This document provides an introduction to the Kanban method. It begins with an agenda for discussing what Kanban is, the Kanban method, applying upstream Kanban, applying Kanban to Scrum, and includes a Q&A section. The document then discusses the key aspects of the Kanban method including visualizing workflow with Kanban boards, limiting work-in-progress with WIP limits, managing flow, making policies explicit, implementing feedback loops, and improving collaboratively through experimentation. It also discusses how Kanban can help teams become more lean by eliminating waste. The document concludes by discussing how Kanban can be applied to both Scrum processes and other domains beyond software development.

1. Kanban – An Alternate Path to Enterprise
Agility
(An Introduction to the Kanban Method)
AgileCamp SV 2016

2. Agenda
 What is Kanban?
 The Kanban Method
 The value of “Upstream Kanban”
 Applying Kanban to Scrum
 Resources
 Q&A
Digite, Inc.
2

3. Introduction
Digite, Inc.
3
 Mahesh Singh
 Co-founder, SVP – Head of Marketing, Digité, Inc.
 Kanban Coaching Professional (KCP)/ AKT-in-the-
making
 @maheshsingh/ mahesh@digite.com/ +1 (408) 761-
2238
 Digite, Inc.
 SwiftKanban/ SwiftALM/ SwiftSync
 Lean/ Agile ALM/ PPM company
 125+ customers/ 750k+ users
 www.digite.com

4. 2010 – Kanban “blue book”

5. 2014 – Kanban from the Inside

6. What is Kanban?
Kanban – Japanese term for “signboard” or
“Billboard” that indicates “available capacity
(to work)” or a visual cue to begin work.
Kanban System - A visual system for managing
work moving through a process – the “value
stream”

7. The Kanban Method
Digite, Inc.
7
 Change Management Principles
1. Start with what you do now
 Understanding current processes, as actually practiced
 Respecting existing roles, responsibilities & job titles
2. Gain agreement to pursue improvement
through evolutionary change
3. Encourage acts of leadership at all levels

8. Kanban Method uses…
… uses kanban boards to visualize invisible work,
workflow & business risks together with kanban
systems which limit work-in-progress
Kanban Method delivers…
… faster, more predictable service delivery and an
adaptive capability that enables you to respond
effectively to changes in customer demand or your
business environment
Digite, Inc.
8

9. So Why Should you Care?
 Kanban will Help you Get Lean!
 Visualize and Map your Value Stream
 Continuous Flow
 Incremental Change, Continuous Improvement
 Be Data Driven

10. What is Lean?
 Preserve and deliver value
 Eliminate waste
 Any resources not being used to drive value are being
wasted
 Continuously reflect and improve

11. How Do you Become Lean?
 The 5 Pillars of Lean
 Map the Value Stream
 Pull
 Continuous Flow
 Continuous Improvement
 Deliver Value

12. Kanban & Lean
Kanban Applied the 5 Pillars of Lean
 Value Stream Mapping ✔
 Pull ✔
 Continuous Flow ✔
 Continuous Improvement ✔
 Deliver Value ✔

13. The Kanban Method is not…
A project management method
nor
A software development lifecycle
process
Digite, Inc.
13

14. Digite, Inc.
14
In the absence of an existing methodology/
process, the Kanban Method cannot be applied/
used!

15. The Kanban Method15
Digite, Inc.

16. The Kanban Method
Digite, Inc.
16
 Change Management Principles
1. Start with what you do now
 Understanding current processes, as actually practiced
 Respecting existing roles, responsibilities & job titles
2. Gain agreement to pursue improvement
through evolutionary change
3. Encourage acts of leadership at all levels

17. Start with What you do Now
 What do you do Now?
 Waterfall?
 Iterative?
 TDD?
 Scrum?
Digite, Inc.
17

18. The Kanban Method
General Practices
1. Visualize (with a kanban board 看板)
2. Limit work-in-progress (with kanban かんばん)
3. Manage flow
4. Make policies explicit
5. Implement feedback loops
6. Improve collaboratively, evolve experimentally
(using models & the scientific method)
Digite, Inc.
18

19. The Kanban Method
General Practices
1. Visualize (with a kanban board 看板)
2. Limit work-in-progress (with kanban かんばん)
3. Manage flow
4. Make policies explicit
5. Implement feedback loops
6. Improve collaboratively, evolve experimentally
(using models & the scientific method)
Digite, Inc.
19

20. Move from here….
Backlog Next DoneIn-progress
Digite, Inc.
20

21. ….to here!
DoneNext
Ongoing
Development Testing
Done Ongoing Done
Deploy
Digite, Inc.
21
• Team should be able to observe Flow
• Handoffs should become defined
• All Process Steps should be visible

22. The Kanban Method
General Practices
1. Visualize (with a kanban board 看板)
2. Limit work-in-progress (with kanban かんばん)
3. Manage flow
4. Make policies explicit
5. Implement feedback loops
6. Improve collaboratively, evolve experimentally
(using models & the scientific method)
Digite, Inc.
22

23. Implement WIP Limits
DoneNext
5 ∞
Ongoing
Development Testing
Done Ongoing Done
3 3∞ ∞
Deploy
Digite, Inc.
23
• Defining constraints helps Flow
• Communicates available capacity to the team
and stakeholders

24. A Kanban System consists of a
quantity of “kanban” (かんばん)
signal cards in circulation

25. A Kanban System consists of a
quantity of “kanban” (かんばん)
signal cards in circulation

26. Overburdening is a common Problem
 Multi-tasking is a commonly expected performance
measure in most team. We are expected to be able to
handle multiple things at the same time.
Digite, Inc.
26

27. Multitasking is Bad!
Kanban helps you Reduce it
“It’s unequivocally the case that workers who are doing multiple things at one time are
doing them poorly,” said Clifford Nass, director of the Communication Between Humans
and Interactive Media Lab at Stanford University.
“The human brain just really isn’t built to switch rapidly from one task to another.
Workers who constantly multitask are hurting their ability to get work done, even when
they are not multitasking. People become much more distracted, can’t manage their
memory very well.”
Companies that demand multitasking may be damaging productivity. “It would be a total
tragedy if when we have so much potential to make the work force more intelligent, we
are actually making the work force dumber,” Nass said. “Companies that are demanding
that workers multitask might not only be hurting their productivity, but may be making the
workforce worse thinkers.”
*Ruth Mantell, Wall Street Journal Market Watch, July 12, 2011, “Multitasking: More
work, less productivity”
Digite, Inc.
27

28. Multi-tasking is one reason
we have too much WIP
1 - 10 I – X (Roman) A - J
Start timer for 1 minute
Fill in each row left to right
Stop when timer goes off or you
reach the limit shown at the top of
each column
Digite, Inc.
28

29. Multi-tasking is one reason
we have too much WIP
1 - 10 I – X (Roman) A - J
Start timer for 1 minute
Fill in each column top to bottom
starting at the left column
Stop when timer goes off
Digite, Inc.
29

30. Stop Multitasking
Stop STARTING! Start FINISHING!
Digite, Inc.
30

31. WIP Limits benefits
 Controls Multi-tasking
 Signal that capacity is available;
 Can be by person, by workflow, by work item
type, or by total number of items in progress;
 Promote finishing & quality;
 Provoke important discussions;
Digite, Inc.
31

32. The Kanban Method
General Practices
1. Visualize (with a kanban board 看板)
2. Limit work-in-progress (with kanban かんばん)
3. Manage flow
4. Make policies explicit
5. Implement feedback loops
6. Improve collaboratively, evolve experimentally
(using models & the scientific method)
Digite, Inc.
32

33. Implement Pull. Manage Flow.
(Flow is the movement of the work)
Flow – from Engineering
Ready to Release Ready
FLOW
Digite, Inc.
33

34. Optimizing Capacity, Maximizing Flow
Digite, Inc.
34

35. Flow vs. Batching of Work
Digite, Inc.
35

36. The Essence of Kanban in Action
Digite, Inc.
36

37. The Kanban Method
General Practices
1. Visualize (with a kanban board 看板)
2. Limit work-in-progress (with kanban かんばん)
3. Manage flow
4. Make policies explicit
5. Implement feedback loops
6. Improve collaboratively, evolve experimentally
(using models & the scientific method)
Digite, Inc.
37

38. Make Policies Explicit
Digite, Inc.
38

39. What goes on
the board?
What is written
on a ticket?
How does the
board work?
Cadence
Who can
modify?
Digite, Inc.39

40. Risk Dimensions
(also called Class of Service)
• “What will happen if you
don’t finish the work item on
time” (Cost of Delay)
• A set of policies that apply
to a type of work.
• Can be indicated with colors,
shapes, stickers, etc.
• Can affect prioritization
Digite, Inc.40

41. Cost of Delay is a critical business risk
time
impact
time
time
time
impactimpact
impact
time
impact
time
impactimpact
Expedite – critical and immediate cost of
delay; can exceed other kanban limit (bumps
other work)
Fixed date – cost of delay goes up
significantly after deadline; Start early
enough & dynamically prioritize to insure
on-time delivery
Standard - cost of delay is shallow but
accelerates before leveling out; provide a
reasonable lead-time expectation
Intangible – cost of delay may be significant
but is not incurred until much later;
important but not urgent
time

42. Kanban Board based on Risk Dimensions
Backlog Next Done
3
In-progress
3
Expedite
Fixed Date
Standard
Intangible
∞ ∞
Digite, Inc.
42

43. The Kanban Method
General Practices
1. Visualize (with a kanban board 看板)
2. Limit work-in-progress (with kanban かんばん)
3. Manage flow
4. Make policies explicit
5. Implement feedback loops
6. Improve collaboratively, evolve experimentally
(using models & the scientific method)
Digite, Inc.
43

44. Implement/ Continue with Feedback Loops
 Daily Standup Meetings/ Retrospectives
 Kanban Metrics
 Cumulative Flow
 Lead Time
 Kanban Board
 WIP Limit violations
 Blockers
 Review Stages
Digite, Inc.
44

45. Focus on Delivery to Customer Early, Often,
Faster
Digite, Inc.
45

46. Kanban Board – Information Radiator
Digite, Inc.
46

47. The Kanban Method
General Practices
1. Visualize (with a kanban board 看板)
2. Limit work-in-progress (with kanban かんばん)
3. Manage flow
4. Make policies explicit
5. Implement feedback loops
6. Improve collaboratively, evolve experimentally
(using models & the scientific method)
Digite, Inc.
47

48. Improve Collaboratively, Evolve
Experimentally
(Using models and the Scientific Method)
 Look for opportunities for improvement
 Bottlenecks
 Blocker Analysis
 Sources of rework/ defects
 Manage variability in incoming Demand
with “Classes of Service”
 Implement 2-Phase Commit
Digite, Inc.
48

49. Evaluate Bottlenecks
Digite, Inc.
49

50. Common Challenges in Software
Development
 Upfront Planning and Prioritization
 Conflict of priorities between various stakeholders
 Shifting Business Priorities
 Internal and External Sources of Demand
 Different type of work and different classes of service
 High levels of Discard Rates
Upstream Kanban and 2 Phase Commit will help
Streamline the Inflow of Work to the Dev Team
Digite, Inc.
50

51. Go “Upstream” with Kanban
DoneNext
Ongoing
Development Testing
Done Ongoing Done
Deploy
Spec
Ongoing
Prioritization
Done
Pool
of Ideas
Ready
Ongoing Done
Digite, Inc.
51

52. In Flow Systems, Commitment is
deferred
E
I
D
Commitment point
F
F
FF
F
F F
G
Pull
Wish to avoid aborting after commitment
Ideas
Dev
Ready
5
Ongoing
Development Testing
Done
3 3
Test
Ready
5
UAT
Release
Ready
∞ ∞
We are committing to getting
started. We are certain we want
to take delivery.
Ideas remain optional and
(ideally) unprioritized
Digite, Inc.
52

53. Software Teams often see High Discard
rates
E
I
D
F
F
F F
G
I
Reject
Ideas
Dev
Ready
5
Ongoing
Development Testing
Done
3 3
Test
Ready
5
UAT
Release
Ready
∞ ∞
Discarded
The discard rate seen at a
Microsoft team in 2004 was 48%.
~50% is commonly observed
Options have value because the
future is uncertain
0% discard rate implies there is no
uncertainty about the future
Digite, Inc.
53

54. Test
Ready
F
N
K
M
L J
F
Specific delivery commitment may be
deferred even later
E
I
G
D
2nd
Commitment
point*
Discarded
I
Ideas
Dev
Ready
5
Ongoing
Development Testing
Done
3 35
UAT
Release
Ready
∞ ∞
We are now committing to a
specific release date
*This may happen earlier if
circumstances demand it
Digite, Inc.
54

55. Long Term…
 Move towards Iteration-less delivery?
 Use models such as Monte Carlo
simulation to forecast capability and set
customer expectations
Digite, Inc.
55

56. Am I Lean Now?

57. We Improved 300%

58. Kanban Knows No Boundaries
 Internally We Also Use Kanban for
• HR
• Finance
• Sales
• Marketing
 People use Swift-Kanban for
 All of the above plus
 Legal Transaction Management
 Book Publishing
 Video Game Development
 Personal Kanban
 And more

59. Kanban for Kids
https://micknelson.wordpress.com/2012/10/03/kanban-for-kids/

60. Applying Kanban to your Scrum
Processes
Digite, Inc.
60

61. Digite, Inc.
61
“Scrum vs. Kanban”
Is it an emotional thing?

62. So, how well is Scrum working for you?
 It is working just fine for me!
 I think it is working fine – but I’d like
to know how we can get better..
 I need serious and immediate help to
improve!!
Digite, Inc.
62

63. Some Challenges in Scrum
 Estimation Challenges
 Missed Scope/ Deadlines; Stories leak out
 Software is not necessarily working or tested
 Overwhelming focus on “rituals”
 how to calculate the right velocity,
 what % of time to allocate to surprises,
 estimation inaccuracies and other such problems.
 The Challenge of Batch Sizes
 Disruptive Role-changes and Org Changes
Digite, Inc.
63

64. Should you be applying Kanban to Scrum?
 If everything is going well – and you are delivering
software to your customer as per their expectations –
perhaps there is no need to!
 If you know – or have niggling doubts – that you could
be doing better, then by all means, look at Kanban!
 Even if you don’t and you’d like to explore Kanban,
that’s a great reason as well.
Digite, Inc.
64

65. Start with What you do Now
 Start with What you do Now
 Continue with your current Scrum processes and
rituals, roles and titles
 Continue to do Sprints and Releases, and use Scrum
metrics and measures
 Visualize your Dev team’s process more granularly
 Agree to Improve Incrementally
 Allow acts of leadership at all levels
Digite, Inc.
65

66. Implementing Kanban in a Scrum
environment
 Short Term: Start with what you have
 Start with all the Standard Practices of Kanban
 Implement WIP Limits and Manage Flow
 Medium Term: Evaluate Improvement
Opportunities
 Evaluate/ Implement 2-Phase Commitment
 Tweak WIP Limits and Process Steps
 Long Term:
 Consider moving to faster/ on-demand replenishment
 Use models such as Risk Assessment and Monte
Carlo Simulation for better Demand Management and
Delivery Forecasting
Digite, Inc.
66

67. Scrumban or Kanban? (What’s in a Name?)
Scrum + Kanban =
Scrum or Scrumban
or Kanban – YOUR
Choice!
The Kanban Method provides a number of
tools and techniques to boost the
performance of Scrum teams.
Digite, Inc.
67

68. Scrum and (not vs.) Kanban
Kanban does not compete with
Scrum.
Kanban complements and
supplements Scrum!
Digite, Inc.
68

69. Resources
 http://yuvalyeret.com/so-what-is-scrumban/
 http://blog.venturepact.com/19-proven-benefits-of-
scrumban/
 http://www.deloittedigital.com/us/blog/scrumban-a-
different-way-to-be-agile
 https://www.agilealliance.org/what-is-scrumban/
 Scrumban – and other Essays on Kanban Systems for
Lean Software Development; by Corey Ladas
 Kanban and Scrum – making the most of both; by
Henrik Kniberg & Mattias Skarin
Digite, Inc.
69

70. Thank you!
 Mahesh Singh
 Co-founder, SVP – Head of Marketing, Digité, Inc.
 Kanban Coaching Professional (KCP)/ AKT-in-the-
making
 @maheshsingh/ mahesh@digite.com/ +1 (408) 761-
2238
 www.digite.com
Digite, Inc.
70