The document discusses agile-lean methodologies in managing software development, emphasizing the importance of flow and efficiency in processes. It outlines challenges in the industry, such as rapidly changing customer requirements and external environmental factors, while presenting various methods like Scrum and Kanban. Additionally, it highlights success stories in process automation and outsourcing, demonstrating significant time and cost savings.

1. Agile-Lean:
Managing Flow to
Power Profitability
Rob Healy
31st May 2017

2. Rob Healy
• Mechanical Engineer
• 15 years developing, documenting,
testing and managing software,
primarily in Fluid Mechanics
• MBA, H. Dip Mgmt.
• Lean Six Sigma Certified
• Founder member of the Agile-Lean
Ireland Society
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3. Two Critical Flows in Software Development
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Cash
Flow
Psychological Flow
Abilities
Apathy Boreout
Burnout
Challenges
Over-
challenged
Under-
challenged
+-
+
-

4. Make the work flow: VSM
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Material
Flow
Information
Flow

5. Challenge: Rapidly Changing Customer Requirements
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Credit: Al Goerner [1]

6. Challenges: PESTs in External Environment
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Political
• GDPR
• “New Politics”
• Changes to US /
EU tax codes
Economic
• Brexit
Socio-Cultural
• Staff retention in “Gig
economy”
• Culture of Entrepreneurial
“disruption”
Technological
• Advancements:
• Cloud
• XaaS
• Big Data

7. Taiichi Ohno
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No one has more
trouble than the person
who claims to have no
trouble

8. 2. Map
the Value
Stream
3. Create
Flow
4.
Establish
Pull
5. Seek
Perfection
1. Identify
Value
Agile - Lean
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LeanAgile
values
Individuals &
Interactions
Processes
& Tools
over
Working
Software
Comprehensive
Documentation
over
Customer
Collaboration
Contract
negotiation
over
Responding to
Change
Following
a Plan
over

9. Agile-Lean on the VSM
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Lean
Agile

10. Key Agile-Lean Approaches
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11. Scrum
• Iterative Agile development method
• Scrum Guide
• 3 roles:
• Product Owner
• Scrum Master
• Developer
• Ceremonies:
• Grooming
• Sprint Planning
• Sprint
• Demo
• Retrospective
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12. Kanban (Software)
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VISUALISE
LIMIT WORK IN PROGRESS
MANAGE FLOW
MAKE PROCESS POLICIES
EXPLICIT
IMPLEMENT FEEDBACK LOOPS
IMPROVE COLLABORATIVELY,
EVOLVE EXPERIMENTALLY

13. Lean Startup Method
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Problem
(1)
Top 3
problems
Solution
(4)
Top 3
features
Uniq. Val.
Prop. (3)
Why you
are
different
and worth
buying
Unfair
Adv. (9)
Can’t be
easily
copied or
bought
Cust.
Segments
(2)
Target
Customers
Key
Metrics
(8)
Key
activities
to be
measured
Channels
(5)
Path to
customers
Cost Structure (7)
All costs
Revenue Streams (6)
Revenue / Model / Margin /
Lifetime Value

14. 8 Wastes – TIM WOODS
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Transport Inventory Motion Waiting
Over-production Over-processing Defects Unused Skills

15. Faster, Better, Cheaper
Case studies of Agile-Lean
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16. Process Automation
Situation:
• Performing post-release checks on
software was time consuming and
expensive
Action
• Developed an automated tool to perform
tests automatically and report status.
Outcome
The time to test reduced from 80 person-
days to 80 minutes in a lights out
process.
Cost reduction of ~ €10,000 per annum
from version 1.
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17. Outsourced R&D
Situation:
• Cluster deployment tool required up to 8
hours to upgrade complex telco software.
• Capacity to develop a solution did not exist
internally.
Action
• Outsourced team of technology experts,
proposed, developed and implemented
solution.
Outcome
 Upgrade time reduced by 45%
 Internal test hardware doubled capacity;
better quality releases; lower customer
acquisition and retention costs.
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0:00 1:12 2:24 3:36 4:48 6:00 7:12
Is
Was
Time to Upgrade (hrs)

18. Accelerating Flow
Situation:
• Busy ecommerce website developers with
lots of work in progress but poor throughput.
• Very difficult to manage / oversee the
process.
Action
• Introduced new cloud-based systems for
visualising work, work-in-progress limits and
established self-organising teams.
Outcome
 Work went from 3.5 days per ticket at start of
process to 16h (4X faster)
 Increased acquisition of new customers (up
to 15%) at no extra cost.
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62%

19. Ammeon’s Agile-Lean
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Contact Us: consulting@ammeon.com
1 to 1 Lean Startup Workshop
A half day introduction to agile- lean principles and the lean startup method
LeanStart for Software
A practical introduction to cost-saving using lean in a guided 8-10 week training
and project.
LeanPlus for Software
An advanced project to realise substantial cost savings using lean methods over a 6
month project

20. www.ammeon.com Ammeon@ammeon
Thank You
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21. Recommended Reading - Books
The Lean Startup
• Ries, E
Running Lean
• Maurya, A
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The Goal
• Goldratt, EM. Cox, J
The Phoenix Project
• Kim, G. Behr, K.
Spafford G

22. Recommended Reading - Books
Wealth of Nations
• Smith, A.
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The Decision Book
• Krogerus, M.
Tschappler, R.
Learning to See
• Rother, M. Shook, J.

23. Recommended Reading - Websites
• http://planet-lean.com/
• https://www.enterprise-ireland.com/en/Productivity/Lean-Business-Offer/
• https://www.lean.org
• http://agilemanifesto.org/
• http://www.alani-
consulting.com/uploads/8/5/4/6/85469078/how_better_faster_cheaper_happens
_-_alani_version_v2.1.pdf
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24. Picture References
• Slide 1: http://bit.ly/2qveBpb
• Slide 3: http://bit.ly/2qzTLnG
• Slide 4: http://bit.ly/2seO286
• Slide 5: http://bit.ly/2qAd3cQ (4)
• Slide 6A: http://bit.ly/2rgteA4
• Slide 6B: http://bit.ly/2rytJ9C
• Slide 6C: http://bit.ly/2rORVEc
• Slide 6D: http://bit.ly/2s7zbxc
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• Slide 7: http://bit.ly/2pBZKsy
• Slide 8: http://bit.ly/2q4UrVE
• Slide 9: http://bit.ly/2s7VWBg
• Slide 10: http://bit.ly/2qtjS4H
• Slide 11: http://bit.ly/2rOYk2a
• Slide 14: http://bit.ly/2rdK9AY