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Team Performance 2

Last updated Feb 9, 2023

# Introduction

The development of an ERP interface is a complex task, requiring significant resources and time. The ERP Interface Team, consisting of six engineers, was tasked with building a new ERP interface for the company’s product. The initial delivery time forecast was four months, which the team sought to improve. The goal of this case study is to outline the methods used by the Engineering Manager to increase the delivery speed of the ERP Interface Team by 60%.

# Background

In today’s fast-paced business environment, companies are constantly looking for ways to improve their delivery times. In the case of the ERP Interface Team, the challenge was to deliver the new interface as soon as possible. To achieve this goal, the Engineering Manager used a new tool to visualize insights into the delivery process, enabling the team to identify areas of improvement.

# Methods

The Engineering Manager introduced a new tool to help the team identify bottlenecks in the delivery process. By analyzing cycle time, inventory sizes, and wait times for code review and deployment, the team was able to shorten review and deploy times, nearly double throughput, and reduce work item inventories. These improvements resulted in a delivery time of 2.5 months, a 60% improvement over the initial forecast.

# Results

The team’s success inspired another team to follow their example, resulting in a 45% improvement in their own delivery speed. The Engineering Manager gave a presentation to the company, detailing the team’s efforts, results, and the tool used to achieve these results. This led to negotiations with the vendor to roll out the tool across the entire company.

# Discussion

The results of this case study demonstrate the impact that process improvements can have on delivery speed. By using a new tool to visualize insights into the delivery process and by making improvements to cycle time, inventory sizes, and wait times, the ERP Interface Team was able to significantly increase their delivery speed. This case study also highlights the importance of collaboration and support from other teams in achieving organizational goals.

# Conclusion

In conclusion, the methods used by the Engineering Manager and the ERP Interface Team led to a 60% improvement in delivery speed. The success of this initiative inspired other teams within the organization to adopt similar methods, leading to additional improvements in delivery speed. These results demonstrate the importance of continuous improvement and the impact that process improvements can have on delivery speed.

# Appendix

# Cost-Benefit Analysis

The implementation of the new tool and processes for tracking and improving delivery speed came with a cost, but also brought significant benefits. The cost of the tool was $5/person on the team/month, for a team of 6 engineers, this amounted to $30/month or $360 per year.

However, by reducing the delivery time by 1.5 months, the company was able to save on the salary costs of the engineering team. With an average base salary of $70,000 per team member, the total salary cost savings would amount to $52,500 (6 x 70,000 / 12 x 1.5).

The net benefit of implementing the tool and processes is therefore $52,140 ($52,500 - $360). This is a significant financial gain for the company and demonstrates the value of analyzing and improving processes, as well as the importance of tooling to support these efforts.

In addition to the financial benefits, the increase in delivery speed also improved the company’s ability to respond to market demands and meet customer needs more efficiently, potentially leading to increased customer satisfaction and loyalty. These benefits are more difficult to quantify, but should not be ignored.

Overall, the cost-benefit analysis shows that investing in tooling and process improvement can lead to substantial financial gains, as well as other benefits that can contribute to the success of the company.

# See also

Goodharts Law Little’s Law