This document summarizes a presentation about applying value streams in a DevOps environment given by Mark Lear and Mike Orzen. The presentation discussed how Menlo Logistics implemented value streams to address issues with organizational structure, project management, and work-life balance. Expected improvements included reduced cycle times, improved quality, and increased team focus. Implementation involved defining value stream roles and boundaries and addressing concerns. Results showed improvements in key metrics for IT production support and projects/enhancements. Lessons learned and ongoing challenges were also reviewed.

1. Copyright © Institut Lean France 2012
22 & 23 November, 2012
Paris, France
Applying Value Streams
in a DevOps Environment
~~~
A Case Study
Mark Lear, Process Owner
Project & Enhancement Value Stream (PEVS)
Mike Orzen, Lean IT Coach, Adjunct Professor

2. 22 & 23 November, 2012
Paris, France
Agenda
• Who are Con-way and • Implementation Approach
Menlo?
• Results
• Lean background at Menlo
• Lessons Learned
• Core Problems?
• Experimental • Ongoing Challenges
Countermeasures
• Q&A
• Expected Improvements
Applying Value Streams in a DevOps Environment – Lear / Orzen 2

3. Con-way Inc.: $5 billion transportation & logistics company
Less-than-Truckload (LTL) Third-Party Logistics (3PL) Truckload (TL)
•$3.1 billion revenue •$1.5 billion gross revenue •$0.6 billion revenue
•9,100 Tractors •145 worldwide warehouse •2,600 Tractors
locations
•26,300 Trailers •8,100 Trailers
•4,300 employees
•Nearly 300 service centers
Safety Collaboration Integrity Commitment Excellence
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Applying Value Streams in a DevOps Environment – Lear / Orzen

4. 22 & 23 November, 2012
Paris, France
Background on Lean at Menlo
• Getting started
• A person with a vision
• A key ingredient
• Check-Adjust
• The glass ceiling
Applying Value Streams in a DevOps Environment – Lear / Orzen 4

5. 22 & 23 November, 2012
Paris, France
Core Problems
External VOC Feedback:
• Cost and Delivery
• Quality
Applying Value Streams in a DevOps Environment – Lear / Orzen 5

6. 22 & 23 November, 2012
Paris, France
Core Problems (continued)
Internal VOC:
• Organizational Structure
• Project and Resource
Management
• Work-Life Balance
Applying Value Streams in a DevOps Environment – Lear / Orzen 6

7. 22 & 23 November, 2012
Paris, France
Experimental Countermeasures
Implementation of Value
Streams to address
standardization and flow:
• A “focused factory” concept
separating repetitive
production / operations
support work from project /
development work
Applying Value Streams in a DevOps Environment – Lear / Orzen 7

8. 22 & 23 November, 2012
Paris, France
Expected Improvements
External VOC:
• Reduce cycle time
• Allow better cost isolation
• Improve quality of
systems / processes
Internal VOC:
• Increase team focus on flow/
standardization
• Simplify scheduling
• Improve work-life balance
Applying Value Streams in a DevOps Environment – Lear / Orzen 8

9. 22 & 23 November, 2012
Paris, France
Implementation Approach
• Sold to IT managers first
• Documented value stream owner role
• Defined structure, boundaries and size of Value
Streams
• Socialized with team members and listened to
concerns
Applying Value Streams in a DevOps Environment – Lear / Orzen 9

10. 22 & 23 November, 2012
Paris, France
Implementation Approach (continued)
• Held Town Hall to address concern areas:
– Co-location
– Production support seen as low-value work
– Team member rotation
– Suitability for smaller teams
– Sensitivity to “factory” reference
Applying Value Streams in a DevOps Environment – Lear / Orzen 10

11. 22 & 23 November, 2012
Paris, France
Results – New Value Stream Organization
Operations
Sustained
Sales to
Startup
Projects & Enhancements
Pre-Sales Project Customer Quality Business
Integration TMS WMS
Support Mgmt Delivery Testing Intelligence
• Technical tools
• Job rotations
• Training
• Production turnover
Technical Customer Quality Business
Integration TMS WMS
Support Delivery Testing Intelligence
Production Support
Operations
Sustained
Applying Value Streams in a DevOps Environment – Lear / Orzen 11

12. 22 & 23 November, 2012
Paris, France
Results – IT Production Support
SMART Target 2011 2012 YTD
Critical Incidents resolved within 2 hours 28% 43%
High Incidents resolved within 4 hours 47% 54%
Expedited Service Requests resolved within 1 day 62% 75%
Overall incidents resolved within defined SLOs 86% 88%
Problem Resolution Tickets Opened / Resolved 34 / 23 58 / 51
Savings from Problem Resolution Team Kaizens $99.164 $170,758
Application Occurrences Application Duration (hrs)
15 30,00
25,00
10 20,00
15,00
5 10,00
5,00
0 0,00
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Applying Value Streams in a DevOps Environment – Lear / Orzen 12

13. 22 & 23 November, 2012
Paris, France
Results – IT Projects and Enhancements
SMART Target 2011 2012 YTD
Startups budget variance (+/- 10% budget) 58% 63%
Customer enhancement & R&D project budget variance
74% 72%
(+/- 10% budget)
Post Go-Live Defect Tracking NA 52%
Enhancement Cycle Time 22-34 Weeks 16-28 Weeks
2012 Initiatives:
• Post go-live defect tracking
• Design Oversight Committee
• Iterative Development Approach
• Improved Forecasting and Demand /
Resource Planning
• Warehouse Management
Enhancement Value Stream Pilot
Applying Value Streams in a DevOps Environment – Lear / Orzen 13

14. 22 & 23 November, 2012
Paris, France
Lessons Learned
• Key Role: Process Owner
• Transition duration
• Reliance on key resources
• “Big Picture” understanding
• Employee engagement
• Change management /
Current-to-future state
• Metrics and measurements
Applying Value Streams in a DevOps Environment – Lear / Orzen 14

15. 22 & 23 November, 2012
Paris, France
On-going Challenges
• Perception of Administrative
excess
• Low-hanging fruit is gone
• Keeping Lean fresh
• Manager engagement and
follow-up
• Metrics and measurements
Applying Value Streams in a DevOps Environment – Lear / Orzen 15

16. 22 & 23 November, 2012
Paris, France
What’s Next?
• Both Value Streams
• Projects &
Enhancements
• Production Support
Applying Value Streams in a DevOps Environment – Lear / Orzen 16

17. 22 & 23 November, 2012
Paris, France
Thank You!!
Mark Lear: Lear.Mark@con-way.com
Mike Orzen: Mike@MAOrzen.com
Applying Value Streams in a DevOps Environment – Lear / Orzen 17

18. 22 & 23 November, 2012
Paris, France
More Lean IT presentations and videos on
www.lean-it-summit.com
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