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Lean Thinking Lean Thinking provides foundational principles which involve the entire lifecycle of realizing business value; as the lifecycle cuts across the organization, so do the cultural impacts to drivers for Business, Management, and Technology. Lean-Thinking is comprised of Lean Management, Lean Science, and Knowledge Stewardship, and is the foundation for Business Agility, Management Agility, and Technical Team Agility (the key components for achieving Enterprise Agility).

The Lean Enterprise Business Lean Enterprise Technical Team Manage ment

Enterprise Agility Business Value Incremental business value driven Portfolio & release planning Make Team Agility Visual Controls Focus on speed while maintaining integrity Lean Enterprise Management Continuous flow of business value Impediment Mgt Flow Technical Agility Best engineering practices TDD, Design Patterns Continuous incremental improvement of engineering practices Sustainably

Team IT & Business Business How to achieve that value? What is best way to deliver that value? Why is this valuable? Speed of analysis build validation deployment Continual improvement of standards Technology Discovery and development Core engineering practices System integrity Boundaries to empower teams Resolve impediments to speed, flow Skills excellence Optimize team performance Project portfolio Budgets Continual discovery of highest business value Priority & sequence Business planning Value Stream owner Realize business value Deliver - Iterative Design - Iterative Discover - Incremental

2 Dimensions Levels in the organization Lean-Agile Practices

Lean Agile Key Roles Role Sponsor Business Product Owner Technical Owner Lean-Agile PM Whole Team Responsibilities Responsible for Business Value ROI; Defines Vision, Direction, and Priorities (Business Value); Assigns Product Owner & dedicates $ & resources Business Value, Priority & Sequencing for incremental delivery, Business ROI, and validation Project Delivery of software solution; Represents the system integrity and system evolution; Leverages the process for achieving the project objective Ensures the process is understood & followed; Facilitates the teams efficiency and health; ensures visibility on progress Produces and delivers the product

Roles & Standard Work Level 3 Executives/Leadership Team Sponsor - Leader Standard Work Level 2 Management Business & Technical Business Product Owner standard work Technical Owner standard work Lean agile PM standard work Level 1 Front Line Associates / Practitioners Standard work focused on practices

Standards improvement Primary job of team leaders (supervisors & managers) is the constant improvement of the way work gets done Must come from practitioners (people doing the job)

Lean-Agile Practices Business Management Team

Business Practices - examples Communicating Vision Program, Project, Release, Iteration Business Value Criteria & Weight & Prioritization Portfolio (Product and/or Project) Prioritization Business Value Realization Trend and Rate Product Backlog Management represent all work Top Line (story point) Progress tracking by Project, Release, and Iteration Iteration Planning Sessions (Scrum) Velocity Driven (using story points) Goal Driven Team Commitment (based on story points, not scope)

Management Practices - examples Introduce Value Stream - >Expanded Lifecycle (beyond development) to include full business value increment Impediment Management Tracking, Removal, Elimination Cycle time of Business Value realization Charts: Project, Release, Feature, Story Burn Up Work item / task Burn down Business Value realization build/trend Knowledge Stewardship

Team Practices - examples Iteration Planning Sessions Sizing Risk / Dependency management Story Decomposition /Task Creation Commitment -Only commit to stories with done criteria known Daily Stand-ups Focus on completing priority stories / Updates remaining effort & status (task level) Team Re-plans work based on progress Retrospectives All team members participate Focus on Process, Quality, WIP, & Time - (Suggest 3 improvements for next iteration)

Variability & Paradigms

Variability Deterministic strive to eliminate the cost of variation Standards are set, Measurements against standards Avoid / eliminate variations Empirical low cost flexibility Reduce / Manage variability Standard (work) defined, continuously updated Measurements for improved cycle time Update standards (incrementally & continually)

Process Owners Prescriptive In a command-and-control company, the standard operation is the property of management or the engineering department. Has a strong compliance driver Too many operations-based organizations delude themselves on standards. Imposed work standards, lack buy-in, a foundation for continuous improvement, and worst of all a great likelihood of large process variance.

Lean Thinking Process Owner Practitioner based In a Lean company it is the property of the people doing the job. They prepare it, work to it, and are responsible for improving it.

Standard Work

Standard(ize) To standardize a method is to choose out of many methods the best one, and use it. What is the best way to do a thing? It is the sum of all the good ways we have discovered up to the present. Henry Ford, Today and Tomorrow, 1926

Standards Standards are the agreed upon way of doing work; they encompass the organizational boundaries (which include integrity, quality, and risk mitigation across the company). Standardizing a method is to choose the best out of many methods, and use it It is the sum of all the good ways we have discovered up to the present Standards are executed by doing standard work. Continually seeking ways to improve, one must understand the purpose of the standard, and improve the standard, while adhering to its purpose.

Attitude & Approach There is something called standard work, but standards should be changed constantly. Instead, if you think of the standard as the best you can do, it s all over. The standard work is only a baseline for doing further improvements. Standards are set arbitrarily by humans, so how can they not change? When creating Standard Work, it will be difficult to establish a standard if you are trying to achieve the best way. This is a big mistake. Document exactly what you are doing now. If you make it better than it is now, it is an improvement; If not, and you establish its the best possible way, the motivation for improvement will be gone. - Toyota Management

Standard Work Standard work is not a prescription or record of what s been done, rather it is an identification of steps or activities which adhere to the standard way of doing things; it entails visibility (visual controls) and discipline. Standard work is not static, and when a better way is found the procedure is updated. Standard work is essential for continuous improvement moving from one standard to a better standard without slipping back. - The New Lean Toolbox, John Bicheno.

3 key aspects Standard work delineates responsibilities and makes potential problems visible before they occur. 1. Standard work is not static, and when a better way is found the procedure is updated 2. Standard work supports stability and manages variation because the work is approached the same way each time. Moreover variations (defects, deviations, discrepancies) are easily recognized. 3. Standard work is essential for continuous improvement moving from one standard to a better standard without slipping back.

Standard Work Who What When Where Doesn t include the Standards, but the steps to achieve the Standards. Highly focused on Content, Sequence, Timing and Outcomes

Ex. Standard Work: Iteration Planning Input: Prioritized Complete Product Backlog Who: Product Owner, Customer SME, Whole Team BA, SAT, CAT, Dev, Design, Customer SME What: (Iteration Review) Define Iteration Goal Present Prioritized Stories (based on team s velocity) Identify Dependencies / Risks Decompose write sprint ready stories & tasks w/ hours, in priority order Validate size (story points) Commit (story at a time) Iteration Commitment ->total story points (Iteration Retrospective) When: 1 st Day of new Iteration Where: Near Product Backlog (team sized room)

Continuous Standards improvement You must perform standard work, as you do, you should find things you don t like, and you will think of one improvement after another. Then you should implement these ideas right away and make this the new standard - Toyota Management Best Practices / Best Approach Embrace proven practices decouple or strip over laden process

Continuous Process Improvement

Trade-in Overloaded Word Process with System Improving the system is the surest way to improving long term financial results Change proficiency maturity Re-define process with system Re-define Standards: standards should represent the current way we do things and should be continually changed and improved through rapid problem solving Take lots of measurements but do not use these as performance measurements

The Toyota Way Fieldbook Continuous Improvement Cycle STABILIZE LEVEL INCREMENTALLY CONTINUOUS IMPROVEMENT CREATE FLOW STANDARDIZE

The Toyota Way Fieldbook Continuous Improvement Spiral STABILIZE CREATE FLOW STANDARDIZE LEVEL INCREMENTALLY STANDARDIZE CREATE FLOW LEVEL INCREMENTALLY STANDARDIZE STABILIZE CREATE FLOW STABILIZE CREATE FLOW LEVEL INCREMENTALLY STABILIZE CREATE FLOW STABILIZE LEVEL INCREMENTALLY STANDARDIZE LEVEL INCREMENTALLY STANDARDIZE STANDARDIZE CREATE FLOW STABILIZE

There isn t a one size fits all Every project has unique dynamics; A mature agile team self-organizes around these variances, leverages the current standards and produces a quality solution as quickly as possible There are always newly discovered opportunities in improving the standards, which should be leveraged throughout the organization Framework for maintaining consistency must be a guide, vs. prescription and must include an incremental update process

Lean-agile PM, Team and IT Management Working Together for CPI Embrace and preserve existing practices, if a good practice When needed, create new practices, based on known, good principles Engineering / Technical Practices: The standards we want to keep for this project context starting with The PROCESS The particular project forms the context within which continuous process improvement happens

Fundamental Beliefs that Drive This TACIT Develop communities that share and learn from each other THEN EXPLICIT Use technology, methods that enable them to share and create value Process is made for man, not man for process We own the process Processes that are not revised monthly are stale Build it and they will ignore you or subvert you (processes, documents, web sites) David.a.noll@Boeing.com

Relevance to Lean-Agile Focus on project, but glean practices Processes must change regularly, based on standards and (standard work) Share principles and good practices broadly Critique ruthlessly by peers Implement locally as makes sense In Lean-Agile Teams, how do I grow as a professional? Deep or broad Management needs to govern Lean-Agile What is going on What needs to be done (disciplines) But not insist on uniformity

Goal: Three Streams Working Together Across the Company for CPI discipline community practice tools Goal for a Local Lean-Agile Project from Lean-Agile-Practitioner course

Standard Work -> Process Flow

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