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Predictability & Measurement

with Kanban
Lean Kanban
Central Europe
Munich October 2011

David J. Anderson
David J. Anderson & Associates
dja@djandersonassociates.com
Book Published
April 2010

Available from
djandersonassociates.com

Advanced
Kanban

A 72,000 word
intro to the topic
http://leankanbanuniversity.com
http://www.limitedwipsociety.org

LinkedIn Groups: Software Kanban

Yahoo! Groups: kanbandev
Yahoo! Groups: kanbanops
Delivering predictability with
Kanban
requires some different techniques
for different types of work such as
software maintenance and support
or
Advanced
Kanban

major project work
Service-oriented work

Advanced
Kanban
Create a regular delivery cadence
Develop a strong config management capability

Develop capability to deploy effectively
Build code with high quality

Advanced
Kanban
Understand capability by studying the natural
philosophy of the work
MARCH

Lead Time Distribution
2.5

# CRs

2
1.5
1
0.5

106

101

96

91

86

81

76

71

66

61

56

51

46

41

36

31

26

21

16

11

6

1

0
Days

Lead Time Distribution

APRIL

3.5

Majority of CRs range 30 -> 55

2

Outliers

1.5
1
0.5

Days

8
14

1
14

4
13

0

3

6

7
12

12

11

10

99

92

85

78

71

64

57

50

43

36

29

22

15

8

0

1

CRs & Bugs

2.5

Advanced
Kanban

3
For standard class items, offer a target lead time
based on the 2nd confidence interval

Advanced
Kanban
Lead Time Distribution
3.5
3

2
1.5
1
0.5

1

4

7

0

3

6

8
14

14

13

12

12

11

10

99

92

85

78

71

64

57

50

43

36

29

22

8

15

0

1

CRs & Bugs

2.5

Days

Advanced
Kanban

For example, SLA of
51 days with 98% on-time
(+2 sigma from mean)
51 days will not be good enough for some
feature requests, so offer a package of classes of
service

Advanced
Kanban
Package of Classes with SLAs
๏ฎ

As soon as possible
๏ฎ

๏ฎ

100% on-time
๏ฎ

๏ฎ

providing 24 days advance notice

Up to 51 days
๏ฎ

98% on-time guarantee

Up to 51 days
๏ฎ

50% on-time

Advanced
Kanban

๏ฎ

Full transparency
Lead time

Standard Class Items

Fixed Date Items

Advanced
Kanban

Expedite Item

Features Delivered
Allocate capacity across classes of service in
order to deliver against anticipated demand
5

4

Analysis
Input
Queue In Prog Done

3

4

Development
Dev
Ready In Prog Done

2

Build
Ready

2 = 20 total

Test

Release
Ready

...

Allocation

4 = 20%
10 = 50%
6 = 30%

Advanced
Kanban

+1 = +5%
John Seddon has observed that
allocating capacity in this fashion
โ€œdamages capacityโ€!
While this is theoretically possible it will almost
never happen because
(a) a simple policy can be implemented to
temporarily re-allocate
(b) demand is rarely zero for a given type, though
Fixed Date class of service can be seasonal
Advanced
Kanban

(c) the tickets represent work, not workers, the
workforce is flexible. Classes of service &
capacity allocation insure people can keep busy
improving utilization not damaging it
Major Project Work

Advanced
Kanban
Requires all the same underlying
data as used in service oriented
work
plus

Advanced
Kanban
Major Project with two-tiered kanban board

Advanced
Kanban
Cumulative Flow and
Predictive Modeling with S-Curve

Time
Inventory

Started

Designed

Coded

Complete

30
-M
ar

23
-M
ar

16
-M
ar

9M
ar

2M
ar

eb
24
-F

17
-F

eb

Typical S-curve

Advanced
Kanban

eb

240
220
200
180
160
140
120
100
80
60
40
20
0

10
-F

Features

Device Management Ike II Cumulative Flow
Simulating S-Curve with a Z

Slope in middle
3.5x - 5x slope
at ends

5x

20%

Time
Inventory

Started

Designed

Coded

Complete

30
-M
ar

23
-M
ar

16
-M
ar

9M
ar

2M
ar

24
-F

eb

20%

eb
17
-F

eb

60%

Advanced
Kanban

240
220
200
180
160
140
120
100
80
60
40
20
0

10
-F

Features

Device Management Ike II Cumulative Flow
Track actual throughput against projection

Time
Inventory

Started

Designed

Coded

Complete

30
-M
ar

23
-M
ar

16
-M
ar

9M
ar

2M
ar

eb
24
-F

17
-F

eb

Track delta between
planned and actual
each day

Advanced
Kanban

eb

240
220
200
180
160
140
120
100
80
60
40
20
0

10
-F

Features

Device Management Ike II Cumulative Flow
Unplanned Work Report
Scope Creep

Dark Matter

Advanced
Kanban
Make a long term plan to build
platform replacement
Device Management Ike II Cumulative Flow

Time
Inventory

Started

Designed

Coded

Complete

2008

30
-M
ar

23
-M
ar

16
-M
ar

5x

9M
ar

2M
ar

eb
24
-F

eb

2006
17
-F

eb

Slope in middle
3.5x - 5x slope
at ends

Advanced
Kanban

240
220
200
180
160
140
120
100
80
60
40
20
0

10
-F

Features

Required throughput (velocity)
We need average throughput (velocity) to peak
at 13 features per month over 24 months.

Advanced
Kanban
Littleโ€Ÿs Law

Determines staffing level

Target to achieve plan

Throughput

=

WIP
Lead Time

Treat as Fixed variable

Advanced
Kanban

From observed capability
Changing the WIP limit without
maintaining the staffing level ratio
represents a change to the way of
working. It is a change to the
system design. And will produce a
change in the observed โ€žcommon
causeโ€Ÿ capability of the system
Advanced
Kanban
Plan based on currently observed
capability and current working
practices. Do not assume process
improvements.

Advanced
Kanban

If changing WIP to reduce
undesirable effects (e.g.
multitasking), get new sample data
(perform a spike) to observe the
new capability
Littleโ€Ÿs Law

Determines staffing level

Target to achieve plan

13 / month

=

WIP
0.25 months

If current working practice is 1 unit WIP per
person then 3 people are needed

Advanced
Kanban

WIP = 3.25, round up to 4.
Might be safe to
From observed capability
round down to 3.
Slightly over-allocate the intangible class of
service (green) to compensate against expediting
5

4

Analysis
Input
Queue In Prog Done

3

4

Development
Dev
Ready In Prog Done

2

Build
Ready

2 = 20 total

Test

Release
Ready

...

Allocation

4 = 20%
12 = 60%
4 = 20%

Advanced
Kanban

+1 = +5%
Conclusions

Advanced
Kanban
For Service-oriented work, create
predictability with
a regular delivery cadence
a strong config management capability
capability to deploy effectively
code with high quality

For major projects

Advanced
Kanban

understand peak throughput (velocity)
model the s-curve on work complete
treat the avg. lead time as the fixed variable
use Littleโ€Ÿs Law to calculate WIP limits
and staffing levels
Thank you!

Advanced
Kanban

dja@agilemanagement.net
http://www.agilemanagement.net/
Aboutโ€ฆ
David Anderson is a thought leader in
managing effective software teams. He leads
a consulting firm dedicated to improving
economic performance of knowledge worker
businesses โ€“ improving agility, reducing
cycle times, improving productivity and
efficiency in technology development.

He has 25+ years experience in the software
industry starting with computer games in the
early 1980โ€Ÿs. He has led software teams
delivering superior productivity and quality using
innovative agile methods. He developed MSF
for CMMI Process Improvement for Microsoft.
He is a co-author of the SEI Technical Note,
CMMI and Agile: Why not embrace both!

David was a founder of the Lean Software &
Systems Consortium, a not for profit dedicated
to promoting better standards of professionalism
and effectiveness in software engineering.
Emailโ€ฆ dja@agilemanagement.net

Advanced
Kanban

Davidโ€Ÿs book, Agile Management for Software
Engineering โ€“ Applying the Theory of
Constraints for Business Results, introduced
many ideas from Lean and Theory of
Constraints into software engineering.

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Key Note - Lean Kanban Central Europe 2011 - Predictability & Measurement with Kanban

  • 1. Predictability & Measurement with Kanban Lean Kanban Central Europe Munich October 2011 David J. Anderson David J. Anderson & Associates dja@djandersonassociates.com
  • 2. Book Published April 2010 Available from djandersonassociates.com Advanced Kanban A 72,000 word intro to the topic
  • 4. Delivering predictability with Kanban requires some different techniques for different types of work such as software maintenance and support or Advanced Kanban major project work
  • 6. Create a regular delivery cadence Develop a strong config management capability Develop capability to deploy effectively Build code with high quality Advanced Kanban
  • 7. Understand capability by studying the natural philosophy of the work MARCH Lead Time Distribution 2.5 # CRs 2 1.5 1 0.5 106 101 96 91 86 81 76 71 66 61 56 51 46 41 36 31 26 21 16 11 6 1 0 Days Lead Time Distribution APRIL 3.5 Majority of CRs range 30 -> 55 2 Outliers 1.5 1 0.5 Days 8 14 1 14 4 13 0 3 6 7 12 12 11 10 99 92 85 78 71 64 57 50 43 36 29 22 15 8 0 1 CRs & Bugs 2.5 Advanced Kanban 3
  • 8. For standard class items, offer a target lead time based on the 2nd confidence interval Advanced Kanban
  • 9. Lead Time Distribution 3.5 3 2 1.5 1 0.5 1 4 7 0 3 6 8 14 14 13 12 12 11 10 99 92 85 78 71 64 57 50 43 36 29 22 8 15 0 1 CRs & Bugs 2.5 Days Advanced Kanban For example, SLA of 51 days with 98% on-time (+2 sigma from mean)
  • 10. 51 days will not be good enough for some feature requests, so offer a package of classes of service Advanced Kanban
  • 11. Package of Classes with SLAs ๏ฎ As soon as possible ๏ฎ ๏ฎ 100% on-time ๏ฎ ๏ฎ providing 24 days advance notice Up to 51 days ๏ฎ 98% on-time guarantee Up to 51 days ๏ฎ 50% on-time Advanced Kanban ๏ฎ Full transparency
  • 12. Lead time Standard Class Items Fixed Date Items Advanced Kanban Expedite Item Features Delivered
  • 13. Allocate capacity across classes of service in order to deliver against anticipated demand 5 4 Analysis Input Queue In Prog Done 3 4 Development Dev Ready In Prog Done 2 Build Ready 2 = 20 total Test Release Ready ... Allocation 4 = 20% 10 = 50% 6 = 30% Advanced Kanban +1 = +5%
  • 14. John Seddon has observed that allocating capacity in this fashion โ€œdamages capacityโ€! While this is theoretically possible it will almost never happen because (a) a simple policy can be implemented to temporarily re-allocate (b) demand is rarely zero for a given type, though Fixed Date class of service can be seasonal Advanced Kanban (c) the tickets represent work, not workers, the workforce is flexible. Classes of service & capacity allocation insure people can keep busy improving utilization not damaging it
  • 16. Requires all the same underlying data as used in service oriented work plus Advanced Kanban
  • 17. Major Project with two-tiered kanban board Advanced Kanban
  • 18. Cumulative Flow and Predictive Modeling with S-Curve Time Inventory Started Designed Coded Complete 30 -M ar 23 -M ar 16 -M ar 9M ar 2M ar eb 24 -F 17 -F eb Typical S-curve Advanced Kanban eb 240 220 200 180 160 140 120 100 80 60 40 20 0 10 -F Features Device Management Ike II Cumulative Flow
  • 19. Simulating S-Curve with a Z Slope in middle 3.5x - 5x slope at ends 5x 20% Time Inventory Started Designed Coded Complete 30 -M ar 23 -M ar 16 -M ar 9M ar 2M ar 24 -F eb 20% eb 17 -F eb 60% Advanced Kanban 240 220 200 180 160 140 120 100 80 60 40 20 0 10 -F Features Device Management Ike II Cumulative Flow
  • 20. Track actual throughput against projection Time Inventory Started Designed Coded Complete 30 -M ar 23 -M ar 16 -M ar 9M ar 2M ar eb 24 -F 17 -F eb Track delta between planned and actual each day Advanced Kanban eb 240 220 200 180 160 140 120 100 80 60 40 20 0 10 -F Features Device Management Ike II Cumulative Flow
  • 21. Unplanned Work Report Scope Creep Dark Matter Advanced Kanban
  • 22. Make a long term plan to build platform replacement Device Management Ike II Cumulative Flow Time Inventory Started Designed Coded Complete 2008 30 -M ar 23 -M ar 16 -M ar 5x 9M ar 2M ar eb 24 -F eb 2006 17 -F eb Slope in middle 3.5x - 5x slope at ends Advanced Kanban 240 220 200 180 160 140 120 100 80 60 40 20 0 10 -F Features Required throughput (velocity)
  • 23. We need average throughput (velocity) to peak at 13 features per month over 24 months. Advanced Kanban
  • 24. Littleโ€Ÿs Law Determines staffing level Target to achieve plan Throughput = WIP Lead Time Treat as Fixed variable Advanced Kanban From observed capability
  • 25. Changing the WIP limit without maintaining the staffing level ratio represents a change to the way of working. It is a change to the system design. And will produce a change in the observed โ€žcommon causeโ€Ÿ capability of the system Advanced Kanban
  • 26. Plan based on currently observed capability and current working practices. Do not assume process improvements. Advanced Kanban If changing WIP to reduce undesirable effects (e.g. multitasking), get new sample data (perform a spike) to observe the new capability
  • 27. Littleโ€Ÿs Law Determines staffing level Target to achieve plan 13 / month = WIP 0.25 months If current working practice is 1 unit WIP per person then 3 people are needed Advanced Kanban WIP = 3.25, round up to 4. Might be safe to From observed capability round down to 3.
  • 28. Slightly over-allocate the intangible class of service (green) to compensate against expediting 5 4 Analysis Input Queue In Prog Done 3 4 Development Dev Ready In Prog Done 2 Build Ready 2 = 20 total Test Release Ready ... Allocation 4 = 20% 12 = 60% 4 = 20% Advanced Kanban +1 = +5%
  • 30. For Service-oriented work, create predictability with a regular delivery cadence a strong config management capability capability to deploy effectively code with high quality For major projects Advanced Kanban understand peak throughput (velocity) model the s-curve on work complete treat the avg. lead time as the fixed variable use Littleโ€Ÿs Law to calculate WIP limits and staffing levels
  • 32. Aboutโ€ฆ David Anderson is a thought leader in managing effective software teams. He leads a consulting firm dedicated to improving economic performance of knowledge worker businesses โ€“ improving agility, reducing cycle times, improving productivity and efficiency in technology development. He has 25+ years experience in the software industry starting with computer games in the early 1980โ€Ÿs. He has led software teams delivering superior productivity and quality using innovative agile methods. He developed MSF for CMMI Process Improvement for Microsoft. He is a co-author of the SEI Technical Note, CMMI and Agile: Why not embrace both! David was a founder of the Lean Software & Systems Consortium, a not for profit dedicated to promoting better standards of professionalism and effectiveness in software engineering. Emailโ€ฆ dja@agilemanagement.net Advanced Kanban Davidโ€Ÿs book, Agile Management for Software Engineering โ€“ Applying the Theory of Constraints for Business Results, introduced many ideas from Lean and Theory of Constraints into software engineering.