1 hour introduction of Lean principles for Management teams concluded with discussion topics in a follow up work shop.

1. Anders Sixtensson Company X Management team sept2010

2. Who am I? Anders Sixtensson has +20 years of business and business consultancy experience acting as lean coach, project manager, supply chain analyst and senior advisor in different business improvement initiatives Senior Consultant and Softhouse Partner 2

3. Who are you?What are your expectations? 3

4. My ambitions today To increase your understanding of Lean/Agile principles and values To inspire with presented examples To make you talk ”Lean” with each other today To generate some energy and topics for your tomorrow discussion 4

6. Anders Sixtensson Lean introduction

7. Taiichi Ohno, skaparen av ”Toyota Production System” ”All we are doing is looking at the timeline from the moment a customer gives us an order to the point we collect the cash. And we are reducing that timeline in the value stream by removing non value-added wastes” Taiichi Ohno, father of the Toyota Production System 7

9. 1960: Toyota teaches TPS to key suppliers; JIT in place 1963.

10. 1990: Lean Production

11. ”The Machine that Changed the World” by Womack & Jones

12. 1991: Lean Product Development

13. Kim B. Clark and Takahiro Fujimoto

14. 2003: Lean Software Development

15. Mary Poppendieck8

16. It is simple logistics The constraint limit us. We strive for Increased throughputof value (more revenues) Shortened lead times(earlier revenues) Reduced cost for deliveries Raw mtrl, ideas, req´s 9

17. Lean principles Value and Waste Manage the Flow Continuous Improvement Optimize the whole People and Leadership 10

18. Value and Waste Early and frequentrelease of value Remove waste (Muda) The Eight Sources of Wastes Not used features Inventory Extra processing Motion Transport Waiting Defects Unused creativity 11

19. Manage the Flow Reduce batch size Pull (Kan-Ban) Reduce multitasking Time-box (takt) Work Work ” backlog 12

20. People and Leadership Trust the team Clear purpose Simple Rules Visibility 13

22. Simple measurements driving new behavior

23. Do – Learn - Adapt14

24. Optimize the whole 3. Satisfaction All customers Employees Partners Features or manhrs In Inventory Value Q1 2005 Q2 2005 Flow Inventory levels Average Cycle Time Process Efficiency ”Tell me how you measure me, and I tell you how I behave” – Eli Goldratt 15

26. Plan- Deliver- Improve

27. Verify- Package- DeployProd mgr, System Arch. Market&Sales System Verification Delivery teams Release Delivery 16

28. Agile Manifesto Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan That is, while there is value in the items on the right, we value the items on the left more We follow these 12 principles: 1.Our highest priority is to satisfy the customerthroughearly and continuous deliveryof valuable software 2.--- 17 Ref: http://agilemanifesto.org/

30. Frequent deliveries

32. Reduce waste

34. Constraints limit throughput

35. Optimize the wholeOptimize the whole People and Leadership 18

36. To discuss in groups 2-4 groups – each group select 1-2 of the Lean principles Discuss about “your” principle and how well you follow these ideas in your everyday life at CompanyX today Write for each principle One good example that we found. Make sure we continue. One bad example that we found. We ought to stop doing this. A new idea that we got today. We will propose to do this. One in the group will be pointed out to present 19