Technical leadership in a world that values business results.

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1 Technical leadership in a world that values business results. May 1, 2015 Victor Moudgil MS, MBA Certified Lean Six Sigma Black Belt Victor.Moudgil@gmail.com The content of this document and presentation do not represent the official views or policies of any Government agency or Public corporation.

Tools & Deliverables Activities Notional view of ITIL (Service Delivery), Lean, Six Sigma.

2 Proactive Analyze Trends Set Thresholds Service Catalog in Place Service Driven IT org.

solutions Level 3 Level 4 IT is a Strategic partner Proactive Continuous Improvement Level 5 Level 1

business case Define Scope Identify team members and resources Understand the process and its current

Collect cycle time data Identify the Root Cause Clarify project and business case Define Scope Identify

3 Tools & Deliverables Activities Notional view of ITIL (Service Delivery), Lean, Six Sigma. Value Driven Chaotic Ad Hoc Unpredictable Undocumented Reactive Fighting Fires Component Focused Level 2 Proactive Analyze Trends Set Thresholds Service Catalog in Place Service Driven IT org. run as a Service Op. Req. designed into dev. solutions Level 3 Level 4 IT is a Strategic partner Proactive Continuous Improvement Level 5 Level 1 Diagnostic Design Pilot Roll out Define Measure Analyze Improve Control Goal: Clarify project and business case Define Scope Identify team members and resources Understand the process and its current performance Identify the Metrics Identify the Key Drivers Pilot the improvements Implement the Solution Identify the prob. Identify critical requirements Identify team members Create the Baseline Collect the Customer data Collect cycle time data Identify the Root Cause Clarify project and business case Define Scope Identify team members and resources Finalize SOP Finalize Metrics Complete a one KANO Five Why s TO-BE Process Map page project charter SIPOC (Suppliers, T.I.M.W.O.O.D Brainstorming Dashboards (C) 2015 V. Moudgil Input, Process, Output, FMEA Poke Yoke 3 Complete RACI Control) Pareto Charts 2015 VM

4 Agenda Tools : Assure a proper understanding your project Develop a Simple one page Project Charter Develop a SIPOC Help to identify if the project was a success Current state Map Quantify the VOC and VOB KANO 5 Why s Classifying opportunities for improvement using a lean lens TIMWOOD for Service TO-BE process map Brainstorming (C) 2015 V. Moudgil 4

6 Addressing the 1 st Core Challenge: Project Charter 1. What is the benefit of doing this project? What pain is our customer experiencing? 2. How do you measure success? What are the specific metrics for success? 3. What is within scope? What is not within the scope of this project? 4. Who are the team members and what are their roles? 1. Responsible: Those who do the work to complete the task. 2. Accountable: The individual ultimately responsible for the success of the project. Only one. 3. Consulted: Subject matter experts 4. Informed: Individuals kept up to date. (C) 2015 V. Moudgil 6

7 Exercise (2 minutes) Pick a project either one you did previously or a current project Discuss the charter questions with the person to your left. Take 3 minutes per person to answer the charter questions. I ll time you. (C) 2015 V. Moudgil 7

8 Addressing the 1 st Core Challenge: SIPOC Suppliers The individual or Organization that provides the input for the process Input What are the inputs being provided Materials Resources etc. Process What is the 60K level view of the process. Identify the major 5-8 steps of the process. Output (Deliverable) What does the process produce or deliver. Customer To whom do you deliver the output. Start Research cars of interest to you Test drive cars Select one car Get financing Purchase car (C) 2015 V. Moudgil 8 End

11 Addressing the 2 nd Core Challenge: How to demonstrate credible gains? Need a simple, reasonably complete way to quantify the way that work currently happens: Document baseline performance Need a way to understand the gap between our current state and where the Team/Project needs to be in the future. (C) 2015 V. Moudgil 11

13 Addressing the 2 nd Core Challenge: Cont. These are all great artifacts that can be used to answer these questions if your fulltime job is process improvement but what you really need is a simple artifact that captures some basic information: 1)You need to understand the current process the good the bad and the ugly. 2)You need a notion of the time it takes to complete the work 3)You need a notion of the key players involved 4)You need a notion of the cost (C) 2015 V. Moudgil 13

14 Notional Process View Customer Request Management HW ORG. OS. ORG COTS ORG. Custom App. Install ORG. QA ORG.... Req. Virtual Server Validate incoming request Capture HW resources -Required. # of CPU s -Memory -Storage -Spin up HW Install OS Install: COTS 1 COTS 2 COTS 3... Install Custom App. 1 App. 2. App. 3. Validate the HW/SW Release Virtual Server to customer (C) 2015 V. Moudgil 14

15 Notional Timeline and Key Events Customer Request Management HW ORG. OS. ORG COTS ORG. Custom App. Install ORG. QA ORG.... Req. Virtual Server 15 Days Validate incoming request Capture HW resources -Required. # of CPU s -Memory -Storage -Spin up HW 5 days Install OS 3 Days Install: COTS 1 COTS 2 COTS Days Install Custom App. 1 App. 2. App. 3. Validate the HW/SW 3 Days Release Virtual Server to customer 10 Days (C) 2015 V. Moudgil 15 Total Cycle Time = 40 Days

16 Additional detail for Notional Timeline and Key Events Customer Request Management HW ORG. OS. ORG COTS ORG. Custom App. Install ORG. QA ORG.... Req. Virtual Server 8 Days Validate Incoming request to assure completeness 5 Days 2 Days Steering committee to get Final approval for request (C) 2015 V. Moudgil 16

18 Addressing the 3 rd Challenge: Voice of the Customer (VOC) KANO model It provides a simple ranking scheme which distinguishes between essential and differentiating attributes The Kano model is based on the concepts of customer quality and provides a simple ranking scheme which distinguishes between essential and differentiating attributes It is a technique that helps businesses understand varying levels of value that customers place on different features of it s product and services Attribute Basis Needs Description These needs are considered to be basic requirements by the customer - most often these are unspoken by the customer, but the customer will be dissatisfied if they are not met. No need to go beyond the requirements, although 100% of the basis requirement should be met. Example: When going out to dinner at a restaurant; a basis unspoken need is that the food be cooked properly. The customer does not really notice when properly cooked food arrives, BUT will complain if not cooked properly. If you go to a hotel, you expect toilet paper. If there s 5 rolls, you won t care, but if there are none, you ll be really disturbed. Service example: Customer courtesy is never clearly stated as a need, but it s a basic expectation (C) 2015 V. Moudgil 18

19 Attribute Description Performance Needs These needs are asked for and are thought of as important to the customer. Hence, they are the expectations that the customer has above the basic needs. Customers differentiate one product from another based on performance needs. Performance needs are related to value elements such as cycle time, price, utility, and functions related to the product or service. Customers will usually be able to state the levels at which performance needs must be set to ensure their satisfaction. There are generally several competing products or services alternatives available to the consumer to compare performance characteristics (ex. ontime delivery, product pricing). By definition, performance needs should be met 100% of requirements. For those clients where a written contractual obligation exists, the service need to be at agreed upon level In contrast to basis needs, customers will usually pay more for performance features if they are important to the customer. Examples: When you go on a trip to Florida, you ll want a hotel with a pool. The higher quality pool you get, the higher level of satisfaction you ll get. The higher mega-pixels a phone s camera has, the more satisfied customers will potentially be (C) 2015 V. Moudgil 19

20 Attribute Delighter/ Excitement Needs Description These are existing needs that the customer has not defined him/herself. Excitement needs are product or service characterizes that delight the customer. By definition there is no customer requirement. Strategic decision must be made to try and address these needs. Excitement needs are generally associated with new product or service that delight and excite a customer. Customer purchasing behavior will vary based on early adopters and late adopters. Early adopters will pay a higher price than late adopters. Example: - A situation where the customer says WOW I didn t know I needed this! Over time excitement needs will become performance and performance needs will become basic. Camera s on cell phone, Call Waiting (C) 2015 V. Moudgil 20

21 KANO Example for addressing the 3 rd Challenge: Sample list of work to be prioritized Task 1 Develop custom software for server build 2 Purchase batch processing tool 3 Install 2K virtual machines 4 Rebalance network bandwidth 5 Implement Big Data software (C) 2015 V. Moudgil 21

22 KANO Example for addressing the 3 rd Challenge: Cont. Sample list of work to be prioritized Task VOC ORG. Priority 1 Develop custom software for server build Delight Strategic 2 Purchase batch processing tool Performance Strategic 3 Install 2K virtual machines Basic Operational 4 Rebalance network bandwidth Basic Tactical 5 Implement Big Data software Performance Strategic (C) 2015 V. Moudgil 22

24 Addressing the 3 rd Challenge: 5 Whys (3-10) Why s Cont. Issue: It takes 90 days to close the sale, it used to take 30 days? Why does it take 90 days to close the sale? >> We now need to speak to the CTO along with the procurement executive? Why do we need to speak to the CTO? >> Our product now sits on the company Backbone. Why does it take more time just because we are on the company backbone? >> Because the customer now has to certify our products on their systems which takes 60 days. What can we do to reduce the certification time for the CTO? {Actionable] (C) 2015 V. Moudgil 24

25 Addressing the 4 th Challenge: 4 th Challenge: How do you successfully identify and implement improvements? You need a mechanism to help you identify the areas within your current state process that can potentially be improved. (C) 2015 V. Moudgil 25

Addressing the 4 th Challenge:Things to Consider from an Improvement Lens (1) Over Production: Unneeded upgrades to Software, or Hardware (2) Waiting:

26 Addressing the 4 th Challenge:Things to Consider from an Improvement Lens (1) Over Production: Unneeded upgrades to Software, or Hardware (2) Waiting: Unproductive time between automated programs or signoffs (3) Inventory: Excessive amounts of CPU, Storage, Software Licences (7) Defects Rework at various stages of the SDLC. No Code reviews, No Unit Test (4) Motion: Unnecessary movement of Resources within a process/project (5) Over Processing: Building elegance beyond what is (C) 2015 V. Moudgil (6) Transportation: needed/requested by the customer. 26 Unplanned work or context switching Ex. Over built Software, Large SOP Documentation

27 Notional Timeline and Key Events 15 Days 5 days Customer Req. Virtual Server Request Management Validate incoming request HW ORG. OS. ORG COTS ORG. Waiting - Can this process be automated such that it is not reasonably possible to make a mistake. Capture HW resources -Required. # of CPU s -Memory -Storage -Spin up HW Install OS Custom App. Install ORG. QA ORG.... Motion: Is it necessary to move the activity from one group to the next each move requires bundling of work and communication. Can the work be combined within one organization. Over Processing -Does the customer really want to know when ever task is completed? -Creates and opportunity for confusion: When is the product 3 Days really done Install: COTS 1 COTS 2 COTS Days Over Production: Does the sys. admin. need to follow a script to complete the work or can this work be automated Install Custom App. 1 App. 2. App. 3. Validate the HW/SW 3 Days 10 Days Total Cycle Time = 40 Days Transportation/Motion: Can the QA Org. work with the customer to reduce the validation process. One possibility is for QA and Customer to share the test cases. Release Virtual Server to customer (C) 2015 V. Moudgil 27

28 Notional Timeline and Key Events 1 Day.5 day Customer Req. Virtual Server Request Management Webpage to Validate Request HW ORG. Automate the build of the virtual server OS. ORG & COTS ORG Custom App. Install ORG. QA ORG. Future or TO-BE Process 2.5 Days Install OS Install: COTS 1 COTS 2 COTS Days Install Custom App. 1 App. 2. App Days Validate the HW/SW With Customer Total Cycle Time = 12 Days (C) 2015 V. Moudgil 28 Potentially going from 40 days to 12 days 70% decrease in cycle time.

29 If you are successful in identifying and eliminating waste, the tough part is over. You are 60% done. The difficulty of innovation is not in developing new ideas but escaping old ones The previous slides help you escape old ideas To develop new ideas, Six Thinking Hats and Random Words are great brainstorming techniques. (C) 2015 V. Moudgil 29

30 Summary OP. Imp. Steps Activity Tool 1 st Challenge Understanding what work is being done. -One page charter -SIPOC 2 nd Challenge Understand the current state -SEQ. Diagram 3 rd Challenge Analyze the data -KANO -Five Why s 4 th Challenge Offer opportunities for Improvements -Brainstorming -Lens for improvement -TOBE Process Control (Production) Realization Continuous Improvement Pilot the improvements Rollout the new process into production Go back 60-90days and check to see if expected were achieved Periodically (18-24 months) start with the -PILOT or Tabletop the improvements you first challenge (C) 2015 V. Moudgil 30

31 Tools & Deliverables Activities Notional view of ITIL (Service Delivery), Lean, Six Sigma. Value Driven Chaotic Ad Hoc Unpredictable Undocumented Reactive Fighting Fires Component Focused Level 2 Proactive Analyze Trends Set Thresholds Service Catalog in Place Service Driven IT org. run as a Service Op. Req. designed into dev. solutions Level 3 Level 4 IT is a Strategic partner Proactive Continuous Improvement Level 5 Level 1 Diagnostic Design Pilot Roll out Define Measure Analyze Improve Control Goal: Clarify project and business case Define Scope Identify team members and resources Understand the process and its current performance Identify the Metrics Identify the Key Drivers Pilot the improvements Implement the Solution Identify the prob. Identify critical requirements Identify team members Create the Baseline Collect the Customer data Collect cycle time data Identify the Root Cause Clarify project and business case Define Scope Identify team members and resources Finalize SOP Finalize Metrics Complete a one KANO Five Why s TO-BE Process Map page project charter SIPOC (Suppliers, T.I.M.W.O.O.D Brainstorming Dashboards (C) 2015 V. Moudgil Input, Process, Output, FMEA Poke Yoke 31 Complete RACI Control) Pareto Charts 2015 VM