Metrics for Agile/Lean

Organizations
Driving the right behavior

David J. Anderson
President, David J. Anderson & Associates
Management Consulting for Knowledge Workers
David J. Anderson & Associates
Management Consulting for Knowledge Workers
Agile
Israel
2010
Agile Management Book

Most concepts in this

presentation are
available in the
book
David J. Anderson & Associates
Management Consulting for Knowledge Workers
Agile
Israel
2010
And New Kanban Book

in my new
book
can be found
Detail information
about Kanban
 David J. Anderson & Associates
Management Consulting for Knowledge Workers
The purpose of this
presentation is to show how
easily gathered non-intrusive
metrics can be used on agile
projects to facilitate quantitative
management and achievement
of Maturity Level 4

Israel
Agile
2010
 David J. Anderson & Associates
Management Consulting for Knowledge Workers
Track WIP
WIP is directly related to Lead Time and Quality

Device Management Ike II Cumulative Flow

240
220
200
180
160
Features

140
120
100
80 Lead Time
60
40
20
0
ar

ar
eb
eb

eb

ar

ar

ar
M

WIP
-M

-M

-M
-F

-F

-F

2-

9-
10

17

24

16

23

30
Time
Inventory Started Designed Coded Complete

Israel
Agile
2010
 David J. Anderson & Associates
Management Consulting for Knowledge Workers
CFD before Kanban Implemented

XIT SE Cumulative Flow

600

WIP peaks at 144 CRs in

December 2003
500

400
Change Requests

Double-
staffing during
300 handover to
India

200

Israel
Agile
2010
100

0
 David J. Anderson & Associates
Management Consulting for Knowledge Workers
CFD during improvement initiative

XIT SE Cumulative Flow

Increased dev : test from

900 4:2 to 5:3

850 Changed dev : test ratio

from 3:3 to 4:2
Zero Backlog
Nov 22nd
Changes 800
start to
take effect

750
Change Requests

700

650

600 Starts to diverge again

(demand > supply)

550

Israel
500

Agile
2010
450

400
 Full chart shows improvement

David J. Anderson & Associates

Management Consulting for Knowledge Workers
over time
XIT SE Cumulative Flow

1000

900

800

700
Change Requests

600

500

400

300

Israel
Agile
200

2010
100

0
David J. Anderson & Associates
Management Consulting for Knowledge Workers
Agile
Israel
2010
Example from Constant Contact (CTCT)
David J. Anderson & Associates
Management Consulting for Knowledge Workers
Agile
Israel
2010
Example from Constant Contact (CTCT)
 David J. Anderson & Associates
Management Consulting for Knowledge Workers
Using Control Charts with CFDs

Cumulative Flow Lead Time Control Chart

240 16
220 14

Calendar Days
200
180 12
160 Intervention #2 : Mar 16 10
Features

140
120 Total
8
scope exceeds
100
Intervention #164 : Feb 23
80
specification limit of 220
60
Manager attends 2 daily
40
20 Features
0
0 meeting

0
10

30

50

70

90
No more WIP, start

11

13

15

17

19
b

eb

eb

ar

ar
ar
ar

ar
Fe

-M

M
M

M
-F

-F
-

-
2-

9-
10

17

24

16

23

30
Features Complete
Time finishing and stop starting
But… Lead Time Lower Limit Upper Limit
Inventory Started Designed Coded
Features
Complete
WIP Inventory Control Chart
WIP Introduction Rate Chart

100
35 90
30 80
25 70
Features
Features

60
20 50
15 40
10 30
20
5
10
0 0

Israel
ar

ar

ar
ar

ar
b

Agile
ar
ar

ar
eb

eb

eb

ar

ar
Fe
Fe

Fe

-M

-M

-M
M

-M

-M

-M

2010
M

M
-F

-F

-F
-

9-
2-

2-

9-
23

30
16
10

17

24

30
10

17

24

16

23
Time Time

Upper limit New WIP Lower Limit Upper limit WIP Inventory Lower Limit
 David J. Anderson & Associates
Management Consulting for Knowledge Workers
More Real Project Data
Iteration 4 Cumulative Flow Iteration 4 Lead Time Control Chart
220 18
200
16

Calendar Days
180
160 14
140 12
Features

120 10
100
80
8
60 6
40 4
20 2
0
0

ct
g

ug

ug

ug

ep

ep

ep
Au
Au

Se

5
-A

-A

-A

15

25

45

55

65

85

95
35

75
-S

-S

-S

4-
2-

9-

6-

10

11

12
16

23

30

13

20

27
Time Features Complete

Inventory Started
SpecialCoded
Designed
Cause EventLinear
Complete
: Sep 1
(Complete)
Lead Time Lower Limit Upper Limit
Iteration 4 WIP Inventory Rate Chart Iteration 4 WIP Inventory Control Chart
Architect with signoff for code
25 review leaves on 3 week 50
20 vacation and his Features 40
Features

15 responsibilities are adopted by 30

20
10 a Chief Programmer
5 10
0
0

Israel
g

ug

ug

ug

ep

ep

ep

ct
Au

Se
ct
ug

ug

ug

ep

ep

ep
g

Agile
O
-A

-A
-A

-S

-S

-S
Au

Se

2010
9-

4-
-S

-S
-A

-A

-A

-S

6-
16

23

30
4-

13

20

27
9-

6-
16

23

30

13

20

27

Time Time

Upper limit New WIP Upper limit WIP Inventory Lower Limit
 David J. Anderson & Associates
Management Consulting for Knowledge Workers
More WIP Control Analysis
Iteration 4 Cumulative Flow Iteration 4 Design WIP Control Chart

220 15
200
180
160
10

Features
140
Features

120
100
80 5
60
40
20
0
0

ug

ug

ug

ep

ep

ep

ct
ct
g

ug

ug

ug

ep

ep

ep

Au

Se
Au
Au

Se

O
-A

-A

-A

-S

-S

-S
-A

-A

-A

-S

-S

-S

4-
2-

9-

4-
6-

9-

6-
16

23

30

13

20

27

27
16

23

30

13

20
Time Time

Inventory Started
Special Cause EventLinear
Designed Coded
: Sep
Complete
1
(Complete)
Upper limit Design WIP
Iteration 4 Unit Test WIP Control Chart
Lower Limit
Iteration 4 Code WIP Control Chart
Architect with signoff for code
20 review leaves on 3 week 40
35
15 vacation and his 30

responsibilities are adopted by 25

Features
Features

10 20
a Chief Programmer 15
5 10
5
0 0

Israel
Agile
ug

ug

ep

ep

ep
g

ug

ct

2010
g

ug

p
ug

ug

ep

ep

ep
Au

Se

ct
O

Au

Se
-A

-A

-S
-A

-S

-S

O
-A

-S
-A

-A

-S

-S
4-
9-

6-
23

30

27
16

13

20

4-
9-

6-
16

23

30

13

20

27
Time Time

Upper limit Code WIP Lower Limit

Upper limit Unit Test WIP Lower Limit
David J. Anderson & Associates
Management Consulting for Knowledge Workers
Agile
Israel
2010
BBC Worldwide Bug Rates
David J. Anderson & Associates
Management Consulting for Knowledge Workers
Agile
Israel
2010
BBC Worldwide Days Blocked
David J. Anderson & Associates
Management Consulting for Knowledge Workers
Agile
Israel
2010
Mattias Skarin
11-05-06
 David J. Anderson & Associates
Management Consulting for Knowledge Workers
Velocity Control Charts

Completion Velocity Chart

40

30 UCL 29.2

20
Completion
Velocity
UCL
10 CL 7.206896552+2 Sigma
+1 Sigma

0
V
cy m
C
letin
p
o

-10
LCL -14.8
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
-20
Date

Israel
Agile
2010
 27

Agile
8.

David J. Anderson & Associates

Management Consulting for Knowledge Workers
Israel
2010
Velocity Range Chart

Completion Velocity Range

RUCL

CL

5
30

25

20

15

10
Completion Velocity Range
David J. Anderson & Associates
Management Consulting for Knowledge Workers
Agile
Israel
2010
Iteration 1 Burndown
David J. Anderson & Associates
Management Consulting for Knowledge Workers
Agile
Israel
2010
Iteration 1 Cumulative Flow
David J. Anderson & Associates
Management Consulting for Knowledge Workers
Agile
Israel
2010
Burndown versus Cumulative Flow Comparison
David J. Anderson & Associates
Management Consulting for Knowledge Workers
Agile
Israel
2010
Iteration 2 Burndown
David J. Anderson & Associates
Management Consulting for Knowledge Workers
Agile
Israel
2010
Iteration 2 Cumulative Flow
David J. Anderson & Associates
Management Consulting for Knowledge Workers
Agile
Israel
2010
Burndown versus Cumulative Flow Comparison
 David J. Anderson & Associates
Management Consulting for Knowledge Workers
Cumulative Flow in a kanban (pull) system

Business
encouraged to
re-triage backlog
CR Only CR, Bugs and PDUs

Israel
WIP growth due to additional

Agile
2010
resource allocation (good) and
some sloppy management of
kanban limits (bad)
David J. Anderson & Associates
Management Consulting for Knowledge Workers
Agile
Israel
2010
Issue Management Cumulative Flow
 David J. Anderson & Associates
Management Consulting for Knowledge Workers
Revisiting Cumulative Flow

CR Only
Lead Times are lengthening
again due to environment
rebuild and business
requested delay waiting for
expedite request

38 Days
35 Days
43 Days
53 Days
73 Days

Israel
Agile
2010
David J. Anderson & Associates
Management Consulting for Knowledge Workers
Agile
Israel
2010
Executive Dashboard
 David J. Anderson & Associates
Management Consulting for Knowledge Workers
Due Date Performance Detail

Lead Time Distribution MARCH

2.5
2
# CRs

1.5
1
0.5

101
106
11

41

51

81
86
91
16
21
26
31
36

46

56
61
66
71
76

96
1
6

Days

LeadTime Distribution

3.5 APRIL
3
CRs & Bugs

2.5

2
Majority of CRs range 30 -> 55
1.5 Outliers
1

0.5

Israel
6

8
5

5
2

9
1

3
0

4
1

Agile
1

2010
Days
David J. Anderson & Associates
Management Consulting for Knowledge Workers
Agile
Israel
2010
Parking Lot Chart
David J. Anderson & Associates
Management Consulting for Knowledge Workers
Agile
Israel
2010
dja@djandersonassociates.com
http://www.channelkanban.com/
Thank you!
http://www.limitedwipsociety.org
Yahoo! Groups: kanbandev
http://www.kanban101.com
 David J. Anderson & Associates
Management Consulting for Knowledge Workers
About…

David Anderson is a thought leader in

managing effective software teams. He leads
a consulting firm dedicated to improving
economic performance of knowledge worker
businesses – improving agility, reducing
cycle times, improving productivity and
efficiency in technology development.
He has 25+ years experience in the software
industry starting with computer games in the
early 1980’s. He has led software teams
delivering superior productivity and quality using
innovative agile methods. He developed MSF
for CMMI Process Improvement for Microsoft.
He is a co-author of the SEI Technical Note,
CMMI and Agile: Why not embrace both!
David is the author of 2 books, Agile
Management for Software Engineering –
Applying the Theory of Constraints for Business
Results, and Kanban – Successful Evolutionary
Change for your Technology Business.
David is a founder of the Lean Software &

Israel
Systems Consortium, a not for profit

Agile
2010
dedicated to promoting greater professionalism
and better economic outcomes in our industry.
Email… dja@djandersonassociates.com