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The Science of Kanban - LKBE11                                               04 Oct 2011




                                 The Science of Kanban




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




                  KARL
                  SCOTLAND


Rally Software                                                                        1
The Science of Kanban - LKBE11                                  04 Oct 2011




                                 Scientific Management




                                           Study


                           Learn                        Share
                                           System


                                   Sense            Limit




Rally Software                                                           2
The Science of Kanban - LKBE11                                                                                                       04 Oct 2011




                                     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 perceivable,
                                     • Act → Sense → Respond                  predictable, repeatable
                                                                            • Sense → Categorise → Respond


                                                                                        http://www.cognitive-edge.com/




Rally Software                                                                                                                                3
The Science of Kanban - LKBE11            04 Oct 2011




                                 People




Rally Software                                     4
The Science of Kanban - LKBE11                                                                                04 Oct 2011




                                          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




Rally Software                                                                                                         5
The Science of Kanban - LKBE11                                               04 Oct 2011




                                                Single Loop Learning




                                   Strategies &
                  Assumptions                                      Results
                                   Techniques


                                 Double Loop Learning




Rally Software                                                                        6
The Science of Kanban - LKBE11             04 Oct 2011




                                 Process




Rally Software                                      7
The Science of Kanban - LKBE11                                                        04 Oct 2011




                             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




Rally Software                                                                                 8
The Science of Kanban - LKBE11                         04 Oct 2011




                                          Difference




                          Temperature




                                        Adjustment




Rally Software                                                  9
The Science of Kanban - LKBE11                                                                                               04 Oct 2011




                                                           Economics

                                                               Life Cycle Profits
                         Discounted Cash




                                                                                                                      Time



                 Maximum
                 Cash
                 Injection
                 Needed
                                           Investment Period            Payback Period                Profit Period

                                                         Self-funding                    Break-even
                                                            Point                           Point




Rally Software                                                                                                                       10
The Science of Kanban - LKBE11                                                                           04 Oct 2011




                      Cost                                                           Standard


                                         Expedite




                                                     Time


                                                       Cost of Delay


                                 Fixed
                                 Date                                                Intangible




                                                    Information Theory
                  Information




                                0%                          Probability of Failure                100%




Rally Software                                                                                                   11
The Science of Kanban - LKBE11                                                                   04 Oct 2011




                                                                      Ideas



                                                     Learn                               Build




                                                      Data                               Code



                                                                    Measure




                                                                           Risk Reduction

                                           Sequence Early
                 Value of Risk Reduction




                                                                               Sequence Late




                                                             Cost of Risk Reduction




Rally Software                                                                                           12
The Science of Kanban - LKBE11   04 Oct 2011




Rally Software                           13
The Science of Kanban - LKBE11                            04 Oct 2011




                                        Plan



                                 Act              Do



                                       Check




                                       Observe




                                 Act             Orient




                                       Decide




Rally Software                                                    14
The Science of Kanban - LKBE11                                        04 Oct 2011




                  The Golden
                  Circle         What

                                 How


                                 Why




                                       http://www.startwithwhy.com/




Rally Software                                                                15
The Science of Kanban - LKBE11                                04 Oct 2011




                                 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




Rally Software                                                        16
The Science of Kanban - LKBE11                                      04 Oct 2011




                     Thank you!



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




Rally Software                                                              17

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The Science of Kanban - LKBE11

  • 1. The Science of Kanban - LKBE11 04 Oct 2011 The Science of Kanban kscotland@rallydev.com http://availagility.co.uk twitter.com/kjscotland KARL SCOTLAND Rally Software 1
  • 2. The Science of Kanban - LKBE11 04 Oct 2011 Scientific Management Study Learn Share System Sense Limit Rally Software 2
  • 3. The Science of Kanban - LKBE11 04 Oct 2011 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 perceivable, • Act → Sense → Respond predictable, repeatable • Sense → Categorise → Respond http://www.cognitive-edge.com/ Rally Software 3
  • 4. The Science of Kanban - LKBE11 04 Oct 2011 People Rally Software 4
  • 5. The Science of Kanban - LKBE11 04 Oct 2011 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 Rally Software 5
  • 6. The Science of Kanban - LKBE11 04 Oct 2011 Single Loop Learning Strategies & Assumptions Results Techniques Double Loop Learning Rally Software 6
  • 7. The Science of Kanban - LKBE11 04 Oct 2011 Process Rally Software 7
  • 8. The Science of Kanban - LKBE11 04 Oct 2011 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 Rally Software 8
  • 9. The Science of Kanban - LKBE11 04 Oct 2011 Difference Temperature Adjustment Rally Software 9
  • 10. The Science of Kanban - LKBE11 04 Oct 2011 Economics Life Cycle Profits Discounted Cash Time Maximum Cash Injection Needed Investment Period Payback Period Profit Period Self-funding Break-even Point Point Rally Software 10
  • 11. The Science of Kanban - LKBE11 04 Oct 2011 Cost Standard Expedite Time Cost of Delay Fixed Date Intangible Information Theory Information 0% Probability of Failure 100% Rally Software 11
  • 12. The Science of Kanban - LKBE11 04 Oct 2011 Ideas Learn Build Data Code Measure Risk Reduction Sequence Early Value of Risk Reduction Sequence Late Cost of Risk Reduction Rally Software 12
  • 13. The Science of Kanban - LKBE11 04 Oct 2011 Rally Software 13
  • 14. The Science of Kanban - LKBE11 04 Oct 2011 Plan Act Do Check Observe Act Orient Decide Rally Software 14
  • 15. The Science of Kanban - LKBE11 04 Oct 2011 The Golden Circle What How Why http://www.startwithwhy.com/ Rally Software 15
  • 16. The Science of Kanban - LKBE11 04 Oct 2011 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 Rally Software 16
  • 17. The Science of Kanban - LKBE11 04 Oct 2011 Thank you! Email: kscotland@rallydev.com Twitter: http://twitter.com/kjscotland Blog: http://availagility.co.uk Rally Software 17