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Essential Kanban Condensed Guide v0.9.3
Essential Kanban Condensed Guide v0.9.3
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Some feedback from initial drafts of the Condensed Guide requested more detail
or diagrams to explain the key concepts. For the most part we have prioritized
brevity over completeness in this guide, because the full guide is where the further
explanation will appear. However since this draft is being distributed for review
before the full guide is available, we have included some material here that will in
due course migrate to the full guide. This will eventually enable the Condensed
Guide to be the short summary of concepts in the briefest form.
Conventions
The Glossary contains the definitions of a number of commonly used terms that
are used in Kanban. At least the first time a term in the Glossary appears in the
text of the Guide it is highlighted, e.g. Delivery Rate.
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What is Kanban?
Kanban is a method for defining, managing and improving services
delivering knowledge work, such as professional services, creative
industries and the design of physical and software products.
The visual signals are referred to as kanbans1. They prevent too much or
too little work entering the system, thereby improving the flow of value to
customers. The kanbans, and the policies associated with them, create a
pull system, where work is “pulled” into the schedule when other work is
completed, rather than “pushed” when new work is requested.
Kanban Values
Kanban is a values-led method. It is motivated by the belief that respecting
all the individuals that contribute to a collaborative enterprise is necessary,
not only for the success of the venture, but for it to be worthwhile at all.
1 The plural of kanban in Japanese is kanban, however we use the plural “kan-
bans” in this English text.
2 (Burrows, 2014)
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The time that an item is in process between the commitment and delivery
points is referred to as the Lead Time for the item.
The number of items that are within the system under consideration at any
point in time is known as the Work in Progress or WiP.
The rate at which items are being delivered is known as the Delivery
Rate. This is calculated from the reciprocal of the time between the latest
delivery and the one before or, for an average Delivery Rate over a given
period, by dividing the number of deliveries by the length of the time period.
In a flow system that is not trending4 (and in which all items that are
selected are delivered) there is a simple relationship between the average
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We may wish to use Little’s Law to examine the flow metrics of other
parts of a kanban system - not just between the commitment and delivery
points - in which case rather than Lead Time, use Time in Process or
TiP6 for the period an item is in the process under consideration. More
specific terms such as Time in Development, Time in Test, Time in System
or Time in Queue may also be used.
The term Throughput is used rather than Delivery Rate if the end of the
process under consideration is not the delivery point7.
1. Visualize
2. Limit work in progress
3. Manage flow
4. Make policies explicit
5. Implement feedback loops
6. Improve collaboratively, evolve experimentally
5 (Little, 1961)
6 (Maccherone, 2012). Note some authors use Cycle Time (CT2) for this quan-
tity. See the Glossary for the definitions of CT1 and CT2, and an explanation of
why Cycle Time is not a recommended term in the Kanban method.
7 A further distinction may be drawn between Throughput and Delivery Rate
even if the point at which it is measured is identical. Throughput includes all items
that depart from the system under consideration, whether they were delivered,
aborted/discarded, or moved back to a point prior to the system under consider-
ation.
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Visualize
Design of the card or panel that describes the work item is another
important aspect of visualization. It is also vital to highlight visually when
items are blocked by dependencies on other services or for other reasons.
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Manage flow
The flow of work in a kanban system should maximize the delivery of value,
minimize lead times, and be as smooth (predictable) as possible. These
are sometimes conflicting goals and, since the deliverables are usually
complex, empirical control through transparency, inspection and adaption
is required. Bottlenecks, where flow is constrained by one particular sub-
process, and blockers, where there are dependencies on other services,
are particularly important to take note of and manage
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WiP Limits are one type of policy. Others include capacity allocation and
balancing, the “Definition of Done” or other policies for work items exiting
stages of a process, and replenishment policies for the selection of new
work when capacity is available. The use of classes of service is another
policy example.
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to a single service)
5. Replenishment Meeting: for moving items over the commitment
point, and overseeing the preparation of options for selection in
the future
6. The Kanban Meeting: the (usually) daily coordination, self-
organization and planning review for those collaborating to deliver
the service. It often uses a “stand-up” format to encourage a short
energetic meeting with the focus on work item completion and
unblocking issues.
7. Delivery Planning Meeting: monitoring and planning deliveries to
customers
Implementing the seven cadences does not imply adding seven new
meetings to an organization’s overhead. Instead the reviews and meetings
should initially be part of existing meetings and adapted in context to fulfill
their goals. At smaller scale, a single meeting may cover more that one of
the cadences.
There are ten feedback loops in the cadence network diagram, showing
information flow and requests for change between the reviews. These
facilitate decision-making at each level.
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All through this process you will be applying Kanban, even while the
characteristics of your systems are barely different from your starting
point. Clearly this means there are organizations applying Kanban that do
not yet even have a kanban system (a system that limits work in progress
with visual signals), or whose kanban systems have not yet matured,
for example to an effective balancing of demand with capability through
feedback loops, or optimal value delivery through classes of service.
9 (Carmichael, 2013)
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For these reasons the Kanban method defines an approach for introducing
Kanban (STATIK) and a test for assessing your progress with Kanban (the
Litmus Test).
STATIK is applicable to just one service. When more than one service
has been set up, Kanban practices and cadences are applied to balance
demand and flow across the multiple services, and continually improve.
The ordering of the steps may vary in practice and it is normal to revisit
steps in the pursuit of further improvement.
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2. Service Delivery
a. Does the relationship with the customer allow commitments
to be made based on a service level agreement or
understood service level expectation?
b. Are these commitments based on probabilistic
forecasting of the kanban system’s observed Lead Times
and Delivery Rates?
4. Management behavior
a. Is management behavior consistent with the deferred
commitment pull system approach of Kanban?
b. Are WiP limits respected by management at system level,
not just at personal level (such as per person WiP limits to
reduce multi-tasking)?
Kanban Roles
Kanban is and remains the “start with what you do now” method, where
initially no one receives new roles, responsibilities or job titles. So there
are no required roles in Kanban and the method does not create new
positions in the organization. However two roles have emerged from
common practice in the field and are now defined in the method itself. It is
the purpose of the roles that is important, rather than assigning someone
to a job title, so it may be helpful to think of the roles as “hats” people wear
in carrying out these functions.
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Flow systems can provide a wide range of flow metrics which are important
to the managers of these systems12. The minimum starting point is to
collect data on Lead Time, Delivery Rate, WiP and cost (usually primarily
the effort in person-days consumed by the service).
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Once kanban systems are established for one or more services, consider
three dimensions in which they can grow in your organization.
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In addition to these sources, the full guide (Anderson, 2016a) has a more
extensive bibliography of the many books describing current Kanban
practice and the principal sources and precursors of the Kanban method.
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References
Anderson (2010) David J. Anderson, Kanban – Successful Evolutionary
Change For Your Technology Business, Blue Hole
Press.
Burrows (2014) Mike Burrows. Kanban from the Inside: understand the
Kanban Method, connect it to what you already know,
introduce it with impact, Blue Hole Press.
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Shook (2014) John Shook and Chet Marchwinski, eds. Lean Lexicon:
A Graphical Glossary for Lean Thinkers. 5th Edition.
United States: Lean Enterprise Institute, Inc.
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Glossary
Abort: To discard a work item after the commitment point.
Alternatives: abandon.
Related terms: commitment point, discard
Blocker clustering: A risk analysis technique using records of issues that have
blocked work items, and grouping them by common cause.
Classes of service: categories of work item that may warrant different policies
for selection and processing based on different relative value, risk or cost of
delay.
Cost of delay: a measure of the impact of delaying an item14. May also refer to
cost of delay rate (cost per unit of time).
Measured in: monetary currency, units of effort (e.g. person-days)
Cycle Time (CT1, CT2): The time taken for a “cycle”. This is an ambiguous term
which should not be used in Kanban without qualification or further definition.
It may be applied to the time between two items emerging from a process15
(CT1), for example the period between releases of new builds of software, or to
the time between starting and completing an item16 (CT2), for example the time
taken to develop a product feature.
Measured in: units of time
Alternatives: For CT1 use its reciprocal - Delivery Rate or Throughput; for CT2
use Lead Time or Time in Process
Deferred commitment: separating the request for work from the commitment to
do work, so that the system operates as a pull system.
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Delivery Rate: The number of work items emerging complete from the system
per unit of time.
Measured in: work items per unit of time
Alternatives: Completion Rate
Related terms: Throughput
Discard: To stop work on an item and remove it from the process. Note that
an item is “discarded” in this sense even if it might be worked on in the future,
for example if the work item is moved back to a queue prior to the process
under consideration. The term is not specific about when in the process the
item is discarded, however in a kanban system it applies particularly to items
discarded prior to the commitment point, since after this point the term abort
is applicable.
Related terms: abort, commitment point
Kanban (2): a kanban is a visual signal that is used in kanban systems to limit
work in progress.
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Lead Time: the elapsed time it takes for a work item to move from the
commitment point to the delivery point.
Measured in: units of time
Related terms: Time in Process (TiP)
Little’s Law: a simple relationship between the attributes of queues and flow
systems. For kanban systems it may be expressed as:
WiP
Delivery Rate = or as
Lead Time
WiP
Throughput =
TiP
where the overline indicates the arithmetic mean over a period. The system
must be statistically “stationary” for the period, or between two consecutive
points of zero WiP.
Options: options represent the right - though not the obligation - to carry out
an action or use a resource. Like financial options they have value and an
expiration period during which their value reduces to zero. They are important
in Kanban since work items before the commitment point represent options of
this type.
Alternatives: Real options
Run Chart: a scatter plot of Lead Times with data points representing the Lead
Time of items on their delivery date.
Alternatives: Control Chart
Throughput: the number of work items exiting from the system per unit of time,
whether completed or discarded.
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Measured in: work items per unit of time (e.g. items per working day)
Alternatives: Throughput Rate, Departure Rate, Processing Rate
Related terms: Delivery Rate
Time in Process (TiP): the time that a work item remains in the system or sub-
process under consideration prior to being either completed or discarded. More
specific terms may be derived by replacing “Process” with the particular part of
the process of interest, for example Time in Development, Time in Test, Time in
Queue.
Measured in: units of time
Alternatives: Lead Time (when referring to the time in process from the
commitment to delivery point), Time in System
Related terms: Cycle Time (CT2), Lead Time
Work in Progress (WiP): the number of work items which have entered the
system but which are not yet either completed or discarded.
Measured in: count of work items
Related terms: Throughput, Delivery Rate, TiP
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David J Anderson
@lki_dja
[email protected]
Andy Carmichael
@andycarmich
[email protected]
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edu.leankanban.com