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Scrum in the Fourth Industrial Revolution - Global Scrum Gathering Minneapolis

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Scrum in the Fourth Industrial Revolution - Global Scrum Gathering Minneapolis

  1. 1. Scrum in the Fourth Industrial Revolution Paolo Sammicheli
  2. 2. http://leanpub.com/Scrum-for-Hardware/ Discover the SCRUM for HARDWARE pioneers: from Wikispeed to the first Scrum for Hardware Gathering and the Agile Product Charter. The book is divided in two parts: the first one made of stories and the second one with a methodological description. Scrum for Hardware - The Book Released Under the BY-SA Creative Commons License. Available in Italian and English
  3. 3. https://www.youtube.com/watch?v=SCGV1tNBoeU
  4. 4. In the new world, it is not the big fish which eats the small fish, it's the fast fish which eats the slow fish. Klaus Schwab Founder and Executive Chairman World Economic Forum
  5. 5. What does this mean?
  6. 6. Is it a new Revolution? The elements that experts say will determine the current as the Fourth Industrial Revolution, and not a continuation of the third, are mainly three: • Speed. Unlike the previous industrial revolutions, the current one is evolving at an exponential rate rather than at a linear one. This is due to the interconnection of the world through a dense communication satellite network, the spread of Internet and cost reduction of land and air transport. • Width and depth. Current technologies bring new paradigms and deep changes in economy, society and individuals. The transformation is not just about products or their production process: even key concepts like identity and property are experiencing a crisis. • Systemic impact. The transformations affect a system that extends beyond the boundaries of companies, industries and countries, involving the entire planet.
  7. 7. What are the impacts in term of business for Manufacturing Industries?
  8. 8. Time to market Credits: https://www.flickr.com/photos/numb3r/
  9. 9. User Expectation
  10. 10. Innovation
  11. 11. Demand Variability
  12. 12. “The Winner takes it all”
  13. 13. The 4th Industrial Revolution will be the Revolution of the Complexity - Paolo Sammicheli
  14. 14. CYNEFIN A DECISION-MAKING FRAMEWORK BY DAVE SNOWDEN Photo Credts: http://all-that-is-interesting.com/starling-murmuration
  15. 15. The Cynefin Framework by Dave Snowden. Obvious Complicated Sense-Categorise-Respond Sense-Analyse-Respond Act-Sense-Respond Best Practice Good Practice Novel Practice Known knowns Known unknowns Unknowable unknowns Complex ChaoKc Probe-Sense-Respond Emergent Practice Unknown unknowns
  16. 16. Further informations https://hbr.org/2007/11/a-leaders-framework-for-decision-making DECISION MAKING A Leader’s Framework for Decision Making by David J. Snowden and Mary E. Boone FROM THE NOVEMBER 2007 ISSUE In January 1993, a gunman murdered seven people in a fast-food restaurant in Palatine, a suburb of Chicago. In his dual roles as an administrative executive and spokesperson for the police department, Deputy Chief Walter Gasior suddenly had to cope with several different situations at once. He had to deal with the grieving families and a frightened community, help direct the operations of an extremely busy police department, and take questions from the media, which inundated the town with reporters and film crews. “There
  17. 17. What can we do? «Disruption also flows from agile, innovative competitors who, by accessing global digital platforms for research, development, marketing, sales and distribution, can overtake well- established incumbents faster than ever by improving the quality, speed or price at which they deliver value.»
  18. 18. What does this mean? «Businesses, industries and corporations will face continuous Darwinian pressures and as such, the philosophy of “always in beta” (always evolving) will become more prevalent.»
  19. 19. WEF Center for the Fourth Industrial Revolution https://www.youtube.com/watch?v=CwBSWOqaM40
  20. 20. WEF Center for the Fourth Industrial Revolution
  21. 21. Mapping Global Transformations
  22. 22. Mapping Global Transformations
  23. 23. Mapping Global Transformations
  24. 24. What does this mean? «All these different impacts require companies to rethink their operating models. Accordingly, strategic planning is being challenged by the need for companies to operate faster and with greater agility.»
  25. 25. Agile Organization « An Agile Organization is one that is quick in responding to changes in the marketplace or environment » Source: https://www.mbaskool.com/business-concepts/it-and-systems/6703-agile-organization.html
  26. 26. Agile Organization Source: https://www.mckinsey.com/business-functions/organization/ our-insights/the-five-trademarks-of-agile-organizations
  27. 27. SCRUM FOR HARDWARE IN THE FOURTH INDUSTRIAL REVOLUTION
  28. 28. FESTO Founded 1925 18.700 employees 250 subsidiaries 61 countries Turnover € 2,74 Billion
  29. 29. Level 4 Learning Factory Level 2 Machining department with electroplating Gate 2 Gate 1 Canteen Car park 220m² Learning Factory covering 22m building height 20%electricity from own power generation 66,000m²floor space 4levels 1,200employees Facts and figures Festo AG & Co. KG6 Level 4 Hotbeds for ideas Level 3 Assembly with VUVG lines Level 3 Atrium Level 3 Electronics production Technical centre Level 4 Customer solutions Scharnhausen Technology Plant: Facts and figures 7 Scharnhausen Technology Plant https://www.festo.com/group/en/cms/10967.htm
  30. 30. © Paolo Sammicheli 2018 SCRUM FOR HARDWARE
  31. 31. PRACTICES PROCESSES PRINCIPLES VALUES © Paolo Sammicheli 2018 SCRUM FOR HARDWARE
  32. 32. © Paolo Sammicheli 2018 SCRUM FOR HARDWARE Scrum Scrum at Scale PROCESSES
  33. 33. © Paolo Sammicheli 2018 SCRUM FOR HARDWARE PRACTICES Wikispeed Scrum for Hardware Book Object Oriented Design Continuous Integration Design Pattern User Story Aggressive Pairing Test Driven Development Continuous Delivery Management 3.0 Empathy Mapping Personas Product Canvas Cross Functional Feature Team User Story Mapping Scrum Patterns Impact Mapping Hardware Compiler HiTech Anticipation … Lift Off
  34. 34. PRINCIPLES Complexity Thinking AGILELEAN eXtreme Manufacturing © Paolo Sammicheli 2018 SCRUM FOR HARDWARE
  35. 35. VALUES AGILELEAN SCRUM AGILE PRODUCT CHARTER © Paolo Sammicheli 2018 SCRUM FOR HARDWARE
  36. 36. PRACTICES PROCESSES PRINCIPLES VALUES © Paolo Sammicheli 2018 SCRUM FOR HARDWARE
  37. 37. Case Study Scrum for Hardware at Scale
  38. 38. Scrum at Scale Source: https://www.scrumatscale.com
  39. 39. A fractal is a geometrical object which repeat his own form at different scales, so that zooming a part of it you get a figure similar to the original. https://wikipedia.org/wiki/Fractal
  40. 40. Context • Italian Company - IOT sector • Annual Revenue: 200 Millions Euro • Around 1000 employees • Project ongoing - Under NDA • Internal Staff around 25 people + external suppliers • Initially estimated for 2,5 years elapsed • Started with traditional method. After one year they realized the urgent need to change method so they asked me to help them to adopt Scrum
  41. 41. Strategic Vision • The project started with a LiftOff (as described in Diana Larsen’s book) of two days where we shared the Vision, formed the teams, defined the working agreements and created the backlog with a User Story Mapping. Purpose Alignment Context
  42. 42. Initial User Story Map • Stories where covering a l l t h e i n t e r a c t i o n s i n c l u d i n g S o f t w a r e interfaces (web interface, mobile apps, etc) and H a r d w a r e D e v i c e s (Switch, Sensors, etc)
  43. 43. Organizational Structure SoS HQ Team 1 Team 2 Team 3 Remote Site Team 4 Supplier ASupplier B Team ext1 Team ext2 Team ext3 Supplier C Team ext4 PO PO PO SM CPO SSM PO CPO Chief Product Owner SSM Senior Scrum Master PO Product Owner SM Scrum Master
  44. 44. Team Level Process MoTu We Th Fr MoTu We Th Fr Planning Review Retro Morning Afternoon Refinement 1 Splitting e rePrioritization Refinement 2 Readiness Refinement 3 Readiness SoS Daily SoS Daily SoS Daily SoS Daily SoS Daily SoS Daily SoS Daily SoS Daily Morning Afternoon Refinement 0 Prioritization
  45. 45. Deployment • Deployment / Review Room • The different products are installed in several movable panels. They can be taken to the team room during the Sprint for convenience. • This photo has been taken at the beginning of the development and shows the empty panels and no new products.
  46. 46. Buffet Sprint Planning
  47. 47. Results Cumulated Yesterday’s Weather 0,00 15,00 30,00 45,00 60,00 Sprint 1 Sprint 3 Sprint 5 Sprint 7 Sprint 9 Sprint 11 Sprint 13 Sprint 15 Sprint 17 Sprint 19 Sprint 21 Sprint 23 Sprint 25 Cumulated HQ Teams Yesterday’s Weather Sprint 8 = 6sp Sprint 14 = 23sp Sprint 26 = 55sp In one Year x 9.16 faster! Yesterday’s Weather is the average velocity of the last 3 Sprints
  48. 48. «The fascination for Industrie 4.0 is twofold. First, for the first time an industrial revolution is predicted a-priori, not observed ex-post. This provides various opportunities for companies and research institutes to actively shape the future. Second, the economic impact of this industrial revolution is supposed to be huge.» (Hermann, Pentek, Otto, 2015, p.2 Design Principles for Industrie 4.0 Scenarios: A Literature Review)

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