Presented by Mark Strange, CSM, PMP, MBA 651-235-7883 Scrum: WWDD? (What Would Deming Do?) Orlando Scrum Gathering March.

Presented by Mark Strange, CSM, PMP, MBA mstrange@woodcliffconsulting.net 651-235-7883 Scrum: WWDD? (What Would Deming Do?) Orlando Scrum Gathering March 9, 2010 Dr. W. Edwards Deming 1900 - 1993

© 2010 Wood Cliff Consulting Inc, All Rights Reserved Software Development Challenges We struggle with release dates. We go over budget. We build features that our customers do not want. We spend more and more on increased inspection, but somehow the above problems get worse, not better. These issues are nearly identical to the issues faced by American manufacturing in the 1960s and 1970s!

© 2010 Wood Cliff Consulting Inc, All Rights Reserved Scrum… is based on Deming’s “Plan – Do – Check – Act” concept. brings us into closer alignment with our customers. helps us build only features that are desired. But we continue to… struggle to get all testing done within the sprint. allow testing to “accumulate” against our better judgment. spend more and more $$$ on inspection, without a corresponding decrease in overall costs. struggle to change management behavior, which is critical for successful Scrum implementation.

© 2010 Wood Cliff Consulting Inc, All Rights Reserved Today’s Objectives *Today’s objectives are: Objective 1: Briefly review Deming's management principles and their impact on Japanese and American business. Objective 2: Discuss ways in which Scrum does and does not align software development with Deming's principals. Objective 3: Discuss ideas for improving software quality and decreasing our reliance on end-state regression testing based on Deming's teachings.

© 2010 Wood Cliff Consulting Inc, All Rights Reserved Dr. W. Edwards Deming - Background William Edwards Deming (10/14/1900 – 12/20/1993) Made a significant contribution towards the rise of Japan’s economic power beginning in the 1950s Deming’s message to Japan: “Improving quality will reduce expenses while increasing productivity and market share.”

© 2010 Wood Cliff Consulting Inc, All Rights Reserved Dr. W. Edwards Deming – Background (continued) Began working with Ford in 1981. By 1986, Ford was the most profitable American auto company. Stressed new management concepts and the use of statistical techniques to improve quality Taught the concepts of “special cause” and “common cause” variation in a system. Was strongly against the use of performance reviews to “rank” people. All people are different, and their performance is largely dictated by the system they work in (the responsibility of management)

© 2010 Wood Cliff Consulting Inc, All Rights Reserved Deming’s Definition of Quality “Quality” = Result of Work Efforts Total Cost Deming: Focus primarily on quality, and quality tends to improve and costs tend to decrease over time. Deming: Focus primarily on cost, costs tend to rise and quality falls over time. Software teams tend to focus on “results” with little or no regard for cost. Management teams tend to focus on “cost” instead of focusing on improving the system. Scrum teams focus on improving quality, but their improvement efforts are mostly qualitative.

© 2010 Wood Cliff Consulting Inc, All Rights Reserved Some Questions about Software Quality How should we use the traditional QA function (or should we use it at all)? Should we measure defects? If so, how? What metrics should we keep, and how should we use them to make decisions? What role does management play in software quality?

© 2010 Wood Cliff Consulting Inc, All Rights Reserved Measuring Defects by Sprint – A Better Approach Sprint12345678910 New Defects2524262192532153524 Story Points40354233153750235641 Defect / Story Pt0.630.690.620.640.600.680.640.650.630.59

© 2010 Wood Cliff Consulting Inc, All Rights Reserved Control Charts Limits of Variation attributable to the system = x ± 3 √ Variance Upper Limit Lower Limit = x ± 3 * (Std Deviation) Upper Limit Lower Limit ) / n = x ± 3 √ ∑ ( x – x ) / n Upper Limit Lower Limit 2 n

© 2010 Wood Cliff Consulting Inc, All Rights Reserved In our example… x = mean of defect counts = 0.634 Variance = mean of squares of deviations = 0.00087 1 Standard Deviation = 0.029 2 Standard Deviations = 0.059 3 Standard Deviations = 0.088 Sprint12345678910 Defect / Story Pt 0.630.690.620.640.600.680.640.650.630.59 ) ( x – x ).0001.0026.0002.0000.0012.0017.0000.0003.0001.0024 n 2

© 2010 Wood Cliff Consulting Inc, All Rights Reserved Control Limits = Upper Limit Lower Limit 0.723 0.546 = Upper Warning Lower Warning 0.693 0.575 ) / n = x ± 3 √ ∑ ( x – x ) / n Upper Limit Lower Limit 2 n ± 2 Standard Deviations ± 3 Standard Deviations = Upper Warning Lower Warning 0.664 0.605 ± 1 Standard Deviations

© 2010 Wood Cliff Consulting Inc, All Rights Reserved Scenario 4 3σ3σ 2σ2σ 1σ1σ -1σ -2σ -3σ All points +/- 1σ : Recalculate Control Limits Fear is another possible cause. See p. 264, “Out of the Crisis”

© 2010 Wood Cliff Consulting Inc, All Rights Reserved Deming’s 14 Points (from “Out of the Crisis” – 1982) 1.Create constancy of purpose toward improvement of product and service, with the aim to become competitive and stay in business, and to provide jobs. 2.Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. 3.Cease dependence on inspection to achieve quality. Eliminate the need for massive inspection by building quality into the product in the first place. 4.End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move towards a single supplier for any one item, on a long-term relationship of loyalty and trust

© 2010 Wood Cliff Consulting Inc, All Rights Reserved Deming’s 14 Points (continued) 5.Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. 6.Institute training on the job. 7.Institute leadership (see Point 12 and Ch. 8 of "Out of the Crisis"). The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers. 8.Drive out fear, so that everyone may work effectively for the company. (See Ch. 3 of "Out of the Crisis")

© 2010 Wood Cliff Consulting Inc, All Rights Reserved Deming’s 14 Points (continued) 9.Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. 10.Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force. 11.a. Eliminate work standards (quotas) on the factory floor. Substitute leadership. b. Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.

© 2010 Wood Cliff Consulting Inc, All Rights Reserved 12.a. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. b. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia," abolishment of the annual or merit rating and of management by objective (See Ch. 3 of "Out of the Crisis"). 13.Institute a vigorous program of education and self-improvement. 14.Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.

© 2010 Wood Cliff Consulting Inc, All Rights Reserved Deming’s 14 Points and Scrum – Point #2 2.Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. “We can no longer tolerate commonly accepted levels of mistakes [and] defects.” (Deming) Scrum urges us to constantly improve, but we must challenge ourselves to improve the system. (Strange) “The cost of living varies inversely with the amount of goods and services that a given amount of money will buy. Delays and mistakes raise costs. Alternative plans in expectation of delays are costly.” (Deming) In software development, even on most scrum teams, we expect a certain level of defects and plan for large amounts of testing. We should instead challenge our quality professionals to show us how to improve quality. (Strange)

© 2010 Wood Cliff Consulting Inc, All Rights Reserved Deming’s 14 Points and Scrum – Point #3 3.Cease dependence on inspection to achieve quality. Eliminate the need for massive inspection by building quality into the product in the first place. “Inspection to improve quality is too late, ineffective, costly...Quality comes not from inspection, but from improvement of the production process.” (Deming) The SDLC is our production process. We should never expect and accept defects from this process. (Strange) “Rework raises costs. No one likes to do repair work. A pile of items set aside for rework grows and grows, and too often, in desperation downstream for parts, are not repaired at all, but are commandeered and used just as they are.” (Deming) In software development, even on most scrum teams, we expect a certain level of defects and plan for large amounts of testing. We should instead challenge our quality professionals to show us how to improve quality. (Strange)

© 2010 Wood Cliff Consulting Inc, All Rights Reserved 4.End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move towards a single supplier for any one item, on a long-term relationship of loyalty and trust. “We can no longer leave quality, service, and price to the forces of competition for price alone – not in today’s requirements for uniformity and reliability…Without adequate measures of quality, business drifts to the lowest bidder, low quality and high cost being the inevitable result.” (Deming) We need to be careful about outsourcing, particularly in distributing software teams across internal and external resources. (Strange) Deming’s 14 Points and Scrum – Point #4

© 2010 Wood Cliff Consulting Inc, All Rights Reserved 8.Drive out fear, so that everyone may work effectively for the company. (See Ch. 3 of "Out of the Crisis") “No one can put in his best performance unless he feels secure…Secure means without fear, not afraid to express ideas, not afraid to ask questions.” (Deming) Everyone on the Scrum team must feel free to express ideas, make suggestions, and point out systemic problems. (Strange) Deming’s 14 Points and Scrum – Point #8

© 2010 Wood Cliff Consulting Inc, All Rights Reserved 9.Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. “A new president came in, talked with the heads of sales, design, manufacturing, consumer research, and so forth. Everybody was doing a superb job, and had been doing so for years. Nobody had any problems. Yet somehow or other the company was going down the tube. Why? The answer was simple. Each staff area was sub-optimizing its own work, but not working as a team for the company.” (Deming) Watch out for sub-optimization, particularly on large projects using distributed Scrum teams (Scrum of Scrum). (Strange) Deming’s 14 Points and Scrum – Point #8

© 2010 Wood Cliff Consulting Inc, All Rights Reserved 14.Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job. "Massive training is required to instill the courage to break with tradition. Every activity and every job is a part of the process.“ Scrum is a major change in philosophy for most companies, just as Deming’s principles were a major change for the manufacturing companies he worked with. It is important for us to transform the entire organization, including upper management, in order to be successful. Deming’s 14 Points and Scrum – Point #14

© 2010 Wood Cliff Consulting Inc, All Rights Reserved About the Speaker Mark Strange, CSM, PMP, MBA is an IT management consultant with a background in engineering, quality management and software development. He has served in various IT management and leadership roles, most recently as Director of Software Development and Director of Data Warehousing. Mark recently began an independent consulting practice in the Twin Cities focusing on training, coaching and implementing Agile/Scrum for software development organizations. He is currently working on a large Scrum implementation at Ceridian Corporation in Bloomington, Minnesota. Mark holds a Bachelor of Science in Mechanical Engineering (emphasis in manufacturing) from the University of Minnesota Institute of Technology and an MBA from the Carlson School of Management. Mark is a Certified Scrum Master and a Project Management Professional, and is also an active member of Toastmasters International Speaking Club.

Presented by Mark Strange, CSM, PMP, MBA 651-235-7883 Scrum: WWDD? (What Would Deming Do?) Orlando Scrum Gathering March.

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Presented by Mark Strange, CSM, PMP, MBA 651-235-7883 Scrum: WWDD? (What Would Deming Do?) Orlando Scrum Gathering March.

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