Metrics for Understanding Flow

This is the abstract and conclusions from a paper I presented at Agile 2014. The full text is here.

Abstract

When adopting agile and lean approaches in our company, one goal for teams and organizations is to achieve a smooth end-to-end flow of work through the system. This paper presents a useful set of metrics that reveal how work is flowing. It describes four metrics we find useful: Cumulative Flow, Throughput Analysis combined with Demand Analysis, Cycle Time and Lead Time.

Conclusions

These metrics help you understand Flow in your teams and organizations. In particular:

  • CFDs give deeper insight into what’s happening in queues or workflow states, and help diagnose problems.
  • Throughput Analysis shows how work is flowing through our system over time. It is even more useful when combined with a Demand Analysis that shows the proportion of work flowing through the systemthat is Value Demand versus Failure Demand.
  • Cycle Time analysis shows how long it takes for work items to pass through one or a subset of workflowstates. This enables teams to make predictions about how long it takes to process planned work items.
  • Lead Time analysis shows how long it takes for work items to pass through the entire organization. This enables the organization to make predictions about how long it will take to process requests. We generally use Lead Time to understand the time it takes work to pass through all states, from the moment there is arequest or idea, to the moment the work is complete and in the hands of customers.
  • All these metrics can be used to indicate the presence of impediments to Flow in your system. The combination of these metrics offers good insight into what’s happening in an organization. They provide insight and visibility on status, and inform forecasting around when specific content might be delivered.

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