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Kanban Basics for Beginners
                     kaizen WIP kaikaku flow value
                     stream mapping visualize
                     work flow cycle
                     time lead time throughput
                     TPS   build failed CFD


created by
Zsolt Fabók (me@zsoltfabok.com)


                                    June 22, 2011 @
Our goal for today

 ● Have an idea where Kanban comes from

 ● Understand the core principles of Kanban

 ● Going down the Rabbit's hole

 ● Discuss open questions

 ● The coin game
Before saying anything:




"I promise not to exclude from consideration any idea based on its source,
but to consider ideas across schools and heritages in order to find the
ones that best suit the current situation." [1]

This means the end of statements like “That’s no good – it’s not
agile / object-oriented / pure / etc…”, but rather a discussion
about whether idea (agile or plan-driven or impure or whatever)
works well in the conditions of the moment.
Chapter I




Origin
A dream business model:




 ...make an idea possible with the lowest amount of work
Unfortunately, reality is a little bit different...




         +      +



 ...you have to invest some money, but - and I don't want
 to ruin your day - , but you'll have to do some work as
 well
 Building software is very expensive, so we need a
 methodology which makes it less expensive
Between 1940 and 1950, Japan and Toyota
weren't in the best economical condition

But Toyota had a plan to survive (TPS, [2]):


  ● Maximize customer value while minimizing waste

  ● Improve the production process continuously

  ● Bring out the best from the people
This is the 8th slide and no Kanban so far...

                   WHERE IS IT?
My apologies... it is there... at the X
By definition, Kanban is a pull-based inventory
control system ([2])

Why did Toyota need an inventory control
system?

 Because inventory is waste, and as such, it
 needs to be eliminated


(warning: according to Wikipedia, Kanban isn't an inventory control system, but that
article hasn't been verified yet [3])
Still nothing usable on Kanban, you are talking
about waste...
          All right, I'll play along... WHERE
          IS IT, AND WHAT IS IT?
As you wish...
                                It is here


              +      +



There are three kinds of waste:

  ● Muda: damage, wastage, loss, unnecessary expenditure, unnecessary effort

  ● Muri: overload, overburden, congestion, perversity

  ● Mura: Unevenness, imbalance, fluctuation, irregularity, deviation
Lean thinking and Kanban helps Toyota deliver
quality products with lower investment


Maybe it could work for software development as
well, maybe...


It is working for the chef...


Let's see how it works in software development...
Chapter II




Principles
First principle: visualize the flow


                  This is the flow, your
                  actual process!




 There is no such thing as a standalone Kanban system

 It is always applied on a software development process
 like Waterfall, Scrum, XP, DSDM or a company-specific
 one
I visualize my flow in a more transparent way




 ...because "arrows" and non-visible process states won't
 help you find waste and improvement areas
What do you see on this picture?




 I see a huge inventory (11 items), and no customer
 value
Block your flow so that items will push each other
out...




  regular approach               single piece flow
Second Principle: Limit the actual work in progress
(WIP)




  Exercise: what needs to be done if the customer wants item
  'F' delivered in three days?
What shall I do when I become available?




 ● start something new

  ● or help finish something
(preferred)

                                   priority
So far so good, when will I see any income?

  In this case, let's say that item
  'A' has been finished in 6
  days...

  ...in 6 days?

              ...that's the lead time          lead time
  Is this enough? According to Lean, of
  course...

  The answer is: no. You should improve it continuously
  (Kaizen) or drastically (Kaikaku)
Third Principle: continuous improvement for
faster delivery and faster feedback




   queued time
   working
   time
      cycle time
      lead time
Chapter III




The rabbit's hole
The flow is continuous, it is always changing, like
a river. There is no other choice than adaptation




                      =




                          [re] visit, [re] prioritize, improve
                          everywhere
For faster delivery:
       ■ Use MMF (Minimal Marketable Function)
         it is small, travels fast through the system, but still
         holds customer value

       ■ Apply Little's Law
         small batches also travel fast through the system,
         and it's better to have a fresh apple every day, than
         a bucket of rotten apples at the end of the week
       ■ Limit the amount of avatars
         people will do less context switching, which
         increases the speed of the items they are working
         on [4]
Prioritise by:
       ■ business value

       ■ cost of delay

       ■ service level agreement (SLA)

       ■ actual resource availability

       ■ current throughput and load
Look back, evaluate, and improve:




 source: [5]
Closing words

 ● Don't work on a feature that nobody wants

 ● Don't write a document that nobody will read

 ● Don't write code that nobody can/will test

 ● Don't test a feature that cannot be deployed



  And there is a huge difference between being efficient
  and effective [6]
Thank you very much for your attention!




For more Kanban-related topics, check out my website:
               http://zsoltfabok.com/
Chapter IV




              The Coin Game



source: [7]
References:
[1] http://alistair.cockburn.us/Oath+of+Non-Allegiance

[2] http://www.kellogg.northwestern.edu/course/opns430/modules/
lean_operations/ohno-tps.pdf

[3] http://en.wikipedia.org/wiki/Kanban

[4] http://www.zsoltfabok.com/blog/2010/06/more-kanban-numbers/

[5] http://paulklipp.com/images/
Interpreting_a_Cumulative_Flow_Diagram.jpg

[6] http://leanandkanban.wordpress.com/2011/03/22/lean-is-about-
eliminating-waste-right/

[7] http://xtinaq.wiki.zoho.com/CoinGame.html
Recommended websites:

http://blog.crisp.se/henrikkniberg

http://www.limitedwipsociety.org/

http://agilemanagement.net/

http://leanandkanban.wordpress.com/
Recommended books:

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Kanban Basics for Beginners

  • 1. Kanban Basics for Beginners kaizen WIP kaikaku flow value stream mapping visualize work flow cycle time lead time throughput TPS build failed CFD created by Zsolt Fabók (me@zsoltfabok.com) June 22, 2011 @
  • 2. Our goal for today ● Have an idea where Kanban comes from ● Understand the core principles of Kanban ● Going down the Rabbit's hole ● Discuss open questions ● The coin game
  • 3. Before saying anything: "I promise not to exclude from consideration any idea based on its source, but to consider ideas across schools and heritages in order to find the ones that best suit the current situation." [1] This means the end of statements like “That’s no good – it’s not agile / object-oriented / pure / etc…”, but rather a discussion about whether idea (agile or plan-driven or impure or whatever) works well in the conditions of the moment.
  • 5. A dream business model: ...make an idea possible with the lowest amount of work
  • 6. Unfortunately, reality is a little bit different... + + ...you have to invest some money, but - and I don't want to ruin your day - , but you'll have to do some work as well Building software is very expensive, so we need a methodology which makes it less expensive
  • 7. Between 1940 and 1950, Japan and Toyota weren't in the best economical condition But Toyota had a plan to survive (TPS, [2]): ● Maximize customer value while minimizing waste ● Improve the production process continuously ● Bring out the best from the people
  • 8. This is the 8th slide and no Kanban so far... WHERE IS IT?
  • 9. My apologies... it is there... at the X
  • 10. By definition, Kanban is a pull-based inventory control system ([2]) Why did Toyota need an inventory control system? Because inventory is waste, and as such, it needs to be eliminated (warning: according to Wikipedia, Kanban isn't an inventory control system, but that article hasn't been verified yet [3])
  • 11. Still nothing usable on Kanban, you are talking about waste... All right, I'll play along... WHERE IS IT, AND WHAT IS IT?
  • 12. As you wish... It is here + + There are three kinds of waste: ● Muda: damage, wastage, loss, unnecessary expenditure, unnecessary effort ● Muri: overload, overburden, congestion, perversity ● Mura: Unevenness, imbalance, fluctuation, irregularity, deviation
  • 13. Lean thinking and Kanban helps Toyota deliver quality products with lower investment Maybe it could work for software development as well, maybe... It is working for the chef... Let's see how it works in software development...
  • 15. First principle: visualize the flow This is the flow, your actual process! There is no such thing as a standalone Kanban system It is always applied on a software development process like Waterfall, Scrum, XP, DSDM or a company-specific one
  • 16. I visualize my flow in a more transparent way ...because "arrows" and non-visible process states won't help you find waste and improvement areas
  • 17. What do you see on this picture? I see a huge inventory (11 items), and no customer value
  • 18. Block your flow so that items will push each other out... regular approach single piece flow
  • 19. Second Principle: Limit the actual work in progress (WIP) Exercise: what needs to be done if the customer wants item 'F' delivered in three days?
  • 20. What shall I do when I become available? ● start something new ● or help finish something (preferred) priority
  • 21. So far so good, when will I see any income? In this case, let's say that item 'A' has been finished in 6 days... ...in 6 days? ...that's the lead time lead time Is this enough? According to Lean, of course... The answer is: no. You should improve it continuously (Kaizen) or drastically (Kaikaku)
  • 22. Third Principle: continuous improvement for faster delivery and faster feedback queued time working time cycle time lead time
  • 24. The flow is continuous, it is always changing, like a river. There is no other choice than adaptation = [re] visit, [re] prioritize, improve everywhere
  • 25. For faster delivery: ■ Use MMF (Minimal Marketable Function) it is small, travels fast through the system, but still holds customer value ■ Apply Little's Law small batches also travel fast through the system, and it's better to have a fresh apple every day, than a bucket of rotten apples at the end of the week ■ Limit the amount of avatars people will do less context switching, which increases the speed of the items they are working on [4]
  • 26. Prioritise by: ■ business value ■ cost of delay ■ service level agreement (SLA) ■ actual resource availability ■ current throughput and load
  • 27. Look back, evaluate, and improve: source: [5]
  • 28. Closing words ● Don't work on a feature that nobody wants ● Don't write a document that nobody will read ● Don't write code that nobody can/will test ● Don't test a feature that cannot be deployed And there is a huge difference between being efficient and effective [6]
  • 29. Thank you very much for your attention! For more Kanban-related topics, check out my website: http://zsoltfabok.com/
  • 30. Chapter IV The Coin Game source: [7]
  • 31. References: [1] http://alistair.cockburn.us/Oath+of+Non-Allegiance [2] http://www.kellogg.northwestern.edu/course/opns430/modules/ lean_operations/ohno-tps.pdf [3] http://en.wikipedia.org/wiki/Kanban [4] http://www.zsoltfabok.com/blog/2010/06/more-kanban-numbers/ [5] http://paulklipp.com/images/ Interpreting_a_Cumulative_Flow_Diagram.jpg [6] http://leanandkanban.wordpress.com/2011/03/22/lean-is-about- eliminating-waste-right/ [7] http://xtinaq.wiki.zoho.com/CoinGame.html