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Lean thinking

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Application of lean thinking principles in IT industry

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Lean thinking

  1. 1. Fundamental Principles of Lean Thinking, CMMI and Process Quality Improvement<br />-Shantanu Dey<br />
  2. 2. History<br />
  3. 3. Philosophy<br />Map the flow in sync with demand at various stages of the production process<br />Downstream supply should be linked to upstream demand<br />Develop a Pull System<br />Meet demand as and when it arises, eliminate need to store inventory<br />Inventory is waste<br />Make parts available at the right place at the right time in right quantity <br />5S, Just in Time<br />Identify the value stream and eliminate non value additive activities<br />Value Stream Mapping<br />Ensure quick turnaround<br />Quick set ups and changeovers, cellular layout<br />Ensure High degree of Communication and Visibility<br />Problems should be highlighted and visible to all for quick remedial actions<br />Kanban or card system for requirement transfer<br />Jidoka<br />Perform Root Cause Analysis to identify problems, not symptoms<br />5 whys, Fishbone diagram<br />Eliminate defects by preventing defects than detecting same – Poka Yoke<br />Carry out Continuous and Radical Improvements<br />Kaizen and Kaikaku<br />
  4. 4. Key Concepts – Lean Thinking<br />
  5. 5. Lean Principle – Complete Picture <br />Value stream analysis<br />Identification of steps that add value<br />Type 1 and Type 2 Muda<br />Develop a flow based process responding to demand<br />Eliminate waste – type 2 Muda<br />Through Continuous Improvements (kaizen) and radical improvements (Kaikaku)<br />Develop a flow process based on demand, eliminate batch and queue<br />Demand is the key driver at every stage<br />Reorganize production process to aid in flow (cellular layout, collocation)<br />Kanban based flow management<br />Develop a just in time philosophy<br />Measure takt time (total time for producing one unit in line with demand)<br />Develop one piece flow <br />Make sure that upstream process only responds to downstream demand at the right time<br />Standardize work and assure quality<br />Clear accountability, responsibility and instruction sheet, guidelines and templates<br />Andon or visual control – problem and current status is visible and anybody can stop entire process in the event of a problem (Jidoka)<br />Poka yoke or failure proofing, prevent defect rather than detect defect<br />5S<br />Level workload (Heijunka) and improve flow (production leveling)<br />Identify the root cause<br />5 Whys<br />
  6. 6. Value Stream Analysis<br />
  7. 7. Root Cause Analysis<br />5 Whys - Problem Statement is Customers are unhappy because products shipped do not meet specifications<br />Ishikawa or Fishbone diagram<br /><ul><li>Many opinions to root cause for a specific problem
  8. 8. Capture all opinions and stimulate brainstorming
  9. 9. Helps in visualizing many causes for a problem
  10. 10. Start with a “Why” question for problem statement
  11. 11. All causes should belong to distinct categories</li></li></ul><li>Other Quality Concepts<br />PDCA cycle - Deming<br />SPC and Control Charts – Shewhart and Deming<br /><ul><li>Normal distribution of the measured parameter (m = 0, SD = 1)
  12. 12. Creation of a control chart with upper and lower control limits (X bar, R chart etc.)
  13. 13. Control limits are defined at m+3S and m-3S
  14. 14. Variations due to common and special causes – special causes need to be ascertained through RCA
  15. 15. Indicates when to act and when not to act
  16. 16. Special cause must be attacked
  17. 17. Only way to reduce common cause is continuous improvement and tighter control</li></ul>Capability Maturity Model (Integrated) – SEI<br />
  18. 18. How Lean Thinking Can Help Us<br />Distinguish between Batch and Queue vs. Continuous Flow<br />Subject everything to demand and customer needs<br />Identify value adding and non value adding processes and eliminate wastes<br />7 deadly wastes include “Wait and Queuing”, “Inventory”, “Reworks and Defects”, “Gold Plating and Excess Work”, “Lack of Focus”, “Deviation from Standard and Requirement”, “Lack of Communication”<br />Adopt single piece flow for faster turnaround<br />Communicate, Make problems and status visible<br />Define, Measure, Analyze, Improve<br />Prevent problems than do firefighting, raise flags as early as possible<br />Level workload and ensure performance consistency<br />Adopt standardization and uniformity, adhere to 5S<br />Identify root cause of problems<br />Develop Continuous Improvement culture<br />Change mindset and address resistance to change<br />Empower, motivate, learn, adapt<br />Collaborate with business partners to drive changes<br />
  19. 19. Linking to what we should do in IT<br /><ul><li>We follow a batch and queue method of prioritization and allocation
  20. 20. Engagement with business, BUS survey, relationship management, collaborative planning with other teams
  21. 21. Standard Operating Procedure and value measurement
  22. 22. Take one design/code into logical conclusion before working on another
  23. 23. Turnaround time and throughput as parameters defined and measured, analyzed for variations and planned for improvements, having more focus on issues in hand, reducing turnaround time for investigation
  24. 24. Status reports, tracking and monitoring, early warning, master specification, ageing in investigation, RCA for TAT and ageing, development slippage
  25. 25. Core team review, early warning, escalations
  26. 26. Master Specification Plan, Specification target, release quota, throughput consistency on a week by week basis
  27. 27. LAN folder and SharePoint, templates, standards, checklists and guidelines
  28. 28. Root cause analysis for TAT, ageing analysis, statistical process control for TAT, RCA for development slippage
  29. 29. Statistical process control, problem identification and adoption of process improvement measures
  30. 30. Forming quality circle, lessons learned exercises, learning forums and BPML, brainstorming, rewards and recognitions, additional responsibilities, having consensus before major initiatives, implement after consensus is achieved
  31. 31. Collaboration with other teams, ensuring team utilization, helping reduce total turnaround time</li></ul>Distinguish between Batch and Queue vs. Continuous Flow<br />Subject everything to demand and customer needs<br />Identify value adding and non value adding processes and eliminate wastes<br />Adopt single piece flow for faster turnaround<br />Communicate, Make problems and status visible<br />Define, Measure, Analyze, Improve<br />Prevent problems than firefighting, raise flags<br />Level workload and ensure performance consistency<br />5S and standardization<br />Identify root cause of problems<br />Develop Continuous Improvement culture<br />Change mindset and resistance to change<br />Empower, motivate, learn, adapt, generate consensus, act fast<br />Collaborate with business partners to drive changes<br />
  32. 32. Tasks Cut Out for Us in IT<br />Adopting a demand based continuous flow<br />Batch and queue methods (prioritization, allocation)<br />Pick up high priority issues and functionalities<br />Production Support Process – Value Stream Analysis and Future State Mapping<br />Identifying type 1 and type 2 Muda<br />Eliminating type 2 Muda<br />Adopting Single Piece Flow for faster turnaround<br />Working on one design at a time till approval<br />Testing one functionality at a time till test completion<br />Focus on few issues for investigation without letting them ageing<br />Heijunka or Leveling<br />Having consistent weekly and monthly throughput without overload<br />Meeting Specification Master Plan<br />Communication and Visibility, demand based continuous flow<br />Synchronizing specification flow with development team needs<br />Managing requirement changes, faulty requirements<br />Reducing Turnaround Time, Increasing Throughput based on demand<br />Managing prioritization<br /> Prevent problems, raise flags<br />Early warning, raising slippage on planned dates (clarification not obtained, spec completion, development completion, testing completion), raising flags on - ageing, bandwidth issues, lack of knowledge, lack of clarifications<br />Addressing queries at the earliest and making sure commitments are adhered to<br />Continuous Improvement Culture<br />Getting the buy in of the team, empowering and motivating team members<br />Root cause analysis and resolution of root cause<br />Measuring success of initiatives, modification of plan based on measurement outcomes<br />Anything else?<br />