Application of lean thinking principles in IT industry

1. Fundamental Principles of Lean Thinking, CMMI and Process Quality Improvement -Shantanu Dey

2. History

3. Philosophy Map the flow in sync with demand at various stages of the production process Downstream supply should be linked to upstream demand Develop a Pull System Meet demand as and when it arises, eliminate need to store inventory Inventory is waste Make parts available at the right place at the right time in right quantity 5S, Just in Time Identify the value stream and eliminate non value additive activities Value Stream Mapping Ensure quick turnaround Quick set ups and changeovers, cellular layout Ensure High degree of Communication and Visibility Problems should be highlighted and visible to all for quick remedial actions Kanban or card system for requirement transfer Jidoka Perform Root Cause Analysis to identify problems, not symptoms 5 whys, Fishbone diagram Eliminate defects by preventing defects than detecting same – Poka Yoke Carry out Continuous and Radical Improvements Kaizen and Kaikaku

4. Key Concepts – Lean Thinking

5. Lean Principle – Complete Picture Value stream analysis Identification of steps that add value Type 1 and Type 2 Muda Develop a flow based process responding to demand Eliminate waste – type 2 Muda Through Continuous Improvements (kaizen) and radical improvements (Kaikaku) Develop a flow process based on demand, eliminate batch and queue Demand is the key driver at every stage Reorganize production process to aid in flow (cellular layout, collocation) Kanban based flow management Develop a just in time philosophy Measure takt time (total time for producing one unit in line with demand) Develop one piece flow Make sure that upstream process only responds to downstream demand at the right time Standardize work and assure quality Clear accountability, responsibility and instruction sheet, guidelines and templates Andon or visual control – problem and current status is visible and anybody can stop entire process in the event of a problem (Jidoka) Poka yoke or failure proofing, prevent defect rather than detect defect 5S Level workload (Heijunka) and improve flow (production leveling) Identify the root cause 5 Whys

6. Value Stream Analysis

8. Capture all opinions and stimulate brainstorming

9. Helps in visualizing many causes for a problem

10. Start with a “Why” question for problem statement

12. Creation of a control chart with upper and lower control limits (X bar, R chart etc.)

13. Control limits are defined at m+3S and m-3S

14. Variations due to common and special causes – special causes need to be ascertained through RCA

15. Indicates when to act and when not to act

16. Special cause must be attacked

17. Only way to reduce common cause is continuous improvement and tighter controlCapability Maturity Model (Integrated) – SEI

18. How Lean Thinking Can Help Us Distinguish between Batch and Queue vs. Continuous Flow Subject everything to demand and customer needs Identify value adding and non value adding processes and eliminate wastes 7 deadly wastes include “Wait and Queuing”, “Inventory”, “Reworks and Defects”, “Gold Plating and Excess Work”, “Lack of Focus”, “Deviation from Standard and Requirement”, “Lack of Communication” Adopt single piece flow for faster turnaround Communicate, Make problems and status visible Define, Measure, Analyze, Improve Prevent problems than do firefighting, raise flags as early as possible Level workload and ensure performance consistency Adopt standardization and uniformity, adhere to 5S Identify root cause of problems Develop Continuous Improvement culture Change mindset and address resistance to change Empower, motivate, learn, adapt Collaborate with business partners to drive changes

20. Engagement with business, BUS survey, relationship management, collaborative planning with other teams

21. Standard Operating Procedure and value measurement

22. Take one design/code into logical conclusion before working on another

23. Turnaround time and throughput as parameters defined and measured, analyzed for variations and planned for improvements, having more focus on issues in hand, reducing turnaround time for investigation

24. Status reports, tracking and monitoring, early warning, master specification, ageing in investigation, RCA for TAT and ageing, development slippage

25. Core team review, early warning, escalations

26. Master Specification Plan, Specification target, release quota, throughput consistency on a week by week basis

27. LAN folder and SharePoint, templates, standards, checklists and guidelines

28. Root cause analysis for TAT, ageing analysis, statistical process control for TAT, RCA for development slippage

29. Statistical process control, problem identification and adoption of process improvement measures

30. Forming quality circle, lessons learned exercises, learning forums and BPML, brainstorming, rewards and recognitions, additional responsibilities, having consensus before major initiatives, implement after consensus is achieved

31. Collaboration with other teams, ensuring team utilization, helping reduce total turnaround timeDistinguish between Batch and Queue vs. Continuous Flow Subject everything to demand and customer needs Identify value adding and non value adding processes and eliminate wastes Adopt single piece flow for faster turnaround Communicate, Make problems and status visible Define, Measure, Analyze, Improve Prevent problems than firefighting, raise flags Level workload and ensure performance consistency 5S and standardization Identify root cause of problems Develop Continuous Improvement culture Change mindset and resistance to change Empower, motivate, learn, adapt, generate consensus, act fast Collaborate with business partners to drive changes

32. Tasks Cut Out for Us in IT Adopting a demand based continuous flow Batch and queue methods (prioritization, allocation) Pick up high priority issues and functionalities Production Support Process – Value Stream Analysis and Future State Mapping Identifying type 1 and type 2 Muda Eliminating type 2 Muda Adopting Single Piece Flow for faster turnaround Working on one design at a time till approval Testing one functionality at a time till test completion Focus on few issues for investigation without letting them ageing Heijunka or Leveling Having consistent weekly and monthly throughput without overload Meeting Specification Master Plan Communication and Visibility, demand based continuous flow Synchronizing specification flow with development team needs Managing requirement changes, faulty requirements Reducing Turnaround Time, Increasing Throughput based on demand Managing prioritization Prevent problems, raise flags Early warning, raising slippage on planned dates (clarification not obtained, spec completion, development completion, testing completion), raising flags on - ageing, bandwidth issues, lack of knowledge, lack of clarifications Addressing queries at the earliest and making sure commitments are adhered to Continuous Improvement Culture Getting the buy in of the team, empowering and motivating team members Root cause analysis and resolution of root cause Measuring success of initiatives, modification of plan based on measurement outcomes Anything else?