Kanban as a Business Analysis Tool - A SwiftKanban Customer Case Study

Kanban as a Business Analysis Tool A Case-study

Introduction Clarinha Prado • Consultant in business analysis and information technology. • 20 years of experience in companies from various branches, mainly in the financial sector. • Graduated in computer engineering, with postgraduate studies in business administration. clarinha.prado@giganteconsultoria.com.br

Introduction • Gigante Consultoria is a consulting company that works with: – – – – Business Analysis Project Management System Analysis Training • This presentation refers to one of our projects, where we worked to improve the procurement process of one customer.

Objective • Present the Kanban as a tool to support business analysis. • Describe the introduction of Kanban in the procurement process of Poiesis – a Culture, Language and Literature Support Institute.

Agenda Contextualization: • Description of the company, the procurement area and its process. Problems Encountered: Suggested solution: • Problems that prompted the hiring of consultancy. • Suggested actions by consulting. Deployment of Kanban: • Stages of deployment, key challenges, obtained results. Conclusion: • Main conclusions and recommendations.

Contextualization

Poiesis - Culture, Language and Literature Support Institute • Where are we? São Paulo – state of Brazil. SÃO PAULO Area: 248.209 km2 Population: 43.663.669 inhabitants

Poiesis - Culture, Language and Literature Support Institute • Non-governmental organization, qualified by the State Government of São Paulo. • Promotes socio-cultural and educational development, focused on project management in cultural spaces. • Develops programs and research in cultural spaces geared to the training of students and the general public.

Poiesis - Culture, Language and Literature Support Institute • Performs the management of 29 cultural units : – – – – 21 Cultural workshops, 5 Culture factories, 2 Museums, 1 Reading space.

Procurement Department • Responsible for making purchases for cultural spaces managed by Poiesis and to the headquarters of the Organization. Approximate volume of 400 procurements/month.

Procurement Department Organizational structure: Administrative Manager Contract Manager Procurement Manager 5 buyers 1 intern

Procurement Process Receive Request Assign Buyer Quote or Negotiate Get Signatures Draw Up A Contract Approve Purchase Wait For Delivery Validate Delivery Request Payment

Motivation to Contract Business Analysis

Problems Faced by Poiesis • Lack of transparency to solicitants. • Process time consuming, complex and bureaucratic. • Lack of clarity in the distribution of responsibilities. • Lack of knowledge of business rules. • Problems in the purchases prioritization. • Uneven distribution of workload between buyers. • Lack of management information.

The Business Analysis

The Business Analysis • The consulting company Gigante held a job of diagnosing problems and proposal for improvements. • Several actions were proposed to address the problems singled out, among them the introduction of a Kanban.

The Kanban Proposal • Use the Kanban as a tool for: – Increase the transparency of the procurement process. – Enable strategic management over acquisitions. – Control the flow of the department purchases. – Optimize productivity quickly.

The Kanban Proposal 1st phase – Physical Kanban: Process modeling, board assembly, training, daily meetings 2nd phase - Automated Kanban: Choice of tools, training, definition of indicators, acquisition of TV.

1st phase – Physical Kanban Deployment of Kanban

1st phase – Physical Kanban • Start: May 14, 2013. • Used for about 2 months. • Deployment steps: – Process modeling with managers. – Team training. – Monitoring the deployment. – Use of available materials: brown paper, masking tape, post-its, A4 sheet.

1st phase – Physical Kanban Profile of purchases Staff overload Identification of bottlenecks

1st phase – Physical Kanban Capacityconstrained resource Non-instant availability resource

Manually Extracted Metrics

Board Customizations • Suggestions from the team, during the daily meetings.

Board Customizations • Stamp: standardization and practicality for a low cost.

Last Board Configuration

Main Challenges • Fixing the frame and the cards. • Motivation for the team to use the new tool. • Establishment of new concepts. • Manual generation of metrics. • Maintaining the daily meeting.

Obtained Results • The team's involvement in the proposed improvements and troubleshooting. • Customer awareness. • Sharing information. • Workload visualization. • Analysis of performance metrics. • Reducing the index of complaint.

2nd phase - Automated Kanban Deployment of Kanban

2nd phase - Automated Kanban • Start: September 16, 2013. • Deployment steps: – Selection and hiring of the Kanban application. – Team training. – Import of the cards. – Customization of indicators.

Kanban Products Analysis A B C D

2nd phase - Automated Kanban

2nd phase - Automated Kanban

Obtained Metrics

Obtained Metrics

Main Challenges • Choice of the Kanban tool. • Two months interval between automated and physical Kanban. • Adaptation of the team to the new system. • Loss of board visibility, that used to be displayed on the Department wall.

Obtained Results • Ongoing purchases controlled by Swift-Kanban. • Metrics to support managerial activity: – Data in real time, backlog, productivity, costs, purchase volume, lead time, cycle time. • Customized web page to search for the purchase status. • The contracts area wants to start using Swift-Kanban.

Conclusion

Conclusions • Kanban is a solution easy to adopt, with an affordable cost. • Helped solve the main encountered problems. • Gave the manager support through the workflow visualization and analysis of indicators.

Kanban as a Business Analysis Tool A Case-study