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Monday, February 8

  1. page PrinciplesOfProductDevelopmentFlow.AchievingDecentrlizedControl edited Back D1:    The Second Perishability Principle Decentralize control for problems and opportunit…
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    D1:    The Second Perishability Principle
    Decentralize control for problems and opportunities that age poorly
    D2:    The Scale Principle
    Centralize control for problems that are infrequent, large, or that have significant economics of scale
    D3:    The Principle of Layered Control
    Adapt the control approach to emerging information about the problem
    D4:    The Opportunistic Principle
    Adjust the plan for unplanned obstacles and opportunities
    D5:    The Principle of Virtual Centralization
    Be able to quickly reorganize decentralized resources to create centralized power
    D6:    The Inefficiency Principle
    The inefficiency of decentralization can cost less than the value of faster response time
    D7:    The Principle of Alignment
    There is more value created with overall alignment than local excellence
    D8:    The Principle of Mission
    Specify the end state, its purpose, and the minimal possible constraints
    D9:    The Principle of Boundaries
    Stablish clear roles and boundaries
    D10:    The Main Effort Principle
    Designate a main effort and subordinate other activities
    D11:    The Principle of Dynamic Alignment
    The main effort may shift quickly when conditions change
    D12:    The Second Agility Principle
    Develop the ability to quickly shift focus
    D13:    The Principle of Peer-Level Coordination
    Tactical coordination should be local
    D14:    The Principle of Flexible Plans
    Use simple modular plans
    D15:    The Principle of Tactical Reserves
    Decentralize a portion of reserves
    D16:    The Principle of Early Contact
    Make early and meaningful contact with the problem
    D17:    The Principle of Decentralized Information
    For decentralized decisions, disseminate key information widely
    D18:    The Frequency Response Principle
    We can't response faster than our frequency response
    D19:    The Quality of Service Principle
    When response time is important, measure response time
    D20:    The Second Market Principle
    Use internal and external markets to decentralize control
    D21:    The Principle of Regenerative Initiative
    Cultivating initiative enables us to use initiative
    D22:    The Principle of Face-to-Face Communication
    Exploit the speed and bandwidth of face-to-face communications
    D23:    The Trust Principle
    Reinertsen, Donald G. (2012-03-29). The Principles of Product Development Flow: Second Generation Lean Product DevelopmentTrust is built through experience
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    5:32 pm
  2. page PrinciplesOfProductDevelopmentFlow.UsingFastFeedback edited Back FF1:    The Principle of Maximum Economic Influence Focus control on project and process p…
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    FF1:    The Principle of Maximum Economic Influence
    Focus control on project and process parameters with the highest economic influence
    FF2:    The Principle of Efficient Control
    Control parameters that are both influential and efficient
    FF3:    The Principle of Leading Indicators
    Select control variables that predict future system behavior
    FF4:    The Principle of Balanced Set Points
    Set tripwires at points of equal economic impact
    FF5:    The Moving Target Principle
    Know when to pursue a dynamic goal
    FF6:    The Exploitation Principle
    Exploit unplanned economic opportunities
    FF7:    The Queue Reduction Principle of Feedback
    Fast feedback enables smaller queues
    FF8:    The Fast-Learning Principle
    Use fast feedback to make learning faster and more efficient
    FF9:    The Principle of Useless Measurement
    What gets measures may not get done
    FF10:    The First Agility Principle
    We don't need long planning horizons when we have a short turning radius
    FF11:    The Batch Size Principle of Feedback
    Small batches yield fast feedback
    FF12:    The Signal to Noise Principle
    To detect a smaller signal, reduce the noise
    FF13:    The Second Decision Rule Principle
    Control the economic logic behind a decision, no the entire decision
    FF14:    The Locality Principle of Feedback
    Whenever possible, make feedback local
    FF15:    The Relief Valve Principle
    Have a clear, predetermined relief valve
    FF16:    The Principle of Multiple Control Loops
    Embed fast control loops inside slow control loops
    FF17:    The Principle of Controlled Excursions
    Keep deviations within the control range
    FF18:    The Feedforward Principle
    Provide advance notice of heavy arrival rates to minimize queues
    FF19:    The Principle of Colocation
    Colocation improves almost all aspects of communication
    FF20:    The Empowerment Principle of Feedback
    Fast feedback ives a sense of control
    FF21:    The Hurry-Up-and-Wait Principle
    Large queues make it hard to create urgency
    FF22:    The Amplification Principle
    The human element tends to amplify large excursions
    FF23:    The Principle of Overlapping Measurement
    To align behaviors, reward people for the work of others
    FF24:    The Attention Principle
    Time counts more than money
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    5:25 pm
  3. page PrinciplesOfProductDevelopmentFlow.ControllingFlowUnderUncertainty edited Back F1:    The Principle of Congestion Collapse When loadinb becomes too high, we will see a s…
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    F1:    The Principle of Congestion Collapse
    When loadinb becomes too high, we will see a sudden and catastrophic drop in output
    F2:    The Peak Throughput Principle
    Control occupancy to sustain high throughput in systems prone to congestion
    F3:    The Principle of Visible Congestion
    Use forecasts of expected flow time to make congestion visible
    F4:    The Principle of Congestion Pricing
    Use pricing to reduce demand during congested periods
    F5:    The Principle of Periodic Resynchronization
    Use a regular cadence to limit the accumulation of variance
    F6:    The Cadence Capacity Margin Principle
    Provide sufficient capacity margin to enable cadence
    F7:    The Cadence Reliability Principle
    Use cadence to make waiting times predictable
    F8:    The Cadence Batch Size Enabling Principle
    use a regular cadence to enable small batch sizes
    F9:    The Principle of Cadenced Meetings
    Schedule frequent meetings using a predictable cadence
    F10:    The Synchronization Capacity Margin Principle
    To enable synchronization, provide sufficient capacity margin
    F11:    The Principle of Multiproject Synchronization
    Exploit scale economics by synchronizing work from multiple projects
    F12:    The Principle of Cross-Functional Synchronization
    Use synchronized events to facilitate cross functional trade-offs
    F13:    The Synchronization Queueing Principle
    To reduce queues, synchronize the batch size and timing of adjacent processes
    F14:    The Harmonic Principle
    Make nested cadences harmonic multiples
    F15:    The SJF Scheduling Principle
    When delay costs are homogeneous, do the shortest job first
    F16:    The HDCF Scheduling Principle
    When job durations are homogeneous, so the high cost-of-delay job first
    F17:    The WSJF Scheduling Principle
    When job durations and delay costs are not homogeneous, use WSJF (weighted shortest job first)
    F18:    The Local Priority Principle
    Priorities are inherently local
    F19:    The Round-Robin Principle
    When task duration is unknown, time-share capacity
    F20:    The Preemption Principle
    Only preempt when switching costs are low
    F21:    The Principle of Work Matching
    Use sequence to match jobs to appropriate resources
    F22:    The Principle of Tailored Routing
    Select and tailor the sequence of subprocesses to the task at hand
    F23:    The Principle of Flexible Routing
    Route work based on the current most economic route
    F24:    The Principle of Alternate Routes
    Develop and maintain alternate routes around points of congestion
    F25:    The Principle of Flexible Resources
    Use flexible resources to absorb variation
    F26:    The Principle of Late Binding
    The later we bind demand to resources, the smoother the flow
    F27:    The Principle of Local Transparency
    Make tasks and resources reciprocally visible at adjacent processes
    F28:    The Principle of Preplanned Flexibility
    For fast responses, preplan and invest in flexibility
    F29:    The Principle of Resource Centralization
    Correctly managed, centralized resources can reduce queues
    F30:    The Principle of Flow Conditioning
    Reduce variability before a bottleneck
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    5:20 pm
  4. page PrinciplesOfProductDevelopmentFlow.ReducingBatchSize edited Back B1:    The Batch Size Queueing Principle Reducing batch size reduces cycle time B2:    T…
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    B1:    The Batch Size Queueing Principle
    Reducing batch size reduces cycle time
    B2:    The Batch Size Variability Principle
    Reducing batch size reduces variability in flow
    B3:    The Batch Size Feedback Principle
    Reducing batch sizes accelerates feedback
    B4:    The Batch Size Risk Principle
    Reducing batch size reduces risk
    B5:    The Batch Size Overhead Principle
    Reducing batch size reduces overhead
    B6:    The Batch Size Efficiency Principle
    Large batches reduce efficiency
    B7:    The Psychology Principle of Batch Size
    Large batches inherently lower motivation and urgency
    B8:    The Batch Size Slippage Principle
    Large batches cause exponential cost and schedule growth
    B9:    The Batch Size Death Spiral Principle
    Large batches lead to even larger batches
    B10:    The Least Common Denominator Principle of Batch Size
    The entire batch is limited by its worst element
    B11:    The Principle of Batch Size Economics
    Economic batch size is a U-curve optimization
    B12:    The Principle of Low Transaction Cost
    Reducing transaction cost per batch lowers overall costs
    B13:    The Principle of Batch Size Diseconomies
    Batch size reduction saves much more than you think
    B14:    The Batch Size Packing Principle
    Small batches allow finer tuning of capacity utilization
    B15:    The Fluidity Principle
    Loose coupling between product subsystems enables small batches
    B16:    The Principle of Transport Batches
    The most imporant batch is the transport batch
    B17:    The Proximity Principle
    Proximity enables small batch sizes
    B18:    The Run Length Principle
    Short run lengths reduce queues
    B19:    The Infrastructure Principle
    Good infrastructure enables small batches
    B20:    The Principle of Batch Content
    Sequence first that which adds value most cheaply
    B21:    The Batch Size First Principle
    Reudce batch size before you attack bottlenecks
    B22:    The Principle of Dynamic Batch Size
    Adjust batch size dynamically to response to changing economics
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    5:07 pm
  5. page PrinciplesOfProductDevelopmentFlow.ExploitingVariability edited Back V1:    The Principle of Beneficial Variability Variability can create economic value V2:…
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    V1:    The Principle of Beneficial Variability
    Variability can create economic value
    V2:    The Principle of Asymmetric Payoffs
    payoff asymmetries enable variability to create economic value
    V3:    The Principle of Optimum Variability
    Variability should neither be minimized or maximized
    V4:    The Principle of Optimum Failure Rate
    Fifty percent failure rate is usually optimum for generating information
    V5:    The Principle of Variability Pooling
    Overall variation decreases when uncorrelated random tasks are combined
    V6:    The Principle of Short-Term Forecasting
    Forecasting becomes exponentially easier at short time-horizons
    V7:    The Principle of Small Experiments
    Many small experiments produce less variation than one big one
    V8:    The Repetition Principle
    Repetition reduces variation
    V9:    The Reuse Principle
    Reuse reduces variability
    V10:    The Principle of Negative Covariance
    We can reduce variance by applying a counterbalancing effect
    V11:    The Buffer Principle
    Buffers trade money for variability reduction
    V12:    The Principle of Variability Consequence
    Reducing consequences is usually the best way to reduce the cost of variability
    V13:    The Nonlinearity Principle
    Operate in the linear range of system performance
    V14:    The Principle of Variability Substitution
    Substitute cheap variability for expensive variability
    V15:    The Principle of Iteration Speed
    It is usually better to improve iteration speed than defect rate
    V16:    The Principle of Variability Displacement
    Move variability to the process stage where its cost is lowest
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    4:59 pm
  6. page PrinciplesOfProductDevelopmentFlow.EconomicView edited Back E1: The Principle of Quantified Overall Economics One line summary Select actions based on…
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    E1: The Principle of Quantified Overall Economics
    One line summarySelect actions based on quantified overall economic impact
    E2: The Principle of Interconnected Variables
    One line summaryWe can't just change one thing.
    E3: The Principle of Quantified Cost of Delay
    One line summaryIf you only quantify one thing, quantify the cost of delay
    E4: The Principle of Economic Value-Added
    One line summaryThe value added by an activity is the change in the economic value of the work product
    E5: The Inactivity Principle
    One line summaryWatch the work product, not the worker
    E6: The U-Curve Principle
    One line summaryImportant trade-offs are likely to have U-curve optimizations
    E7: The Imperfection Principle
    One line summaryEven imperfect answers improve decision making
    E8: The Principle of Small Decisions
    One line summaryInfluence the many small decision
    E9: The Principle of Continuous Economic Trade-offs
    One line summaryEconomic choices must be made continuously
    E10: The First Perishability Principle
    One line summaryMany economic choices are more valuable when made quickly
    E11: The Subdivision Principle
    One line summaryInside every bad choice lies a good choice
    E12: The Principle of Early Harvesting
    One line summaryCreate systems to harvest the early cheap opportunities
    E13: The First Decision Rule Principle
    One line summaryUse decision rules to decentralize economic control
    E14: The First Market Principle
    One line summaryEnsure decision makers feel both cost and benefit
    E15: The Principle of Optimum Decision Timing
    One line summaryEvery decision has its optimum economic timing
    E16: The Principle of Marginal Economics
    One line summaryAlways compare marginal cost and marginal value
    E17: The Sunk Cost Principle
    One line summaryDo not consider money already spent
    E18: The Principle of Buying Information
    One line summaryThe value of information is its expected economic value
    E19: The Insurance Principle
    One line summaryDon't pay more for insurance than the expected loss
    E20: The Newsboy Principle
    One line summaryHigh probability of failure does not equal bad economics
    E21: The Show Me the Money Principle
    One line summary
    To influence financial decisions, speak the language of money
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    4:49 pm

Friday, February 5

  1. page PrinciplesOfProductDevelopmentFlow.ManagingQueues edited Back Q1:    The Principle of Invisible Inventory Product development inventory is physically an…
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    Q1:    The Principle of Invisible Inventory
    Product development inventory is physically and financially invisible
    Q2:    The Principle of Queueing Waste
    Queues are the root cause of the majority of economic waste in product development
    Q3:    The Principle of Queueing Capacity Utilization
    Capacity utilization increases queues exponentially
    Q4:    The Principle of High-Queue States
    Most of the damage done by a queue is caused by high-queue states
    Q5:    The Principle of Queueing Variability
    Variability increases queues linearly
    Q6:    The Principle of Variability Amplification
    Operating at high levels of capacity utilization increases variability
    Q7:    The Principle of Queueing Structure
    Serve pooled demand with reliable high-capacity servers
    Q8:    The Principle of Linked Queues
    Adjacent queues see arrival or service variability depending on loading
    Q9:    The Principle of Queue Size Optimization
    Optimum queue size is an economic trade-off
    Q10:    The Principle of Queueing Discipline
    Queue cost is affected by the sequence in which we handle the jobs in the queue
    Q11:    The Cumulative Flow Principle
    Use CFDs to monitor queues
    Q12:    Little’s Formula
    Wait Time = Queue Size / Processing Rate
    Q13:    The First Queue Size Control Principle
    Don't control capacity utilization, control queue size
    Q14:    The Second Queue Size Control Principle
    Don't control cycle time, control queue size
    Q15:    The Diffusion Principle
    Over time, queues will randomly spin seriously out of control and will remain in the state for long periods
    Q16:    The Intervention Principle
    We cannot rely on randomness to correct a random queue
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    8:30 am

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