MA Orzen Lean I.T. - From Theory to Practice - Pink '12

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ITSM Conference Lean IT Presentation - Las Vegas, NV 2/20/12

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MA Orzen Lean I.T. - From Theory to Practice - Pink '12

  1. 1. Mike Orzen, CMA, CFPIM, PMP www.maorzen.com February 20, 2012 Session # 409B© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved.
  2. 2. Mike Orzen, CMA, CFPIM, PMP • Accountant/Financial Analyst/IT • IT project manager, systems analyst, QA, developer • ERP PM – SAP, Oracle • Business Reengineering (Lean, Six Sigma, TOC) • Plant Manager/Lean transformation Shingo Prize 2011 • Lean Coach, Instructor and Consultant • Lean Enterprise Institute Faculty • The Shingo Prize Assessor & Adjunct Professor© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 2
  3. 3. What Is The Problem We’re Trying to Solve?  Keeping up with complexity and growth  How to effectively engage the business  Addressing constraints – time, $, people, regulations  Driving sustained improvements  Transforming our culture  >>>> Do things more efficiently and effectively!© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 3
  4. 4. The Current State = The Challenge Most companies spend 60 - 80% of their IT operating budget on keeping systems running (KLO), not improvement and innovation. * Includes $, mindshare, energy© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 4
  5. 5. Deal With It…  Endless “firefighting” (unplanned work)  Juggling conflicting priorities & changing system requirements  Constraints – time, $, people, regulations  So what do we do?© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 5
  6. 6. Doing the Same Thing, Expecting… Complexity Short-lived Improvements Growth Current Culture Constraints ~70-80% KLO Firefighting Technical Debt Current State of Your IT Operations© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 6
  7. 7. Consider this… Lean IT is about flowing value to customers and end users while not creating additional technical debt. But how?© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 7
  8. 8. Defining Lean IT Engaging people, improving process, leveraging technology  Integrate and synchronize IT with the business  Enabling the flow of value to the partner/customer  Provide quality information and applications  Driven through principles, systems and tools-based behavior© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 8
  9. 9. Contrasting the 8 Wastes Manufacturing IT  Over processing  Extra processes  Over production  Extra features  Defects  Defects  Over engineering  Overly complex  Inventory  Partially completed work  Transportation  Task switching  Waiting  Waiting  Motion  Motion Adapted from Lean Software Development, Poppendieck 9© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved.
  10. 10. A Vicious Cycle So how do you break the cycle?© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 10
  11. 11. A3 Thinking  Reinforces a routine problem solving method (kata)  Getting people to think methodically and take initiative  Thinking using the scientific method: hypothesis, design experiment, test, assess results, next step based on the evidence  Root cause analysis Embracing failure!© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 11
  12. 12. Value Streams All the actions, both value-creating and non-value- creating, required to bring a product from concept to launch and from order to delivery. These include actions to process information from the customer and actions to transform the products on its way to the customer. LEI Lean Lexicon© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 12
  13. 13. Management IT Value Streams Supply Customer Relations Support the Product & Operations Service Entire Information & Development Enterprise Information Systems Lean IT: Enabling and Sustaining Your Lean Enterprise, Bell/Orzen © 2010© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 13
  14. 14. The Objective of Lean IT Effectively manage separate vertical technologies, assets and departments while optimizing the horizontal flow of information and services along entire value streams to partners, customers and end users© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 14
  15. 15. Late and Faulty New User Request Fulfillment Theory Application  Grasp the current state  Gathered data and analyzed CS  ID pain points  RCA  ID the target state  Immediate countermeasures  PDCA  Mid-range countermeasures  On-going measurement© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 15
  16. 16. A3© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 16
  17. 17. Late and Faulty New User Request Fulfillment From To  Avg. cycle time = 4.5 days  4.25 hours  Over 20 ways to do the work  3 standard processes  No documented work processes  Standard work maintained and updated© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 17
  18. 18. Erratic Service Desk Performance Theory Application  NVA  VSM to understand  Flow  Discovered myriad issues  PDCA  Prioritized  Executed© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 18
  19. 19. Value Stream Map© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 19
  20. 20. Erratic Service Desk Performance From To  Avg. call wait time = 2.5  45 seconds minutes  Call abandonment rate = 38%  5%  Call duration experience  6.25 minutes = 9.6 minutes© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 20
  21. 21. DBA admin costs grow as routine maintenance overwhelms staff Theory Application  Remove NVA  VSM revealed process redundancies and opps  Standardize Work  Automated standard processes  Visual Management  Outsourced routine processes  Made key metrics visible© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 21
  22. 22. DBA admin costs grow as routine maintenance overwhelms staff From To  DBA admin costs growing 17%/year  5% DBA admin cost growth for the past 2 years  0 standard processes automated  55% automation, checklists  0 visibility of key metrics*  100% visibility * DBA admin costs as a % of total IT ops spend, # standard processes automated, DB stability, DBA backlog© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 22
  23. 23. Late and Faulty Server Deployment Theory Application  Stabilize  Gathered data and analyzed CS  Streamline  RCA  Standardize  Immediate countermeasures  Sustain  Mid-range counter measures  On-going measurement© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 23
  24. 24. Late and Faulty Server Deployment From To  Avg. time = 10 days  3 days  Avg. exceptions* at deployment = 5  .35  Customer sat = 31%  85% * Wrong platform, configuration, app requirements, drive arrays, licenses, etc.© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 24
  25. 25. Next Steps  Acknowledge that the only lasting solutions are built on a fundamental shift in behavior and thinking  The best time to begin in now!© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 25
  26. 26. mike@maorzen.com www.maorzen.com LinkedIn: mikeorzen Twitter: @MikeOrzenLeanIT 503.313.0023© Copyright 2012 Mike Orzen & Associates, Inc. www.maorzen.com All rights reserved. 26

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