Benefits of Lean IT and it's importance. The world is a merry-go-round and you can't get off. Customers are becoming more demanding, markets are becoming more customised, and product life-cycles that are getting shorter are just a few of the reasons why Lean could be important to you. As the demands on our processes increase they evolve and adapt accordingly which often results in processes that end up inefficient and wasteful. Lean is about challenging the way things are done and opening our eyes to that waste and inefficiency. The environment in which an organization operates will continue to change; Lean can help organizations meet the challenge. Lean can provide an organization with a clear competitive advantage since the correct application of the Lean principles will realise substantial benefits that include: - Greater productivity - Greater throughput - Improved quality - Reduced cycle times - Less fire-fighting - Smoother operation - Reduced operating costs CTE Solutions' preferred Lean IT training provider Snowdon Consulting gave this amazing presentation in our Toronto Office on April 25th, 2014. Click the below link to get a copy of the presentation used during this seminar. http://blog.ctesolutions.com/management/enterprise-architecture/understanding-lean-it/

1. Page
1
SnowdonConsulting
Welcome to the Lean IT
Bootcamp
April
25,
2014

2. Page
2
SnowdonConsulting
Getting to Know You….
Your
Role?
• IT
Technical
Resources
• Developer,
• Network/Systems/Database
Administrator,
• Enterprise/Technical/Solution
Architect,
• Network/Systems/QA/Test
Engineer,
• Etc...
• IT
Project
Resources
• PM/PMO
• Business
Analyst
• Etc
• IT
Management
Resources
• IT
Manager/Sr.
Mgr
• IT
Leadership
(Director
or
higher)
• Etc..
• Other
Roles
Your
Knowledge
of
Lean/Six
Sigma
• Heard
of
It;
• Worked
With
It;
• CertiYied
GB
or
BB

3. Page
3
SnowdonConsulting
What I want to get out of this seminar

4. Page
4
SnowdonConsulting
Agenda
• What
is
Lean?
• Why
Lean
IT?
• Learning
to
See
Waste
• Linking
to
ITIL
• Q&A

5. Page
5
SnowdonConsulting
Why
does
the
IT
Dept
exist?

6. Page
6
SnowdonConsulting
Lean Thinking
• Based
on
the
Toyota
Production
System,
created
by
Taichi
Ohno
• A
principle
driven,
tool
based
philosophy
that
focuses
on
eliminating
waste
so
that
all
activities/steps
add
value
from
the
customer’s
perspective.
• Popularized
in
North
America
and
Europe
by
the
book
Lean
Thinking
Our
Session
today
is
about
Learning
to
See
waste…
and
recognizing
how
it
affects
IT
Services

7. Page
7
SnowdonConsulting
Goal of a Lean Organization
Create
the
ability
to:
1. Deliver
the
exact
product
/
service
2. In
the
exact
quantity
3. With
the
exact
quality
that
the
customer
needs
4. Exactly
when
they
need
it

8. Page
8
SnowdonConsulting
Lean Management Thinking
1. Base
you
management
decisions
on
a
long-­‐term
philosophy,
even
at
the
expense
of
short
term
Yinancial
goals
2. Create
continuous
process
Ylow
to
bring
problems
to
the
surface
3. Use
‘pull’
systems
to
avoid
overproduction
4. Level
out
the
workload
5. Build
a
culture
of
stopping
to
Yix
problems,
to
get
quality
right
the
Yirst
time

9. Page
9
SnowdonConsulting
6. Standardized
tasks
are
the
foundation
of
continuous
improvement
and
employee
empowerment
7. Use
visual
control
so
no
problems
are
hidden
8. Use
only
reliable,
thoroughly
tested
technology
that
serves
your
people
and
processes
9. Grow
your
leaders
who
thoroughly
understand
the
work,
live
the
philosophy
and
teach
it
to
others
Lean Management Thinking

10. Page
10
SnowdonConsulting
10. Develop
exceptional
people
and
teams
who
follow
your
company’s
philosophy
11. Respect
your
extended
network
of
partners
and
suppliers
by
challenging
them
and
helping
them
to
improve
12. Go
and
see
for
yourself
to
thoroughly
understand
the
situation
13. Make
decisions
slowly
by
consensus,
thoroughly
considering
all
options;
implement
decisions
rapidly
14. Become
a
learning
organization
through
relentless
reYlection
Lean Management Thinking

11. Page
11
SnowdonConsulting
Five Lean Principles
The
continuous
movement
of
products,
services
and
information
from
end
to
end
through
the
process
3
Establish
Flow
The
complete
elimination
of
waste
so
all
activities
create
value
for
the
customer
5
Work
to
Perfection
DeAine
value
in
from
the
customers
perspective
and
express
value
in
terms
of
a
speciAic
product
1
Specify
Value
2
Map
the
Value
Stream
Map
all
of
the
steps…value
added
&
non-­‐value
added…
that
bring
a
product
of
service
to
the
customer
Nothing
is
done
by
the
upstream
process
until
the
downstream
customer
signals
the
need
4
Implement
Pull

12. Page
12
SnowdonConsulting
Why Lean IT? – The Role of IT is Changing!
• Mobile,
cloud
and
pervasive
computing
technologies
will
fundamentally
shift
the
expectations
and
roles
of
IT
in
the
enterprise
• The
role
of
IT
will
move
from
one
of
managing
physical
assets
to
that
of
being
a
broker
of
IT
services
from
inside
and
outside
to
satisfy
business
needs

13. Page
13
SnowdonConsulting
Why Lean IT? – To Streamline IT Service
Delivery and Deliver Value to the Customer
Faster

14. Page
14
SnowdonConsulting
Why Lean IT? – Free Up Time to Focus More
on Innovation
• Application,
server
and
storage
silos
and
complexity
have
pushed
most
organizations
into
an
IT
spending
pattern
where
the
bulk
of
their
budget
is
required
to
‘keep
the
lights
on’
• Innovation
of
services
is
being
sacriYiced
to
keep
current
services
operational
• There
is
a
gap
between
what
IT
can
deliver
and
what
the
organization
needs!
New
Innovations,
30%
Ongoing
IT
Operations,
70%
Typical
Spending
Pattern
in
an
IT
Dept
IT
Sprawl
creates
complexity
which
is
expensive
and
slows
the
delivery
of
value
to
the
customer

15. Page
15
SnowdonConsulting
What does Lean IT really mean?
Lean
IT
means:
• Reduce
Steps
• Reduce
Errors
• Reduce
Complexity
• Increase
IT
Agility
• Free
Up
the
Capacity
of
IT
to
focus
on
Innovation
Which
leads
to:
• Increased
Ratio
of
Planned
to
Unplanned
Work
• Increased
Mean
Time
Between
Failure
(MTBF)
• Reduced
Mean
Time
To
Release
(MTTR)
• Reduced
Mean
Time
To
Resolve
(MTTR)
• Increased
Availability
• Increased
%
of
Successful
Changes
• Increased
Server
to
Sys
Admin
Ratio
• Increased
%
Effort
Deployed
Early
in
Change-­‐Release
Cycle
• Improved
Ratio
of
Ongoing
Support
Costs
to
Innovation
Costs
• Improved
employee
engagement
and
productivity

16. Page
16
SnowdonConsulting
What Lean IT is Not
• A
replacement
for
proven
engineering,
software
design
and
related
technical
principles
and
practices
• Bad
code
is
still
bad
code
• Poor
engineering
design
is
still
poor
engineering
design
• A
substitute
for
leadership
and
people
management
activities
• Leaders
still
need
to
lead,
set
vision
and
align
people/resources
around
important
goals
• Management
activities
still
need
to
be
focused
on
efYicient
use
of
resources/people
to
achieve
goals
•
A
substitute
for
a
technology
strategy
and
vision
for
the
organization

17. Page
17
SnowdonConsulting
Consider
the
following:
You
are
a
Green
Belt
touring
a
Service
Desk.
They
had
done
a
lot
of
work
to
‘tune’
the
process.
The
place
is
humming
with
activity
as
you
tour
the
Service
Desk,
your
guide
proudly
shows
you
the
team
in
action.
Turning
to
you
he
exclaims.
“Six
minutes
to
resolve
a
ticket.
Can
you
believe
it?!?
How
could
you
ever
improve
a
process
running
as
smoothly
as
this!”
Scenario

18. Page
18
SnowdonConsulting
How
would
you
respond
to
the
the
guide?

19. Page
19
SnowdonConsulting
Lean Definitions
1. Value
Added
• Value
is
a
product
or
service
that
the
customer
is
willing
to
pay
for
e.g..
Processing
a
loan,
printing
cheques
etc.
2. Non
Value
Added
• An
activity
that
the
customer
would
be
unwilling
to
pay
for
in
isolation
eg.
Waiting
times,
checking
work,
correcting
errors
3. Value
Enabling
or
Business
Value
Added
• An
activity
that
is
required
to
operate
the
business
but
the
customer
is
unwilling
to
pay
for,
eg.,
budget
tracking,
internal
controls.

20. Page
20
SnowdonConsulting
Value Added Ratio (VAR)
• A
key
ratio
that
you
should
calculate
is
the
Value
Added
Ratio
(VAR)
• Most
processes
can
quickly
achieve
a
50%
reduction
in
lead
time
by
focusing
on
waste
elimination
VAR
(%)
=
Total
Time
of
VA
Activity
Total
Process
Cycle
Time

21. Page
21
SnowdonConsulting
Let’s
revisit
the
scenario
at
the
Service
Desk.
You
observe
the
following:
• There
is
a
queue
full
of
tickets
ready
to
be
worked
on
• It
took
the
Service
Desk
Technical
Support
person
2
minutes
to
retrieve
the
ticket
from
the
queue
and
get
ready
to
work
on
it
• The
actual
troubleshooting
operation
took
2
minutes
• Once
the
ticket
was
completed
it
was
moved
be
moved
to
another
queue
until
it
went
to
the
next
step
in
the
process.
This
took
2
minutes.
Scenario

22. Page
22
SnowdonConsulting
Draw
a
simple
picture
of
this
process.
Calculate
the
VAR
Any
insights?

23. Page
23
SnowdonConsulting
You
are
looking
at
the
improve
the
mean
time
to
release.
You
have
been
told
that
it
takes
‘way
too
long’.
You
have
measured
the
following
processes
and
collected
the
following
times:
Requirements
Gathering:
4
weeks
Development:
12
weeks
ConYiguration:
1
week
QA:
6
weeks
Release:
1
day
Scenario
What
will
you
Yix
to
make
this
process
go
faster?

24. Page
24
SnowdonConsulting
Defining Value and Waste
Time
Value
Added
Work
Non-­‐Value
Added
Work
Time
Would
you
believe
…
Typical
non-­‐value
to
value-­‐added
ratio
is
of
the
order
of
99:1
You
need
to
consider
the
entire
value
stream
After
Before
ReleaseQAConfigDevReq’s

25. Page
25
SnowdonConsulting
Let’s Take 10!
April
24,
2014

26. Page
26
SnowdonConsulting
• Transport
• Inventory
• Motion
• Waiting
• Over-­‐production
• Over-­‐processing
• Defects/Inspection
People’s
Talents
Defining Waste
Do
you
know
TIM
WOOD?

27. Page
27
SnowdonConsulting
Transportation and Conveyance
• Unnecessary
movement
of
materials,
or
information;
only
convey
materials
and
information
when
and
where
they
are
needed
• Consumes
valuable
resources
and
takes
time
• Safety
concerns
and
increases
damage
• Capital
expenditures

28. Page
28
SnowdonConsulting
Transportation – Some IT Examples
• Walking
to/from
printer,
copier,
fax
machine,
Yiling
cabinet,
archival
storage
• Providing
a
spreadsheet
or
report
to
more
people
than
actually
need
it
• Needing
to
split
email
attachments
into
smaller
segments
due
to
Yile
size
limitations
• Unnecessary
movements
of
electronic
information
• Sending
attachments
rather
than
links
to
documents
• On-­‐site
visits
to
resolve
system
issues
that
could
be
resolved
with
remote
monitoring
and
correction
•
Using
multiple
emails
for
dialogue
when
a
conference
call
or
face-­‐to-­‐face
meeting
is
more
effective

29. Page
29
SnowdonConsulting
Excess Inventory
• Inventory
that
is
not
needed,
is
wasted
(includes
raw
materials,
work
in
progress
and
Yinished
products
• Increases
lead
time,
overhead
and
requires
space
• Masks
poor
processes,
impacts
cash
Ylow
• Moving
inventory
increases
chance
of
damage

30. Page
30
SnowdonConsulting
Excess Inventory – Some IT Examples
• Any
Backlog,
anything
in
a
Queue!
• In
Inboxes
• Old/obsolete
Yiles
• Projects
that
are
not
being
considered,
but
still
on
the
project
list
• Partially
completed
development
work
• Uncoded
documentation
• Unsynchronized
code
• Untested
code
• Undocumented
code
• Undeployed
code
• Multiple
software
code
objects
that
perform
the
same
function
• Unused
software
licenses

31. Page
31
SnowdonConsulting
• Any
motion
that
does
not
add
value
• Stretching,
bending,
picking
up,
moving
can
ultimately
impact
quality
and
productivity
• Relates
to
the
physical
layout
of
the
workspace
and
ergonomics.
Unnecessary Motion

32. Page
32
SnowdonConsulting
• Poor
user
interface
or
workYlow
design
that
causes
unnecessary
keystrokes,
mouse
clicks
or
navigation
steps
• Searching
for
Yiles
at
your
desk
(electronic
of
physical)
Unnecessary Motion – Some IT Examples

33. Page
33
SnowdonConsulting
Waiting
• Idle
time
between
operations,
is
100%
waste
and
can
be
attacked
simply
and
effectively
by
mapping
out
a
process
• Adds
to
cycle
time
• Consumes
valuable
resources
• Increases
work
in
process
• Slows
response
to
customer

34. Page
34
SnowdonConsulting
Waiting – Some IT Examples
• Slow
application
response
• Delays
between
coding
and
testing
• Overnight
batch
processing
of
data
• Waiting
for
a
specialist
who
is
currently
working
on
another
task/project
• Waiting
for
inputs
from
team
members
• Delays
in
receiving,
transmitting
and
storing
information

35. Page
35
SnowdonConsulting
Over-Production
• Performing
any
task
without
considering
if
it
is
needed
• Producing
more,
earlier
or
faster
than
is
needed
by
the
next
process
or
customer
• Consumes
valuable
resources
not
immediately
needed,
builds
unnecessary
inventory
or
hides
process
problems
(bad
quality,
scheduling
&
delivery)

36. Page
36
SnowdonConsulting
Over-Production – Some IT Examples
• Too
many
or
ineffective
meetings!
• Unnecessary
or
early
work
performed
due
to
unclear
priorities
• Running
reports
that
no-­‐one
reads
• Coding
functionality
that
is
not
utilized
• Unnecessary
delivery
of
low-­‐value
applications
and
services
• Running
more
tests
than
are
required
• Capturing/storing
more
data
than
is
required

37. Page
37
SnowdonConsulting
Over-Processing
• Excessive
levels
of
approval,
over-­‐engineering,
adding
too
many
unnecessary
features
• Consumes
valuable
resources
• Creates
delay
• Opportunity
for
more
defects

38. Page
38
SnowdonConsulting
Over-Processing – Some IT Examples
• Over
design
of
Software
apps
• Over
automation
of
processes
• Premature
technology
intervention
to
improve
a
process
• Developing
complex
solutions
to
simple
or
non-­‐recurring
problems
• Overly
complex
governance,
funding,
prioritization
and
control
processes

39. Page
39
SnowdonConsulting
Defects
• Any
aspect
of
a
product
or
service
which
does
not
meet
the
customer’s
requirements,
leads
to
rework,
delayed
output,
unhappy
customers,
or
even
lost
customers
• Creating
and
correcting
defects
robs
resources,
“chokes”
Ylow,
and
must
be
minimized
or
eliminated

40. Page
40
SnowdonConsulting
Defects – Some IT Examples
• Application
bugs
• Design
Ylaws
• Data
inaccuracies/
inconsistencies
• Unplanned
downtime
• Any
hand-­‐off
between
teams
that
fails
to
meet
the
deYined
standard
• Missing
info,
incomplete
info,
inaccurate
info
• Outside
of
SLA/OLA

41. Page
41
SnowdonConsulting
Reflective Thinking
What
are
some
of
the
wastes
in
my
process?
How
often
do
they
occur?
Do
people
realize
they
are
waste?
Which
ones
would
be
easy
to
Yix?
What’s
my
guess
as
to
the
VAR
in
my
process?

42. Page
42
SnowdonConsulting
Final Thoughts on Waste
• Waste
is
present
in
every
process.
Even
processes
that
seem
‘efYicient’.
• Waste
is
not
‘seen’
in
a
meeting
room,
or
in
your
cubicle.
It
is
observed,
by
going
out
into
the
workplace,
to
the
places
where
the
teams
are
actually
doing
work.
The
place
we
call
the
Gemba.
• To
Yind
waste,
you
must
look
for
it.
Gemba
walks
are
a
critical
part
of
improving
your
value
stream.
The
Gemba
walk
is
not
a
social
visit,
although
there
will
be
many
social
interactions.
• Your
Gemba
walks
are
purposeful.
It
is
to
engage
with
the
teams
and
to
look
for
waste.
Once
you
learn
to
see
it,
you
will
see
it
everywhere.
• Prioritize
your
waste
reduction
efforts.
Not
all
‘waste’
contributes
equally
to
the
blockages
in
Ylow.
Focus
on
the
‘big
hitters’
and
slowly
but
surely,
work
on
improving
them
–
PDCA!

43. Page
43
SnowdonConsulting
ITIL Lifecycle Processes

44. Page
44
SnowdonConsulting
IMHO …. Critical ITIL Processes
Change
Management
• Purpose:
Ensure
that
changes
are
recorded,
evaluated,
authorized,
prioritized,
planned,
tested,
implemented,
documented
in
a
controlled
manner
Incident
Management
• Purpose:
Restore
normal
service
as
quickly
as
possible,
and
to
minimize
the
adverse
impact
on
business
operations
Problem
Management
• Purpose:
to
prevent
problems
and
resulting
incidents
from
happening,
to
eliminate
recurring
incidents
and
to
minimize
the
impact
of
incidents
that
cannot
be
prevented
How
do
these
processes
relate?
Why
are
they
vitally
important
to
the
CIO?
How
does
Lean
connect
into
all
this?

45. Page
45
SnowdonConsulting
Examples of Lean IT Projects
• Reducing
the
lead
time
to
create
certain
types
of
reports
• Reducing
the
%
of
servers
that
go
‘dark’
on
key
asset
management
reports
• Improving
the
Yirst
call
close
rates
at
the
Service
Desk
• Increasing
the
reliability
and
automation
of
test
cases
to
reduce
MTTR
• Reducing
the
number
of
incidents
that
are
requiring
key
resources
to
resolve
Focus
on
your
customers
Yirst,
then
analyze
how
your
people
and
processes
deliver
the
service.
Find
the
waste
and
eliminate
it
with
technology.

46. Page
46
SnowdonConsulting
Reflective Thinking
In
reYlecting
on
everything
that
we’ve
covered,
which
one
thing
do
I
want
to
discuss
with
my
manager
tomorrow?
Why
did
I
choose
this
one
thing?

47. Page
47
SnowdonConsulting
Lean IT - Summary
Lean
IT
is
a
way
of
thinking
and
doing
that:
• Is
complimentary
to
existing
IT
methodologies
and
frameworks
• Augments
the
skills
of
the
technical
teams
to
design,
build,
test
and
deploy
IT
Services
with
greater
efYiciency
and
effectiveness
• Builds
upon
the
strengths
of
the
leaders
and
managers
• Offers
a
speciYic
lens
to
guide
strategy
and
management
activities
• Empowers
teams
and
individuals
to
solve
problems,
and
gives
them
the
tools
to
do
so

48. Page
48
SnowdonConsulting
Looking Ahead
Lean
IT
–
Yellow
Belt
Training
&
CertiYication
(3
Days)
• September,
2014,
Toronto
• Winter
2015,
Toronto
April
24,
2014

49. Page
49
SnowdonConsulting
Thank You!!
Good
luck
with
your
Lean
IT
journey.

50. Page
50
SnowdonConsulting
Paul Snowdon, BA, BASc, MBB
Paul
is
a
thought
leader,
a
lecturer,
a
researcher
and
a
master
practitioner
who
specializes
in
making
teams
and
processes
more
efYicient,
effective
and
economical.
Paul’s
professional
career
includes
engineering
roles
at
General
Electric,
consulting
roles
with
PricewaterhouseCoopers
and
over
the
past
seven
years
he
has
been
working
and
consulting
in
the
IT
industry
on
a
variety
of
topics
including
post
merger
integration,
sales
force
enablement,
marketing
operations,
NPI
and
GTM
strategy
and
practices,
Lean
IT,
PMO
maturity
and
Lean
Six
Sigma
implementation
to
name
a
few.
Paul
is
a
Lean
Six
Sigma
Master
Black
Belt
who
has
led
enterprise-­‐wide
initiatives
in
manufacturing,
transactional
and
service
industries.
He
is
a
recognized
speaker,
author
and
instructor
of
Lean
Six
Sigma
process
re-­‐engineering
principles
and
is
the
LSS
Program
Leader
at
the
University
of
Toronto,
School
of
Continuing
Studies.
Paul
has
trained
and
coached
thousands
of
‘belts’
and
is
a
Yirm
believer
in
the
power
of
people
to
solve
problems.
Paul
holds
undergraduate
degrees
in
History
and
Chemical
Engineering,
and
is
currently
pursuing
an
Doctorate
in
Business
Administration,
with
a
focus
on
Coaching
and
Leadership
practices
in
IT
Yirms.

51. Page
51
SnowdonConsulting
April
24,
2014
SnowdonConsulting
Paul Snowdon BA, BASc, Master Black Belt
Email: Paul@snowdonconsulting.ca
www.snowdonconsulting.ca
Direct: 416.453.4079