Colors in Projects 2013 Bucharest - Kanban Briefly Explained

Kanban
Successful Evolutionary Change
for your Technology Business

What is Kanban?
How do you implement it?
What are the benefits?
Color in Projects
Bucharest, March 2013

dja@djaa.com, @djaa_dja

A story to get us started


Microsoft 2004 - the XIT Story
Change requests
Product
Managers

PTCs
Requests for estimates of future
work are often ‚invisible‛, have an
Testers
Developers
unpredictable arrival rate & are
given priority.
Discard rate of estimated future &
Emergency work is unplanned User Acceptance
work ishighest priority. Arrival rate
receives often 50% or greater!
& volume are unpredictable.
PTCs? What did that acronym mean?
Items that did not require coding!
Effect is hugely disruptive!
Why were they treated as
emergencies?

Prioritized
Backlog

Waiting for
Test

Capability & Customer Satisfaction
What was the observed capability of
PTCs
this department? How was customer
satisfaction?
Product
Testers
Developers
Managers delivery was 0%. There was a 100%
On-time
chance of interruption to estimate future
work.
User Acceptance
Planning & prioritization were conducted
monthly. Fastest response from receipt to
deployment was around 6 weeks, average
5 months, slow 1 year plus.
But everything had a business case and was
prioritized by ROI!
Budgets were well governed but
Prioritized customer satisfaction was poor!
Waiting for
Backlog
Test

What Were the Issues?
So what issues affected the outcome?
PTCs were governance policies so
Why
disruptive?
Testers
Developers

Product
Managers
Product managers demanded fast response on
estimates to facilitate future planning and
provide fast feedback to business owners. User Acceptance
Entire backlog was planned & commitments
made early. 90% of the backlog was re-planned
each month.
Expedite policy for PTCs was folklore – no one
could explain why
So controlling the unplanned,
disruptive demand would improve
Prioritized
Waiting for
predictability!
Backlog
Test

What is a kanban system?


A Kanban Systems consists of
“kanban” signal cards in
circulation


Kanban as a solution for XIT


A virtual kanban system was chosen
Backlog

Engineering
Ready

5
Change
Requests

Pull

F F
F
F F
F
F

PTCs

G

Development

Test
Ready

Testing

UAT

3

5

3

∞

Ongoing

Done

It’s important to realize the process
for software development did not
B
Pull change. The kanban system is an
overlay on the existing process. It
G
C
Pull
changes scheduling and prioritization
only

F

D

PTCs are permitted to break the
kanban limit
*Blocked to service PTC


*

I

Deployment
Ready
∞

CRs
50

240%
improvement
in delivery
rate

The Results Backlog depleted.
Serving at rate of
demand

30

Average
Time to Resolve

10

Time (in quarters)
125

90% drop in end-toend delivery time*

75
25

* Includes queuing time prior to selection

Time (in quarters)

What is a kanban system?
(& how to implement one for knowledge
work)


Commitment is deferred
Backlog
Pool
of
Ideas

Engineering
Ready

5

Testing

UAT

3

5

3

∞

Ongoing

Done

Items in the backlog remain
optional and unprioritized

Change
Requests

Pull

F F
F
F F
F
F

Development

Test
Ready

D
G

Wish to avoid discard after commitment

PTCs

Commitment point


E

We are committing to getting
started. We are certain we want
to take delivery.

I

Deployment
Ready
∞

Discard rates are often high
Pool
of
Ideas

Engineering
Ready

5

Development

Test
Ready

Testing

UAT

3

5

3

∞

Ongoing

Done

The discard rate with XIT was 48%.
~50% is commonly observed.

Change
Requests

F F
F
F
G
Reject

Deferring commitment and
Options have value because the
avoiding interrupting
future is
Dworkersuncertain
for estimates
E
0%makes rate implies there is
discard sense when discard
no uncertainty about the future
rates are high!

PTCs

I

Discarded

I

Deployment
Ready
∞

Replenishment Frequency
Pool
of
Ideas

Engineering
Ready

5

Replenishment
Change
Requests

Pull

F F
F
F F
F
F

Development

Test
Ready

Testing

UAT

3

5

3

∞

Ongoing

Done

Frequent replenishment is
more agile.

On-demand replenishment is
D
most agile!
G

PTCs

Discarded

I

E
The frequency of system
replenishment should reflect
arrival rate of new
information and the
transaction & coordination
I
costs of holding a meeting

Deployment
Ready
∞

Delivery Frequency
Pool
of
Ideas
Change
Requests

Pull

F F
F
F F
F
F

Engineering
Ready

Development

Test
Ready

Testing

UAT

3

5

3

∞

Ongoing

Done

Frequent deployment is
more agile.

5

Deployment buffer size can
On-demand deployment
reduce as frequency of
D deliveryagile!
most increases

G

PTCs

Discarded

I

is

E
The frequency of delivery
should reflect the transaction
& coordination costs of
deployment plus costs &
toleranceI of customer to take
delivery

Deployment
Ready
∞

Delivery

Specific delivery commitment may be
deferred even later
DeployEnginPool
of
Ideas

eering
Ready

5

Development

Test
Ready

Testing

UAT

3

5

3

∞

Ongoing

Done

ment
Ready
∞

Change
Requests

Pull

F F
F
F F
F
F

D
G

E

PTCs

We are now committing to a
specific deployment and
delivery date

Discarded

*This may happen earlier if
I
circumstances demand it

I

2nd
Commitment
point*

Defining Kanban System Lead Time
Pool
of
Ideas

Engineering
Ready

5

Deployment
Ready
∞

The clockTest
starts ticking when
UAT
we
customers
Ready
Development accept the Testing
is
5
∞
3 order, not when it 3 placed!
Ongoing
Done
Until then customer orders are
merely available options

Change
Requests

Pull

F F
F
F F
F
F

D
G

E

System Lead Time

PTCs

I

Discarded

I

Lead time
ends when
the item
reaches the

first ∞
queue.

Flow the
Efficiency
Flow efficiency measures

Pool
Enginpercentage of total lead time
of spent actually adding value
eering
is
Development
Ideas
Ready

(or knowledge) versus waiting
3
Ongoing

2

Done

Testing

3

Verification Acceptance

Deployment
Ready
∞

Until then customer orders are
merely available options
Flow efficiency = Work Time

Multitasking means time spent
E in working columns is often
waiting time

PB
GY

DE

Waiting Working

MN
AB

Waiting

Working

Waiting

Lead Time
* Zsolt Fabok, Lean Agile Scotland, Sep 2012, Lean Kanban France, Oct 2012


x 100%

Lead Time

Flow efficiencies of 2% have been
F
reported*. 5% -> 15% D normal, P1
is
>
40% is good!
G

I

Done

What is the Kanban Method?


Kanban Method
A management & cultural approach to
improvement

View creative knowledge work as a set
of services
Encourages a management focus on
demand, business risks and capability of
each service to supply against that
demand

Kanban Method
Uses visualization of invisible work and
virtual kanban systems

Installs evolutionary ‚DNA‛ in your
organization
Enables adaptability to respond
successfully to changes in your business
environment


6 Practices for Evolutionary DNA
The Generalized Version
Visualize
Limit Work-in-progress
Manage Flow
Make Policies Explicit
Implement Feedback Loops
Improve Collaboratively, Evolve
Experimentally
(using models & the scientific method)


Kanban Kata


Feedback Loops
The Kanban Kata
Operations
Review

Improvement
Kata

Standup
Meeting


Standup Meeting

Disciplined conduct
and acts of leadership
lead to improvement
opportunities
Kaizen events happen
at after meetings


Improvement Kata

A mentor-mentee relationship
Usually (but not always) between a superior and a sub-ordinate
A focused discussion about system capability
Definition of target conditions
Discussion of counter-measures – actions taken to improve
capability


Operations Review

Meet monthly
Disciplined review of
demand and capability
for each kanban system
Provides system of
systems view and
understanding
Kaizen events suggested
by attendees


Scaling out across an
organization


Treat each service separately
Demand

Observed
Capability

Demand

Observed
Capability

Demand

Observed
Capability


Some systems have dependencies on
others
Demand

Observed
Capability

Demand

Observed
Capability

Demand

Observed
Capability


Organizational Improvements Emerge


Scaling Kanban
Each Kanban System is designed from
first principles around a service
provided
Scale out in a service-oriented fashion
Do not attempt to design a grand
solution at enterprise scale
The Kanban Kata are essential!
Allow a better system of systems to
emerge over time

Scaling up and down
(big projects, portfolios & personal work)


Scaling Up - Planning a big project
Device Management Ike II Cumulative Flow

2008

30
-M
ar

23
-M
ar

5x

9M
ar

2M
ar

eb
24
-F

eb

2006

17
-F

10
-F

Slope in middle
3.5x - 5x slope
at ends

16
-M
ar

240
220
200
180
160
140
120
100
80
60
40
20
0

eb

Features

Required (local average) delivery rate

During the middle 60% of the project schedule we
Time
need Throughput (velocity) to average 220 features
Inventory Started Designed Coded Complete
per month


Little’s Law

Determines
staffing level

Calculated based on
known lead time
capability & required
PlandeliveryChanging the WIP limit without
based onrate
currently observed
maintaining the staffing level
capability and current working
ratio assume process
practices. Do not represents a change to the
way of working. It is a change to
improvements.
the process and will produce a
Delivery Rateto reduce undesirable‘common
change in the observed
If changing WIP
cause’ capability new
effects (e.g. multitasking), get of the system
Lead Time
sample data (perform a spike) to
observe the new capability
From observed
capability
Target
Treat as a fixed
to
variable
achieve plan

=


WIP

Using Little’s Law

Determines
staffing level

Calculated based on
known lead time
capability & required
At this point perhaps just a little
delivery rate
black magic and experience may
be required.
If our current working

WIP = 22

practices/process exhibited an
Rounding 22 up to 25 would
average WIP of 1 item per person then
55/week 25 people organized infor 5 teams
we require conveniently provide 5
with to complete 5 items each
teams of 5 peoplea WIP limit of the
0.4 weeks
project on-time

=

From observed
capability
Target
to
achieve plan


Treat as a fixed
variable

2-tiered board
Kanban System within a Kanban System

1 lane per team


WIP in this area
should be 25
items*
*photo taken
early in the
project before it
was fully
staffed/loaded
Lead time

Median lead time
target is 2 days
Alert managers if
beyond 5 days


Scaling Down - Personal Kanban
A mutation that emerged in my office in
2008 by Jim Benson & Corey Ladas
For individuals & small teams (2 or 3 ppl)

Visualize
Limit WIP
Simple To Do-Next-Doing-Done boards


Scaling Up - Portfolio Kanban
Another mutation that emerged in 2009 in
various places such as mobile.de in Berlin
Focus on limiting projects in a portfolio

No real workflow
Visualize project completion through
physical position of ticket
Visualize business risks

Hedging Investment Risk against Product
Lifecycle in a Portfolio Kanban
Horizontal position shows percentage complete
Allocation of
personnel
Total = 100%

Complete
0%

Cash Cows
10% budget

Size of ticket indicates
scale or size of project
D

C

K

E

G
F


Complete
100%

B

A

Growth Markets
60% budget
Innovative/New
30% budget

Projects-in-progress

Color may indicate cost of
delay (or other risk)

H

Thank you!

About

David Anderson is a thought
leader in managing effective
software teams. He leads a
consulting, training and
publishing and event planning
business dedicated to
developing, promoting and
implementing sustainable
evolutionary approaches for
management of knowledge
workers.
He has 30 years experience in the high technology industry
starting with computer games in the early 1980’s. He has led
software teams delivering superior productivity and
quality using innovative agile methods at large companies
such as Sprint and Motorola.
David is the pioneer of the Kanban Method an agile and
evolutionary approach to change. His latest book,
published in June 2012, is, Lessons in Agile Management – On

the Road to Kanban.

David is a founder of the Lean-Kanban University Inc., a
business dedicated to assuring quality of training in Lean
and Kanban for knowledge workers throughout the world.


Acknowledgements

Hakan Forss of Avega Group in Stockholm has been instrumental in
defining the Kanban Kata and evangelizing its importance as part of a
Kaizen culture.
Real options & the optimal exercise point as an improvement over
‚last responsible moment‛ emerged from discussions with Chris
Matts, Olav Maassen and Julian Everett around 2009.

The inherent need for evolutionary capability that enables
organizational adaptation was inspired by the work of Dave
Snowden.

David J Anderson
& Associates, Inc.


Appendix



Fixed Date

Intangible

Standard

Expedite

Example Distributions

Colors in Projects 2013 Bucharest - Kanban Briefly Explained

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