Lean, Agile, Innovation… All buzzwords? Pat Boens - Lato Sensu Management Pag e 1.

Lean, Agile, Innovation…All buzzwords?

Pat Boens - Lato Sensu Management

A bit of history

Scientific Management (mass production): Frederick Winslow Taylor

Mass Production in Automobile: Henry Ford (Ford Motor Company)

TPS (Lean Manufacturing has developed from that): Toyota became in 2008 number #1 of the sector

Lean: Setting the Scene

Eliminate variations in the production process, “3M” or MUs:

Muda (wastes)

Muri (unreasonable)

Mura (irregularity; lack of uniformity)

Eliminate wastes (“muda”) is the prime motto

Chasing Wastes

Simply put, there are 7 wastes that Lean wants to hunt. With time, people have added new ones

Personally, I use a picture of 8 wastes that I have abbreviated as DOMINO-TW:

Seiri: eliminate obstacles byremoving unnecessary items

Seiton: make sureeverything is at its place

Seiso: clean and inspect

Seiketsu: standardizethe practices

Shitsuke: sustainthe practices

5S

Continuously (shitsuke)

Continuous Improvement: Kaizen

Little by little (baby steps)

Better if sustained from the basis with support of management

Pull System

Teams pull their work; there is no use to push it

Teams work with small batches (as opposed to mass production) (see https://www.youtube.com/watch?v=Dr67i5SdXiM)

Production flow is limited by capacity; strict application of WIP (Work In Progress); birth of JIT

Value Stream & Systems Thinking

Lean takes care of the entire Value Stream

No local optimization that hampers global optimization

Let People Find Solutions

At the core, Toyota Kata:

Set a vision

Grasp current condition

Establish target condition

See https://www.youtube.com/watch?v=rrkrvAUbU9Y

Agility in Software Development

In the software industry, the Agile methods were officially born in 2001, even though they were around already many years before

They exist in opposition to more traditional methods of software development, called the waterfall methods, born after their father, Winston Royce, published a paper about large Software Engineering efforts back in 1970.


At the core of the Agile methods we find different flux of thoughts: working with small teams having an end-to-end perspective (vision), simplify to the max (simplicity is the art of maximizing the work not done), working in small iterations in which the product gets built little by little, releasing software as soon as possible as to be able to get feedback of the field asap, refining the product based on the feedback that was collected, improving continuously little by little, ...

Wait a minute! Isn’t that Lean?


Yes, Agility is “Lean” applied to “Software development”

People with in small batches (iterations or sprints)

People are self-organized (let them find solutions by themselves)

People reflect regularly upon how they’re doing via retrospectives (Kaizen)

People do whatever is the simplest thing to build (chasing all kind of wastes)

People work with visible backlogs (kanban) limiting what the work in progress (WIP limits)

People working in all transparency

…

Software Development in Motion

Many major companies tend to work more and more the Agile Way (understand Lean)

They simply copy some giants such as Microsoft, Apple, Google, Facebook, Netflix, Amazon, …

Banks have know understood they are IT companies, and therefore are copying more and more the giants from above

… BUT THEY ALL NEED TO INNOVATE DESPERATELY … and that’s the birth of Lean Startup

Lean Startup: Innovation Method

Scientific method based on learning:

Accept that Business Plans are full of hypotheses

Accept that each hypothesis must be put to test

Check asap (one by one – not too many at once)

Build the simplest thing that can possibly (like Science does in Labs) (MVP – Minimum Viable Product)

Persevere or Pivot

Do this in an iterative way

Lean Startup: Cone of Uncertainty

Full of hypotheses? Accept the Cone of Uncertainty

A startup is an organization designed to create new products and services under conditions of extreme uncertainty.

Lean Startup: BML

Build, Measure, Learn Iterations … pretty much Deming

Lean Startup: MVP

Simplest Product that’s viable…

Lean Startup: Innovation Method

Usual high-level questions of Lean Startup

Do consumers recognize that they have the problem you are trying to solve?

If there was a solution, would they buy it?

Would they buy it from you?

Can you build a solution for that problem?

This poses the two most fundamental questions:

Value hypothesis

Growth hypothesis

Reading Corner

Eric Ries: The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses

Mike Rother: Toyota Kata: Managing People for Improvement, Adaptiveness and Superior Results: Managing People for Improvement, Adaptiveness and Superior

Jez Humble, Joanne Molesky, & Barry O'Reilly: Lean Enterprise: How High Performance Organizations Innovate at Scale

Henrik Kniberg: Lean from the Trenches: Managing Large-Scale Projects with Kanban

Reading Corner

Daniel H. Pink: Drive: The Surprising Truth About What Motivates Us

James Womack & Daniel Jones: Lean Thinking: Banish Waste and Create Wealth in Your Corporation

David J Anderson: Kanban

Jim Collins: Good to Great: Why Some Companies Make the Leap...And Others Don't

Lean, Agile, Innovation… All buzzwords? Pat Boens - Lato Sensu Management Pag e 1.

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