Agile systems are inherently unstable where the outflow of work rarely matches the inflow. In a stable system Little's Law, (the relationship between throughput, cycle time and work in progress)
applies.
This presentation looks at systems where Little's Law does not apply and uses Monte Carlo techniques to map the relationship between arrival rates, departure rates, cycle time and total work in progress. Unlike Little's Law this technique is non-linear and stochastic in nature. However, it does not require the imposition of false stability through very high (40%-60%) of customer requests.
This presentation shows how Monte Carlo may be used
to tackle questions like "what is the correct size for a backlog?" and "should we add more team members / a new team" inexpensively to help Agile management.
It was presented as part of ALI2018
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Agile in the Casino - Using Monte Carlo for Unstable Systems
2. Rob Healy
16 years developing, documenting,
testing and managing software
Lean Six Sigma Certified
MBA, H. Dip Mgmt. B. Mech. Eng.
CSM, CPO
Founder member of the Agile Lean
Ireland Society
Agile-Lean Consultant, Ammeon
Amateur card player
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2
14. SYSTEM
Littles Law
14
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DeparturesArrivals
If average arrival rate is the same as the
average departure rate then the system
is stable
Littles Law applies
The average number of tickets in
the system (L), is the effective
arrival / departure rate (了), times the
average time that a ticket spends in
the system (W)
L = 了W
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16
Monte Carlo: The Million Iteration Analysis
1. Take 5,000 Agile Teams
2. Give them the same arrival rate
distribution and departure rate
distribution.
3. Allow them to work unfettered
for 200 iterations.
4. Inspect the backlog size and
number of tickets delivered /
cancelled
5. Plot the distributions
19. So does Littles Law Hold in Agile Teams?
19
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If arrival rates and departure rates were the
same, then Agile Backlogs would be at 0 at
a much higher frequency (41%).
0
500
1000
1500
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 45
Teams
#Instances in 200 opportunities
Teams with Backlog = 0
20. So does Littles Law Hold in Agile Teams?
20
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If arrival rates and departure rates were the
same, then Agile Backlogs would be at 0 at
a much higher frequency (41%).
Littles Law requires a consistent long term
average throughput to be valid (the
system must be stable). This is contrary to
Agiles Continuous Improvement approach.
21. So does Littles Law Hold in Agile Teams?
21
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If arrival rates and departure rates were the
same, then Agile Backlogs would be at 0 at
a much higher frequency (41%).
Littles Law requires a consistent long term
average throughput to be valid (the
system must be stable). This is contrary to
Agiles Continuous Improvement approach.
Littles Law doesnt apply to most Agile
teams, most of the time.
The difference in arrival and departure
rates are most often reflected in the
backlog fat.
L = 了W
24. Answer
24
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At the minimum, the backlog needs to be at
least as large as the potential departure rate of
the system. SYSTEM Departures
0
2
4
6
8
10
0
10
20
30
40
50
60
70
80
90
100
110
#Tickets
Iteration
Tickets Added or Removed Over Time
Tickets Added
Tickets Removed
25. Answer
25
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At the minimum, the backlog needs to be at
least as large as the potential departure rate of
the system.
In a lean system, the maximum backlog needs
to be as close to the minimum as possible. Do
this by rejecting non-valuable work (PICK)
26. Answer
26
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At the minimum, the backlog needs to be at
least as large as the potential departure rate of
the system.
In a lean system, the maximum backlog needs
to be as close to the minimum as possible. Do
this by rejecting non-valuable work (PICK)
It is more important to know if it is growing,
shrinking or staying the same.
Measure your current arrival and departure
rates and use Monte Carlo Analysis to predict
where your backlog will likely be in any period
in the future.
29. Answer
29
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Before growing your team make sure that
the current and predicted arrival rate is
higher than the current departure rate.
Look to other alternatives (improving the
current team etc.)
Run a Monte Carlo simulation to predict
possible outcomes on departure rates.
Improve by using Cost of Delay, ROI and
cost metrics for new predicted departure
rates.
Reduce risks before altering team structure.
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Measure the arrival and departure rates and use Monte Carlo to predict
outcomes before making changes
Use a PICK chart to reject low value work.
Never start a sprint on a Monday.
Where possible, use lights out testing and / or Follow The Sun planning.
Inspect the backlog size and number of tickets delivered / cancelled.
Come and speak with us at our stand or during the open space
Top Tips to accelerate Agile delivery (departures)
31. Customer Centric Training Coaching Programme
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