Application of Lean in IT/ITES Group 5 Poornima Muralidharan (365) Gautam Sood (239) Vaibhav Bansal (207)

Agenda Wastes & Lean methodologies in IT/ITES LSD XP Scrum Case Study

Wastes in IT/ITES Industry

Lean Methodologies used in IT/ITES Lean Software Development Extreme Programming Scrum Feature Driven Development Agile Unified process DSDM Lean Six Sigma …

Lean Software Development (LSD)

Principles & Techniques Sr. No. Principle Details Techniques 1 Eliminate waste Types of wastes Partially done work Task switching Unnecessary development step Defects Seeing waste Value stream mapping 2 Amplify learning Cycles of trying & reviewing Accepting cycle failures Risk balancing Feedback Iterations Synchronization Set based development 3 Defer Commitment Traditionally, Freezing requirements & Change specifications Sequential process In LSD, Deferring decisions to reduce waste & impact of change Initially open options Take decision at the last responsible moment

Principles & Techniques Sr. No. Principle Details Techniques 4 Deliver fast Quicker realization of business case Iterative & Incremental development Pull system/Kanban Queuing Theory Cost of delay 5 Empower the team Empowering a skilled team more productive than using pre-scripted procedures Self determination Motivation & Leadership Expertise 6 Build quality & integrity Testing not a stand alone activity Removal of source of defects as a part of continuous improvement Perceived integrity Conceptual integrity Refactoring Testing 7 Optimize the whole Address the cause of process deficiency instead of symptoms Measurements Contracts

Current State Value Stream Map for SDLC From a research paper on VALUE STREAM MAPPING FOR SOFTWARE DEVELOPMENT PROCESS

Future State Value Stream Map for SDLC From a Research Paper on VALUE STREAM MAPPING FOR SOFTWARE DEVELOPMENT PROCESS

Extreme Programming (XP)

XP values Project organization Customer Programmer Management Team Communication Feedback Courage Simplicity Customer Programmer Management Team

SCRUM

Scrum-Agile Project management Focuses on how projects are planned, organized & delivered Should be used as a complement to agile development methods such as LSD and extreme programming Is a way to organize teams to make them more productive and produce higher quality software Development occurs in a cycle of 30 days or less – typically 14 days (called as Sprints)

Roles within Scrum Product Owner Scrummaster Team Artifacts Product backlog Release backlog Sprint backlog Burn-Down Chart

Case Study – Fujitsu helps U.K. Post Office deploy ‘Lean IT’

Post Office-Fujitsu collaboration Post Office is a separate company within the Royal Mail Group, and is the largest retail and financial services chain in the U.K. Network of approximately 11,500 outlets and slightly more than 30,000 serving positions All outlets are supported with a package that includes custom-built keyboards, pay stations, a printer for each terminal and a power supply. IT services provider Fujitsu has provided a service desk to support Post Office's IT systems since 1996. Fujitsu manages all IT and support for servers as well as LAN and WAN. Post Office manages the provider that delivers telecommunications services as well as its relationship with end users. In 2007, to guarantee the requested geographic coverage, Fujitsu decided to subcontract the IT support work/field services to a third-party organization. This change was totally transparent to customers, and to this day, Post Office and Fujitsu hold weekly and monthly service reviews to evaluate the service delivery performance.

Lean IT Approach Challenge Success of the relationship was judged on the basis of conventional IT metrics Felt the need for focus on service quality & continuous improvement Fujitsu decided to support Post Office in improving the customer experience by proactively reducing the number of calls hitting the help desk, while reducing overall IT costs Focus Method Root cause analysis & Reduction in no. of calls User workshops Increase in Efficiency Training on best practices & benchmarking To define service delivery value Problem solving sessions & Demand analysis

Results Lessons 24% reduction in incidents per month Ability to use saved funds to introduce portable POS for rural areas Shift work left to Fujitsu’s communication management team Results Involve front office as well as back office staff Lean IT takes time Defining a problem and its relevant solution is only the first step Lessons

Challenges for LEAN IT Value-Stream Visualization Reference Implementations Resistance to Change Fragmented IT Departments Integration of Lean Production and Lean Consumption Value-Stream Visualization Unlike lean manufacturing, from which the principles and methods of Lean IT derive, Lean IT depends upon value streams that are digital and intangible rather than physical and tangible. This renders difficult the visualization of IT value streams and hence the application of Lean IT. Whereas practitioners of lean manufacturing can apply visual management systems such as the kanban cards used in the Toyota Production System, practitioners of Lean IT must use Enterprise IT Management tools to help visualize and analyze the more abstract context of IT value streams. Reference Implementations As an emerging area in IT management ,Lean IT has relatively few reference implementations. Moreover, whereas much of the supporting theory and methodology is grounded in the more established field of lean manufacturing, adaptation of such theory and methodology to the digital service-oriented process of IT is likewise only just beginning. This lack makes implementation challenging, as evidenced by the problems experienced with the March 2008 opening of London Heathrow Airport’s Terminal 5. British airports authority BAA and airline British Airways (BA), which has exclusive use of the new terminal, used process methodologies adapted from the motor industry to speed development and achieve cost savings in developing and integrating systems at the new terminal.  However, the opening was marred by baggage handling backlogs, staff parking problems, and cancelled flights. Resistance to Change The conclusions or recommendations of Lean IT initiatives are likely to demand organizational, operational, and/or behavioral changes that may meet with resistance from workers, managers, and even senior executives. Whether driven by a fear of job losses, a belief that existing work practices are superior, or some other concern, such changes may encounter resistance. For example, a Lean IT recommendation to introduce flexible staffing whereby application development and maintenance managers share personnel is often met with resistance by individual managers who may have relied on certain people for many years. Also, existing incentives and metrics may not align with the proposed staff sharing Fragmented IT Departments Even though business services and the ensuing flow of information may span multiple departments, IT organizations are commonly structured in a series of operational or technology-centric silos, each with its own management tools and methods to address perhaps just one particular aspect of waste. Unfortunately, fragmented efforts at Lean IT contribute little benefit because they lack the integration necessary to manage cumulative waste across the value chain. Integration of Lean Production and Lean Consumption Related to the aforementioned issue of fragmented IT departments is the lack of integration across the entire supply chain, including not only all business partners but also consumers. To this end, Lean IT consultants have recently proposed so-called lean consumption of products and services as a complement to lean production. In this regard, the processes of provision and consumption are tightly integrated and streamlined to minimize total cost and waste and to create new sources of value

Lean IT Transformation Roadmap Total cost of ownership Simple commoditized Packaged solutions Small and Low complex custom packaged business applications Medium size, moderately complex custom packaged business applications Large complex and Business critical custom packaged business applications Lean IT Traditional IT Lean IT Transformation,Bhavin Raichura, Vijay Rao (INFOSYS)

References Lean IT Transformation,Bhavin Raichura, Vijay Rao http://www.infosys.com/offerings/cloud/resource-center/Documents/achieve-business-agility.pdf Case Study: ‘Fujitsu Helps U.K. Post Office Deploy a 'Lean IT' Approach to Cut Costs and Improve Help Desk Service Delivery ‘by Gianluca Tramacere Agile Foundation: Lean Software Development, David Norton Extreme Programming and Agile Software Development Methodologies, Lowell Lindstorm & Ron Jefferies Agile Foundation: Scrum, David Norton Research Paper on VALUE STREAM MAPPING FOR SOFTWARE DEVELOPMENT PROCESS

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