What to expect choosing KanBan as a development approach? What are the risks, what works and what doesn't when you are in the position of external supplier. Experiences and lessons learned from real life projects executed at Agmis that every manager should take into account. What should be discussed and cleared up among the customer and supplier before the project begins. What customer should ask about their suppliers and vice versa.

1. Lessons Learned using KanBan
Outsourced Development Services Supplier Point of View
Saulius Kaukėnas
Agile Tour Vilnius, 10/09/14

2. Just-in-time
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3. JIT Principles
„The philosophy of JIT is simple: the storage of
unused inventory is a waste of resources.“ –
Wikipedia.
 JIT = minimal inventory. In IT - minimal possible
number of features being developed in parallel.
 JIT = waste elimination. Waste = production of
unneded products, rework, waiting time. In IT -
unneeded features, change requests for
features, waiting time.
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4. 1997. Rock Solid Documentation
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5. Trying to Follow RUP
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6. …and XP (Agile)
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7. What about Outsourcing?
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8. KanBan. 1st Try
 Fits for support projects
 Stumbled on larger development projects
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9. 1st Try Retrospective
 In Agile everyone should be Agile:
 Your customer
 Your suppliers
 3rd parties involved
 Everyone becomes part of the process
 You can be Agile without other parties, or
you need to be Agile WITH other parties
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10. Agile = Assembly Line
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11. JIT Supply Chain - It’s All Connected
 Sometimes it is not even obvious how tight
the JIT supply chain dependency is.
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12. Agile in Outsourcing
 Equivalent to JIT supply chain.
 Delays should be avoided at all costs.
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13. Making JIT Supply Chain Work
1. Long term relationships.
2. Joint process certification.
3. Co-locate facilities to reduce transport. Minimize
feedback loops, keep everyone involved.
4. Stabilize delivery schedules. Discipline.
5. More inventory. Projects from other customers in the
pipeline? Have your customers wait in the line 
6. Multiple sourcing.
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14. 15 Smells for Agile Process
Refactoring
 Guidelines for reducing delays (#1-#7):
ensure optimal flow of joint assembly line.
 Guidelines for internal affairs (#8-#12): do
your homework. Continuously.
 Guidelines for scope management (#13-#14):
fixed price and warranty.
 Guideline for sales (#15): have customers
waiting in line.
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15. Ensure optimal flow of joint
assembly line.
Guidelines for reducing delays (#1-#7)

16. #1: (Web Services) Integration
 Illusion: Web services cannot be frozen,
mocked up and so on as then development
doesn‘t remain agile per se.
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17. #1: Web Services Integration
 Hints:
 Make sure web services development is done in
iterations, in parallel.
 Ensure direct developer communication on both
ends.
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18. #2: You’re Subcontractor
 What about feedback from the end customer?
 Is he aware abou tyou?
 Hints:
 Direct customer communications to get the feedback in
time.
 No “Chinese whispers”.
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19. #3: Third Parties
 Another supplier or subcontractor.
 May turn up only when the contract is inked.
 Hint: Test him, ensure that you are both
talking Agile.
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20. #4: Customer‘s People
 Are here „to help you“ or lower the cost.
 Hint:
 Very risky. Avoid if you can.
 Ensure control and process adherence.
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21. #5: Customer Staff’s Priorities
 „Higher priority“ tasks.
 “Committee cannot decide”.
 Hints:
 Ensure that your customer understands that
delays = stop of flow = higher cost.
 Encourage culture and accountability of the
supplier.
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22. #6: Focus on delivery terms and price
 Or even worse, solely on price.
 Hints:
 Focus on process.
 Agile contract negotiation (I&I).
 Focus on how both of you ensure flow via
supply chain to assembly line.
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23. #7: Customer Wants Agile Supplier
 Suspicious if too emphasized.
 May hear surprisingly interesting versions.
 KanBan <> Scrum or TDD.
 Agile <> Unit tests.
 Hint: Test how Agile is customer in his
kitchen.
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24. Continuously do your
homework.
Guidelines for internal affairs (#8-#12)

25. #8: Separate KanBans
 Might be easier for project but not for the
company.
 Hints:
 Single KanBan works better.
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26. #9: Heroes
 Some people are simply not fit for the
teamwork.
 Hint:
 The „heroes“ make perfect consultants.
 It‘s people business, know everyone in your
team.
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27. #10: High Expectations
 Illusions:
 Easy Win is Near
 Most Agile are
simple.
 Hints:
 Set expectations
right.
 It’s a continuous
process.
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28. #11: Project Manager’s Time Saved!
 Teams started to manage themselves!!!
 At a price.
 Hints: Guess who is responsible for..
 Process following by all parties.
 Process improvement.
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29. #12: Just Implemented Agile!
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30. #12: Just Implemented Agile!
 “if it works, don't touch it“, right?
 Project nature may change
 Hints:
 Agile implementation is a process: continuous
and incremental.
 Separate tools might not be enough.
 Where is the next waste?
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31. Manage Scope.

32. #13: Fixed Price
 Accolades at the beginning of the day..
 “Agile doesn't mean that you don't have to
complete ALL the features FOR THE SAME
PRICE”… at the end of the day.
 Hint: Avoid it, unless contract allows for
scope flexibility.
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33. #14: Warranty Period?
 Can customer be sure that everything is error
free when closing the sprint?
 Hints:
 Always discuss it before project start.
 Maintenance agreement (3 mo to 6 mo – 50%,
up to 1 year – 25%, etc.).
 Or, factor that into hourly rate.
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34. #15: Customers Waiting in Line
 Who wouldn‘t want that, huh?
 Hint: Think of what could make customers
want it?
 Quick Ramp-up time.
 A discount?
 Possibility to work with you?
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35. Tested At Agmis
 KanBan.
 Team building.
 Internal experience sharing sessions. Keeps
everyone involved into continuous process
improvement.
 Code reviews. Probably the most efficient form
of inside training.
 Close-outs (Retrospectives).
 Shorter iterations (or, longer iterations DIDN‘T
work). Aim at having them 3 weeks or shorter.
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36. FailBox
 Version 2.0 delivered
constant cash flow.
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37. Agile in Outsourcing
Parameter Internal, Product Agile Agile for Outsourcing
Complexity 1 2-3
Implementation Continuous Continuous
Risks Delays, Customer Priorities
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Customer Agility, Supplier Agility
Warranty Part of the process Needs to be discussed
Contract focus (if any) Quality, TTM Process, quality, TTM
PM focus Process following and
improvement
Process following and
improvement, external
communications
Integrations Medium risk factor High risk factor

38. Conclusions
 Agile for outsourcing IS more complex.
 Involves more risks to be managed.
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39. Questions? Comments?

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Thank You!
agmis
mpowering companies
t: +370-687 81204
europos pr. 121,
LT-46339, kaunas, lithuania
e-mail: info@agmis.lt
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