Domain Delivery: Task 4 : Recognize and Eliminate Waste
Task 4 : Recognize and eliminate waste
- Visualize the end-to-end flow of value in the system (e.g., value added, non-value added)
- Use metrics, tools and feedback loops to identify waste
- Prioritize waste reduction activities
- Iterate on identification and reduction of waste
Recognizing and Eliminating Waste in Agile Projects
Waste is a silent yet significant barrier to efficiency in any project. Agile teams must continuously strive to identify and eliminate waste in their workflows to improve delivery speed, enhance product quality, and optimize resource utilization. Waste can manifest as unnecessary work, waiting times, rework, or inefficient processes.
This article explores the four key steps in recognizing and eliminating waste:
✔ Visualizing the flow of value
✔ Using metrics and feedback loops
✔ Prioritizing waste reduction
✔ Iterating on waste identification and reduction
By applying Lean and Agile principles, teams can maximize value and minimize inefficiencies in their processes.
Visualizing the End-to-End Flow of Value
Understanding the Value Stream
Before eliminating waste, we need to understand how value flows through the system. This is where value stream mapping helps.
Key Concepts in Value Stream Analysis
- Value-Added Time – Time spent directly contributing to product value.
- Non-Value-Added Time – Delays, wait times, or redundant tasks that do not contribute to value.
- Total Cycle Time – The sum of value-added and non-value-added time.
By mapping the entire workflow, teams can pinpoint inefficiencies and reduce delays.
Identifying Bottlenecks and Queues
Every process has queues—places where work waits. These could be:
- Waiting for approvals
- Dependencies on other teams
- Delayed feedback loops
- Blocked tasks due to unclear requirements
By identifying these points of stagnation, teams can take corrective actions.
Measuring Process Efficiency
Process efficiency is calculated as:
Process efficiency = Value – added time ÷ Total cycle time
Case Study: Improving a Coffee Shop’s Ordering System
A coffee shop identified delays in:
- Customers waiting to place orders
- Orders waiting to be processed
Solution: Introduce a mobile ordering app to reduce waiting times.
- Before App: Efficiency = 48%
- After App: Efficiency = 73%
This example highlights how automation and process improvements can significantly reduce waste.
Using Metrics, Tools, and Feedback Loops to Identify Waste
Choosing the Right Metrics
Metrics must be:
- Fit for purpose
- Specific and actionable
- Aligned with business goals
- Consistently measured over time
Four Key Waste Identification Metrics
- Queue Length → Measures waiting time (e.g., lead time, batch size).
- Work in Progress (WIP) → Tracks unfinished tasks (e.g., ratio of completed vs. planned work).
- Throughput → Evaluates how fast work is completed (e.g., velocity, features completed).
- Process Efficiency → Compares value-added time to total cycle time.
Tools for Waste Identification
Value Stream Mapping
Maps out where value is created and where delays occur.
Theory of Constraints
Focuses on the biggest bottleneck first before optimizing other areas.
Key Principle: Improving non-bottlenecks does not improve throughput.
Cumulative Flow Diagrams (CFD)
CFDs help visualize:
- Scope increases
- Queue durations
- Bottlenecks
- Cycle and lead times
Example:
A widening CFD band signals that work is entering a stage faster than it is being completed, causing bottlenecks.
Little’s Law
Little’s Law is a math formula that can be used to analyze work queues on cumulative flow diagrams. It proves something that, on its surface, seems obvious: The duration of a work queue is dependent on its size. That’s why limiting work in progress is a key principle of the Kanban approach.
Prioritizing Waste-Reduction Activities
Embedding Waste-Reduction in the Backlog
Once waste is identified, solutions must be integrated into the product backlog. However, how do we assign priority?
Estimating the Value of Waste-Reduction Tasks
- Determine total value of the waste
- Calculate potential savings
- Estimate the return on investment (ROI)
- Prioritize the task accordingly
Example:
If reducing a queue saves 1 hour per employee per week and a team has 10 employees, this translates into:
- 10 hours/week saved
- 40 hours/month saved
- 480 hours/year saved
By assigning a financial value to time saved, waste-reduction activities can be quantified and justified.
Working with the Product Owner
The product owner prioritizes work based on business value.
To secure buy-in:
- Explain how waste-reduction improves delivery speed.
- Demonstrate cost savings.
- Show impact on team morale and efficiency.
Reviewing Results
After implementing waste-reduction efforts, teams must measure success: ✔ Did cycle time improve?
✔ Did queue length decrease?
✔ Did overall throughput increase?
If waste persists, further refinement may be needed.
Iterating on Waste Identification and Reduction
Applying the Theory of Constraints
Waste elimination is an ongoing process. Once a bottleneck is removed, another will emerge.
Teams must continually reassess and focus on the next constraint.
Using the Deming Cycle for Continuous Improvement
The Plan-Do-Study-Act (PDSA) cycle ensures continuous waste reduction:
- Plan → Identify waste and develop a solution.
- Do → Implement changes on a small scale.
- Study → Measure success against predefined criteria.
- Act → Scale up if successful or refine if needed.
This cycle never stops—waste reduction is a continuous journey.
Improving Constraints Through Experiments
- Experiment with automation → Reduce manual effort.
- Introduce just-in-time processes → Reduce waiting times.
- Refine team workflows → Improve task handovers.
Case Study: Software Development Process Improvement
A software company faced rework issues due to customer server misconfigurations.
Steps Taken:
- Used value stream mapping → Identified bottlenecks in support and development.
- Applied the “Five Whys” technique → Discovered that sales teams were not informing customers about server requirements.
- Implemented a new process → Sales teams were required to verify server configurations before closing deals.
- Results:
✔ Reduced rework time by 60%
✔ Improved developer productivity
✔ Enhanced customer satisfaction
This example shows how waste is often hidden in unexpected places and requires cross-functional collaboration to resolve.
Conclusion
Key Takeaways for Eliminating Waste in Agile
✔ Visualize your value stream to detect bottlenecks.
✔ Use metrics & feedback loops to make data-driven decisions.
✔ Embed waste-reduction tasks into the backlog and prioritize based on ROI.
✔ Apply continuous improvement techniques like the Deming Cycle and Theory of Constraints.
✔ Experiment, measure, and iterate to sustain long-term efficiency gains.
By recognizing and eliminating waste, Agile teams can deliver faster, improve quality, and create more value for customers.
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