Lean kanban university presentatie tri ict Hartman & Stroo

ITIL gives the factory a name

Lean shows the hidden

factory

Ard-Jan Hartman &

Marcel Stroo

Tri ICT, The Netherlands 26-10-2012

IT Operational Excellence

Serving Clients Better

About us

2

Ard-Jan Hartman Marcel Stroo

Intro



Agenda

Introduction: Lean IT in Operations & Support

Case 1 IT service desk at logistics company

Case 2 IT department in high tech company

Conclusions & Q&A

3

Intro



Lean (Six Sigma) in IT operations

Development <-> IT Operations; Agile, Scrum <-> ITIL

It starts with Development, IT operations always the next step

– Development: Waterfall -> Agile/Scrum

– IT Operations: ITIL -> Lean IT operations

4

Intro



ITIL & Lean Six Sigma

ITIL: process blueprint & basic implementation

Lean Six Sigma : improve existing processes

Happy flow versus real life flow

– Lean dives deeper

– Hidden factory

ITIL® v3: Lean Six Sigma elements incorporated

– Value

– End2end IT Service lifecycle

– Continual Service Improvement

5

Intro

No



Opinion Poll 1

Our good improvement ideas end up in the meeting minutes, and stay

there!

– Yes

– No

6

Intro



Case 1: IT servicedesk at a logistical company

Improving incident management & configuration management

– Focus on incident management

Situation

– IT servicedesk at Dutch logistics company

– Two managers Green Belt trained, Lean Six Sigma used in company, but hardly

in IT

– Willingness to change: overall good

• No threats to jobs, Lean is no taboo

Challenge

– Performance below target:

• Customer satisfaction too low

• Resolution time below target:

– Recent increase in external FTE’s had to be reduced with 1 FTE by working

more efficiently

7

Case 1



General approach

Awareness & skills:

– Workshop Lean Six Sigma for key staff (project members)

– Kick off: why are we doing this?

– Brainstorm with team: why could this project fail? How to tackle this?

Communication

– Existing communication channels

Quick wins, weekly

– Spirit of continual improvement

– Day starts & week starts

DMAIC project cycle, several months

– Selection of Lean Six Sigma tools used

– Weekly workshops

8

Case 1



Lean & Six Sigma Tools used

9

Tool Value

Project Charter Keeps you on the main tracks

Basic statistics: mean&median,

standard deviation, distribution,

histogram, control charts, Pareto chart

• Spot special problem causes

• Performance tracking

Value Stream Map • Better understanding between staff

• Pinpointing problems

Brainstorm selection method N/3 Simple way of choosing most

important problems & most valuable

solutions

Belbin team roles Get a good mix of people in your team

and brainstorm sessions

SIPOC Always the basis for setting process

scope

5S Simple to start with, quick results, gets

the spinning wheel of continual

improvement running

Case 1



Pareto customer dissatisfaction

10

Case 1



VSM

Part of the VSM

Problems highlighted using colours

11

Case 1



Some examples of improvements

Part of 3rd line (in shifts) in same room as 1st & 2nd line

Skip slow non-value-add step in registration tool

Central & daily management of 2nd line incident pool

Reducing number of Knowledge Base codes

Stricter quality coaching on ticket registration (never pass a defect)

Short consultation with 2nd line before dispatching incident

Awareness of how your work impacts colleagues and process end result

12

Case 1



Measuring & sustaining results

Measurements in progress

1st results promising

– Customer satisfaction on target

– More incidents within resolution time target

Week & Day starts part of normal work

Working on complex improvements: burning platform needed

13

Case 1



Opinion Poll 2

My IT processes performance are data driven

– >70%

– +/- 50%

– < 30%

14

Poll



Aligned with your customer?

15

Intermezzo

QUALITY

“Let’s work smarter, not harder”

“LEAN is… a mindset, or way of thinking, with a

commitment to achieve a totally waste-free operation

that’s focused on your customer’s success….It is

achieved by simplifying and continuously improving all

processes and relationships in an environment of trust,

respect and full employee involvement….It is about

people, simplicity, flow, visibility, partnerships and true

value as perceived by the customer.”

Case 2



Problem Description:

Processes are incorrectly embedded in the Clients IT organization Low customer and employee satisfactory IT management not in control of the process Cost-to-Serve No improvement culture among IT employees.

Problem Scope:

The incident- and problem management processes within Clients Global IT, including 1st & 2nd (outsourced) and 3rd line support.

Project Goals:

Insight into process performance (KPI’s) and influencing factors Identifying & implementing improvements

17

PROJECT SCOPE & GOALS Case 2


Serving Clients Better OPERATIONAL EXCELLENCE ROADMAP Incident- and problem management

Fact:

Term ‘LEAN’ not used due

to negative associates

with FTE reduction

Case 2



• IT strategy analysis

• Project charter

• Customer Voice Chart

• SIPOC

LEAN tooling Scan step

Workshops

Interviews

Data

analysis

Improvement plan Improvement opportunity's

Critical to Customer analysis

Critical to Quality analysis

Return on Investment analysis

1

2

3

4

Other tooling

Management

intake

• Voice of the Customer / IT

• Critical to Quality

• Critical to Customer

• KANO analysis

Determining

customer needs

• Value Stream Mapping

• Data analysis

• GEMBA walk

• FMEA

Process mapping

• TIM WOODS

• 5S method

• Spaghetti diagram

• Ishikawa diagram

• Poka Yoke

Improvement

analysis

• Employee/ Customer

satisfactory models

OBASHI methodology • Ownership

• Business Layer

• Application Layer

• System Layer

• Hardware Layer

• Infrastructure Layer

• NOREA

• SOX

• SSAE16

OPERATIONAL EXCELLENCE SCAN Quick Scan (pre-DMAIC)

Case 2



“I hear and I forget.

I see and I remember.

I do and I understand."

WORKSHOP APPROACH Do! Do! Do!

Case 2



PEOPLE PROCESS PRODUCT

Low level of IT landscape

knowledge on 1st and 2nd line

support.

Requesting ‘new server’

process takes a long time.

Active Internet Explorer browser

version not up-to-date to

nowadays web standards.

Only the 3rd line engineers

understand my problems.

Releases are always running

out of time due to test defects.

Cannot send emails via Outlook

with > 7 MB attachment.

IT should be more consulting in

latest product releases.

Who do I contact in case of

escalations.

Compatibility with different

Office versions (.doc, .docx)

IT engineers are fire fighters, and

not improvers.

Incidents are hardly resolved

within SLA time.

What products can I get from

IT? Products do not always

match Business processes.

IT engineers are always willing to

help!

There is no pro-active or re-

active problem management,

to prevent.

Where can I find the latest

work instruction, product

plans or other documents?

IT engineers find it hard to translate

IT solutions into ‘Business

language’.

Incidents cannot be resolved at

1st or 2nd line support due to

access rights.

No pro-active monitoring on

Services / network.

Slow IT development causes

delay on Business projects

Slow network connection at

Client office.

Many Access databases build

by Business, no IT support.

VOICE OF THE BUSINESS Example VOB’s that are Critical to Business

Case 2



1. Sorting (Seiri)

2. Straightening or setting in order (Seiton)

3. Sweeping or shining or cleanliness / systematic cleaning (Seiso)

4. Standardizing (Seiketsu)

5. Sustaining the discipline or self-discipline (Shitsuke) In

cid

en

ts

PRODUCT IMPROVEMENT 5 S KAIZEN SESSIONS WITH IT & BUSINESS

BUCA: “Difficult to find the right

documentation on network shares”

Case 2



1. Sorting

2. Straightening

3. Sweeping

4. Standardizing

5. Sustaining

• Complex search structure

• No version management

• Complex and manual user access

management

• Who’s responsible for the

content?

• Search documents by sector

• Only latest version online

• Offline and online documents

• Easy user management

• Document ownership

Old: Network drive mapping

New: SharePoint intranet

Reduction > 35 % of files!

=

Less storage costs & effective search (< 10 sec.)

PRODUCT IMPROVEMENT 5 S KAIZEN SESSIONS WITH IT & BUSINESS

Case 2


Serving Clients Better PRODUCT IMPROVEMENT REDUCING COMPLEX IT ENVIRONMENT

* BUCA: “Too many systems and applications. IT needs to be functionality driven

instead of technology. Standardize the IT environment”

What the customer

wants

What the customer

gets now from IT

What the customer

should get

Solution / Win

“I need this new tool I

found online to

administrate my business

projects”

“Okay, we will install

this as soon as

possible”

“Dear customer, in order to

administrate your business

projects we provide

Microsoft Project as

standard”

The customer can

choose from a

functionality Service

catalogue

“I want to install Firefox on

my desktop, because I

also use this at home”

“Okay, we will install

this as soon as

possible”

(Fingers crossed..)

“Dear customer, we use

internet Explorer 8 as

standard browser. This has

been tested according on

our (security) standards.”

Easier testing

process, rapid

deployments, less

defects.

“I need to have a new

server, next week!”

“Okay (panic), we will

get you one. (again

fingers crossed, Hmm

what are the specs???)

“Dear customer, we can

deliver a new virtual server

within 3 days, if you

delivery the required specs

on time.”

Standard Windows

server environments,

easy to deploy, easy

to maintain.

Case 2



1st line

support

2nd line

support

3rd line

support

Client

Business

39 21 3 34 65 7

Team

Lead

X Incidents

X Problems

X Changes

“Hidden factory” “Hidden factory”

“Hidden factory” “Hidden factory”

PEOPLE/ PROCESS IMPROVEMENT Re-design incident- and problem

management process

Engineers with nr. of tickets

* BUCA: “No proper process coördination within 3rd line

support”

Case 2



Incident Management process Other processes

Team

Lead

Process

Manager

3rd line Support

1st line support

2nd line support

Client

Business

Process

Manager

Service

managers

• First Time Right solution! • One Touch • No Defects! • Faster resolution times • Strong customer focus Flexible

FTE’s


management process

Case 2



Process ‘war rooms’ with combined knowledge from all

3rd line teams to solve incidents, problems and

Changes First Time Right, and in One Touch! But

also to Continuously Improve the process.


management process

Case 2



Determine process Baselines

Set-up simple Process and Team (K)PI’s

Create simple and visual measure methods

MEASURE & CONTROL Case 2



Customer

satisfactory

Cost-to-

Serve

Proces

Quality level

MT

level

Team Level

Customer

satisfactory Proces

Quality Level

Prevent

%

% One

Touch

% First Time

Right

% Online

KPI’s

=

Control &

Pay off

PI’s

=

Control

Cost-to-Serve

% Pro-

active

monitoring

Average

Handeling

Time Employee

Level > Service

level

# Bounced

Defects

Employee

satisfactory

Employee

satisfactory

# Improvements # Customer

complaints

# Bounced

Defects

2012 QUALITY KPI GOALS Incident management

Case 2



KPI Start project Start

QUALITY

Continuous Improvement

Nov. ‘11 Jan. ‘12 May ‘12 Sept. ‘12 Dec. ‘12

Employee satisfactory 5 5,5 6.5 7 7.5

Customer satisfactory 6 - 6 6.5 7 7.5

Cost-to-Serve x - 5% -10% -15% - 20%

Proces Quality level (Max. 400 pnt) x

(120 pnt)

30% (230 pnt)

57% (265 pnt)

66%

(316 pnt)

75% First Time Right x 40 % 70 % 80 % 90 %

Mean Time to Repair x - 10% - 20% - 25% - 30%

(Administrative) Defects x - 10% - 70% - 80% - 90%

Within Service level x 60% 70% 80% 90%

2012 QUALITY KPI GOALS Case 2

100 % score

on all KPI goals! Vision



31

CONTINUOUS IMPROVEMENT

Time

Voice of the

Business

Pain

Pleasure

0

+

++

+++

-

Start QUALITY

program Nov. ‘11

QUALITY program

Feb. ‘12

QUALITY program

Dec. ‘12

Case 2

Making the

waste visual..



QUALITY

“This is only just the beginning…..”

Case 2



Opinion Poll 3

My organisation has a positive attitude to change

– Yes

– No

33

Poll



Lessons learned (1)

Don’t use standard ‘Lean IT’ approach, starting position differs per situation,

even per team

Lean tools & methods well suited for IT Operations

– But think about which to use

Improving with Lean is a next step after improving with ITIL

– ITIL still helpful (necessary) if process standardisation is low

Only use data if available and sufficiently reliable;

– but quite often ‘expert estimates’ are a good basis. A mix of different types of

experts should make the estimation together

34

Conclusion



Lessons learned (2)

Improvement project needs ‘burning platform’ / sense of urgency

Small improvements easier to incorporate in daily work

Project planning: improving takes most time

Two cases, different approaches

– Whatever suits the environment

– Clear customer results

35

Conclusion



Opinion Poll 4

My business & IT processes are adequately aligned

– Yes

– No

36

Poll

Contact Tri ICT:

www.triict.nl

[email protected]

@triict

http://www.triict.nl/

mailto:[email protected]

Documents

Lean kanban university presentatie tri ict Hartman & Stroo