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Journal of Advance Management Research, ISSN: 2393-9664 Vol.06 Issue-02, (February 2018), Impact Factor: 4.73 Double-Blind Peer Reviewed Refereed International Journal - Included in the International Serial Directories Journal of Advance Management Research, ISSN: 2393-9664 (JAMR)http://www.jamrpublication.com email id- [email protected] Page 104 Efficiency Improvement through Lean Kanban Transformation Prixit Raj, Research Scholar, School of Management, GD Goenka University Dr. Parul Sinha, Asst. Professor, School of Management, GD Goenka University Abstract-In last decade the IT companies have been challenged by ability to deploy new features in short release cycle times. This paper examines the lean & Kanban approach dealing with the end goal to upgrade productivity, lessen cost and boost consumer value while reducing waste amid the software engineering processes. Lean is a set of tools and techniques used to attack "waste" in the company from a customer perspective. Even though, there are many key factors for this, Kanban focusses on visualizing the workflow, limiting the WIP and continuous improvement of life cycle. Additionally, the lean strategy connotes adjusted development process to deliver goods on time and in the correct quantity and quality. Although lean principles are established and have broad applicability in manufacturing, applicability in IT is only emerging. A case from a software product and organization is considered which emphasis on improving productivity with the assistance of lean and Kanban I. INTRODUCTION In 21st century, the industry is characterized by intense competition with frequent changes in the customer requirement and final products. In such an environment, organizations need to extend the adequacy and proficiency of their operations to keep abreast of competition. In manufacturing domain, lean practices began in Japan in 1980, has exhibited an extraordinary success by giving the producers a competitive edge by restricting waste and improving effectiveness (Kumar, Kumar, Haleem and Gahlot, 2013) [1]. These lean practices consisted of particular tools, practices and techniques that could be deployed for proficient and successful production framework utilizing fewer assets to make higher quality and create more benefits (Pettersen, 2009) [2]. Many companies, generally extensive ones, have broadly strived for lean transformation with a specific end goal to keep their competitiveness in worldwide markets (Anand and Kodali, 2008) [3]. In actuality, different writings have recorded its tremendous advantages, for example, lessening in costs, times, deformities and wastes alongside a change in quality, adaptability and general appartuseffectiveness (Bhamu and Sangwan, 2014; Dennis, 2007; Liker and Yu, 2000) [4-6] II. BRIEF LOOK AT IMPROVEMENT METHODOLOGIES A. Agile Methodology The "Agile software Development Manifesto" was created in February 2001, by delegates from countless adolescent "agile" procedures, for instance, Scrum, DSDM, and XP. The pronouncement is a plan of 4 values and 12 rules that delineate "What is suggested by Agile" [9]. 1) The Agile Values 1. The people and collaborations over the procedures and tools. 2. Working software over intensive documentation. 3. Customer coordinated effort over the contract management 4. Reacting to change over after an arrangement 2) The Agile Principles 1. Our most elevated need is to fulfill the customer through ahead of schedule and nonstop conveyance of profitable software. 2. Welcome evolving necessities, even late in development. Agile processes outfit change for the customer's competitive leverage.

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Page 1: Efficiency Improvement through Lean Kanban TransformationKanban is a simple agile "best practice" method that concentrates on setting up a continuous workflow - and ongoing value for

Journal of Advance Management Research, ISSN: 2393-9664

Vol.06 Issue-02, (February 2018), Impact Factor: 4.73

Double-Blind Peer Reviewed Refereed International Journal - Included in the International Serial Directories

Journal of Advance Management Research, ISSN: 2393-9664

(JAMR)http://www.jamrpublication.com email id- [email protected] Page 104

Efficiency Improvement through Lean Kanban Transformation

Prixit Raj, Research Scholar, School of Management, GD Goenka University

Dr. Parul Sinha, Asst. Professor, School of Management, GD Goenka University

Abstract-In last decade the IT companies have been challenged by ability to deploy new features in short release cycle times. This paper examines the lean & Kanban approach dealing with the end goal to upgrade productivity, lessen cost and boost consumer value while reducing waste amid the software engineering processes. Lean is a set of tools and techniques used to attack "waste" in the company from a customer perspective. Even though, there are many key factors for this, Kanban focusses on visualizing the workflow, limiting the WIP and continuous improvement of life cycle. Additionally, the lean strategy connotes adjusted development process to deliver goods on time and in the correct quantity and quality. Although lean principles are established and have broad applicability in manufacturing, applicability in IT is only emerging. A case from a software product and organization is considered which emphasis on improving productivity with the assistance of lean and Kanban

I. INTRODUCTION

In 21st century, the industry is characterized by intense competition with frequent changes in the customer requirement and final products. In such an environment, organizations need to extend the adequacy and proficiency of their operations to keep abreast of competition. In manufacturing domain, lean practices began in Japan in 1980, has exhibited an extraordinary success by giving the producers a competitive edge by restricting waste and improving effectiveness (Kumar, Kumar, Haleem and Gahlot, 2013) [1]. These lean practices consisted of particular tools, practices and techniques that could be deployed for proficient and successful production framework utilizing fewer assets to make higher quality and create more benefits (Pettersen, 2009) [2]. Many companies, generally extensive ones, have

broadly strived for lean transformation with a specific end goal to keep their competitiveness in worldwide markets (Anand and Kodali, 2008) [3]. In actuality, different writings have recorded its tremendous advantages, for example, lessening in costs, times, deformities and wastes alongside a change in quality, adaptability and general appartuseffectiveness (Bhamu and Sangwan, 2014; Dennis, 2007; Liker and Yu, 2000) [4-6]

II. BRIEF LOOK AT IMPROVEMENT METHODOLOGIES

A. Agile Methodology

The "Agile software Development Manifesto" was created in February 2001, by delegates from countless adolescent "agile" procedures, for instance, Scrum, DSDM, and XP. The pronouncement is a plan of 4 values and 12 rules that delineate "What is suggested by Agile" [9].

1) The Agile Values

1. The people and collaborations over the procedures and tools.

2. Working software over intensive documentation.

3. Customer coordinated effort over the contract management

4. Reacting to change over after an arrangement

2) The Agile Principles

1. Our most elevated need is to fulfill the customer through ahead of schedule and nonstop conveyance of profitable software.

2. Welcome evolving necessities, even late in development. Agile processes outfit change for the customer's competitive leverage.

Page 2: Efficiency Improvement through Lean Kanban TransformationKanban is a simple agile "best practice" method that concentrates on setting up a continuous workflow - and ongoing value for

Journal of Advance Management Research, ISSN: 2393-9664

Vol.06 Issue-02, (February 2018), Impact Factor: 4.73

Double-Blind Peer Reviewed Refereed International Journal - Included in the International Serial Directories

Journal of Advance Management Research, ISSN: 2393-9664

(JAMR)http://www.jamrpublication.com email id- [email protected] Page 105

3. Convey working software much of the time, from a long time to a few months, with an inclination to the shorter time-scale.

4. Specialists and designers must cooperate every day all through the venture.

5. Construct extends around propelled people. Give them the environment and support they need and believe them to take care of business.

6. The most proficient and powerful method of passing on data to and inside a development group is an eye to eye discussion.

7. Working software is an essential measure of advance.

8. Agile processes advance sustainable development. The supporters, designers, and clients ought to have the capacity to keep up a consistent pace inconclusively.

9. Nonstop regard for specialized greatness and great plan upgrades dexterity.

10. Simplicity–the craft of augmenting the measure of work not done–is fundamental.

11. The best architectures, prerequisites, and designs rise up out of self-sorting out groups.

12. At customary interims, the group ponders how to end up plainly more powerful, then tunes and modifies its conduct as needs be.

3) AGILE METHODS

The term Agile really alludes to an idea, not a particular methodology. There are numerous, and at times clashing, strategies that can be utilized under the Agile umbrella. These incorporate;

Agile Unified Process,

Behaviour Driven Development (BDD),

Crystal Clear,

Dynamic Systems Development Method (DSDM),

Extreme Programming (XP)

Feature Driven Development (FDD),

Kanban

Lean Development,

Rapid Application Development (RAD),

IBM - Rational Unified Process (RUP),

Scrum,

Test Driven Development (TDD)

B. Lean

1) The Origin of Lean

Lean Manufacturing, or simply 'Lean', is a streamlined manufacturing and production method, and a logic that means to diminish production costs, by dispensing with every single 'wasteful' process. Put another way, Lean concentrates on 'getting the correct things to the opportune place, at the ideal time, in the correct quantity, to accomplish culminate work process' [10].

Lean gives management techniques to distinguish, and wipe out, waste which, hence enhances quality, and lessens general production time and cost. Likewise, Lean Manufacturing additionally enhances the 'stream' of production through the framework. These techniques incorporate:

Value stream mapping: Analyzing and managing the flow of materials and data that is required in the production process.

5S: This is an approach to quality and steady improvement. The five S's are: Sort (to clean and compose the work area), Set in Order (set up the work range to guarantee simple recognizable proof and openness), Shine (mess counteractive action and accepted upkeep of the work region), Standardize (make a steady approach for completing production processes), Sustain (keep up the past four S's through teach and commitment).

Kanban: It will be secured later.

Fail-proofing: Prevent human errors previously they happen.

Production leveling: Assure that the advancement in the production process reveals at a consistent rate, with the intention that consequent advances can likewise convey at a constant rate. No advancement in the production process should deliver goods at a swifter rate than resulting steps, or devour goods at a slower rate than running before steps.

At long last, Lean emphasizes Kaizen or Continuous Improvement; the proceeding, incremental and standard strategy of building up all processes, features and serves describing with production,

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Journal of Advance Management Research, ISSN: 2393-9664

Vol.06 Issue-02, (February 2018), Impact Factor: 4.73

Double-Blind Peer Reviewed Refereed International Journal - Included in the International Serial Directories

Journal of Advance Management Research, ISSN: 2393-9664

(JAMR)http://www.jamrpublication.com email id- [email protected] Page 106

resources, hierarchical management, and the supply chain [11].

It ought to be mentioned now that great numbers of the terms in Lean Manufacturing have been described from the first Japanese. All things dealt with, they usually give up the particular circumstance, or optional implications, of the term. Where probable, this setting is characterized all through this course.

2) The Lean Principles

Notwithstanding the standards from the agile manifesto, there are 7 standards characterized for lean development.

1. Eliminate waste 2. Amplify learning 3. Decide as late as possible 4. Deliver as fast as possible 5. Empower the team 6. Build integrity in 7. See the whole

3) Understanding Waste

The techniques and frameworks inside Agile and Lean expect to build development efficiency, by taking out every 'wasteful' process. Drawing on the fruitful ideas from the Lean manufacturing frameworks, we can characterize 3 noteworthy types of waste.

Mura (Unevenness): Mura exists where there is a variety in work process, prompting lopsided circumstances, most ordinarily where work process steps are conflicting, unequal, or without standard techniques.

Muri (Overburden): Muri exists where management expects absurd exertion from staff, material or hardware, most ordinarily coming about because of implausible desires and lack of foresight.

Muda (Waste): Muda is any progression in the generation work process that does not increase the value of the client. The first seven squanders, as characterized by the Toyota Production System (TPS), were:

1. Transport,

2. Inventory, 3. Motion (moving more than is

required), 4. Waiting, 5. Overproduction, 6. Over Processing (from poor

design), and 7. Defects (the effort involved in

inspecting for, and fixing, defects).

Additional and new wastes are not dealing with a client request and are a waste of unused human capacity. There is further detachment between Type 1 (indispensable waste, e.g. government bearings) and Type 2 (unnecessary wastes).

C. Kanban in Software Development

The principal thoughts of Kanban originated from element of the Toyota Production System as an instrument to control Just-In-Time (JIT) generation and assembling forms. Kanban, which around translates as 'bulletin', is delineated as a 'visual process management system that encourages what to make, when to convey it, and the sum to convey'. The forefront Kanban strategy, characterized by David J. Anderson in 2007, is an adaption of the primary JIT approach, with an accentuation on staff welfare and consistent process change practices. This is in the long run a strategy that undertakings to improve a business rate of productivity by diminishing holding up stock and related passing on costs.

Kanban is a simple agile "best practice" method that concentrates on setting up a continuous workflow - and ongoing value for the customer. Its aim is to visualize and improve any software development process. The end result is a development pipeline that is predictably and effectively delivering high value work. At its least demanding, each sorted out errand (or card) on a Kanban Board experiences an impression of the gathering's procedure, or work process, as they happen. Each basic activity in the gathering's work procedure is envisioned as areas on the Kanban Board, generally starting at undertaking definition, and winding up with transport to the customer. Clearly, being Agile, these cards and activities are discernible to all individuals, consisting of the customer.

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Journal of Advance Management Research, ISSN: 2393-9664

Vol.06 Issue-02, (February 2018), Impact Factor: 4.73

Double-Blind Peer Reviewed Refereed International Journal - Included in the International Serial Directories

Journal of Advance Management Research, ISSN: 2393-9664

(JAMR)http://www.jamrpublication.com email id- [email protected] Page 107

Figure 1 Example Kanban Board

While a Kanban workflow can be customized, the most straightforward representation of workflow has just 4 distinct states in software maintenance life-cycle. These states are;

Backlog – undertakings that are holding up to be taken a shot at

In Progress – right now being produced by a colleague

Testing – experiencing joining, framework or UAT testing

Done – finish and prepared to be exhibited and/or conveyed

To recognize, and control, bottlenecks and process limitations, every workflow state (or column) has a cutoff, called a WIP, or Work In Progress Limit, to the

quantity of right now dynamic assignments. This permits managers and colleagues to routinely monitor, and measure, the flow of work.

In total, there are 6 core elements to Kanban:

1. Visualize (Kanban / Card Wall) 2. Limit WIP 3. Manage Flow (and reduce bottlenecks) 4. Make Policies Explicit 5. Feedback Loops 6. Improve Collaboratively

Figure 2: Improvement Methodology Selection

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Journal of Advance Management Research, ISSN: 2393-9664

Vol.06 Issue-02, (February 2018), Impact Factor: 4.73

Double-Blind Peer Reviewed Refereed International Journal - Included in the International Serial Directories

Journal of Advance Management Research, ISSN: 2393-9664

(JAMR)http://www.jamrpublication.com email id- [email protected] Page 108

III. OBJECTIVES OF EFFICIENCY IMPROVEMENT

The objective of Efficiency Improvement initiatives to provide result oriented methodologies and tools to enhance project performance and save effort.

Sustainable optimization of inefficient processes

Intelligent cost reduction by specific cost savings at the right place

Reduction of development cost/-lead time/ for new products and services

Change in culture for the global competition:encourage cross functional work, active know sharing (bestpractices), customer orientation, innovation

IV. APPROACH AND DESIGNING THE FRAMEWORK

Figure 3: Approach For Efficiency Improvement

A. Efficiency Improvement Framework

Many studies have been done on the success of such improvement initiatives. These studies suggest that certain organizational variables can significantly influence success rate of such improvement initiatives. Studies have identified that Re-engineering, executive commitment, strategic alignment and employee empowerment were essential for such initiatives to work effectively (Lok, Hung, Walsh, Wang, & Crawford, 2005). The fruitful application of an improvement framework relies upon leadership commitment, Implementation infrastructure, Reward and Recognition & communication and change management. These measures are described as takes after

Strategic alignment

Leadership commitment

Implementation plan along with the process infrastructure

Employee empowerment and motivation: Rewards & Recognition mechanism

Communication and Change Management

The Framework to be designed must encompass above characteristics so that probability of a successful deployment in the organization is much higher.

The designed framework had a provision of program managing the initiative, necessary leadership support and intervention, employee recognition and reward system.

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Journal of Advance Management Research, ISSN: 2393-9664

Vol.06 Issue-02, (February 2018), Impact Factor: 4.73

Double-Blind Peer Reviewed Refereed International Journal - Included in the International Serial Directories

Journal of Advance Management Research, ISSN: 2393-9664

(JAMR)http://www.jamrpublication.com email id- [email protected] Page 109

Figure 4: Efficiency Improvement Framework

1) Governance Plan

To monitor the progress of overall program and individual improvement projects using Kanban or Lean

2) Candidate Selection (Software Projects)

The Initial set of projects were selected

Adequate Representation from across the Business Units: The idea was to select and deploy such transformational practices across various business clusters and customers so the generality of practices and

deployment across the variations could be judged

Software Projects of different Size

Software projects of different lifecycles such as development, Maintenance, testing

A set of 16 improvement projects across different business unit and various software lifecycles were selected for implementation.

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Journal of Advance Management Research, ISSN: 2393-9664

Vol.06 Issue-02, (February 2018), Impact Factor: 4.73

Double-Blind Peer Reviewed Refereed International Journal - Included in the International Serial Directories

Journal of Advance Management Research, ISSN: 2393-9664

(JAMR)http://www.jamrpublication.com email id- [email protected] Page 110

Figure 5: Representation from different business Units

TABLE I LIST OF EFFICIENCY PROJECTS IDENTIFIED

Program Name Improvement details Methodology

Program 1 Maint To improve Bug backlog efficiency By reducing Turn around time KANBAN

Program 2 Dev Reducing TAT on key modules by reducing Non value added activities LEAN

Program 3 Maint Reducing TAT for improving SLA Adherence KANBAN

Program 4 Testing Productivity Improvement in Testing LEAN

Program 5 Maint Improve productivity and reduce TAT KANBAN

Program 6 Testing Reducing the test execution cycle on the release by reducing non value add activities

LEAN

Program 7 Dev To Improve Review effectiveness and reduce Rework effort LEAN

Program 9 Maint Turn Around Time Improvement in SFS support projects using Kanban KANBAN

Program 10 Maint Improving the MTTR / TAT for Support calls LEAN

Program 11 Maint Improve the Turn Around Time for defects and user stories KANBAN

Program 12 Maint To improve the Turn Around Time for the AssetFlow and AdFlow team for the bug fixes tickets

KANBAN

Program 13 Testing Overall reduction of the System Test cycle and Getting product to market faster which is an important objective for Oracle. Along with early defect detection at initial stage of test lifecycle.

LEAN

Program 14 Maint 1) To improve avg time to fix per bug of (SL1 and Sl2) by minimum 5% (Current performance -10.5) 2) Reduce SLA hit count by 10%

LEAN

Program 15 Dev Improving the quality of customer deliverable by identifying defects in early phase and meeting the agreed numbers ( 65: 20:15)

LEAN

Program 16 Maint Improvement in Turn Around Time KANBAN

The identified Projects were closely monitored for successful implementation

Results of the improvement project implementation

5,00,000 USD saved for the organization through the above improvement programs

Improvement resulting in 44% reduction in Turnaround time

Improvement has enabled >25% of defect detection in early phases

VI. CONCLUSION

BU16% BU2

6%BU37%

BU47%

BU57%

BU67%

BU720%

BU813%

BU97%

BU1020%

Efficiency Improvement Projects

BU1

BU2

BU3

BU4

BU5

BU6

BU7

BU8

BU9

BU10

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Journal of Advance Management Research, ISSN: 2393-9664

Vol.06 Issue-02, (February 2018), Impact Factor: 4.73

Double-Blind Peer Reviewed Refereed International Journal - Included in the International Serial Directories

Journal of Advance Management Research, ISSN: 2393-9664

(JAMR)http://www.jamrpublication.com email id- [email protected] Page 111

Lean is known improvement methodology and is tremendous framework, tools and activities.Kanban helps in visible workflow which enhances transparency and productivity. The effect of lean tools and frameworks was observed on the ground as shown above. The point of this paper was to discover how Lean and Kanban can be used to enhance productivity in a software development organization. Given enough time, any software-intensive organization can develop great software products and services. The real challenge lies in faster time to market and that is one of the most important success factor in software industry. Above cases we have reduction of 44% in Turn around time and 25% improvement in early detection of defects.Lean in IT companies poses challenges in terms of deployment but has significant benefits. Since lean is sometimes difficult to execute in a brief timeframe. The organization had to pick the correct lean tools and techniques which are pragmatic and bring improvement for their stated objectives; then again companies need to set up environment in terms of leadership commitment, implementation plan, change Management and employee involvement. Hence, it needs far greater change for driving the improvement and may meet resistance from employees but many organizations are unable to spend proper resources to accomplish it. The Lean is not effectivein such cases as it requires every day monitoring and nonstop endeavors. Lean deployment in IT depends upon value streams which digital and intangible. HR, Logistics, Marketing, Product development divisions will be influenced by this change. Lean effectiveness in service sector for service productivity improvement can likewise be a future research area.

REFERENCES

[1]. Kumar, N., Kumar, S., Haleem, A., &Gahlot, P. (2013). Implementing Lean Manufacturing System: ISM Approach. Journal of Industrial Engineering and Management, 6(4), 996-1012. http://dx.doi.org/10.3926/jiem.508

[2]. Pettersen, J. (2009). Defining lean production: some conceptual and practical issues. The TQM Journal, 21(2), 127-142. http://dx.doi.org/10.1108/17542730910938137

[3]. Anand, G., &Kodali, R. (2008). Benchmarking the benchmarking models. Benchmarking: An International Journal, 15(3), 257-291. http://dx.doi.org/10.1108/14635770810876593

[4]. Bhamu, J., &Sangwan, K.S. (2014). Lean manufacturing: literature review and research issues. International Journal of Operations & Production Management, 34(7),876-940.http://dx.doi.org/10.1108/IJOPM-08-2012-0315

[5]. Dennis, P. (2007). Lean production simplified (2nd ed.). New York: Productivity Press.

[6]. iker, J.K., & Yu, Y.-C. (2000). Japanese automakers, US suppliers and supply-chain superiority. Sloan Management Review, 42(1), 81-93.

[7]. Lok, P., Hung, R. Y., Walsh, P., Wang, P., & Crawford, J. (2005, November). An integrative framework for measuring the extent to which organizational variables influence the success of process improvement programmes. Journal of Management Studies. https://doi.org/10.1111/j.1467-6486.2005.00547.x

[8]. Directing the Agile Organisation – Evan Leybourn

[9]. Kanban: Successful Evolutionary Change for Your Technology Business – David J. Anderson

[10]. Lean Software Development: An Agile Toolkit - Mary Poppendieck

[11]. Agile Estimating and Planning - Mike Cohn

[12]. Managing Agile Projects - Kevin J. Aguanno