Lean IT as a Practical CSI Methodology - Professional .Lean IT as a Practical CSI Methodology Troy

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  • SESSION 202 Monday, November 2, 11:30am - 12:30pm

    Track: Continual Service Improvement

    Lean IT as a Practical CSI Methodology

    Troy DuMoulin VP, Research and Product Development, Pink Elephant t.dumoulin@pinkelephant.com

    Session Description

    Simply put, Lean IT improvement methods focus on achieving customer value while eliminating wasted steps and optimizing process value streams. While ITIL does a good job of describing the concept of continual service improvement, Lean takes it one step further to give you practical and repeatable tools to accomplish this important goal. This session will explain Lean major guiding principles and improvement methods and how they used to enable continual service improvement. Attendees will walk away with an understanding of what Lean IT is and why they should never design or improve another process without considering it through a Lean lens. (Experience Level: Advanced)

    Speaker Background Troy DuMoulin is a leading ITIL and IT governance authority with extensive experience in executive IT management consulting. Troy is an ITIL Expert and has led many ITSM programs with regional and global scope. Hes a frequent speaker at IT management events and is a contributing author to multiple ITSM and lean IT books, papers, and official ITIL publications.

    mailto:t.dumoulin@pinkelephant.com

  • Lean IT as a Practical CSI Methodology

    Troy DuMoulin VP, Research, Innovation & Product Development

    Pink Elephant

    Welcome & Agenda 1. Applying Lean To IT Value Streams

    2. The Impact Of Culture On Flow

    3. The Importance Of standard Work &

    Incremental Improvement

    4. Working Smarter Not Harder

    Objective

    Understand how IT organizations may adopt

    proven Lean IT assessment and improvement

    practices to identify waste, improve efficiency

    and the overall speed of execution.

    2

  • Lean Is

    3

    A Strategy for Operational Excellence based on Clearly Defined

    Values to Engage People in Continuously Improving Safety,

    Moral, Quality, Cost and Productivity

    Jeffery Liker Lean Leadership At Every Level

    RISK GAP Lack of availability,

    performance, reliability, quality

    Process Requirements Increasing number of products and services

    Increasing rate of change

    Increasing complexity/data interdependency

    Increased speed and efficiency

    Increased speed to market

    Reduced costs

    IT Process Capabilities Silo/Fragmented/Redundant processes

    Lack of integration, automation

    Lack of visibility

    Operating as a mature IT Service Provider requires consistent management processes across silos!

    The Risk Gap For Business Growth Goals

    Scalability of Management Processes Over Time

    Increa

    sed B

    usin

    ess Need

    Of IT Services

    4

  • Lean Is A Way Of Thinking & Acting

    Lean thinking and acting is all about:

    Increasing customer value Eliminating waste Management as facilitator Involvement of all employees Continual Improvement

    Preserving value with less work.

    Stability Robustness

    5S Kaizen

    Standard Working

    Heijunka

    Just in Time Jidoka

    Quality

    Delivery Costs

    5

    What Is Lean IT?

    Lean IT is the extension of lean manufacturing and lean services principles to the development and management of information technology products and services. Its goal

    is to continuously improve the value delivered by IT organizations to their customers and the professionalism

    of IT people.

    Source: Lean IT Association

    6

    Copyright 2015 Lean IT Association

  • The Nature Of Change

    Kaizen Incremental Change

    Kaikaku Large Step Change

    Kakushin Transformational Change

    7

    The Importance of Standard Work

    8

    Kai

    zen

    Kai

    zen

    Standard Work

    Standard Work

    Without a standard there can be no Kaizen

    Standard work must evolve and change

    Standard work is the basis for stabilization

    Standard work removes subjectivity

    Without a standard it is not possible to understand if the change is an improvement

    Standard work sustains the Kaizen outcomes

    Standard work establishes the best (fit for purpose) methods and

    sequence for each process and each stakeholder

  • Process: Series Of Actions Triggered By Customer Demand

    A series of actions that must be performed correctly in the correct sequence at the correct time to create value for a customer

    On an abstract level, organizations have three processes:

    Design: Concept to launch product and process development

    Delivery: From order intake to product delivery

    Support: Customer use during life of the product

    Lean Process Characteristics

    Primary Processes

    9

    IT Value System Partner Network

    Customer Engagement

    Plan/Build Management

    Operations Excellence

    Governance

    Continual Improvement

    Monitoring Reporting

    Service/Process Improvement Efficiency/Effectiveness

    Strategy/Planning Demand

    Resource Capacity Priorities/Scheduling Process Ownership

    Compliance Financial

    Business Relationship Mgmt. Demand Management

    Service Catalog

    Strategy/Design/Transition Operational Goal: Manage service operations to maximize customer outcomes and minimize cost

    Operational Goal: Manage the risk and resources to deliver quality, cost-effective services and service enhancements

    Operational Goal: Understanding and managing customer needs, requirements and expectations to solve business problems and deliver value

    10

  • Velocity Vs. Agility

    11

    Velocity = Speed With Direction!

    Is Enterprise IT A Myth?

    Demand Plan Build Run

    The Challenge Of DevOps & Silo Mentality

    Time & Money Stability & Control

    12

  • Transition Planning

    Change R + DM SACM T + Validation Evaluation Knowledge

    Strategy Management

    Demand Portfolio Finance

    Factory Store Front Delivery & Support

    BRM

    Catalog

    Request Fulfillment

    Service Desk

    Incident Mgmt.

    Application & Infrastructure Maintenance

    Design Coordination

    Security Availability Capacity ITSCM Supplier SLM, SCAT

    Project Portfolio

    Operations

    Event Incident Request Problem Access

    Bu

    siness Services

    Ap

    plicatio

    n Layer

    Infrastru

    cture Layer

    Data Layer

    Professional Services

    Data Center Environment

    Network Facilities

    Techn

    ical Service

    s

    Lessons Learned

    Charter

    Initialize

    Plan/Build

    Implement

    Stabilize

    13

    Create continuous flow in production with the Just-in-Time approach and reduce peak and low volumes

    Lean Customer Value At The Center

    Assess if all the activities in the process add value in the eyes of the customer

    Demand triggers the process chain in order to reduce stock

    First time right Focus on quality and prevention of defects

    14

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  • The Problem The Dualistic Nature Of IT Cultures

    The concept that the IT Organization is conflicted by seemingly antagonistic goals

    Provide stable, secure and reliable IT Services

    Respond quickly to

    urgent business needs

    15

    Proactive Problem Solving

    16

    Reactive vs. Proactive Problem Solving

    Lean is not just about hunting down waste and reacting to the crisis of the day. Its goal is to move an organization to a desired state through relentless

    problem solving and incremental improvement.

  • DMAIC CSI Methodology

    Control

    Improve Analyze

    Define

    Measure

    IMPROVE MEASURE DEFINE CONTROL ANALYZE

    Ishikawa Quick Wins (Identify)

    Quick Wins (Implement)

    VOC

    SIPOC (Current)

    SIPOC (Revised)

    5 Whys VSM (Current)

    VSM (Future)

    Pareto

    KPIs (Monitor)

    KPIs

    CTQ KPIs

    (Updated)

    Problem Solving Methodology

    17

    Preserving Value With The Least Effort

    18

  • The 3 Ms Of Waste

    Muda Unnecessary, Non Value

    Mura Variation, Variance

    Muri Over Burdened

    19

    Value-Add: Work that adds Value in the eyes of the customer that they are willing to pay for: Application development Server Maintenance

    Non-Value-Add: Work that does not add Value for the customer or the business: Redundant work Solving IT incidents Doing more than required

    20

    Optimize

    Minimize

    Remove

    Lean Three Types Of Activities

    Necessary Non-Value-Add: Work that is not Value-Add but must be done: Recruiting staff Finance and accounting Application testing

  • Flow Killers

    21

    Defects/Incidents

    Re-work

    Problems

    Variation

    In-flexibility

    Over-burden

    Over production

    Waiting

    Over processing

    Bottlenecks

    Examples Of IT Waste

    Multiple Service Desks all with their own tools and separate pro