The real reason that projects fail and how to fix it - An introduction to Critical Chain Project Management
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The real reason that projects fail and how to fix it - An introduction to Critical Chain Project Management

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This presentation was given by Gary Palmer on Wednesday 2nd April 2014. Airbus in Bristol very kindly hosted the event which was well attended by almost 80 of the local APM membership and project ...

This presentation was given by Gary Palmer on Wednesday 2nd April 2014. Airbus in Bristol very kindly hosted the event which was well attended by almost 80 of the local APM membership and project management community.

An introductory-level presentation to critical chain project management (CCPM), primarily aimed at those new to the subject.

Critical chain project management (CCPM) is fast emerging as a major step change in project management, dramatically improving project speed and predictability. Although currently relatively little-known in the UK, it has become well-established and highly successful in America, India and Japan, and is predicted to become a dominant methodology within the next few years.

CCPM changes many typical project management practices and behaviours, and by these changes removes the in-built inefficiencies in ‘traditional’ project management, enabling projects to run faster and with more effective protection against uncertainty, whilst providing much improved visibility of progress and monitoring both at the single project and multi-project (programme and portfolio) levels.

This presentation introduces the main principles of CCPM and compares and contrasts them with current project management practices, with an overview of CCPM’s history and development, use of the methods in programme and portfolio situations, current adoption in industry, and implementation considerations.

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    The real reason that projects fail and how to fix it - An introduction to Critical Chain Project Management The real reason that projects fail and how to fix it - An introduction to Critical Chain Project Management Presentation Transcript

    • Gary Palmer Critical Point Consulting 1
    • www.criticalpoint.co.uk CriticalPointConsulting Late What do we mean by ‘Project Failure’? 2 Over Budget Below Specification Below Quality Any one of:
    • www.criticalpoint.co.uk CriticalPointConsulting Late 3 + Over Budget + Below Specification + Below Quality Why do we need to change? - 1 Because huge numbers of projects are:
    • www.criticalpoint.co.uk CriticalPointConsulting Why do we need to change? - 2 4 Productivity & Throughput: Often Low Excessive Wastage Slow Progress Costly
    • www.criticalpoint.co.uk CriticalPointConsulting Why do we need to change? - 3 5 Business Impact: Product Expensive Late to Market Customer Dissatisfaction Reputation Project Failure & Slow Costly Projects Cripples Business
    • www.criticalpoint.co.uk CriticalPointConsulting Late 6 Over Budget Below Specification Below Quality What is the main driver for these failures? Late projects fuel other failures:
    • www.criticalpoint.co.uk CriticalPointConsulting 1. The traditional methods in use, VIRTUALLY GUARANTEE these results. 7 2. We have not had a viable alternative. Until now… What are the reasons for this?
    • www.criticalpoint.co.uk CriticalPointConsulting CCPM Statistics: Project Delivery: 90%+ on time Project Completion: 20% - 50% Faster Productivity: 20% - 60% Increase Critical Chain Project Management 8 Without increasing resources
    • www.criticalpoint.co.uk CriticalPointConsulting 9 By resolving problems in our working methods that: 1. Slow everything down 2. Cause our contingency to be ineffective 3. Cause inefficiencies and wastage How Does CCPM Deliver These Improvements?
    • www.criticalpoint.co.uk CriticalPointConsulting ‘A transportable set of interlinked techniques and tools that work individually and collaboratively to significantly improve the processes and operation of scheduling and execution in any* project, programme and portfolio environment’ What is CCPM? 10
    • www.criticalpoint.co.uk CriticalPointConsulting ‘A transportable set of interlinked techniques and tools that work individually and collaboratively to significantly improve the processes and operation of scheduling and execution in any* project, programme and portfolio environment’ What is CCPM? 11 Transportable: Not industry / sector specific Applicable in any* project environment Works with existing project structures
    • www.criticalpoint.co.uk CriticalPointConsulting ‘A transportable set of interlinked techniques and tools that work individually and collaboratively to significantly improve the processes and operation of scheduling and execution in any* project, programme and portfolio environment’ What is CCPM? 12 Techniques: Working practices, Behaviours Tools: Processes, Software
    • www.criticalpoint.co.uk CriticalPointConsulting ‘A transportable set of interlinked techniques and tools that work individually and collaboratively to significantly improve the processes and operation of scheduling and execution in any* project, programme and portfolio environment’ What is CCPM? 13 Individually: Resolve a specific problem Collaboratively: In unison to support the whole
    • www.criticalpoint.co.uk CriticalPointConsulting ‘A transportable set of interlinked techniques and tools that work individually and collaboratively to significantly improve the processes and operation of scheduling and execution in any* project, programme and portfolio environment’ What is CCPM? 14 Improvements: Efficient processes Faster operation Better work environment
    • www.criticalpoint.co.uk CriticalPointConsulting ‘A transportable set of interlinked techniques and tools that work individually and collaboratively to significantly improve the processes and operation of scheduling and execution in any* project, programme and portfolio environment’ What is CCPM? 15 Scheduling: Optimum, realistic schedule Effective contingency protection Execution: Efficient working practices Excellent progress visibility, focus, control
    • www.criticalpoint.co.uk CriticalPointConsulting ‘A transportable set of interlinked techniques and tools that work individually and collaboratively to significantly improve the processes and operation of scheduling and execution in any * project, programme and portfolio environment’ What is CCPM? 16 Projects: Single projects Programme: Multi-project Any Sector Portfolio: Enterprise-wide
    • 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 So, what are the problems in Traditional Proj. Mgmt.?
    • 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 18
    • www.criticalpoint.co.uk CriticalPointConsulting Planned Completion Characterised by Deadline Dates and Milestones 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 19 19/10
    • www.criticalpoint.co.uk CriticalPointConsulting Shouldn’t early and late finishes balance out? Usually not. 20 Traditional Project Management Task Deadline Scheduling – Planning to Fail
    • www.criticalpoint.co.uk CriticalPointConsulting Potential Early Finish Parkinson’s Law – ‘Work expands to fill the time available’ Task Deadline Date Missed Time-Saving 21 Traditional Project Management Task Deadline Scheduling – Planning to Fail
    • www.criticalpoint.co.uk CriticalPointConsulting 3 d7 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 22 Traditional Project Management Task Deadline Scheduling – Planning to Fail 5 days 5 days 5 days ✓ ✓ ✓ 3 d✓
    • www.criticalpoint.co.uk Calculation: (Task Probability%^no. of tasks) With a 90% task probability: 10 tasks = 35% probability 20 tasks = 12% 50 tasks = 0.05% 100 tasks = 0.000026% Q? - How many tasks in your current project? CriticalPointConsulting Q- What is the probability of all a project’s tasks finishing on time? 23 Traditional Project Management Task Deadline Scheduling – Planning to Fail
    • www.criticalpoint.co.uk CriticalPointConsulting Due Dates attempt a rigid structure on a variable situation A ‘Train Timetable’ - where the trains never run on time 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 24 Traditional Project Management Task Deadline Scheduling – Planning to Fail
    • www.criticalpoint.co.uk CriticalPointConsulting Task-Level Contingency Poor Measures & Control Multi-tasking Critical Path 25 CCPM Schedule Critical Chain Project Management The Five Elements of Success
    • www.criticalpoint.co.uk CriticalPointConsulting Planned Completion 09/09 1/10 13/09 23/09 06/10 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 26 Why schedule and publish fixed dates and deadlines…. …if we know they will change?
    • 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 27 Estimated Task Dates used for initial planning CCPM Schedule
    • www.criticalpoint.co.uk CriticalPointConsulting Very few Internal Due Dates / Deadlines Schedule is used primarily as a Dependency Chart Each task completes asap and next task is started No schedule updating necessary CCPM Schedule 28 09/09 13/09 1/09 10/09 30/12
    • www.criticalpoint.co.uk CriticalPointConsulting Potential Early Finish Task Deadline Date CCPM Schedule 29 So now, without deadlines to fuel Parkinson behaviours,
    • www.criticalpoint.co.uk CriticalPointConsulting Potential Early Finish Task Deadline Date CCPM Schedule 30 So now, without deadlines to fuel Parkinson behaviours, Our potential Early Finish…
    • www.criticalpoint.co.uk CriticalPointConsulting Potential Early Finish Task CCPM Schedule 31 So now, without deadlines to fuel Parkinson behaviours, Our potential Early Finish…
    • www.criticalpoint.co.uk CriticalPointConsulting Actual Early Finish Task CCPM Schedule 32 …can become a reality.
    • www.criticalpoint.co.uk CriticalPointConsulting across the whole project CCPM Schedule 33
    • www.criticalpoint.co.uk Shorter Task Execution = Reduced Time & Costs Faster and Cheaper Projects CriticalPointConsulting CCPM Schedule 34
    • www.criticalpoint.co.uk CCPM values speed over working to fixed dates CriticalPointConsulting Summary Very few internal due dates Work carried out on an ‘as soon as possible’ basis A ‘Relay Race’ (not a ‘Train Schedule’) Early finishes reduce timescales & cost Flexible structure for a variable environment Few due dates means few / no schedule updates CCPM Schedule 35
    • www.criticalpoint.co.uk CriticalPointConsulting Traditional Project Management The Five Elements of Failure Task-Level Contingency Poor Measures & Control Multi-tasking Critical Path 36 CCPM Schedule
    • www.criticalpoint.co.uk 37 Familiarity with technology Known Unknowns Unknown Unknowns Fear of Failure Confidence in Spec. Estimate chopping Confidence in own ability Complexity of the taskFamiliarity with task Specification Stability Multi-tasking Task-Level Contingency Easy LifeInterruptions How Much Contingency?
    • www.criticalpoint.co.uk 38 Familiarity with technology Known Unknowns Unknown Unknowns Fear of Failure Confidence in Spec. Estimate chopping Confidence in own ability Complexity of the taskFamiliarity with task Specification Stability Multi-tasking Task-Level Contingency Easy LifeInterruptions A Guess
    • www.criticalpoint.co.uk Task-Level Contingency Effect 1- An Extended Schedule CriticalPointConsulting Self-protection (in blue) encourages fat estimates A project may contain > 50% embedded contingency 39
    • www.criticalpoint.co.uk CriticalPointConsulting ContingencyWork Deadline Date Task-Level Contingency Effect 2 – Student Syndrome Scheduled Start 40 Actual Start Initially plenty of contingency No incentive to start immediately Start deferred
    • www.criticalpoint.co.uk CriticalPointConsulting Work Deadline Date Task-Level Contingency Effect 2 – Student Syndrome Scheduled Start 41 Actual Start Contingency decreased
    • www.criticalpoint.co.uk CriticalPointConsulting Deadline Date Task-Level Contingency Effect 2 – Student Syndrome Scheduled Start 42 Other work Work Big Problem Maybe another task is required / preferred Now no contingency left and work is rushed Then a big problem surfaces…
    • www.criticalpoint.co.uk CriticalPointConsulting Deadline Date Task-Level Contingency Effect 2 – Student Syndrome Scheduled Start 43 Other work Work Big Problem And now we have a task over-run…
    • www.criticalpoint.co.uk CriticalPointConsulting Delayed Completion Planned Completion If on a Critical Path task = project over-run Task-Level Contingency Effect 3 – Unprotected Project End-Date 44
    • www.criticalpoint.co.uk Task-Level Contingency Effect 4- Unmanaged Time CriticalPointConsulting 45 Traditional contingency (shown in Blue)
    • www.criticalpoint.co.uk CriticalPointConsulting Where is the contingency? How do you measure and manage it? Maybe 50% of project time is not under control Task-Level Contingency Effect 4 – Unmanaged Time 46 Project Manager’s View
    • www.criticalpoint.co.uk Inflated ‘Localised’ Estimates which generate Student Syndrome which results in Parkinson’s Behaviours and Long, Over-padded Schedules which encourages Self-Protection leads to CriticalPointConsulting Unprotected From Delays and which have Traditional Project Management Task-level Contingency Hidden, Unmanaged Contingency Slow and Costly Projects which are still Task-Level Contingency - Problem Cascade 47
    • www.criticalpoint.co.uk CriticalPointConsulting Task-Level Contingency Poor Measures & Control Multi-tasking Critical Path 48 CCPM Schedule Traditional Project Management The Five Elements of Failure
    • www.criticalpoint.co.uk CriticalPointConsulting Poor Measures & Control Multi-tasking Critical Path 49 CCPM Schedule Project-Level Contingency Critical Chain Project Management The Five Elements of Success
    • www.criticalpoint.co.uk CriticalPointConsulting 50 High Levels of Embedded Contingency CCPM Project-Level Contingency Traditional Task-Level Contingency (Review)
    • www.criticalpoint.co.uk CriticalPointConsulting CCPM Project-Level Contingency Remove task-level contingency 51 Remove task-level contingency
    • www.criticalpoint.co.uk CriticalPointConsulting CCPM Project-Level Contingency Remove task-level contingency 52 Task Estimates have no in-built contingency Estimates are based on ‘Aggressive-but-possible’ task times
    • 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 53
    • 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 54
    • 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 55
    • www.criticalpoint.co.uk CriticalPointConsulting CCPM Project-Level Contingency Project Protection Project Commit Date Project Buffer Buffer Status shows the impact on contingency Now able to measure and manage our contingency Buffer Status 56
    • 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 57 Buffer Status
    • 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 Fast and Efficient Projects which are CCPM Project-Level Contingency 58 Project-Level Contingency Cascade
    • www.criticalpoint.co.uk CriticalPointConsulting Traditional Project Management The Five Elements of Failure Poor Measures & Control Multi-tasking Critical Path 59 CCPM Schedule Project-Level Contingency
    • 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? 60
    • 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 61 Tasks F & C need the same resources, as do tasks G & I
    • 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 62
    • www.criticalpoint.co.uk Critical Path Problems 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… 63
    • 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 & Control becomes difficult 64
    • 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 65
    • 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 66
    • 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 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 67
    • www.criticalpoint.co.uk CriticalPointConsulting Traditional Project Management The Five Elements of Failure Poor Measures & Control Multi-tasking 68 CCPM Schedule Project-Level Contingency Critical Path
    • www.criticalpoint.co.uk CriticalPointConsulting Poor Measures & Control Multi-tasking 69 CCPM Schedule Project-Level Contingency Critical Chain Critical Chain Project Management The Five Elements of Success
    • 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 - right at the start 70
    • 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 71 Resource-levelling the schedule… Prevents over-allocation of resources
    • 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… Priority sequence also goes to resource dependent tasks A realistic critical sequence – The Critical Chain 72
    • 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 73 Irrespective of what you draw in the CP schedule, the real situation will be driven by the realities of resource constraints
    • www.criticalpoint.co.uk Critical Chain / Critical Path Comparison 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 74 If there are no resource clashes, the Critical Chain will be the same as the Critical Path Task H Task F Task I Task B Task C Task D Task G Task A Task J Task E
    • www.criticalpoint.co.uk Correct Dependency Path with Realistic Priorities which provides a Including Resources Contentions leads to a CriticalPointConsulting Stable Schedule Realistic Project Duration and Project Under Control with a CCPM Critical Chain Critical Chain Cascade 75
    • www.criticalpoint.co.uk CriticalPointConsulting Traditional Project Management The Five Elements of Failure Poor Measures & Control Multi-tasking 76 CCPM Schedule Project-Level Contingency Critical Chain
    • 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 31 Days • Speed – Everything is delayed • Quality – Likely to be less • Productivity - Reduced Day 24 Day 9 • Nothing gets completed until day 24. Task 1: + 15 days late(+165%) Task 2: + 8 days late (+47%) Task 3: + 2 days late (+22%) CriticalPointConsulting Traditional Project Management Multi-tasking: The Illusion of being productive 77
    • 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 78
    • www.criticalpoint.co.uk CriticalPointConsulting Poor Measures & Control 79 CCPM Schedule Project-Level Contingency Critical Chain Single-tasking Critical Chain Project Management The Five Elements of Success
    • www.criticalpoint.co.uk CriticalPointConsulting One task only worked on at a time No interruptions Dedicated work until task complete CCPM - Task Management Single Tasking 80
    • www.criticalpoint.co.uk Task 1: 9 days Task 2: 9 days Task 3: 9 days Time Without Multi-tasking: 27 Days CriticalPointConsulting CCPM Single Tasking The reality of being productive Return to effective and efficient working
    • 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? 82
    • 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 83
    • www.criticalpoint.co.uk CriticalPointConsulting Traditional Project Management The Five Elements of Failure Poor Measures & Control Multi-tasking 84 CCPM Schedule Project-Level Contingency Critical Chain Single-tasking
    • 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 Infrequent reporting gives psychological cushion Reality is often ignored - An easy place to hide Traditional Project Management Progress Measurement 85
    • 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 86 What is the Only Question PM’s get asked?
    • www.criticalpoint.co.uk CriticalPointConsulting ‘Are you 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 87
    • 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 88
    • www.criticalpoint.co.uk CriticalPointConsulting Critical Chain Project Management The Five Elements of Success Multi-tasking 89 CCPM Schedule Project-Level Contingency Critical Chain Single-tasking Good Measures Visible Control
    • www.criticalpoint.co.uk CriticalPointConsulting CCPM Progress Reporting: Often When any significant change occurs 90 CCPM Progress Measurement Is task complete? If not, how much task-time left remaining? Frequency: Questions:
    • www.criticalpoint.co.uk CriticalPointConsulting CCPM Progress Measurement ‘Critical Chain’ Completed ✓ ✓✓ Critical Chain completed reported into CCPM software 91 A B C D E F
    • www.criticalpoint.co.uk CriticalPointConsulting CCPM Progress Measurement Contingency Buffer Usage 92 +3 +3 A B C D E F ✓
    • www.criticalpoint.co.uk CriticalPointConsulting CCPM Progress Measurement Contingency Buffer Usage Task C has no effect on buffer 93 Buffer Used +3 +3 +3 +3 Buffer Remaining A B C D E F ✓
    • www.criticalpoint.co.uk CriticalPointConsulting CCPM Progress Measurement Seeing into the Future Immediate report from task D that an extra 5 days will be required This report immediately shows in Buffer Usage Provides ‘view ahead’ notification of future position 94 Buffer Used +3 +3 +5 +3 +3 Buffer Remaining DCB A E F +5 Early Report
    • www.criticalpoint.co.uk CriticalPointConsulting Amount of critical work completed: Critical Chain Put these two together… CCPM Progress Measurement 95 Now we have two key measurements: How much contingency remaining: Project Buffer
    • www.criticalpoint.co.uk CriticalPointConsulting Singular Objective Predictive Easily interpreted Auto constructed Up-to-date Immediate CCPM Progress Measurement The Fever Chart 96
    • www.criticalpoint.co.uk CriticalPointConsulting Frequent Reporting: Progress is always up-to-date Project position is always up-to-date Summary - 1 CCPM Progress Measurement 97
    • 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 98
    • 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 99
    • www.criticalpoint.co.uk CriticalPointConsulting Critical Chain Project Management The Five Elements of Success Multi-tasking 100 CCPM Schedule Project-Level Contingency Critical Chain Single-tasking Good Measures Visible Control So, have we fixed all of the problems? Yes – but not just these; CCPM fixes a bigger problem and the reason that past improvements have not succeeded
    • www.criticalpoint.co.uk Vicious Circles CriticalPointConsulting 101
    • www.criticalpoint.co.uk CriticalPointConsulting Traditional Project Management The Five Problems Task-Level Contingency Poor Measures & Control Multi-tasking Critical Path Deadline Schedule 102What problem is also caused by these five issues?
    • www.criticalpoint.co.uk CriticalPointConsulting Schedule Changes Schedule Changes Schedule Changes Schedule Changes Schedule Changes 103Each individual issue causes schedule changes Task-Level Contingency Poor Measures & Control Multi-tasking Critical Path Deadline Schedule Traditional Project Management Schedule Instability
    • www.criticalpoint.co.uk CriticalPointConsulting Schedule Changes Schedule Changes Schedule Changes Schedule Changes Schedule Changes 104 Task-Level Contingency Poor Measures & Control Multi-tasking Critical Path Deadline Schedule And Schedule changes cause other problems and… Traditional Project Management Problem Self-Perpetuation
    • www.criticalpoint.co.uk CriticalPointConsulting Schedule Changes Schedule Changes Schedule Changes Schedule Changes Schedule Changes 105Each individual problem area perpetuates others Task-Level Contingency Poor Measures & Control Multi-tasking Critical Path Deadline Schedule Traditional Project Management Problem Self-Perpetuation
    • www.criticalpoint.co.uk CriticalPointConsulting Traditional Project Management Problem Self-Perpetuation Schedule Changes Schedule Changes Schedule Changes Schedule Changes Schedule Changes 106Locked-in, self-perpetuating, systemic failure Task-Level Contingency Poor Measures & Control Multi-tasking Critical Path Deadline Schedule
    • www.criticalpoint.co.uk CriticalPointConsulting CCPM Solutions Schedule Changes Schedule Changes Schedule Changes Schedule Changes Schedule Changes 107 Project-Level Contingency CCPM Schedule Critical Chain Single-tasking Rem. Duration Visible Control Fixing the internal problems removes vicious circles:
    • www.criticalpoint.co.uk CriticalPointConsulting CCPM Schedule Stability 108And the causes of schedule changes and their impact Schedule Changes Schedule Changes Schedule Changes Schedule Changes Schedule Changes Project-Level Contingency CCPM Schedule Critical Chain Rem. Duration Visible Control Single-tasking
    • www.criticalpoint.co.uk CriticalPointConsulting Project-Level Contingency Rem. Duration Visible Control Single-tasking Critical Chain CCPM Schedule CCPM Schedule Stability 109 CCPM removes the causes of problem perpetuation schedule changes and systemic failure
    • 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 110 CCPM Solutions: Flexible Scheduling Project-Level Contingency Critical Chain Single-tasking Good Measures & Control Schedule Stability Solution Constancy Poor Work Environment = ‘Progressive Excellence’ Good Work Environment = ‘Terminal Mediocrity’
    • www.criticalpoint.co.uk Programme & Portfolio Myth CriticalPointConsulting Achieving Terminal Mediocrity on a Large Scale 111
    • www.criticalpoint.co.uk CriticalPointConsulting The Programme & Portfolio Myth 1. That the more projects you start, the more you will get done 112 CCPM in Programme and Portfolio
    • 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 If projects have to time-slice, Fragmentation will delay all projects Driven by edict for all projects to be shown as started 113 Overloaded Programme 1. Project Time-Slicing
    • 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 9 mths 21 mths Longer elapsed time gives more exposure time for changes Changes generate more work and extend projects further Meanwhile unfinished work gets ‘rusty’ 114 Overloaded Programme 1. Project Time-Slicing
    • www.criticalpoint.co.uk CriticalPointConsulting Frequently great pressure to start more projects - Often ignoring the realities of resource capacity 115 Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Overloaded Programme 2. Simultaneous Projects
    • www.criticalpoint.co.uk CriticalPointConsulting Project 1 Project 2 Project 3 116 Project 4 Project 5 Project 6 Reality at Working Level Insufficient resource causes Cross-Project Reallocations ‘Who shouts loudest’ gets the resources All projects suffer and get delayed Exterior View Overloaded Programme 2. Simultaneous Projects
    • www.criticalpoint.co.uk CriticalPointConsulting 117 Overloaded Programme Who gets the resources?
    • www.criticalpoint.co.uk CriticalPointConsulting Project 1 Project 2 Project 3 Overloaded Programme 118 Project 4 Project 5 Project 6 Reality at Working Level Gaps left in projects fuel Multi-tasking Exterior View
    • www.criticalpoint.co.uk CriticalPointConsulting Project 1 Project 2 Project 3 Overloaded Programme 119 Project 4 Project 5 Project 6 Reality at Working Level Gaps + multi-tasking delay all projects Constant changes make schedules volatile / unworkable Exterior View
    • www.criticalpoint.co.uk CriticalPointConsulting Project 1 Project 2 Project 3 Overloaded Programme 120 Project 4 Project 5 Project 6 Reality at Working LevelExterior View . . . .? . . . .? . .? . .? . .? Major impact is that completion becomes unpredictable
    • www.criticalpoint.co.uk CriticalPointConsulting An Overloaded system causes: Fighting over Insufficient Resources Volatile / Unworkable Schedules Fuels Multi-tasking Delays Loss of Completion Predictability Summary Traditional Project Management Overloaded Programme CriticalPointConsulting 121
    • 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 122 … You won’t
    • www.criticalpoint.co.uk CriticalPointConsulting Project 1 Project 2 Project 3 Overloaded Programme 123 Project 4 Project 5 Project 6 Reality at Working LevelExterior View . . . .? . . . .? . .? . .? . . .? How did we got here?
    • www.criticalpoint.co.uk CriticalPointConsulting Project 1 Project 2 Project 3 Overloaded Programme 124 Project 4 Project 5 Project 6 Reality at Working LevelExterior View . . . .? . . . .? . .? . .? . . .? Belief that ‘More Work In = More Work Out’ Lack of Real Priorities (‘It’s all Top Priority!’) Lack of regime to prevent overloading
    • www.criticalpoint.co.uk CriticalPointConsulting Forcing work in over capacity slows throughput Working within capacity speeds up throughput Solution: Convince management of the above realities Stop feeding in more than system can manage CCPM in Multi-Project Environment: Maximising Throughput 125 Problem 1: ‘More Work In = More Work Out’
    • www.criticalpoint.co.uk CriticalPointConsulting Not having clear prioritisation slows throughput Having priorities speeds up throughput Solution: Priorities are mandatory ‘It’s all Top Priority!’ is banned All decisions start with Priorities Priorities need to be business-based CCPM in Multi-Project Environment: Maximising Throughput 126 Problem 2: Lack of Priorities
    • www.criticalpoint.co.uk CriticalPointConsulting No loading rules = No control = Overloading Solution: Start new projects only when capacity allows ‘Stagger’ new projects starts to avoid major issues CCPM in Multi-Project Environment: Maximising Throughput 127 Problem 3: Lack of regime to prevent overloading
    • www.criticalpoint.co.uk CriticalPointConsulting • Prioritise ! • ‘Stagger’ project starts to avoid major contention • Start new projects only when capacity allows CCPM in Multi-Project Environment: Maximising Throughput 128 Solution Summary:
    • www.criticalpoint.co.uk CriticalPointConsulting 129 Project E Project D Project C Project A Project B Project F CCPM in Multi-Project Environment: Prioritise! Priority 1 Priority 6 Priority 5 Priority 4 Priority 3 Priority 2
    • www.criticalpoint.co.uk CriticalPointConsulting 130 Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 CCPM in the Multi-Project Environment: Priority 1 Priority 6 Priority 5 Priority 4 Priority 3 Priority 2
    • www.criticalpoint.co.uk Project 6 Project 4 Project 5 CriticalPointConsulting 131 Project 1 Project 2 Project 3 CCPM in the Multi-Project Environment: ? =
    • www.criticalpoint.co.uk CriticalPointConsulting 132 Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 CCPM in the Multi-Project Environment: ? =
    • www.criticalpoint.co.uk CriticalPointConsulting 133 Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 CCPM in Multi-Project Environment: ?
    • www.criticalpoint.co.uk CriticalPointConsulting 134 CCPM in Multi-Project Environment: ? KR KR KR KR KR KR
    • www.criticalpoint.co.uk CriticalPointConsulting CCPM in Multi-Project Environment: KR KR KR KR
    • www.criticalpoint.co.uk CriticalPointConsulting 136 CCPM in Multi-Project Environment: KR KR KR KR KR KR
    • www.criticalpoint.co.uk CriticalPointConsulting 137 CCPM in Multi-Project Environment: What’s the new picture look like? KR KR KR KR
    • www.criticalpoint.co.uk It’s what you finish… …not what you start. CriticalPointConsulting 138
    • www.criticalpoint.co.uk 139 Proj A Proj B Proj C Proj E Proj F 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% PercentageofBufferUsed Percentage of Critical Chain Completed Multi-project Fever Chart Programme Fever Chart focusses on projects that need attention CCPM Programme Management The Programme Fever Chart CriticalPointConsulting
    • www.criticalpoint.co.uk The Evidence for CCPM CriticalPointConsulting 140
    • 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 - 1 141
    • 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 - 2 142
    • www.criticalpoint.co.uk CriticalPointConsulting Results: After having used it in 2,523 public works projects in 2007 and over 4,000 projects in 2008, the Japanese government now requires that CCPM be used on all public works projects (approximately 20,000 projects per year).” Japanese Government 143 Source: ProChain Inc. http://www.prochain.com/clients/results.html Copyright © 2013 by ProChain Solutions, Inc. All rights reserved. ProChain is an industry-leading US-based CCPM software developer and implementer. Here are some client quotes from various case studies using ProChain products: CCPM Software - ProChain Inc. • ‘Reduced first project more than 10 months (approx. 50%)’ • ‘Between 25 - 50 % reduction on first 10 projects’ • ‘On-time completion of projects increased from 22% to well above 90%’ • ‘On-time completion of projects now at 100%’ • ‘Average project length reduced by more than 50%’ • ‘On-time delivery of projects went from 40% to nearly 100%’ • ‘More than doubled project throughput’ • ‘Return on investment conservatively 500:1’
    • 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 144
    • www.criticalpoint.co.uk CriticalPointConsulting Professional Recognition Conference Presentation Critical Chain Project Management using Microsoft Project 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 11 years. 145
    • www.criticalpoint.co.uk 146 The Theory of Constraints & CCPM - 30yrs in the making: The work and books of Eli Goldratt 1985 1990 1995 2000 2005 2010 Manufacturing, Accounting, Production The Goal, The Race, The Haystack Syndrome The Thinking Process The Jonah Program, The Choice Distribution, Marketing, Management It’s Not Luck Project Management Critical Chain TOC & Technology Necessary But Not Sufficient TOC & Business Strategy Viable Vision Retail Isn’t It Obvious? CriticalPointConsulting
    • www.criticalpoint.co.uk CriticalPointConsulting Development: Result of many years of continuous development Based on Theory of Constraints (TOC) 1980’s – 1990’s Needed software to be truly viable Software too slow to develop Software now mature & robust (see ProChain.com) Key Publications by Eliyahu Goldratt: 1984 'The Goal' – TOC in manufacturing 1997 ‘Critical Chain’ - Applying TOC to project management CCPM Potted History 147
    • 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 148
    • www.criticalpoint.co.uk CriticalPointConsulting Over 15 years experience of implementing CCPM in Multiple companies / Multiple industries info@criticalpoint.co.uk www.criticalpoint.co.uk UK: 01892 506881 | Intl: +44 1892 506881 Critical Point Consulting 149