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
2. Should you listen to me?
3. I read all these books
4. sharing what I learned
5. ◦ History & People ◦ Theory of Constraints ◦ Lean / Toyota Production System ◦ Lean IT
6. History & People
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
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
9. W. Edwards Deming 1900 - 1993 people & history history & people
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
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.
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
13. Joseph M. Juran 1904 - 2008 history & people
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
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
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
17. Eliyahu Moshe Goldratt Israely physicist turned business guru. Theory of Constraints author. .םיצוליאה תרות הגוה wikipedia.org/wiki/Eliyahu_M._Goldratt history & people
18. Eliyahu M. Goldratt 1947 - 2011 history & people
19. Eliyahu M. Goldratt 1947 - 2011 An hour saved at a non-bottleneck is a mirage. history & people
20. Theory of Constraints wikipedia.org/wiki/Theory_of_Constraints
21. ToC Measures T of Constraints ◦ Throughput ◦ Inventory ◦ Operating Cost Until the product is bought - nothing was sold.
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
23. ToC order of Measures T of Constraints 1. ↑ Throughput 2. ↓ Inventory 3. ↓ Operating Cost
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
25. ToC - What is a Constraint? T of Constraints Constraint = Capacity cannot meet demand
26. meet Herbie
27. Identify the Constraint(s) T of Constraints signs: ◦ people queue ◦ inventory buildup ◦ units to be processed ◦ work in progress / backlog
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
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
30. Subordinate and Sync to the Constraint T of Constraints Drum - Buffer - Rope Drum Buffer Rope
31. Elevate performance of the Constraint T of Constraints H
32. ToC Pitfalls Perfectly Balanced Line • Elevating 'all' constraints by elimination • Multiple constraints = Loss of control • Floating Bottlenecks = Unpredictable & Unmanageable
33. Lean Toyota Production System wikipedia.org/wiki/Toyota_Production_System
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
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
36. Mistake proofing avoid (yokeru) mistakes (poka) Poka-yoke ポカヨケ Lean TPS
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
38. Kanban 看板 Lean TPS kanban = card Used by downstream processes to signal upstream.
39. Heijunka 平準化 Lean TPS Smooth processing and production. ◦ Leveling ◦ Sequencing ◦ Stability and standardization
40. The Deming Cycle wikipedia.org/wiki/PDCA originates from Francis Bacon (Novum Organum, 1620) aka. Scientific Method Plan Do Check Act change control
41. Muda 無駄 the seven wastes Lean TPS ◦ Transportation ◦ Inventory ◦ Motion ◦ Waiting ◦ Over-processing ◦ Over-production ◦ Defects
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/
43. Prevention - the 5Ss ◦ Sort ◦ Straighten ◦ Scrub ◦ Systemize ◦ Standardize Lean TPS shadow box
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
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
46. Lean IT Operations wikipedia.org/wiki/Lean_software_development
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
48. "Think big, act small, fail fast; learn rapidly" Lean IT
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
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
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
52. www.devops.co.il Evgeny Zislis about.me/kesor
53. ? bit.ly/toc-lean-ops