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Lean & Agile Methods & Frameworks: Perspectives on Kanban for IT

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David Rico

This document provides an overview of lean and agile concepts as applied to IT projects, including: - Lean thinking aims to eliminate waste from processes to maximize value. It originated from Toyota's production system and was later adapted to product development. - Agile methods deliver working software frequently through short iterations to respond quickly to change. They value individuals, collaboration, and adaptability. - Lean and agile concepts intersect as agile naturally supports lean principles like small batches and continuous flow. When combined, they aim to deliver maximum value with minimal waste.

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Perspectives on Kanban for IT Dr. David F. Rico, PMP, ACP, CSM Twitter: @dr_david_f_rico Website: http://www.davidfrico.com LinkedIn: http://www.linkedin.com/in/davidfrico Facebook: http://www.facebook.com/profile.php?id=1540017424 Dave’s Agile Articles: http://davidfrico.com/agile-message.doc Lean & Agile Methods & Frameworks
Author Background  DoD contractor with 28+ years of IT experience  B.S. Comp. Sci., M.S. Soft. Eng., & D.M. Info. Sys.  Large gov’t projects in U.S., Far/Mid-East, & Europe 2  Published six books & numerous journal articles  Adjunct at George Wash, UMBC, UMUC, Argosy  Agile Program Management & Lean Development  Specializes in metrics, models, & cost engineering  Six Sigma, CMMI, ISO 9001, DoDAF, & DoD 5000  Cloud Computing, SOA, Web Services, FOSS, etc.
Today’s Whirlwind Environment 3 Overruns Attrition Escalation Runaways Cancellation Global Competition Demanding Customers Organization Downsizing System Complexity Technology Change Vague Requirements Work Life Imbalance Inefficiency High O&M Lower DoQ Vulnerable N-M Breach Reduced IT Budgets 81 Month Cycle Times Redundant Data Centers Lack of Interoperability Poor IT Security Overburdening Legacy Systems Obsolete Technology & Skills Pine, B. J. (1993). Mass customization: The new frontier in business competition. Boston, MA: Harvard Business School Press. Pontius, R. W. (2012). Acquisition of IT: Improving efficiency and effectiveness in IT acquisition in the DoD. Second Annual AFEI/NDIA Conference on Agile in DoD, Springfield, VA, USA.
Traditional Projects 4  Big projects result in poor quality and scope changes  Productivity declines with long queues/wait times  Large projects are unsuccessful or canceled Jones, C. (1991). Applied software measurement: Assuring productivity and quality. New York, NY: McGraw-Hill. Size vs. Quality DefectDensity 0.00 3.20 6.40 9.60 12.80 16.00 0 2 6 25 100 400 Lines of Code (Thousands) Size vs. Productivity CodeProductionRate 0.00 1.00 2.00 3.00 4.00 5.00 0 2 6 25 100 400 Lines of Code (Thousands) Size vs. Requirements Growth Percentage 0% 8% 16% 24% 32% 40% 0 2 6 25 100 400 Lines of Code (Thousands) Size vs. Success Percentage 0% 12% 24% 36% 48% 60% 0 2 6 25 100 400 Lines of Code (Thousands)
Global Project Failures 5 Standish Group. (2010). Chaos summary 2010. Boston, MA: Author. Sessions, R. (2009). The IT complexity crisis: Danger and opportunity. Houston, TX: Object Watch.  Challenged and failed projects hover at 67%  Big projects fail more often, which is 5% to 10%  Of $1.7T spent on IT projects, over $858B were lost 16% 53% 31% 27% 33% 40% 26% 46% 28% 28% 49% 23% 34% 51% 15% 29% 53% 18% 35% 46% 19% 32% 44% 24% 33% 41% 26% 0% 20% 40% 60% 80% 100% 1994 1996 1998 2000 2002 2004 2006 2008 2010 Year Successful Challenged Failed $0.0 $0.4 $0.7 $1.1 $1.4 $1.8 2002 2003 2004 2005 2006 2007 2008 2009 2010 Trillions(USDollars) Expenditures Failed Investments
Requirements Defects & Waste 6 Sheldon, F. T. et al. (1992). Reliability measurement: From theory to practice. IEEE Software, 9(4), 13-20 Johnson, J. (2002). ROI: It's your job. Extreme Programming 2002 Conference, Alghero, Sardinia, Italy.  Requirements defects are #1 reason projects fail  Traditional projects specify too many requirements  More than 65% of requirements are never used at all Other 7% Requirements 47% Design 28% Implementation 18% Defects Always 7% Often 13% Sometimes 16% Rarely 19% Never 45% Waste
What is Agility?  A-gil-i-ty (ə-'ji-lə-tē) Property consisting of quickness, lightness, and ease of movement; To be very nimble  The ability to create and respond to change in order to profit in a turbulent global business environment  The ability to quickly reprioritize use of resources when requirements, technology, and knowledge shift  A very fast response to sudden market changes and emerging threats by intensive customer interaction  Use of evolutionary, incremental, and iterative delivery to converge on an optimal customer solution  Maximizing BUSINESS VALUE with right sized, just- enough, and just-in-time processes and documentation Highsmith, J. A. (2002). Agile software development ecosystems. Boston, MA: Addison-Wesley. 7  
What are Agile Methods? 8  People-centric way to create innovative solutions  Product-centric alternative to documents/process  Market-centric model to maximize business value Agile Manifesto. (2001). Manifesto for agile software development. Retrieved September 3, 2008, from http://www.agilemanifesto.org Rico, D. F., Sayani, H. H., & Sone, S. (2009). The business value of agile software methods. Ft. Lauderdale, FL: J. Ross Publishing. Rico, D. F. (2012). Agile conceptual model. Retrieved February 6, 2012, from http://davidfrico.com/agile-concept-model-1.pdf Customer Collaboration Working Software Individuals & Interactions Responding to Change valued more than valued more than valued more than valued more than Contracts Documentation Processes Project Plans  Frequent comm.  Close proximity  Regular meetings  Multiple comm. channels  Frequent feedback  Relationship strength  Leadership  Boundaries  Empowerment  Competence  Structure  Manageability/Motivation  Clear objectives  Small/feasible scope  Acceptance criteria  Timeboxed iterations  Valid operational results  Regular cadence/intervals  Org. flexibility  Mgt. flexibility  Process flexibility  System flexibility  Technology flexibility  Infrastructure flexibility  Contract compliance  Contract deliverables  Contract change orders  Lifecycle compliance  Process Maturity Level  Regulatory compliance  Document deliveries  Document comments  Document compliance  Cost Compliance  Scope Compliance  Schedule Compliance    
Network Computer Operating System Middleware Applications APIs GUI How Agile Works  Agile requirements implemented in slices vs. layers  User needs with higher business value are done first  Reduces cost & risk while increasing business success 9Shore, J. (2011). Evolutionary design illustrated. Norwegian Developers Conference, Oslo, Norway. Agile Traditional 1 2 3 Faster  Early ROI  Lower Costs  Fewer Defects  Manageable Risk  Better Performance  Smaller Attack Surface Late  No Value  Cost Overruns  Very Poor Quality  Uncontrollable Risk  Slowest Performance  More Security Incidents Seven Wastes 1.Rework 2.Motion 3.Waiting 4.Inventory 5.Transportation 6.Overprocessing 7.Overproduction MINIMIZES MAXIMIZES  JIT, Just-enough architecture  Early, in-process system V&V  Fast continuous improvement  Scalable to systems of systems  Maximizes successful outcomes  Myth of perfect architecture  Late big-bang integration tests  Year long improvement cycles  Breaks down on large projects  Undermines business success
Thousands of Tests Continuously Executed No More Late Big Bang Integration Agile Development Model  User needs designed & developed one-at-a-time  Changes automatically detected, built, and tested  System fully tested and deployed as changes occur 10Humble, J., & Farley, D. (2011). Continuous delivery. Boston, MA: Pearson Education. Duvall, P., Matyas, S., & Glover, A. (2006). Continuous integration. Boston, MA: Addison-Wesley. Build Integration Server Version Control Server Build Scripts UsesWatches Build Status ProvidesDeveloper A Developer B Developer C Commits Changes Commits Changes Commits Changes Builds Database Analysis Testing Reporting Documentation Deployment Early, Automated, Fast, Efficient, & Repeatable Constant Readiness State & CM Control Lean, Waste Free, Low WIP, No Deadlocked Test Queues Rapidly & Successfully Dev. Complex Systems
How Do Lean & Agile Intersect? 11  Agile is naturally lean and based on small batches  Agile directly supports six principles of lean thinking  Agile may be converted to a continuous flow system Womack, J. P., & Jones, D. T. (1996). Lean thinking: Banish waste and create wealth in your corporation. New York, NY: Free Press. Reinertsen, D. G. (2009). The principles of product development flow: Second generation lean product development. New York, NY: Celeritas. Reagan, R. B., & Rico, D. F. (2010). Lean and agile acquisition and systems engineering: A paradigm whose time has come. DoD AT&L Magazine, 39(6).    Economic View Decentralization Fast Feedback Control Cadence & Small Batches Manage Queues/ Exploit Variability WIP Constraints & Kanban Flow PrinciplesAgile Values Customer Collaboration Empowered Teams Iterative Delivery Responding to Change Lean Pillars Respect for People Continuous Improvement Customer Value Relationships Customer Pull Continuous Flow Perfection Value Stream Lean Principles  Customer relationships, satisfaction, trust, and loyalty  Team authority, empowerment, and resources  Team identification, cohesion, and communication Lean & Agile Practices  Product vision, mission, needs, and capabilities  Product scope, constraints, and business value  Product objectives, specifications, and performance  As is policies, processes, procedures, and instructions  To be business processes, flowcharts, and swim lanes  Initial workflow analysis, metrication, and optimization  Batch size, work in process, and artifact size constraints  Cadence, queue size, buffers, slack, and bottlenecks  Workflow, test, integration, and deployment automation  Roadmaps, releases, iterations, and product priorities  Epics, themes, feature sets, features, and user stories  Product demonstrations, feedback, and new backlogs  Refactor, test driven design, and continuous integration  Standups, retrospectives, and process improvements  Organization, project, and process adaptability/flexibility
What is Lean Development?  Lean (lēn): Thin, slim, slender, narrow, adequate, or just-enough; Without waste  A customer-driven product development process that delivers the maximum amount of business value  An economical way of planning and managing the development of complex new products and services  A product development process that is free of excess waste, capacity, and non-value adding activities  Just-enough, just-in-time, and right-sized product development processes, documentation, and tools  A product development approach that is adaptable to change in customer needs and market conditions 12  Womack, J. P., & Jones, D. T. (1996). Lean thinking: Banish waste and create wealth in your corporation. New York, NY: Free Press. Liker, J. K. (2004). The toyota way: 14 management principles from the world’s greatest manufacturer. New York, NY: McGraw Hill. Larman, C., & Vodde, B. (2008). Scaling lean and agile development: Thinking and organizational tools for large-scale scrum. Boston, MA: Addison-Wesley.
Lean Thinking 13  Term coined by John Krafcik of MIT in 1988  Taiichi Ohno of Toyota is credited with its ideas  Toyota Production System was adapted from Ford Womack, J. P., & Jones, D. T. (1996). Lean thinking: Banish waste and create wealth in your corporation. New York, NY: Free Press. Liker, J. K. (2004). The toyota way: 14 management principles from the world’s greatest manufacturer. New York, NY: McGraw Hill. Larman, C., & Vodde, B. (2008). Scaling lean and agile development: Thinking and organizational tools for large-scale scrum. Boston, MA: Addison-Wesley.
Lean Six Sigma 14  Created in late 1990s by Allied Signal and Maytag  Combination of Six Sigma and Lean Thinking  Focuses on eliminating waste vs. variation George, M. L. (2002). Lean six sigma: Combining six sigma quality with lean speed. New York, NY: McGraw-Hill.
Lean Product Development 15  Lean product development emerged in the 1980s  Adaptation of Toyota Production System (TPS)  “Toyota [New] Product Development System” Clark, K. B., & Fujimoto, T. (1991). Product development performance: Strategy, organization, and management in the world auto industry. Boston, MA: Harvard Business School Press. Lean Development Frequent set-up changes Lean Manufacturing Short manufacturing throughput time Reduced work-in-process inventory between manufacturing steps Frequent transfer of small batches of parts between manufacturing steps Reduced inventory requires slack resources and more information flow between steps Adaptability to changes in volume, product mix, and product design Broad task assignments for production workers gives higher productivity Focus on quick problem solving and continuous process improvement Simultaneous improvement in quality, delivery time, and manufacturing productivity Frequent product changes Short development time Reduced information inventory between development steps Frequent transfer of preliminary information between development steps Reduced development time requires slack resources and information flow between stages Adaptability to changes in product design, schedule, and cost targets Broad task assignments for engineers (developers) gives higher productivity Focus on frequent incremental innovation and continuous product and process improvement Simultaneous improvement in quality, development time, and development productivity
Lean Systems Engineering 16  Origin in MIT Lean Aerospace Initiative in 1992  Lean Systems Engineering WG formed in 2006  Lean Enablers for Systems Engineering in 2009 INCOSE. (2009). Lean enablers for systems engineering. Retrieved October 20, 2009, from http://www.incose.org/practice/techactivities/wg/leansewg. Value Map the Value Stream Flow Pull Perfection Respect for People Customer involvement Streamline development Deconflict suppliers Establish metrics Communicate effectively Achieve smooth flow Ensure program visibility Use lead Pull tasks as-needed Appoint a chief Eliminate waste Perform continuous improvement Create a learning environment Treat people as valuable assets Requirements engineering Business value analysis Program planning Map value streams Frontload program Program monitoring Clarify requirements Frontload architecture Coordinate activities Tailor program Continuous improvement Strive for excellence Perform lessons learned Develop communication plan Human resources Respect all people Strive for technical excellence
What is Kanban?  Kan-ban ('kæn-bæn): Signboard, billboard, signal cards; Lean, just-in-time system of production  A lean and just-in-time manufacturing process for regulating the flow of production based on demand  A pull-system philosophy of customized production vs. a push system of mass-market manufacturing  A set of principles for creating a lean, efficient, and waste-free product flow by limiting work-in-process  Use of simple organizational policy changes resulting in order-of-magnitude performance improvements  Framework for optimizing workflow that maximizes efficiency, product quality, and customer satisfaction 17  Kniberg, H., & Skarin, M. (2010). Kanban and scrum: Making the most of both. Toronto, ON: C4 Media, Inc. Ladas, C. (2008). Scrumban: Essays on kanban systems for lean software development. Seattle, WA: Modus Cooperandi. Anderson, D. J. (2010). Kanban: Successful evolutionary change for your technology business. Sequim, WA: Blue Hole Press.
Kanban for IT Projects 18  Adapted to IT by Dave Anderson in 2006  Activities, buffers, queues, WIP limits, tasks, etc.  Lean, JIT pull/demand system leading to high quality Anderson, D. J. (2010). Kanban: Successful evolutionary change for your technology business. Sequim, WA: Blue Hole Press.
Kanban Goals 19  Kanban initially seeks to change as little as possible  Change without resistance is the first Kanban goal  Focus on improving quality, lead time and morale Goal 2 Goal 3 Goal 4 Goal 5 Goal 6 Goal 7 Goal 8 Deliver high product quality (to build stakeholder trust) Reduce long lead times (and stabilize them) Achieve sustainable pace (work-life balance) Provide process slack (for process improvement) Simplify workload prioritization (of customer needs) Provide transparency (into design and operations) Strive for process maturity (to improve performance) Goal 1 Optimize existing processes (rather than change them) Anderson, D. J. (2010). Kanban: Successful evolutionary change for your technology business. Sequim, WA: Blue Hole Press.
Kanban Recipe for Success 20  Based on principles for product development flow  Uses operations and mathematical queue theory  Pragmatic operating principles for development Focus on Quality Reduce WIP Deliver Often Balance Demand Prioritize Attack Variability  Walkthroughs  Inspections  Technical reviews  Peer reviews  Pair programming  Test driven design  Continuous integration  Design patterns  Refactoring  Design simplicity  Usability engineering  Formal methods  Process flowcharts  Workflow analysis  Kanban boards  Limit work tasks  Limit queues  Limit buffers  Limit backlogs  Simple prioritization  Adequate resources  Process automation  Policy statements  Simplify process  Short releases  Short increments  Short iterations  Small releases  Frequent releases  Small batch sizes  Customer collaboration  Developer collaboration  Ample communication  Frequent builds  Deploy often  Automatic updates  Regulate inputs  Identify bottlenecks  Create slack  Limit work-in-process  Create pull system  Focus on precision  Focus on quality  Take pride in work  Improve morale  Learn new skills  Obtain training  Continuously improve  Prioritize inputs  Business focus-  Business value focus  Influence prioritization  Stabilize process  Build stakeholder trust  Perform risk analysis  Analyze demand  Evaluate size  Evaluate complexity  Market forecasting  Technology analysis  Work item size  Work item type mix  Service class mix  Irregular flow  Rework  Ambiguous reqmnts.  Expedited requests  Environment avail.  Market fluctuations  Coordination  Technological change  Skill/experience mix Anderson, D. J. (2010). Kanban: Successful evolutionary change for your technology business. Sequim, WA: Blue Hole Press.
Value Stream Mapping 21  Start by flow-charting the as-is product workflow  Add buffers and queues one feels are necessary  Add WIP limits to buffers, queues, and activity Anderson, D. J. (2010). Kanban: Successful evolutionary change for your technology business. Sequim, WA: Blue Hole Press.
22 Traditional vs. Agile Cumulative Flow Work(Story,Point,Task)orEffort(Week,Day,Hour) Time Unit (Roadmap, Release, Iteration, Month, Week, Day, Hour, etc.) Work(Story,Point,Task)orEffort(Week,Day,Hour) Time Unit (Roadmap, Release, Iteration, Month, Week, Day, Hour, etc.) Traditional Cumulative Flow Lean & Agile Cumulative Flow Anderson, D. J. (2004). Agile management for software engineering. Upper Saddle River, NJ: Pearson Education. Anderson, D. J. (2010). Kanban: Successful evolutionary change for your technology business. Sequim, WA: Blue Hole Press.  High work-in-process leads to longest lead times  Low work-in-process greatly reduces lead times  Results in better customer trust and satisfaction Work-in-Process
Scaled Lean & Agile Framework Beck, K., & Fowler, M. (2001). Planning extreme programming. Upper Saddle River, NJ: Addison-Wesley. Highsmith, J. A. (2010). Agile project management: Creating innovative products. Boston, MA: Pearson Education. Larman, C., & Vodde, B. (2010). Practices for scaling lean and agile development. Boston, MA: Addison-Wesley. Leffingwell, D. (2011). Agile software requirements: Lean requirements practices for teams, programs, and the enterprise. Boston, MA: Pearson Education.  Begins with a high-level product vision/architecture  Continues with needs development/release planning  Includes agile delivery teams to realize business value 23   
Lean & Agile Hybrid Methods 24 Shore, J., & Warden, S. (2008). The art of agile development. Sabastopol, CA: O'Reilly Media. Cockburn, A. (2007). Agile software development: The cooperative game. Boston, MA: Addison-Wesley. Shalloway, A., Beaver, G., & Trott, J. R. (2010). Lean-agile software development. Boston, MA: Addison-Wesley.  Scrum is a basic agile project management model  Scrum does not specify other critical functions  Scrum hybrids include necessary practices Enterprise Portfolio analysis Earned value mgt. Enterprise arch. Governance Scrum Sprint Planning Daily Scrum Sprint Review Retrospective XP Release planning Pair programming Continuous integ. Open workspaces Open Source Environments Components Frameworks Operating systems Other User exp. Security eng. Reliability eng. Safety analysis
Lean & Agile Recap  Agile methods DON’T mean deliver it now & fix it later  Lightweight, yet disciplined approach to development  Reduced cost, risk, & waste while improving quality 25 Rico, D. F. (2012). What’s really happening in agile methods: Its principles revisited? Retrieved June 6, 2012, from http://davidfrico.com/agile-principles.pdf Rico, D. F. (2012). The promises and pitfalls of agile methods. Retrieved February 6, 2013 from, http://davidfrico.com/agile-pros-cons.pdf Rico, D. F. (2012). How do lean & agile intersect? Retrieved February 6, 2013, from http://davidfrico.com/agile-concept-model-3.pdf What How Result Flexibility Use lightweight, yet disciplined processes and artifacts Low work-in-process Customer Involve customers early and often throughout development Early feedback Prioritize Identify highest-priority, value-adding business needs Focus resources Descope Descope complex programs by an order of magnitude Simplify problem Decompose Divide the remaining scope into smaller batches Manageable pieces Iterate Implement pieces one at a time over long periods of time Diffuse risk Leanness Architect and design the system one iteration at a time JIT waste-free design Swarm Implement each component in small cross-functional teams Knowledge transfer Collaborate Use frequent informal communications as often as possible Efficient data transfer Test Early Incrementally test each component as it is developed Early verification Test Often Perform system-level regression testing every few minutes Early validation Adapt Frequently identify optimal process and product solutions Improve performance                
Conclusion 26  Agility is the evolution of management thought  Confluence of traditional and non-traditional ideas  Improve performance by over an order of magnitude “The world of traditional methods belongs to yesterday” “Don’t waste your time using traditional methods on 21st century projects” Agile methods are …        Systems development approaches New product development approaches Expertly designed to be fast and efficient Intentionally lean and free of waste (muda) Systematic highly-disciplined approaches Capable of producing high quality systems Right-sized, just-enough, and just-in-time tools  Scalable to large, complex mission-critical systems  Designed to maximize business value for customers Wysocki, R.F. (2010). Adaptive project framework: Managing complexity in the face of uncertainty. Boston, MA: Pearson Education.  
Books on ROI of SW Methods  Guides to software methods for business leaders  Communicates business value of software methods  Rosetta stones to unlocking ROI of software methods  http://davidfrico.com/agile-book.htm (Description)  http://davidfrico.com/roi-book.htm (Description) 27

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Lean & Agile Methods & Frameworks: Perspectives on Kanban for IT

  • 1. Perspectives on Kanban for IT Dr. David F. Rico, PMP, ACP, CSM Twitter: @dr_david_f_rico Website: http://www.davidfrico.com LinkedIn: http://www.linkedin.com/in/davidfrico Facebook: http://www.facebook.com/profile.php?id=1540017424 Dave’s Agile Articles: http://davidfrico.com/agile-message.doc Lean & Agile Methods & Frameworks
  • 2. Author Background  DoD contractor with 28+ years of IT experience  B.S. Comp. Sci., M.S. Soft. Eng., & D.M. Info. Sys.  Large gov’t projects in U.S., Far/Mid-East, & Europe 2  Published six books & numerous journal articles  Adjunct at George Wash, UMBC, UMUC, Argosy  Agile Program Management & Lean Development  Specializes in metrics, models, & cost engineering  Six Sigma, CMMI, ISO 9001, DoDAF, & DoD 5000  Cloud Computing, SOA, Web Services, FOSS, etc.
  • 3. Today’s Whirlwind Environment 3 Overruns Attrition Escalation Runaways Cancellation Global Competition Demanding Customers Organization Downsizing System Complexity Technology Change Vague Requirements Work Life Imbalance Inefficiency High O&M Lower DoQ Vulnerable N-M Breach Reduced IT Budgets 81 Month Cycle Times Redundant Data Centers Lack of Interoperability Poor IT Security Overburdening Legacy Systems Obsolete Technology & Skills Pine, B. J. (1993). Mass customization: The new frontier in business competition. Boston, MA: Harvard Business School Press. Pontius, R. W. (2012). Acquisition of IT: Improving efficiency and effectiveness in IT acquisition in the DoD. Second Annual AFEI/NDIA Conference on Agile in DoD, Springfield, VA, USA.
  • 4. Traditional Projects 4  Big projects result in poor quality and scope changes  Productivity declines with long queues/wait times  Large projects are unsuccessful or canceled Jones, C. (1991). Applied software measurement: Assuring productivity and quality. New York, NY: McGraw-Hill. Size vs. Quality DefectDensity 0.00 3.20 6.40 9.60 12.80 16.00 0 2 6 25 100 400 Lines of Code (Thousands) Size vs. Productivity CodeProductionRate 0.00 1.00 2.00 3.00 4.00 5.00 0 2 6 25 100 400 Lines of Code (Thousands) Size vs. Requirements Growth Percentage 0% 8% 16% 24% 32% 40% 0 2 6 25 100 400 Lines of Code (Thousands) Size vs. Success Percentage 0% 12% 24% 36% 48% 60% 0 2 6 25 100 400 Lines of Code (Thousands)
  • 5. Global Project Failures 5 Standish Group. (2010). Chaos summary 2010. Boston, MA: Author. Sessions, R. (2009). The IT complexity crisis: Danger and opportunity. Houston, TX: Object Watch.  Challenged and failed projects hover at 67%  Big projects fail more often, which is 5% to 10%  Of $1.7T spent on IT projects, over $858B were lost 16% 53% 31% 27% 33% 40% 26% 46% 28% 28% 49% 23% 34% 51% 15% 29% 53% 18% 35% 46% 19% 32% 44% 24% 33% 41% 26% 0% 20% 40% 60% 80% 100% 1994 1996 1998 2000 2002 2004 2006 2008 2010 Year Successful Challenged Failed $0.0 $0.4 $0.7 $1.1 $1.4 $1.8 2002 2003 2004 2005 2006 2007 2008 2009 2010 Trillions(USDollars) Expenditures Failed Investments
  • 6. Requirements Defects & Waste 6 Sheldon, F. T. et al. (1992). Reliability measurement: From theory to practice. IEEE Software, 9(4), 13-20 Johnson, J. (2002). ROI: It's your job. Extreme Programming 2002 Conference, Alghero, Sardinia, Italy.  Requirements defects are #1 reason projects fail  Traditional projects specify too many requirements  More than 65% of requirements are never used at all Other 7% Requirements 47% Design 28% Implementation 18% Defects Always 7% Often 13% Sometimes 16% Rarely 19% Never 45% Waste
  • 7. What is Agility?  A-gil-i-ty (ə-'ji-lə-tē) Property consisting of quickness, lightness, and ease of movement; To be very nimble  The ability to create and respond to change in order to profit in a turbulent global business environment  The ability to quickly reprioritize use of resources when requirements, technology, and knowledge shift  A very fast response to sudden market changes and emerging threats by intensive customer interaction  Use of evolutionary, incremental, and iterative delivery to converge on an optimal customer solution  Maximizing BUSINESS VALUE with right sized, just- enough, and just-in-time processes and documentation Highsmith, J. A. (2002). Agile software development ecosystems. Boston, MA: Addison-Wesley. 7  
  • 8. What are Agile Methods? 8  People-centric way to create innovative solutions  Product-centric alternative to documents/process  Market-centric model to maximize business value Agile Manifesto. (2001). Manifesto for agile software development. Retrieved September 3, 2008, from http://www.agilemanifesto.org Rico, D. F., Sayani, H. H., & Sone, S. (2009). The business value of agile software methods. Ft. Lauderdale, FL: J. Ross Publishing. Rico, D. F. (2012). Agile conceptual model. Retrieved February 6, 2012, from http://davidfrico.com/agile-concept-model-1.pdf Customer Collaboration Working Software Individuals & Interactions Responding to Change valued more than valued more than valued more than valued more than Contracts Documentation Processes Project Plans  Frequent comm.  Close proximity  Regular meetings  Multiple comm. channels  Frequent feedback  Relationship strength  Leadership  Boundaries  Empowerment  Competence  Structure  Manageability/Motivation  Clear objectives  Small/feasible scope  Acceptance criteria  Timeboxed iterations  Valid operational results  Regular cadence/intervals  Org. flexibility  Mgt. flexibility  Process flexibility  System flexibility  Technology flexibility  Infrastructure flexibility  Contract compliance  Contract deliverables  Contract change orders  Lifecycle compliance  Process Maturity Level  Regulatory compliance  Document deliveries  Document comments  Document compliance  Cost Compliance  Scope Compliance  Schedule Compliance    
  • 9. Network Computer Operating System Middleware Applications APIs GUI How Agile Works  Agile requirements implemented in slices vs. layers  User needs with higher business value are done first  Reduces cost & risk while increasing business success 9Shore, J. (2011). Evolutionary design illustrated. Norwegian Developers Conference, Oslo, Norway. Agile Traditional 1 2 3 Faster  Early ROI  Lower Costs  Fewer Defects  Manageable Risk  Better Performance  Smaller Attack Surface Late  No Value  Cost Overruns  Very Poor Quality  Uncontrollable Risk  Slowest Performance  More Security Incidents Seven Wastes 1.Rework 2.Motion 3.Waiting 4.Inventory 5.Transportation 6.Overprocessing 7.Overproduction MINIMIZES MAXIMIZES  JIT, Just-enough architecture  Early, in-process system V&V  Fast continuous improvement  Scalable to systems of systems  Maximizes successful outcomes  Myth of perfect architecture  Late big-bang integration tests  Year long improvement cycles  Breaks down on large projects  Undermines business success
  • 10. Thousands of Tests Continuously Executed No More Late Big Bang Integration Agile Development Model  User needs designed & developed one-at-a-time  Changes automatically detected, built, and tested  System fully tested and deployed as changes occur 10Humble, J., & Farley, D. (2011). Continuous delivery. Boston, MA: Pearson Education. Duvall, P., Matyas, S., & Glover, A. (2006). Continuous integration. Boston, MA: Addison-Wesley. Build Integration Server Version Control Server Build Scripts UsesWatches Build Status ProvidesDeveloper A Developer B Developer C Commits Changes Commits Changes Commits Changes Builds Database Analysis Testing Reporting Documentation Deployment Early, Automated, Fast, Efficient, & Repeatable Constant Readiness State & CM Control Lean, Waste Free, Low WIP, No Deadlocked Test Queues Rapidly & Successfully Dev. Complex Systems
  • 11. How Do Lean & Agile Intersect? 11  Agile is naturally lean and based on small batches  Agile directly supports six principles of lean thinking  Agile may be converted to a continuous flow system Womack, J. P., & Jones, D. T. (1996). Lean thinking: Banish waste and create wealth in your corporation. New York, NY: Free Press. Reinertsen, D. G. (2009). The principles of product development flow: Second generation lean product development. New York, NY: Celeritas. Reagan, R. B., & Rico, D. F. (2010). Lean and agile acquisition and systems engineering: A paradigm whose time has come. DoD AT&L Magazine, 39(6).    Economic View Decentralization Fast Feedback Control Cadence & Small Batches Manage Queues/ Exploit Variability WIP Constraints & Kanban Flow PrinciplesAgile Values Customer Collaboration Empowered Teams Iterative Delivery Responding to Change Lean Pillars Respect for People Continuous Improvement Customer Value Relationships Customer Pull Continuous Flow Perfection Value Stream Lean Principles  Customer relationships, satisfaction, trust, and loyalty  Team authority, empowerment, and resources  Team identification, cohesion, and communication Lean & Agile Practices  Product vision, mission, needs, and capabilities  Product scope, constraints, and business value  Product objectives, specifications, and performance  As is policies, processes, procedures, and instructions  To be business processes, flowcharts, and swim lanes  Initial workflow analysis, metrication, and optimization  Batch size, work in process, and artifact size constraints  Cadence, queue size, buffers, slack, and bottlenecks  Workflow, test, integration, and deployment automation  Roadmaps, releases, iterations, and product priorities  Epics, themes, feature sets, features, and user stories  Product demonstrations, feedback, and new backlogs  Refactor, test driven design, and continuous integration  Standups, retrospectives, and process improvements  Organization, project, and process adaptability/flexibility
  • 12. What is Lean Development?  Lean (lēn): Thin, slim, slender, narrow, adequate, or just-enough; Without waste  A customer-driven product development process that delivers the maximum amount of business value  An economical way of planning and managing the development of complex new products and services  A product development process that is free of excess waste, capacity, and non-value adding activities  Just-enough, just-in-time, and right-sized product development processes, documentation, and tools  A product development approach that is adaptable to change in customer needs and market conditions 12  Womack, J. P., & Jones, D. T. (1996). Lean thinking: Banish waste and create wealth in your corporation. New York, NY: Free Press. Liker, J. K. (2004). The toyota way: 14 management principles from the world’s greatest manufacturer. New York, NY: McGraw Hill. Larman, C., & Vodde, B. (2008). Scaling lean and agile development: Thinking and organizational tools for large-scale scrum. Boston, MA: Addison-Wesley.
  • 13. Lean Thinking 13  Term coined by John Krafcik of MIT in 1988  Taiichi Ohno of Toyota is credited with its ideas  Toyota Production System was adapted from Ford Womack, J. P., & Jones, D. T. (1996). Lean thinking: Banish waste and create wealth in your corporation. New York, NY: Free Press. Liker, J. K. (2004). The toyota way: 14 management principles from the world’s greatest manufacturer. New York, NY: McGraw Hill. Larman, C., & Vodde, B. (2008). Scaling lean and agile development: Thinking and organizational tools for large-scale scrum. Boston, MA: Addison-Wesley.
  • 14. Lean Six Sigma 14  Created in late 1990s by Allied Signal and Maytag  Combination of Six Sigma and Lean Thinking  Focuses on eliminating waste vs. variation George, M. L. (2002). Lean six sigma: Combining six sigma quality with lean speed. New York, NY: McGraw-Hill.
  • 15. Lean Product Development 15  Lean product development emerged in the 1980s  Adaptation of Toyota Production System (TPS)  “Toyota [New] Product Development System” Clark, K. B., & Fujimoto, T. (1991). Product development performance: Strategy, organization, and management in the world auto industry. Boston, MA: Harvard Business School Press. Lean Development Frequent set-up changes Lean Manufacturing Short manufacturing throughput time Reduced work-in-process inventory between manufacturing steps Frequent transfer of small batches of parts between manufacturing steps Reduced inventory requires slack resources and more information flow between steps Adaptability to changes in volume, product mix, and product design Broad task assignments for production workers gives higher productivity Focus on quick problem solving and continuous process improvement Simultaneous improvement in quality, delivery time, and manufacturing productivity Frequent product changes Short development time Reduced information inventory between development steps Frequent transfer of preliminary information between development steps Reduced development time requires slack resources and information flow between stages Adaptability to changes in product design, schedule, and cost targets Broad task assignments for engineers (developers) gives higher productivity Focus on frequent incremental innovation and continuous product and process improvement Simultaneous improvement in quality, development time, and development productivity
  • 16. Lean Systems Engineering 16  Origin in MIT Lean Aerospace Initiative in 1992  Lean Systems Engineering WG formed in 2006  Lean Enablers for Systems Engineering in 2009 INCOSE. (2009). Lean enablers for systems engineering. Retrieved October 20, 2009, from http://www.incose.org/practice/techactivities/wg/leansewg. Value Map the Value Stream Flow Pull Perfection Respect for People Customer involvement Streamline development Deconflict suppliers Establish metrics Communicate effectively Achieve smooth flow Ensure program visibility Use lead Pull tasks as-needed Appoint a chief Eliminate waste Perform continuous improvement Create a learning environment Treat people as valuable assets Requirements engineering Business value analysis Program planning Map value streams Frontload program Program monitoring Clarify requirements Frontload architecture Coordinate activities Tailor program Continuous improvement Strive for excellence Perform lessons learned Develop communication plan Human resources Respect all people Strive for technical excellence
  • 17. What is Kanban?  Kan-ban ('kæn-bæn): Signboard, billboard, signal cards; Lean, just-in-time system of production  A lean and just-in-time manufacturing process for regulating the flow of production based on demand  A pull-system philosophy of customized production vs. a push system of mass-market manufacturing  A set of principles for creating a lean, efficient, and waste-free product flow by limiting work-in-process  Use of simple organizational policy changes resulting in order-of-magnitude performance improvements  Framework for optimizing workflow that maximizes efficiency, product quality, and customer satisfaction 17  Kniberg, H., & Skarin, M. (2010). Kanban and scrum: Making the most of both. Toronto, ON: C4 Media, Inc. Ladas, C. (2008). Scrumban: Essays on kanban systems for lean software development. Seattle, WA: Modus Cooperandi. Anderson, D. J. (2010). Kanban: Successful evolutionary change for your technology business. Sequim, WA: Blue Hole Press.
  • 18. Kanban for IT Projects 18  Adapted to IT by Dave Anderson in 2006  Activities, buffers, queues, WIP limits, tasks, etc.  Lean, JIT pull/demand system leading to high quality Anderson, D. J. (2010). Kanban: Successful evolutionary change for your technology business. Sequim, WA: Blue Hole Press.
  • 19. Kanban Goals 19  Kanban initially seeks to change as little as possible  Change without resistance is the first Kanban goal  Focus on improving quality, lead time and morale Goal 2 Goal 3 Goal 4 Goal 5 Goal 6 Goal 7 Goal 8 Deliver high product quality (to build stakeholder trust) Reduce long lead times (and stabilize them) Achieve sustainable pace (work-life balance) Provide process slack (for process improvement) Simplify workload prioritization (of customer needs) Provide transparency (into design and operations) Strive for process maturity (to improve performance) Goal 1 Optimize existing processes (rather than change them) Anderson, D. J. (2010). Kanban: Successful evolutionary change for your technology business. Sequim, WA: Blue Hole Press.
  • 20. Kanban Recipe for Success 20  Based on principles for product development flow  Uses operations and mathematical queue theory  Pragmatic operating principles for development Focus on Quality Reduce WIP Deliver Often Balance Demand Prioritize Attack Variability  Walkthroughs  Inspections  Technical reviews  Peer reviews  Pair programming  Test driven design  Continuous integration  Design patterns  Refactoring  Design simplicity  Usability engineering  Formal methods  Process flowcharts  Workflow analysis  Kanban boards  Limit work tasks  Limit queues  Limit buffers  Limit backlogs  Simple prioritization  Adequate resources  Process automation  Policy statements  Simplify process  Short releases  Short increments  Short iterations  Small releases  Frequent releases  Small batch sizes  Customer collaboration  Developer collaboration  Ample communication  Frequent builds  Deploy often  Automatic updates  Regulate inputs  Identify bottlenecks  Create slack  Limit work-in-process  Create pull system  Focus on precision  Focus on quality  Take pride in work  Improve morale  Learn new skills  Obtain training  Continuously improve  Prioritize inputs  Business focus-  Business value focus  Influence prioritization  Stabilize process  Build stakeholder trust  Perform risk analysis  Analyze demand  Evaluate size  Evaluate complexity  Market forecasting  Technology analysis  Work item size  Work item type mix  Service class mix  Irregular flow  Rework  Ambiguous reqmnts.  Expedited requests  Environment avail.  Market fluctuations  Coordination  Technological change  Skill/experience mix Anderson, D. J. (2010). Kanban: Successful evolutionary change for your technology business. Sequim, WA: Blue Hole Press.
  • 21. Value Stream Mapping 21  Start by flow-charting the as-is product workflow  Add buffers and queues one feels are necessary  Add WIP limits to buffers, queues, and activity Anderson, D. J. (2010). Kanban: Successful evolutionary change for your technology business. Sequim, WA: Blue Hole Press.
  • 22. 22 Traditional vs. Agile Cumulative Flow Work(Story,Point,Task)orEffort(Week,Day,Hour) Time Unit (Roadmap, Release, Iteration, Month, Week, Day, Hour, etc.) Work(Story,Point,Task)orEffort(Week,Day,Hour) Time Unit (Roadmap, Release, Iteration, Month, Week, Day, Hour, etc.) Traditional Cumulative Flow Lean & Agile Cumulative Flow Anderson, D. J. (2004). Agile management for software engineering. Upper Saddle River, NJ: Pearson Education. Anderson, D. J. (2010). Kanban: Successful evolutionary change for your technology business. Sequim, WA: Blue Hole Press.  High work-in-process leads to longest lead times  Low work-in-process greatly reduces lead times  Results in better customer trust and satisfaction Work-in-Process
  • 23. Scaled Lean & Agile Framework Beck, K., & Fowler, M. (2001). Planning extreme programming. Upper Saddle River, NJ: Addison-Wesley. Highsmith, J. A. (2010). Agile project management: Creating innovative products. Boston, MA: Pearson Education. Larman, C., & Vodde, B. (2010). Practices for scaling lean and agile development. Boston, MA: Addison-Wesley. Leffingwell, D. (2011). Agile software requirements: Lean requirements practices for teams, programs, and the enterprise. Boston, MA: Pearson Education.  Begins with a high-level product vision/architecture  Continues with needs development/release planning  Includes agile delivery teams to realize business value 23   
  • 24. Lean & Agile Hybrid Methods 24 Shore, J., & Warden, S. (2008). The art of agile development. Sabastopol, CA: O'Reilly Media. Cockburn, A. (2007). Agile software development: The cooperative game. Boston, MA: Addison-Wesley. Shalloway, A., Beaver, G., & Trott, J. R. (2010). Lean-agile software development. Boston, MA: Addison-Wesley.  Scrum is a basic agile project management model  Scrum does not specify other critical functions  Scrum hybrids include necessary practices Enterprise Portfolio analysis Earned value mgt. Enterprise arch. Governance Scrum Sprint Planning Daily Scrum Sprint Review Retrospective XP Release planning Pair programming Continuous integ. Open workspaces Open Source Environments Components Frameworks Operating systems Other User exp. Security eng. Reliability eng. Safety analysis
  • 25. Lean & Agile Recap  Agile methods DON’T mean deliver it now & fix it later  Lightweight, yet disciplined approach to development  Reduced cost, risk, & waste while improving quality 25 Rico, D. F. (2012). What’s really happening in agile methods: Its principles revisited? Retrieved June 6, 2012, from http://davidfrico.com/agile-principles.pdf Rico, D. F. (2012). The promises and pitfalls of agile methods. Retrieved February 6, 2013 from, http://davidfrico.com/agile-pros-cons.pdf Rico, D. F. (2012). How do lean & agile intersect? Retrieved February 6, 2013, from http://davidfrico.com/agile-concept-model-3.pdf What How Result Flexibility Use lightweight, yet disciplined processes and artifacts Low work-in-process Customer Involve customers early and often throughout development Early feedback Prioritize Identify highest-priority, value-adding business needs Focus resources Descope Descope complex programs by an order of magnitude Simplify problem Decompose Divide the remaining scope into smaller batches Manageable pieces Iterate Implement pieces one at a time over long periods of time Diffuse risk Leanness Architect and design the system one iteration at a time JIT waste-free design Swarm Implement each component in small cross-functional teams Knowledge transfer Collaborate Use frequent informal communications as often as possible Efficient data transfer Test Early Incrementally test each component as it is developed Early verification Test Often Perform system-level regression testing every few minutes Early validation Adapt Frequently identify optimal process and product solutions Improve performance                
  • 26. Conclusion 26  Agility is the evolution of management thought  Confluence of traditional and non-traditional ideas  Improve performance by over an order of magnitude “The world of traditional methods belongs to yesterday” “Don’t waste your time using traditional methods on 21st century projects” Agile methods are …        Systems development approaches New product development approaches Expertly designed to be fast and efficient Intentionally lean and free of waste (muda) Systematic highly-disciplined approaches Capable of producing high quality systems Right-sized, just-enough, and just-in-time tools  Scalable to large, complex mission-critical systems  Designed to maximize business value for customers Wysocki, R.F. (2010). Adaptive project framework: Managing complexity in the face of uncertainty. Boston, MA: Pearson Education.  
  • 27. Books on ROI of SW Methods  Guides to software methods for business leaders  Communicates business value of software methods  Rosetta stones to unlocking ROI of software methods  http://davidfrico.com/agile-book.htm (Description)  http://davidfrico.com/roi-book.htm (Description) 27