ToC Lean Ops

Software applications become more and more complex, it have become much more difficult to have one holistic view of it all.

Common practice for many IT departments in software companies is jumping from solving one local maxima problem to another with disregard of the big whole.

For some time now the software development practice neighbour has been borrowing some of the solutions to managing themselves from an unexpected direction - industrial manufacturing.

Leading ideas for these solutions have been defined by Deming, Toyota, Motorola and Eliyahu Goldratt with his Theory of Constraints.

It is time for operations to get into the game!

Learn some of these life changing practices and solve ALL the operation problems once and for all!

Transcript

1. Amazing Ops
   using Theory of Constraints & Lean
   

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2. Should you listen to me?
   

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3. I read all these books
   

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4. sharing what I learned
   

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5. ○ History & People
   ○ Theory of Constraints
   ○ Lean / Toyota Production System
   ○ Lean IT
   

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6. History & People
   

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7. Japan occupied by the Allied Powers until 1952.
   WWII to 1953 U.S. provided $5.9b to "Aid Asia".
   non-Marshall Plan
   $2.4b to Japan.
   $282m to Israel
   wikipedia.org/wiki/Marshall_Plan
   Japan post-WWII
   history
   &
   people
   

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8. Statistics Prof. NY Uni. of Business.
   Worked from 1947 onwards in Japan.
   Emphasis on statistical process control.
   Quality = Result of work efforts / Total costs.
   wikipedia.org/wiki/W._Edwards_Deming
   William Edwards Deming
   history
   &
   people
   

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9. W. Edwards Deming 1900 - 1993
   people
   &
   history
   history
   &
   people
   

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10. W. Edwards Deming 1900 - 1993
    It is not necessary to change.
    Survival is not mandatory.
    In God we trust;
    all others must bring data.
    people
    &
    history
    history
    &
    people
    

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11. W. Edwards Deming 1900 - 1993
    people
    &
    history
    history
    &
    people
    doing his best
    It is not enough to do your best;
    you must know what to do,
    and then do your best.
    

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12. Joseph Moses Juran
    Thought leader on Cost of Poor Quality.
    Applied the Pareto Principle to quality issues.
    Cultural resistance = Root of quality issues.
    wikipedia.org/wiki/Joseph_M._Juran
    history
    &
    people
    

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13. Joseph M. Juran 1904 - 2008
    history
    &
    people
    

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14. Joseph M. Juran 1904 - 2008
    Goal setting has traditionally been
    based on past performance.
    This practice has tended to perpetuate
    the sins of the past.
    We cannot solve our problems with the same thinking
    we used when we created them.
    - Albert Einstein
    history
    &
    people
    

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15. Taiichi Ohno 大野耐
    The father of the Toyota Production System
    Devised the seven Muda 無駄
    Just In Time
    wikipedia.org/wiki/Taiichi_Ohno
    history
    &
    people
    

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16. Taiichi Ohno 1912 - 1990
    Where there is no Standard
    there can be no Kaizen.
    Costs do not exist to be calculated.
    Costs exist to be reduced.
    The more inventory a company has,
    the less likely they will have what they need.
    history
    &
    people
    

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17. Eliyahu Moshe Goldratt
    Israely physicist turned business guru.
    Theory of Constraints author.
    .םיצוליאה תרות הגוה
    wikipedia.org/wiki/Eliyahu_M._Goldratt
    history
    &
    people
    

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18. Eliyahu M. Goldratt 1947 - 2011
    history
    &
    people
    

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19. Eliyahu M. Goldratt 1947 - 2011
    An hour saved at a non-bottleneck
    is a mirage.
    history
    &
    people
    

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20. Theory of Constraints
    wikipedia.org/wiki/Theory_of_Constraints
    

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21. ToC Measures
    T
    of Constraints
    ○ Throughput
    ○ Inventory
    ○ Operating Cost
    Until the product is bought - nothing was sold.
    

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22. Traditional
    Inventory = ↑ Profit
    ○ overproduction
    ○ busy = efficient
    Operational Cost #1
    ○ Sub-system optimization
    ○ Cost center disease
    ToC Measures
    T
    of Constraints
    Theory of Constraints
    Inventory = ↓ Profit
    ○ sell inventory
    ○ extra work discouraged
    Throughput #1
    ○ Systemic optimization
    ○ Continuous Improvement
    

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23. ToC order of Measures
    T
    of Constraints
    1. ↑ Throughput
    2. ↓ Inventory
    3. ↓ Operating Cost
    

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24. ToC Steps
    T
    of Constraints
    1. Identify the constraints
    2. Exploit the constraint
    3. Subordinate and sync to the constraint
    4. Elevate performance of the constraint
    5. Repeat
    

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25. ToC - What is a Constraint?
    T
    of Constraints
    Constraint = Capacity cannot meet demand
    

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26. meet Herbie
    

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27. Identify the Constraint(s)
    T
    of Constraints
    signs:
    ○ people queue
    ○ inventory buildup
    ○ units to be processed
    ○ work in progress / backlog
    

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28. Exploit the Constraint
    T
    of Constraints
    Maximize its utilization toward productive
    throughput - Don't allow it to be idle.
    time lost at the constraint is lost forever;
    it can never be made up
    H
    

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29. Subordinate and Sync to the Constraint
    T
    of Constraints
    Drum - production rate of the constraint sets rate for the
    system, both upstream & downstream.
    Buffer - Placed in front of the drum (upstream) to keep
    constraint busy, have no throughput disruption.
    Rope - Actions taken to tie the rate at which material is
    released into the system to production rate of the drum.
    H
    

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30. Subordinate and Sync to the Constraint
    T
    of Constraints
    Drum - Buffer - Rope
    Drum
    Buffer
    Rope
    

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31. Elevate performance of the Constraint
    T
    of Constraints
    H
    

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32. ToC Pitfalls
    Perfectly Balanced Line
    ● Elevating 'all' constraints by elimination
    ● Multiple constraints = Loss of control
    ● Floating Bottlenecks =
    Unpredictable & Unmanageable
    

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33. Lean
    Toyota Production System
    wikipedia.org/wiki/Toyota_Production_System
    

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34. Lean Foundation
    Jidoka
    Autonomation
    Built-in quality
    Stop at abnormalities
    Just in Time
    Single piece flow
    Pull production
    Takt time production
    People
    People
    People
    People
    Heijunka
    

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35. Autonomation
    1. Detect the abnormality.
    2. Stop.
    3. Fix or correct the immediate condition.
    4. Investigate the root cause and install a
    countermeasure.
    Jidoka 自働化
    Lean
    TPS
    

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36. Mistake proofing
    avoid (yokeru) mistakes (poka)
    Poka-yoke ポカヨケ
    Lean
    TPS
    

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37. Just in Time
    Lean
    TPS
    Provide customer what he needs,
    at the right time and in the right quantity.
    ○ Single piece flow
    ○ Pull production
    ○ Takt time
    

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38. Kanban 看板
    Lean
    TPS
    kanban = card
    Used by downstream processes to signal upstream.
    

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39. Heijunka 平準化
    Lean
    TPS
    Smooth processing and production.
    ○ Leveling
    ○ Sequencing
    ○ Stability and standardization
    

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40. The Deming Cycle
    wikipedia.org/wiki/PDCA
    originates from Francis Bacon (Novum Organum, 1620) aka. Scientific Method
    Plan Do Check Act
    change
    control
    

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41. Muda 無駄 the seven wastes
    Lean
    TPS
    ○ Transportation
    ○ Inventory
    ○ Motion
    ○ Waiting
    ○ Over-processing
    ○ Over-production
    ○ Defects
    

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42. Before it moves, hold it,
    Before it goes wrong, mend it,
    Drain off water in winter before it freezes,
    Before weeds grow, sow them to the breezes,
    Can foresee
    Harmful events and not allow them to be.
    - Chapter 64 of the 道德經 Tao Teh Ching
    by Lao Tzu, 600 BC
    wayist.org/ttc compared/
    

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43. Prevention - the 5Ss
    ○ Sort
    ○ Straighten
    ○ Scrub
    ○ Systemize
    ○ Standardize
    Lean
    TPS
    shadow box
    

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44. Kaizen 改善
    Lean
    TPS
    Good Change / Improvement / Change for the better
    ○ Eliminate "hard" work - Muri 無理
    ○ Perform experiments (PDCA)
    ○ Participation of people in the improvement
    

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45. Genchi Genbutsu 現地現物
    Go and see.
    Go to the Gemba 現場, the real place.
    Go to where the work gets done.
    Lean
    TPS
    

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46. Lean IT Operations
    wikipedia.org/wiki/Lean_software_development
    

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47. Principles
    ○ Eliminate waste
    ○ Amplify learning
    ○ Decide as late as possible
    ○ Deliver as fast as possible
    ○ Empower the team
    ○ Build integrity in
    ○ See the whole
    Lean
    IT
    

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48. "Think big,
    act small,
    fail fast;
    learn rapidly"
    Lean
    IT
    

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49. Agile History
    1970 Tom Gilb publishing Evolutionary Project Management (EVO)
    1974 E.A.Edmonds paper introduces Adaptive Software Development process
    1990s Agile methods vs. heavyweight project management methods
    2001 Manifesto for Agile Software Development
    2005 Declaration of Interdependence by Alistair Cockburn and Jim Highsmith
    Lean
    IT
    

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50. Devops History
    1993 Mark Bugess creates CFEngine and presents in a paper at the CERN
    computing conference
    2005 Puppet Labs founded by Luke Kanies
    2008 first Velocity conference by O'Reilly focusing on web performance and
    operations
    2008 Jesse Robbins & Adam Jacob found OpsCode
    2009 Patrick Debois talks about DevOps and organizes the first DevOpsDays in
    Belgium
    Lean
    IT
    

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51. Recommended books/video/audio
    ○ The Goal
    bit.ly/the-goal
    ○ The Phoenix Project
    bit.ly/the-phoenix-project
    ○ Office Space
    bit.ly/office-space-movie
    ○ NUMMI Final Days
    bit.ly/nummi-final-days
    

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52. www.devops.co.il
    Evgeny Zislis
    about.me/kesor
    

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53. ?
    bit.ly/toc-lean-ops
    

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