Measuring lead time is important and is a key performance indicator (KPI) that every Agile team should track. Poor lead time causes bottlenecks in the team production flow, inefficiencies, delay costs, not to mention unhappy customers. Come to this session to discuss with others how to track and monitor improvement on lead time.

1. 7 ways to track lead-time
Paulo Caroli Agile Coach
pcaroli@thoughtworks.com
Twitter: @paulocaroli

2. Agenda
• Flow numbers at my bar
• 7 Ways to track lead time
• Q&A

3. Flow numbers at my bar

4. WIP
• The number of bottles in the bar. Bottles
that have been opened, but are not yet
empty.

5. Lead time
• The time between the bottle is added to
the bar and the bottle comes out of the
bar (empty).

6. Cycle time
• The time between two successive empty
bottles leaving the bar

7. Throughput
• The rate at which bottles are passing through
the bar.

8. Batch size
• The size of the bottles.

9. My bar…

10. I was really interested in
measuring a whiskey bottle
average lead time in my bar...

11. “The average number of work
items in a stable system is equal
to their average completion rate,
multiplied by their average time
in the system.”
John Little, 1961

12. WIP = Throughput x Lead time

13. Please help me out...

14. Please help me out...

15. 12 bottles...

16. an average of 6 bottles per
year…

17. ?

18. What is the average lead time
for a bottle of whiskey?

19. (a) 2 months
(b) 3 months
(c) 6 months
(d) 1 year
(e) 2 years
What is the average lead time for
a bottle of whiskey?

20. WIP = Throughput x Lead time

21. WIP = Throughput x Lead time
12 b= 6 b / year x Lead time

22. WIP = Throughput x Lead time
12 b= 6 b / year x Lead time
Lead time = 2 years

23. Little’s law math

24. WIP = Throughput x Lead time
12 b= 6 b / year x Lead time
Lead time = 2 years

25. WIP = Throughput x Lead time1

26. Visual repesentation for SW
Developmemnt work...

28. Doing DoneTo Do
10
5
9
31
18
17
21
4
7
5
1
12
John
Suzy
Paul
Amy

29. Doing DoneTo Do
10
5
9
31
18
17
21
4
7
5
1
12
John
Suzy
Paul
Amy
Lead Time
10 10Day 1
Day 6

30. Write on card

34. Banana peal

37. Chickenpox

43. Story tracking graph

44. Little’s Law

45. Story Tracking

47. Little’s Law

48. Control Chart

50. Control Chart

52. Control Chart

53. Cummulative Flow Diagram

58. Doing
(Limit) DoneTo Do
10
5
9
31
18
17
21
4
7
5
1
12
John
Suzy
Paul
Amy
WIP
Lead Time

59. WIP
Lead Time

60. Lead Time
Cumulative Flow Diagram

61. Let’s build these graphs together!
61

63. Story #
time

64. Lead time
time

65. Work
time

66. 66
Functionality
time

67. 67
Functionality
time

68. Story #
time

69. time
Lead time

70. Work
time

71. Work
time

72. 72
Functionality
time

73. Story #
time

74. time
Lead time

75. Work
time

76. Work
time

77. 77
Functionality
time
4

78. Story #
time

79. time
Lead time

80. Work
time

81. Work
time

82. Agenda
• Flow numbers at my bar
• 7 Ways to track lead time
• Q&A

83. WIP = Throughput x Lead time1

87. Little’s Law

88. Control Chart

89. Lead Time
Cumulative Flow Diagram

90. 7 Ways to track lead-time
Paulo Caroli Agile Coach
pcaroli@thoughtworks.com
Twitter: @paulocaroli

91. Paulo Caroli Agile Coach
pcaroli@thoughtworks.com
Twitter: @paulocaroli
Thank you!
Questions?
feedback please: @paulocaroli
www.OptimizingTheFlow.com

92. Question / Example
Planned and Planning:
velocity versus lead time
92

93. 93
Functionality
4
2
8
8
2
4
8
4
Total Scope: 40Total Scope: 40

94. If all work could be
started at the same time...
94

95. Product Backlog
95
Functionality
time

96. The team has 3 pairs of engineers,
and dependent Stories
(swim lanes)
96

97. 97
time

98. 98
Functionality
time

99. Now looking at Sprints
99

100. 100
Functionality
time
sp 1sp 1 sp 2sp 2 sp 3sp 3

101. 101
Functionality
time
4
2
8
8
2
4
8
4
sp 1sp 1 sp 2sp 2 sp 3sp 3

102. Let’s go back in time
and compare planned and actual
102

103. Planned
103
Functionality
4
2
8
8
2
4
8
4
Total Scope: 40 points
1 Release of 3 sprints
Expected velocity:
10 points for Sprint 1
15 points for Sprint 2 and 3
Total Scope: 40 points
1 Release of 3 sprints
Expected velocity:
10 points for Sprint 1
15 points for Sprint 2 and 3

104. 104
Functionality
time
sp 1sp 1 sp 2sp 2 sp 3sp 3
Velocity (planned)
10
15 15

105. 105
Functionality
time
sp 1sp 1 sp 2sp 2 sp 3sp 3
Velocity (planned)
10
15 15

106. 106
Functionality
time
sp 1sp 1 sp 2sp 2 sp 3sp 3
Burn Up (planned)
10
25
40

107. Actual...
107

108. 108
Functionality
time
4
2
sp 1sp 1 sp 2sp 2 sp 3sp 3

109. 109
Functionality
time
4
2
sp 1sp 1 sp 2sp 2 sp 3sp 3

110. 110
Functionality
time
4
2
sp 1sp 1 sp 2sp 2 sp 3sp 3
Planned: 10
10

111. 111
Functionality
time
4
2
sp 1sp 1 sp 2sp 2 sp 3sp 3
Finished: 6
10
6

112. 112
Functionality
time
sp 1sp 1 sp 2sp 2 sp 3sp 3
Burn Up (planned)
10
25
40
planned
actual
6

113. That Sprint review meeting...
113

114. 114
Functionality
time
4
2
sp 1sp 1 sp 2sp 2 sp 3sp 3
8
2

115. 115
Functionality
time
4
2
8
8
2
4
8
4
sp 1sp 1 sp 2sp 2 sp 3sp 3
10
15 15
6
18 16

116. 116
Functionality
time
sp 1sp 1 sp 2sp 2 sp 3sp 3
Burn Up
10
25
40
6
24
planned
actual

117. Using lead time instead...
117

118. Story #
time

119. Lead time
time

120. 120
Functionality
time
4
2
8
8
2
4
8
4
sp 1sp 1 sp 2sp 2 sp 3sp 3

121. 121
Functionality
time
sp 1sp 1 sp 2sp 2 sp 3sp 3

122. Story #
time

123. time
Lead time

124. 124
Functionality
time
sp 1sp 1 sp 2sp 2 sp 3sp 3

125. Story #
time

126. S
time
Lead time

127. 127
Functionality
time
4
sp 1sp 1 sp 2sp 2 sp 3sp 3

128. Story #
time

129. S
M
L
time
Lead time

130. What about looking at the lead time
numbers instead of velocity?
130

131. Planning
131
Functionality
4
2
8
8
2
4
8
4
Total Scope: 8 Stories
On day 6 out of 15:
3 Stories are done, 2 are in
progress; 3 to go
Avg lead time = 5 days and
the team work on 3 stories in
parallel
Total Scope: 8 Stories
On day 6 out of 15:
3 Stories are done, 2 are in
progress; 3 to go
Avg lead time = 5 days and
the team work on 3 stories in
parallel
done
In
progress
next

132. Will we make it?
Answer based on lead time: yes, we
should finish all stories by day 15
132
Answer based on velocity: we need to increate the
team velocity, otherwise we will not finish all 40
story points by day 15
vs.

133. Question
What about using lead time and
estimates?
133

134. You can get average per story size
134

135. S
M
L
S
L
M
L
M
time
Lead time

136. S
M
L
S
L
M
L
M
time
Lead time

137. Or average for lead time (if you are
already over extimates)
137

138. Control Chart

139. Question
How do i visualize cycle time?
139

140. S
M
L
S
L
M
L
M
Cycle timeCycle time
time
Lead time