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Thinking Lean

  Thinking Beyond Lean, Michael A. Cusumano and Kentaro Nobeoka, Free Press, 1998.

The subtitle is "How multi-project management is transforming product development at Toyota and other companies," and that pretty much says what it is. Once you have lean approaches, how do you balance your whole set of product lines? Do you treat them as independent projects, or transfer technology between them? The authors suggest that this should be a considered decision, and also suggest that a concurrent transfer need not be as problematic as you might expect (though it can be carried too far). This is definitely not the first book you should read on the subject of "lean," but it does address a real concern, described in the context of the automobile industry.
 (Reviewed May, '03)


  The Goal: A Process of Ongoing Improvement, Eliyahu Goldratt and Jeff Cox. North River Press, 1992 (2nd rev. edition).
A combination love story and manufacturing treatise. Inventory and high utilization are signs of sub-optimizing the whole system.
(Reviewed Dec., '02)

 


Theory of Constraints - Goldratt   Theory of Constraints: What is this thing called Theory of Constraints, and how should it be implemented? Eliyahu Goldratt. North River Press, 1990.
Let me give my rare thumbs down review (usually I just ignore the ones I don't like). I enjoyed The Goal a lot, but was totally disappointed by this book. Thirty of the 160 pages are copied from that book. The rest reads like an ad, with little technical material. Add in poor copy-editing and you have a disappointing combination.
(Reviewed Jan., '04)
  Product Development for the Lean Enterprise, Michael N. Kennedy. Manning, 2004.

Toyota's lean manufacturing gets a lot of attention. But there's also a Toyota approach to product development that's less well known (though Mary Poppendieck does talk about it). This book uses a "business novel" plus discussion approach which I found unnecessary. But the story did bring out key ideas: knowledge-based development, set-based concurrent engineering, and more. (Reviewed May, '05)


Theory of Constraints - Goldratt   Office Kaizen: Transforming Office Operations into a Strategic Competitive Advantage, William Lareau. ASQ, 2003.
This book applies lean ideas to office work. Many of its ideas will be familiar to people in agile, but applied in the non-software world: charters, daily work group meetings, visual displays, and so on. Other ideas may feel less comfortable, e.g., numerical assessment. I particularly like that the explanation of waste has a number of categories added to cover intellectual work, and the attention to the challenges of transforming organizations.
(Reviewed Jan., '05)
Things that Make Us Smart, by Donald A. Norman
 
  The Toyota Product Development System, James M. Morgan and Jeffrey K. Liker, Productivity Press, 2006.

Toyota's lean manufacturing system has had a lot of press, but lean influences their product development approach as well. This book emphasizes the system aspects of their approach. Along the way it explores a variety of practices and tools: set-based approaches, use of a chief engineer, alignment, and more. I preferred this book over Kennedy as it feels both broader and deeper. (Reviewed Nov., '06)


 

Lean Software Development: An Agile Toolkit. Mary Poppendieck and Tom Poppendieck. Addison-Wesley, 2003.

This book considers software development from the perspective of lean manufacturing, as popularized by Toyota. In lean approaches, there is a sense in which there is a constant striving to reduce all forms of waste, and by delaying decisions as long as possible (but no longer), we can reduce our need for inventory in all its forms.

The book is a toolbox for software managers - 22 tools in all, including such things as "The Last Responsible Moment," "Iterations," and "Leadership." Though they have synergy, you can read most of them fairly independently.

I recommend this book; in addition to a set of useful tools, it will give you a way to tie ideas from agile software development to the broader trends in lean development. (Reviewed August, '03)



 
  Managing the Design Factory, Donald Reinertsen. Free Press, 1997.
Reinertsen comes at managing design from the manufacturing product development side, but a lot of his tools seem appropriate for software product development as well.

"When we begin a design we make investments in creating recipes. However, a recipe does not generate profit until it is completed. During the time the recipe is incomplete we are holding an investment that is earning no money. We call this investment design-in-process inventory (DIP)." (p.11) (Sounds similar to software-in-process, no?)

The book is a set of tools useful in managing the challenge of DIP.

First set: thinking tools.
  • Economic models let you make rational profit-seeking decisions.
  • Queueing theory can show you how smaller batch sizes improve your turnaround.
  • Information theory can demonstrate how "iterations generate early information."
  • Systems theory shows the value of feedback.

Second set: action tools.

  • Organizational structure trades efficiency vs. speed. "Colocation is the closest thing to fairy dust that we have to improve communications on the development team."
  • Design the design process: match it to the economic objectives. "... technical risk can be substantially reduced by pulling system integration to an earlier phase of the process." "In
    the uncertain world of product development the best product portfolios will have a mix of large and small batch size projects."
  • Product architecture: modularity, segregating variability, interface management
  • Product specification: understand the customer, create a good specification
  • Use the right tools
  • Measure the right things. "Drive metrics from economics." Controls can be focused on expense, cost, performance, or speed, at the project or business level.
  • Decision trees, testing can help manage market or technical risk.

Part 3: next steps - section headers are: [quoted]

  • Do your math
  • Use decision rules
  • Pay attention to capacity utilization
  • Pay attention to batch size
  • Respect variability
  • Think clearly about risk
  • Think systems
  • Respect the people
  • Design the process thoughtfully
  • Pay attention to architecture
  • Deeply understand the customer
  • Eliminate useless controls
  • Get to the front lines
  • Avoid slogans [Yes, he knows.]

I recommend this book wholeheartedly; it isn't the whole answer, but it's a great contribution to "what does it mean to manage an agile software team?" (Reviewed Dec., '02)


  Results from the Heart: How Mini-Company Management Captures Everyone's Talents ..., Kiyoshi Suzaki, Free Press, 2002.

It's kind of hard to classify this book. It's from a lean manufacturing consultant, but it's geared to the whole organization. Suzaki argues that the "cell" metaphor used in manufacturing should be extended to the whole organization, and that you organize large companies as interlocking mini-companies. A key to the approach is what he calls "Glass Wall Management," which puts all the indicators, products, defects, etc. - everything a team does - in a war room setting. The goal of this is to transform the way people look at their work. This is an excellent and inspiring book.
 (Reviewed March, '03)


Lean Solutions, by Womack and Jones
 
  Lean Solutions, James P. Womack and Daniel T. Jones. Free Press, 2005.

These are the authors of The Machine that Changed the World. (The "machine" was lean production.) In this book, they expand on the idea of "lean consumption." Their idea is that if consumers and businesses can better share information about current and future wants and needs, companies can build a supply chain that will have a lot less waste, and be simpler for everybody. This book is the background for their March, 2005 article in Harvard Business Review, expanding it with a number of examples in different industries. (Reviewed Sept., 2005)



 
  The Machine That Changed the World: The Story of Lean Production, James P. Womack, Daniel T. Jones, and Daniel Roos. HarperCollins, 1991.

This book is the story of lean production in the automobile industry, which the authors see as the successor of mass production, which was the successor of the craft industry. Taiichi Ohno of Toyota is one of the key figures associated with this transformation.

"The truly lean plant has two key organizational features: it transfers the maximum number of tasks and responsibilities to those workers actually adding value to the line, and it has in place a system for detecting defects that quickly traces every problem, once discovered, to its ultimate cause." (p.99)

They go on to describe the "five whys" - keep asking why enough times to get to root causes.

Techniques of Lean Design

  • Leadership: "Shusa" - large project leader. The (large, cross-functional) team lead has people reporting to them, i.e., they're in charge, not "coordinators."
  • Teamwork: tightly knit teams
  • Communication: Confront conflicts directly. The team pledges to follow the group's decisions. "All the relevant specialties are present, and the shusa's job is to force the group to confront all the difficult tradeoffs they'll have to make to agree on the project."
  • Simultaneous Development: anticipation and approximation. Usually turns out OK, but if the anticipation is wrong they put the correction on a fast track.

"But what is it about this system [intimate relationship with suppliers] that allows an interchange of such sensitive information to take place? The answer is simple. The system works because a rational framework exists for determining costs, price, and profits. This framework makes the two parties want to work together for mutual benefit, rather than look upon one another with suspicion." (p.148)

Lean supply uses a cost tracking approach: establish a target price, then work backwards to figure out how to make it with reasonable profit for suppliers. "In other words, it is a 'market price minus'
system rather than a 'supplier plus cost' system." Two additional techniques are value engineering (done by working backward to identify the cost of each stage of production) and value analysis (cost reduction by cutting cost-critical steps).

"When setup times have been honed [...] and where production runs are frequent, short, and uninterrupted, cost estimators do not have to wait around for days or weeks to average the performance over several
production runs." (p.149)

Lean production: "This mode of production achieves its highest efficiency, quality, and flexibility when all activities from design to assembly occur in the same place. As a senior Honda executive recently remarked, 'We wish we could design, engineer, fabricate, and assemble the entire car in one large room, so that everyone involved could be in face-to-face contact with everyone else.'"
                
Automobile production is clearly not XP, but the parallels are interesting. (Reviewed Nov., '02)


 

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Copyright 1994-2006, William C. Wake - William.Wake@acm.org