Agile Operations Fundamentals

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Agile Operations Fundamentals by Mind Map: Agile Operations Fundamentals

1. Operation Execution Pattern

1.1. Mobilize

1.1.1. Decide on target process and scope

1.1.2. Stakeholder mapping

1.1.2.1. Improvement Champion

1.1.3. Setup value stream mapping (VSM) workshop

1.1.3.1. Invite the right stakeholders

1.2. Understand

1.2.1. Know your numbers - Metrics

1.2.1.1. Unit cost per transaction

1.2.1.2. Cycle time

1.2.1.3. Throughput

1.2.1.4. Defect rate

1.2.1.5. Staff morale

1.2.1.6. Attrition rate

1.2.1.7. Customer satisfaction

1.2.1.7.1. Know the trend for the last 6 months at least!

1.2.2. Retrospective, 5 why's, root cause analysis

1.2.2.1. Challenge & Blockers

1.2.3. Outcome and Value clarity

1.2.4. Current objectives, goals and strategy

1.2.5. Understand your value drivers

1.2.5.1. Reduce unit cost

1.2.5.2. Improve cycle time

1.2.5.3. Increase throughput

1.2.5.4. Improve customer satisfaction

1.2.5.5. Improve quality

1.2.6. Value Stream Mapping (as-is)

1.3. Explore / Strategize

1.3.1. Set a BHAG

1.3.1.1. Quality

1.3.1.2. Team satisfaction

1.3.1.3. Customer satisfaction

1.3.1.4. Throughput

1.3.1.5. Unit cost

1.3.1.6. Cycle time

1.3.1.7. It’s amazing how it can transform teams and drive them to innovate!

1.3.2. Review retrospective and RCA

1.3.2.1. Retrospective

1.3.2.1.1. Insights

1.3.2.1.2. Sailboat retrospective

1.3.2.1.3. Doing things

1.3.2.2. Root cause

1.3.2.2.1. 5 why's

1.3.2.2.2. Fish bone technique

1.3.3. VSM (to be)

1.3.3.1. Muda (Waste)

1.3.3.1.1. Anything customer would NOT want to pay for

1.3.3.1.2. Inventory - Excess products and materials not being processed

1.3.3.1.3. Talent - Underutilizing people’s talents, skills & knowledge

1.3.3.1.4. Waiting - Wasted time waiting for the next step in a process

1.3.3.1.5. Motion - Unnecessary movements by people (e.g., walking)

1.3.3.1.6. Defects - Efforts caused by rework, scrap, & incorrect information

1.3.3.1.7. Transportation - Unnecessary movements of products & materials

1.3.3.1.8. Overprocessing - More work or higher quality than is required by the customer

1.3.3.1.9. Production - Production that is more than needed or before it is needed

1.3.3.2. Mura (unevenness)

1.3.3.3. Muri (overburdening)

1.3.3.4. Bottlenecks

1.3.3.4.1. You only deliver as fast as your bottleneck

1.3.3.4.2. Complexity of work

1.3.3.4.3. People

1.3.3.4.4. Resources

1.3.4. Decide on work to be done to improve

1.3.4.1. Increase efficiency of bottleneck

1.3.4.1.1. Make sure its free of defect input

1.3.4.1.2. Improve the process (reduce wasteful steps)

1.3.4.1.3. Automate

1.3.4.1.4. Up-skill and train

1.3.4.1.5. Reschedule work

1.3.4.1.6. Increase work time

1.3.4.1.7. Minimize down time

1.3.4.1.8. Add more resources (last option)

1.3.4.2. Decrease input to bottleneck

1.3.4.2.1. Manage the onramp

1.3.4.3. Kaizen

1.3.4.3.1. 5s

1.4. Build / Test / Implement

1.4.1. Test you solution hypothesis in an Agile way

1.4.1.1. Keep the test low tech – low fidelity - simple

1.4.1.2. Define solution and set your desired goal

1.4.1.3. Write acceptance criteria and measures of success

1.4.1.4. Write test cases

1.4.1.5. Simulate the solution

1.4.1.6. Measure the outcome and test against test cases

1.4.1.7. Validate success

1.4.2. Validate the outcomes

1.4.3. If successful… implement changes using the Agile Program Pattern

1.4.4. Showcase

1.5. Manage / Evolve

2. Agile Value Stream Mapping

2.1. Rules

2.1.1. Get the key stakeholders together

2.1.1.1. Based on process scope you choose to map

2.1.2. Have people who actually do the work present

2.1.2.1. Who know the current process

2.1.3. Run a facilitated workshop

2.1.3.1. Make sure there is sufficient wall space

2.1.3.2. Workshop duration maximum of 1 day

2.1.4. Keep it simple and low fidelity

2.1.4.1. Do NOT use a business process mapping tool - just sticky notes and strings

2.1.4.2. The focus is conversation and shared understanding

2.1.4.3. Do not try to map exception - focus on 80%

2.1.5. The focus is improvement and not blame

2.2. How to do VSM

2.2.1. Level 1

2.2.1.1. Identify the high level process

2.2.1.2. Identify the stakeholders involved

2.2.1.3. Represent the involved stakeholders as swim lanes

2.2.2. Level 2

2.2.2.1. Map the as-is process at Level 2 within the swim lanes using sticky notes (connect with string if needed)

2.2.2.2. Estimate average Activity Time per step (AT) and Wait Time (WT) in between steps in min

2.2.2.3. Calculate Process Efficiency percent Total Cycle Time (TCT) = AT+WT PE% = (AT/TCT) x100

2.3. Tip and pitfalls

2.3.1. Don’t go down to task level! - stay at level 2 or 3

2.3.2. Don’t map exceptions! – Map the 80% flows

2.3.3. Make intelligent guesses on the Activity Time and Wait Time Don’t split hair here!

2.3.4. Map reality – not what it should be or what the process document says it should be

2.3.5. Don’t be surprised how low your initial PE% is Single digit numbers are common. See it as a great chance to improve

2.3.6. Focus on reducing Wait Times first…then optimize Activity Time

2.3.7. Keep it simple… don’t bother LEAN icons and rules for now

2.3.8. Be honest about why some things take so long!

3. You can only deliver as fast as the slowest part of your process

4. Practices

4.1. Social practices

4.1.1. Social contract

4.1.1.1. Keep it simple

4.1.1.2. Keep it low tech

4.1.1.3. Keep it visible

4.1.2. Mood marbles

4.1.2.1. feeling optimistic

4.1.2.2. feeling tired

4.1.2.3. feeling under the weather

4.1.2.4. feeling anxious

4.2. Process practices

4.2.1. Visualize work (Kanban boards + VSM + BVC)

4.2.2. Pull and do the work

4.3. Improvement practices

4.3.1. Metrics and measure

4.3.1.1. Cycle time

4.3.1.2. Throughput

4.3.1.3. Unit cost

4.3.1.4. Customer satisfaction

4.3.1.5. Team satisfaction

4.3.2. Point Kaizen

4.3.2.1. Each individual doing small things to reduce waste and remove bottlenecks.

4.3.2.2. Observe with a view to change. Just make the change

4.3.3. Showcase \ Retro \ Celebrate

4.3.3.1. what worked fine

4.3.3.2. didn't work

4.3.3.3. what puzzles me

4.3.3.4. improvement actions

5. Metrics and measures

5.1. Unit cost per transaction

5.2. Total cost

5.3. Team satisfaction

5.4. Attrition rate

5.5. Skill gape

5.6. Throughput

5.7. Cycle time

5.8. Customer satisfaction

5.9. SLA

5.10. # of defects

5.11. Lead time to start

5.12. Backlog

6. Tips, pitfalls and tricks

6.1. Pitfalls

6.1.1. Lack of measurement discipline

6.1.2. No proper testing of the proposed solution

6.1.3. Too many initiatives at the same time

6.1.4. Doing it to the team

6.1.4.1. Rather than having them own the change and be involved

6.1.5. Negative ripple effect

6.1.5.1. Improvements in one area can cause signicant loss in another

6.1.6. Endlessly long Value Stream Mapping

6.1.7. Paralysis by analysis

6.1.8. Not implementing properly

6.2. Tips and tricks

6.2.1. Tackle an end-to-end process that adds real customer value

6.2.2. Make sure the leaders champion this as well

6.2.3. Be honest with the current state of crap!

6.2.4. Keep the process improvement loops small and regular

6.2.5. Have fun

6.2.6. Share the learning and the success stories

6.2.7. Don’t stop after the rest round of success!