Critical chain project management - Gary Palmer

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Critical chain project management - Gary Palmer

  1. 1. Gary Palmer Critical Point Consulting 1 An extract of a presentation given to the APM Midlands Branch on 25th September 2013
  2. 2. www.criticalpoint.co.uk CriticalPointConsulting 2 Intellectual Property 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, transmitted or broadcast in part or in whole without the prior permission of Critical Point Ltd.
  3. 3. www.criticalpoint.co.uk CriticalPointConsulting Late What do we mean by ‘Project Failure’? 3 Over Budget Below Specification Below Quality
  4. 4. www.criticalpoint.co.uk CriticalPointConsulting Late 4 Over Budget Below Specification Below Quality Why do we need to change? - 1
  5. 5. www.criticalpoint.co.uk CriticalPointConsulting Why do we need to change? - 2 5 Productivity & Throughput: Often Low Excessive Wastage Slow Progress Costly
  6. 6. www.criticalpoint.co.uk CriticalPointConsulting Why do we need to change? - 3 6 Business Impact: Product Expensive Late to Market Customer Dissatisfaction Reputation Project Failure & Slow Costly Projects Cripples Business
  7. 7. www.criticalpoint.co.uk CriticalPointConsulting 1. The traditional methods in use, VIRTUALLY GUARANTEE these results. Why do we continue to have poor project performance? 7 2. We have not had a viable alternative. Until now…
  8. 8. www.criticalpoint.co.uk CriticalPointConsulting CCPM Statistics: Project Delivery: 90%+ on time Project Completion: 20% - 50% Faster Productivity: 20% - 60% Increase Throughput: 50% - 200% Increase Critical Chain Project Management 8 Without increasing resources
  9. 9. www.criticalpoint.co.uk CriticalPointConsulting 9 By resolving: Endemic problems in Traditional Proj. Mgmt How Does CCPM Deliver These Improvements?
  10. 10. www.criticalpoint.co.uk CriticalPointConsulting ‘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’ What is CCPM? 10
  11. 11. www.criticalpoint.co.uk CriticalPointConsulting ‘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’ What is CCPM? 11 Techniques: Working practices, Behaviours Tools: Processes, Software
  12. 12. www.criticalpoint.co.uk CriticalPointConsulting ‘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’ What is CCPM? 12 Individually: Resolve a specific problem Collaboratively: In unison to support the whole
  13. 13. www.criticalpoint.co.uk CriticalPointConsulting ‘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’ What is CCPM? 13 Improvements: Efficient processes Faster operation
  14. 14. www.criticalpoint.co.uk CriticalPointConsulting ‘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’ What is CCPM? 14 Scheduling: Optimum, realistic schedule Effective contingency protection Execution: Efficient working practices Excellent progress visibility, focus, control
  15. 15. www.criticalpoint.co.uk CriticalPointConsulting ‘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’ What is CCPM? 15 Projects: Single projects Programme: Multi-project Portfolio: Enterprise-wide
  16. 16. www.criticalpoint.co.uk CriticalPointConsulting Traditional Project Management The Five Elements of Failure Task-Level Contingency Poor Measures & Control Multi-tasking Critical Path Deadline Schedule 16 So, what are the problems in Traditional Proj. Mgmt.?
  17. 17. www.criticalpoint.co.uk CriticalPointConsulting Traditional Project Management The Five Elements of Failure Task-Level Contingency Poor Measures & Control Multi-tasking Critical Path Deadline Schedule 17
  18. 18. www.criticalpoint.co.uk CriticalPointConsulting Planned Completion Attempt to impose a Rigid construct on a Variable situation Actual dates will always change … and will need constant and continued updating 09/09 1/10 13/09 23/09 04/10 10/091/09 15/09 23/09 1/10 15/10 10/09 15/09 21/09 07/10 23/0922/09 30/09 13/10 22/09 03/10 09/10 09/09 14/09 22/09 13/10 14/09 20/09 06/10 13/10 Traditional Project Management Task Deadline Scheduling – Planning to Fail 18
  19. 19. www.criticalpoint.co.uk CriticalPointConsulting Shouldn’t early and late finishes balance out? Usually not. 19 Traditional Project Management Task Deadline Scheduling – Planning to Fail
  20. 20. www.criticalpoint.co.uk CriticalPointConsulting Potential Early Finish Parkinson’s Law – ‘Work expands to fill the time available’ Task Deadline Date Missed Time-Saving 20 Traditional Project Management Task Deadline Scheduling – Planning to Fail
  21. 21. www.criticalpoint.co.uk CriticalPointConsulting 3 d 5 days 7 days Late Finish Adds Time Early Finish Gain Lost 5 days 5 days 5 days Planned 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 Traditional Project Management Task Deadline Scheduling – Planning to Fail 5 days 5 days 5 days ✓ ✓ ✓
  22. 22. www.criticalpoint.co.uk CriticalPointConsulting 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 Summary 22 Traditional Project Management Task Deadline Scheduling – Planning to Fail
  23. 23. www.criticalpoint.co.uk CriticalPointConsulting Task-Level Contingency Poor Measures & Control Multi-tasking Critical Path 23 CCPM Schedule Critical Chain Project Management The Five Elements of Success
  24. 24. www.criticalpoint.co.uk CriticalPointConsulting 09/09 1/10 13/09 23/09 04/10 10/091/09 15/09 23/09 1/10 15/10 10/09 15/09 21/09 07/10 23/0922/09 30/09 13/10 22/09 03/10 09/10 09/09 14/09 22/09 13/10 14/09 20/09 06/10 13/10 24 Why use dates if we know that they are going to change?
  25. 25. www.criticalpoint.co.uk CriticalPointConsulting No Due Dates / Deadlines Schedule is used only as a Dependency Chart Work is progressed as a ‘Relay Race’ No schedule updating necessary CCPM Schedule 25
  26. 26. www.criticalpoint.co.uk CriticalPointConsulting Potential Early Finish Task Deadline Date CCPM Schedule 26 So now, without deadlines to fuel Parkinson behaviours,
  27. 27. www.criticalpoint.co.uk CriticalPointConsulting 27 High Levels of Embedded Contingency CCPM Project-Level Contingency Traditional Task-Level Contingency (Review)
  28. 28. www.criticalpoint.co.uk CriticalPointConsulting CCPM Project-Level Contingency Remove task-level contingency 28
  29. 29. www.criticalpoint.co.uk CriticalPointConsulting CCPM Project-Level Contingency Remove task-level contingency 29 Task Estimates have no in-built contingency Estimates are based on ‘Aggressive-but-possible’ task times
  30. 30. www.criticalpoint.co.uk Shorter Task Durations & much reduced timeline No space for Parkinson or Student Syndrome But where is our contingency now? CriticalPointConsulting CCPM Project-Level Contingency Remove task-level contingency 30
  31. 31. www.criticalpoint.co.uk Buffer protects the Project – not individual tasks Provides the project Commit Date CriticalPointConsulting CCPM Project-Level Contingency Aggregate Contingency Project Commit Date Project Buffer 31
  32. 32. www.criticalpoint.co.uk Critical Task over-runs are absorbed by the Buffer The Project ’Schedule’ remains unchanged The Project Commit Date is not affected CriticalPointConsulting CCPM Project-Level Contingency Project Protection Project Commit Date Project Buffer 32
  33. 33. www.criticalpoint.co.uk CriticalPointConsulting CCPM Project-Level Contingency Project Protection Project Commit Date Project Buffer Buffer Status shows the impact on contingency And we are able to measure and manage our contingency Buffer Status 33
  34. 34. www.criticalpoint.co.uk If a Critical Task finishes early… The time saved is ‘added back’ into our contingency Buffer Status always shows the latest position CriticalPointConsulting CCPM Project-Level Contingency Project Protection Project Commit Date Project Buffer 34 Buffer Status
  35. 35. www.criticalpoint.co.uk Project Contingency which results in Student Syndrome which results in Parkinson’s Behaviours and Streamlined Schedules with Aggregated Uncertainties are built into a CriticalPointConsulting Visible, Manageable Contingency which prevents Protected From Delays and Fast and Efficient Projects which are Do not require Schedule Changes CCPM Project-Level Contingency 35 Project-Level Contingency Cascade
  36. 36. www.criticalpoint.co.uk CriticalPointConsulting Traditional Project Management The Five Elements of Failure Poor Measures & Control Multi-tasking Critical Path 36 CCPM Schedule Project-Level Contingency
  37. 37. www.criticalpoint.co.uk Task H Task F Task I Task B Task C Task D Task G Task A Task J Task E CriticalPointConsulting 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? Traditional Project Management Critical Path – A dangerous path to follow? 37
  38. 38. www.criticalpoint.co.uk Critical Path Problems Resource Contentions Task H Task F Task I Task B Task C Task D Task G Task A Task J Task E CriticalPointConsulting 38
  39. 39. www.criticalpoint.co.uk Critical Path Problems Post–CP Resource Levelling Task E Task H Task F Task I Task B Task D Task G Task A Task J Levelling resolves the issue… but increases timescales And the vision of the Critical Path dominates …and so tactical manoeuvres soon start... CriticalPointConsulting Task C 39
  40. 40. www.criticalpoint.co.uk Critical Path Problems Avoidance Tactics 1- Multi-Tasking Task H Task B Task DTask A Task J Task E CriticalPointConsulting Quality may be reduced Predictability becomes less certain Work becomes fragmented and control less easy But because Multi-tasking takes longer… 40
  41. 41. www.criticalpoint.co.uk Critical Path Problems 2 - Overtime Task H Task B Task DTask A Task J Task E CriticalPointConsulting …Extra hours need to be worked Scheduling becomes difficult And Control starts to ebb away 41
  42. 42. www.criticalpoint.co.uk Critical Path Problems Slippage Task H Task B Task DTask A Task J Task E CriticalPointConsulting Multi-tasking is high risk High potential for slippage Diminishing returns due to staff morale / burnout Schedule long since become unmanageable 42
  43. 43. www.criticalpoint.co.uk Critical Path Problems Scope Cut Task H Task B Task DTask A Task J Task E CriticalPointConsulting Last resort to hit target date is a Scope Cut May cause work in other areas Further degrades quality ‘Project Meltdown’ ScopeCutScopeCut ScopeCut 43
  44. 44. www.criticalpoint.co.uk Incorrect Dependency Path often with Misleading Priorities which encourages a spiral of Ignoring Resources Contentions leads to an CriticalPointConsulting Unstable Schedule which needs Traditional Project Management Critical Path Problems Fire-fighting tactics which leads to an Unrealistic Completion Dates and Out of Control Project with an Critical Path Cascade 44 Frequent Changes
  45. 45. www.criticalpoint.co.uk CriticalPointConsulting Poor Measures & Control Multi-tasking 45 CCPM Schedule Project-Level Contingency Critical Chain Critical Chain Project Management The Five Elements of Success
  46. 46. www.criticalpoint.co.uk Task H Task F Task I Task B Task C Task D Task G Task A Task J Task E CriticalPointConsulting CCPM Critical Chain 1. Build Dependency Network As Normal Include Resource Requirements 46
  47. 47. www.criticalpoint.co.uk CCPM Critical Chain 2. CCPM Software - Resource Levelling Task E Task H Task F Task I Task B Task C Task D Task G Task A Task J CriticalPointConsulting 47 Prevents over-allocation of resources
  48. 48. www.criticalpoint.co.uk CCPM Critical Chain 3. CCPM Software - Identify the Critical Chain Task E Task H Task F Task I Task B Task C Task D Task G Task A Task J CriticalPointConsulting 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 48
  49. 49. www.criticalpoint.co.uk Critical Chain / Critical Path Comparison Task E Task H Task F Task I Task B Task C Task D Task G Task A Task J CriticalPointConsulting Task H Task F Task I Task B Task C Task D Task G Task A Task J Task E Critical Chain Critical Path 49
  50. 50. www.criticalpoint.co.uk Correct Dependency Path with Realistic Priorities which provides a Including Resources Contentions leads to a CriticalPointConsulting Stable Schedule that Realistic Project Duration and Project Under Control with a CCPM Critical Chain Critical Chain Cascade 50 Does not need changes
  51. 51. www.criticalpoint.co.uk CriticalPointConsulting Traditional Project Management The Five Elements of Failure Poor Measures & Control Multi-tasking 51 CCPM Schedule Project-Level Contingency Critical Chain
  52. 52. www.criticalpoint.co.uk 3d Task 1: 9 days Task 2: 9 days Task 3: 9 days Time 3d 3d3d 3d 3d 3d 3d 3d Without Multi-tasking: With Multi-tasking: 27 Days 29 Days • Nothing gets completed until day 23. 2 days added to overall duration. Quality likely to be poorer. Day 23 Day 9 • Everything is late. Task 1: +14 days late(+155%) Task 2: + 8 days late (+42%) Task 3: +2 days late (+22%) CriticalPointConsulting Traditional Project Management Multi-tasking: The Illusion of being productive 52
  53. 53. www.criticalpoint.co.uk CriticalPointConsulting Multi-tasking; The SINGLE best way… …to screw up TWO JOBS. 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 Summary Traditional Project Management Multi-tasking: The Illusion of being productive 53
  54. 54. www.criticalpoint.co.uk CriticalPointConsulting Poor Measures & Control 54 CCPM Schedule Project-Level Contingency Critical Chain Single-tasking Critical Chain Project Management The Five Elements of Success
  55. 55. www.criticalpoint.co.uk CriticalPointConsulting One task only worked on at a time No interruptions Dedicated work until complete CCPM - Task Management Single Tasking 55
  56. 56. www.criticalpoint.co.uk 3d Task 1: 9 days Task 2: 9 days Task 3: 9 days Time 3d 3d3d 3d 3d 3d 3d 3d Without Multi-tasking: With Multi-tasking: 27 Days 29 Days • Nothing gets completed until day 23. 2 days added to overall duration. Quality likely to be poorer. Day 23 Day 9 • Everything is late. Task 1: +14 days late(+155%) Task 2: + 8 days late (+42%) Task 3: +2 days late (+22%) Traditional Project Management Multi-tasking The Illusion of being productive CriticalPointConsulting 56
  57. 57. www.criticalpoint.co.uk Task 1: 9 days Task 2: 9 days Task 3: 9 days Time Without Multi-tasking: 27 Days CCPM Single Tasking The reality of being productive CriticalPointConsulting
  58. 58. www.criticalpoint.co.uk CriticalPointConsulting ‘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. CCPM Single Tasking Can Multi-tasking be removed? 58
  59. 59. www.criticalpoint.co.uk CriticalPointConsulting 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 Summary CCPM Single Tasking 59
  60. 60. www.criticalpoint.co.uk CriticalPointConsulting Traditional Project Management The Five Elements of Failure Poor Measures & Control Multi-tasking 60 CCPM Schedule Project-Level Contingency Critical Chain Single-tasking
  61. 61. www.criticalpoint.co.uk CriticalPointConsulting 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 Traditional Project Management Progress Measurement 61
  62. 62. www.criticalpoint.co.uk CriticalPointConsulting 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… Traditional Project Management Progress Measurement 62 What is the Only Question PM’s get asked?
  63. 63. www.criticalpoint.co.uk CriticalPointConsulting 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? Traditional Project Management Progress Measurement 63
  64. 64. www.criticalpoint.co.uk CriticalPointConsulting 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 Summary Traditional Project Management Progress Measurement 64
  65. 65. www.criticalpoint.co.uk CriticalPointConsulting Critical Chain Project Management The Five Elements of Success Multi-tasking 65 CCPM Schedule Project-Level Contingency Critical Chain Single-tasking Good Measures Visible Control
  66. 66. www.criticalpoint.co.uk CriticalPointConsulting CCPM Progress Reporting: Frequent – daily Is task complete? If not, how much task-time left remaining? 66 CCPM Progress Measurement
  67. 67. www.criticalpoint.co.uk CriticalPointConsulting CCPM Progress Measurement ‘Critical Chain’ Completed ✓ ✓✓ Critical Chain completed reported into CCPM software 67 A B C D E F
  68. 68. www.criticalpoint.co.uk CriticalPointConsulting CCPM Progress Measurement Contingency Buffer Usage 68 +3 +3 A B C D E F ✓
  69. 69. www.criticalpoint.co.uk CriticalPointConsulting CCPM Progress Measurement Contingency Buffer Usage Task C has no effect on buffer 69 Buffer Used +3 +3 +3 +3 Buffer Remaining A B C D E F ✓
  70. 70. www.criticalpoint.co.uk CriticalPointConsulting CCPM Progress Measurement Contingency Buffer Usage Early report from task D that an additional 5 days will be required This report also feeds into the Buffer usage Provides earliest notification of expected position 70 Buffer Used +3 +3 +5 +3 +3 Buffer Remaining DCB A E F +5
  71. 71. www.criticalpoint.co.uk CriticalPointConsulting Amount of critical work completed: Critical Chain Put these two together… CCPM Progress Measurement 71 Now we have two key measurements: How much contingency remaining: Project Buffer
  72. 72. www.criticalpoint.co.uk CriticalPointConsulting Singular Objective Predictive Easily interpreted Auto constructed Up-to-date Immediate CCPM Progress Measurement The Fever Chart 72
  73. 73. www.criticalpoint.co.uk CriticalPointConsulting Daily Reporting: Progress is always up-to-date Project position is always up-to-date Summary - 1 CCPM Progress Measurement 73
  74. 74. www.criticalpoint.co.uk CriticalPointConsulting ‘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 Summary - 2 CCPM Progress Measurement 74
  75. 75. www.criticalpoint.co.uk CriticalPointConsulting 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! Summary - 3 CCPM Progress Measurement 75
  76. 76. www.criticalpoint.co.uk CriticalPointConsulting Critical Chain Project Management The Five Elements of Success Multi-tasking 76 CCPM Schedule Project-Level Contingency Critical Chain Single-tasking Good Measures Visible Control Yes – but not just 5 problems, CCPM fixes 2 more as well. So, have we fixed all of the problems?
  77. 77. www.criticalpoint.co.uk The Ever Changing Schedule CriticalPointConsulting 77
  78. 78. www.criticalpoint.co.uk CriticalPointConsulting Traditional Project Management The Five Problems Task-Level Contingency Poor Measures & Control Multi-tasking Critical Path Deadline Schedule 78What other problem is common to each of these?
  79. 79. www.criticalpoint.co.uk CriticalPointConsulting Schedule Changes Schedule Changes Schedule Changes Schedule Changes Schedule Changes 79Each individual issue causes schedule changes Task-Level Contingency Poor Measures & Control Multi-tasking Critical Path Deadline Schedule Traditional Project Management
  80. 80. www.criticalpoint.co.uk CriticalPointConsulting Project-Level Contingency Rem. Duration Visible Control Single-tasking Critical Chain CCPM Schedule CCPM Schedule Stability 80 Each CCPM element fixes individual problems AND removes the causes of Schedule Changes
  81. 81. www.criticalpoint.co.uk Vicious Circles CriticalPointConsulting 81
  82. 82. www.criticalpoint.co.uk CriticalPointConsulting Traditional Project Management Schedule Changes Schedule Changes Schedule Changes Schedule Changes Schedule Changes 82 Task-Level Contingency Poor Measures & Control Multi-tasking Critical Path Deadline Schedule But…Not only does each problem area cause schedule changes…
  83. 83. www.criticalpoint.co.uk CriticalPointConsulting Traditional Project Management Schedule Changes Schedule Changes Schedule Changes Schedule Changes Schedule Changes 83Each individual problem area perpetuates others Task-Level Contingency Poor Measures & Control Multi-tasking Critical Path Deadline Schedule
  84. 84. www.criticalpoint.co.uk CriticalPointConsulting Traditional Project Management Self-Perpetuation Schedule Changes Schedule Changes Schedule Changes Schedule Changes Schedule Changes 84Locked-in to self-perpetuating systemic failure Task-Level Contingency Poor Measures & Control Multi-tasking Critical Path Deadline Schedule
  85. 85. www.criticalpoint.co.uk CriticalPointConsulting Project-Level Contingency Rem. Duration Visible Control Single-tasking Critical Chain CCPM Schedule CCPM Schedule Stability 85 CCPM removes the causes of individual problems, constant schedule changes and systemic failure
  86. 86. www.criticalpoint.co.uk CriticalPointConsulting Seven Problems of Traditional PM… …and the Seven Solutions of CCPM Traditional Problems: Deadline Scheduling Task-Level Contingency Critical Path Multi-tasking Poor Measures & Control Schedule Volatility Problem Perpetuation 86 CCPM Solutions: Flexible Scheduling Project-Level Contingency Critical Chain Single-tasking Good Measures & Control Schedule Stability Solution Constancy Traditional v’s CCPM – Overall Summary + Poor Work Environment = ‘Progressive Excellence’ + Good Work Environment = ‘Terminal Mediocrity’
  87. 87. www.criticalpoint.co.uk Programme & Portfolio Myth CriticalPointConsulting Achieving Terminal Mediocrity on a Large Scale 87
  88. 88. www.criticalpoint.co.uk CriticalPointConsulting The Programme & Portfolio Myth 1. That the more projects you start, the more you will get done 88 CCPM in Programme and Portfolio Environments
  89. 89. www.criticalpoint.co.uk KR KR CriticalPointConsulting Overlapping Projects + Overloaded Resources KR KR KR Key Resource KR Project 1 Project 2 Project 3 89Projects stopped by resource contention
  90. 90. www.criticalpoint.co.uk CriticalPointConsulting 3mths Project 1: 9mths Project 2: 9mths Project3: 9mths 3mths 3mths3mths 3mths 3mths 3mths 3mths 3mths Project Fragmentation: 27 mths 30 mths mth 23 mth 9 Overloaded Programme 1. Project Fragmentation Overloading can lead to project fragmentation Fragmentation delays all projects 90
  91. 91. www.criticalpoint.co.uk CriticalPointConsulting 3mths Project 1: 9 mths Project 2: 9mths Project3: 9mths 3mths 3mths3mths 3mths 3mths 3mths 3mths 3mths 27 mths 30 mths Overloaded Programme 2. Increased Exposure to Change 9 mths 21 mths Longer elapsed time gives more exposure time for changes Changes generate more work and extend projects Meanwhile unfinished work gets ‘rusty’ 91
  92. 92. www.criticalpoint.co.uk CriticalPointConsulting Project 1 Project 2 Project 3 Perception Reality at Working Level Overloaded Programme 3. Generates Multi-tasking Overloading creates multi-tasking at the working level Causes constant schedule changes Causes fighting for resources Slows all projects 92
  93. 93. www.criticalpoint.co.uk CriticalPointConsulting Project 1 Project 2 Project 3 Plan Reality Overloaded Programme 4. Loss of Completion Predictability ? ? Multi-tasking leads to Fragmentation Fragmentation makes completion unpredictable ? 93
  94. 94. www.criticalpoint.co.uk CriticalPointConsulting Project fragmentation causes delays Increased exposure to changes Drives multi-tasking Competition for Resources Loss of Planning Predictability Summary Traditional Project Management Overloaded Programme CriticalPointConsulting 94
  95. 95. www.criticalpoint.co.uk CriticalPointConsulting The Programme & Portfolio Myth 1. That the more projects you start, the more you will get done’ … You won’t 95
  96. 96. www.criticalpoint.co.uk CriticalPointConsulting The Programme & Portfolio Myth So what can we do to improve this? 1. That the more projects you start, the more you will get done 96 … You won’t
  97. 97. www.criticalpoint.co.uk CriticalPointConsulting Recognise that: Increasing work in progress slows throughput Decreasing work in progress speeds up throughput CCPM in Multi-Project Environment: Maximising Throughput 97
  98. 98. www.criticalpoint.co.uk CriticalPointConsulting ‘Reducing Work in Progress: Reduce & Limit ‘In progress’ projects to optimum ‘Stagger’ new project starts Implement a ‘Pull’ System: not a ‘Push’ System CCPM in Multi-Project Environment: Maximising Throughput 98
  99. 99. www.criticalpoint.co.uk KR KR CriticalPointConsulting Overlapping Projects + Overloaded Resources “It’s all TOP PRIORITY” KR KR KR Key Resource KR Project 1 Project 2 Project 3 99Projects stopped by resource contention
  100. 100. www.criticalpoint.co.uk KR KR KR Project 1 CriticalPointConsulting KR Project 3 Stagger Project Starts on Key Resource Project 2KR KR Key Resource 100Stagger projects = faster completions
  101. 101. www.criticalpoint.co.uk CriticalPointConsulting 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 Summary CCPM in Multi-Project Environment: Maximising Throughput CriticalPointConsulting 101
  102. 102. www.criticalpoint.co.uk It’s what you finish… …not what you start. CriticalPointConsulting 102
  103. 103. www.criticalpoint.co.uk CriticalPointConsulting Singular Objective Predictive Easily interpreted Auto constructed Up-to-date Immediate CCPM Programme Management The Programme Fever Chart 103 Programme Fever Chart focusses on projects that need attention
  104. 104. www.criticalpoint.co.uk CriticalPointConsulting Critical Chain Project Management Progress Monitoring Drill Down for detail 104
  105. 105. www.criticalpoint.co.uk The Evidence for CCPM CriticalPointConsulting 105
  106. 106. www.criticalpoint.co.uk 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 Ventana CriticalPointConsulting Companies Using CCPM - 1 106
  107. 107. www.criticalpoint.co.uk 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, TN. CriticalPointConsulting Companies Using CCPM - 2 107
  108. 108. www.criticalpoint.co.uk Space Shuttle Software Development Project Projects completed up to 42% ahead of schedule. Space Shuttle Hardware Development Project Hardware delivered 36% early, 20% under budget, exceeded quality expectations Space Shuttle Engineering Document Development Project Schedule reduction of 58%, exceeded customer expectations Boeing Space Shuttle Development Results using CCPM: CriticalPointConsulting Some Results: 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).” Japanese Government 108
  109. 109. www.criticalpoint.co.uk CriticalPointConsulting Professional Recognition 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 Association for Project Management 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 Project Management Institute 109
  110. 110. www.criticalpoint.co.uk CriticalPointConsulting 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. 110
  111. 111. www.criticalpoint.co.uk CriticalPointConsulting 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 CCPM Potted History 111
  112. 112. www.criticalpoint.co.uk CriticalPointConsulting 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) CCPM Implementation 112
  113. 113. www.criticalpoint.co.uk CriticalPointConsulting Over 15 years experience in implementing CCPM Successful implementations of CCPM in Multiple companies / Multiple industries / Multiple countries Consider what CCPM could do for your organisation Contact us for a free CCPM overview presentation in your company Critical Point Consulting 113
  114. 114. www.criticalpoint.co.uk CriticalPointConsulting ‘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 re- plan 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 Last Word 114

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