Mark Lear and Mike Orzen - European Lean IT Summit

22 & 23 November, 2012 Paris, France

Copyright © Institut Lean France 2012

Applying Value Streams

in a DevOps Environment

~~~

A Case Study

Mark Lear, Process Owner Project & Enhancement Value Stream (PEVS)

Mike Orzen, Lean IT Coach, Adjunct Professor


2

Agenda

• Who are Con-way and

Menlo?

• Lean background at Menlo

• Core Problems?

• Experimental

Countermeasures

• Expected Improvements

• Implementation Approach

• Results

• Lessons Learned

• Ongoing Challenges

• Q&A

Applying Value Streams in a DevOps Environment – Lear / Orzen

Con-way Inc.: $5 billion transportation & logistics company

•$3.1 billion revenue

•9,100 Tractors

•26,300 Trailers

•Nearly 300 service centers

•$1.5 billion gross revenue

•145 worldwide warehouse locations

•4,300 employees

Less-than-Truckload (LTL) Third-Party Logistics (3PL) Truckload (TL)

•$0.6 billion revenue

•2,600 Tractors

•8,100 Trailers

Integrity Safety Excellence Commitment Collaboration

3 Applying Value Streams in a DevOps Environment – Lear / Orzen


4

Background on Lean at Menlo

• Getting started

• A person with a vision

• A key ingredient

• Check-Adjust

• The glass ceiling



5

Core Problems

External VOC Feedback:

• Cost and Delivery

• Quality



6

Core Problems (continued)

Internal VOC:

• Organizational Structure

• Project and Resource

Management

• Work-Life Balance



7

Experimental Countermeasures

Implementation of Value

Streams to address

standardization and flow:

• A “focused factory” concept

separating repetitive

production / operations

support work from project /

development work



8

Expected Improvements

External VOC:

• Reduce cycle time

• Allow better cost isolation

• Improve quality of

systems / processes

Internal VOC:

• Increase team focus on flow/

standardization

• Simplify scheduling

• Improve work-life balance



9

Implementation Approach

• Sold to IT managers first

• Documented value stream owner role

• Defined structure, boundaries and size of Value

Streams

• Socialized with team members and listened to

concerns



10

Implementation Approach (continued)

• Held Town Hall to address concern areas:

– Co-location

– Production support seen as low-value work

– Team member rotation

– Suitability for smaller teams

– Sensitivity to “factory” reference



11 Applying Value Streams in a DevOps Environment – Lear / Orzen

Pre-Sales Support

Project Mgmt

Customer Delivery

Technical Support

Integration TMS WMS Quality Testing

Business Intelligence

Integration TMS WMS Quality Testing

Business Intelligence

Customer Delivery

• Technical tools

• Job rotations

• Training

• Production turnover

Projects & Enhancements

Production Support

Sales to

Startu

p

Sustain

ed

O

pe

ration

s

Sust

ain

ed

O

pe

rati

on

s

Results – New Value Stream Organization


12

Results – IT Production Support


0

5

10

15

no

v.-0

9

févr

.-1

0

mai

-10

aoû

t-1

0

no

v.-1

0

févr

.-1

1

mai

-11

aoû

t-1

1

no

v.-1

1

févr

.-1

2

mai

-12

aoû

t-1

2

Application Occurrences

0,00

5,00

10,00

15,00

20,00

25,00

30,00

no

v.-0

9

févr

.-1

0

mai

-10

aoû

t-1

0

no

v.-1

0

févr

.-1

1

mai

-11

aoû

t-1

1

no

v.-1

1

févr

.-1

2

mai

-12

aoû

t-1

2

Application Duration (hrs)

SMART Target 2011 2012 YTD

Critical Incidents resolved within 2 hours 28% 43%

High Incidents resolved within 4 hours 47% 54%

Expedited Service Requests resolved within 1 day 62% 75%

Overall incidents resolved within defined SLOs 86% 88%

Problem Resolution Tickets Opened / Resolved 34 / 23 58 / 51

Savings from Problem Resolution Team Kaizens $99.164 $170,758


13

Results – IT Projects and Enhancements


SMART Target 2011 2012 YTD

Startups budget variance (+/- 10% budget) 58% 63%

Customer enhancement & R&D project budget variance (+/- 10% budget)

74% 72%

Post Go-Live Defect Tracking NA 52%

Enhancement Cycle Time 22-34 Weeks 16-28 Weeks

2012 Initiatives:

• Post go-live defect tracking

• Design Oversight Committee

• Iterative Development Approach

• Improved Forecasting and Demand /

Resource Planning

• Warehouse Management

Enhancement Value Stream Pilot


14

Lessons Learned

• Key Role: Process Owner

• Transition duration

• Reliance on key resources

• “Big Picture” understanding

• Employee engagement

• Change management /

Current-to-future state

• Metrics and measurements



15

On-going Challenges

• Perception of Administrative

excess

• Low-hanging fruit is gone

• Keeping Lean fresh

• Manager engagement and

follow-up

• Metrics and measurements



16

What’s Next?

• Both Value Streams

• Projects &

Enhancements

• Production Support



17

Thank You!!

Mark Lear: [email protected]

Mike Orzen: [email protected]


mailto:[email protected]



[email protected]


18

More Lean IT presentations and videos on

www.lean-it-summit.com

Technology

Mark Lear and Mike Orzen - European Lean IT Summit