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The Science of Kanban
kscotland@rallydev.com
             http://availagility.co.uk
              twitter.com/kjscotland




KARL
SCOTLAND
Scientific Management
Study


Learn                    Share
            System


    Sense            Limit
Complex                                Complicated
                    • Retrospectively Coherent             • Potentially Knowable
                    • Cause-Effect not repeatable          • Cause-Effect separated in time
                    • Probe → Sense → Respond                & space
                                                           • Sense → Analyse → Respond
Unordered Domains




                                                                                                  Ordered Domains
                                                Disorder




                    Chaos                                  Simple
                    • Incoherent                           • Known
                    • Cause-Effect not perceivable         • Cause-Effect
                    • Act → Sense → Respond                  perceivable, predictable, repeata
                                                             ble
                                                           • Sense → Categorise → Respond

                                                                       http://www.cognitive-edge.com/
People
Clark & Wheelwright: Managing New Product and Process Development
100

           80
Percent




           60

           40

           20

                0
                    1
                             2
                                          3
                                                         4
                                                                        5

                           Number of Simultaneous Projects



                        Working Time      Context Switching Time


                           Gerald Weinberg, Quality Software Management: Systems Thinking
Single Loop Learning




               Strategies &
Assumptions                                    Results
               Techniques



              Double Loop Learning
Process
Queuing Capacity Utilisation




         Lead Time = Queue Size / Processing Rate
Queue




                         Utilisation
Flow = Speed x Density

           Density              Flow



Vehicles                                      Vehicles
per                                           per
Hour                                          Mile


                                              Miles
                                              per
                                              Hour


                                 Speed



                             Miles per Hour
Difference




Temperature




              Adjustment
Fast
         Feedback



Faster              Smaller
 Flow               Queues



          Lower
           WIP
Economics
Discounted Cash                       Life Cycle Profits




                                                                                                     Time



Maximum
Cash
Injection
Needed
                          Investment Period            Payback Period                Profit Period

                                        Self-funding                    Break-even
                                           Point                           Point
Cost

                                        Standard


               Expedite




                          Time


                            Cost of Delay


       Fixed
       Date                             Intangible
Information
                   Information Theory




              0%       Probability of Failure   100%
Ideas



Learn                  Build



        Lean Startup


Data                   Code



           Measure
Asymmetric Pay-offs
Gain
  Payoff




                                 Performance




Loss
                  Target
Risk Reduction

                          Sequence Early
Value of Risk Reduction




                                                             Sequence Late




                                           Cost of Risk Reduction
Plan



Act           Do



      Check
Observe




Act             Orient




      Decide
The Golden
Circle       What

             How


             Why




                    http://www.startwithwhy.com/
Economics


         Lean
People      Process
Books
• Kanban – David J. Anderson
• The Principles of Product Development
  Flow – Donald G. Reinertsen
• Brain Rules – John Medina
• Software by Numbers – Mark Denne &
  Jane Cleland-Huang
Thank you!



     Email: kscotland@rallydev.com
  Twitter: http://twitter.com/kjscotland
      Blog: http://availagility.co.uk

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The Science of Kanban

  • 1. The Science of Kanban
  • 2. kscotland@rallydev.com http://availagility.co.uk twitter.com/kjscotland KARL SCOTLAND
  • 4. Study Learn Share System Sense Limit
  • 5. Complex Complicated • Retrospectively Coherent • Potentially Knowable • Cause-Effect not repeatable • Cause-Effect separated in time • Probe → Sense → Respond & space • Sense → Analyse → Respond Unordered Domains Ordered Domains Disorder Chaos Simple • Incoherent • Known • Cause-Effect not perceivable • Cause-Effect • Act → Sense → Respond perceivable, predictable, repeata ble • Sense → Categorise → Respond http://www.cognitive-edge.com/
  • 6.
  • 8.
  • 9. Clark & Wheelwright: Managing New Product and Process Development
  • 10. 100 80 Percent 60 40 20 0 1 2 3 4 5 Number of Simultaneous Projects Working Time Context Switching Time Gerald Weinberg, Quality Software Management: Systems Thinking
  • 11. Single Loop Learning Strategies & Assumptions Results Techniques Double Loop Learning
  • 12.
  • 13.
  • 15. Queuing Capacity Utilisation Lead Time = Queue Size / Processing Rate Queue Utilisation
  • 16. Flow = Speed x Density Density Flow Vehicles Vehicles per per Hour Mile Miles per Hour Speed Miles per Hour
  • 18. Fast Feedback Faster Smaller Flow Queues Lower WIP
  • 19.
  • 21. Discounted Cash Life Cycle Profits Time Maximum Cash Injection Needed Investment Period Payback Period Profit Period Self-funding Break-even Point Point
  • 22. Cost Standard Expedite Time Cost of Delay Fixed Date Intangible
  • 23. Information Information Theory 0% Probability of Failure 100%
  • 24. Ideas Learn Build Lean Startup Data Code Measure
  • 25. Asymmetric Pay-offs Gain Payoff Performance Loss Target
  • 26. Risk Reduction Sequence Early Value of Risk Reduction Sequence Late Cost of Risk Reduction
  • 27.
  • 28.
  • 29. Plan Act Do Check
  • 30. Observe Act Orient Decide
  • 31. The Golden Circle What How Why http://www.startwithwhy.com/
  • 32.
  • 33. Economics Lean People Process
  • 34. Books • Kanban – David J. Anderson • The Principles of Product Development Flow – Donald G. Reinertsen • Brain Rules – John Medina • Software by Numbers – Mark Denne & Jane Cleland-Huang
  • 35. Thank you! Email: kscotland@rallydev.com Twitter: http://twitter.com/kjscotland Blog: http://availagility.co.uk

Editor's Notes

  1. Kanban, Flow & Cadence – KFC (food) not lean!Agile2008. Blogged Oct 2008More than just the board/mechanicsEvolution - The science of KFChttp://www.flickr.com/photos/marufish/4888007513/
  2. Elephant in the Room – Scientific Management. Manufacturing.Core ideas of scientific management developed by Federick Taylor in the late 19thC. Now 21stC.POV: We can still apply science to understanding why and how differences in productivity exist.
  3. Kanban context.Assume some knowledge of kanban, although not a pre-requisite
  4. General Action: Know where you are. Both capability (A3 current state) and domainHow you apply scientific management will be different.(See http://www.argenta-europ.com/default.asp?pageid=230)
  5. ImpactIf you know where you are, and how you are doing, you know whether you are improvingAnticipatory, not reactive – evolutionary potential, not future stateContinuous Improvement & Continuous ChangeGeneral Benefit: Sense for Success – Improved Outcomes for Business and People
  6. Knowledge work - Capability - CraftThe Human ConditionSociology / Neurosciencehttp://www.flickr.com/photos/a_mason/4006709/
  7. Vision trumps all other senses – wine-tasting vocabulary experiment, BordeauxVisual processing dominates our perception of the world - Hallucination experimentThe more visual the input, the more likely to be rememberedSP: Visualise the Systemhttp://www.flickr.com/photos/mind_scratch/2434031231/
  8. Clark & Wheelwright (1993) – Managing New Product and Process Development: Text and CasesMultitasking, when it comes to paying attention, is a myth.Multitasking takes 50% longer with 50% more errorsCell Phone get in more wrecks than anyone except /very/ drunk driversSP: Limit WIP
  9. We are natural learners. Evolved as the superior species.Double Loop Learning – Chris Argyris - Mental Models/MindsetsAction Science - how human beings design their actions in difficult situationsSP: Kanban & Visibility creates difficult situations
  10. Formal Science (e.g. Mathematics)Kanban -> Economy of Flow1000 coin tossesMacro: predictable (with some variance)Micro: unpredictable (50/50)Stock Photo
  11. Queuing TheoryCapacity utilisation increases queues exponentiallyAssumes M/M/1/∞ (Markov arrival, Markov process, 1 server, ∞ queue)Little’s Law: Lead Time = Queue Size / Processing RateTo reduce Lead Time, reduce queues. To reduce queues, reduce utilisation.
  12. Traffic FlowFlow = Speed x DensityVehicles/Hour = Miles/Hour x Vehicles/MileOriginally observed by Bruce Greenshaw in 1934Left side -> Reinforcing Loop: Density+, Speed-, Flow-, Density+Right side -> Balancing Loop: Density+, Speed-, Flow+, Density-
  13. FeedbackShower Balancing Loop with Delay
  14. Economic = social scienceValue. Types of value.Its better to do the right thing wrong, than the wrong thing right. (customer satisfaction)http://www.flickr.com/photos/42931449@N07/5300558006/
  15. Life Cycle ProfitSoftware by NumbersBeyond Budgeting
  16. Cost of Delay:
  17. Information Theory50% failure is optimal for 50/50 results
  18. Lean Startup – buying information
  19. Buying InformationSet Based Concurrent EngineeringBuying Insurance
  20. Scientific ManagementThe workers are the scientists
  21. PDCA or Check-Plan-Do or LAMBDAA3sExperiments only fail when they don’t complete
  22. This talk uses Simon Sinek’s Golden Circle to discuss Agile TransformationsImpact
  23. Axes of ImprovementOutcomes over Outputs. Science suggests levers
  24. LeanEconomics – customer value, not reducing costProcess – eliminating delays & creating flow, not eliminating wastePeople – Those who use the tools, not the tools themselves