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Exploring Flow Metrics in Kanban Systems AN INTRODUCTION TO KEY FLOW METRICS THAT LOOK INSIDE PROCESSES AND REVEAL THEIR SECRETS ANDY CARMICHAEL @andycarmich [email protected]
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Exploring flow metrics in kanban systems

Jan 14, 2017

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Page 1: Exploring flow metrics in kanban systems

Exploring Flow Metrics in Kanban Systems AN INTRODUCTION TO KEY FLOW METRICS THAT LOOK INSIDE PROCESSES AND REVEAL THEIR SECRETS

ANDY CARMICHAEL@andycarmich [email protected]

Page 2: Exploring flow metrics in kanban systems

“Doing Agile” versus “Being agile”

Agile practices Pair programming Daily stand-ups Combining development and

operations processes (DEVOPS) Burn-ups, Burn-downs, CFDs Continuous Integration / Delivery Test-Driven Development Automated build and test “Sprints” (the cycle between

deliveries / plan changes) Story point estimating Multi-disciplinary teams Retrospectives

Agility (the quality possessed by those who are “agile”) Ability to change direction (or

deliver change) at speed Shorter time from idea to value Less waste from a change in the

plan Limited cascade of change from one

area to another Small changes are inexpensive Releases are frequent (and

inexpensive) Resistance to valuable change is low

Page 3: Exploring flow metrics in kanban systems

Kanban Foundational Principles

of change management1. Start with what you do now

including current processes current roles and

responsibilities current job titles

2. Agree to pursue improvement through evolutionary change

3. Encourage acts of leadership at every level in your organisation - from individual contributor to senior management

of service delivery1. …2. …3. …

Watch David Anderson’s blog for more on this topic coming soon…

Page 4: Exploring flow metrics in kanban systems

See Delivery as a “Flow System”

Pool of Ideas

Proposals Selected Development Acceptance Complete

Commitment Delivery

Lead Time

Work in Progress

Delivery Rate Items per time period

Work Item

Page 5: Exploring flow metrics in kanban systems

Flow Systems follow Little’s LawIn 1961 Dr John Little (studying Queuing Theory) proved that, in a stationary system:

λ = L / W

λ is the average arrival rate L is the average number of items in the

queue, W is the average time in queue

Subject to similar assumptions we can apply this to delivery systems:

Throughput = WiP / TiP 

The overline indicates the average (arithmetic mean) Throughput (Th) is the rate items depart the system

under consideration. If this is at the Delivery point (and there are no discards) we call this Delivery Rate

WiP is the number of items in the system TiP is “time in process” for an item from entering to

leaving the system (or part of the system) under consideration. We call this Lead Time for the time taken from the Commitment Point to Delivery Point.

Page 6: Exploring flow metrics in kanban systems

Little’s Law is a precise relationship provided the system’s not trendingThat is, either:

The period being averaged is between 2 consecutive points where WiP=0or The system is “stationary”

In a “stationary” system… The age of WiP has not changed significantly over the period The amount of WiP has not changed significantly over the period Every item that arrives, eventually departs

In most Kanban delivery systems neither of these conditions will apply precisely over typical periods of control (e.g. 1-4 weeks)

Page 7: Exploring flow metrics in kanban systems

Exercise – calculate DR, WiP and TiP from arrival and departure dates Then validate your working with Little’s Law

Av DR – WiP/TiP = 0 And plot Control Chart and

Cumulative Flow Diagram

Page 8: Exploring flow metrics in kanban systems

Little’s Law is a fact rather than an aim…

Variability, batches and iterations are not the enemy Remember “value trumps flow trumps waste” But

Predictability is an aim (helped by smooth flow, limited variability, continuous flow)

Flow Debt is undesirable (delivering more quickly now… at the cost of slower times later)

Indicators: Net Flow (Troy Magennis, focusedobjective.com) Delivery Bias (xprocess.blogspot.com) “TiP Deficit” (Dan Vacanti, Actionable Agile Metrics) Age of WiP Indicator (xprocess.blogspot.com)

Buffer Usage (TOC, Dimiter Bakardzhiev) Net Flow (Troy Magennis, focusedobjective.com)

Page 9: Exploring flow metrics in kanban systems

Flow MetricsThe basics…

Delivery Rate Work in Progress, WiP Time in Process, TiP

(Lead Time if between commitment and delivery)

Other metrics indicating “Flow Debt”…Net FlowDelivery BiasTiP DeficitAge of WiP Indicator

delivering more quickly now… at the cost of slower times later

Page 10: Exploring flow metrics in kanban systems

Net Flow( DR – λ ) / TargetTh

Positive if more deliveries than new items

Negative if more arriving than being delivered

Simple / useful indicator Doesn’t look inside the system so not

a predictor of future TiP

Page 11: Exploring flow metrics in kanban systems

Delivery Bias ( Th – WiP / TiP ) / TargetTh

Will be zero in a system which is “stationary” over the averaging period

Will be positive if Throughput is higher than “balanced” and/or WiP is increasing, and/or TiP is lower than balanced

Page 12: Exploring flow metrics in kanban systems

“TiP Deficit”*( ExpectedTip - TiP ) / TargetTiP

Will be zero in a system which is “stationary” over the averaging period

Will be positive if Older WiP is being delivered ahead of newer WiP Age of WiP reducing

Will be negative if Newer WiP is being delivered ahead of older WiP

(expedite lane) Age of WiP increasing

* Dan Vacanti’s “Flow Debt” defined in Actionable Agile Metrics

Page 13: Exploring flow metrics in kanban systems

Age of WiP Indicator( AgeOfWip – TiP/2 ) / TargetTiP

Possibly best predictor of future TiP increases

Age of WiP in a very regular system will be about half the average TiP

Normalised with “TargetTiP” so parameter can be used to compare different systems

Page 14: Exploring flow metrics in kanban systems

Buffer Management Based on Takt Time

(a measure of Target Throughput) Delivery date includes buffer (time) As buffer is used up intervention

may be needed

Source: Dimitar Bakardzhievdimiterbak.blogspot.com

Steve Tendon and Wolfram Müller’s Tame the Flow

Page 15: Exploring flow metrics in kanban systems

Probabilistic Forecasting

Page 16: Exploring flow metrics in kanban systems

References

Andy [email protected]

www.actionableagile.com

Thank you!

Page 17: Exploring flow metrics in kanban systems

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The worse mistakes are not the result of wrong answers… but wrong questions PETER DRUCKER