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 [email protected]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. He’s a frequent speaker at IT management events and is a contributing author to multiple ITSM and lean IT books, papers, and official ITIL publications.
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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 [email protected]
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. He’s a frequent speaker at IT management events and is a contributing author to multiple ITSM and lean IT books, papers, and official ITIL publications.
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.
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Lean Is
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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
Increa
sed B
usin
ess Need
Of IT Services
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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
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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
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
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Proactive Problem Solving
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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 Why’s VSM (Current)
VSM (Future)
Pareto
KPIs (Monitor)
KPIs
CTQ KPIs
(Updated)
Problem Solving Methodology
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Preserving Value With The Least Effort
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The 3 M’s Of Waste
• Muda – Unnecessary, Non Value
• Mura – Variation, Variance
• Muri – Over Burdened
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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
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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
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• 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...
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Lean IT Association
What Do I Do Tomorrow?
• Troy’s 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