Download - Introducing Enterprise Services Planning
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Improving agility one
service at a time
Anticipating demand across an
ecosystem of shared services
Enterprise Services PlanningScaling the benefits of Kanban
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Lean Kanban North America 2015 conference
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Kanban Coaching Professional Masterclass
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Microsoft XIT Sustaining Engineering
Deferred commitment pull system coupled to probabilistic understanding of lead time
• Improved productivity over 200%
• Greatly improved predictability
• Shortened lead times by ~90%
Use of Kanban systems is minimally intrusive for engineers. Process methodologies didn’t change
• PSP/TSP remained in use throughout
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Conclusion
Kanban is good for service delivery
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Kanban Method Emerges
Kanban systems aren’t enough when there is too much variability in the workflow and too much heterogeneity of work types and trouble matching worker skills & experience
• Now known as a system liquidity problem
• Visual boards are introduced
• Kanban limits create stress & provoke process improvements
• Multiple classes of service emerge
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Kanban Method Matures
A combination of elements of Kanban such as system replenishment, classes of service, understanding cost of delay, transparency and metrics start to change entire company culture
Operations review drives BU wide improvements and starts to influence other BUs within the firm
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Conclusion
The Kanban Method is a management system for
cultural change & improving organizational maturity
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First Kanban Software
Digital Whiteboard application developed by Darren Davis at Corbis runs on top Microsoft Team Foundation Server
Workers run Digital Whiteboard on their desktop but continue to use physical boards in parallel
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Conclusion
We need software to get good metrics easily and amplify the management value of Kanban
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Kanban on Big Projects
$11 million budget project with up to 55 people, 16 month schedule, approximately 2400 user story scope
2-tiered kanban boards emerge to visualize parent-child dependencies in requirements
Introduces hybrid of dedicated teams and floating project personnel using avatars
• Specialists such as architects, UX
• Generalists who can help any team
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Conclusion
Kanban is useful on large projects to improve
predictability.
More guidance on prioritizing backlogs is required at large
scale.
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STATIK
Recognizing the need to teach people how to get started with Kanban, training classes adopt the use of the STATIK exercises
STATIK = the Systems Thinking Approach To Implementing Kanban
• the method is presented at conference in 2012
• the acronym will not be introduced until 2013
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Kanban has 3 approaches to scaling
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The Kanban Lens
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Treat each service separatelyDe
man
d
ObservedCapability
Dem
and
Dem
and
ObservedCapability
ObservedCapability
Analyze demand & capability for each service independently
Design a Kanban system for each service using the STATIK method.
Scale out in a service-oriented fashion, one service at a time
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Anticipating Demand, Allocating CapacityDe
man
d
ObservedCapability
Dem
and
Dem
and
ObservedCapability
ObservedCapability
Looking downstream, you want the system to help you anticipate
and manage dependenciesLooking upstream, you want the system to help you anticipate and
manage demand
Combine the two, and across the organization you smooth flow
end-to-end and help keep demand in balance withoverall system capability
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Scale-free understandingEliminating unbounded queues
• Proto-kanban to full workflow kanban
• Coupling interdependent network of kanban systems
Andy Carmichael’s Smallest Possible Definition of Kanban
See Flow,Start Here,
With visible work & policies, validate improvements
Core practices renamed “general practices” with specific practices at different scales
• Personal/team Kanban• Service Delivery /
Workflow Kanban• Portfolio Kanban
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• Becoming Data-Driven• Objective Retrospectives• Forecasting• Enterprise Kanban & Lean Startup• Scrumban• Kanban Coaching• Blockers for Improvement• RBS Project Sizing• Kanban Academic Research …
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Kanban Coaching Professional Masterclass
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Enterprise Services PlanningEnterprise Services Planning is a new modular 5-day training program from Lean Kanban which will be available from 2nd quarter 2015
Kanban is now table stakes. Large scale benefits are enabled by implementing Enterprise Services Planning
Here are two small sections of the training material highlighting some planning & risk management concepts for scheduling & sequencing work at project or portfolio level …
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Lean Kanban Training RoadmapThe
KanbanMethod(2 days)
Intro toKanban(1 day)
Ready Trained
GettingStarted
with Kanban(2 days)
Enterprise Services Planning(5 days)
Ready Trained Ready Trained Ready Training Trained
Train the Trainer (5 days)Read
yTrained Qualified
Coaching Masterclass (5 days)Read
yTrained Qualified
KMPKMP
KMPKMP
KMP
KMP
Kanban Proficiency
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Moving the conversation away from process improvement and towards management and decision frameworks
conf.leankanban.com edu.leankanban.com
leankanban.com
“Power in Simplicity”
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Essence of the Lean Kanban brand
Pragmatic, actionable evidence-based guidance!
Something you can take away and implement next Monday
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ESP Training Modules
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Beta test special offer
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Scheduling
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When should we start something?
impa
ct
When we need it
85th percentile
Ideal StartHere
Commitment point
timeJan10
Nov11
If we start too early, we forgo the option and opportunity to do something else that may
provide value.
If we start too late we risk incurring the cost of delay
If we pull the work into our kanban system on Nov 11 we
have a 6 out of 7 chance of on-time delivery
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We can study sensitivity to different start dates
impa
ct
When we need it
50th percentile
Later StartHere
Commitment point
timeJan10
Nov25
If we start as late as November 25 we only have a 50% chance
of on-time delivery
However, the cost of delay incurred if we deliver within 60
days is relatively small. We have an 85% chance of achieving delivery with acceptable cost of delay
85th percentile
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What is the latest we could start?
impa
ct
When we need it
0th percentile
Very latestart
Commitment point
timeJan10
Dec19
If we start as late as December 19 we have 0% chance of on-
time delivery
We have about a 10% chance of a total loss delivering the
promotion beyond the expiry date of the opportunity
85th percentiletotal loss
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To be certain of delivery without incurring any cost of delay is expensive
impa
ct
When we need it
98th percentile
Early Start
Commitment point
timeJan10
Aug11
If we are conservative and do not wish to carry any risk of late delivery or any risk of
incurring an opportunity cost of delay, then we must start as
early as August 13th.
We must commit to our Spring Break 2015 promotion during
Summer 2014!!!
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Window of opportunity
impa
ct
When we need itEarliest Start
timeJan10
Aug11
Latest viable
start
Dec19
Optimal Start
Nov11
On August 11st the item becomes available for selection
at Kanban system replenishment.
The ideal time to start is November 11th.
After December 19th our option to deliver this item expires and
we would discard it from our pool.
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Lead time is perhaps the most important metric we gain from
kanban systemsLead time coupled with cost of
delay sensitivity analysis is a key enabler of deferred commitment and consensus on when to make
commitments
Lesson
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We need tools!
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Tools will facilitate decision making
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Enterprise Services Planning“The Future of Kanban”
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Kanban experience reports
app and mobile development
Including…
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Kanban Coaching Professional Masterclass
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Thank you!
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About
David Anderson is an innovator in management of 21st Century businesses that employ creative people who “think for a living” . He leads a training, consulting, publishing and event planning business dedicated to developing, promoting and implementing new management thinking & methods…He has 30+ years experience in the high technology industry starting with computer games in the early 1980’s. He has led software organizations delivering superior productivity and quality using innovative methods at large companies such as Sprint and Motorola.David defined Enterprise Services Planning and originated Kanban Method an adaptive approach to improved service delivery. His latest book, published in June 2012, is, Lessons in Agile Management – On the Road to Kanban.David is Chairman of Lean Kanban Inc., a business operating globally, dedicated to providing quality training & events to bring Kanban and Enterprise Services Planning to businesses who employ those who must “think for a living.”
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