in search for team’s efficiency by mikhail podurets
TRANSCRIPT
www.luxoft.com
IN SEARCH FOR TEAM’S EFFICIENCY
Luxoft Agile Practice Mikhail Podurets, Agile Coach
www.luxoft.com
Mikhail PoduretsAgile/Lean Coach @ Luxoft Agile Practice
Mikhail.Podurets
Mikhail-Podurets
www.luxoft.com
With Support from Maxim Dorofeev
Business trainer and consultant GTD Jedi http://mnogosdelal.ru Creator of the problem we are going to
solve now
www.luxoft.com
What Will We Talk About
The Myth of team’s efficiency The Theory of Constraints How to detect process bottlenecks
with the Kanban Method How to remove the bottleneck
www.luxoft.com
The Bearded Man Problem
A Team of 5 and the Bearded Man
www.luxoft.com
The Bearded Man Problem
A Team of 5 and the Bearded Man create a product for which the Team has to spend 2 man-hours
www.luxoft.com
The Bearded Man Problem
A Team of 5 and the Bearded Man create a product for which the Team has to spend 2 man-hours and the Bearded Man spends 1 man-hour.
www.luxoft.com
The Bearded Man Problem
A Team of 5 and the Bearded Man create a product for which the Team has to spend 2 man-hours and the Bearded Man spends 1 man-hour.And they earn $3 for the Service Type A
www.luxoft.com
The Bearded Man Problem
Or the Team spends 8 man-hours,
www.luxoft.com
The Bearded Man Problem
Or the Team spends 8 man-hours, the Bearded Man spends 2 man-hours
www.luxoft.com
The Bearded Man Problem
Or the Team spends 8 man-hours, the Bearded Man spends 2 man-hours to earn $8 for the Service Type B
www.luxoft.com
The Bearded Man Problem
The market capacity is: Type A: 35/week Type B: 15/week
www.luxoft.com
The Bearded Man Problem
And all of them want to eat (unfortunately).Weekly salaries: Team: $20/each The Bearded Man: $30
www.luxoft.com
The Question to the New CEO Type A (Max 35/week) = 2 man-hr of
Team + 1 man-hr of the Bearded Man $3 Type B (Max 15/week) = 8 man-hr of
Team + 2 man-hr of the Bearded Man $8 Team cost: $20/week each The Bearded Man cost: $30/week
What is the maximum weekly profit or the minimum weekly loss a company has?
www.luxoft.com
Let’s Calculate
Type A: 3 man-hours => $1 per man-hour Type B: 10 man-hours => $0,8 per man-hour Income = 35xType A + 2.5xType B – 5 Team Members
Salary – Bearded Man Salary = 35x3 + 2.5x8 – 100 – 30 = -5$
Man-hours method (How much $ we earn for each of man-hours spent)
DOES NOT WORK HERE
www.luxoft.com
Let’s Calculate
Type A: For each invested $1.75 we get $3 => 3/1.75 = 1.71
Type B: For each invested $5.5 we get $8 => 5.5 / 8 = 1.45 Income = 35xType A + 2.5xType B – 5 Team Members
Salary – Bearded Man Salary = 35x3 + 2.5x8 – 100 – 30 = -5$
ROI Calculation (How much $ we earn per invested $1)
PROFIT
www.luxoft.com
Let’s Calculate
Income = 15xType B + 10 x Type A – 5 Team Members Salary – Bearded Man Salary = 15x8 + 10x3 – 130 = $20
The other way round (type B first)
www.luxoft.com
SummaryPROFITABLE SERVICE NON-PROFITABLE SERVICE
Type A Type B Type A Type BNumber of Services
35 2,5 10 15
Team Hours Spent
70 20 30 120
Bearded Man Hours spent
35 5 10 30
Income $105 $20 $30 $120Paychecks -$130 -$130Profit/Loss -$5 $20
www.luxoft.com
HOW COMES?
www.luxoft.com
Calculation with the Bottleneck Detection
The Bearded Man is a bottleneck
The only thing a production system sells is its bottleneck
ROI Type A = 3/1 = 3 ROI Type B = 8/2 = 4THAT’S A
PROFIT
www.luxoft.com
HOW DO WE INCREASE PROFIT?
www.luxoft.com
But Wait.. The Team Is Not Utilizing 100% of Its Capacity! We need to earn money!
strategy: Start doing!
The Bearded Man is overloaded now
The Bearded Man has to overtime
Now the Bearded Man is not efficient. Let’s motivate (or kick him out)!
© Taken from the “Nightmare on the Elm Street” Movie
www.luxoft.com
But There Is Another Strategy for the Team
© Taken from http://yurkov.synergy.ru/dzen/
Refactor Work with technical
debt Improve tooling Improve process Share knowledge GROW BEARDS!
www.luxoft.com
Theory of Constraints in a Nutshell
Any system can perform better Every system has its constraint (bottleneck, weakness) –
“anything that limits a system from achieving higher performance versus its goal”
There is only one constraint at a time
© Taken from https://en.wikipedia.org/wiki/Chain
www.luxoft.com
Way to Remove the Bottleneck
1. IDENTIFY the system constraint
2. Decide how to best EXPLOIT the constraint
3. SUBORDINATE everything else to above decision
4. ELEVATE the system constraint
5. If Constraint.IsBroken == TRUE GoTo1 Else Goto 2
www.luxoft.com
Hint for Identification: Kanban Method
Visualization and WIP limits
Learn more about WIP limits at https://youtu.be/gEAmHgR-tTs
www.luxoft.com
Hints to Exploit the Constraint
The bottleneck should work 100% efficiently
Eliminate waste in the bottleneck
Perform the QA before the bottleneck
www.luxoft.com
Subordination to the Bottleneck
Perform scientific experiments to setup WIP limits so that: The Bottleneck is 100% utilized all the time
No undone work is awaiting for the bottleneck to finish current tasks (JIT)
Move the Bottleneck to the beginning of the production system (or as close as possible)
© Taken from http://sakhapress.ru/archives/191057
www.luxoft.com
Elevation of the Bottleneck
Focus on the system goal Search for the root cause of
bottleneck’s low capacity Perform experiments to increase
capacity Automation usually helps ;) Meanwhile utilize free resources in
parallel to the bottleneck: no matter how skilled they are, they add more than 0.
www.luxoft.com
Bearded Strategy Based on TOC
© Taken from http://yurkov.synergy.ru/dzen/
1. Identify the constraint.
2. Decide how to exploit the constraint:
• Stop trying being efficient
• Refactor to create better input for the Bearded Man
• Work with technical debt with the same purpose
3. Subordinate system to the bottleneck
• Setup the WIP Limits (don’t let the Team do more than the Bearded Man can do)
• Think of moving the Bearded Man or a part of his work to the beginning of the process
4. Elevate• Introduce metrics to measure outcome
• Help the Bearded Man
• Automate the Beard
• GROW BEARDS!
• Hire
www.luxoft.com
Congratulations on having a new bottleneck now!
www.luxoft.com
Next Luxoft Agile Practice Webinars
Best Tools to Develop Soft Skills in Scrum and Agile Development Vyacheslav Moskalenko16.02. 2016 14:00 – 15:00 MSK
[RUS] Как мотивировать себя и свою команду? Светлана Мухина24.02.2016 15:00 – 16:00 MSK
https://goo.gl/tObLvP https://goo.gl/qoYwnl
www.luxoft.com
Next Luxoft Agile Practice Trainings 10/02 - 12/02: Professional Scrum
Master in Moscow 10/02 - 11/02: Business Value Analysis in
St.Petersburg 16/02 - 17/02: Business Value Analysis in
Moscow 17/02-19/02: Agile Fundamentals in Kyiv 24/02 - 25/02: Agile Team Facilitation in
Bucharest 24/02 - 25/02: Management 3.0 in Krakow 03/03 - 04/03: Agile Team Facilitation in
St.Petersburg
10/03-11/03: Agile Team Facilitation in Moscow
16/03 - 18/03: Agile Fundamentals in Moscow
17/03 - 18/03: Business Value Analysis in St.Petersburg
21/03 - 22/03: Management 3.0 in Moscow
23/03 - 24/03: Agile Team Facilitation in Krakow
http://www.luxoft.com/agile/certified-trainings
www.luxoft.com
QUESTIONS?
www.luxoft.com
THANK YOU!
blog.luxoft.com/agilewww.luxoft.com/agile
http://www.luxoft.com/agile/certified-trainings/