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John Rauser
July 27th, 2018
This is Lean
1 2 3 4
PRESENTATION
agenda
What is Lean
The Myth of Resource Efficiency.
Key Concepts
Overview of features that meet your
solution requirements.
Key Metrics
Discussion and clarification of needs.
7Geese
How can we apply this to us
Building the
Right Things
Building the
Things Right
Systems
“We create relationships because we
believe that we will create some value that
is not present in the individual parts”
- Reinertsen
“Systems produce the behaviors, not the
people in them”
- Deming
Know Your System
The Myth of Resource Efficiency
SECTION 1
Need: I am sick and I need a diagnosis
Value-adding time: Time with doctors, nurses
or staff (5 hours)
Time Period: Time from bug being reported to
change going live in production (1000 hours)
Flow efficiency: 1 / 7 = 0.05%
FLOW EFFICIENCY
Need: There is a bug in the 7Geese UI
Value-adding time: Developer refactoring
code to fix the bug (1 day)
Time Period: Time from bug being reported to
change going live in production (7 days)
Flow efficiency: 1 / 7 = 15%
FLOW EFFICIENCY
Lean is an operations strategy that prioritizes
Flow Efficiency over Resource Efficiency
This is Lean, p. 89
FACTS
Lean: Definition
Typical flow problems:
● Customer needs not met
● Missed deadlines
● Rework, unnecessary work
● Time wasted waiting for work
● Not enough work, or too much work
● Working on the wrong things
● Inability to estimate
Resource Efficiency Flow Efficiency
Typical resource problems:
● Lack of information
● Toil (work that scales linearly)
● Errors and mistakes (defects)
● Unplanned or hidden work
● Skill and experience
● Equipment / Environment
A Where most organizations think they are
B Where most organizations actually are
C Increasing Flow Efficiency
Use of visualization, standardization and visualization to drive a dramatic
increase in flow
D Increasing Resource Efficiency
Once flow efficiency has been achieved, it becomes easy to see how
resources can be made more efficient and effective
The Efficiency Paradox
E The Ideal State
Resource efficiency is at less than full capacity, allowing the org to deal
with uncertainty,
The reality is that a lot of work performed is superfluous
Status quo appears to work
Unwillingness to risk change
Key Concepts
SECTION 2
Value Stream
1) What activities are value-adding?
2) What is value?
Standardization
Visibility
Flow Measurement
Key Metrics
SECTION 1
Outcomes Provide Evidence of Value
and Ways to Improve
FACTS
Evidenced-Based Management
Work in Progress
Queues (wait states)
Lead Time
How long value take to be delivered
to a customer
Flow Time
(throughput)
How long does it take to create value?
Number of units processed per time unit
Cycle Time
(Little’s Law)
How much work can an activity
process?
Cycle Time =
Work in Process
Average Completion Rate
Value-Creating Time
Time spent within a process that
actually create value
Three Sources of Inefficiency
1) Long throughput times
2) Many flow units
3) Many restarts per flow unit
This is Lean

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This is Lean

  • 1.
  • 2. John Rauser July 27th, 2018 This is Lean
  • 3. 1 2 3 4 PRESENTATION agenda What is Lean The Myth of Resource Efficiency. Key Concepts Overview of features that meet your solution requirements. Key Metrics Discussion and clarification of needs. 7Geese How can we apply this to us
  • 5. Systems “We create relationships because we believe that we will create some value that is not present in the individual parts” - Reinertsen “Systems produce the behaviors, not the people in them” - Deming Know Your System
  • 6.
  • 7. The Myth of Resource Efficiency SECTION 1
  • 8.
  • 9.
  • 10. Need: I am sick and I need a diagnosis Value-adding time: Time with doctors, nurses or staff (5 hours) Time Period: Time from bug being reported to change going live in production (1000 hours) Flow efficiency: 1 / 7 = 0.05% FLOW EFFICIENCY
  • 11. Need: There is a bug in the 7Geese UI Value-adding time: Developer refactoring code to fix the bug (1 day) Time Period: Time from bug being reported to change going live in production (7 days) Flow efficiency: 1 / 7 = 15% FLOW EFFICIENCY
  • 12. Lean is an operations strategy that prioritizes Flow Efficiency over Resource Efficiency This is Lean, p. 89 FACTS Lean: Definition
  • 13. Typical flow problems: ● Customer needs not met ● Missed deadlines ● Rework, unnecessary work ● Time wasted waiting for work ● Not enough work, or too much work ● Working on the wrong things ● Inability to estimate Resource Efficiency Flow Efficiency Typical resource problems: ● Lack of information ● Toil (work that scales linearly) ● Errors and mistakes (defects) ● Unplanned or hidden work ● Skill and experience ● Equipment / Environment
  • 14.
  • 15. A Where most organizations think they are B Where most organizations actually are C Increasing Flow Efficiency Use of visualization, standardization and visualization to drive a dramatic increase in flow D Increasing Resource Efficiency Once flow efficiency has been achieved, it becomes easy to see how resources can be made more efficient and effective The Efficiency Paradox E The Ideal State Resource efficiency is at less than full capacity, allowing the org to deal with uncertainty, The reality is that a lot of work performed is superfluous Status quo appears to work Unwillingness to risk change
  • 17. Value Stream 1) What activities are value-adding? 2) What is value?
  • 22. Outcomes Provide Evidence of Value and Ways to Improve FACTS Evidenced-Based Management
  • 25. Lead Time How long value take to be delivered to a customer
  • 26. Flow Time (throughput) How long does it take to create value? Number of units processed per time unit
  • 27. Cycle Time (Little’s Law) How much work can an activity process? Cycle Time = Work in Process Average Completion Rate
  • 28. Value-Creating Time Time spent within a process that actually create value
  • 29. Three Sources of Inefficiency 1) Long throughput times 2) Many flow units 3) Many restarts per flow unit