increase service value with kanban - itsmf · increase service value with kanban robert s....

27.03.2015 © Copyright 2015 Concentric Circle Consulting. All rights reserved.

1

Increase Service ValueIncrease Service Valuewith Kanban with Kanban

Robert S. FalkowitzRobert S. FalkowitzDirectorDirectorConcentric Circle ConsultingConcentric Circle [email protected]@3cs.ch@R_Falkowitz@R_Falkowitzwww.3cs.chwww.3cs.ch


2

a gazdaság számára történő a gazdaság számára történő értékteremtésértékteremtés

to create value for the economyto create value for the economy


3

A vicious cycleA vicious cycle

Insufficient resources

Insufficient quality

Customer dis-satisfaction

Reinforced controls


4

Where is the problem in Where is the problem in lead time?lead time?Lead Time

Flow efficiency = Touch Time / Lead Time * 100%

Push systems: 5-15% is typical


5

Types of ImprovementsTypes of Improvements

ToolsTrainingProcessesOrganizationOutsourcingEtc...

ToolsFlow

Touch Time Non-touch Time


6

What should we improve?What should we improve?

Non-touch time Touch time

Percentage of total 90% 10%

Improvement rate 10% 10%

Overall improvement 9% 1%


7

Resumé of ApproachesResumé of Approaches

ExpensiveHigh riskOne-off improvementsAlienation of personnel

InexpensiveLow riskContinual improvementsHumane

Touch Time Non-touch Time


8

SLAs and OLAsSLAs and OLAs

CustomerTeam 2Team 1

Response Time

Working Time

Response Time

Working Time

Resolution Time

How do we manage this flow...

...to achieve this result?


9

Are the 3 P's Sufficient?Are the 3 P's Sufficient?

SERVICES

PE

OP

LE

PR

OC

ES

SE

S

PR

OD

UC

TS


10

...or is something missing?...or is something missing?

SERVICES

PE

OP

LE

PR

OC

ES

SE

S

PR

OD

UC

TS


11

KanbanKanban


12

Kanban AssumptionsKanban Assumptions

Focus on the teamThe team delivers servicesTeams are mostly self-organizingOptimize for service outcomes, not individual tasks


13

Kanban PrinciplesKanban Principles

Start with what you do nowAgree to pursue evolutionary changeInitially, respect existing roles, responsibilities and job titles


14

Kanban PracticesKanban Practices

Visualize the workLimit work in progressMake policies explicitManage the flow of workIntroduce feedback loopsImprove via collaboration and experimentation


15

Visualize the Work – Visualize the Work – Kanban BoardKanban Board

Visualize the work

Manage the flow of work

Flow adapted to each team


16

Limit Work in ProgressLimit Work in Progress

High limit

Low limit

No visibility on delivery dates

Predictable delivery dates

Time to detect production errors

Time to detect production errors

Value realized sooner


17

Work is PulledWork is Pulled

13

14

15

16

12

11

10

9

8

7

6

5

4

3

2

1


18

Make Policies ExplicitMake Policies Explicit

Example: Prioritization

Rules

Example: WIP Limits


19

Manage Flow of WorkManage Flow of WorkWIP limits

Unblocking activities during

daily standup meetings

Tracking of blocked work

items

Buffered bottlenecks


20

Feedback Loops and the J Feedback Loops and the J CurveCurve

What is the risk of failure, cancellation,

change in requirements,

reduction in scope...?

Duration ofproject

Cost

Benefit

As-is

To-be


21

The JJJJJJJJJJ CurveThe JJJJJJJJJJ Curve

What is the risk of failure, cancellation,

change in requirements,

reduction in scope...?


22

Experiment and InnovateExperiment and Innovate

Experiment gone right

Experiment gone wrong


23

TakeawaysTakeaways

Higher flow efficiency (ca. 40% is good)Vastly improved lead timesHigher trust between customers and service providersHigher satisfaction of personnelHigher value obtained by customers


24

Thank you!Thank you!

Robert S. FalkowitzRobert S. FalkowitzDirectorDirectorConcentric Circle ConsultingConcentric Circle [email protected]@3cs.ch@R_Falkowitz@R_Falkowitzwww.3cs.chwww.3cs.ch

increase service value with kanban - itsmf · increase service value with kanban robert s....

Documents