1. Execution Excellence Using Kanban Metrics to show Value at ATK Nov 19 th, 2014 Brought to you by:

2. Agenda:  Introductions  A Quick word from the Sponsor  Execution Excellence Case Study Presentation  Panel Discussion  Audience Q&A

3. Some Housekeeping  Questions will be taken via Q&A box. Please enter your question in the Q&A box on the right side of your screen.  Questions will be taken grouped by topic in the order received  The webinar will be recorded. Slides and the recording will be made available after the meeting.

4. Today’s Speakers  Gary Perkerwicz  ATK IT  Dragos Dumitriu  Lean and Agile Practice Director  CC Pace  Mahesh Singh  Co-founder, SVP – Product, Digité/ SwiftKanban  Jim Gawtry  ATK IT

5. Quick word from the Sponsor!  Digité, Inc. - Pioneer in Web-based Collaborative Products/ Solutions for Geographically Distributed Teams  Headquartered in Cupertino, CA  Over 300,000 users in the Americas, Europe, Asia/ Pacific  Products that cover Lean/ Kanban, Agile ALM, Project/ Portfolio Management  SwiftKanban is our flagship Lean/ Kanban product

6. SwiftKanban Visual Management – Software Development

7. SwiftKanban Visual Management – Marketing

8. SwiftKanban Visual Management – Planning the Thanksgiving Party!

9. SwiftKanban - Analytics

10. Key Customers 10

11. About CC Pace  Founded in 1980, CC Pace is a privately held business and IT consulting company headquartered in Fairfax, VA.  It is one of the nation’s most trusted Lean and Agile consulting companies, having pioneered and perfected Agile product development, coaching, and training since the movement’s earliest beginnings. Their Kanban training and coaching offerings are the most comprehensive in North America in both public and private sectors.  In addition to their Agile services, CC Pace also provide Financial Services Consulting and IT Staffing services.

12. CC Pace by the numbers…  1999 – CC Pace implements our first Agile Project using XP and adopts Agile as our SDLC  2004 – CC Pace develops Agile training courses and establishes an Agile coaching practice, at our clients request,  2013 – Trained over 10,000 individuals and lead over 400 classes  500+ – The number of customized classes we’ve lead  14 – The number of new classes we have created outside of our certified offerings  80% – The percentage of business that comes to us by referral Our trainers have an average of over 10 years of experience working in an agile environment and over 23 years in the industry

13. Over to Gary and Jim ….

14. Disclaimer: it is against company policy to endorse products. So nothing we report here should be considered an endorsement of SwiftKanban. When we report for example, that the rapid feedback cycles made possible with an electronic board accelerated our improvement, we are simply reporting the facts. What we achieved

15. IT DEMAND DevelopmentAcceptance Testing Human Resources Note: HR team does not have direct access to electronic board. We do their updates during standups. A new level of excellence In out last episode….

16. Orientation to the Cumulative Flow Diagram (CFD) For Enhancements (less than 3 weeks) Over time, the cumulative number of cards: Time Card Count Backlog WIP Throughput In our backlog (Demand) Our team is working on (WIP) Our team has completed (Throughput)

17. Enhancements (less than 3 weeks) Backlog 44 Backlog 33 Backlog decreased 25% (44 to 33) WIP decreased 68% (31 to 10 includes Moved To Production) But Throughput slowing in mid June-July… Why? WIP 31 WIP 10 Slope trending downward

18. Enhancements (less than 3 weeks) Throughput slowing in mid June-July due to temporary policy change: freeze production. Production freeze Weekly Monthly Throughput accelerates after policy lifted. Have we reached the high-throughput operating point? Feb-Aug: 26,54,41,43,39,23,35

19. Enhancements (less than 3 weeks) Monthly Before April, there is more wait time than work time, Blocked time +Work timeWait time +Cycle time = In Feb Blocked time+ Work time+ Wait timeCycle time = Blocked 0 + Worked 3 + Wait 9 Cycle Time = 12 Starting in June, wait time swings back. It is greater than work time. Wait time > work time In April and May there is more work time.

20. Enhancements (less than 3 weeks) Some waiting and blocking may not be avoidable. How much waiting CAN we avoid? Monthly Discovery Costs What are the Discovery Costs? Is there a benefit to switching contexts? Use Flow Efficiency to chart… Can they be lowered? Should they be lowered?

21. Enhancements (less than 3 weeks) What percentage of Overall Cycle Time is your team actually working on cards? Monthly Flow Efficiency increased from 23% to 43+%. 23% 45%

22. Enhancements (less than 3 weeks): Game Film shows Pull patterns By the second day we see several cards skip Analysis.

23. Enhancements (less than 3 weeks): WIP Overage After June we see the WIP limit exceeded signal fade. It flares up again in October. Dev and Test exceeding WIP, often with capacity in Test The RED BAR signals WIP limit exceeded!

24. Enhancements (less than 3 weeks): Blocks A rash of blocks during April Year end. What happened?

25. Enhancements (less than 3 weeks): Backward Flow Throughout the playback we see cards flowing backward. We have flow and undertow. Is it good? Is it bad? Is there too much? Should we see more?

26. Enhancements (less than 3 weeks): Adjacency Matrix What is the next pain point or opportunity for improvement? 12 cards went back from Test In Progress to Development In-Progress. How do we visualize the evolution of our practice? 4 cards went forward from Input Queue to Moved to Production.

27. How we are continuing to improve

28. Visualize Limit WIP Manage FlowExplicit Policies Feedback Loops (Kata) Improvements 1 10+ coach teamOps review 5+ 1 1 7 LRM proto kanban multi Ops review coached Model-driven Impl deepening Observed evo NPS 2,3,4 HR 11/13/201220 11/01/201319.5 08/21/201431.5 6,5.5,10 3,2,4 3,4,7 3,3,4.5 3,2,2

29. How we did it

30. Goals Value Stream Control Input Exit Point Work Item Types Demand Analysis Define Rule Book (WPDCL) Create Board Electronic System Daily Standups Ops Review Educate Team

31. Q&A  Please ask a question using the Q&A Box on the right side of your screens.  Host will ask questions in the sequence in which question is received.  Thank you for your help and cooperation!!

32. Thank You! Gary Perkerwicz Gary.perkerwicz@atk.com Jim Gawtry Jim.gawtry@atk.com Dragos Dumitriu ddumitriu@ccpace.com www.ccpace.com Visit us at – www.swiftkanban.com Write to us at – sales@digite.com SwiftKanban @swiftkanban Mahesh Singh mahesh@digite.com/ mahesh@digite.com/ @maheshsingh