While reading "The Goal", the author clearly states that there are 3 important measurements in a system ( a manufacturing plant, which can be extended to a software delivery team)
- Throughput - Which in a software project would be the No. of story points actually delivered at the end of the cycle (Iteration or Release)
- Operational Expense - Which in a software project would be the cost incurred (eg: billable consultants, development kit etc..) to actually deliver features (or story points)
- Inventory - Which again in a software world would translate to the number of stories sitting in transition states and not yet customer signed off (Eg: In Development, In QA, On Hold).
The more important point is that one cannot improve on one of these measures in isolation.
Why I say it is important, is because in teams delivering software we often tend to focus on "Increasing the team velocity" without looking at how we can actually reduce the number of "Hangover/In Flight stories".
It is also common for teams to actually sign up for more Story Points in an Iteration or Release in order to show improvement in throughput, which results in more stories in hangover because of some unresolved bottleneck.
Why I say it is important, is because in teams delivering software we often tend to focus on "Increasing the team velocity" without looking at how we can actually reduce the number of "Hangover/In Flight stories".
It is also common for teams to actually sign up for more Story Points in an Iteration or Release in order to show improvement in throughput, which results in more stories in hangover because of some unresolved bottleneck.