Lean Software Development Alan Shalloway

Creating a Model to
Understand Product
(and Software)
info@netobjectives.com
www.netobjectives.com
Development
Going Beyond Toyota

Alan Shalloway

1 Copyright © 2008 Net Objectives. All Rights Reserved. 30 September 2009

Net Objectives: Who We Are
Mission Assisting companies to maximize the return of their investment in
software development. The goal is for companies to increase their
ability to respond to changing business needs while improving the
efficiencies of their development teams.

Services Assessments and consulting to help create the proper structure for
the organization. Training and coaching in Lean, Agile, Scrum,
Patterns, Test-Driven Development to manifest the plan.
Expertise Enterprise Technology Delivery
Lean Software Development
Agile Methods (Scrum, XP, Kanban)
Product Management
Agile Analysis
Design Patterns
Test-Driven Development / Quality Assurance


Resources
 Resources: www.netobjectives.com/resources
– Webinars/Training Videos (PowerPoint with audio)
– Articles and whitepapers
– Pre/post course support Supporting materials
– Quizzes
– Recommended reading paths
 Blogs and podcasts: blogs.netobjectives.com
 Annotated Bibliography
 After-Course Support (students only)
 Additional Training
 Two User Groups
– http://tech.groups.yahoo.com/group/leanagile
– http://tech.groups.yahoo.com/group/leanprogramming

Join our e-mail list to receive regular updates and information
about our resources and training of interest to you


Alan Shalloway
 CEO and Founder, Net Objectives
 Deliver courses and coaching in:
– Lean Software Development
– Kanban Software Development
– Lean-Agile / Scrum
– Lean Enterprise Release Planning
alshall@netobjectives.com – Design Patterns and Advanced Software Design
 MS in Computer Science from M.I.T.
 Author of:


Agenda

 What is Lean?
 Product Development Is Not Manufacturing
 Re-defining Lean
 Lean-Thinking in Software Development


What Is Lean?

6 30 September 2009

Lean-Thinking

 Originates from The Machine That Changed the World:
The Story of Lean Production, Womack and Jones, 1991
 Commonly thought of as “How Toyota Does It”
 Toyota
– Started with Deming
– Added “Just In Time” and Autonomation
– Created a culture of continuous improvement by
 Management that leads, not directs
 Very effective methods for learning, sharing and communicating


Poppendieck’s Translation of Lean Manufacturing

1. Eliminate Waste
2. Build Quality In
3. Learn Before Commitment
4. Deliver Fast
5. Respect People
6. Improve Relentlessly
7. Appreciate the System

* Note: These change slightly from book to book (an
example of continuous improvement).


Toyota as the Source of Lean

Continuous
Lean Quality
Learning /
Practices Management
Visual Controls Improvement
A3s, Kaizens

Toyota
JIT Autonomation

Deming

Product
Development
Is Not
Manufacturing
Insights May Be Different

10 30 September 2009

Software Development as Product Development

 Software is more of a discovery process
 Parallels the work of designing a product prior to
manufacturing
– A useful definition of Product Development is that it is the
collective activities, or system, that a company uses to
convert its technology and ideas into a stream of products
that meet the needs of customers and the strategic goals of
the company

Product Development for the Lean Enterprise, by Michael Kennedy. Oaklea Press. 2003

11 _1dd Copyright © 2008 Net Objectives. All Rights Reserved. 30 September 2009

What Is Software Development Like?

 It is not like building construction
– Where you know what you need to do
– Little discovery is taking place
 Instead…
 It is like product development
– Where you don’t know what to do
– Where much of your time is in discovery
 Discover what the customer wants
 Discover how to build it
 Build it


Principles Apply Everywhere

 Practices depend upon context
 May misinterpret the principles due to such different
contexts
 Here are two examples …


Value – Not Just to the Customer

 Three types of value
– Delivered value to the customer
– Improving the delivery mechanism
– Improving understanding of customer value
 In manufacturing, delivered value to the customer
works
 Finding underlying principles in Lean Manufacturing
may miss something


Set Based Concurrent Engineering

 SBCE is a risk mitigation practice
 Alternatives exist in the software world
 What we need is risk mitigation, not necessarily SBCE
 Biggest risk in product development is market risk, not
technical risk
 Not saying SBCE wouldn’t be useful (but other methods
may be as or more useful)


Re-Defining Lean


Toyota as an Example of Lean

Continuous
Lean Quality
Learning /
Toyota
Practices Management
Visual Controls Improvement
A3s, Kaizens

Lean
Toyota
Principles
JIT Autonomation

Deming
System of Profound
Knowledge

New Definition of Lean

 Sorry, I am not qualified to re-define Lean.
 But I can speak to where the definition will come.

 (for example) The Principles of Product Development Flow, Don
Reinertsen
– Economic Principles (21 rules)
– Queuing Principles (16 rules)
– Variability Principles (16 rules)
– Batch Size Principles (22 rules)
– WIP Constraint Principles (23 rules)
– Flow Control Principles (30 rules)
– Fast Feedback Principles (24 rules)
– Decentralization Principles (23 rules)


Science / Experience as the Source of Lean

Software
Toyota Services
Development

Lean
Lean-Thinking
Principles
Flow
JIT Autonomation

Deming
System of Profound
Knowledge

The Lean Enterprise

Lean “Science”
Flow, Cadence, Pull
Driving from Value
Systems Thinking
Lean
Lean
Thinking
Management Lean Knowledge
Leadership
Stewardship
Education Process & people
improvement
Visual Controls
A3s, Kaizens
Coaching
5-whys


Components of Lean-Thinking

 The Foundation of Lean-Thinking
– Deming
 Systems
 People
 Look to the whole


The Science of Lean Thinking

 Flow, pull and cadence
 Just In Time
– Improving speed of delivery is more important than
improving productivity
– Transforms our view to Flow
 Utilization Theory
– Queues / Batch Sizes / WIP / Little’s Law / Thrashing
– Telephone Switching Systems (100 yrs ago)
– Internet Flow
 Improving flow improves quality and lowers cost


Systems Thinking Opens Up New Possibilities

 At the Miami Lean/Kanban Conference (May 2009)
experience reports demonstrated that CPI was
achieved faster than one would have expected from
start up agile teams.
 Why?
– Focus on process not people (less fear)
– Gave ability to test theories (true PDSA)
– Most importantly, enabled people to think in concrete terms
and infer principles from what was happening


Transparency Creates Management Opportunities

 Management is not a dysfunctional role to be
protected from
 Management is a key component of any enterprise
endeavor
 Management is not servant leadership
 Management is as committed as the teams


Lean Management

 What is management?
 Perhaps, should ask – what should management be?
– Based on general business
– Based on enabling Lean-Science to manifest itself
 Lean-Thinking provides the basis for Lean-Management
 How does management and culture relate?


Creating a Lean Culture

“Should a company target its culture in its efforts to transform its production
processes and all the positions – high and low – associated with it? It is tempting
to answer: Yes! But that would be a mistake.
Culture is no more likely a target than the air we breathe. It is not something
to target for change. Culture is an idea arising from experience. That is, our idea
of the culture of a place or organization is a result of what we experience there.
In this way, a company’s culture is a result of its management system. The
premise of this book is that culture is critical, and to change it, you have to
change your management system.
So, focus on your management system, on targets you can see, such as
leaders’ behavior, specific expectations, tools, and routine practices. Lean
production systems make this easier, because they emphasize explicitly defined
processes and use visual controls.”

David Mann. Creating a Lean Culture: Tools to Sustain Lean Conversions


Lean Knowledge Stewardship

 Continuous process improvement
 Improved skills
 Knowledge sharing
 A3s
 Kaizens
 AARs
 5-whys
 Value-Stream Mapping


A Personal Story


Ups and Downs

 Lean-thinking leads to
– Lean-management leads to
 Lean knowledge stewardship
 Organizations can evolve at all levels


Lean Thinking
Throughout the
Enterprise
Extending Agility Beyond the
Development Team


Enterprise Agility Requires

 Business Agility
– set direction
 Product Portfolio Management
– apply resources
 Team Agility
– do the work
 Proper Management
– tie Teams Together
 Technical Skills
– keep software quality high


In Depth
 Business Agility
– Shorter planning cycle
– Continuous re-planning
– Focused on maximizing ROI of consumed products
– Product Development value streams create business operational value
streams
 Product Portfolio Management
– Manage via MMFs and value delivered
– Enable well-defined teams
 Team Agility
– Build and deliver incrementally based on business needs
– Continuously improve process
– Use visual controls to create transparency
 Proper Management
– Improve organizational structure to reduce impediments to flow
– Coach teams to ensure process being improved
 Technical Skills
– Take advantage of best engineering and testing practices
– Continuously improve technical skills and approach

Development Driven Contrasted with
Business Driven
Development Driven Value Stream:
• Improve development work cell.
• Pulling from business affords them the opportunity to ask for smaller things.

Business Portfolio Mgt Development Deployment

Less Influence Direct Control Strong influence
Influence

Business Driven Value Stream:
• Quarterly planning and releases affects all of value stream
• Improves delivery of value regardless of development methodology
• Encourages development team to do iterative development

Direct Control
Business Portfolio Mgt Development Deployment`

Strong influence Strong influence Strong influence


Business Agility + Team Agility = Enterprise Agility

 Proper management needed to facilitate this
 Technical agility needed to sustain it


Transitioning to Business Agility

 Transition from:
– yearly planning cycle with yearly delivery
– to quarterly planning with incremental delivery.
 Can be done in stages:
– Yearly planning & yearly delivery
– Yearly planning & quarterly delivery
 Gives appearance of agility – but is not
– Quarterly planning with quarterly release plan
 Requires no change to development team
– Quarterly planning with iterative release plan
 True iterative development


The Lean Enterprise

Business Value
Incremental business value
driven
Portfolio & release planning

Team Agility Manage- Flow
Visual Controls ment
Make Focus on
speed while
Lean Continuous
flow of
maintaining
integrity
Enterprise business value
Impediment
Mgt

Technical Agility
Best engineering practices –
ATDD, TDD, Design Patterns
Continuous incremental
improvement of engineering
practices Sustainably


The Flow of Software Development
Customers

Regional Coordinators
Product Managers
Business Leaders

Product Owner(s) Trainers & Educators
Customers
and/or
Support
First Generation

Scrum XP

Second Generation

Kanban Scrumban
Shared
Components
Business Driven Product
Enterprise Agility Related

New Products and/or Development
Enhancements Organization

Expanding Agility to the Enterprise

Business Driven Software Development
Achieving Enterprise and Team Agility

Agility
Devel-
Business
opment
Agility
Agility


Question and
Answer


info@netobjectives.com
Thank You!
www.netobjectives.com

… and following is more to help you
plan your next steps


Resources
 Resources: www.netobjectives.com/resources
– Webinars/Training Videos (PowerPoint with audio)
– Articles and whitepapers
– Pre/post course support Supporting materials
– Quizzes
– Recommended reading paths
 Blogs and podcasts: blogs.netobjectives.com
 Annotated Bibliography
 After-Course Support (students only)
 Additional Training
 Two User Groups
– http://tech.groups.yahoo.com/group/leanagile
– http://tech.groups.yahoo.com/group/leanprogramming

Join our e-mail list to receive regular updates and information
about our resources and training of interest to you


Bibliography
 Science of Lean-Thinking
– Managing the Design Factory, Don Reinertsen
– Principles of Product Development Flow: Second Generation
Lean Product Development, Donald Reinertsen
– Lean Thinking: Banish Waste and Create Wealth in Your
Corporation, Revised and Updated, James Womack, Daniel Jones
 Lean Management
– Leader’s Handbook: Making Things Happen, Getting Things
Done, Peter Scholtes
– Creating a Lean Culture: Tools to Sustain Lean Conversions,
David Mann
 Lean Learning
– Managing to Learn, John Shook

New Online Course
 Everywhere (Internet)
– Lean Software Development – TBD starting this summer

For more information, see www.netobjectives.com/courses


Net Objectives Services
Training in Sustainable Product Development Certification Programs by Net Objectives
Net Objectives offers the most comprehensive Net Objectives offers certification programs that
Lean-Agile training in the world. Our offerings provides a road-map of knowledge as well as
include Lean, Agile Analysis, Scrum, Design Patterns, resources to get there.
Test-Driven Development, and Lean-Agile Testing. • Scrum Certification
Our approach is a blend of principles and practices • Scrum Master Certification
to provide a complete team and/or enterprise wide • Product Owner Certification
training solution.
Net Objectives is not affiliated with the Scrum Alliance

Assessment Services Lean-Agile Coaching
An effective way to embark on an enterprise level While training provides foundational knowledge
transition to Lean-Agile methods is to start with an and is a great jump start, coaching is another
assessment of where you are, where you want to go effective way to increase the abilities of teams.
and options on how to get there that are right for
Our coaches work with your teams to provide
you and your budget.
guidance in both the direction your teams need to
go and in how to get there.
Coaching provides the knowledge transfer while
working on your own problem domain.


Best Practices Curriculum
Lean Agile
Exec
Overview for Senior Management
Mgmt
Leaders

Scrum Master
IT Mgmt
Agility for IT Management
Lean Software Practitioner
Managers
(if not taking
Development
Implementing For
Scrum for Your Management
Business Team course) Lean-Agile Business Management
Mgmt Enterprise
Business Release
Product Planning
Owner
Analyst OR Analyst
Agile Planning Lean-Agile
Implementing
and Testing
Scrum for
Scrum Master Estimating Practices
Your Team (if not taking Advanced
Process Certification with User Process
Implementing
By Net Stories Scrum for Your
Agile
OR Objectives
Lean Software Team course)
Development
Implementing
Agile
Tester Development Effective Tester
With VSTS for Object- Acceptance
Oriented

Emergent Design
Agile Teams Test-Driven Design Patterns
Analysis and Development for Agile
Design Developers Advanced
Developer (if needed) Software Technical
Sustainable Design
Test-Driven
Technical Training: C++, C#, Java TDD Database Boot Camp Development

Net Objectives Courses
 Lean Software Development  Agile Software Development
– Lean Software Development for Management – Design Patterns Explained
– Lean Software Development – Emergent Design: Effective Agile Software
– Lean-Agile Software Development Development
 Agile/Scrum – Design Patterns for Agile Developers
– Implementing Scrum for Your Team – Sustainable Test-Driven Development
– Implementing Scrum for Multiple Teams – Acceptance Test-Driven Development
– Scrum Master Certification by Net Objectives – TDD Database Boot Camp
– Lean-Agile Enterprise Release Planning – Advanced Software Design
– Agile Planning and Estimating with User Stories – Lean-Agile Testing Practices
– Agile Life-Cycle Management with VersionOne – Test-Driven ASP.NET
– Product Owner Certification by Net Objectives – Effective Object-Oriented Analysis and Design
– Implementing Agile Development with Microsoft™
Visual Studio Team System™

A Top 5 Course
A New Course

For more information, see: www.netobjectives.com/training

Lean Software Development Alan Shalloway

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