Talk given at the Scrum Gathering Minneapolis 2018 #SGMSP18 #scrum4hw. The Scrum for Hardware Guide.

1. Tangible Scrum:
The Scrum in Hardware Guide
Fabian Schwartz | 18th of April 2018

2. ScrumColombia.Org
Where does this come from?
2

3. @FabianSchwartz

4. ScrumColombia.Org
City Center – Harmon Hotel (Las Vegas)
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5. ScrumColombia.Org
The Plan
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• Scope: 49 stories luxury hotel
• Cost: US$ 4 billion
• Time: 2006 – 2008
Participants
• Norman Foster
• MGM Resorts
• Dubai World
• Perini
• Pacific Coast Steel
• Etc

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The Result
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§ Scope: 28 stories
§ Cost: US$8.5 Billion
§ Time: 2006 – 2012

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Why did this happen?
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Inadequate communication and
collaboration
Missing precision and efficiency
with critical information
• Dr. Burçin Becerik, Harvard University
• Dr. Peter Love, Curtin University
Collaboration
Critical Information

9. Agenda
1 Uncertainty
2 Scrum in Manufacturing
3 Scrum in Construction
4 Scrum in Oil & Gas
5 Summary
“My concern is
that decision
makers are caught
in traditional,
linear thinking to
think about the
forces of
disruption and
innovation
shaping the
future.”
- Klaus Schwab
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10. ScrumColombia.Org
Cost of Change vs Certainty of Scope
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Costofchangeorsunkcost
Scope
highlow
Well known New to the company
IterativeSequential with
Fast tracking
Front end loadingSequential fases
with Quality Gates

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Fail early
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low
high
timeBeginning End
Cost of
change
Uncertainty
Analysis Specifications Development Test Roll-out

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Fail early
12
low
high
timeBeginning End
Cost of
change
Uncertainty
Analysis Specifications Development Test Roll-out

13. “Where is the uncertainty in your
project?”
13

14. Agenda
1 Uncertainty
2 Scrum in Manufacturing
3 Scrum in Construction
4 Scrum in Oil & Gas
5 Summary
“My concern is
that decision
makers are caught
in traditional,
linear thinking to
think about the
forces of
disruption and
innovation
shaping the
future.”
- Klaus Schwab
14

15. ScrumColombia.Org
Extreme Manufacturing - Wikispeed
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16. ScrumColombia.Org
Extreme Manufacturing - Wikispeed
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Scrum
Organization
Roles & Responsibilities
Iterative Design/Sprints
Make Work Visible
Measure Velocity
Continuous Improvement
XP Engineering Principles
User Stories
Pairing and Swarming
Test Driven Development
Object Orientated
Architecture
Modular Components
Contract-First Design
Design Patterns
Re-use and Inheritance

17. ScrumColombia.Org
Test driven design & module slicing
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Source: Joe Justice, Scrum Inc. & WikiSpeed

18. ScrumColombia.Org
Known stable interfaces
• Underlying structure is a set
of largely independent
modules with pre-defined
interfaces
• Interfaces remain stable,
allowing everything within the
module to change without
impacting other modules
• Enables product design to
“emerge” rapidly in response
to inspect and adapt cycles
• Also supports re-use of the
same module for different
contexts
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Source: Scrum Inc

19. ScrumColombia.Org
Continuous Integration
• We can only plugin after
module has been tested
• Use CAD, CFD etc. to test
integration first
• Automate integration of
multiple modules (e.g.
flexible robots)
• Run through a prepared
checklist of integration
testing
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Source: Scrum Inc

20. ScrumColombia.Org
Takeaway for Scrum in Hardware
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Source: http://wikispeed.org/2017/06/scrum-in-hardware-guide-draft/
Test driven
design
Modules&
Interfaces
Continuous
Integration

21. Agenda
1 Uncertainty
2 Scrum in Manufacturing
3 Scrum in Construction
4 Scrum in Oil & Gas
5 Summary
“My concern is
that decision
makers are caught
in traditional,
linear thinking to
think about the
forces of
disruption and
innovation
shaping the
future.”
- Klaus Schwab
21

22. ScrumColombia.Org
15 stories in 6 days – Mag. 9 resistant
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23. ScrumColombia.Org
Integrating Project Delivery
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Source: Integrating Project Delivery, Martin Fischer, Howard W. Ashcraft, Dean Reed, Atul Khanzode, 2017
Measurable Value
Product Owner defines the
value he expects from the
building in a measurable
way.
The design will then focus
on that value.
Production Management
Production has to use
INTEGRATED processes
and systems.
Key is to produce in small
modules.
Collaboration and Co-location
Teams have to be co-
located (at least per
module) and
multifunctional.
Visualization/Simulation
In order to communicate
effectively and receive
rapid feedback the team
needs a technology that
allows to visualize and
simulate the design of the
building.

24. ScrumColombia.Org
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Source: Integrating Project Delivery, Martin Fischer, Howard W. Ashcraft, Dean Reed, Atul Khanzode, 2017
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Product
Backlog
Sprint
Backlog
Sprint, max 30 días
24 h
Fully
functional
increment
Sprint Planning
Daily Scrum
Sprint Review
Sprint
Retrospective
PO
SM
T
TT

25. ScrumColombia.Org
25
Source: Integrating Project Delivery, Martin Fischer, Howard W. Ashcraft, Dean Reed, Atul Khanzode, 2017
Product
Backlog
Sprint
Backlog
Sprint, max 30 días
24 h
Fully
functional
increment
Sprint Planning
Daily Scrum
Sprint Review
Sprint
Retrospective
PO
SM
T
TT

26. ScrumColombia.Org
26
Source: Integrating Project Delivery, Martin Fischer, Howard W. Ashcraft, Dean Reed, Atul Khanzode, 2017
Product
Backlog
Sprint
Backlog
Sprint, max 30 días
24 h
Fully
functional
increment
Sprint Planning
Daily Scrum
Sprint Review
Sprint
Retrospective
PO
SM
T
TT

27. ScrumColombia.Org
27
Source: Integrating Project Delivery, Martin Fischer, Howard W. Ashcraft, Dean Reed, Atul Khanzode, 2017
Product
Backlog
Sprint
Backlog
Sprint, max 30 días
24 h
Fully
functional
increment
Sprint Planning
Daily Scrum
Sprint Review
Sprint
Retrospective
PO
SM
T
TT

28. ScrumColombia.Org
28
Source: Integrating Project Delivery, Martin Fischer, Howard W. Ashcraft, Dean Reed, Atul Khanzode, 2017
Product
Backlog
Sprint
Backlog
Sprint, max 30 días
24 h
Fully
functional
increment
Sprint Planning
Daily Scrum
Sprint Review
Sprint
Retrospective
PO
SM
T
TT

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Set up time
Single-minute exchange of die (SMED)
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30. ScrumColombia.Org
Takeaway for Scrum in Hardware
30
Source: http://wikispeed.org/2017/06/scrum-in-hardware-guide-draft/
Test driven
design
Co-located
team
Set up time

31. Agenda
1 Uncertainty
2 Scrum in Manufacturing
3 Scrum in Construction
4 Scrum in Oil & Gas
5 Summary
“My concern is
that decision
makers are caught
in traditional,
linear thinking to
think about the
forces of
disruption and
innovation
shaping the
future.”
- Klaus Schwab
31

32. ScrumColombia.Org
Cash Flow in Oil&Gas projects
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Source: A typical E&P cash-flow project based upon the Brazil Fiscal System (Suslick, 2005)

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Cash Flow in Oil&Gas projects
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Source: A typical E&P cash-flow project based upon the Brazil Fiscal System (Suslick, 2005)

34. ScrumColombia.Org
The Drummond Case
Objective: Exploration Caporro
Gas Field
• Starting at the top
• VP is the Product Owner
• Only 1 Product Backlog
• Sprint: 2 weeks
• Executive Team meets every
day for 15 minutes to surface
impediments
• All Scrum Elements are
implemented
• Video Conference for remote
teams
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35. ScrumColombia.Org
Results
• Fastest well ever drilled
before: 10 days
• Average drilling time now: 6
days
• Impediments are resolved
now in hours not weeks
• Increased Motivation
• Increased Transparency
• Increased Focus
• Increased Synchronization of
areas
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36. “Scrum has been a successful
implementation for our organization and
will be implemented in other specific oil &
gas operating teams: drilling, stimulation
and completion, construction of
production facilities.”
― Alberto Garcia, Vice President Hydrocarbons
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37. ScrumColombia.Org
Scale-Free Architecture
• If you want to scale
exponentially you need a
“scale-free” architecture
• Otherwise you risk introducing
waste into the system and
slowing the whole organization
down
• You will not achieve linear
scalability
• Scale-free architectures are
pervasive in biology (ex.
neural networks)
• They are able to evolve to
perform new functions more
rapidly than an alternative
network design
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Source: http://chronicle.uchicago.edu/061207/darwin.shtml

38. ScrumColombia.Org
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Source: https://www.scrumatscale.com
Scrum@Scale

39. ScrumColombia.Org
Takeaway for Scrum in Hardware
39
Source: http://wikispeed.org/2017/06/scrum-in-hardware-guide-draft/
Test driven
design
Scaling
Set up time

40. Agenda
1 Uncertainty
2 Scrum in Manufacturing
3 Scrum in Construction
4 Scrum in Oil & Gas
5 Summary
“My concern is
that decision
makers are caught
in traditional,
linear thinking to
think about the
forces of
disruption and
innovation
shaping the
future.”
- Klaus Schwab
40

41. ScrumColombia.Org
The Scrum in Hardware Guide
41
Source: http://wikispeed.org/2017/06/scrum-in-hardware-guide-draft/
Start where uncertainty is high

42. ScrumColombia.Org
The Scrum in Hardware Guide
Test driven
design
Modules&
Interfaces
Scaling
Co-located
team
Continuous
Integration
Set up time
42
Source: http://wikispeed.org/2017/06/scrum-in-hardware-guide-draft/
Start where uncertainty is high

43. ScrumColombia.Org
The Scrum in Hardware Guide
Test driven
design
Modules&
Interfaces
Scaling
Co-located
team
Continuous
Integration
Set up time
43
Source: http://wikispeed.org/2017/06/scrum-in-hardware-guide-draft/
Start where uncertainty is high
Have a working product at the end of each Sprint!

44. ScrumColombia.Org
Credits
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Dr. Jeff Sutherland
Co-creator of Scrum
JJ Sutherland
CEO, Scrum Inc
Joe Justice
Founder Wikispeed
Dr. Raymond Levitt
Professor - Stanford
University
Nynke Bell
Continuous Improvement,
Shell
Paolo Samichelli
Klimsoft, CEO

45. ScrumColombia.Org
+ 57 321 43 43 553
scrumcolombia.org
Fabian Schwartz | CEO
fabian@casmena.com
@fabianschwartz
Questions
https://co.linkedin.com/in/fabianschwartz
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