Lean Archive

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Looking for Lean in Inefficient Processes

first-class forever stampThis morning, I wrote a physical check and placed it into a physical envelope. I hand-wrote the addresses on the envelope and even put a physical stamp on it.  I will mail it, when I take my semiweekly trip to the mailbox.  This is the first time I can remember doing this in a few years.  The party recieving my payment is forcing me to follow this inefficient business process of mailing a physical payment to them.  All I can think is how this used to be the norm and now how ridiculously inefficient it appears.

When objectively judging the efficiency of this process, I started by first measuring two things, the Work-in-Process (WIP) and the Average Completion Rate (ACR).

Little’s Law

This law provides an equation for relating Lead Time, Work-in-Process (WIP) and Average Completion Rate (ACR) to any process. The law states: Lead Time = WIP (units) / ACR (units per time period).  The idea is to have the lowest lead time as possible.  Lower lead times means less waste.

Am I the only geek out there who does this?  Where do you see inefficient processes that could benefit from a more lean approach?

 

 

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8

The Gemba Walk

As part of a recent engagement, Bob Payne and I went to assess and coach a group of Agile teams out in Iowa.  Each morning, we would arrive before the daily stand-ups.  Each morning we walked around, listened in on conversations and got updates from the teams.  We quietly studied their large team boards and then how they interacted with the boards and one another. I would describe this daily stroll as our Gemba Walk.  Gemba is a Japanese term meaning “the real place.” In business, it refers to the place where value is created; in our case the gemba was the west side of the building on the 5th floor where the teams were located.

Gemba Walk

In lean manufacturing, the idea of gemba is that the problems are visible, and the best improvement ideas will come from going to the gemba. The gemba walk, much like Management By Walking Around (MBWA), is an activity that takes management to those doing the actual value delivery, to look for waste and opportunities to practice gemba kaizen, or practical shopfloor improvement.  If you are in management and you want to make a real difference, get out of your office and go on a gemba walk.

If you are on a project team, do your managers go on a daily gemba walk?

HT: Wikipedia

 

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When a Standard is a Distraction

I stopped off to get some gas and found myself spending way too much time analyzing the user interface, trying to figure out how to pump my gas.  I don’t want to sound so negative but gas pumps rank right up there with Adobe products, when it comes to non-intuitive UI.  At first glance, the UI was comprised of two areas.  One, there was a monochrome screen with four button on either side.  I’ve seen this layout at other gas pumps so I was ready for visual queues to come from that.  The other area was a 16 button keypad.  Fortunately, there was a slot for me to insert my credit card, otherwise, I think I would have just driven to another gas station.  The problem started 10 seconds after I inserted my credit card.  It actually took roughly 10 seconds for each action to be registered on the screen, leaving me feeling frustrated throughout the process.


The first text to appear on the screen was In Payment Card. I complied and 10 seconds later the text Debit Card or Credit Card? appeared. I expected the choices to align to one of the 8 white buttons flanking the screen. I then looked at the keypad. Nope, no Debit or Credit keys, which I’ve seen on other gas pumps.  Just before cancelling the purchase, I noticed two unassuming grey buttons to the right of the receipt dispenser. They were labeled Outside Debit and Outside Credit. I grumbled to myself and selected the Outside Credit button. Ten seconds later (I’m not kidding) Enter Zip Code appeared on the screen.  I typed in my zip code via the keypad.  I waited a solid 10 seconds before Press Enter If OK or Clear appeared. I located and press an Enter OK button on the keypad. The text Authorizing then displayed for an additional 10 seconds. Just as I thought it would tell me to select my grade of gas, Would you like to print a receipt? appeared.  I located and selected the Yes Receipt button on the key pad.  The screen then took an additional 10 seconds to state please see cashier inside for receipt. I stood there dumbfounded (for an additional 10 seconds) when the screen then changed, stating Select your Grade.

Here comes the comparison.  Simple processes like buying your gas should not be this painful.  The same goes for your business processes.  Don’t put so much emphasis on things that you’re not going to need.  They become wasteful distractions.  In the case of the gas pump, the most important steps of the process were hard to locate and navigate.  I wasted a lot of time just trying to figure out how to do the next step, when I already knew what I needed to do.  On the gas pump, the two unassuming buttons were critical to move forward in the process but weren’t even in my line of sight.  You need to think about this when customizing your business processes.  Standards (and processes) are good, as long as they provide value, either by increasing quality or lowering risk.

 

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8

Waste In Software Projects

This evening I attending the monthly Agile Leadership Network event. I noticed a very familiar slide on Waste In Software Projects. It looks familiar because I have it in my training deck as well! Yes, my Introduction to Agile class has a slide that credits the Standish Group Study reported at XP2002 by Jim Johnson, Chairman.  In reviewing software systems, Jim Johnston, Chairman of the Standish Group, determined that in systems defined and delivered using a traditional / waterfall style approach almost half of all features developed and paid for are never used.  The question this evening was, for the 45% of the features that were never used, what was the cost incurred?  Well, I can tell you it’s probably a lot more than 45% of the budget!  What if the features that were never used were actually the most costly as well? The rule we should learn here is we should eliminate the waste at the source, before it makes it all the way to the Production environment.  If a feature or product is never used, it’s waste. But, since XP2002, have we learned our lessons?    Standish Group Study

Are we still delivering features that customers will never use?  I figured I would create a quick Google Doc that would collect some data. After giving it some thought, I decided to remove the link to the Google Doc.  The collection of data was just a distraction from the actual blog post.  Thank you to those to participated.

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Reading about Process Improvement

Reading Books Over the weekend, I found myself trying to read a physical book about systems analysis while listening to a book on operational process improvement.  I’m not going to go into the physical book because I am so impressed with the audio book.  I guess it wouldn’t matter if it was physical, digital, or audio.  It’s just a really really good book!

It’s titled: The Goal: A Process of Ongoing Improvement by Eliyahu M. Goldratt (yes, if someone clicks on that link and buys a book, I would get credit)

Though the story reads like fiction, in its introduction of characters and story, it does an amazing job of introducing concepts to the reader.  The main character manages a production plant, where everything is always behind schedule and things are looking pretty bad. (Sound like any projects you know?)  The production plant is doing so poorly, the company has given the main character an ultimatum.   With a threat of closure, the plant has three months to turn operations from being unprofitable and chronically late on deliveries to being profitable and successful.  In the book, we are introduced to the Socratic method. Throughout the book, a character poses questions to another or a member of a team, which in turn causes them to talk amongst themselves to come up with a solution to their problem.

Because the book revolves around manufacturing and not application development or project management, there are a few dotted lines that need to be drawn.  But, overall, it really got my wheels spinning.  It doesn’t matter if you’re using Kanban or if you’re in any type of management position, I would recommend this book.

One quote really stuck with me

Intuitive conclusions (common sense) are commonly masked by common practice

Process Improvement

The following lists some of the ways that processes can be improved.

  • Reduce work-in-process (WIP) inventory to reduce lead time
  • Add additional resources to increase capacity of the bottleneck
  • Improve the efficiency of the bottleneck activity to increase process capacity
  • Move work away from bottleneck resources where possible to increase process capacity
  • Increase availability of bottleneck resources to increase process capacity
  • Minimize non-value adding activities to decrease cost and reduce lead time

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