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

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

3. Wastes in IT/ITES Industry

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

5. Lean Software Development (LSD)

6. 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

7. 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

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

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

10. Extreme Programming (XP)

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

14. SCRUM

15. 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)

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

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

19. 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 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.

20. 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

21. 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

22. 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

23. 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)

24. References Lean IT Transformation,Bhavin Raichura, Vijay Rao
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

25. Thank You