An extract of a presentation given to the APM PMC SIG Seminar
on
2nd October 2013

Gary Palmer
Critical Point Consulting

...
Critical Point Consulting

www.criticalpoint.co.uk

Intellectual Property
This document is the Intellectual Property of
Cr...
Critical Point Consulting

www.criticalpoint.co.uk

What do we mean by ‘Project Failure’?

Late
Over Budget

Below Specifi...
Critical Point Consulting

www.criticalpoint.co.uk

Why do we need to change? - 1

Late
Over Budget

Below Specification
B...
Critical Point Consulting

www.criticalpoint.co.uk

Why do we need to change? - 2

Productivity & Throughput:

Often Low
E...
Critical Point Consulting

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Why do we need to change? - 3

Business Impact:
Product Expensive
Late...
Why do we continue to have poor project performance?

1. The traditional methods in use,
VIRTUALLY GUARANTEE these results...
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Critical Chain Project Management
CCPM Statistics:
Project Delivery:

...
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How Does CCPM Deliver These Improvements?

By resolving:
Endemic probl...
Critical Point Consulting

www.criticalpoint.co.uk

What is CCPM?
‘A set of interlinked techniques and tools that work

in...
Critical Point Consulting

www.criticalpoint.co.uk

What is CCPM?
‘A set of interlinked techniques and tools that work

in...
Critical Point Consulting

www.criticalpoint.co.uk

What is CCPM?
‘A set of interlinked techniques and tools that work

in...
Critical Point Consulting

www.criticalpoint.co.uk

What is CCPM?
‘A set of interlinked techniques and tools that work

in...
Critical Point Consulting

www.criticalpoint.co.uk

What is CCPM?
‘A set of interlinked techniques and tools that work

in...
Critical Point Consulting

www.criticalpoint.co.uk

What is CCPM?
‘A set of interlinked techniques and tools that work

in...
Traditional Project Management
The Five Elements of Failure
So, what are the problems in Traditional Proj. Mgmt.?
Deadline...
Traditional Project Management
The Five Elements of Failure

Deadline
Schedule

Task-Level
Contingency

Poor Measures
& Co...
Traditional Project Management
Task Deadline Scheduling – Planning to Fail

09/09

22/09 23/09

1/10

13/10

Planned Compl...
Traditional Project Management
Task Deadline Scheduling – Planning to Fail

Shouldn’t early and late finishes balance out?...
Traditional Project Management
Task Deadline Scheduling – Planning to Fail
Potential
Early Finish

Deadline
Date

Task
Mis...
Traditional Project Management
Task Deadline Scheduling – Planning to Fail
Late Finish
Adds Time

Planned
5 days

7 days

...
Traditional Project Management
Task Deadline Scheduling – Planning to Fail

Summary
Dates attempt a rigid structure on a v...
Critical Chain Project Management
The Five Elements of Success

CCPM
Schedule

Task-Level
Contingency

Poor Measures
& Con...
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

1/1...
CCPM Schedule

No Due Dates / Deadlines
Schedule is used only as a Dependency Chart
Work is progressed as a ‘Relay Race’
N...
CCPM Schedule

Potential
Early Finish

Deadline
Date

Task

So now, without deadlines to fuel Parkinson behaviours,

26

C...
CCPM Project-Level Contingency
Traditional Task-Level Contingency (Review)

High Levels of Embedded Contingency

27

Criti...
CCPM Project-Level Contingency
Remove task-level contingency

28

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CCPM Project-Level Contingency
Remove task-level contingency

Task Estimates have no in-built contingency
Estimates are ba...
CCPM Project-Level Contingency
Remove task-level contingency

Shorter Task Durations & much reduced timeline
No space for ...
CCPM Project-Level Contingency
Aggregate Contingency
Project
Commit
Date

Project Buffer

Buffer protects the Project – no...
CCPM Project-Level Contingency
Project Protection
Project
Commit
Date

Project Buffer

Critical Task over-runs are absorbe...
CCPM Project-Level Contingency
Project Protection
Project
Commit
Date

Buffer
Status

Project Buffer

Buffer Status shows ...
CCPM Project-Level Contingency
Project Protection
Project
Commit
Date

Buffer
Status

Project Buffer

If a Critical Task f...
CCPM Project-Level Contingency

Project-Level Contingency Cascade
Aggregated Uncertainties are built into a
Project Contin...
Traditional Project Management
The Five Elements of Failure

CCPM
Schedule

Project-Level
Contingency

Poor Measures
& Con...
Traditional Project Management
Critical Path – A dangerous path to follow?
Task E

Task B

Task G

Task H
Task A

Task F

...
Critical Path Problems
Resource Contentions

Task A

Task B

Task F

Task G

Task H

Task E

Task I

Task C

Task D

Task ...
Critical Path Problems
Post–CP Resource Levelling
Task F

Task E
Task H
Task A

Task B

Task I

Task C

Task D

Task G

Ta...
Critical Path Problems
Avoidance Tactics 1- Multi-Tasking
Task E
Task H
Task A

Task B

Task D

Task J

Quality may be red...
Critical Path Problems
2 - Overtime
Task E
Task H
Task A

Task B

Task D

Task J

…Extra hours need to be worked
Schedulin...
Critical Path Problems
Slippage
Task E
Task H
Task A

Task B

Task D

Task J

Multi-tasking is high risk
High potential fo...
Scope Cut

Scope Cut

Critical Path Problems
Scope Cut
Task E

Task A

Task B

Scope Cut

Task H
Task D

Task J

Last reso...
Critical Path Cascade

Traditional Project Management
Critical Path Problems

Ignoring Resources Contentions leads to an
I...
Critical Chain Project Management
The Five Elements of Success

CCPM
Schedule

Project-Level
Contingency

Poor Measures
& ...
CCPM Critical Chain
1. Build Dependency Network As Normal

Task A

Task B

Task F

Task G

Task H

Task E

Task I

Task C
...
CCPM Critical Chain
2. CCPM Software - Resource Levelling
Task E

Task H
Task A

Task G

Task F

Task B

Task I
Task C

Ta...
CCPM Critical Chain
3. CCPM Software - Identify the Critical Chain
Task E

Task H
Task A

Task G

Task F

Task B

Task I
T...
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

C...
CCPM Critical Chain
Critical Chain Cascade
Including Resources Contentions leads to a
Correct Dependency Path with
Realist...
Traditional Project Management
The Five Elements of Failure

CCPM
Schedule

Project-Level
Contingency

Poor Measures
& Con...
Traditional Project Management Multi-tasking:
The Illusion of being productive
Time
Without Multi-tasking:
Task 1: 9 days
...
Summary

Traditional Project Management Multi-tasking:
The Illusion of being productive

It slows everything down
It reduc...
Critical Chain Project Management
The Five Elements of Success

CCPM
Schedule

Project-Level
Contingency

Poor Measures
& ...
CCPM - Task Management
Single Tasking

One task only worked on at a time
No interruptions
Dedicated work until complete

5...
Traditional Project Management Multi-tasking
The Illusion of being productive
Time
Without Multi-tasking:
Task 1: 9 days

...
CCPM Single Tasking
The reality of being productive
Time
Without Multi-tasking:
Task 1: 9 days

Task 2: 9 days

Task 3: 9 ...
CCPM Single Tasking

Summary
It improves quality

It reduces time & money spent
It simplifies scheduling & control
It enab...
Traditional Project Management
The Five Elements of Failure

CCPM
Schedule

Project-Level
Contingency

Poor Measures
& Con...
Traditional Project Management
Progress Measurement
Use of ‘Percentage Complete’:
Report to expectation – no bad news to g...
Traditional Project Management
Progress Measurement
Measurements -

Percentage Complete, Time / money used / left
Position...
Traditional Project Management
Progress Measurement

Are we on target?
What do we really need to know?
How exposed are we?...
Summary

Traditional Project Management
Progress Measurement

Often not a true / realistic picture
Real Status / safety co...
Critical Chain Project Management
The Five Elements of Success

CCPM
Schedule

Project-Level
Contingency

Good Measures
Vi...
CCPM Progress Measurement

CCPM Progress Reporting:
Frequent – daily
Is task complete?
If not, how much task-time left rem...
CCPM Progress Measurement
‘Critical Chain’ Completed

✓
A

E
B

C

✓

F

✓

D

Critical Chain completed reported into CCPM...
CCPM Progress Measurement
Contingency Buffer Usage

A

E

F

+3
B

C
+3

D

✓

67

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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 ...
CCPM Progress Measurement
Contingency Buffer Usage
Buffer
Used

Buffer
Remaining

+3 +3 +5
A

E

F

+3
B

C
+3

D
+5

Earl...
CCPM Progress Measurement
Now we have two key measurements:
Amount of critical work completed: Critical Chain
How much con...
CCPM Progress Measurement
The Fever Chart
Singular
Objective
Predictive
Easily interpreted
Auto constructed
Up-to-date
Imm...
CCPM Progress Measurement
Summary - 1
Daily Reporting:
Progress is always up-to-date
Project position is always up-to-date...
CCPM Progress Measurement
Summary - 2
‘Remaining Duration’ Reporting:
More accurate / realistic picture
Focusses the task ...
CCPM Progress Measurement
Summary - 3
Fever Chart:
Combined view of progress and contingency
Trends provide early warning
...
Critical Chain Project Management
The Five Elements of Success
So, have we fixed all of the problems?
CCPM
Schedule

Proje...
Critical Point Consulting

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The Ever

Changing
Schedule

76
Traditional Project Management
The Five Problems

Task-Level
Contingency

Poor Measures
& Control

Deadline
Schedule
Criti...
Traditional Project Management
Schedule
Changes
Task-Level
Contingency

Schedule
Changes

Poor Measures
& Control

Deadlin...
CCPM Schedule Stability

Project-Level
Contingency

Rem. Duration
Visible Control

CCPM
Schedule
Critical Chain

Single-ta...
Vicious
Circles

80

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Traditional Project Management
Schedule
Changes
Task-Level
Contingency

Schedule
Changes

Poor Measures
& Control

Deadlin...
Traditional Project Management
Schedule
Changes
Task-Level
Contingency

Schedule
Changes

Poor Measures
& Control

Deadlin...
Traditional Project Management
Self-Perpetuation
Schedule
Changes
Task-Level
Contingency

Schedule
Changes

Poor Measures
...
CCPM Schedule Stability

Project-Level
Contingency

Rem. Duration
Visible Control

CCPM
Schedule
Critical Chain

Single-ta...
Seven Problems of Traditional PM…
…and the Seven Solutions of CCPM

Traditional v’s CCPM – Overall Summary

Traditional Pr...
Programme
& Portfolio
Myth

Achieving Terminal
Mediocrity on a
Large Scale
86

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CCPM in Programme and Portfolio
Environments

The Programme & Portfolio Myth
1. That the more projects you start, the more...
Overlapping Projects + Overloaded Resources
Project 1
KR

Project 2

KR

KR

Project 3

KR

KR

KR
Key Resource

Projects ...
Overloaded Programme
1. Project Fragmentation

Project 1: 9mths

Project 2: 9mths

Project3: 9mths

27 mths

mth 9
mth 23
...
Overloaded Programme
2. Increased Exposure to Change

Project 1: 9 mths

Project 2: 9mths

Project3: 9mths

27 mths

9 mth...
Overloaded Programme
3. Generates Multi-tasking
Reality at Working Level

Perception
Project 1

Project 2
Project 3

Overl...
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Overloaded Programme
4. Loss of Completion Predictability
Plan

Realit...
Summary

Traditional Project Management
Overloaded Programme

Project fragmentation causes delays
Increased exposure to ch...
Critical Point Consulting

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The Programme & Portfolio Myth
1. That the more projects you start, th...
Critical Point Consulting

www.criticalpoint.co.uk

The Programme & Portfolio Myth
1. That the more projects you start, th...
CCPM in Multi-Project Environment:
Maximising Throughput

Recognise that:
Increasing work in progress slows throughput
Dec...
CCPM in Multi-Project Environment:
Maximising Throughput

‘Reducing Work in Progress:
Reduce & Limit ‘In progress’ project...
Overlapping Projects + Overloaded Resources
“It’s all TOP PRIORITY”
Project 1
KR

Project 2

KR

KR

Project 3

KR

KR

KR...
Stagger Project Starts on Key Resource

Project 1
KR

Project 2

KR

KR

Project 3

KR

KR

KR
Key Resource

Stagger proje...
Summary

CCPM in Multi-Project Environment:
Maximising Throughput

Reducing WIP accelerates throughput
Staggering starts r...
Critical Point Consulting

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It’s what you finish…
…not what you start.

101
CCPM Programme Management
The Programme Fever Chart
Singular
Objective
Predictive
Easily interpreted
Auto constructed
Up-t...
Critical Chain Project Management
Progress Monitoring

Drill Down for detail

103

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www.critical...
The Evidence
for CCPM

104

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Companies Using CCPM - 1
High Tech
3M
Advasense Technologies
Agilent Technologie
AMCC
AMD
Avaya
Avitronics
Barco
Bell Cana...
Companies Using CCPM - 2
Aerospace and Defense
Aerojet Corporation
Air Force Institute of Tech.
BAE Systems
The Boeing Com...
Critical Point Consulting

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Some Results:

Japanese Government
After having used it in 2,523 publi...
Critical Point Consulting

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Professional Recognition

Association for Project Management

APM Body...
Critical Point Consulting

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Professional Recognition

Conference Presentation
Critical Chain Proje...
CCPM Potted History
Development:
Result of many years of continuous development
Based on Theory of Constraints (TOC) 1980’...
CCPM Implementation
Not just software!
Often considerable culture change
Requires education throughout company

People nee...
Critical Point Consulting
Over 15 years successful implementations of CCPM
in
Multiple companies / Multiple industries / M...
Last Word
‘Critical Chain Project Management presents us with an opportunity to plan
projects well for maybe the very firs...
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An introduction to Critical Chain Project Management (CCPM)

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Published on

A presentation by Gary Palmer, made at the APM South Wales and West of England branch seminar 'Project Controls: A 1 day Seminar' on Wednesday, 2nd October 2013

Published in: Business, Technology

An introduction to Critical Chain Project Management (CCPM)

  1. 1. An extract of a presentation given to the APM PMC SIG Seminar on 2nd October 2013 Gary Palmer Critical Point Consulting 1
  2. 2. Critical Point Consulting www.criticalpoint.co.uk 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. 2
  3. 3. Critical Point Consulting www.criticalpoint.co.uk What do we mean by ‘Project Failure’? Late Over Budget Below Specification Below Quality Any one (or more) of the above 3
  4. 4. Critical Point Consulting www.criticalpoint.co.uk Why do we need to change? - 1 Late Over Budget Below Specification Below Quality Because many projects are one or more of the above 4
  5. 5. Critical Point Consulting www.criticalpoint.co.uk Why do we need to change? - 2 Productivity & Throughput: Often Low Excessive Wastage Slow Progress Costly 5
  6. 6. Critical Point Consulting www.criticalpoint.co.uk 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
  7. 7. 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 www.criticalpoint.co.uk
  8. 8. Critical Point Consulting www.criticalpoint.co.uk 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
  9. 9. Critical Point Consulting www.criticalpoint.co.uk How Does CCPM Deliver These Improvements? By resolving: Endemic problems in Traditional Proj. Mgmt 9
  10. 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’ 10
  11. 11. 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
  12. 12. 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’ Individually: Resolve a specific problem Collaboratively: In unison to support the whole 12
  13. 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’ Improvements: Efficient processes Faster operation 13
  14. 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’ Scheduling: Optimum, realistic schedule Effective contingency protection Execution: Efficient working practices Excellent progress visibility, focus, control 14
  15. 15. 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 15
  16. 16. 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 www.criticalpoint.co.uk
  17. 17. 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
  18. 18. 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 18 Critical Point Consulting www.criticalpoint.co.uk
  19. 19. Traditional Project Management Task Deadline Scheduling – Planning to Fail Shouldn’t early and late finishes balance out? Usually not. 19 Critical Point Consulting www.criticalpoint.co.uk
  20. 20. 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’ 20 Critical Point Consulting www.criticalpoint.co.uk
  21. 21. 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 www.criticalpoint.co.uk
  22. 22. 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 www.criticalpoint.co.uk
  23. 23. 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 www.criticalpoint.co.uk
  24. 24. 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 www.criticalpoint.co.uk 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? 24
  25. 25. CCPM Schedule No Due Dates / Deadlines Schedule is used only as a Dependency Chart Work is progressed as a ‘Relay Race’ No schedule updating necessary 25 Critical Point Consulting www.criticalpoint.co.uk
  26. 26. CCPM Schedule Potential Early Finish Deadline Date Task So now, without deadlines to fuel Parkinson behaviours, 26 Critical Point Consulting www.criticalpoint.co.uk
  27. 27. CCPM Project-Level Contingency Traditional Task-Level Contingency (Review) High Levels of Embedded Contingency 27 Critical Point Consulting www.criticalpoint.co.uk
  28. 28. CCPM Project-Level Contingency Remove task-level contingency 28 Critical Point Consulting www.criticalpoint.co.uk
  29. 29. CCPM Project-Level Contingency Remove task-level contingency Task Estimates have no in-built contingency Estimates are based on ‘Aggressive-but-possible’ task times 29 Critical Point Consulting www.criticalpoint.co.uk
  30. 30. 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? 30 Critical Point Consulting www.criticalpoint.co.uk
  31. 31. CCPM Project-Level Contingency Aggregate Contingency Project Commit Date Project Buffer Buffer protects the Project – not individual tasks Provides the project Commit Date 31 Critical Point Consulting www.criticalpoint.co.uk
  32. 32. 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 32 Critical Point Consulting www.criticalpoint.co.uk
  33. 33. 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 33 Critical Point Consulting www.criticalpoint.co.uk
  34. 34. 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 34 Critical Point Consulting www.criticalpoint.co.uk
  35. 35. 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 35 Critical Point Consulting www.criticalpoint.co.uk
  36. 36. Traditional Project Management The Five Elements of Failure CCPM Schedule Project-Level Contingency Poor Measures & Control Critical Path Multi-tasking 36 Critical Point Consulting www.criticalpoint.co.uk
  37. 37. Traditional Project Management Critical Path – A dangerous path to follow? Task E Task B Task G Task H Task A Task F 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? 37 Critical Point Consulting www.criticalpoint.co.uk
  38. 38. Critical Path Problems Resource Contentions Task A Task B Task F Task G Task H Task E Task I Task C Task D Task J 38 Critical Point Consulting www.criticalpoint.co.uk
  39. 39. Critical Path Problems Post–CP Resource Levelling Task F Task E Task H Task A Task B 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... 39 Critical Point Consulting www.criticalpoint.co.uk
  40. 40. 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… 40 Critical Point Consulting www.criticalpoint.co.uk
  41. 41. 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 41 Critical Point Consulting www.criticalpoint.co.uk
  42. 42. 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 42 Critical Point Consulting www.criticalpoint.co.uk
  43. 43. 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’ 43 Critical Point Consulting www.criticalpoint.co.uk
  44. 44. 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 44 Critical Point Consulting www.criticalpoint.co.uk
  45. 45. Critical Chain Project Management The Five Elements of Success CCPM Schedule Project-Level Contingency Poor Measures & Control Critical Chain Multi-tasking 45 Critical Point Consulting www.criticalpoint.co.uk
  46. 46. CCPM Critical Chain 1. Build Dependency Network As Normal Task A Task B Task F Task G Task H Task E Task I Task C Task D Task J Include Resource Requirements 46 Critical Point Consulting www.criticalpoint.co.uk
  47. 47. 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 47 Critical Point Consulting www.criticalpoint.co.uk
  48. 48. 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 48 Critical Point Consulting www.criticalpoint.co.uk
  49. 49. 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 49 Critical Point Consulting www.criticalpoint.co.uk
  50. 50. 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 50 Critical Point Consulting www.criticalpoint.co.uk
  51. 51. Traditional Project Management The Five Elements of Failure CCPM Schedule Project-Level Contingency Poor Measures & Control Critical Chain Multi-tasking 51 Critical Point Consulting www.criticalpoint.co.uk
  52. 52. 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. 52 Critical Point Consulting www.criticalpoint.co.uk
  53. 53. 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. 53 Critical Point Consulting www.criticalpoint.co.uk
  54. 54. Critical Chain Project Management The Five Elements of Success CCPM Schedule Project-Level Contingency Poor Measures & Control Critical Chain Single-tasking 54 Critical Point Consulting www.criticalpoint.co.uk
  55. 55. CCPM - Task Management Single Tasking One task only worked on at a time No interruptions Dedicated work until complete 55 Critical Point Consulting www.criticalpoint.co.uk
  56. 56. 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. 56 Critical Point Consulting www.criticalpoint.co.uk
  57. 57. 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 www.criticalpoint.co.uk
  58. 58. 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 58 Critical Point Consulting www.criticalpoint.co.uk
  59. 59. Traditional Project Management The Five Elements of Failure CCPM Schedule Project-Level Contingency Poor Measures & Control Critical Chain Single-tasking Multi-tasking 59 Critical Point Consulting www.criticalpoint.co.uk
  60. 60. 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 60 Critical Point Consulting www.criticalpoint.co.uk
  61. 61. 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? 61 Critical Point Consulting www.criticalpoint.co.uk
  62. 62. 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? 62 Critical Point Consulting www.criticalpoint.co.uk
  63. 63. 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 63 Critical Point Consulting www.criticalpoint.co.uk
  64. 64. Critical Chain Project Management The Five Elements of Success CCPM Schedule Project-Level Contingency Good Measures Visible Control Critical Chain Single-tasking Multi-tasking 64 Critical Point Consulting www.criticalpoint.co.uk
  65. 65. CCPM Progress Measurement CCPM Progress Reporting: Frequent – daily Is task complete? If not, how much task-time left remaining? 65 Critical Point Consulting www.criticalpoint.co.uk
  66. 66. CCPM Progress Measurement ‘Critical Chain’ Completed ✓ A E B C ✓ F ✓ D Critical Chain completed reported into CCPM software 66 Critical Point Consulting www.criticalpoint.co.uk
  67. 67. CCPM Progress Measurement Contingency Buffer Usage A E F +3 B C +3 D ✓ 67 Critical Point Consulting www.criticalpoint.co.uk
  68. 68. 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 68 Critical Point Consulting www.criticalpoint.co.uk
  69. 69. 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 earliest notification of expected position 69 Critical Point Consulting www.criticalpoint.co.uk
  70. 70. 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… 70 Critical Point Consulting www.criticalpoint.co.uk
  71. 71. CCPM Progress Measurement The Fever Chart Singular Objective Predictive Easily interpreted Auto constructed Up-to-date Immediate 71 Critical Point Consulting www.criticalpoint.co.uk
  72. 72. CCPM Progress Measurement Summary - 1 Daily Reporting: Progress is always up-to-date Project position is always up-to-date 72 Critical Point Consulting www.criticalpoint.co.uk
  73. 73. 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 73 Critical Point Consulting www.criticalpoint.co.uk
  74. 74. 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! 74 Critical Point Consulting www.criticalpoint.co.uk
  75. 75. 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. 75 Critical Point Consulting www.criticalpoint.co.uk
  76. 76. Critical Point Consulting www.criticalpoint.co.uk The Ever Changing Schedule 76
  77. 77. 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? 77 Critical Point Consulting www.criticalpoint.co.uk
  78. 78. 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 78 Critical Point Consulting www.criticalpoint.co.uk
  79. 79. 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 79 Critical Point Consulting www.criticalpoint.co.uk
  80. 80. Vicious Circles 80 Critical Point Consulting www.criticalpoint.co.uk
  81. 81. 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 81 changes… Critical Point Consulting www.criticalpoint.co.uk
  82. 82. 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 82 Critical Point Consulting www.criticalpoint.co.uk
  83. 83. 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 83 Critical Point Consulting www.criticalpoint.co.uk
  84. 84. 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 84 Critical Point Consulting www.criticalpoint.co.uk
  85. 85. 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’ 85 Critical Point Consulting www.criticalpoint.co.uk
  86. 86. Programme & Portfolio Myth Achieving Terminal Mediocrity on a Large Scale 86 Critical Point Consulting www.criticalpoint.co.uk
  87. 87. CCPM in Programme and Portfolio Environments The Programme & Portfolio Myth 1. That the more projects you start, the more you will get done 87 Critical Point Consulting www.criticalpoint.co.uk
  88. 88. Overlapping Projects + Overloaded Resources Project 1 KR Project 2 KR KR Project 3 KR KR KR Key Resource Projects stopped by resource contention 88 Critical Point Consulting www.criticalpoint.co.uk
  89. 89. 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 89 Critical Point Consulting www.criticalpoint.co.uk
  90. 90. 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’ 90 Critical Point Consulting www.criticalpoint.co.uk
  91. 91. 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 91 Critical Point Consulting www.criticalpoint.co.uk
  92. 92. Critical Point Consulting www.criticalpoint.co.uk Overloaded Programme 4. Loss of Completion Predictability Plan Reality Project 1 ? Project 2 ? Project 3 ? Multi-tasking leads to Fragmentation Fragmentation makes completion unpredictable 92
  93. 93. Summary Traditional Project Management Overloaded Programme Project fragmentation causes delays Increased exposure to changes Drives multi-tasking Competition for Resources Loss of Planning Predictability 93 Critical Point Consulting Critical Point Consulting www.criticalpoint.co.uk
  94. 94. Critical Point Consulting www.criticalpoint.co.uk The Programme & Portfolio Myth 1. That the more projects you start, the more you will get done’ … You won’t 94
  95. 95. Critical Point Consulting www.criticalpoint.co.uk 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? 95
  96. 96. CCPM in Multi-Project Environment: Maximising Throughput Recognise that: Increasing work in progress slows throughput Decreasing work in progress speeds up throughput 96 Critical Point Consulting www.criticalpoint.co.uk
  97. 97. 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 97 Critical Point Consulting www.criticalpoint.co.uk
  98. 98. 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 98 Critical Point Consulting www.criticalpoint.co.uk
  99. 99. Stagger Project Starts on Key Resource Project 1 KR Project 2 KR KR Project 3 KR KR KR Key Resource Stagger projects = faster completions 99 Critical Point Consulting www.criticalpoint.co.uk
  100. 100. 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 100 Critical Point Consulting Critical Point Consulting www.criticalpoint.co.uk
  101. 101. Critical Point Consulting www.criticalpoint.co.uk It’s what you finish… …not what you start. 101
  102. 102. CCPM Programme Management The Programme Fever Chart Singular Objective Predictive Easily interpreted Auto constructed Up-to-date Immediate Programme Fever Chart focusses on projects that need attention 102 Critical Point Consulting www.criticalpoint.co.uk
  103. 103. Critical Chain Project Management Progress Monitoring Drill Down for detail 103 Critical Point Consulting www.criticalpoint.co.uk
  104. 104. The Evidence for CCPM 104 Critical Point Consulting www.criticalpoint.co.uk
  105. 105. 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 105 Ventana Critical Point Consulting www.criticalpoint.co.uk
  106. 106. 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, TN. 106 Critical Point Consulting www.criticalpoint.co.uk
  107. 107. Critical Point Consulting www.criticalpoint.co.uk 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).” Boeing Space Shuttle Development Results using CCPM: 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 107
  108. 108. Critical Point Consulting www.criticalpoint.co.uk 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.155 108
  109. 109. Critical Point Consulting www.criticalpoint.co.uk 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. 109
  110. 110. 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 110 Critical Point Consulting www.criticalpoint.co.uk
  111. 111. 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) 111 Critical Point Consulting www.criticalpoint.co.uk
  112. 112. Critical Point Consulting Over 15 years 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 at your organisation info@criticalpoint.co.uk 01892 506881 www.criticalpoint.co.uk 112 Critical Point Consulting www.criticalpoint.co.uk
  113. 113. 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 113 Critical Point Consulting www.criticalpoint.co.uk
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