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.comLean 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 Increased Business 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 KaizenKaizenStandard 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 Business Services Application Layer Infrastructure Layer Data Layer Professional Services Data Center Environment Network Facilities Technical Services 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 http://www.google.ca/url?sa=i&source=images&cd=&cad=rja&docid=K82ea8uf5heZLM&tbnid=AfuHk8vl_xuzlM:&ved=0CAgQjRwwAA&url=http://www.clker.com/clipart-forklift-1.html&ei=3V-OUq_QF-mwyQHusYGgCg&psig=AFQjCNGMavZ1GB-TaRK4p4M-MLQqKv8TmQ&ust=1385148765444722The 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 processes Massive amounts of wasted server capacity due to a lack of Capacity and Demand Management Redundant and duplicate IT Management tools being purchased by various IT departments in the same organization Redundant IT groups and stealth data centers being built by independent parts of the business A willingness to solve the same Incidents 1000s of times without looking at the root of the problem Multiple Change Management processes due to political boundaries Losing track of tens of thousands of dollars of IT assets due to poor tracking controls and inventory processes Supplier contracts expiring without knowledge until an Incident occurs A willingness to supply multiple/duplicate versions of the same services The total lack of ability to provide visibility into the cost of an IT service The list goes on... 22 23 Lean IT Association What Do I Do Tomorrow? Troys Blog: blogs.pinkelephant.com/troy PR 63 Using Lean Visual Management For ITSM PR 59 Lean IT Gaining Sr. Leadership Buy In PR 18 TOC, LEAN & Six Sigma The Three CSI Sisters Using Lean Principles For Effective CSI Education: Lean IT Foundation: Using Lean Principles For Continual Service Improvement 24 Combining Lean IT & ITSM To Enable Grass Roots Continual Service Improvement Pink Elephant, 2015. All Rights Reserved. Questions? Troy DuMoulin t.dumoulin@pinkelephant.com blogs.pinkelephant.com/troy @TroyDuMoulin APMG-International Lean IT is a trade mark of The APM Group Limited. Thank you for attending this session. Please dont forget to complete an evaluation form! http://www.google.ca/url?sa=i&source=images&cd=&cad=rja&docid=LfP1lArOcuShTM&tbnid=WkosH23yY4x5KM:&ved=0CAgQjRwwAA&url=http://www.cubadublinfestival.com/&ei=CFA8UvzRJ4qd2gXImYCoBQ&psig=AFQjCNE-29fSanVrLjrzSREOCkK48mPPBw&ust=1379770760767059


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