Non-Repudiation in Supply Chain Management - Use Case for Blockchain

Supply chains are under strain at the moment -- the fragility of current systems is laid bare during this pandemic crisis. Blockchain, simplified, is a data structure that maintains transactional records and while ensuring security. This decentralized approach ensures — a chain of records which are controlled by no single authority. This enables digital information to be distributed, but not copied, so each individual piece of data can only have one owner. Blockchain is the underlying technology of digital currencies. But it has a multiplicity of uses.

Many call blockchain a “digital ledger” stored in a distributed network. Here is one way to think about how Blockchain works:

“Picture a spreadsheet that is duplicated thousands of times across a network of computers. Then imagine that this network is designed to regularly update this spreadsheet…”

This information is constantly reconciled into a database, which is stored in multiple locations and updated instantly. That means the records are public and verifiable. Since there’s no central location, it harder to disrupt as the data exists simultaneously in millions of places.

In the service of supply chain management, manifests could be secured with this approach. Modern supply chains are complex. A business’ supply chain consists of all the links to creating and distributing it products. Depending on the goods, a supply chain can be extraordinarily complex, spanning numerous stages with multiple geographical (often global) locations. The documentation can consist of a multitude of invoices, statements, payments, bills of lading, etc., and have several individuals and entities involved. The timeframe, even with just-in-time production, can require months for the process to go from raw materials, component construction and assembly, through packaging and distribution.

The idea of using blockchain to streamline workflows for all parties, no matter the size of the business network, is not new. In government procurement, for example, shared infrastructure provides auditors with greater visibility into participants’ activities along the value chain.

The challenges in many supply chains include lack of transparency because data consolidation clouds repudiation. There's a lack of real-time issue resolution resulting in ineffective supply chain risk management. Shocks (as we have seen) result in sudden demand changes -- a "bullwhip" effect that reverberates throughout the vendor ecosystem.

A use case might look like this: instead of having a central intermediary, use blockchain in an Enterprise Resource Planning (ERP) solution to synchronize data and transactions across the network. Each participant verifies the work and calculations of others. This relives the enormous amount of redundancy and crosschecking found in many current systems.

With the right implementation strategy, blockchain has the potential to drive efficiencies, lower costs, and to enhance consumer experience through transparency and traceability.

How to Make Continuous Delivery a Reality in an Agile Environment

Continuous integration and continuous delivery (CI/CD) are core elements of successful DevOps. Systems engineers may start with CI because it is familiar. With a DevOps focus, organizations uncover configuration, packaging, and orchestration that are necessary to effective software development life cycle (SDLC). This empowers developers, administrators and engineers to create valuable CD practices, adding to agility.

Where less experienced developers might struggle with CI/CD performance, testing delays and other bottlenecks, the enterprise would do well to develop processes and best practices to make DevOps in the cloud a value-driven methodology. To save money, this will shorten the SDLC — because CD is all about updating web services. In public clouds such as AWS and Azure, this is done through pipeline stages (e.g. dev, test, staging and production). When containers are implemented with a platform-as-a-service (PAAS) approach, stages become sandbox environments, scratch instances, and production instances.

The benefit of such an approach is that the work outputs and products themselves benefit from flexibility. Regular face-to-face interactions and collaborations between team members are conducted to ensure the scrum teams level-set expectations. Finally, add value by continuous delivery throughout the life cycle, so that the end product is more secure and more reliable. Implementing an agile manifesto tracks with addressing evolving end user requirements. 

For CD, ensure user stories are married correctly to those requirements and that each story rolls up to an Epic that represents a standalone feature. This enables the devops team to release reasonably sized components of functionality that are consumable by users. These are also traceable back to the release plan. We want to ensure verification at each stage because this process defines acceptance criteria — so the stakeholders know when something is declared “finished.”

Schema, user interface, access control rights and static resources such as icons and images are all part of the creation process and we manage them just as diligently as source code. The DevOps team checks assets into a version control system as a single source of truth (GIT or Subversion). This benefits the client by ensuring that developers are making changes in a segregated environment — catastrophic failures are completely avoided with such approach, and integration into a risk management-based security framework is seamless. 

The organization should understand automated quality processes are essential — Selenium is a go-to tool for testing functionality. There are several verifications to make before functional testing. Static code analysis tools, such as PMD, are essential to ensure code conforms to a single style. Unit test coverage is also essential — establish a set of Key Performance Inidcators (KPIs) for coverage of at least 75% of code. Finally, after these automated tests pass, implement a manual peer review. This enables seasoned developers  to spot opportunities for performance improvement where automated tools can’t.

Project Management Tools - Analog and Digital - Have a Place in Agile

The value of cloud-based task and project management software is obvious -- link teams, keep all information in one place, automate workflow and progress monitoring.

With a good interface, an online tool enables teams to manage Agile projects to plan, assign, prioritize and track tasks efficiently. Use drag 'n drop kanban and backlog/sprint planners for easy and smooth overviews and assignments of tasks.

In the case of scrum, we find there will be multiple sprints. Teams needs to plan quickly for each daily standup. Does this preclude upfront identification of milestones with a WBS? Marrying the two styles is not as incompatible as one might think.  One can use an issue tracker as a to-do list that is focused on accountability. Such issues are the building blocks for progress and can be classified as tasks, bugs, or change requests. Being able to plan out milestones on Gantt charts might seem a strange crossover when applying Agile project management techniques such as Scrum or Kanban. But a timeline-based view of tasks and sub-tasks can aid in communication.

When a project management tool is highly integrated with Git, Subversion, or other code repositories, an integrated workflow is possible. We have found using a wiki to document projects is handy for its simplicity of use.

Read more here...

Why Process is Important to Scale Agile

Using SafeAgile and other lean software development approaches require customization for the organization. It isn’t good enough to just duplicate the efforts of others. Organizational change management means addressing top-down control that is in opposition to change — this will undermine agility.

Each agile team is different and needs to learn what works. In many cases, this means scaling agility outside of functional areas. Breaking down silos is key to the cross-over benefits of agile, reflecting the cross-functional nature of agile. Agility means putting in place defined engineering practices, with process controls.

While daily stand-ups and Kanban boards are important, to build high-quality software quickly, organizations should incorporate automated builds, automated testing, and automated deployments, among other things.

Read more... about SafeAgile

Want a Better Way to Do Things? Start Fresh with Zero Based Design

Want to achieve radical changes in your business? Have you become distracted from long-term goals? Are you too busy putting out fires to look past short-term tactics? Perhaps it is time to consider a shake-up

Zero-based design (ZBD)encourages people to cast aside assumptions to expand the scope of discovery. It comes from the term “zero-based budgeting,” an accounting principle that implies every line item in a budget is to be reevaluated on an annual basis, under the assumption that nothing should be sacrosanct.

The name was first coined by Paul Polak and Mal Warwick in their 2013 book, The Business Solution to Poverty. The authors delineated their methodology for building a business from a frugal, grass-roots “Zero Point,” that grew to deliver economic value on a societal scale.

While ZBD has evolved since 2013, a few activities stay central to its approach:

• Defining the Zero Point: More than a fictitious “blank slate,” the Zero Point is the suite of capabilities, systems, and processes you would keep if you were to rebuild your business all over again.
• Designing the North Star: A clearly articulated and accepted description of the ideal target state is given for the business, its people, and their customers.

With ZBD, it is necessary that the North Star is visionary. It frames the ambition for business and informs the roadmap of labor required to succeed in this best target state. It helps to elevate the thinking within the business and stimulate the proper designing and activity within the short and medium term.

ZBD starts with an observation, then looks for the simplest and most likely explanation. As a result, it can appear foreign to those familiar with the traditional inductive or deductive thinking that permeates business management. It some ways, it resembles the Lean (Toyota) Method for problem-solving.

For example, ZBD practitioners tend to observe human behavior and distill the most likely insights from what they have witnessed. Abductive reasoning is a form of logical inference which starts with an observation or set of observations then seeks to find the simplest and most likely explanation for the observations, and the resulting insights, then inspire designers to generate game-changing ideas and then pose the question “how might we” rather than ask “why can’t we.” Such priming questions are crucial, as they foster the belief that innovative outcomes are achievable and that we can overcome obstacles that would otherwise be considered insurmountable.

Queuing - Single Queue Works, But Why Doesn't Everywhere Do That?

Queuing theory utilizes applied mathematics to deal with the phenomenon of waiting -- arising from the use of mathematical analysis to improve production processes. So why doesn't McDonald's utilize this approach? Customer what times over 90 seconds can be problematic. But perceived wait time is more critical - like page loads in your web browser. If the UI/UX designer has come up with a novel way of loading content, a user will wait out the progress bar. Or, if the content is so compelling (think, your bank account, or cat videos).

But it helps to think of getting your french fry fix take-out as involving a series of work stations, each with a separate task. And each task takes time (e.g. ordering food, instructing workers, retrieving hot fries, putting into packaging food, payment). These stations are generally attended in sequence, and each station takes some time to process one customer. The sequence of stations is a pipeline. But some steps take longer than others -- so building in wait time at certain points actually serves to move the production process along without bottlenecks. McDonalds provides several queues in parallel, the first for ordering and paying, and the second, an (invisible) station where customers wait while their food is gathered and served. The time it takes to cook the food is accounted for in the time taken to gather the food items.

The same analysis can be applied to packet switching with internetworking, or with automobile assembly. For my masters work, I looked at a supplier to a Japanese auto manufacturer -- with a supply chain represented as a multi-input, multi-stage queuing network. An input order to the supply chain was represented by stochastic variables, for the occurrence time and for the quantity of items to be delivered in each order. I had seen such an approach when learning about the (now sunsetted) wide area network at the central bank, where I was involved with information security. A "star" network topology has a central top level node that all other nodes connect to. "Packets" are passed through the central node. This helped me understand alternate ways of queuing -- something I have carried forward with my efforts at automating workflow in Bluedog's SAAS offering, where 'jobs' have to be passed from one stage to another, based on business rules.

The typical first-come, first-serve system of waiting in line is incredibly inefficient, in terms of both time and space. First, it essentially rewards people for wasting their time: Those who arrive first get the goods, but they also spend more hours of their precious time on Earth standing around and waiting. Second, long lines tend to create congestion and bottlenecks that cause problems for others. Think of the traffic jams that form as cars try to leave a football game, or the long boarding line at an airport that snakes across the walkway, getting in everyone else's way.

Read more here... Danish Researcher Report or read this guy's ideas.

Using Process Improvement to Delivery Relief - from Toyota to NYC

Kaizen is all about process improvement. Toyota brought their knowledge of supply chain management to relief efforts in New York City after Hurricane Sandy. The benefits of Toyota Production System in nonprofits is clear: smooth operations, lowered cost, faster turn-around. Non-profit organizations are experiencing increasing client demand, making operational improvements critical to growth and success. Particularly in the food bank arena, issues of timely deliveries to partner agencies mirror warehousing and logistic issues in other industries, making the Toyota Production System (TPS) philosophy and lean principles applicable to this setting.

Watch the video here...