Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For aca...
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  1. 1. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 1Session 11Effort Perspective: Critical ChainMulti Project ManagementDr. Thomas Lechler Babbio Center 416Phone: (201) 216-8174 FAX: (201) 216-5385email: tlechler@stevens.edu
  2. 2. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 2Session 11: Course PointerShareholderValueOutputValueStakeholderValueEffortValueCriticalChain
  3. 3. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 3Session 11: Evidence1. How to solve resource conflicts in a multi projectenvironment?2. What is the leverage to raise the efficiency in a multi projectenvironment?3. How to control projects with CC?4. How to manage risks with CC?
  4. 4. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 4Topics and Objectives• Analyzing Critical Chain Multi Project Management• Understanding perceptions of effort which influencethe project portfolio’s value• Understanding the portfolio as a time-dependent,throughput-constrained chain of value• Scheduling effort in a project portfolio as a time-dependent chain of value• Integrating changes to effort without destroying theproject portfolio’s structural integrity• Risk Management with Buffers• Improving effort value
  5. 5. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 5Session 11: Agenda• Introduction• Basic Problems• Multi-Project Management• Critical Chain Multi-Project Management• CC Summary• CC Buffer Management• CC Risk Management
  6. 6. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 6Basic Problem: Multi-Project ContextSamples: USA: 172 Projects (112 succ., 50 fail.)GER: 448 Projects (257 succ., 191 fail.)Correlation Coefficients Resource ConflictsSuccess Criteria GER USAEfficiency -.20 -.26Effectiveness -.15 -.19Customer Satisfaction -.21 -.21Business Results -.20 -.19MEANS 4.4 4.1• Many projects suffer under resource conflicts• Resource conflicts have negative impact
  7. 7. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 7Basic Problems: Projects Systems• A collection– links in isolation• how tasks and projectsare viewed traditionally• A system– Links interacting• A constraint– Limits systemperformance
  8. 8. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 8Basic Problems: Project Management Practice• What is the worst thing we can do as a projectmanager? As a manager of project managers?• What causes more harm, more delay, to ourprojects than any other project practice? (Apractice so evil our competitors should bribe usto do it…)
  9. 9. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 9Basic Problem: The “Evils” of MultitaskingMultitasking:• The practice of assigning one personconcurrently to two or more tasks, and expectingthem to make progress on all of them!• Resources will be fully utilized!– Everyone busy all the time• Is this an effective way to manage projects?– Is there an alternative?
  10. 10. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 10Multi-Project Mgt.: Typical Environment212|01|0a e hdc30|020 daysb f ia cba cbed fed fh ih i20 days20 daysgggjjj•3 projects, 10 tasks, and 3 resources…•How long will it take?•When will we get some benefits?
  11. 11. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 11Multi-Project Mgt.: Multitasking122|0 4|0 6|01|0 5|0a e hdc33|00|048 days50 days52 daysb f ia cba cbed fed fh ih igggjjj• Constraint:• Limited Resources• Lead-time of all projects take at least 48 days• No benefits until when?
  12. 12. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 12Multi-Project Mgt.: No Multitasking122|01|0a e hdc33|00|020 days28 days36 daysb f ia cba cbed fed fh ih igggjjj4|0• Constraint:• Limited Resources• No Multitasking• All projects finish sooner• Benefit stream arrives earlier
  13. 13. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 13Multi-Project Mgt.: The Cost of Multitasking122|01|0a e hdc33|00|020 days28 days36 daysb f ia cba cbed fed fh ih igggjjj4 44 daysa cb ed f h ig j4|0 5|05 52 daysa cb ed f h ig j• Would you rather have three projects,or five projects — for no additional cost?
  14. 14. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 14Multi-Project Mgt.: Basic Conflict of MultitaskingWe have limitedresourcesADeliver themaximum valuefrom projectsBStart work on a newprojectCComplete work on mycurrent projectDDont switch tonew project taskDSwitch to newproject taskTo make progress, aproject must haveresourcesInterrupting workcauses it to takelongerProject dont delivervalue until theyfinish"Well get moredone if we maximizethe amount of workbeing done""Well get moredone if we maximizethe rate that work isfinished"Adding or removingone person from aproject makes noapparent difference...To focus, we have toprioritize projects...and postpone some© 2000 ZULTNER & COMPANYIn order to besuccessfulwe must...A resource canonly work on onetask at a timelong-termshort-term
  15. 15. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 15CC: The Required Paradigm Shift• We must change from– A local view of productivity• Any resource working is productive– “If they aren’t working, get them work to do!”• The productivity of the organization is just the sum of theproductivity of the resources• Therefore, ask everyone to work all the time, and judge themaccordingly– To a global (holistic) view of productivity• Judge the performance of the system– How many projects did we deliver this year?
  16. 16. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 16CC: Applying Lean Production• Lean production uses the same paradigm:– Choke the release of materials to the floor– Only work when you have an order• Otherwise, sit idle– Do not work to produce inventory, or increase“efficiencies”– Concentrate on rapid product throughput• Now, time to apply the lean paradigm…in Multi-Project Environments
  17. 17. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 17CC: Maximizing Project Throughput122|01|0a e hdc33|00|020 days28 days36 daysb f ia cba cbed fed fh ih igggjjj4 44 daysa cb ed f h ig j4|0 5|05 52 daysa cb ed f h ig jwaitwait16 days8 days24 days32 dayswaitwait•Projects must WAIT•Because we have a system…
  18. 18. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 18CC: Drum Buffer Concept•Five resources, that can work at the rate indicated– Which resource determines the throughput of the system?• Which is the constraint?– How much should the other resources produce?• Why? You don’t want them to sit idle do you?14 13 10 15 12a b c d eProduction chain example:
  19. 19. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 19CC: Drum Buffer Concept• In any system, there is a limiting factor: the constraint• How can we make sure the constraint always has work?14 13 10 15 12bottlenecka b c d e
  20. 20. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 20CC: Drum Buffer Concept•If the constraint (limiting resource) is idle,throughput is lost for the entire system•All non-constraint resources have excess capacity,and this excess capacity is required for maximumthroughput: it is protective or sprint capacity14 13 10 15 12bufferbottlenecka b c d e
  21. 21. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 21CC: The Drum-Buffer-Rope• In a production system, the maximum throughput is achieved bymanaging the constraint• The Theory of Constraints’ solution for production is “drum-buffer-rope” (a style of lean production)14 13 10 15 12buffergateropea b c d ebottleneckdrumDrum-Buffer-Rope
  22. 22. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 22CC: The Drum Resource Schedulegatedrumx y z 1x y z 2drum bufferx y z 3drum bufferprojectqueueproject pipeline
  23. 23. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 23CC Summary: How does Critical Chain work?• 1. Elimination of multi-tasking– The #1 enemy of productivity causes delays of atleast 15-25% between all projects in an organization Critical Chain Multi-project management• 2. Better management of variation (risk)– The invisible waste of safety within every project is atleast 15-25% Critical Chain Single project management
  24. 24. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 24CC Summary: Critical Chain PM• Critical Chain Project Management– Builds upon traditional project management methods• Builds upon WBS and uses network techniques differently– Provides a systems approach for managing multiple projectssharing a set of resources• Improved system throughput (more projects out in a year withoutadding more resources)– Provides a simple, visible, and powerful way to managepriorities of multiple projects• A superior base for solving priority conflicts– Explicitly takes variation (risk) into account• Efficiency! (reduces time-to-market)
  25. 25. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 25CC Summary: Critical Chain basic elements• Project Planning:: rigorous network buildingand resource placement• Project Synchronization: drum schedule andstaggered release of new projects• Project Scheduling: critical chain andaggregated buffers (pooled safety)• Resource Behavior: aggressive task timesand instant starts (relay runner)• Project Control: buffer management
  26. 26. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 26Causes of Schedule Risk #1 : Multitasking165A56FB14B7129FB6CPB810PB85PB3FB52|04|06|0 5|0 3|0 1|0 0|03sharedresourcedelay!delay!
  27. 27. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 27CC Summary: Critical Chain PM• There are two components to implement:– On an individual project(independently)• SINGLE PROJECT implementation– On the entire set of projects in your organization(sharing a set of resources)• MULTI-PROJECT implementation• You should do both,as the benefits are additive
  28. 28. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 28CC Summary: Critical Chain Benefits• You can shorten the duration of all projects in yourportfolio:– minimum 15-25% reduction• 15% on small projects, 25% on large projects– no added resources (and less overtime!), no sacrificeof value or features, no increase in risk, no cutting ofquality• And dramatically increase the likelihood of delivery on orbefore the committed end date• And increase your project throughput (deliver moreprojects with a given set of resources)
  29. 29. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 29CC Planning vs. ExecutionA major break from the past:– Traditionally, the way you plan a project is alsohow you execute and control the project: by theschedule– In Critical Chain, you plan the project with aresource-constrained critical chain with buffers,according to a drum schedule– But the execution and control is done withbuffer management
  30. 30. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 30CC Buffer ManagementHow do we monitor and control Critical Chainprojects?• Buffer Management– Buffers revisited– Using the buffers– Buffer status
  31. 31. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 31CC Buffer Management: How are we doing?At points 1, 2, and 3, will we make our deadline?5 16START2|04|06|07|0 5|0 3|0 1|0 0|0Copyright ?2000 by Richard Zultner5 5 5 5 5 5 5 5 5141198 tasksto go 5 5 5 5 5 5 55 5 5 5 55 5 55 tasks3 tasks5213
  32. 32. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 32CC Buffer Management: What about 3 Zones?Can we divide the original buffer into thirds, and usethe red, yellow, and green zones to help?5 16START2|04|06|07|0 5|0 3|0 1|0 0|0Copyright ?2000 by Richard Zultner5 5 5 5 5 5 5 5 5141198 tasksto go 5 5 5 5 5 5 55 5 5 5 55 5 55 tasks3 tasks5213
  33. 33. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 33CC Buffer Management: Do 3 Zones work?The last task, in twocases:– 10 days is required,far more than 2/3s• False OK signal– 1 day is required, farless than 1/3• False dangersignalSo when does the 3 Zonerule fail?10 10.510 10.010 two-day tasksprojectstartproject buffer1 1111111111 twenty-day task10 10.510 two-daytasks project buffer1 1111111111 twenty-day task1last tasklast taskprojectstartAB12|04|0 3|0 1|0 0|0
  34. 34. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 34CC Buffer Management: Goldratt’s Measures• Judging the status of the project– Percent of the critical chain complete• “60% on critical chain completed”– Ratio of the critical chain completedto the consumption of the completion buffer• “60% of CC complete, 30% of buffer consumed”– Rate of consumption of the buffer• “We did 21 days of work this month, and onlyconsumed 6 days of the buffer”• What do each of these tell you?
  35. 35. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 35CC Buffer Management: Buffers Status directly?• How much do we have?• How much do we need?• What if your project [re-]started now?• What buffer would you calculate you need?2|03|0 1|0 0|095 5 5-1 daybufferdeposits/withdrawls© 2000 ZULTNER & COMPANY6 5 853 105 +2 days510 -5 daysfinished!2132|03|0 1|0 0|08.67.15.05 5 55553 tasks2 tasks1 task© 2000 ZULTNER & COMPANY
  36. 36. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 36CC Buffer Management: Minimum Buffer Size5 15.810tasks2|04|06|07|0 5|0 3|0 1|0 0|05 5 5 5 5 5 5 5 559 tasks 5 5 5 5 5 5 5 5 15.014.113.212.211.210.08.67.15.08 tasks 5 5 5 5 5 5 57 tasks 5 5 5 5 5 56 tasks 5 5 5 5 55 5 5 5 55 5 5 55 5 55555 tasks4 tasks3 tasks2 tasks1 task555The buffer youneed for whereyou are now, tothe end, is yourminimum bufferrequired
  37. 37. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 37CC Buffer Management: The Voice of the Buffer131712167 tasksleft3 tasksleft 30 days30 days32 days6 tasksleft4 tasksleft35 days 6151818actualMBR2134If we have more than we need, we are more likely tomake the deadline than when we started the project…If we have less than we need, we know how manydays we would like to regain…
  38. 38. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 38CC Buffer Management: Buffer Reporting2|02|5 1|0 |095 5 5-1 dayminimum buffer required?2000 ZULTNER & COMPANY6 5 853 105+2 days510-5 daysfinished!2131|5 |53|08.67.15.0actual buffer+1 buffer-days+5 buffer-days+5 buffer-daysBUFFER STATUSSo…– How manybuffer-daysare you “plus”what is yourneed?Or “minus”?– How can wemanufacturethat amountof good luck?
  39. 39. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 39CC Buffer Management: Monitoring BuffersFBC2 no delay810 1510delay!early!FB2Feeding Buffers protect the critical chain– Monitor the consumption of all feeding buffers:is there sufficient protection left?– Which task is causing the consumption?– Project completion buffers have priority
  40. 40. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 40CC Buffer Management: Monitoring ResourcesRelay Runner resources– Are activities starting assoon as possible—not when the schedulesays?• Are the resourcebuffers too big? Toosmall?– What does the resourceneed to start? Toprepare?• Can we reduce this?310ABResourceBuffer7start!10current task next task31021three days to gotwo days to goone day to gogood luck strikes—early finishthe plan
  41. 41. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 41CC Buffer Management: Traditional artifacts• Traditional schedule-based methods may needrevising. What about:– Milestones?– stage gates?– phase-end reviews?– Earned Value?
  42. 42. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 42CC Buffer Management: Milestones13.94|08|0 6|0 2|0 0|04621 milestoneABC444444444448.04723 milestones444444444445.74846 milestones444444444448.0 8.05.75.75.75.75.7© 2000 ZULTNER & COMPANY1|00bufferbufferbufferMilestones delay projects!
  43. 43. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 43Summary: Project StatusWith Critical Chain and buffer management projectstatus reporting is:• More accurate– We know better when we will deliver, despite Murphy,and how the project stands• Simpler– Less time is spent reporting, so more time can bespent constructively on problems• Enables shorter projects with no trade-offs– Schedule-based approaches force local safety
  44. 44. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 44Summary: Revisions• Float milestones, do not tie to dates– Do not judge project progress by intermediate dates– Use buffer management to judge progress• Educate customers at Customer Reviews– Leverage your superiority in project management– Seek better customers• Earned Value Analysis– Can they accept EVA-like reporting? It is possible toreport in an EVA-like way…
  45. 45. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 45• Plan for variation (and the real world)– Project tasks will vary from any plan, so• do not give task-dates-with-certainty,• give task-windows– Do not track progress against the calendar(scheduled dates)• look at what remains to be done• look at the status of the buffer(s)– Will we still make our deadline?Summary: Project Status
  46. 46. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 46
  47. 47. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 47Project Risk Management: Quantifying Risks• Most risks are judged in terms of impact on the projectschedule– “Big” risk, big impact• Not all risks are task related– Only task-related risks included in task estimates– How to accommodate the rest? Simply?
  48. 48. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 48Project Risk Management: Traditional Risk PMMethods of identifying risks• Objective Sources:– Recorded experience from the past projects and thecurrent project as it proceeds:– Lessons learned files– Program documentation evaluations– Current performance data• Subjective sources: Experiences based upon– knowledgeable experts:– Interviews and other data from subject matter experts– Expert Judgment, Brainstorming
  49. 49. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 49
  50. 50. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 50Project Risk Management: Traditional MonitoringKerzner, 2001, pp.937• Methods for monitoring risks:– Earned value method– Program metrics– Schedule performance monitoring– Technical performance measurement• The monitoring process systematically tracksand evaluates the effectiveness of risk handlingactions against established metrics.
  51. 51. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 51Project Risk Management: Traditional Risk PM• Why are existing risk management methods not used inyour organization?– Ignorance? (Why?)– No time (They ADD more time to a project that isalready TOO LONG!)• But with Critical Chain, we have time– To do risk management, and any other “we know weshould do that, but we do not have time” methods…
  52. 52. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 52Traditional Risk Management: Traditional PM• Why are existing risk management methods not used inyour organization?– Ignorance? (Why?)– No time (They ADD more time to a project that isalready TOO LONG!)• But with Critical Chain, we have time– To do risk management, and any other “we know weshould do that, but we do not have time” methods…
  53. 53. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 53Project Risk Management: Causes of Risks• Identify non-task related risks (project risks)– Can they be prevented? Where?• Add effort– Can they be detected early? Where?• Add checks (inspections)– Can they be minimized by a rapid response?• What response? How much effort?• Add into project completion buffer• Filling the gap between the 1/3 rule of thumb and thecalculated minimum buffer required
  54. 54. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 54CC Risk Management: Extending the Buffer5651|02|03|0 2|5 1|5 |5 0|0duration8.6650% 90%variationextra-task riskintra-task risk2 3prevention actions protection timeproject bufferRisk Management• After risk identification the project could be protected byextending the buffer size.
  55. 55. Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler and David Keeney. All rights reserved.For academic use only. 55CC Risk Management: Avoiding Multitasking• De-implementing multitasking is hard work– Not everyone will buy in right away– All our reporting systems support it– We have gotten accustomed to doing it• And some of us like the excitement…– It is a habit (“we do it without thinking”)• Hard work and constant vigilance is needed

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