operational Efficiency Quality
    9. 9. Predictability Predictability Predictability
    10. 10. Predictability Completing ―potentially shippable stories‖ in predictable 20 day time-boxed increments Accurately estimating story and feature completion timeframes Completion of features on a regular cadence Providing transparent and actionable metrics
    11. 11. The business and culture at HS requires a high degree of certainty, predictability and transparency. Internal Decision Checkpoints and quality gates require firm commitments, low risk tolerance and very little flexibility in terms of cost, schedule and scope Commitments to customers and the market requires very high levels of predictability in terms of functionality and delivery timeframes Cost of delay has a high premium and predictability trumps everything
    12. 12. Product Lifecycle Management (PLM) Excellence Goals Drive Quality Reduce Cycle Time Learning Organization Balanced Throughput People Tools Improve Predictability Work Units Continuous Customer Validation Effective Tools Process PLM Excellence Core Team. Chartered by senior management to drive process improvements Lean Agile Practices Infrastructure Environments Systems Thinking Legend: Focus Area
    13. 13. The Approach
    14. 14. Idealized Design Focus on transforming the whole system rather than improving parts of the system
    15. 15. Idealized Design Design the system with which we would replace the existing system right now as if we were free to replace the existing system with whatever system we wanted
    16. 16. Idealized Design Requires participation of everyone who will be affected by it. Ownership of the resulting plan must be widely spread by those who had a hand in preparing it
    17. 17. Flow Team Strategy We needed to shift the paradigm and deliver results quickly Big bang approach with high degree of workunit and workflow standardization and cohesion across all teams Raise the bar on quality
    18. 18. Flow Team Strategy Deploy coaches into all teams Develop and execute education and communication strategy Engage external expert(s) as needed
    19. 19. Use electronic board for all feature teams Support Kolkata team members Invest heavily in metric capture Installed large screen TV monitors in all team rooms in Philadelphia and Kolkata
    20. 20. Teams & Responsibilities PLM Excellence Core Team The Flow team is a cross business unit team, multi- and overseeing PLM-wide improvement projects • Driving • Advocating and promoting new approaches to Workflow Management disciplinary and all technical and management levels Operational/Implementation Teams Process Design Team SF Operational Flow Team Flow Team • Identifying and improving key Agile practices •Defining and rolling out new Kanban Workflow Mgmt. Process & Tools • Driving convergence of Version One usage •Defining key metrics •Cross functional •Includes key SF participants Education, Coaching and Rollout • Supporting & enabling new process implementation • Actively monitoring workflow and removing obstacles SF 3.4.100 Planning Team • Operationalize new processes • Improve execution of current processes • Implementing Inception Process There is significant overlap in membership between the PLM Excellence Core Team, the various Process Definition Teams, and some of the Operational Core Teams. The process definition teams are responsible for the education, coaching and rollout to the operational teams. They will also remain in place until D4. The PLM Excellence Core team is responsible for educating the SF and SC SMTs.
    21. 21. But…coaching replaced formal compliance and governance 21
    22. 22. Kanban Coaching Guide Responsibilities and Knowledge areas: • • • • • • • • • • Kanban board Connecting the process to the tools Conducting the Stand-up Role Flexibility / Swarming Backlog Management & Prioritization WIP Limits Cycle Time & Metrics Policies Program Reviews and Retrospectives Release Planning
    23. 23. PLM Excellence is our framework for driving long term systemic changes targeted at increasing our competitive position by improving our execution and throughput. These monthly communications are intended to keep you apprised of current activities and provide ways for you to access additional information. Please click here to find a link to our monthly status report. Initiatives featured in this month’s e-mail communication include Kanban, Inception, Agile Coaching, Build and BVT improvements, and the Learning Organization/Speaker Series. Kanban: Kanban, which we will use to augment our current Agile processes, provides a method for optimizing the flow of work to improve cycle time, drive quality, and provide the visual transparency and metrics that we require to achieve the level of predictability we need. Kanban will help us work more effectively in achieving our vision and delivering the results that our customers expect. The essential elements of Kanban are:  Visualizing the flow of work  Queues  Using Pull vs Push  Limiting Work in Progress  Continuous Improvement PULL DON’T PUSH
    24. 24. The Results
    25. 25. First, some metrics on the release before the release that we limited WIP (at the user story level)
    26. 26. Project : SF 3.4 Base Story Cycle Time Scatter Plot Team : (All) Median Cycle 50% of stories Time (All Sprints) ==21 Average Cycle Time (All Sprints) 34 finished in 21 days or less 200 180 160 140 y = 133 y = 126 120 Days100 80 y = 71 60 40 y = 40 20 y = 21 y =8 Cycle Tim e Linear (70% @ 40 days or less) Linear (98% @ 133 days or less) Sprint Boundary Linear (85% @ 71 days or less) Linear (30% @ 8 days or less) Linear (50% @ 21 days or less) Linear (97% @ 126 days or less) 27-Apr-12 20-Apr-12 13-Apr-12 6-Apr-12 30-Mar-12 23-Mar-12 16-Mar-12 9-Mar-12 2-Mar-12 24-Feb-12 17-Feb-12 10-Feb-12 3-Feb-12 27-Jan-12 20-Jan-12 13-Jan-12 6-Jan-12 30-Dec-11 23-Dec-11 16-Dec-11 9-Dec-11 2-Dec-11 25-Nov-11 18-Nov-11 11-Nov-11 4-Nov-11 28-Oct-11 21-Oct-11 14-Oct-11 7-Oct-11 30-Sep-11 23-Sep-11 16-Sep-11 0
    27. 27. Project : SF 3.4 Base Story Cycle Time Scatter Plot Team : (All) Median Cycle Time (All Sprints) = 21 Average Cycle Time (All Sprints) = 34 85% of stories finished in 71 days or less 200 180 160 140 y = 133 y = 126 120 Days100 80 y = 71 60 40 y = 40 20 y = 21 y =8 Cycle Tim e Linear (70% @ 40 days or less) Linear (98% @ 133 days or less) Sprint Boundary Linear (85% @ 71 days or less) Linear (30% @ 8 days or less) Linear (50% @ 21 days or less) Linear (97% @ 126 days or less) 27-Apr-12 20-Apr-12 13-Apr-12 6-Apr-12 30-Mar-12 23-Mar-12 16-Mar-12 9-Mar-12 2-Mar-12 24-Feb-12 17-Feb-12 10-Feb-12 3-Feb-12 27-Jan-12 20-Jan-12 13-Jan-12 6-Jan-12 30-Dec-11 23-Dec-11 16-Dec-11 9-Dec-11 2-Dec-11 25-Nov-11 18-Nov-11 11-Nov-11 4-Nov-11 28-Oct-11 21-Oct-11 14-Oct-11 7-Oct-11 30-Sep-11 23-Sep-11 16-Sep-11 0
    28. 28. Project : SF 3.4 Base Story Cycle Time Scatter Plot Team : (All) Median Cycle Time (All Sprints) = 21 Average Cycle Time (All Sprints) = 34 200 180 160 140 y = 133 y = 126 120 Days100 80 y = 71 60 40 y = 40 20 y = 21 y =8 Cycle Tim e Linear (70% @ 40 days or less) Linear (98% @ 133 days or less) Sprint Boundary Linear (85% @ 71 days or less) Linear (30% @ 8 days or less) Linear (50% @ 21 days or less) Linear (97% @ 126 days or less) 27-Apr-12 20-Apr-12 13-Apr-12 6-Apr-12 30-Mar-12 23-Mar-12 16-Mar-12 9-Mar-12 2-Mar-12 24-Feb-12 17-Feb-12 10-Feb-12 3-Feb-12 27-Jan-12 20-Jan-12 13-Jan-12 6-Jan-12 30-Dec-11 23-Dec-11 16-Dec-11 9-Dec-11 2-Dec-11 25-Nov-11 18-Nov-11 11-Nov-11 4-Nov-11 28-Oct-11 21-Oct-11 14-Oct-11 7-Oct-11 30-Sep-11 23-Sep-11 16-Sep-11 0
    29. 29. For the next release we didn’t limit WIP right away
    30. 30. 201204 6-Apr-12 4-May-12 11-May-12 27-Apr-12 20-Apr-12 13-Apr-12 201205 201206 201207 27-Jul-12 13-Jul-12 20-Jul-12 6-Jul-12 29-Jun-12 22-Jun-12 15-Jun-12 8-Jun-12 1-Jun-12 25-May-12 18-May-12 201208 24-Aug-12 201209 201210 19-Oct-12 12-Oct-12 5-Oct-12 21-Sep-12 28-Sep-12 14-Sep-12 7-Sep-12 31-Aug-12 201211 16-Nov-12 9-Nov-12 2-Nov-12 26-Oct-12 201212 14-Dec-12 201213 18-Jan-13 11-Jan-13 4-Jan-13 28-Dec-12 21-Dec-12 201301 8-Feb-13 15-Feb-13 1-Feb-13 25-Jan-13 201302 8-Mar-13 80 1-Mar-13 22-Feb-13 Program : SF - 3.4.100 Program 30-Nov-12 7-Dec-12 23-Nov-12 200 17-Aug-12 Team : (All) 10-Aug-12 3-Aug-12 Project : (All) Story Cycle Time Scatter Plot Story Estimate Type : (All) Median Cycle Time (All Sprints) = 1 180 Average Cycle Time (All Sprints) = 2 160 140 120 Days 100 y = 90 y = 74 60 40 y = 43 20 y = 30 y = 19 y = 11 0
    31. 31. When we limited WIP…
    32. 32. 201204 6-Apr-12 4-May-12 11-May-12 27-Apr-12 20-Apr-12 13-Apr-12 201205 201206 201207 27-Jul-12 13-Jul-12 20-Jul-12 6-Jul-12 29-Jun-12 22-Jun-12 15-Jun-12 8-Jun-12 1-Jun-12 25-May-12 18-May-12 201208 3-Aug-12 24-Aug-12 201209 201210 19-Oct-12 12-Oct-12 5-Oct-12 21-Sep-12 28-Sep-12 14-Sep-12 7-Sep-12 31-Aug-12 201211 16-Nov-12 9-Nov-12 2-Nov-12 26-Oct-12 201212 14-Dec-12 201213 18-Jan-13 11-Jan-13 4-Jan-13 28-Dec-12 21-Dec-12 201301 8-Feb-13 15-Feb-13 1-Feb-13 25-Jan-13 201302 8-Mar-13 80 1-Mar-13 22-Feb-13 Program : SF - 3.4.100 Program 30-Nov-12 7-Dec-12 23-Nov-12 200 17-Aug-12 Team : (All) 10-Aug-12 Project : (All) Story Cycle Time Scatter Plot Story Estimate Type : (All) Median Cycle Time (All Sprints) = 1 180 Average Cycle Time (All Sprints) = 2 160 140 120 Days 100 y = 90 y = 74 60 40 y = 43 20 y = 30 y = 19 y = 11 0
    33. 33. 201204 6-Apr-12 4-May-12 11-May-12 27-Apr-12 20-Apr-12 13-Apr-12 201205 201206 201207 27-Jul-12 13-Jul-12 20-Jul-12 6-Jul-12 29-Jun-12 22-Jun-12 15-Jun-12 8-Jun-12 1-Jun-12 25-May-12 18-May-12 201208 3-Aug-12 24-Aug-12 17-Aug-12 201209 201210 19-Oct-12 12-Oct-12 5-Oct-12 21-Sep-12 28-Sep-12 14-Sep-12 7-Sep-12 31-Aug-12 201211 16-Nov-12 9-Nov-12 2-Nov-12 26-Oct-12 201212 14-Dec-12 201213 18-Jan-13 11-Jan-13 4-Jan-13 28-Dec-12 21-Dec-12 201301 8-Feb-13 15-Feb-13 1-Feb-13 25-Jan-13 201302 8-Mar-13 80 1-Mar-13 22-Feb-13 Program : SF - 3.4.100 Program 30-Nov-12 7-Dec-12 23-Nov-12 200 10-Aug-12 85% of stories finished in 43 days Project : (All) Story Cycle Time Scatter Plot or less Team : (All) Story Estimate Type : (All) Median Cycle Time (All Sprints) = 1 180 Average Cycle Time (All Sprints) = 2 160 140 120 Days 100 y = 90 y = 74 60 40 y = 43 20 y = 30 y = 19 y = 11 0
    34. 34. And the release after that?
    35. 35. 43 days 41 days
    36. 36. 2000 3.4.100 Open 3.4.100 Closed 3.4 Open 3.4 Closed 1800 1600 1400 1200 1000 800 600 400 200 0 D2 RI
    37. 37. We have a problem?
    38. 38. Lessons Learned (so far)
    39. 39. “If you can’t do Scrum why do you think you can do Kanban?” “It’s because we can’t do Scrum that we have to do Kanban”
    40. 40. Visualization forced collaboration—stronger standups with remote teams; testers said this was the first time they had really ―participated‖ in a standup System did not really stabilize until WIP limited at story level
    41. 41. At some point we violated all the foundational principles of Kanban No Classes of Service were harmed in the making of this film
    42. 42. At Siemens HS, back in November 2011, no one had heard of Kanban. First year results convinced all product lines to migrate to Kanban: –1300 people –About 40 teams –3 continents
    43. 43. Next Steps
    44. 44. Forecasting and Simulation Teams fighting for scarce resources across complex product lines. Legislative timelines need careful risk management. Penalties if late. Need to promise features to many major customers
    45. 45. Story Flow – Current State CONDITIONING Reqt Candidates Pre-Incept FORMAL TEST DEVELOPING Incept Dev Backlog Pre-Sprint Planning Analysis Develop Integrated Test Test Pre-Integrated & Perf test Performance Deploy Test DELIVERY System Test Performance Deploy Test DEPLOY Validation /Beta GA Cycle Time Feature Flow “Deliver Faster” CONDITIONING Continuous Flow CONTINUOUS TESTING DEVELOPING Reqt Candidates Pre-Incept Bklog Mgt Incept Analysis Develop Test Preintegrated test Lead Time Page 50 IT, Perf, Deploy ST, Perf, Deploy Delivery FREQ DEPLOY Validation /beta GA
    46. 46. For more information… Bennet Vallet, Director of Product Development bennet.vallet@siemens.com Daniel S. Vacanti daniel@corporatekanban.com
    47. 47. Thank-you! Bennet Vallet Daniel S. Vacanti DO NOT REPRODUCE © Corporate Kanban 2013

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