Are you using Kanban? The Acid Test
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© 2016 ANDY CARMICHAEL ALL RIGHTS RESERVED LEAN KANBAN FRANCE 2016 1 Are you using Kanban? The Acid Test Andy Carmichael PHD FBCS @andycarmich Twitter: #LKFR16 @andycarmic h
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Transcript of Are you using Kanban? The Acid Test
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Are you using Kanban?The Acid Test
Andy Carmichael PHD FBCS@andycarmich
Twitter: #LKFR16 @andycarmich
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Visit leankanban.com/guide
for free download.
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“Litmus Test”
A simple test of acidity (alkalinity)
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The Kanban Litmus Test – purpose • to help organizations assess
their progress with Kanban • suggest areas that may yield
effective improvements• to provoke and challenge
shallow interpretations of the Kanban Method
https://en.wikipedia.org/wiki/Kanban_board
Anderson, David J. 2014. "Kanban litmus test." July 23. http://www.djaa.com/kanban-litmus-test
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Introducing Kanban to organizationsA tweetable summary…
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Introducing Kanban to organizationsA tweetable summary…
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Introducing Kanban to organizationsA tweetable summary…
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Introducing Kanban to organizationsA tweetable summary…
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The Litmus Test – 4 questions…1. Has management behaviour changed
to enable Kanban? 2. Has the customer interface changed,
in line with Kanban? 3. Has the customer contract changed,
informed by Kanban? 4. Has the service delivery business model changed
to exploit Kanban?
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1. Has management behaviour changed to enable Kanban?
• Kanban succeeds where managers • respect kanban system policies, • embrace customer focus as a value,
and • manage work in line with the service
delivery principles
Ask these supplementary questions . . .
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(1.1) Is management behaviour consistent with Kanban’s deferred commitment, pull system approach?
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(1.2) Are WiP limits respected at the system level, not just per-person WiP limits?
Aggregated personal kanban board Per-person-WIP-limit kanban boardProtokanban: David J Anderson
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Several benefits of protokanban implementations• Transparency• Relief from overburdening• Reduced multi-tasking• Improved quality• Greater collaboration• Greater empathy• Improving levels of social capital
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Team kanban board• Motivation is relief from an
over-burdened environment
• WiP is limited within the system
• Next step is to focus on improving end-to-end service delivery.
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Aggregated Team kanban board• Aggregation of a chain
of Team kanban boards • Unconstrained queue
between the teams may result in unpredictable wait times• Service delivery
compromised by poor queuing
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(1.3) Is customer focus always an understood reason for change? • Change viewpoint to managing work – on
behalf of customers – rather than workers. • Just as Lean has often been interpreted as a
cost-saving by reducing headcount, Kanban sometimes seen as controlling employees• Focus on value for customers
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2. Has the customer interface changed, in line with Kanban?
• The services in the organization need • true kanban systems with deferred
commitment• a replenishment strategy to schedule,
sequence, and select work.
• This focuses the customer interface on • maximizing the flow of value • exploiting current constraints
Ask these supplementary questions . . .
Customer
Service
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2.1 Is the approach to scheduling and selecting customer requests based on a pull system with limited work in progress?
Requests Selected Development Acceptance Complete
Discarded
Commitment
Ongoing Ready4 6 4
Delivery
Rele
ased
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2.2 Are the commitment and delivery points clearly defined and are records of Lead Times and Delivery Rates available?
Requests Selected Development Acceptance Complete
Discarded
Commitment
Ongoing Ready4 6 4
Delivery
Rele
ased
System Lead TimeDelivery Rate
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Flow MetricsThe minimum set (metrics):• Lead Time• Delivery Rate• WiP• Team size (Effort / Cost)
The minimum set (charts):• Scatterplot (Lead Time)• Run Chart (LT, DR, WiP)• Cumulative Flow Diagram
Requests Selected Development Acceptance Complete
Discarded
Commitment
Ongoing Ready4 6 4
Delivery
System Lead Time
Importance of Customer Lead Time
Rele
ased
Receipt
Customer Lead Time
Request
Requests Selected Development Acceptance Complete
Item per time period
Discarded
Commitment
Ongoing Ready4 6 4
System Lead Time
Rele
ased
Receipt
Customer Lead Time
Accepted Request Delivery
Regular cadence
Sync’d System and Customer Lead Time
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Sushi Restaurant versus Staff Service Restaurant
Importance of deferred commitment with
visible Qs, predictable Customer Lead Time
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2.3 Is there a regular Replenishment Meeting?
Example implementation of the 7 Cadences
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3. Has the customer contract changed, informed by Kanban?
• The customer contract may be• a formal service level agreement or • an understood service level expectation
• Should be based on measured performance of the service, especially• Lead Times and • Delivery Rates.
Ask these supplementary questions . . .
Customerf4p
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3.1 Are commitments based on the agreed or understood service levels?
• explicit service level agreements or
• service level expectations? f4p
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3.2 Are these levels based on probabilistic forecasting using the kanban system’s observed Lead Times and Delivery Rates?
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4. Has the service delivery business model changed to exploit Kanban?
• In services with established kanban systems provide opportunity to manage value and risk• classes of service• capacity allocation / reservation• demand shaping and differential pricing.
• Ask these supplementary questions . . .
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4.1 Does the service delivery business model use classes of service appropriately• based on an understanding of business risks (for example, the cost of
delay) to facilitate selection decisions and inspire queuing discipline policies for work items? • Are you understanding customer expectations and how they cluster
into similar groups? Are you probing for possible new classes of service to improve the flow of value to the customer?
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Classes of Service – for example based on Cost of Delay Profiles
• Expedite: Very high urgency – no end point in sight • Fixed Date: One off impact on fixed date• Standard: Regular urgency; may tail off as value is lost• Intangible: Low urgency, may be followed by high urgency
Intangible
Delay (time)
Dela
y Co
st /
Impa
ct ($
)Standard
Delay (time)
Dela
y Co
st /
Impa
ct ($
)Fixed Date
Delay (time)
Dela
y Co
st /
Impa
ct ($
)Expedite
Delay (time)
Dela
y C
ost /
Impa
ct ($
)
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4.2 Is there capacity in the system to hedge risks from different sources of demand and different types of work?
• For example, can resources be diverted to priority tasks during high-demand periods?
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4.3 Are interdependent services aggregated and coordinated1. Chains of
Services2. Hierarchies of
Services3. Networks of
Services
…to increase system liquidity and enable system levelling in light of risks and variability?
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Demand-focused approaches to variability• WiP Limits
• Block entry• Complete work when limits reduced (or “de-select” items in progress)
• Classes of Service • E.g. allow high cost of delay items to overtake other WiP
• Constant WiP (CONWIP)• Push new item into system when item completed, or• Replenish to expected capacity on a fixed cadence (e.g. Scrum)
• Purge WiP• Don’t take on any new work until all WiP completed (e.g. end of a
project)
• Redefine End Point• Declare victory before “backlog” completed
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Supply-focused approaches to variability• Resource pulling
• Move resources to service requests with a higher cost of delay
• Ensure some “intangible” work is always selected innormal periods
• Don’t full load services with planned work
• T-shaped people• Flexibility provided by cross-training and cross-assigning
• Skill overlap• Identify skill shortages• Never assign “the only person who can do this” on their own
• Flexible experts• Never assign the most flexible resources at all!• Use them as coaches, reviewers, improvement thinkers… and only very
occasionally “firefighters”
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Summary: The Litmus Test – 4 questions…1. Has management behaviour changed
to enable Kanban? 2. Has the customer interface changed,
in line with Kanban? 3. Has the customer contract changed,
informed by Kanban? 4. Has the service delivery business model changed
to exploit Kanban?Don’t STOP there!
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ReferencesAnderson, David J. 2010. Kanban: Successful Evolutionary Change for Your Technology Business. United States: Blue Hole Press.Anderson, David J. 2012. "Thoughts on the value of liquidity as a metric." November 27. LKU Blog. http://www.djaa.com/thoughts-value-liquidity-metricAnderson, David J. 2014. "Kanban litmus test." July 23. LKU Blog. http://www.djaa.com/kanban-litmus-test Anderson, David J. 2015. Enterprise services planning scaling the benefits of Kanban. http://2015.agileworld.de/system/files/vortrag/15-06-29%20EnterpriseServicesPlanning_david%20 anderson_0.pdfAnderson, David J., and Andy Carmichael. 2016. Essential Kanban Condensed. United States: Lean Kanban University. http://leankanban.com/guide (now available in French)
Maccherone, Larry. 2015. "Probabilistic Decision Making." November 6. SlideShare. http://www.slideshare.net/.../larry-maccherone-probabilistic-decision-makingMatts, Chris. 2013. "Introducing staff liquidity (1 of n)." November 24.IT Risk Manager. https://theitriskmanager.wordpress.com/ 2013/11/24/introducing-staff-liquidity-1-of-n/ (March 1, 2016).Reinertsen, Donald G. 2009. The principles of product development flow: second generation lean product development. Redondo Beach, CA: Celeritas Publishing.Wikipedia. Kanban board. https://en.wikipedia.org/wiki/Kanban_board
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Questions and Discussion
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