This document provides a history of the development of Lean and Agile principles and practices from their origins in manufacturing and software development. It traces the evolution of ideas and frameworks from Toyota's Lean manufacturing system in the 1900s to modern Agile methods like Scrum, Extreme Programming, and the Agile Manifesto in the 1990s and 2000s. The document then outlines key Lean principles like continuous improvement, respect for people, and eliminating waste. It shows how Agile methods implement these Lean principles through practices like prioritized backlogs, iterative delivery, and eliminating unnecessary work. Finally, it discusses how Lean and Agile ideas can be synergistic when combined in a framework focused on value delivery, waste elimination, and continuous improvement.

1. Lean Agile Value
Streams
M.Maris Prabhakaran

2. 2
Agile’s begins with Lean
• Toyota - Lean
Manufacturing,
Taiichi Ohno (early
1900’s) & The
Toyota Production
System, Jidoka
(built in quality),
and Just in Time
(JIT) from Piggly
Wiggly.(1948)
• Lockheed
Skunkworks (XP-
80,F-104,U-2,SR-
71) - Invest in
people, clear
agreements, small
groups, lightweight
change control
and
documentation,
simplicity,
intermediate
milestones, test
early, leverage
expertise
• Demming -
Systems Thinking,
Statistical Process
Control, Total
Quality
Management
• The rise of
smaller
computing
devices and
software led to
management
“best
practices”
based on the
“traditional
methods” and
a manufacturing
mindset.
Systematic
development
and batch based
processes
arose.
• Winston Royce
– Waterfall
(1970) was
interpreted as
phased based,
but actually
included an
iterative
recommendatio
n.
• Xerox PARC
LRG - Small
Talk (1980s),
Rise of the
object oriented
programming in
the mid-1980s
• Takeuchi and
Nonaka used
the analogy with
“scrum”, “The
New, New
Product
Development
Game” (1986)
• Tom Gilb -
Iterative
Delivery (Tom
Gilb, 1988),
James Coplien
- circumstance
based Patterns
and the org,
Weinberg -
Teams and
Individual
interactions
(Weinberg,
DeMarco, Lister-
Peopleware)
• James Martin -
Rapid Application
Development by
James Martin
(1991), UK DSDM
Consortium –
DSDM
• DeGrace & Stahl,
as well as Jeff
Sutherland and
Ken Schwaber,
wrote papers on
Scrum (1991)
• Kent Beck - Test
Driven
Development
(1993) and
Extreme
Programming
(1996) at Chrysler,
later joined by
Ron Jeffries
• Rational (later
IBM) - Unified
Process (RUP)
iterative framework
(1995)
• Jeff De Luca –
Feature Driven
Development
(1999)
• Jim Highsmith – Adaptive
Software Development: A
Collaborative Approach to
Managing Complex Systems
(2000)
• Agile Manifesto - On
February 11-13, 2001, at
The Lodge at Snowbird ski
resort in the Wasatch
mountains of Utah,
seventeen light weight
methodologists (a.k.a –
organizational anarchists)
met to talk, ski, relax, and try
to find common ground and
of course, to eat.
• Tom and Mary
Poppendieck - Lean
Software Development book
(2003)
• Alistair Cockburn – Crystal
Clear, focused on people,
efficiency, and habitability
(2004)
• IBM & Sue Kinney - begins
Enterprise Agile Adoption for
25,000 developers (2006),
DSDM revamp (2007)
• )
1940’s – 1960’s 1970’s 1980’s 1990’s 2000’s

3. 3
The 14 Guiding Lean principles
• Continuous organizational learning through Kaizen
• Go see yourself to understand (Genchi Genbutsu)
• Make decisions slowly by consensus, considering all
options
• Implement rapidly (Nemawashi)
• Grow leaders who live the philosophy
• Respect, develop, and challenge your people and teams
• Respect, challenge, and help your suppliers
• Create process flows to surface problems
• Use pull systems to avoid overproduction
• Level out workload (Heijunka)
• Stop when there is a quality problem (Jidoka)
• Standardize tasks for continuous improvement
• Use visual control so no problems are hidden
• Use only reliable, thoroughly tested technology
• Base management decisions on a long-term philosophy,
even if they are at the expense of short term financial
goals
Problem
Solving
People & Partners
Process
(Eliminate Waste)
Philosophy
(Long term thinking)
*Reference - Toyota Way – Jeffrey Liker

4. 4
Lean Practices and Focus
Inventory
Waiting
Over-production
Motion
Transport
Defects
Over-processing
Categorization of 7 Wastes
Customer
Value
Value
Stream
Flow
Customer
Pull
Perfection
Making more than is necessary
or making things faster than
necessary, consistently
working ahead
Redundant or unnecessary
processing, work that provides
the customer more than he/she
requires or is willing to pay for
Information or material
waiting unnecessarily in queue
Unnecessary people motions,
travel, walking, searching
People waiting for machines,
materials or information
Or Machines waiting for
people, materials, or
information
Unnecessary or ineffective
handoffs, transfers of material
or information (e.g. data,
communications)
Rework – work done because of errors in the previous process
Lean is a systematic, continuous
improvement approach that focuses
on eliminating waste from your
processes.
5 + 1 Principles of Lean
Lean Tools
Reduce
Waste
+ Six Sigma

5. 55
Lean Agile Pyramid
Customer
Value
Value
Stream
Flow
Customer
Pull
Perfection
Reduce
Waste
LEAN PRINCIPLES
Scrum XP
AGILE APPROACHES
DEFINITION OF
DONE
VOICE OF THE
CUSTOMER
TEST DRIVEN
DEVELOPMENT
AUTOMATION
VALUE STREAM
MAPPING
CONTINUOUS
INTEGEATION
DSM/ 5S /
7 WASTESS
ROOT CAUSE
ANALYSIS
SIPOC
ANALYSIS
KANBAN
BOARD
CUSTOMER
PULL
THEORY OF
CONSTRAINTS
LEAN & AGILE PRACTICES

6. 66
Lean Agile Value Stream
FLOW
Lean uses special principles & tools to
map the value stream, optimize flow,
and remove waste, and solve
problems.
Agile uses roles & practices to enable
pull based & frequent delivery of value,
collaboration, & continuous
improvement.
LEAN
AGILE
Any system is
only as efficient
and capable as
the largest
constraint, at
any given time,
will allow.
WASTE

7. 7
Waste elimination using Agile
Waste Category Application to SW How Scrum/XP Resolves
Inventory Partially Done Work Shorter iteration cycles
Smaller inventory of detailed requirements – Product
backlog with complete User Stories
Extra Processing Unnecessary docs Focus on the end product and less documentation, simplicity
in code, automate everything possible
Over Production Extra Features Prioritization of product backlog helps to do away with nice
to have features which are waste
Transportation Building the wrong thing Prioritized and actionable User Stories, Clear Acceptance
Criteria, Customer/PO involvement, & Demos
Waiting Waiting for info, Handoffs Product owner exists and is engaged daily, cross functional
teams with everyone included to deliver the Sprint, Pair
programming
Motion Task Switching Slicing, Swarming, Use of DSM, Co-Located (or using W-
GAME),
Defects Defects Definition of Done, TDD, Test first, Defects must be fixed
during sprint

8. 88
Agile Implements Lean Principles
Lean Agile/Scrum/XP
Capacity Planning (Queing Theory) Enterprise Backlogs, Product Backlogs, Prioritization based Biz Value, Release Planning,
Pull (Kanban) Prioritized backlog, Kanban (Scrum board) tracking/status, Feature focused, User Scenarios to Stories,
Personas, Iterative and Incremental, User Acceptance Testing, Sprint Goals, Sprint Planning (only 1-2
iterations),
Takt Time (customer to customer) Backlog to Production measurement
Single Piece Flow Small stories, feature based/slicing and swarming, Iterative and Incremental
Waste Elimination Only develop stories that are actionable, only do what’s absolutely necessary, simplicity in all things,
automation, excellence in engineering,
Lean Agile/Scrum/XP
Standardization Standard dev practices, framework usage, communications model
Value Threads Story Mapping from Roadmap to Release to MMF to Epic to Story
Automation Automated testing, Continuous Integration, Code Health, Easy Deploy
Line Stop (Jidoka, Poka Yoke, Andon) Refactor, Reuse, Big Visuals, Iterate, Incremental
Fail Fast Iterate, Inspect and Adapt, Retrospectives
No defects No defects, Definition of Done, Test Driven Development, Refactor, Shippable code
Lean Agile/Scrum/XP
Go See Yourself Customer close by, Prototypes, Iterative and Incremental, Early Deploy
Remove Waste Customer close, decisions at lowest level, good estimation, actionable user stories, no goldplating, team
instead of cowboy, remove needless metrics, automation of almost all testing, no over-the-wall, biz/IT
combined teams, simplify governance, daily standups
Workload Leveling, Concurrent Eng. Small stories, slicing and swarming, cross-functional team, daily standups
Quick Changeover Cross-functional team, simple and repeatable practices, no indiv. Code ownership, consistent build and
deploy, team rotations, daily standups
Automation Automated test, integration, build, deploy tools, andon, communication
Orthogonal Arrays OATS Pairing with Dev and QA, Automation
Increased
accessibility
to Value
Optimal
use of
Resources
Efficiency
and
Capability,
Speed
Cycle Time
Cost
Quality

9. 99
• Release Planning ensures that real
customer needs are pursued.
• Prioritized Backlogs ensure that
the most important/valuable items
are completed first, giving the most
value the soonest.
• Iterative and incremental sprint
cycles ensure that changes can be
made to move with the customer
and only add what is valuable –
removing waste due to delivering
something not valuable.
• Potentially Shippable Software is
released every sprint enabling a
clear and early value delivery to the
customer. This increases ROI and
reduces cost.
Value Flow
• Prioritized backlogs reduce
investment on work that is not
valuable.
• Iterative and incremental cycles
enables the business to cease work
when enough value has been
achieved, reducing wasted time
spent creating lower value results.
• Planning by sprints allows only
the necessary amount of planning to
be done, since the true outcome
cannot be known until it is being
delivered.
• Only minimal documentation and
other deliverables are created,
reducing the wasted time in
production, maintenance, and
rework when poorly managed.
Eliminate Waste
• Daily scrums increase communication
and ensure that the team can be
proactive, changing as needed based on
the conditions.
• Retrospectives enable the teams to
learn about one another, their work, and
how to get better.
• Frequently released software enables
more frequent feedback from the
customer, enabling more adaptive
change to meet their needs.
• Product Owners/Customers work
directly with the creators of value,
providing direct feedback about the
outcome.
Increase Feedback
• Iterative and incremental work periods
enable the results to be delivered as soon as
they are good enough.
• Two – Four week iterations is enough
time to get work done, but not enough to
waste, which ensures that people work to
reduce wasted time.
• Definition of Done ensures that as the
work products are being created, they are
completely ready for customers.
• Inspect and Adapt allows the
organization to change course and still
produce results in much less timeframe
than normal.
Deliver Fast
• Test Driven Development helps
ensure that the software is built to
achieve the criteria designed for it.
• Testing happens at the beginning, not
at the end of development process
ensuring that higher quality can be
achieved.
• Definition of Done specifies specifically
all the steps that must be taken to release
the software, not just the coding of the
software.
• Enhanced roles in Scrum/XP ensure
that everyone is concerned about and
takes ownership of quality. The
ScrumMaster helps ensure impediments
are removed, thus enabling clearer
understanding of the work and higher
quality.
Build Integrity In
• Teams are cross-functional, enabling
a multi-faceted look at problems and
opportunities, ensuring that many angles
are thought about during creation – the
cheapest time in the lifecycle for fixing
errors.
• Development selecting items from
the backlog to work from
• Selection of work Vs assignment of
tasks
• Product owners working directly
with the team reduce wasted due to time
delays in communication.
Empower The Team
• Delay requirements that are
architecturally not significant till the last
responsible moment (AS Late As
Possible)
Delay Commitment
• Product Owner/Customer
collaboration ensures that only what is
needed is produced, at the right quality,
and in the right time.
• Demos show value to the customer
early.
• The ScrumMaster helps remove
impediments in and outside of the team.
Resolve Constraints
• Release plan provides the end to end view
at a high level
• Break functionality into vertical slices to
get a end to end view
See the Whole
Lean & Agile Synergies
DSM
VOICE OF THE
CUSTOMER
INCREASE
FEEDACK
5S
AUTOMATION
VALUE STREAM
MAPPING
ANDON VISUAL
CONTROL
QUALITY
FUNCT.
DEPLOYMENT
ROOT CAUSE
ANALYSIS
SIPOC ANALYSIS
KANBAN
BOARD
CUSTOMER
PULL
THEORY OF
CONSTRAINTS
KAIZEN
LEAN AGILE FRAMEWORK LEAN TOOLS