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13 14 Webinar on

Lean IT – An Approach to Enhance IT Value

Rajiv K Dua COBIT 5 Implementer & Assessor, CGEIT, ITIL Expert, ISO 20000 LA, CISA, PMP, COP



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Index


About Quint Wellington Redwood

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Core business: improvement of ICT organizations providing Consulting Measurement & Education Services in the area of Service Management, Strategy & Sourcing.

Introduced ITSM in 1992.

Operating in 49 countries globally

Trained and certified over 150,000 people worldwide

Three divisions:

Quint Consulting (ITSM, outsourcing, in-sourcing, PBSM, ISO implementation)

Quint Learning (training students, providing exams, train- the -trainer)

Quint Solutions (licensing course materials & exams)

Quint Wellington Redwood



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About Quint Education & Consultancy Portfolio

IT Service

Management



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Quint’s Portfolio on IT Best Practices



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Index


About Quint Wellington Redwood

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A perfect Example Can be Me !

Set of Concepts, Principles & Tools

Deliver Enhanced

Value from Customer’s Perspective and remove the Waste.

What do you think Lean is..

Thanks..Could you please elaborate?

Its’ a Mind Set & way of Thinking & Behaving

Sure… I will share overview of Lean Principles, Lean IT

Overview, Dimensions & Lean IT Trainings.



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Craft Production Mass Production Toyota Production System

Proved the value of continual improvement at General Electric

Customization

Highly skilled workforce

High cost

Moving Production Line

Production Engineering

Low cost, inflexible model

Focus on quality

Just-in-time production

Continual Improvement

Taylor Jack Welch

Lean In Service

Services & Health

Professionals

Productivity improvement

Business process improvement

Deming

History of Lean

1910 1920 1955 1887 2000

Scientific management, labour productivity

Lean Principles are proven and used across Industries



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Lean IT

Lean IT is the extension of Lean Manufacturing and Lean Services principles for

the development and management of Information Technology.

Its goal is to continually improve the value delivered by IT organizations to their

customers and raising the professionalism of the IT people.



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Six Sigma Lean Manufacturing Lean Services

Lean IT contains elements of several proven methodologies

Reduce variation Process improvement Characteristics: Statistical Data-driven problem- solving (DMAIC) Root Cause Analysis Subject: Product

Eliminate waste Process optimization Characteristics: Tangible Predictable Structured High degree of Measures Subject: Machine

Eliminate waste Professionalization Characteristics: Intangible Unpredictable Variations Relatively less Measures Subject: People

Lean IT is the extension of Lean Manufacturing and Lean Services principles



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Lean Principles - Customer Value at the Center

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

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

Demand triggers the process chain in order to reduce stock

First time right, focus on quality prevention of defects

Lean is ….mindset, a way thinking, with a commitment to achieve waste free operation

that is focused on Customer purpose



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Specify Value

Map the Value Stream

Create Flow

Establish Pull

Pursue Perfection

Putting Lean Principles into Practice



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I P O S C

Supplier

Who provides

input?

Input

What goes in

the process?

Process

The process

to analyze

Output

What comes

out of the

process?

Customer

Who receives the

output of the

process?

SIPOC: The Tool

SIPOC: a process scoping tool.

Aims to help a team to determine

what the start and end of a process

are.

SIPOC stands for:

S = Supplier

I = Input

P = Process

O = Output

C = Customer

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I P O S C

Supplier

Who provides

input?

Input

What goes in

the process?

Process

The process

to analyze

Output

What comes

out of the

process?

Customer

Who receives the

output of the

process?

1. Understand the VOC Define the Customer and Output

What is the customer’s

perception of current

performance?

How would the customer

respond if we stopped delivering

this work?

SIPOC: Output and Customer

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I P O S C

Supplier

Who provides

input?

Input

What goes in

the process?

Process

The process

to analyze

Output

What comes

out of the

process?

Customer

Who receives the

output of the

process?

SIPOC: The Process

2. Select the Value Stream ▪ Determine the scope with

stakeholders

▪ Scope the process to determine what

to include in the VSM

▪ Determine the Process

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I P O S C

Supplier

Who provides

input?

Input

What goes in

the process?

Process

The process

to analyze

Output

What comes

out of the

process?

Customer

Who receives the

output of the

process?

3. Complete the SIPOC ▪ The scoping is completed by

defining the Input and the

Supplier of that input

SIPOC: Supplier and Input

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I P O S C

Supplier

Who provides

input?

Input

What goes in

the process?

Process

The process

to analyze

Output

What comes

out of the

process?

Customer

Who receives the

output of the

process?

Step 1 Step 2 Step 3 Step 4 4. Describe the process steps Define the steps

Give a high level description of the

deliverables in each step

SIPOC: Process Steps

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Symbols used to detail the Value Stream Map - Lean

Transport

Inventory

Waiting Time

Motion

Rework

Customer

Supplier

Go See

Load Levelling

Rework

Supermarket

Information

Process or Process Activity

Information flow

Physical flow

Kaizen Burst

Employee

Fifo lane

Push

Pull

Kanban Post

Kanban Withdrawal

Batch

Kanban Card

Kanban Signal



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Concept of Value and Waste

Any Business Activity

Either Adds Value

or

Generates Waste

Value is desired “Benefit” generated for Customer by facilitating their

business outcomes

Waste is defined as “any business activity that adds no value but absorbs resources”



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An activity that does not add value to the output product or service. ..Eliminate NVA activities. Rework to fix errors, delays, repeated reviews, Redundant work, over-production, over-processing

An activity performed in a process which is useful for the customer and he/she is willing to pay for… Improve VA activities. Application development for needed functionalty; Operational Prodction Jobs Issue of Laptop, Installation of application

Non-Value-add (Waste ) Value Add

Necessary Non-value-add (Value Enabling/Incidental Work)

Activities or steps necessary to maintain the business…Review to Reduce NVA activities. Recruiting staff, Finance & accounting, Regulatory requirements; creation of internal reports

Customer Needs

Business Needs

Not Needed

Lean - Three types of activities



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1. Value-add

Work that adds value in the eyes of the customer

The customer is willing to pay for this work

- Application development, System Build

2. Necessary non-value-add

Work that does not add value for customer, but needs to be done

- Recruiting staff, Finance & accounting, regulatory requirements

3. Non-value-add

Work that does not add for the customer or the business

- Redundant work, doing more than required

Lean - Three types of activities

Maximise

Minimise



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Things to remember about waste

It is a symptom rather than a root cause of the problem

It points to problems within the system, at both process and value stream levels

We need to find and address the causes of the waste



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Reduce Waste, Variability and Inflexibility

Motion

Inventory

Over processing

Defects & Rework

Waiting time

Transportation

Variability Customer Introduced variation -Variability in

customer volume demand and variation in product varieties

Internal Process variation - People, Machine, Methods and Information Variability

Inflexibility Team capacity cannot scale up or down with customer demand Skill & Knowledge doesn’t match customer demand Batch and queue operating model; fixed volumes or specifications Fixed timing constraints for delivery; change windows

Waste

Overproduction

Muda Mura

Muri



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Information Waste

Waste Element Examples Business Outcome 1.Defects •Unauthorized system and

application changes. •Substandard project execution.

Poor customer service, increased costs

2.Overproduction (Overprovisioning)

•Unnecessary features built into the application.

Business and IT misalignment, Increased costs and overheads: energy, data centre space, maintenance

3.Waiting •Slow application response times. •Manual service escalation procedures.

Lost revenue, poor customer service, reduced productivity

4. Non-Value Added Processing

•Reporting technology metrics to business managers.

Miscommunication



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Information Waste

Waste Element Examples Business Outcome 5. Transportation • Unnecessary movement of

material(hardware/software) parts to resolve hardware and software issues.

Higher operational expenses

6. Inventory (Excess) •Server sprawl, underutilized hardware. •Benched application development teams

Increased costs: data centre energy costs

7. Motion (Excess) • Unnecessary movement of people to resolve hardware and software issues – not using Remote support.

Lost productivity and operational expenses

8. Employee Knowledge (Unused)

•Failing to capture ideas/innovation. •Knowledge and experience retention issues •Employees spend time on repetitive or mundane tasks

Talent leakage, low job satisfaction, increased support and maintenance costs



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The Lean IT dimensions: Customer, Process, Performance, Organization and Attitude & Behavior

Define, analyze and improve customer value

Focus on the needs, wishes and requirements of the customers

Is the organization structured to meet customer demand?

Focus of Organization Structure is on Lean Management Practices and not on Management layers

Are knowledge and skills of the employees aligned with the customer demand?

Analyze the current and future process

Why are we doing this work?

What value does this process/activity add to the customer?

Identify improvement potential

How much time is spend on value add activities ?

What is the process, team and individual performance?

Implementation of KPIs to steer to achieve the desired results

Lean Culture is the

driving force for Lean

Implementation initiative.

Unambiguous and

common understanding

of Customer Value

Passion & Unified

approach to deliver

Customer Value



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Customer



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• First step in Lean IT journey is identification of Customers (External & Internal)

• The ones that pay for the system.

• The ones that use a system.

• Key is a deep understanding of what customers really value and how their needs and attitudes change over time.

• Knowing what customers value enables us to set priorities and goals consistent with customer needs and allows us to keep building on their loyalty.

• The Lean IT journey depends on continuously improving people, processes and technology, strongly connected to a customer’s perspective.

Any Lean effort starts and ends with the customer in mind

Who is the customer?



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The Voice Of the Customer (VOC)

Only the customer defines the value of a service or product

Appreciation is subjective and consist of collection of wishes, demands and expectations

The VOC changes over time with new insights and expectations

VOC

Analysis of the VOC

VOC analysis covers the entire proces chain that the customer experiences when receiving the service or product

Segment the Customers based on their distinctive requirements

Voice of the Customer is central to Lean.

It has got everything to do with understanding the Value that you need to deliver.



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Critical to Quality connects VOC with IT outcome

Priority setting of customer demands is called the Critical to Quality tree

The CTQ-tree is structured in groups and dependencies

Not all requirements or wishes can be met, the customer and the producer should make choices between conflicting and limiting preconditions

To know and apply the CTQ-tree of your product or service requires ongoing dialogue with customers

The Voice of the Customer ( External Measure) is expressed in the CTQ tree, which is used as measure for internal performance targets(Internal Measure).

Voice of the Customer

Requirement (Must Have)

Wish (Nice to have)

CTQ Tree IT Delivery



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CTQ Tree from strategic business purpose to customer value through CTQ

Voice of the Customer

Improvement Goal

CTQs

Attribute

Shorten turnaround time software development

CTQ

Reduce waiting time between the steps in the development process

Number Of Repairs

Reduction of waiting time

Assignment Intake

CTQ CTQ

CTQ

Developers start working too late

Development process always takes 20 weeks

CTQ

Strategic Business Goal

CTQ Tree makes the problem measurable

Economic

indicators

Process

metrics



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Kano Model

HIGH Customer

Satisfaction

LOW Customer

Satisfaction

Customer

wish well

met

Customer

wish poorly

met

Delighters

Performance

Basic

Requirements

The Kano model is a technique to determine the relative value of customer wishes



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Customer Feedback

Observe the customers when they use the product or service at their location or where the customer interaction takes place

Ask customers to give feedback immediately after the service

Experience, as a mystery guest, what it is like to be customer of your own product or service

Ways to obtain specifications:

Interviews with a customer

Focus group

Questionnaire

Observation

Ways to analyse VoC

Without regular feedback from customers about your performance is like driving on a highway without markings



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Lean – Summary of Customer dimension

Customer determine customer value

Voice Of the Customer analyzes what customer appreciates in a service or product

Customer expectations vary in time

Customer oriented working is difficult and requires attention

Attitude and behavior are essential

What is the essence of the Customer dimension? What are the key points?

Customer CTQ Tree VOC Kano Feedback

Examples of Lean instruments or concepts

Customer value must be increased!

Satisfiers, Dissatisfiers, Delighters

CTQ Tree links strategic goals and customer value to CTQs

Critical To Quality translates customer value to measurable activities



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Lean – Summary of Process dimension

Choose the process to be analysed through the VOC

Determine scope and process steps with SIPOC analysis

Make current state VSM from SIPOC

Indentify and quantify waste

Validate with stakeholders

What is the essence of the Process dimension? What are the key points?

Process SIPOC VSM Takt time


Current and future state value stream

Measure and validate!! ( Go See to ensure correct data)

Identify improvement actions based on the Value stream map

Involve the team



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Lean – Summary of the Performance dimension

Measuring performance is essential for meeting the customers requirements

KPIs to measure the performance of the organization

KPIs are used at each level in the organisation to steer behaviour

What is the essence of the Performance dimension? What are the key points?


Earning Capacity Analysis

Determine Skills & Knowledge Matrix and develop an action plan to bridge the gap.

Involve the team and reflect to learn and uncover problems

Performance Variability Time usage Earning/Burning KPIs



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Lean – Summary of the Organization dimension

What is the essence of the Organization dimension? What are the key points?


A performance dialogue includes: 1. Agree performance 2. Offer support 3. Give feedback on performance and behaviour

A working cascade ensures that problems get to the right level for resolution as quickly as possible

Organization Continual Improvement

Day and week start Real time updates Delegate

Structure the organization to optimize the delivery of customer value

Empower employees to work effectively and solve problems

Visible Management makes work transparent

Faster information flow and ability to steer!



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Five dimensions and Continual improvement are the heart of Lean IT

Lean IT is structured in five dimensions

Kaizen to facilitate continual improvement



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A Kaizen consists of five steps to resolve the problem and to implement solutions

Define

Describe symptoms and define the problem

Ensure stakeholders agree on scope of problem

Measure

Collect data and facts about the problem

Validate the data

Analyse

Analyse and structure the data

Define and test hypotheses regarding the problem

Improve

Define alternative solutions

Decide on and implement improvements

Control

Anchor the change in the organization

Share lessons learned

?



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Five dimensions and Continual improvement are the heart of Lean IT

Lean IT is structured in five dimensions

Kaizen to facilitate continual improvement



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Lean – is a way of thinking and behaving

Lean thinking and behavior is about:

Improving customer value

Focusing on long-term goals

Continual improvement in small steps

Reducing waste

Decreasing peaks and troughs in production

Involving everybody

Developing people

Strategic goals

Professionalism

Continual improvement

Customer orientation ( Key Focus of Lean)

Efficiency Quality

Cooperation

An effective Lean Transformation consists of changing attitude and behavior, supported by Lean tools

Lean is Customer Value Enhancement Programme by removing waste,

Lean is not a cost reduction programme.

“Lean” makes people “Learn to See Waste”



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Lean Management Approach

Traditional Lean

Managers have all the answers Manager should ask the right questions, employees should have the answers as a team

Managers do the thinking, workers concentrate on doing

Managers facilitate the workers to add value

Activities are done, because they are asked to be done

Activities are only done if they add value for the customer

A certain rate of defects is unavoidable Defects can be eliminated



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Lean IT Benefits

Better

Faster

Happier

Cheaper



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Lean IT is complementary to other frameworks

Lean IT is NOT a guidance on IT subject matters. Lean IT is a generic improvement approach with a strong focus on behavior

and attitude Lean IT is applied on the entire IT domain, from requirements to

maintenance Applying Lean IT involves the entire management and all the employees

IT best practices deliver IT content on how things like architecture, service management or security should be done

Attitude and behaviour elements of change are NOT covered in these frameworks

The IT best practices guides us how the process should be structured Lean tools are used to optimize the process and reduce waste. The combination of Lean IT and IT best practices is very powerful approach

Positioning of Lean IT

IT Best Practices

Combine



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Lean IT and ITIL®

Best practice framework for IT Service Management with five main processes: 1. Service Strategy 2. Service Design 3. Service Transition 4. Service Operation 5. Continual Service Improvement

What is IT Infrastructure Library?

Similarities and differences between Lean IT and ITIL

Strong focus on design and improvement of processes

Continual improvement of services

ITIL® and IT Infrastructure Library® are Registered Trade Marks of Cabinet Office

ITIL defines how IT processes should be defined

Lean IT pays more attention to attitude and behaviour

Similarities Differences



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Lean Implementation Phases

Phases Objective Key Concepts/Tools Outcome

Awareness & Capability Building

Paradigm Change

Lean IT Foundation, Advanced Lean IT Trainings

Lean Thinking

Diagnostic Detect Problems

Value Stream Mapping Improvement Plan/Kaizen Opportunities

Remedial Solve Problems

Kaizen, A3 Problem Solving JIT, Kanban, Visual Management, Standardized work

Improved Processes

Sustenance Hold the Gains & Continue the perfection journey

Education & Training Reward & Recognition Lean Promotion Office Lean Enterprise

Lean Culture, Continuous Improvement of Process, People & Culture



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Setting the Standard for Lean IT Education and Certification



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What is LITA and Why LITA?

Lean IT Association (LITA) is a non-profit organization founded by three Accredited Training Organizations (ATOs) - ITpreneurs, Pink Elephant, Quint Wellington Redwood and three Examination Institutes (EIs) - APMG, EXIN, PEOPLECERT International Ltd

Why LITA? Lean principles have been used in a variety of industries for some years now. The IT industry has embraced these principles using the term “Lean IT”, but while there have been some fragmented initiatives for education & certification in Lean IT, there was no universally accepted program.



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Objectives of LITA are to provide:

An industry-standard set of Lean IT reference materials and other resources for practitioner organizations to use;

A clear understanding of the value and positioning of Lean IT relative to other bodies of knowledge, frameworks and standards;

A certification scheme aimed at practitioner organizations looking to adopt Lean IT principles in the IT Service development and operations department as well as professionals that want to be certified in Lean IT on various levels.



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Lean IT Foundation Course – 2 Days



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The LITA certification scheme



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Lean IT Foundation Exam



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Lean IT Foundation Calendar

05 - 06 Oct – Delhi NCR

19 – 20 Oct – Bangalore

02 -03 Nov – Mumbai

19-20 Nov - Chennai

16 – 17 Nov – Pune

23 – 34 Nov – Hyderabad



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Lean IT Foundation – E-Learning + Certification

Lean IT E-learning price is $200 + $ 150 for exam

Discounted price for registered candidates is $150 including

certification.



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13 14 Webinar: “Understanding Prince2 Agile“

THANK YOU FOR YOUR TIME

Rajiv K Dua COBIT 5 Implementer & Assessor, CGEIT, ITIL Expert, ISO 20000 LA, CISA, PMP, COP



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Thanks

www.academy.quintgroup.com

For Enquiries or any further details, please write back to

Vaibhav Chauhan [email protected]

Call us at 9818855635

http://www.academy.quintgroup.com/

mailto:[email protected]

Documents

Webinar on Lean IT An Approach to Enhance IT Valuefiles.clickdimensions.com/quintgroupcom-au3iw/files/leanitwebinar... · Lean IT – An Approach to Enhance IT Value ... ITIL Expert,