Gary Palmer Critical Point Consulting 1

Gary Palmer
Critical Point Consulting
1
Critical Point Consulting
www.criticalpoint.co.uk
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This document is the Intellectual Property of
Critical Point Ltd
This document is supplied for the personal use of
the recipient and is not to be copied, edited,
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without the prior permission of Critical Point Ltd.
2
Critical Point Consulting
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What do we mean by ‘Project Failure’?
Late
Over Budget
Below Specification
Below Quality
3
Critical Point Consulting
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Why do we need to change? - 1
Late
Over Budget
Below Specification
Below Quality
4
Critical Point Consulting
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Why do we need to change? - 2
Productivity & Throughput:
Often Low
Excessive Wastage
Slow Progress
Costly
5
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Why do we need to change? - 3
Business Impact:
Product Expensive
Late to Market
Customer Dissatisfaction
Reputation
Project Failure & Slow Costly Projects Cripples Business
6
Why do we continue to have poor project performance?
1. The traditional methods in use,
VIRTUALLY GUARANTEE these results.
2. We have not had a viable alternative.
Until now…
7
Critical Point Consulting
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Critical Point Consulting
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Critical Chain Project Management
CCPM Statistics:
Project Delivery:
90%+ on time
Project Completion: 20% - 50% Faster
Productivity:
20% - 60% Increase
Throughput:
50% - 200% Increase
Without increasing resources
8
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How Does CCPM Deliver These Improvements?
By resolving:
Endemic problems in Traditional Proj. Mgmt
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Critical Point Consulting
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What is CCPM?
‘A set of interlinked techniques and tools that work
individually and collaboratively to significantly
improve the processes and operation of scheduling
and execution in project, programme and portfolio
environments’
10
Critical Point Consulting
www.criticalpoint.co.uk
What is CCPM?
‘A set of interlinked techniques and tools that work
individually and collaboratively to significantly
improve the processes and operation of scheduling
and execution in project, programme and portfolio
environments’
Techniques: Working practices, Behaviours
Tools: Processes, Software
11
Critical Point Consulting
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What is CCPM?
‘A set of interlinked techniques and tools that work
individually and collaboratively to significantly
improve the processes and operation of scheduling
and execution in project, programme and portfolio
environments’
Individually: Resolve a specific problem
Collaboratively: In unison to support the whole
12
Critical Point Consulting
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What is CCPM?
‘A set of interlinked techniques and tools that work
individually and collaboratively to significantly
improve the processes and operation of scheduling
and execution in project, programme and portfolio
environments’
Improvements: Efficient processes
Faster operation
13
Critical Point Consulting
www.criticalpoint.co.uk
What is CCPM?
‘A set of interlinked techniques and tools that work
individually and collaboratively to significantly
improve the processes and operation of scheduling
and execution in project, programme and portfolio
environments’
Scheduling: Optimum, realistic schedule
Effective contingency protection
Execution: Efficient working practices
Excellent progress visibility, focus, control
14
Critical Point Consulting
www.criticalpoint.co.uk
What is CCPM?
‘A set of interlinked techniques and tools that work
individually and collaboratively to significantly
improve the processes and operation of scheduling
and execution in project, programme and portfolio
environments’
Projects: Single projects
Programme: Multi-project
Portfolio: Enterprise-wide
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Traditional Project Management
The Five Elements of Failure
So, what are the problems in Traditional Proj. Mgmt.?
Deadline
Schedule
Task-Level
Contingency
Poor Measures
& Control
Critical Path
Multi-tasking
16
Critical Point Consulting
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Traditional Project Management
The Five Elements of Failure
Deadline
Schedule
Task-Level
Contingency
Poor Measures
& Control
Critical Path
Multi-tasking
17
Critical Point Consulting
www.criticalpoint.co.uk
Traditional Project Management
Task Deadline Scheduling – Planning to Fail
09/09
22/09 23/09
1/10
13/10
Planned Completion
13/09
1/09
09/09 10/09
10/09
22/09
14/09 15/09
14/09 15/09
23/09
22/09 23/09
20/09 21/09
03/10
04/10
30/09 1/10
09/10
13/10
15/10
06/10 07/10 13/10
Attempt to impose a Rigid construct on a Variable situation
Actual dates will always change
… and will need constant and continued updating
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Traditional Project Management
Task Deadline Scheduling – Planning to Fail
Shouldn’t early and late finishes balance out?
Usually not.
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Critical Point Consulting
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Traditional Project Management
Task Deadline Scheduling – Planning to Fail
Potential
Early Finish
Deadline
Date
Task
Missed
Time-Saving
Parkinson’s Law – ‘Work expands to fill the time available’
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Critical Point Consulting
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Traditional Project Management
Task Deadline Scheduling – Planning to Fail
Late Finish
Adds Time
Planned
5 days
7 days
Early Finish
Gain Lost
✓
3d
5 days
✓
5 days
5 days
5 days
✓
5 days
5 days
2 days added
to schedule
No benefit
to schedule
Parallel Converging Tasks tied to schedule dates
Losses Accumulate - Gains Don’t
…And the schedule moves out
21
Critical Point Consulting
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Traditional Project Management
Task Deadline Scheduling – Planning to Fail
Summary
Dates attempt a rigid structure on a variable situation
Parkinson’s Law often prevents early finishes
Losses increase time and costs, not offset by gains
Schedule is guaranteed to require frequent changes
Project end-date slip is almost inevitable
22
Critical Point Consulting
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Critical Chain Project Management
The Five Elements of Success
CCPM
Schedule
Task-Level
Contingency
Poor Measures
& Control
Critical Path
Multi-tasking
23
Critical Point Consulting
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09/09
22/09 23/09
13/09
1/09
09/09 10/09
10/09
22/09
14/09 15/09
14/09 15/09
23/09
22/09 23/09
20/09 21/09
1/10
03/10
Critical Point Consulting
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13/10
04/10
30/09 1/10
09/10
13/10
15/10
06/10 07/10 13/10
Why use dates if we know that they are going to change?
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CCPM Schedule
09/09
13/09
1/09
30/12
10/09
No Internal Due Dates / Deadlines
Schedule is used only as a Dependency Chart
Each task completes asap and next task is started
No schedule updating necessary
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Critical Point Consulting
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CCPM Schedule
Potential
Early Finish
Deadline
Date
Task
So now, without deadlines to fuel Parkinson behaviours,
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Critical Point Consulting
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CCPM Schedule
Potential
Early Finish
Deadline
Date
Task
So now, without deadlines to fuel Parkinson behaviours,
Our potential Early Finish…
27
Critical Point Consulting
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CCPM Schedule
Potential
Early Finish
Task
So now, without deadlines to fuel Parkinson behaviours,
Our potential Early Finish…
28
Critical Point Consulting
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CCPM Schedule
Actual
Early Finish
Task
…can become a reality.
29
Critical Point Consulting
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CCPM Schedule
Saves time across the whole project
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Critical Point Consulting
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CCPM Schedule
Shorter Task Execution = Reduced Time & Costs
Faster and Cheaper Projects
31
Critical Point Consulting
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CCPM Schedule
Summary
No internal due dates
Work carried out on an ‘as soon as possible’ basis
‘Relay Race’
Early finishes reduce timescales & cost
Flexible structure for a variable environment
No due-dates mean no schedule dates to update
32
Critical Point Consulting
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Traditional Project Management
The Five Elements of Failure
CCPM
Schedule
Task-Level
Contingency
Poor Measures
& Control
Critical Path
Multi-tasking
33
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Task-Level Contingency
Confidence in own ability
Familiarity with technology
Familiarity with task
Interruptions
Multi-tasking
Complexity of the task
How Much
Contingency?
Known Unknowns
Specification Stability
Easy Life
Fear of Failure
Estimate chopping
Confidence in Spec.
Unknown Unknowns
34
Task-Level Contingency
Effect 1- An Extended Schedule
Self-protection encourages fat estimates
A project may contain > 50% embedded contingency
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Task-Level Contingency
Effect 2 – Student Syndrome
Scheduled
Start
Deadline
Date
Work
Contingency
Actual
Start
Initially plenty of contingency
No incentive to start immediately
Start deferred
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Task-Level Contingency
Effect 2 – Student Syndrome
Scheduled
Start
Deadline
Date
Work
Actual
Start
Contingency decreased
37
Critical Point Consulting
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Task-Level Contingency
Effect 2 – Student Syndrome
Scheduled
Start
Deadline
Date
Work
Other
work
Big
Problem
Maybe another task is required / preferred
Now no contingency left and work is rushed
Then a big problem surfaces…
38
Critical Point Consulting
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Task-Level Contingency
Effect 2 – Student Syndrome
Scheduled
Start
Deadline
Date
Work
Other
work
Big
Problem
And now we have a task over-run…
39
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Task-Level Contingency
Effect 3 – Unprotected Project End-Date
Planned Completion
Delayed Completion
If on a Critical Path task = project over-run
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Task-Level Contingency
Effect 4 - Unmanaged Time
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Critical Point Consulting
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Task-Level Contingency
Effect 4 – Unmanaged Time
Where is the contingency?
How do you measure and manage it?
42
Critical Point Consulting
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Traditional Project Management
Task-level Contingency
Task-Level Contingency - Problem Cascade
Self-Protection leads to
Inflated ‘Localised’ Estimates which generate
Long, Over-padded Schedules which encourages
Parkinson’s Behaviours and
Student Syndrome which results in
Slow and Costly Projects which are still
Unprotected From Delays and which have
Hidden, Unmanaged Contingency
43
Critical Point Consulting
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Critical Chain Project Management
The Five Elements of Success
CCPM
Schedule
Project-Level
Contingency
Poor Measures
& Control
Critical Path
Multi-tasking
44
Critical Point Consulting
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CCPM Project-Level Contingency
Traditional Task-Level Contingency (Review)
High Levels of Embedded Contingency
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CCPM Project-Level Contingency
Remove task-level contingency
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Critical Point Consulting
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CCPM Project-Level Contingency
Remove task-level contingency
Task Estimates have no in-built contingency
Estimates are based on ‘Aggressive-but-possible’ task times
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Critical Point Consulting
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CCPM Project-Level Contingency
Remove task-level contingency
Shorter Task Durations & much reduced timeline
No space for Parkinson or Student Syndrome
But where is our contingency now?
48
Critical Point Consulting
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CCPM Project-Level Contingency
Aggregate Contingency
Project
Commit
Date
Project Buffer
Buffer protects the Project – not individual tasks
Provides the project Commit Date
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Critical Point Consulting
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CCPM Project-Level Contingency
Project Protection
Project
Commit
Date
Project Buffer
Critical Task over-runs are absorbed by the Buffer
The Project ’Schedule’ remains unchanged
The Project Commit Date is not affected
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Critical Point Consulting
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CCPM Project-Level Contingency
Project Protection
Project
Commit
Date
Buffer
Status
Project Buffer
Buffer Status shows the impact on contingency
And we are able to measure and manage our contingency
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Critical Point Consulting
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CCPM Project-Level Contingency
Project Protection
Project
Commit
Date
Buffer
Status
Project Buffer
If a Critical Task finishes early…
The time saved is ‘added back’ into our contingency
Buffer Status always shows the latest position
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Critical Point Consulting
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CCPM Project-Level Contingency
Project-Level Contingency Cascade
Aggregated Uncertainties are built into a
Project Contingency which results in
Streamlined Schedules with
Visible, Manageable Contingency which prevents
Parkinson’s Behaviours and
Student Syndrome which results in
Fast and Efficient Projects which are
Protected From Delays and
Do not require Schedule Changes
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Critical Point Consulting
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Traditional Project Management
The Five Elements of Failure
CCPM
Schedule
Project-Level
Contingency
Poor Measures
& Control
Critical Path
Multi-tasking
54
Critical Point Consulting
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Traditional Project Management
Critical Path – A dangerous path to follow?
Task E
Task A
Task B
Task F
Task G
Task H
Task I
Task C
Task D
Task J
Critical Path ignores resources
Critical Path based ONLY on task dependency & duration
Valid only in an environment without resource constraints
But what happens if we have resource contentions?
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Critical Path Problems
Resource Contentions
Task E
Task A
Task B
Task F
Task G
Task H
Task I
Task C
Task D
Task J
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Critical Path Problems
Post–CP Resource Levelling
Task F
Task E
Task A
Task B
Task H
Task I
Task C
Task D
Task G
Task J
Levelling resolves the issue… but increases timescales
And the vision of the Critical Path dominates
…and so tactical manoeuvres soon start...
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Critical Path Problems
Avoidance Tactics 1- Multi-Tasking
Task E
Task H
Task A
Task B
Task D
Task J
Quality may be reduced
Predictability becomes less certain
Work becomes fragmented and control less easy
But because Multi-tasking takes longer…
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Critical Path Problems
2 - Overtime
Task E
Task H
Task A
Task B
Task D
Task J
…Extra hours need to be worked
Scheduling becomes difficult
And Control starts to ebb away
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Critical Path Problems
Slippage
Task E
Task H
Task A
Task B
Task D
Task J
Multi-tasking is high risk
High potential for slippage
Diminishing returns due to staff morale / burnout
Schedule long since become unmanageable
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Scope Cut
Scope Cut
Critical Path Problems
Scope Cut
Task E
Task A
Task B
Scope Cut
Task H
Task D
Task J
Last resort to hit target date is a Scope Cut
May cause work in other areas
Further degrades quality
‘Project Meltdown’
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Critical Point Consulting
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Critical Path Cascade
Traditional Project Management
Critical Path Problems
Ignoring Resources Contentions leads to an
Incorrect Dependency Path often with
Unrealistic Completion Dates and
Misleading Priorities which encourages a spiral of
Fire-fighting tactics which leads to an
Out of Control Project with an
Unstable Schedule which needs
Frequent Changes
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Critical Chain Project Management
The Five Elements of Success
CCPM
Schedule
Project-Level
Contingency
Poor Measures
& Control
Critical Chain
Multi-tasking
63
Critical Point Consulting
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CCPM Critical Chain
1. Build Dependency Network As Normal
Task E
Task A
Task B
Task F
Task G
Task H
Task I
Task C
Task D
Task J
Include Resource Requirements
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CCPM Critical Chain
2. CCPM Software - Resource Levelling
Task E
Task H
Task A
Task G
Task F
Task B
Task I
Task C
Task D
Task J
Prevents over-allocation of resources
65
Critical Point Consulting
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CCPM Critical Chain
3. CCPM Software - Identify the Critical Chain
Task E
Task H
Task A
Task G
Task F
Task B
Task I
Task C
Task D
Task J
CCPM treats Resource Constraints as dependencies…
…which changes the project priority path
Priority sequence ‘jumps’ to resource dependencies
A realistic critical sequence – The Critical Chain
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Critical Chain / Critical Path Comparison
Task E
Task H
Task A
Task G
Task F
Task B
Task E
Task I
Task C
Task F
Critical Chain
Task D
Task J
Task G
Critical Path
Task H
Task A
Task B
Task C
Task I
Task D
Task J
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Critical Point Consulting
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CCPM Critical Chain
Critical Chain Cascade
Including Resources Contentions leads to a
Correct Dependency Path with
Realistic Project Duration and
Realistic Priorities which provides a
Project Under Control with a
Stable Schedule that
Does not need changes
68
Critical Point Consulting
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Traditional Project Management
The Five Elements of Failure
CCPM
Schedule
Project-Level
Contingency
Poor Measures
& Control
Critical Chain
Multi-tasking
69
Critical Point Consulting
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Traditional Project Management Multi-tasking:
The Illusion of being productive
Time
Without Multi-tasking:
Task 1: 9 days
With Multi-tasking:
3d
3d
Task 2: 9 days
Task 3: 9 days
Day 9
3d
27 Days
Day 23
3d
• Everything is late.
Task 1: +14 days late(+155%)
Task 2: + 8 days late (+42%)
Task 3: +2 days late (+22%)
3d
3d
3d
3d
3d
29 Days
• Nothing gets completed until day 23.
2 days added to overall duration.
Quality likely to be poorer.
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Summary
Traditional Project Management Multi-tasking:
The Illusion of being productive
It slows everything down
It reduces quality
It wastes time and costs more
It is bad for morale
It complicates scheduling & control
It removes planning predictability
It causes delivery delays
Multi-tasking; The SINGLE best way…
…to screw up TWO JOBS.
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Critical Point Consulting
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Critical Chain Project Management
The Five Elements of Success
CCPM
Schedule
Project-Level
Contingency
Poor Measures
& Control
Critical Chain
Single-tasking
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CCPM - Task Management
Single Tasking
One task only worked on at a time
No interruptions
Dedicated work until complete
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Critical Point Consulting
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CCPM Single Tasking
The reality of being productive
Time
Without Multi-tasking:
Task 1: 9 days
Task 2: 9 days
Task 3: 9 days
27 Days
Critical Point Consulting
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CCPM Single Tasking
Can Multi-tasking be removed?
‘Good’ Multi-Tasking
Non-Project / background, no dependencies or deadlines.
Training/education. QA tasks. Flexi-time.
‘Bad’ Multi-Tasking
‘Double-booked’ on overlapping tasks.
Covering Additional / Support roles.
‘Ugly’ Multi-Tasking
Personnel allocated simultaneous project tasks.
Endemic, cultural.
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Critical Point Consulting
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CCPM Single Tasking
Summary
It improves quality
It reduces time & money spent
It simplifies scheduling & control
It enables planning predictability
It is good for morale
It speeds everything up
76
Critical Point Consulting
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Traditional Project Management
The Five Elements of Failure
CCPM
Schedule
Project-Level
Contingency
Poor Measures
& Control
Critical Chain
Single-tasking
Multi-tasking
77
Critical Point Consulting
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Traditional Project Management
Progress Measurement
Use of ‘Percentage Complete’:
Report to expectation – no bad news to give
Can’t be challenged – only task owner knows
Often simply aligned with time used
Optimism that time can be pulled back
Reality is often ignored - An easy place to hide
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Critical Point Consulting
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Traditional Project Management
Progress Measurement
Measurements -
Percentage Complete, Time / money used / left
Position against base line, Milestones achieved…
What do they tell us?
How much time/money used - Retrospective
What do they tell us about the future?
Very little…
What is the Only Question PM’s get asked?
79
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Traditional Project Management
Progress Measurement
Are we on target?
What do we really need to know?
How exposed are we?
Have we got enough safety in hand?
Is there a trend?
Is it upward or downward?
Should we be taking any action?
Where should we be taking action?
80
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Summary
Traditional Project Management
Progress Measurement
Often not a true / realistic picture
Real Status / safety contingency is hidden
False sense of schedule security
Leads to persisting ‘90% complete’ / late-emerging issues
Can cause major / incorrect re-scheduling
Doesn’t answer the Big Question
81
Critical Point Consulting
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Critical Chain Project Management
The Five Elements of Success
CCPM
Schedule
Project-Level
Contingency
Good Measures
Visible Control
Critical Chain
Single-tasking
Multi-tasking
82
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CCPM Progress Measurement
CCPM Progress Reporting:
Frequent – daily
Is task complete?
If not, how much task-time left remaining?
83
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CCPM Progress Measurement
‘Critical Chain’ Completed
✓
A
E
B
C
✓
✓
F
D
Critical Chain completed reported into CCPM software
84
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CCPM Progress Measurement
Contingency Buffer Usage
A
E
F
+3
B
C
+3
D
✓
85
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CCPM Progress Measurement
Contingency Buffer Usage
Buffer
Used
Buffer
Remaining
+3 +3
A
E
F
+3
B
C
+3
D
✓
Task C has no effect on buffer
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CCPM Progress Measurement
Contingency Buffer Usage
Buffer
Used
Buffer
Remaining
+3 +3 +5
A
E
F
+3
B
C
+3
D
+5
Early report from task D that an additional 5 days will be required
This report also feeds into the Buffer usage
Provides early notification of expected position
87
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CCPM Progress Measurement
Now we have two key measurements:
Amount of critical work completed: Critical Chain
How much contingency remaining: Project Buffer
Put these two together…
88
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CCPM Progress Measurement
The Fever Chart
Singular
Objective
Predictive
Easily interpreted
Auto constructed
Up-to-date
Immediate
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CCPM Progress Measurement
Summary - 1
Daily Reporting:
Progress is always up-to-date
Project position is always up-to-date
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CCPM Progress Measurement
Summary - 2
‘Remaining Duration’ Reporting:
More accurate / realistic picture
Focusses the task worker
Real Status / safety contingency is visible
Persisting ‘90% complete’ syndrome banished
Prevents late-emerging issues
91
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CCPM Progress Measurement
Summary - 3
Fever Chart:
Combined view of progress and contingency
Trends provide early warning
Objective, singular, visual, always available
Prevents unnecessary schedule changes
Answers the Big Question!
92
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Critical Chain Project Management
The Five Elements of Success
So, have we fixed all of the problems?
CCPM
Schedule
Project-Level
Contingency
Good Measures
Visible Control
Critical Chain
Single-tasking
Multi-tasking
Yes – but not just 5 problems, CCPM fixes 2 more as well.
93
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Critical Point Consulting
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The Ever
Changing
Schedule
94
Traditional Project Management
The Five Problems
Task-Level
Contingency
Poor Measures
& Control
Deadline
Schedule
Critical Path
Multi-tasking
What other problem is common to each of these? 95
Critical Point Consulting
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Traditional Project Management
Schedule
Changes
Task-Level
Contingency
Schedule
Changes
Poor Measures
& Control
Deadline
Schedule
Critical Path
Schedule
Changes
Schedule
Changes
Multi-tasking
Schedule
Changes
Each individual issue causes schedule changes
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CCPM Schedule Stability
Project-Level
Contingency
Rem. Duration
Visible Control
CCPM
Schedule
Critical Chain
Single-tasking
Each CCPM element fixes individual problems AND
removes the causes of Schedule Changes
97
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Vicious
Circles
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Traditional Project Management
Schedule
Changes
Task-Level
Contingency
Schedule
Changes
Poor Measures
& Control
Deadline
Schedule
Critical Path
Schedule
Changes
Schedule
Changes
Multi-tasking
Schedule
Changes
But…Not only does each problem area cause schedule
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changes…
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Traditional Project Management
Schedule
Changes
Task-Level
Contingency
Schedule
Changes
Poor Measures
& Control
Deadline
Schedule
Critical Path
Schedule
Changes
Schedule
Changes
Multi-tasking
Schedule
Changes
Each individual problem area perpetuates others 100
Critical Point Consulting
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Traditional Project Management
Self-Perpetuation
Schedule
Changes
Task-Level
Contingency
Schedule
Changes
Poor Measures
& Control
Deadline
Schedule
Critical Path
Schedule
Changes
Schedule
Changes
Multi-tasking
Schedule
Changes
Locked-in to self-perpetuating systemic failure
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CCPM Schedule Stability
Project-Level
Contingency
Rem. Duration
Visible Control
CCPM
Schedule
Critical Chain
Single-tasking
CCPM removes the causes of individual problems,
constant schedule changes and systemic failure
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Seven Problems of Traditional PM…
…and the Seven Solutions of CCPM
Traditional v’s CCPM – Overall Summary
Traditional Problems:
CCPM Solutions:
Deadline Scheduling
Flexible Scheduling
Task-Level Contingency
Project-Level Contingency
Critical Path
Critical Chain
Multi-tasking
Single-tasking
Poor Measures & Control Good Measures & Control
Schedule Volatility
Schedule Stability
Problem Perpetuation
Solution Constancy
+ Poor Work Environment + Good Work Environment
= ‘Terminal Mediocrity’
= ‘Progressive Excellence’
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Programme
& Portfolio
Myth
Achieving Terminal
Mediocrity on a
Large Scale
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CCPM in Programme and Portfolio
Environments
The Programme & Portfolio Myth
1. That the more projects you start, the more you will get done
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Overlapping Projects + Overloaded Resources
Project 1
KR
Project 2
KR
KR
Project 3
KR
KR
KR
Key Resource
Projects stopped by resource contention
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Overloaded Programme
1. Project Fragmentation
Project 1: 9mths
Project 2: 9mths
Project3: 9mths
27 mths
mth 9
mth 23
Project Fragmentation:
3mths
3mths
3mths
3mths
3mths
3mths
3mths
3mths
3mths
30 mths
Overloading can lead to project fragmentation
Fragmentation delays all projects
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Overloaded Programme
2. Increased Exposure to Change
Project 1: 9 mths
Project 2: 9mths
Project3: 9mths
27 mths
9 mths
21 mths
3mths
3mths
3mths
3mths
3mths
3mths
3mths
3mths
3mths
30 mths
Longer elapsed time gives more exposure time for changes
Changes generate more work and extend projects
Meanwhile unfinished work gets ‘rusty’
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Overloaded Programme
3. Generates Multi-tasking
Reality at Working Level
Perception
Project 1
Project 2
Project 3
Overloading creates multi-tasking at the working level
Causes constant schedule changes
Causes fighting for resources
Slows all projects
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Overloaded Programme
4. Loss of Completion Predictability
Plan
Reality
Project 1
?
Project 2
?
Project 3
?
Multi-tasking leads to Fragmentation
Fragmentation makes completion unpredictable
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Summary
Traditional Project Management
Overloaded Programme
Project fragmentation causes delays
Increased exposure to changes
Drives multi-tasking
Competition for Resources
Loss of Planning Predictability
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The Programme & Portfolio Myth
1. That the more projects you start, the more you will get done’
… You won’t
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The Programme & Portfolio Myth
1. That the more projects you start, the more you will get done
… You won’t
So what can we do to improve this?
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CCPM in Multi-Project Environment:
Maximising Throughput
Recognise that:
Increasing work in progress slows throughput
Decreasing work in progress speeds up throughput
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CCPM in Multi-Project Environment:
Maximising Throughput
‘Reducing Work in Progress:
Reduce & Limit ‘In progress’ projects to optimum
‘Stagger’ new project starts
Implement a ‘Pull’ System: not a ‘Push’ System
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Overlapping Projects + Overloaded Resources
“It’s all TOP PRIORITY”
Project 1
KR
Project 2
KR
KR
Project 3
KR
KR
KR
Key Resource
Projects stopped by resource contention
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Stagger Project Starts on Key Resource
Project 1
KR
Project 2
KR
KR
Project 3
KR
KR
KR
Key Resource
Stagger projects = faster completions
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Summary
CCPM in Multi-Project Environment:
Maximising Throughput
Reducing WIP accelerates throughput
Staggering starts reduces key resource contention
Multi-tasking greatly reduced
Competition for resources reduced
Planning predictability restored
Increased throughput improves profitability
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It’s what you finish…
…not what you start.
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CCPM Programme Management
The Programme Fever Chart
Singular
Objective
Predictive
Easily interpreted
Auto constructed
Up-to-date
Immediate
Image copyright of Exepron used with permission from Dux Global Inc.
Programme Fever Chart focusses on projects that need attention
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The Evidence
for CCPM
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Companies Using CCPM - 1
High Tech
3M
Advasense Technologies
Agilent Technologie
AMCC
AMD
Avaya
Avitronics
Barco
Bell Canada
BT Radianz
Computer Sciences Corp
Cray, Inc.
ECI Telecom Ltd.
Eclozion Informatique
Ericsson
Estonian Telephone
Fairchild Semiconductor
Graftech
Hewlett Packard
Hitachi Computer Products
Honeywell
IBM
Ismeca Europe Semiconductor
ITT Canon
L-3 Communication Systems
LSI Logic
Lucent Technologies
Marvell
High Tech /
Medtronic, Inc.
Microsoft
Motorola
Numonyx
Philips Semiconductors
Pioneer
Qualcomm
RSA Security
SanDisk
Sapient
Seagate Technology LLC
Sony Ericsson
Spirent Communications
Sprint
Sun Microsystems
Symbian
Tadiran Spectralink
Tektronix
TT Technologies
Tundra Semiconductor
Workscape
Xerox Corporation
Business Education
Ashridge Management College
Project Management Institute
London Business School
+ Over 160 Universities
Life Sciences
Abbott Labs
Adirondack Surgery
AHIS-St. Vincent Health
AMGEN
Andover Healthcare Inc.
Arterain Medical
Baxter
Boston Scientific
Central Dupage Health
Bovis Pharmaceuticals
Converge Medical Inc.
Cytori Therapeutics, Inc.
Edwards Lifescience
Ethicon
Gambro Healthcare
GlaxoSmithKline
Johnson & Johnson
Medtronic
Merck Medco Managed Care
Pfizer
Pharmacia
Roche Diagnostics
Spectranetics
Tenet Health Care
Tyco Healthcare
United Behavioral Health
Vascore Medical
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Companies Using CCPM - 2
Aerospace and Defense
Aerojet Corporation
Air Force Institute of Tech.
BAE Systems
The Boeing Company
General Dynamics
Halliburton
ITT Space Systems
Lockheed
NASA
Northrop Grumman
Portsmouth Naval Shipyard
Puget Sound Naval Shipyard
Raytheon
SAAB Avionics
US Air Force
Consumer Products
Coca-Cola
Colgate Palmolive
Del Monte Foods
Fonterra
Gillette
Heineken
IKEA
Kraft Foods
McKee Foods
Nike
Philip Morris
Industrial
ABB
Accoat
Advanced Energy Technology
Alcan
Alfa Lava
American Rubber Products
Applied Plasmonics
AREVA
Atomic Energy of Canada .
Balfour Beatty
Bimba Manufacturing
Bosal
Bosch Rexroth Ltda.
Brice Manufacturing
BVR Technologies Company
C.F. Roark Welding.
Callaway Golf
Celite Corporation s
Conoco
Corning Cable Systems
Cueros Industrializados
DaimlerChrysler UK
Danfoss
Delta Faucet Company
Detroit Diesel Reman-West
DuPont
Eastman Kodak Company
Industrial/
ExxonMobil Chemical
Fisher Controls
Fluid Brasil Sistemas
Fluke Corporation
Fuel Cell Energy
GE Industrial Systems
Hach
Honda
ITT Corporation
Kawasaki Heavy Industries,
M&M Precision Systems
Marshall Industries
Merichem Chemicals
Milwaukee Forge
Rail care
Raychem
Rolls Royce
Siemens
Sylvania
Unilever
Tata
UPC Technology
Volvo
Source:TOC International, Gatlinburg,
123 TN.
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Some Results:
Japanese Government
After having used it in 2,523 public works projects in 2007
and over 4,000 public works projects in 2008, the Japanese
government has recommended that critical chain project
management “be used on all projects henceforth
(approximately 20,000 projects per year).”
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Professional Recognition
Association for Project Management
APM Body of Knowledge.
"An alternative to creating networks based on activity dependencies is to use a
technique called critical chain. This method considers the availability of resources
and the interdependencies between resources.“ - APM Body of Knowledge 6th edition (2012) p 155
Project Management Institute
PMI Body of Knowledge
“Critical chain is a schedule network analysis technique that modifies the project
schedule to account for limited resources. Initially, the project schedule network
diagram is built using duration estimates with required dependencies and defined
constraints as inputs. The critical path is then calculated. After the critical path is
identified, resource availability is entered and the resource-limited schedule result is
determined. The resulting schedule often has an altered critical path.”
PMI BoK 4th edition. Ch 6 Time Management p.155
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Professional Recognition
Conference Presentation
Critical Chain Project Management using Microsoft Project 2010 and Prochain:
Implementing Project Portfolio Management.
The Theory of Constraints International Certification Organization (TOCICO) is a global
not-for-profit certification organization for TOC practitioners, consultants and
academics to develop and administer certification standards, and facilitate the
exchange of latest developments. TOCICO has run an international conference for the
past 8 years.
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CCPM Potted History
Development:
Result of many years of continuous development
Based on Theory of Constraints (TOC) 1980’s
Needed software to be truly viable
Software to slow to develop
Now several good software products
Key Publications by Eliyah Goldratt:
1984 'The Goal' – TOC in manufacturing
1997 ‘ Critical Chain’ - Applying TOC to project management
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CCPM Implementation
Not just software!
Often considerable culture change
Requires education throughout company
People need time to get used to new working methods
No ‘Big Bang’
Start with single project ‘Pilot’
Progress to Multi-project (Programme)
Progress to Portfolio (Organisation)
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Last Word
‘Critical Chain Project Management presents us with an opportunity to plan
projects well for maybe the very first time. We should make sure that we
break with our old traditions of how we have done things in the past, and replan our projects from scratch.
But planning is only half the story. The real power of CCPM comes from the
control afforded during the execution or deployment of the job. Buffer status
and buffer management allows us unprecedented feedback on the progress
of the project and where to focus attention and where not.
And maybe this is the most important factor in the whole approach.
We have a totally new and systemic way to manage projects. We should
make the very most of this opportunity.’
Dr. Kelvin Youngman
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Critical Point Consulting
Over 15 years experience of implementing CCPM
in
Multiple companies / Multiple industries
Consider what CCPM could do for your organisation
Contact Critical Point Consulting for
a CCPM overview presentation
at your company
[email protected]
01892 506881
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