Scrum for Full-Scale Manufacturing

How the Shop Floor Can Keep Up with Scrum R&D

Joe Justice
President Scrum Hardware Practice, Scrum Inc.

©2014ScrumInc.
Joe Justice @ScrumInc © 2011 Scrum Inc.
 Joe Justice
“WE HAVE FOUND TEAM MORALE TO
BE A MULTIPLIER FOR VELOCITY.”
• Founder and Team Lead of Team WIKISPEED - global manufacturer of 100 mpg
prototype cars and MicroHouses to help end involuntary homelessness.

• Creator of eXtreme Manufacturing – Technical practices accelerating Scrum in

hardware manufacturing and engineering organizations.

• Worked with Scrum in space systems, rockets, missiles, automotive, housing,

metrology, medical devices, radio, radar, dev-ops, organizational transformation,
entertainment, legal, software architecture, composites, etc.

• Speaker and Consultant at Unesco World Headquarters, Cambridge University

UK, UC Berkley USA, Google, Microsoft, Johnson Controls, Boeing, Lockheed Martin,
Raytheon, HP, Wikimedia Foundation, Open Source Ecology, TEDx Rainier, Aspen Justice@ScrumInc.com
Institute, Pictet Bank, and other organizations world-wide.

© 2014 Scrum Inc.

©2014ScrumInc.
Joe Justice @WikiSpeed
 Agenda
• Discuss Lean as a jumping off point
• Lean is great but it can sub-optimize and increase cost
to make changes
• Present four XM principles to speed up the
manufacturing line
• Scrum teams as lean cells
• Contract-first design
• Shorten supply chains
• Keep the line flexible
• Address why you CAN do this (debunk objections)
• Show tooling and suppliers that make it possible
• Share examples from companies that have succeeded
• Tait Radio
• Rocket Bunny (WIKISPEED and Tesla)

©2014ScrumInc.
Joe Justice @WikiSpeed
Scrum in Manufacturing: A Motivational Example

F-35 “Joint Strike Fighter” – SAAB JAS 39E “Gripen” –

Traditional Design Agile Design

• $143 billion over budget • Cumulative program cost of

$15 billion
• Delayed until 2022 (final
systems integration) • New iteration of all systems
released every 6 months
• Cost of Navy F-35C grew from
$273 million in 2014 to $337 • $43M cost1 (20% of F-35)
million by 2015 1. According to Jane’s Aviation Weekly, the
Gripen is the world’s most cost-effective military
aircraft

©2014ScrumInc.
Joe Justice @WikiSpeed
 Extreme Manufacturing (XM) Scrum XP

OOA

I. Scrum Organization II. XP Engineering

a. Roles and Responsibilities Principles
b. Sprints/Iterative Design a. User Stories
c. Make Work Visible b. Pairing and Swarming
d. Measure Velocity c. Test Driven Development
e. Continuous
Improvement (Lean)
“XM”

Morale is a
multiplier for
Velocity! III. Object-Oriented Architecture
a. Modular Components
b. Contract-First Design IV. Line Setup
c. Design Patterns a. Machine Rationalization
d. Re-use and Inheritance b. Material Selection
c. Line Skills Selection

©2014ScrumInc.
Joe Justice @WikiSpeed
Scale as Competitive Advantage is Declining
If You Aren’t Making Millions of the Exact Same Product,
Speed of Changeover is More Important

Major Auto Company’s CNC Machine: Startup Auto Company’s CNC Machine:
$100,000,000 $2,000

Capacity: One dye per day Capacity: One dye per day

That’s 1/50,000th the cost

©2014ScrumInc.
Source: www.wikispeed.org
Joe Justice @WikiSpeed
 Lean Thinking is the Essential Foundation

Receiving Milling Welding Painting Assembly Shipping

! ! ! ! !

Lean: Take a systematic view to maximize value delivery across

the entire “value stream” rather than focusing on just one step

Lean: Any activity that does not add value to the end product is
WASTE and should be eliminated from the process

Lean: Identify root causes of waste and eliminate them rather

than treating symptoms

Lean: Build quality into each step of the manufacturing process

to avoid the waste of rework

However, Lean can make it more expensive to change the line.

As speed to change becomes more important than scale, this
risks sub-optimizing lifecycle value delivery

©2014ScrumInc.
Joe Justice @WikiSpeed
XM Principles and Practices to Build into the
Manufacturing Line

A• Use Scrum teams as lean cells – Scrum for

organization allows teams to improve faster and
implement more lean improvements in the same
timeframe

B• Object-Oriented Architecture – be willing to

over-build at key points to allow greater
flexibility for the overall product and leverage
design patterns

C• Shorten supply chains – longer supply chains

are more prone to disruption and slower to
respond. Short ones can turn around iterations
faster

D• Keep the line flexible – make it as easy as

practical to reformat the line in response to
process improvement experiments

©2014ScrumInc.
Joe Justice @WikiSpeed
A
Scrum Teams as Lean Cells Scrum XP

OOA

Sprint provides team

improvement
cadence in addition
to Takt time cadence

Retrospective results
in at least one Kaizen
event per sprint

Pre-shift Daily Scrum

helps align cell
members and
coordinate across
cells to achieve day’s
production goals

©2014ScrumInc.
Joe Justice @WikiSpeed
B Object-Oriented Architecture: Scrum XP
Contract-First Design OOA

• Volvo’s SPA, or Scalable Product Architecture, announced August 13th, 2014

• This Contract-First Design reduces cost to produce many descendent
designs
• The next step? Reduce the cost to change the manufacturing process
• For that, we need to add Known Stable Interfaces

©2014ScrumInc.
Joe Justice @WikiSpeed
B Object-Oriented Architecture: Scrum XP
Known Stable Interfaces OOA

Pre-negotiated
physical and data
connections permit
greater design
versatility, and loose
production coupling

Interfaces
deliberately over-
designed to reduce
need for disruptive
re-negotiation

©2014ScrumInc.
Joe Justice @WikiSpeed
B Object-Oriented Architecture Scrum XP
Design Patterns and Inheritance OOA

• Don’t re-invent the wheel

• If a proven solution has worked well in the
past, start with that and modify as needed

• Reduce complexity – Find

solutions that work for multiple
aspects of the problem
• Eg. If a particular bolt works as a
fastener in one location, use the
same bolt in all similar situations

©2014ScrumInc.
Joe Justice @WikiSpeed
C Shorten Supply Chains for Added
Responsiveness
Long and complicated Supply Chains increase…

WIP Inventory and

Working Capital

Supply Chain Risk

Feedback Cycles

©2014ScrumInc.
Joe Justice @WikiSpeed
D
Keep the Line Flexible Scrum XP

OOA

Long changeover time to switch

the physical line limits the ability
to experiment with new process
improvements

Designing the line equipment to

be flexible accelerates
continuous improvement and
supports multi-product
manufacturing

Some companies go as far as to

mount all equipment on casters
to drive flexibility

©2014ScrumInc.
Joe Justice @WikiSpeed
Top Reasons Companies Say They Can’t Do This

“Our product is too complicated to not plan

1
everything meticulously in advance” I. Fundamental
misunderstanding
“Our quality expectations are too high to
of agile principles
2 not follow a documented and unvarying
plan”

“We have already made large investments II. Current

3
in fixed machinery and tooling” impediments that
can be addressed
“Our product design is too tightly coupled iteratively over
4 to iterate modules without changing the time
entire design”

5 “Our vendors are not Agile enough to

support this approach” III. Key issues
requiring creative
“Key steps of the manufacturing process
thinking to solve
6 require too long a lead time to fit in sprints
”

©2014ScrumInc.
Joe Justice @WikiSpeed
 Even Cheaper for Plastics:
Protomold

• Prototype parts or molds same-day

• Volume parts or molds same-week
• $1-$10k per mold

©2014ScrumInc.
Joe Justice @WikiSpeed
 Suppliers that Make this Possible:
Electronics

RushPCB RuggedCircuits

• 2-layer circuit boards in 5 days • Military and aviation grade

for $10 hardening
• Up to 8 layer circuit boards • In stock same day $40
• USB programmable, Arduino
compatible

©2014ScrumInc.
Joe Justice @WikiSpeed
 Partners that Make this Possible:
Full Ecosystem
Local Motors

©2014ScrumInc.
Joe Justice @WikiSpeed
 A Lean Production Cell:

Capable of one part every six seconds.

The cost to change?
New metal molds, called dies, up to 40 tons each

©2014ScrumInc.
Joe Justice @WikiSpeed
 Suppliers for your Production Molds:
Molds Shipped to you Within a Sprint

3d Green Sand Casting

• Volume metal castings same-week

• Fastest, cheapest, quality metal tooling

©2014ScrumInc.
Joe Justice @WikiSpeed
 Even Better, Make your own Molds:
Make your own molds inside each sprint

Subtractive Rapid Prototyping (SRP)

• Roland MDX-40A • Okuma M560-V

• $8k USD, 12”x12”x4” • $120k USD, 41”x22”x18”
• Quiet for desk office use • Requires trained operator
• 28x gives similar work area • Durable, but costly repairs

©2014ScrumInc.
Joe Justice @WikiSpeed
 Reducing the Time to Change Molds:
Change your Production Each Sprint with your Own Molds

Globe Industries

• Line-Speed composites: 17minutes part-to-part.

• 1 minute tool exchange time.
• $1M USD tool.

©2014ScrumInc.
Joe Justice @WikiSpeed
 Even Better, Entirely
Skip Molds and Press

Cincinnati BAAM

• Production structural parts same day

• Carbon Filament reinforced 3d printing

©2014ScrumInc.
Joe Justice @WikiSpeed
Mission Bell Winery
Madera, CA
60 acres of Scrum Wine

©2014ScrumInc.
Joe Justice @WikiSpeed
UTAS Aerospace Systems
Des Moines, IA
Jet engine fuel injection

©2014ScrumInc.
Joe Justice @WikiSpeed
KVH Satellite Systems
Middletown, RI
Scrum Maritime Data and streaming

©2014ScrumInc.
Joe Justice @WikiSpeed
Profile of a Disruptive Supplier:
Rocket Bunny and Liberty Walk

©2014ScrumInc.
Joe Justice @WikiSpeed
 From Idea to Customer in 1 Sprint

1) Scan 2) CAD, post to Facebook 3) Machine Foam Mold

4) Build and Race 5) Polish and Show 6) Sell Sell Sell

Suppliers are doing this now. If your suppliers can’t do this…find different suppliers

©2014ScrumInc.
Joe Justice @WikiSpeed
 Conclusions
• As market responsiveness becomes more important than
scale, adding agility to manufacturing is essential
• XM enhances Lean with Scrum and other Agile practices to
the physical R&D and manufacturing world
• Four practices should be of interest to manufacturers:
• Scrum teams as Lean cells
• Contract-First Design
• Shorten supply chains
• Keep the line flexible

• All of the reasons you think you can’t do this have already
been solved
• Companies are starting to leverage Agile manufacturing to
succeed in the market. Is your competitor one of them?

©2014ScrumInc.
Joe Justice @WikiSpeed
 Questions?

©2014ScrumInc.
Joe Justice @WikiSpeed
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