Book Review: Kanban

David Anderson
Kanban. Successful Evolutionary Change for Your Technology Business.

Kanban is the latest book by David Anderson, the author of Agile Management for Software Engineering: Applying the Theory of Constraints for Business Results. While searching for sustainable software development and successful change management, David expanded the ideas of Theory of Constraints and Lean Manufacturing. The new methods got their first real-world implementation at Corbis and Microsoft and the results are presented in this book.

Kanban systems have been gaining popularity in software development and information technology. They represent a pull-system approach, which produces what the next process needs when it needs it. Thus, the new work is pulled into the system when there is a capacity to handle it.

Kanban systems often visualize the development workflow and all work in progress (WIP) on a card wall, where each card represents a single work item. If your objectives are to improve lead time predictability and increase throughput, you can achieve them by limiting WIP, identifying and alleviating bottlenecks, and reducing variability.

The book is very informative, filled with practical ideas and rich examples on how to:

  • Handle different types of work
  • Set initial WIP limits and input queue size
  • Introduce queues to absorb variation and maintain flow
  • Buffer bottlenecks to ensure smooth flow in the system and avoid idle time in the bottlenecks
  • Cope with multiple concurrent and unordered activities
  • Cope with impediments
  • Support hierarchical requirements
  • Manage shared resources

I greatly enjoyed reading David's book and hope you will like it as much as I have. My only recommendation for the next edition of this book is to have card-wall pictures printed in color.

Happy reading!

November book review: Learning to See

Mike Rother, John Shook
Learning to See: Value-Stream Mapping to Create Value and Eliminate MUDA

Find this book on Lean.org

A value stream is all the actions required to bring a product or a service to a consumer. Value-stream mapping is a tool used to visualize and analyze the flow of materials and information in a value stream. Value-stream mapping identifies the sources of waste in a value stream and helps you improve the whole system, not just its individual components.

In Learning to See, Mike Rother and John Shook highlight the differences between "Push", which produces according to a schedule, and "Pull", which produces only what the next process needs when it needs it. They explain why "Push" results in overproduction and other types of waste and offer their guidelines on how to introduce a lean value stream that generates the shortest lead time, highest quality, and lowest cost:

  1. Produce to your takt time. Takt time is the customer demand rate divided by available working time per day.
  2. Develop continuous flow wherever possible. Continuous flow produces one piece at a time with each item passed immediately from one process to the next.
  3. Use supermarket pull systems to control production where continuous flow does not extend upstream: for example, when a process has too much lead time.

    Use a sized FIFO ("first in, first out") lane to maintain the flow when supermarket systems are not practical: for example, when we cannot create an inventory of all parts such as during custom development.
  4. Try to send the customer schedule to only one production process. This process is called pacemaker: it sets a pace for all upstream processes and requires all downstream processes to be connected in a continuous flow.
  5. Level the production mix: distribute the production of different products evenly over time at the pacemaker process.
  6. Level the production volume: create an "initial pull" by releasing and withdrawing small, consistent increments of work at the pacemaker process. Consistent increment of work, aka "pitch" or "management time frame", will help you establish your takt time.
  7. Develop the ability to make every part every day or every pitch in processes upstream of the pacemaker process.

The authors also included a list of questions designed to help you create future-state value-stream maps:

  1. What is your takt time?
  2. Will you build to a finished goods market from which the customer pulls, or directly to shipping?
  3. Where can you use continuous flow processing?
  4. Where will you use supermarket pull systems?
  5. At what single point in the production chain will you schedule production?
  6. How will you level the production mix?
  7. What increment of work will you consistently release?
  8. What process improvements will be necessary?

These questions along with two manufacturing plant examples will help you develop and introduce your own lean value streams in your organizations.

Learning to See is a well-written must-to-read technical workbook on value streams. I recommend it to anybody interested in Lean. Happy reading!

Modelus A3 Report Templates made available for download

I am pleased to announce that we made our standard templates for A3 reports available as a free download from Modelus.com website: http://modelus.com/Products/A3Templates.aspx.

Earlier this year, I have reviewed Managing to Learn by John Shook and Understanding A3 Thinking by Durward K. Sobek II and Art Smalley. Both of these books have been highly influential on the design of the templates. Check them out.

Enjoy!

June book review: Understanding A3 Thinking

This month, we will continue the theme of A3 Thinking started in April with my review of "Managing to Learn" by John Shook.

Durward K. Sobek II and Art Smalley
Understanding A3 Thinking. A Critical Component of Toyota's PDCA Management Process.

In "Managing to Learn", John Shook described the fundamentals of A3 analysis and explained how to apply A3 thinking to improve problem solving and decision making in the organization. In "Understanding A3 Thinking", Durward and Art expanded the scope of A3 reports to two additional categories: proposal reports and status reviews. All three basic types of A3 reports are listed below:

  1. Problem-Solving A3 Report
  2. Proposal A3 Report
  3. Status A3 Report

This book is a practical and insightful introduction to A3 thinking. The authors illustrated how to create different types of A3 reports and included examples, templates, exercises, and review questions for each report category. Additional topics covered include:

  • Form and style of the reports
  • Commonly used graph types
  • Standard A3 templates
  • Hand-written vs. electronic A3 reports
  • Storage and retrieval of A3's

Where shall you start if you are interested in learning logical, objective, result-focused A3 thinking process?

  1. The authors recommend starting by writing a simple problem-solving report with the scope limited to an area you have control over. This way, you will be able to focus on learning the steps of producing an A3 without the complexity of interdepartmental politics.
  2. Ask your co-workers as well as your manager/coach for feedback on your A3 report while it is still in progress. Seeking feedback from multiple sources is likely to be very insightful.
  3. Continue using A3 reports to analyze, propose, and summarize your daily work processes and projects.

To find more information about this book, click here. Happy reading!

LEI offers lean workshops in Minneapolis on July 14-16, 2009

Lean Enterprise Institute (LEI) offers workshops on Lean Problem Solving, Value-Stream Mapping, Standard Work, Flow, and A3 Management Process:

What: Lean Workshops
When: July 14 - 16, 2009
Where: The Marquette Hotel in downtown Minneapolis
Cost: $800 for a 1-day class and $1600 for a 2-day class

Registration is required. Visit lean.org for complete details about available workshops and instructors.

March book review: Managing to Learn

John Shook
Managing to Learn. Using the A3 management process to solve problems, gain agreement, mentor, and lead

The term A3 refers to a size of paper defined by ISO 216. For lean organizations, A3 is also a problem-solving and improvement tool as well as a management style and process.

The A3 report is a standardized form for describing a problem on a single sheet of paper. The report communicates both facts and meaning in a commonly understood format. It describes a story behind a particular issue and is guided by PDCA (Plan, Do, Check, Act), an iterative problem-solving process. The process guides dialogue and analysis of the issue by discovering answers to the following questions:

  • What is the problem we are trying to solve?
  • Who owns the problem?
  • What are the current conditions?
  • What are the root causes of the problems?
  • What are the countermeasures?
  • What is the implementation plan?
  • How will we know if the countermeasures work?
  • How will we capture and share the learning?

In John Shook's book "Managing to Learn", you will find an excellent introduction to the fundamentals of A3 analysis as well as easy-to-understand examples on how to apply A3 thinking to improve problem solving, decision making, and communication in business organizations. John also explains the underlying learning process for developing talent and touches on how A3 enables the right decision at the right time. This capability of A3 helps lean organizations operate pull-based authority (aka, kanban democracy), where authority is pulled where it is needed and when it is needed: on-demand, just-in-time.

The book is organized around two story lines running in parallel. The first story line reveals the thoughts and actions of Desi Porter, a young manager who gradually discovers the meaning of the A3 process. The second story line describes the thoughts and actions of Ken Sanderson, Desi's supervisor who mentors Desi Porter in a structured problem-solving approach. While Desi is primarily concerned about his project of improving the document translation process in the company, Ken needs Desi and his other direct reports to master A3 thinking.

The book is both thoughtful and entertaining. I highly recommend it. If you are interested in learning more about the A3 management process, this book is for you.

To order this book from Lean.org, click here. Happy reading! 

Dinosaur Thinking video by Henrik Mårtensson

This short video provides an excellent overview of why Scientific Management worked well in the early 20th century and why it makes it very difficult for organizations to adapt to the new world today. Enjoy!

http://www.youtube.com/watch?v=VXW2j2BxBUQ

January book review: Scrumban

Corey Ladas
Scrumban: Essays on Kanban Systems for Lean Software Development

Many agile teams subscribe to a development approach which Corey Ladas describes as craft production. A team of generalists is working together on user stories from an incoming queue, usually a product backlog. Each idle team member (or each idle feature crew) takes ownership of one user story at a time until there are no idle team members or no pending user stories available. This approach allows a team to control the flow of work and achieve a level of predictability in the process. However, it provides limited knowledge transfer and division of labour and, thus, often results in high variability in deliverables.

In this book, Corey offers a different approach to managing work items. A team of specialists uses kanban scheduling and other lean techniques in order to maintain a smooth and continuous flow of business-valued work items and maximize their throughput into production. What I like about this approach is that it recognizes the area of expertise of each worker and provides clear leading visual indicators of project health (as opposed to a lagging indicator such as velocity).

The book is thought-provoking and very interesting to read. If you have been thinking about introducing a more formal engineering workflow within your team, this book is for you.

Happy reading!

October book review: Ready, Set, Dominate

Michael Kennedy, Kent Harmon, Ed Minnock
Ready, Set, Dominate: Implement Toyota's set-based learning for developing products and nobody can catch you.

This is a continuation of the book I reviewed earlier this year: Product Development for the Lean Enterprise. The authors pick up the story of the Infrared Technologies Corporation (IRT) a year later. The company has piloted bits and pieces of the Toyota System with various levels of success. The progress is visible but it is not sufficient to achieve the company goals. To make matters worse, the Board of Directors has run out of patience with IRT's poor financial performance and has hired a new Chief Financial Officer to improve profits fast. The new CFO does not believe in product development transformation efforts and recommends a different strategy: selling non-profitable side of business, outsourcing manufacturing, reducing cost through an across-the-board workforce reduction, and using profits to buy high-growth and high-profit companies...

No doubt, IRT faces serious challenges: market share is shrinking, overhead is increasing, and profits are deteriorating. Will the company be able to turn the situation around? Read this book to find out!

In the form of a business novel, the authors allow us to experience a journey towards Lean Product Development with the focus on Lean Knowledge Management. They point out common implementation mistakes and show how to effectively integrate the flow of innovative knowledge into a planned cadence of product releases.

Included with the book are case studies of two companies that have been successful at understanding and applying Toyota principles. I would like to quote one of them: "... once the desired specification was put on paper, it was viewed as an absolute requirement. No variance from the goal was acceptable. Since the requirements were not a variable, the only variables left were time and money. That meant missed schedules and cost overrruns."

Happy reading!

May book review: Product Development for the Lean Enterprise

Welcome again. Here is what I picked for this month's review:

Michael N. Kennedy
Product Development for the Lean Enterprise: Why Toyota's system is four times more productive and how you can implement it.

I first learned about Toyota production and product development around 5 years ago. Their numbers are truly impressive:

  • Toyota is consistently named at the top in owner satisfaction surveys
  • Toyota's  milestone dates are never missed
  • Toyota's engineers and managers achieve incredible 80% of value-added productivity (vs. 20% auto industry average in the US)
What does Toyota do differently from everybody else? How can we apply their principles to IT? Product Development is substantially different from Manufacturing. Which one is a better fit for an IT organization? 

While there is plenty of information on wildly admired Toyota Production System (Lean Manufacturing), there is considerably less data on Lean Product Development (Knowledge-Based Development). In order to better understand how these two systems are different, take a look at the table below:

  Lean Manufacturing Lean Product Development
Cycle Time: Short (minutes, hours) Long (days, weeks)
Core Material: Physical material Knowledge and information
Teams: Smaller, focused Larger, more diverse
Focus: Focus is on executing predefined tasks and automation Focus is on defining new solutions and building knowledge and expertise

In his book, Michael Kennedy introduces the principles of and key elements behind Lean Product Development:

  • Set-Based Concurrent Engineering
  • System Design Leadership
  • Responsibility-Based Planning and Control
  • Expert Engineering Workforce

In an engaging and humorous manner, he explains how these principles can be adapted and implemented in your organization. The book is thought-provoking, sophisticated, and extremely fun to read.  It appeals to my sense of humor and has a plot and engaging characters that no reader will forget. It will keep you occupied until early morning hours... ;-)

Principles of Lean Manufacturing work well for IT maintenance and support. Lean Product Development fits well IT software development teams. If you are a technical or functional leader in an IT organization, this is a must-read book for you!  I am sure you will enjoy it.

Happy reading!

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