KANBAN The Essential Guide - schd.ws

The three change management principles of Kanban are. 1. Start with .... a) Understanding of classes of service and business risks (e.g. from cost of delay)? b) Hedged risks ... practice in the field and are now defined in the method itself. ... Service Delivery Manager: responsible for the flow of work in delivering selecting ...
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KANBAN The Essential Guide

DAVID J ANDERSON

ANDY CARMICHAEL1

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The Essence of Kanban 1. What is Kanban? 2. Kanban Values 3. The Foundational Principles of Kanban 4. Describing Flow Systems 5. The Core Practices of Kanban 6. Introducing Kanban to organizations 7. Kanban Roles 8. Forecasting and Metrics 9. Expanding the application of Kanban

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Kanban is a method for defining, managing and improving services which deliver knowledge work

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a kanban system is a delivery flow system that controls the amount of work in progress using visual signals

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kanbans are visual signals that prevent too much or too little work entering the system. The kanbans, and their policies, create a pull system, where work is “pulled” into the schedule when other work is completed, rather than “pushed” when new work is requested.

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Kanban is a values-led method.

Respect for all the individuals involved is necessary, not only for the success of the venture, but for it to be worthwhile at all. 7

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Kanban Values Customer Focus Understanding Flow Agreement Leadership Respect

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Transparency Balance Collaboration

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The Foundational Principles of Kanban • How many are there?

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• There are three change management principles • There are three service delivery principles

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The three change management principles of Kanban are

1. Start with what you do now • understanding current processes, as actually practiced • respecting existing roles, responsibilities, and job titles

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2. Agree to pursue improvement through evolutionary change 3. Encourage acts of leadership at every level, from individual contributor to senior management 10

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The three service delivery principles of Kanban are 1.

Understand and focus on your customers’ needs and expectations

2.

Manage the work; let people self-organize around it

3.

Policies control service delivery of interdependent Your organization is an ecosystem services, steered by its policies; reflect regularly on their effectiveness and improve them 11

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Is this a kanban system?

Describing Flow Systems Commitment Pool of Ideas

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Work Item

Delivery

Proposals

Selected

Development

Acceptance

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2

4

2

Complete

Work in Progress Lead Time Delivery Rate

Items per time period

As well as visual signals to limit work in progress, kanban systems have identified commitment and delivery points.

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Flow Systems follow Little’s Law In 1961 Dr John Little (studying Queuing Theory) proved that, in a stationary system:

Λ=L/W

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• Λ is the average arrival rate • L is the average number of items in the queue,

• W is the average time in queue

• Subject to similar assumptions we can apply this to delivery systems:

Delivery Rate = WiP / Lead Time • The overline indicates the average (arithmetic mean) For other parts of the process use: • Throughput: the rate items depart the system under consideration. • Time in Process (TiP): for the time an item takes from entering to leaving the system (or part of the system) under consideration (or Time in Development, Time in Acceptance, Time in Queue, etc.)

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Little’s Law shows us that in order to optimize the Lead Time for work items, we must limit the Work in Progress. This is one of the Core Practices of Kanban.

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The Core Practices of Kanban 1. 2. 3. 4. 5. 6.

Visualize Limit work in progress Manage flow Make policies explicit Implement feedback loops Improve collaboratively, evolve experimentally 15

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Implement Feedback Loops Seven Cadences: 1. Strategy 2. Operations 3. Risk 4. Service Delivery 5. Replenishment 6. The Kanban Meeting 7. Delivery Planning

Per service

Example implementation of the 7 Cadences

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Introducing Kanban to organizations See flow With visible work and policies Make validated improvements

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STATIK – Systems Thinking Approach To Introducing Kanban Litmus Test 18

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STATIK Step 0: Identify Services For each service… Step 1: Understand what makes the service fit for purpose for the customer Step 2: Understand sources of dissatisfaction with the current system Step 3: Analyze demand Step 4: Analyze capability Step 5: Model workflow Step 6: Discover classes of service Step 7: Design the kanban system Step 8: Socialize the design and negotiate implementation Then apply Kanban practices and cadences to balance demand and flow across the multiple services, and continually improve

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Litmus Test

“Protokanban” systems can still be useful. Just don’t stop there!

1.

Establishing a kanban system a) A pull system with limited WiP? b) Defined commitment and delivery points? Recorded Lead Times and Delivery Rates?

2.

Service Delivery a) Commitments based on a service level agreement or understood service level expectation? b) Commitments based on probabilistic forecasting?

3.

Value and risk management a) Understanding of classes of service and business risks (e.g. from cost of delay)? b) Hedged risks from different sources of demand / different types of work? c) Coordinated interdependent services?

4.

Management behavior a) Consistent with a deferred commitment pull system? b) WiP limits respected?

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Kanban Roles Kanban is the “start with what you do now” method Initially no new roles, responsibilities or job titles.

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However two roles have emerged from common practice in the field and are now defined in the method itself.

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Kanban Roles Service Request Manager: responsible for understanding the needs and expectations of customers, and for selecting and ordering work items accordingly

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Alternative names: Product Manager, Product Owner, Service Manager

Service Delivery Manager: responsible for the flow of work in delivering selecting items to customers Alternative names: Flow Manager, Delivery Manager or even Flow Master 22

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Forecasting Two methods contrasted: • Effort-plus-risk approach • • • •

break down a large piece of work into very small items sum the effort estimates choose either an acceptable date or the team size derive other variable including a sufficiently large factor to account for risks and profit

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• Probabilistic approach (used in Kanban) • Use data from the team (or similar teams) on Lead Times, Delivery Rates and variability • Use statistical analysis (e.g. using a Monte Carlo method) to determine the % probability of delivery over a range of dates • Design appropriate Service Level Agreements with customers • Plan (and re-plan) to capability rather than to ambition

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Flow Metrics The minimum set (metrics):

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• • • •

Lead Time Delivery Rate WiP Team size (Effort / Cost)

The minimum set (charts): • Lead Time Run Chart (Control Chart) • Cumulative Flow Diagram 24

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Expanding the application of Kanban Q: How do you scale Kanban? A: By applying Kanban in a context of greater scale.

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Width-wise expansion: upstream and downstream expansion of the end-toend workflow Height-wise expansion: “scale-free” application of Kanban to the hierarchy of work items – different workflow and policies at each level Depth-wise expansion: balancing the ecosystem of interdependent services 25

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Height-wise expansion

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Four specific levels are often identified: 1. Personal - use of Personal Kanban for an individual or small team to foster efficient and effective working 2. Team - understanding the team’s work as a service and applying Kanban practices to optimise predictable flow of value 3. Product - effective management of options for competitive advantage. 4. Portfolio - supporting the investment decisions concerning which new and existing projects need greater or less capability/capacity to deliver change. 26

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Learning more about Kanban

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Questions? 28

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