excerpted from Lean IT: Enabling and Sustaining Your Lean ... · PDF fileCulture ... chapter 5...
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Performance: IT Operational Excellence 4. Lean IT and Business Process Improvement 7. Lean IT Operations: ITIL and Cloud Computing 10. Leading the Lean IT Transformation 3. e Lean IT and Business Partnership ,,, 8. Lean Software Development 9. Applying Lean to Project Management 5. Lean IT Lessons Learned from Lean Manufacturing: Flow and Pull Integration: Aligning Lean IT and the Business ,, 6. Lean Management Systems 2. Foundations of Lean 1. Why Does Lean IT Matter? Introduction Foundation: What Is Lean IT and Why Is It Important? , 11. A Lean IT Roadmap Leadership Roadmap ,9 Barry-Wehmiller, Con-way, Group Health, Ingersoll Rand, Steelcase, Toyota, Virginia Mason Hospital Lean IT Case Studies 9 excerpted from Lean IT: Enabling and Sustaining Your Lean Transformation © Copyright 2011 by Steven C. Bell and Michael A. Orzen A Productivity Press book
Transcript of excerpted from Lean IT: Enabling and Sustaining Your Lean ... · PDF fileCulture ... chapter 5...
Performance: ITOperational Excellence
4. Lean IT and Business Process Improvement
7. Lean IT Operations:ITIL and Cloud Computing
10. Leading the Lean IT Transformation
3. The Lean IT andBusiness Partnership
8. Lean Software Development
9. Applying Lean to Project Management
5. Lean IT Lessons Learned from Lean Manufacturing:
Flow and Pull
Integration: AligningLean IT and the Business
6. Lean Management Systems
2. Foundations of Lean
1. Why Does Lean IT Matter?
Introduction
Foundation:What Is Lean IT and Why Is It Important?
11. A Lean IT Roadmap
Leadership Roadmap
Barry-Wehmiller, Con-way, Group Health,Ingersoll Rand, Steelcase, Toyota, Virginia Mason Hospital
Lean IT Case Studies
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excerpted from Lean IT: Enabling and Sustaining Your Lean Transformation
© Copyright 2011 by Steven C. Bell and Michael A. Orzen A Productivity Press book
ix
Contents
Acknowledgments ..............................................................................xviiIntroduction .........................................................................................xix
ISectIon Foundation
1chapter Why Does Lean IT Matter? ............................................... 3
The Business View .......................................................................3The IT View ..................................................................................5What Causes IT and Business Misalignment? ........................6How Lean IT Encourages Alignment and Creates Value ......8Moving Forward ........................................................................10Endnotes .....................................................................................11
2chapter Foundations of Lean ........................................................ 13
Chapter Objectives ....................................................................13A Brief History of Continuous Improvement .......................13
The Age of Scientific Management: 1890–1940 ................13The Age of Engagement: 1940–1995 ..................................14The Age of Integration: 1996–Present ...............................15
Lean Principles ..........................................................................16Constancy of Purpose ..........................................................17Respect for People .................................................................21Continuous Improvement and the Pursuit of Perfection ...............................................................................22Proactive Behavior ................................................................24Voice of the Customer ..........................................................26Quality at the Source ............................................................27Systems Thinking .................................................................27Flow, Pull, and Just in Time ................................................29Culture .................................................................................. 30
The Central Concepts of Value and Waste ............................33
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excerpted from Lean IT: Enabling and Sustaining Your Lean Transformation
© Copyright 2011 by Steven C. Bell and Michael A. Orzen A Productivity Press book
x • Contents
Value Stream .........................................................................33Value .......................................................................................33
Value-Added Work: VA, NVA, and NNVA ................ 34The Three Ms ........................................................................ 34
Unevenness: Mura .......................................................... 34Overburden: Muri ........................................................... 34Waste: Muda .....................................................................35The Power of the Three Ms .............................................36
Lean Tools Overview ................................................................36A3 Thinking, the Scientific Method, and PDCA .............36Value Stream Mapping ........................................................37Kaizen .................................................................................... 40
System and Process Kaizen ........................................... 40Kaizen Events, Projects and Daily Improvement ........41
Kaikaku ................................................................................. 42Standardized Work .............................................................. 425S and the Visual Workplace ............................................. 43
Let’s Get Started! ...................................................................... 43Endnotes .................................................................................... 44
3chapter The Lean IT and Business Partnership .......................... 45
Chapter Objectives ....................................................................45Why Hasn’t IT Been a Focus of Lean? ................................... 46What Is IT’s Burning Platform for Transformation? .......... 48
Lean versus Traditional IT: A Natural Tension? ..............49Legacy Systems ......................................................................50What about Process Maturity Models? .............................51
What Is Information Waste? ....................................................52Excess Information Inventory Waste .................................53Information Overprocessing Waste .................................. 54Poor Data Quality Waste .....................................................55
Learning to See Information Waste ........................................55Lean and Green IT ....................................................................61The Tools of Lean IT .................................................................63How Do We Do Lean IT? .........................................................65Endnotes .....................................................................................65
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excerpted from Lean IT: Enabling and Sustaining Your Lean Transformation
© Copyright 2011 by Steven C. Bell and Michael A. Orzen A Productivity Press book
Contents • xi
ISectIon I Integration: Aligning Lean It and the Business
4chapter Lean IT and Business Process Improvement.................. 69
Chapter Objectives ....................................................................69The Coordinating Function of Information, IT, and the Lean Office ...........................................................................70The Intangible Nature of Information Value and Waste .....74
IT Brings Systems Perspective to Business Process Improvement .........................................................................75Enterprise Software Applications and the Ghosts of Projects Past...........................................................................77The Efficiency–Flexibility Trade-Off: Agility ...................79Process versus Practice ....................................................... 80
What Processes and Practices Are “Best”? ............................82Benchmarking: No Need to Reinvent the Wheel..................83Using Measurement Effectively ...............................................85
Compliance: A Special Form of Measurement .................87Business Process Management (BPM) .................................. 88Prioritizing Process Improvement with Strategy ................ 90
Supporting Processes .......................................................... 90Innovating Processes ............................................................92
The IT Organization’s Contribution .......................................93Endnotes .....................................................................................95
5chapter Lean IT Lessons Learned from Lean Manufacturing: Flow and Pull ........................................ 97
Chapter Objectives ....................................................................97Push versus Pull: What Went Wrong with MRP? ............. 100Flow, Balance, and Agility ......................................................102Kanban Is an Information System for Pull ...........................104Creating a Level Schedule ......................................................107IT Demand Management: The Foundation for Flow .........109
Only Three Choices When Demand Exceeds Capacity 111The IT Demand Management Cycle ................................112
Demand Planning ..........................................................112
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excerpted from Lean IT: Enabling and Sustaining Your Lean Transformation
© Copyright 2011 by Steven C. Bell and Michael A. Orzen A Productivity Press book
xii • Contents
Flow Simplifies Demand Planning ..............................114Capacity Planning ..........................................................115Balancing.........................................................................116Executive Review ...........................................................117
Lean IT Lessons Learned from the Shop Floor ...................118Endnotes ...................................................................................119
6chapter Lean Management Systems............................................ 121
Chapter Objectives ..................................................................121Communication ...................................................................... 123Knowledge Management and Collaboration ...................... 124
Knowledge Management ...................................................125Collaborative Workspaces .................................................127IT Service Desk (Help Desk) .............................................129Education and Training .....................................................130
Performance Measurement ....................................................131Lean Business Intelligence ................................................133Rapid Acquisition and Integration ...................................135
Strategy Deployment ...............................................................136The Role of Information Systems in Strategy Deployment .........................................................................139
Measuring Value: Lean Accounting .....................................140Focus on Creating Value, Not Cost Reduction ...................143The Importance of the Lean Management System .............144Endnotes ...................................................................................144
IISectIon I Performance: It operational excellence
7chapter Lean IT Operations: ITIL and Cloud Computing ....... 149
Chapter Objectives ..................................................................149Quality Is Free ..........................................................................150Functional Silo or Value-Adding Service Center? ..............152ITIL: A Lean Approach to IT Services Management .........156
ITIL Is a Set of Integrated Processes ................................157
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excerpted from Lean IT: Enabling and Sustaining Your Lean Transformation
© Copyright 2011 by Steven C. Bell and Michael A. Orzen A Productivity Press book
Contents • xiii
How ITIL Supports Lean IT ..............................................160A3 Problem Solving .......................................................160Voice of the Customer ...................................................160Quality at the Source .....................................................162Standard Work ...............................................................162Measurement ..................................................................163
Lean IT in the Cloud ...............................................................164Lean Tips for Successful IT Services Adoption ...................165Endnotes ...................................................................................168
8chapter Lean Software Development .......................................... 169
Chapter Objectives ..................................................................169The Challenges of Traditional Software Development .......171Lean Software Development Basics ......................................174Lean Software Development Life Cycle ................................177
Organization and Approach .............................................177Requirements Definition ...................................................178Demand Management .......................................................181Execution and Test Iterations ...........................................183Customer Service and Support .........................................186Measurements .....................................................................187
Implementation and Integration Lessons Learned.............189Endnotes ...................................................................................191
9chapter Applying Lean to Project Management ........................ 193
Chapter Objectives ..................................................................193The Value of Effective Project Management ........................193
The Project Management Body of Knowledge ...............197Portfolio Management .......................................................197Program Management .......................................................198
The Project Management Office ..................................198Project Management ......................................................... 200Improving Project Management Results with Lean Thinking ............................................................................. 203
Lean Project Management .................................................... 206The Triple Constraints Model .......................................... 206
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excerpted from Lean IT: Enabling and Sustaining Your Lean Transformation
© Copyright 2011 by Steven C. Bell and Michael A. Orzen A Productivity Press book
xiv • Contents
Applying Lean Thinking to Project Management ........ 207A3 Thinking................................................................... 208Value Stream Mapping ..................................................212
Plan-Do-Check-Act, DMAIC, and Project Management ........................................................................213
Initiate .............................................................................213Plan ..................................................................................215Execute ............................................................................219Monitor and Control .................................................... 220Close.................................................................................221
Lean Project Management Enables the Lean Enterprise .. 222Endnotes .................................................................................. 223
ISectIon V Leadership Roadmap
1chapter 0 Leading the Lean IT Transformation ........................... 227
Chapter Objectives ................................................................. 227How to Launch a Lean Enterprise Transformation ........... 227Strategic Intent ........................................................................ 229Leadership Is a State of Mind ................................................232The Importance of Effective Management Systems........... 234
Strategy Deployment ..........................................................235Demand Management ...................................................... 236Business Process Management .........................................237Project, Program, and Portfolio Management .............. 238Governance ......................................................................... 238
The Three Levels of a Lean Management System .............. 240Integrating Lean IT ................................................................ 244Endnotes .................................................................................. 248
1chapter 1 A Lean IT Roadmap ....................................................... 249
People Lead Lean IT Change................................................. 249How to Start the Lean IT Transformation ...........................252Lean IT Transformation Roadmap .......................................253Strategy .................................................................................... 254
Establish Leadership Vision and Consensus ................. 254
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excerpted from Lean IT: Enabling and Sustaining Your Lean Transformation
© Copyright 2011 by Steven C. Bell and Michael A. Orzen A Productivity Press book
Contents • xv
Articulate Strategic Intent and Drivers .......................... 256Planning ................................................................................... 256
Define and Communicate the Transformation Plan .... 256Build a Lean Leadership Team ........................................ 258Create a Basic Toolkit .........................................................259Assess Key Enterprise Value Streams ..............................259
Execution ................................................................................. 260Launch Pilot Kaizen Projects ........................................... 260Invest in Enterprise-Wide Infrastructure ...................... 260Measure Results and Assess Understanding and Buy-In .................................................................................. 260Consolidate Gains and Build Momentum ..................... 262
Setting the Pace for Change ................................................. 264Endnotes .................................................................................. 265
VSectIon Lean It case Studies
Case Studies ........................................................................................ 269Barry-Wehmiller: Lean and ERP Work Together .............. 269Con-way: Document Management Virtual 5S ....................272Con-way: Focused Value Streams .........................................275
Current State .......................................................................275Proposal to IT Management .............................................276
Group Health: Lean Software Development Aligns with the Business Strategy .................................................... 280
The Current State ................................................................281The Future State ................................................................. 282Our Progress So Far .......................................................... 282Going Forward ................................................................... 284
Ingersoll Rand Security Technologies: Lean Six Sigma Improves Order Quality ........................................................ 285
Problem Description ......................................................... 285The DMAIC Approach ..................................................... 286
Define ............................................................................. 287Measure and Analyze ................................................... 287Improve .......................................................................... 287Control ........................................................................... 288
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excerpted from Lean IT: Enabling and Sustaining Your Lean Transformation
© Copyright 2011 by Steven C. Bell and Michael A. Orzen A Productivity Press book
xvi • Contents
Lessons Learned ................................................................. 288Steelcase: Product Data Management Lean Transformation ....................................................................... 289Toyota Australia: How IT Helped Implement Breakthrough Strategy Management .................................. 292
Strategy Management at Toyota Australia ......................293Balanced Scorecard History ..............................................293Evolution of Hoshin Kanri (Breakthrough Strategy Management) ..................................................................... 294Evolution of the IT Solution ..............................................295Strategy Management Processes ..................................... 297IT as a Customer of the Hoshin System ......................... 299Portfolio Management and Project Prioritization ........ 299It’s Not All about IT............................................................301
Virginia Mason Medical Center: Laboratory Order Process and System Improvement ....................................... 302
Background ........................................................................ 302Improving the Laboratory Order Process ...................... 302Solution Called for Collaboration ................................... 304
Appendix A: A Brief History of Continuous Improvement ............ 307Endnotes ...................................................................................312
Appendix B: How Lean and Six Sigma Work Together ................... 313Focus .........................................................................................315Roles ..........................................................................................315Project Size and Duration ......................................................316Project Selection ......................................................................316Complementary Coexistence .................................................317
Appendix C: Information Wastes ...................................................... 319
Appendix D: IT Service Desk A3 Example ....................................... 329
About the Authors .............................................................................. 333
Index .................................................................................................... 335
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excerpted from Lean IT: Enabling and Sustaining Your Lean Transformation
© Copyright 2011 by Steven C. Bell and Michael A. Orzen A Productivity Press book
