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Lean IT Lean IT • Lean IT http www Powered By Docstoc
					                                                      Lean IT
•   Lean IT(http://www.datadialogs.com/lean_it.html)
     –   The beginning
     –   The problem with IT
     –   The Breakthrough
•   Lean Manufacturing Principles & Benefits
     –   Reduce 7 waste
     –   Improve quality and fewer defects
     –   Reduced inventory
     –   Requires less space
     –   Enhances overall manufacturing flexibility
     –   Make identifying future Kaizens simpler
     –   Ensures a safer work environment
     –   Improves employee morale
•   How to implement Lean in the Lab (www.smartConsultingGroup.com)
     –   Improving measurable performance
     –   Measuring cost
     –   Specify value
           •   Value add
           •   Non-value add
           •   incidental
     –   Identify value stream
     –   Make value flow and create ―pull‖
     –   Level the load and the Mix
     –   Eliminate waste
     –   Manage performance
     –   Improve efficiency
     –   Reduces cost
     –   Improve performance
     –   Increase quality
•   Lean IT(http://www.datadialogs.com/lean_it.html)
                               Lean IT
• Lean IT is the extension of lean principles to the development and
  management of information technology (IT) products and services. Its
  central concern, applied in the context of IT, is the elimination of waste,
  where waste is work that adds no value to a product or service.
• Although lean principles are generally well established and have broad
  applicability, their extension from manufacturing (where such principles were
  first systematically implemented) to IT is only just emerging. Indeed, Lean IT
  poses significant challenges for practitioners while raising the promise of no
  less significant benefits. And whereas Lean IT initiatives can be limited in
  scope and deliver results quickly, implementing Lean IT is a continuing and
  long-term process that may take years before lean principles become
  intrinsic to an organization‘s culture.[2]
• Origin of the Lean Concept
• Extension of Lean to IT
• Types of Waste in Lean IT
• Lean IT Principles
• Implemtation of Lean IT
• Trends toward Lean IT
• Challenges for Lean IT
• Deployment and Commercial Support
• Complementary Methodologies
  Lean IT: Origin of the Lean Concept (1/2)
• Lean in reference to the optimal use of labor, materials, and other resources
  for the production and consumption of goods and services is a primitive
  concept. Associated with the very survival of our species as in ―survival of
  the fittest‖, leanness, parsimony, thrift, and efficiency have also been long
  celebrated as moral virtues. For example, among extended works on the
  subject is Thrift[3] by Scottish author and reformer Samuel Smiles, first
  published in 1892. Even earlier, the yearly pamphlet Poor Richard's
  Almanack, published by American inventor and statesman Benjamin
  Franklin between 1732 and 1758, counseled readers ―He that idly loses 5 s.
  worth of time, loses 5 s. & might as prudently throw 5 s. in the River.‖[4] And
  in the same vein, ―A Penny sav‗d is Twopence clear, A Pin a day is a Groat
  a Year. Save & have. Every little makes a mickle.‖[4]
• One of the pioneers in the application of lean principles to manufacturing is
  American inventor and industrialist Eli Whitney whose combined use of
  power machinery, interchangeable parts,[5] and division of labor would
  underlie America‘s subsequent industrial revolution. A century or so later,
  Henry Ford, founder of the Ford Motor Company, applied other lean
  principles in the development of the assembly line. Prior to Ford‘s innovation,
  an automobile‘s components had to be fitted by a skilled engineer at the
  point of use so they would connect properly. By enforcing very strict
  specifications on component manufacture, Ford eliminated this work almost
  entirely, reducing manufacturing effort by between 60-90%.
  Lean IT: Origin of the Lean Concept (2/2)
• A more scientific and systematic approach to lean began to emerge in the
  early twentieth century through the work of Frederick Winslow Taylor, an
  American mechanical engineer and now regarded as the father of scientific
  management. Taylor‘s work notably featured time-and-motion studies — a
  business efficiency technique combining his own time study work with the
  motion study work of Frank and Lillian Gilbreth. But perhaps the single
  greatest contribution to the advancement of lean principles, at least during
  the twentieth century, was the development and application of the Toyota
  Production System (TPS) between 1948 and 1975. (The term lean was not
  used until 1988.[7]) An integrated system that comprises both management
  philosophy and practices,[8] the TPS organized the manufacturing and
  logistics for the automobile production, including interaction with suppliers
  and customers. A key distinction from Ford‘s conception of workers as mere
  muscle, the TPS encourages workers to contribute ideas that reduce waste
  or otherwise add value.[9][10] Lean initiatves are much more democratic and
  much less hierarchical.[11] In a further and more recent development of lean
  manufacturing, computer company Dell pioneered the ―build-to-order‖
  approach in the 1980s, delivering individual PCs configured to customer
  specifications. By contrast, most PC manufacturers at that time were
  delivering large orders of preconfigured machines to intermediaries on a
  quarterly basis.
    Lean IT: Extension of Lean to IT
•   As lean manufacturing has become more widely implemented, the extension of lean
    principles is beginning to spread to IT (and other service industries).[11] Industry
    analysts have identified many similarities or analogues between IT and
    manufacturing. For example, whereas the manufacturing function manufactures
    goods of value to customers, the IT function ―manufactures‖ business services of
    value to the parent organization and its customers. Similar to manufacturing, the
    development of business services entails resource management, demand
    management, quality control, security issues, and so on.[13]
•   Moreover, the migration by businesses across virtually every industry sector towards
    greater use of online or e-business services suggests a likely intensified interest in
    Lean IT as the IT function becomes intrinsic to businesses‘ primary activities of
    delivering value to their customers. Already, even today, IT‘s role in business is
    substantial, often providing services that enable customers to discover, order, pay,
    and receive support. IT also provides enhanced employee productivity through
    software and communications technologies and allows suppliers to collaborate,
    deliver, and receive payment.
•   Consultants and evangelists for Lean IT identify an abundance of waste across the
    business service ―production line‖, including legacy infrastructure and fractured
    processes.[13] By reducing waste through application of lean Enterprise IT
    Management (EITM) strategies, CIOs and CTOs in companies such as Tesco,
    Fujitsu Services, and TransUnion are driving IT from the confines of a back-office
    support function to a central role in delivering customer value.[
        Lean IT: Types of Waste in Lean IT
• Lean IT promises to identify and eradicate waste that otherwise contributes
  to poor customer service, lost business, higher than necessary business
  costs, and lost employee productivity. To these ends, Lean IT targets eight
  elements within IT operations that add no value to the finished product or
  service or to the parent organization (see Table 1).
• Table 1 – Targets of Waste in Lean IT
• Whereas each element in the table can be a significant source of waste in
  itself, linkages between elements sometimes create a cascade of waste (the
  so-called domino effect). For example, a faulty load balancer (waste element:
  Defects) that increases web server response time may cause a lengthy wait
  for users of a web application (waste element: Waiting), resulting in
  excessive demand on the customer support call center (waste element:
  Excess Motion) and, potentially, subsequent visits by account
  representatives to key customers‘ sites to quell concerns about the service
  availability (waste element: Transportation). In the meantime, the company‘s
  most likely responses to this problem — for example, introducing additional
  server capacity and/or redundant load balancing software), and hiring extra
  customer support agents — may contribute yet more waste elements
  (Overprovisioning and Excess Inventory).
Table 1 – Targets of Waste in Lean IT
Waste Element        Examples                                                      Business Outcome
Defects              •   Unauthorized system and application changes.              Poor customer service,
                     •   Substandard project execution.                            increased costs.

Overproduction       •   Unnecessary delivery of low-value                         Business and IT misalignment,
                                                                                   Increased costs and overheads: energy,
(Overprovisioning)       applications and services.                                data center space, maintenance.

Waiting              •   Slow application response times.                          Lost revenue, poor customer
                     •   Manual service escalation procedures.                     service, reduced productivity.

Non-Value Added      •   Reporting technology metrics to business                  Miscommunication.
Processing               managers..

Transportation       •   On-site visits to resolve hardware and software issues.   Higher capital and
                     •   Physical software, security and compliance audits.        operational expenses.

Inventory (Excess)   •   Server sprawl, underutilized hardware.                    Increased costs: data center,
                     •   Multiple repositories to handle risks and control.        energy; lost productivity.
                     •   Benched application development teams.

Motion (Excess)      •   Fire-fighting repeat problems within the                  Lost productivity.
                         IT infrastructure.

Employee             •   Failing to capture ideas/innovation.                      Talent leakage, low job
Knowledge            •   Knowledge and experience retention                        satisfaction, increased
(Unused)                 issues.                                                   support and
                     •   Employees spend time on repetitive or                     maintenance costs.
         Lean IT: Lean IT Principles
•   Value Streams
•   Value-Stream Mapping
•   Flow
•   Pull/Demand System
   Lean IT: Lean IT Principles  Value
                           Streams
• In IT, value streams are the services provided by the IT function
  to the parent organization for use by customers, suppliers,
  employees, investors, regulators, the media, and any other
  stakeholders. These services may be further differentiated into:
• Business services (primary value streams)--> Examples: point-
  of-sale transaction processing, ecommerce, and supply chain
  optimization
• IT services (secondary value streams): Examples: application
  performance management, data backup, and service catalog
• The distinction between primary and secondary value streams
  is meaningful. Given Lean IT‘s objective of reducing waste,
  where waste is work that adds no value to a product or service,
  IT services are secondary (i.e. subordinate or supportive) to
  business services. In this way, IT services are tributaries that
  feed and nourish the primary business service value streams. If
  an IT service is not contributing value to a business service, it is
  a source of waste. Such waste is typically exposed by value-
  stream mapping.
  Lean IT: Lean IT Principles  Value-
              Stream Mapping
Lean IT, like its lean manufacturing counterpart,
  involves a methodology of value-stream
  mapping[15] — diagramming and analyzing
  services (value streams) into their component
  process steps and eliminating any steps (or
  even entire value streams) that don‘t deliver
  value.
     Lean IT: Lean IT Principles  Flow

• Flow relates to one of the fundamental concepts of Lean as formulated
  within the Toyota Production System — namely, mura. A Japanese word
  that translates as ―unevenness,‖ mura is eliminated through just-in-time
  systems that are tightly integrated. For example, a server provisioning
  process may carry little or no inventory (a waste element in Table 1 above)
  with labor and materials flowing smoothly into and through the value stream.
• A focus on mura reduction and flow may bring benefits that would be
  otherwise missed by focus on muda (the Japanese word for waste) alone.
  The former necessitates a system-wide approach whereas the latter may
  produce suboptimal results and unintended consequences. For example, a
  software development team may produce code in a language familiar to its
  members and which is optimal for the team (zero muda). But if that language
  lacks an API standard by which business partners may access the code, a
  focus on mura will expose this otherwise hidden source of waste.
           Lean IT: Lean IT Principles 
                   Pull/Demand System
• Pull (also known as demand) systems are themselves closely related to the
  aforementioned flow concept. They contrast with push or supply systems. In
  a pull system, a pull is a service request. The initial request is from the
  customer or consumer of the product or service. For example, a customer
  initiates an online purchase. That initial request in turn triggers a subsequent
  request (for example, a query to a database to confirm product availability),
  which in turn triggers additional requests (input of the customer‘s credit card
  information, credit verification, processing of the order by the accounts
  department, issuance of a shipping request, replenishment through the
  supply-chain management system, and so on).
• Push systems differ markedly. Unlike the ―bottom-up,‖ demand-driven, pull
  systems, they are ―top-down,‖ supply-driven systems whereby the supplier
  plans or estimates demand. Push systems typically accumulate large
  inventory stockpiles in anticipation of customer need. In IT, push systems
  often introduce waste through an over-abundance of ―just-in-case‖ inventory,
  incorrect product or service configuration, version control problems, and
  incipient quality issues.[13]
Lean IT: Implementation of Lean IT(1/3)
• Implementation begins with identification and
  description of one or more IT value streams.[16]
  For example, aided by use of interviews and
  questionnaires, the value stream for a primary
  value stream such as a point-of-sale business
  service may be described as shown in Table 2.
• Table 2 – Example: Description of a Point-of-
  Sale Value Stream
    Table 2 – Example: Description of
      a Point-of-Sale Value Stream
                        Value Metrics      Demand Pulls        SLAs
―Owner‖    EVP of       •    CAPEX         •    Budget         •      Transaction
of         Store        •    OPEX               reviews               speed
Business   Operations   •    Labor         •    Strategic      •      Service
Result                       efficiency         reviews               continuity
                        •    Ease of use   •    Store          •      Implementat
                        •    Check-out          redesign              ion speed
                             speed         •    Store
                                                openings
End      Cashiers       •    Check-out     •    Transactions   •      Transaction
Customer                     speed         •    Log ons               speed
                        •    Ease of use                       •      Service
                                                                      continuity
End      Shoppers       •    Payment       •   Transactions    •      Transaction
Customer                     types                                    speed
                        •    Check-out                         •      Service
                             speed                                    continuity
Lean IT: Implementation of Lean IT(2/3)
• Table 2 suggests that the Executive Vice President (EVP) of Store
  Operations is ultimately responsible for the point-of-sale business service,
  and he/she assesses the value of this service using metrics such as CAPEX,
  OPEX, and check-out speed. The demand pulls or purposes for which the
  EVP may seek these metrics might be to conduct a budget review or
  undertake a store redesign. Formal service-level agreements (SLAs) for
  provision of the business service may monitor transaction speed, service
  continuity, and implementation speed. The table further illustrates how other
  users of the point-of-sale service — notably, cashiers and shoppers — may
  be concerned with other value metrics, demand pulls, and SLAs.
• Having identified and described a value stream, implementation usually
  proceeds with construction of a value stream map — a pictorial
  representation of the flow of information, beginning with an initial demand
  request or pull and progressing up the value stream. Although value streams
  are not as readily visualizable as their counterparts in lean manufacturing,
  where the flow of materials is more tangible, systems engineers and IT
  consultants are practiced in the construction of schematics to represent
  information flow through an IT service.[13] To this end, they may use
  productivity software such as Microsoft Visio and computer-aided design
  (CAD) tools. However, alternatives to these off-the-shelf applications may be
  more efficient (and less wasteful) in the mapping process.
Lean IT: Implementation of Lean IT(3/3)
• One alternative is use of a configuration management database (CMDB),[21]
  which describes the authorized configuration of the significant components
  of an IT environment. Workload automation software, which helps IT
  organizations optimize real-time performance of complex business
  workloads across diverse IT infrastructures, and other application
  dependency mapping tools can be an additional help in value stream
  mapping.[22]
• After mapping one or more value streams, engineers and consultants
  analyze the stream(s) for sources of waste. The analysis may adapt and
  apply traditional efficiency techniques such as time-and-motion studies as
  well as more recent lean techniques developed for the Toyota Production
  System and its derivatives. Among likely outcomes are methods such as
  process redesign, the establishment of ―load-balanced‖ workgroups (for
  example, cross-training of software developers to work on diverse projects
  according to changing business needs), and the development of
  performance management ―dashboards‖ to track project and business
  performance and highlight trouble spots.[2]
  Lean IT: Trends towards Lean IT (1/3)
1. Recessionary Pressure to Reduce Costs
   – The onset of economic recession in December 2007[23] was marked by
     a decrease in individuals‘ willingness to pay for goods and
     services[24] — especially in face of uncertainty about their own
     economic futures. Meanwhile, tighter business and consumer credit,[25]
     a steep decline in the housing market,[26] higher taxes,[27] massive lay-
     offs,[28] and diminished returns in the money and bond markets[29] have
     further limited demand for goods and services.
   – When an economy is strong, most business leaders focus on revenue
     growth. During periods of weakness, when demand for good and
     services is curbed, the focus shifts to cost-cutting.[14] In-keeping with
     this tendency, recessions initially provoke aggressive (and somes panic-
     ridden) actions such as deep discounting, fire sales of excess inventory,
     wage freezes, short-time working, and abandonment of former supplier
     relationships in favor of less costly supplies. Although such actions may
     be necessary and prudent, their impact may be short-lived.[24] Lean IT
     can expect to garner support during economic downturns as business
     leaders seek initiatives that deliver more enduring value than is
     achievable through reactive and generalized cost-cutting.[30]
2. Proliferation of Online Transactions
3. Green IT
 Lean IT: Trends towards Lean IT (2/3)
1. Recessionary Pressure to Reduce Costs
2. Proliferation of Online Transactions
  – IT has traditionally been a mere support function of business,
    in common with other support functions such as shipping
    and accounting. More recently, however, companies have
    moved many mission-critical business functions to the
    Web.[31] This migration is likely to accelerate still further as
    companies seek to leverage investments in service-oriented
    architectures, decrease costs, improve efficiency, and
    increase access to customers, partners, and employees.[32]
  – The prevalence of web-based transactions is driving a
    convergence of IT and business.[33] In other words, IT
    services are increasingly central to the mission of providing
    value to customers. Lean IT initiatives are accordingly
    becoming less of a peripheral interest and more of an
    interest that is intrinsic to the core business.
3. Green IT
  Lean IT: Trends towards Lean IT (3/3)
1. Recessionary Pressure to Reduce Costs
2. Proliferation of Online Transactions
3. Green IT
   – Though not born of the same motivations, Lean IT initiatives are
     congruent with a broad movement towards conservation and waste
     reduction, often characterized as green policies and practices. Green IT
     is one part of this broad movement.[34]
   – Waste reduction directly correlates with reduced energy consumption
     and carbon generation. Indeed, IBM asserts that IT and energy costs can
     account for up to 60% of an organization's capital expenditures and 75%
     of operational expenditures.[35] In this way, identification and
     streamlining of IT value streams supports the measurement and
     improvement of carbon footprints and other green metrics.[36] For
     instance, implementation of Lean IT initiatives is likely to save energy
     through adoption of virtualization technology and data center
     consolidation.[37][38]
     Lean IT: Challenges for Lean IT (1/5)
1. Value-Stream Visualization
     – Unlike lean manufacturing, from which the principles and
       methods of Lean IT derive, Lean IT depends upon value
       streams that are digital and intangible rather than physical
       and tangible. This renders difficult the visualization of IT
       value streams and hence the application of Lean IT.
     – Whereas practitioners of lean manufacturing can apply
       visual management systems such as the kanban cards
       used in the Toyota Production System, practitioners of Lean
       IT must use Enterprise IT Management tools to help
       visualize and analyze the more abstract context of IT value
       streams.[39]
2.   Reference Implementations
3.   Resistance to Change
4.   Fragmented IT Departments
5.   Integration of Lean Production and Lean
     Consumption
  Lean IT: Challenges for Lean IT (2/5)
1. Value-Stream Visualization
2. Reference Implementations
   – As an emerging area in IT management (see Deployment and
     Commercial Support), Lean IT has relatively few reference
     implementations. Moreover, whereas much of the supporting theory and
     methodology is grounded in the more established field of lean
     manufacturing, adaptation of such theory and methodology to the digital
     service-oriented process of IT is likewise only just beginning. This lack
     makes implementation challenging, as evidenced by the problems
     experienced with the March 2008 opening of London Heathrow Airport‘s
     Terminal 5. British airports authority BAA and airline British Airways
     (BA), which has exclusive use of the new terminal, used process
     methodologies adapted from the motor industry to speed development
     and achieve cost savings in developing and integrating systems at the
     new terminal.[40] However, the opening was marred by baggage
     handling backlogs, staff parking problems, and cancelled flights.[41]
3. Resistance to Change
4. Fragmented IT Departments
5. Integration of Lean Production and Lean Consumption
  Lean IT: Challenges for Lean IT (3/5)
1. Value-Stream Visualization
2. Reference Implementations
3. Resistance to Change
   – The conclusions or recommendations of Lean IT initiatives are likely to
     demand organizational, operational, and/or behavioral changes that
     may meet with resistance from workers, managers, and even senior
     executives. Whether driven by a fear of job losses, a belief that existing
     work practices are superior, or some other concern, such changes may
     encounter resistance. For example, a Lean IT recommendation to
     introduce flexible staffing whereby application development and
     maintenance managers share personnel is often met with resistance by
     individual managers who may have relied on certain people for many
     years. Also, existing incentives and metrics may not align with the
     proposed staff sharing.[2][42]
4. Fragmented IT Departments
5. Integration of Lean Production and Lean Consumption
     Lean IT: Challenges for Lean IT (4/5)
1.   Value-Stream Visualization
2.   Reference Implementations
3.   Resistance to Change
4.   Fragmented IT Departments
     – Even though business services and the ensuing flow of
       information may span multiple departments, IT
       organizations are commonly structured in a series of
       operational or technology-centric silos, each with its own
       management tools and methods to address perhaps just
       one particular aspect of waste. Unfortunately, fragmented
       efforts at Lean IT contribute little benefit because they lack
       the integration necessary to manage cumulative waste
       across the value chain.[13]
5. Integration of Lean Production and Lean
   Consumption
     Lean IT: Challenges for Lean IT (5/5)
1.   Value-Stream Visualization
2.   Reference Implementations
3.   Resistance to Change
4.   Fragmented IT Departments
5.   Integration of Lean Production and Lean
     Consumption
     – Related to the aforementioned issue of fragmented IT
       departments is the lack of integration across the entire
       supply chain, including not only all business partners but
       also consumers. To this end, Lean IT consultants have
       recently proposed so-called lean consumption of products
       and services as a complement to lean production.[43] In this
       regard, the processes of provision and consumption are
       tightly integrated and streamlined to minimize total cost and
       waste and to create new sources of value.
    Lean IT: Deployment and Commercial
•
                                            Support
    Deployment of Lean IT has been predominantly limited to application development and maintenance (ADM).
    This focus reflects the cost of ADM.[13] Despite a trend towards increased ADM outsourcing to lower-wage
    economies,[44] the cost of developing and maintaining applications can still consume more than half of the
    total IT budget.[2] In this light, the potential of Lean IT to increase productivity by as much as 40% while
    improving the quality and speed of execution[2] makes ADM a primary target (the ―low-hanging fruit,‖ so to
    speak) within the IT department.
•   Opportunity to apply Lean IT exists in multiple other areas of IT besides ADM. For example, service catalog
    management is a Lean IT approach to provisioning IT services. When, say, a new employee joins a
    company, the employee‘s manager can log into a web-based catalog and select the services needed. This
    particular employee may need a CAD workstation as well as standard office productivity software and
    limited access to the company‘s extranet. On submitting this request, provisioning of all hardware and
    software requirements would then be automatic through a lean value stream. In another example, a Lean IT
    approach to application performance monitoring would automatically detect performance issues at the
    customer experience level as well as triage, notify support personnel, and collect data to assist in root-cause
    analysis.[13] Research suggests that IT departments may achieve sizable returns from investing in these
    and other areas of the IT function.[45]
•   Among notable corporate examples of Lean IT adopters is UK-based grocer Tesco,[46] which has entered
    into strategic partnerships with many of its suppliers, including Procter & Gamble, Unilever, and Coca-Cola,
    eventually succeeding in replacing weekly shipments with continuous deliveries throughout the day. By
    moving to eliminate stock from either the back of the store or in high-bay storage, Tesco has gotten
    markedly closer to a just-in-time pull system (see Pull/Demand System).[47][48][14] Lean IT is also
    attracting public-sector interest, in-keeping with the waste-reduction aims of the Lean Government
    movement. One example is the City of Cape Coral, Florida, where several departments have deployed Lean
    IT.[49] The city‘s police records department, for instance, reviewed its processing of some 20,000 traffic
    tickets written by police officers each year, halving the time for an officer to write a ticket and saving $2
    million. Comparable benefits have been achieved in other departments such as public works, finance, fire,
    and parks and recreation.[50][51]
    Lean IT: Complementary Methodologies(1/4)
Although Lean IT typically entails particular principles and methods such as
    value streams and value-stream mapping, Lean IT is, on a higher level, a
    philosophy rather than a prescribed metric or process methodology. In this
    way, Lean IT is pragmatic and agnostic. It seeks incremental waste
    reduction and value enhancement, but it does not require a grand overhaul
    of an existing process, and is complementary rather than alternative to
    other methodologies.
1. Six Sigma
    –   Whereas Lean IT focuses on customer satisfaction and reducing waste, Six
        Sigma focuses on removing the causes of defects (errors) and the variation
        (inconsistency) in manufacturing and business processes using quality
        management and, especially, statistical methods.[52] Six Sigma also differs
        from Lean methods by introducing a special infrastructure of personnel (e.g. so-
        called ―Green Belts‖ and ― Black Belts‖) in the organization. Six Sigma is more
        oriented around two particular methods (see DMAIC and DMADV), whereas
        Lean IT employs a portfolio of tools and methods. These differences
        notwithstanding, Lean IT may be readily combined with Six Sigma such that the
        latter brings statistical rigor to measurement of the former’s outcomes.[53]
2. Capability Maturity Model Integration (CMMI)
3. Information Technology Infrastructure Library (ITIL)
4. COBIT
    Lean IT: Complementary Methodologies(2/4)
Although Lean IT typically entails particular principles and methods such as
    value streams and value-stream mapping, Lean IT is, on a higher level, a
    philosophy rather than a prescribed metric or process methodology. In this
    way, Lean IT is pragmatic and agnostic. It seeks incremental waste
    reduction and value enhancement, but it does not require a grand overhaul
    of an existing process, and is complementary rather than alternative to
    other methodologies.
1. Six Sigma
2. Capability Maturity Model Integration (CMMI)
    –   The Capability Maturity Model Integration (CMMI) from the Software
        Engineering Institute of Carnegie Mellon University (Pittsburgh, Pennsylvania) is
        a process improvement approach applicable to a single project, a division, or an
        entire organization. It helps integrate traditionally separate organizational
        functions, set process improvement goals and priorities, provide guidance for
        quality processes, and provide a benchmark or point of reference for assessing
        current processes.[54] However, unlike Lean IT, CMMI (and other process
        models) doesn’t directly address sources of waste such as a lack of alignment
        between business units and the IT function or unnecessary architectural
        complexity within a software application.[2]
3. Information Technology Infrastructure Library (ITIL)
4. COBIT
   Lean IT: Complementary Methodologies(3/4)
Although Lean IT typically entails particular principles and
    methods such as value streams and value-stream mapping,
    Lean IT is, on a higher level, a philosophy rather than a
    prescribed metric or process methodology. In this way, Lean
    IT is pragmatic and agnostic. It seeks incremental waste
    reduction and value enhancement, but it does not require a
    grand overhaul of an existing process, and is complementary
    rather than alternative to other methodologies.
1. Six Sigma
2. Capability Maturity Model Integration (CMMI)
3. Information Technology Infrastructure Library (ITIL)
   – The Information Technology Infrastructure Library (ITIL) — a series of
     books published by the United Kingdom’s Office of Government
     Commerce — contains concepts, policies, and recommended practices
     on a broad range of IT management topics. These are again entirely
     compatible with the objectives and methods of Lean IT. Indeed, as
     another best-practice framework, ITIL may be considered alongside the
     CMMI for process improvement and COBIT for IT governance.
4. COBIT
    Lean IT: Complementary Methodologies(4/4)
Although Lean IT typically entails particular principles and methods such as
    value streams and value-stream mapping, Lean IT is, on a higher level, a
    philosophy rather than a prescribed metric or process methodology. In this
    way, Lean IT is pragmatic and agnostic. It seeks incremental waste
    reduction and value enhancement, but it does not require a grand overhaul
    of an existing process, and is complementary rather than alternative to
    other methodologies.
1. Six Sigma
2. Capability Maturity Model Integration (CMMI)
3. Information Technology Infrastructure Library (ITIL)
4. COBIT
    –   Control Objectives for Information and related Technology — better known as
        COBIT — is a framework or set of best practices for IT management created by
        the Information Systems Audit and Control Association (ISACA), and the IT
        Governance Institute (ITGI).[55] It provides managers, auditors, and IT users a
        set of metrics, processes, and best practices to assist in maximizing the benefits
        derived through the use of IT, achieving compliance with regulations such as
        Sarbanes-Oxley, and aligning IT investments with business objectives. COBIT
        also aims to unify global IT standards, including ITIL, CMMI, and ISO 17799.
        [56]
                                                      Lean IT
•   Lean IT(http://www.datadialogs.com/lean_it.html)
     –   The beginning
     –   The problem with IT
     –   The Breakthrough
•   Lean Manufacturing Principles & Benefits
     –   Reduce 7 waste
     –   Improve quality and fewer defects
     –   Reduced inventory
     –   Requires less space
     –   Enhances overall manufacturing flexibility
     –   Make identifying future Kaizens simpler
     –   Ensures a safer work environment
     –   Improves employee morale
•   How to implement Lean in the Lab (www.smartConsultingGroup.com)
     –   Improving measurable performance
     –   Measuring cost
     –   Specify value
            •   Value add
            •   Non-value add
            •   incidental
     –   Identify value stream
     –   Make value flow and create ―pull‖
     –   Level the load and the Mix
     –   Eliminate waste
     –   Manage performance
     –   Improve efficiency
     –   Reduces cost
     –   Improve performance
     –   Increase quality
•   Lean IT(http://www.datadialogs.com/lean_it.html)
     –   The beginning
     –   The problem with IT
     –   The Breakthrough
             Lean IT: The Beginning (1/2)
• Three decades ago a revolution began. A radical new approach to the
  management of business processes started to gain traction, first within the
  manufacturing world and later, much later, across all business types. That
  revolution has had several acronyms and names, but is now generally
  referred to simply as "lean"
• The fundamental realisation that set this movement in motion was that
  activity, of itself, is not necessarily a good thing. Up until this moment,
  business performance measurement systems were all built on the principle
  that keeping everyone busy at all times was the route to success and
  profitability. In the manufacturing world, this meant maximising the output
  of each producing unit hour by hour and gave rise to concepts such as
  economic batch sizes which sought to balance changeover times against lost
  production minutes by that unit.
• What the manufacturing world learnt was that it is the performance of the
  process overall that matters - not the business or otherwise of individual
  contributors within the process. With this realisation, the emphasis switched
  to linking the components of the chain ever more closely so that once a
  process was started, it flowed through the chain smoothly until completed -
  rather like knocking over a chain of dominoes - no breaks, no accumulations
  of work in progress.
             Lean IT: The Beginning (2/2)
• The advantages were obvious and dramatic. Huge reductions in work in
  progress released large amounts of cash. Locating and eliminating defects
  was made much easier since if A made a component for B and then waited
  for the signal to produce another, B could withhold the signal if the part was
  defective and A and B could get together and sort the problem then and
  there. Overall productivity soared and defect levels plummeted.
• The machining and assembly activities within manufacturing learnt these
  lessons well and quickly. The administration areas were much, much slower
  on the uptake. Although pilesof work in progress were seen as wasteful and
  a sign of problems, In-trays full of paper and desks covered in files were still
  the norm and seen as a sign of business. A completely empty in tray on a
  desk with only one item being worked on was viewed with suspicion.
• Gradually, the world has began to realise that paper fuelled processes were
  no different to those involving chunks of metal - the same dynamics applied
  - piles of paper equate to piles of WIP inventory - they signal wasted effort,
  long process completion times, high error rates and expense. The lean
  message has, at long last even reached the public sector and many councils
  and government departments are initiating lean projects.
          Lean IT: The Problem with IT
•   Lean projects are centred on the concept of continuous improvement. The people
    involved in a process are encouraged to get together regularly and divine ways to
    eliminate waste and improve the process. This is easy to do with manufacturing
    processes and it's not too difficult with purely paper-based processes. The problems
    start when the process involves computer systems and IT. The manufacturing world
    circumvented this problem by leaving IT out altogether and developing physical
    ways manage the process - telling the next operator when to make another
    component was often accomplished using a KanBan (Japanese for card but generally
    accepted to mean any physical method of communicating between work stations).
    People were very inventive. If the next workstation was in another building or on
    another floor they would link them by drainpipes and roll golf balls down as the
    request for another component to be made.
•   Computer systems did not lend themselves to the new way of thinking. These
    systems were carefully crafted over many man months or years - changing them at
    all was difficult and the idea that you could change them incrementally within a fast
    moving continuous improvement program simply laughable. The IT industry tried
    hard to overcome these limitations. Big-ticket systems providers such as ERP
    vendors made their systems ever more configurable. The desire to speed up the
    writing of bespoke systems gave rise to a swathe of Rapid application Development
    systems. Microsoft developed .Net and visual studio - designed to significantly speed
    up time it takes developers to create new applications. None of these developments
    came anywhere near the requirement to enable continuous improvement of IT
    systems.
         Lean IT: The Breakthrough (1/4)
•   All this changed with two completely new developments in the IT world. The first of
    these is called Service Oriented Architecture (SOA) This is a beautifully simple
    concept that, in simple terms, proposes that systems should be made up of many
    independent re-usable pieces called services. Each re-useable piece, or service,
    should use the same standard communication method to talk to other services.
•   A good example of a re-useable service is Google Maps which will provide computer
    systems with latitude and longitude coordinates on request if presented with a
    postcode. Companies wishing to create a system for allocating work to mobile
    engineers need the latitude and longitude of customers addresses in order to
    schedule work. Instead of having to write a program to do this, they simply send a
    request using the agreed communication standard to the relevant Google service and
    it returns the necessary coordinates.
•   With systems being made up of re-useable services, in theory the way a process
    works can be changed by simply altering the order in which services operate,
    replacing individual services or adding new ones or any combination of the three.
•   Good though this development is, it still is not good enough. Services are still
    programs and have to be written. To have solved our problem, we need to eliminate
    the need to write services. The answer to this seemingly intractable problem has
    been staring us in the face all the time. If it is possible to create business systems
    on the macro scale from re-useable services, then it is also possible to create
    individual services from even smaller re-useable services. I will call the components
    used to build such as service codelessly a micro service.
        Lean IT: The Breakthrough (1/4)
• Composite services perform recognisable user oriented functions like the
  Google example. Micro services undertake tasks that a programmer would
  normally have to define and write - tasks such as "get me data from a table
  within a database" or 'Display the contents of this field in a given position on
  a screen" At Datadialogs, we soon realised that any service, however
  complicated, can be built up from a relatively few such micro services.
• Just as with our Google example, all that is needed is to supply the specific
  parameters every time the service is needed. Google responds with a
  different lat and long for every postcode. A micro service designed to
  receive data from a database will return the relevant data once resented
  with the identity of the database to be queried, the table name or names
  the data is in and any qualifying information such as "all records with the
  surname Smith".
• Next we need a way to define a complete application. An application will be
  made up of a number of individual services, some of which will already exist,
  either internally of in the public domain and are being re-used, and many of
  which will be entirely new and have to be constructed specifically for this
  application. Each new service required will be constructed from a number of
  micro services and these all already exist within the Eden server.
         Lean IT: The Breakthrough (3/4)
•   To allow the Micro service orchestration layer to arrange instances of the micro
    services into the grouping required to create a given service, some sort of
    instructions set is required. We have solved this problem by developing a simple
    drag and drop, orchestration environment which allows solution providers to define
    the way a new service or set of services should operate.
•   At execution time, Eden interprets the orchestration and organises instances of the
    micro services into a matrix. The micro-service instances are sequenced within the
    matrix as follows; In the first column of the matrix are placed all instances that are
    not dependent on any prior micro-service execution. In the second column are all
    instances of the micro-service that are now able to execute as a result of the
    resolution of the first column and so on. Once the matrix is in place, the server
    applies the parameters defined in the model to create a steady state result.
•   Services are designed to communicate with one another via an agreed
    communication standard. The most common standard in use is Web services.
    Essentially, Web services are XML documents wrapped in a security and transport
    wrapper. A service will publish the format it needs requests to be presented in WSDL
    document (Web Service Definition Language). Anyone wishing to make use of the
    service within an application reads this document and then formats the request
    accordingly.
•   You can see from this that services are designed to communicate electronically with
    one another. We also need a service to be able to communicate with a human, and
    so another requirement is for a service to be able to present itself visually. The
    Datadialogs Eden SOA development has responded to this by adding the ability to
    attach a re-useable presentation layer to Eden services.
        Lean IT: The Breakthrough (4/4)
• Just as it is vital that new services can be created interactively with users,
  so it is vital that presentation layers can be designed, extended or amended
  "on the fly" so to speak. So just like the Eden service Composer, Eden's
  presentation designer is an entirely drag and drop, codeless tool.
• The output from the presentation designer is a JAVA applet. Just as with the
  rest of the Eden SOA solution, it is not a new applet each time a new
  presentation is designed - it is the same applet every time. Each time the
  applet is called, it requests the display parameters from the Eden SOA
  server which tell it what it needs to display this time and where. The applet
  can be configured to display as an applet, within a web page, or in a portal.
• This provides the final key. Write a complete set of micros services and
  wrap them in an orchestrator that can organise them into services, provide
  a codeless means of defining the rules and parameters needed, add a
  codeless presentation layer designer and you have an IT system that can
  support a continuous improvement program.
• Using this technology, new business solutions can be created, amended,
  updated and extended interactively with users on demand. What would
  have taken days using even the best development technologies now takes
  hours, thus allowing IT to be fully integrated into the business improvement
  process.
                                                      Lean IT
•   Lean IT(http://www.datadialogs.com/lean_it.html)
     –   The beginning
     –   The problem with IT
     –   The Breakthrough
•   Lean Manufacturing Principles & Benefits
     –   Reduce 7 waste
     –   Improve quality and fewer defects
     –   Reduced inventory
     –   Requires less space
     –   Enhances overall manufacturing flexibility
     –   Make identifying future Kaizens simpler
     –   Ensures a safer work environment
     –   Improves employee morale
•   How to implement Lean in the Lab (www.smartConsultingGroup.com)
     –   Improving measurable performance
     –   Measuring cost
     –   Specify value
            •   Value add
            •   Non-value add
            •   incidental
     –   Identify value stream
     –   Make value flow and create ―pull‖
     –   Level the load and the Mix
     –   Eliminate waste
     –   Manage performance
     –   Improve efficiency
     –   Reduces cost
     –   Improve performance
     –   Increase quality
•   Lean IT(http://www.datadialogs.com/lean_it.html)
     –   The beginning
     –   The problem with IT
     –   The Breakthrough
http://www.gembutsu.com/articles/leanmanufacturingprinciples.html
http://www.simtel.net/free/Business/Strategies-to-Run-a-Lean-Supply-Chain-How-Princip

				
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