The Science of Kanban - LKBE11                                               04 Oct 2011




                                 The Science of Kanban




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




                  KARL
                  SCOTLAND


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The Science of Kanban - LKBE11                                  04 Oct 2011




                                 Scientific Management




                                           Study


                           Learn                        Share
                                           System


                                   Sense            Limit




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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/




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The Science of Kanban - LKBE11            04 Oct 2011




                                 People




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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




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The Science of Kanban - LKBE11             04 Oct 2011




                                 Process




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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




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The Science of Kanban - LKBE11                         04 Oct 2011




                                          Difference




                          Temperature




                                        Adjustment




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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




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The Science of Kanban - LKBE11   04 Oct 2011




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The Science of Kanban - LKBE11                            04 Oct 2011




                                        Plan



                                 Act              Do



                                       Check




                                       Observe




                                 Act             Orient




                                       Decide




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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




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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

Karl scotland science of kanban

  • 1.
    The Science ofKanban - LKBE11 04 Oct 2011 The Science of Kanban [email protected] http://availagility.co.uk twitter.com/kjscotland KARL SCOTLAND Rally Software 1
  • 2.
    The Science ofKanban - LKBE11 04 Oct 2011 Scientific Management Study Learn Share System Sense Limit Rally Software 2
  • 3.
    The Science ofKanban - 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 ofKanban - LKBE11 04 Oct 2011 People Rally Software 4
  • 5.
    The Science ofKanban - 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 ofKanban - LKBE11 04 Oct 2011 Single Loop Learning Strategies & Assumptions Results Techniques Double Loop Learning Rally Software 6
  • 7.
    The Science ofKanban - LKBE11 04 Oct 2011 Process Rally Software 7
  • 8.
    The Science ofKanban - 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 ofKanban - LKBE11 04 Oct 2011 Difference Temperature Adjustment Rally Software 9
  • 10.
    The Science ofKanban - 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 ofKanban - 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 ofKanban - 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 ofKanban - LKBE11 04 Oct 2011 Rally Software 13
  • 14.
    The Science ofKanban - LKBE11 04 Oct 2011 Plan Act Do Check Observe Act Orient Decide Rally Software 14
  • 15.
    The Science ofKanban - LKBE11 04 Oct 2011 The Golden Circle What How Why http://www.startwithwhy.com/ Rally Software 15
  • 16.
    The Science ofKanban - 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 ofKanban - LKBE11 04 Oct 2011 Thank you! Email: [email protected] Twitter: http://twitter.com/kjscotland Blog: http://availagility.co.uk Rally Software 17