Projects in less time; 3 secrets to reducing project lead time, on time

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the three most important things you need to know about reducing project lead time and still delivering on time consistently.

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Projects in less time; 3 secrets to reducing project lead time, on time

  1. 1. Projects in Less Time3 Secrets to Reducing Lead Time, On Time Pinnacle Strategies http://pinnacle-strategies.com http://pinnacle-strategies.com 1
  2. 2. The Standish Group PDI Survey 75% of completed  91% finish “a little late” projects are late  51% come in over Average cost overruns budget are 189%  63% overload resources Average time overruns  38% do not meet are 222% expectations 30% are cancelled before they finished http://pinnacle-strategies.com 2
  3. 3. Even though there are many types of projects, the complaints are essentially the same.• Deliveries are usually late UDE• Too many changes UDE UDE• Over budget• Excessive rework UDE• Frequent priority battles• Require resources with limited availability• Compromise scope for cost or schedule http://pinnacle-strategies.com 3
  4. 4. How to: Make the project an Reduce enriching project experience? costs? Improve resource productivity? Reduce project lead times? http://pinnacle-strategies.com 4
  5. 5. Why does project performance suffer? Resources Multitasking PMs Focus Planning on the Past  http://pinnacle-strategies.com 5
  6. 6. The cost? Many Surprises Many Meetings Resources Multitasking PMs Focus Chronic Planning on the past Resource Shortages  Unhappy People Poor Results http://pinnacle-strategies.com 6
  7. 7. 1st Secret to Projects in Less Time Build good plans ◦ Focus on deliverables ◦ Treat task durations are forecasts, not commitments ◦ Recognize the constraint http://pinnacle-strategies.com 7
  8. 8. 2nd Secret to Projects in Less Time Limit the amount of work in process to maximize flow http://pinnacle-strategies.com 8
  9. 9. 3rd Secret to Projects in Less Time Team work around project completion ◦ Make the plan THE plan ◦ Stop blaming and get moving ◦ Focus on the future ◦ Use buffers as risk management tool for completion http://pinnacle-strategies.com 9
  10. 10. “In preparing for battle I have always found that plans are useless, but planning is indispensable.”Dwight D. Eisenhower http://pinnacle-strategies.com 10
  11. 11. We believe more time =Greater reliability Projects are longer than necessary Projects have an oversupply of safety time http://pinnacle-strategies.com 11
  12. 12. All task durations in the plan are aforecast of how long it will take. Safety Factor Mean0% 50% 95% 42.7% of all statistics are made up on the spot. http://pinnacle-strategies.com 12
  13. 13. Long task durations =Long project duration C1: 2d A: 6d C2: 6d D: 3d Finish B: 7d C3: 4d 0 5 10 15Does anyone actually believe the planneddurations will even be close to actual? http://pinnacle-strategies.com 13
  14. 14. A second problem;resource contention. C1: 2d A: 6d C2: 6d D: 3d Finish B: 7d C3: 4d0 5 10 15 The plan is not feasible! http://pinnacle-strategies.com 14
  15. 15. Steps to Build the Plan1. Tasks with aggressive estimates2. Identify the critical chain3. Buffer the project completion4. Add feeding buffers http://pinnacle-strategies.com 15
  16. 16. Start with Aggressive Estimates  Create a network you can commit to  Estimate tasks at p50, or half the safe estimate  Start as late as possible C1: 1d A: 4d C2: 4d D: 2d Finish B: 5d C3: 2d0 5 10 15 20 http://pinnacle-strategies.com 16
  17. 17. Create the Critical Chain C1: 1d A: 4d C2: 4d D: 2d Finish B: 5d C3: 2d0 5 10 15 20  The longest sequence of dependent tasks after resolving resource contention http://pinnacle-strategies.com 17
  18. 18. Buffer Project Completion C1: 1d A: 4d C2: 4d D: 2d Buffer: 6 d Finish B: 5d C3: 2d0 5 10 15 20 http://pinnacle-strategies.com 18
  19. 19. Add Feeding Buffers Feeding Buffer Buffer: .5d C1: 1d A: 4d C2: 4d D: 2d Buffer: 6 d Finish Buffer: B: 5d 2.5 d C3: 2d0 5 10 15 20 Feeding Buffer http://pinnacle-strategies.com 19
  20. 20. CCPM Planning Principles The plan is necessary, but, like a forecast, will always be “wrong”. Tasks are aggressive, but possible Relationships are guided by technical requirements, not preference http://pinnacle-strategies.com 20
  21. 21. Time spent in planningreduces overall project duration. Builds consensus & teamwork Identify early action needs Resource needs identified early Tests and validates the assumptions Creates the baseline for action http://pinnacle-strategies.com 21
  22. 22. The prevailing notion is that to finishearly, one should start early. Task 3 FB Task 1 Task 2 Task 5 Task 7 Project Buffer Task 4 Feed. Buffer Task 6 FB Task 3 FB Task 1 Task 2 Task 5 Task 7 Project Buffer Task 4 Feed. Buffer Task 6 FB Task 3 FB Task 1 Task 2 Task 5 Task 7 Project Buffer Task 4 Feed. Buffer Task 6 FB http://pinnacle-strategies.com 22
  23. 23. Too muchwork createsconfusion aboutpriorities. http://pinnacle-strategies.com 23
  24. 24. Loading up on projects creates resource overloads 30 25 Available Capacity Project 4Number of Resources 20 Project 3 15 Project 2 Project 1 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Weeks http://pinnacle-strategies.com 24
  25. 25. Limit the work in the system Control work flow by the rate of constraint resource(s) http://pinnacle-strategies.com 25
  26. 26. Staggering the release of projectsreduces work in process. Task 3 FB Task 1 Task 2 Task 5 Task 7 Project Buffer Task 4 Feed. Buffer Task 6 FB Task 3 FB Task 1 Task 2 Task 5 Task 7 Project Buffer Task 4 Feed. Buffer Task 6 FB Task 3 FB Task 1 Task 2 Task 5 Task 7 Project Buffer Task 4 Feed. Buffer Task 6 FB http://pinnacle-strategies.com 26
  27. 27. Staggering release evens out the resource load. 12 Project 4 Project 3 10 Project 2 Project 1Number of Resources 8 6 4 2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Weeks http://pinnacle-strategies.com 27
  28. 28. Staggering release reduces project duration and reduces resource contention. 1 2 3 4 5 BUFFER Project A 1 2 3 4 5 BUFFER Project BStaggering Projects Accelerate Completion andReduce Resource Contention 1 2 3 4 5 BUFFER 1 2 3 4 5 BUFFER http://pinnacle-strategies.com 28
  29. 29. Project teams are often devoted totheir individual agendas. Protecting reputations Defending original task duration estimates http://pinnacle-strategies.com 29
  30. 30. Human behavior causes the safetybuilt into tasks to be wasted. Multi-tasking Student Syndrome Parkinson’s law http://pinnacle-strategies.com 30
  31. 31. Multitasking Adds Significant Time My Assignments Task 1 Task 2 Task 3 10 days 10 days 10 days Task 1 Task 2 Task 3 Task 1 Task 2 Task 3 5 days 5 days 5 days 5 days 5 days 5 days 20 days 25 days 30 days http://pinnacle-strategies.com 31
  32. 32. Multitasking Causes Poor planning / priority shifting Drive to show progress on all projects Earned value focus on all activities http://pinnacle-strategies.com 32
  33. 33. The way people work on a projecthas a profound impact on itsduration. Relay runner work ethic Eliminate any penalty for missing task estimates One day response http://pinnacle-strategies.com 33
  34. 34. The only meaningful measurementof project status is the answer tothis question: When will the project be complete? http://pinnacle-strategies.com 34
  35. 35. What is the Status of This Project? C1: 2d A: 6d C2: 6d D: 3d Finish B: 7d C3: 4d0 5 10 15Task A is 20% complete • 25% Complete?Task B is 70% complete • 8% Complete?Task C1 is 50% complete http://pinnacle-strategies.com 35
  36. 36. Project Status CalculationTask Estimate % Complete Remaining % CompleteA 6 20% 4.8C1 2 50% 1C2 6 6B 7 70% 2.1C3 4 4D 3 3Total 28 20.9 25%Critical 15 13.8 8%Path http://pinnacle-strategies.com 36
  37. 37. It’s hard to know where to focusthe team’s efforts. http://pinnacle-strategies.com 37
  38. 38. The most successful projectshave the best negotiators leadingthe project. http://pinnacle-strategies.com 38
  39. 39. Buffer Burn Ratio is the guiding measurement to project status. Relationship of buffer consumption to Work completed Indication of Today risk to achieving project due date Identifies the work that is important NOW http://pinnacle-strategies.com 39
  40. 40. Burn Ratio Directs the Action When the % buffer consumed is less than Action % of work Threshold ◦ Project is “green” Today ◦ Risk of being late is low Planning When the % buffer Threshold consumed is greater than % of work ◦ Project is “red” ◦ Project is at risk ◦ It’s time to do something different http://pinnacle-strategies.com 40
  41. 41. Burn Ratio shows snapshot of the health of all the projectsThe System Buffer Consumption Report 100% Project Bengal Action% PB Consumed  Jaguar Threshold  Panther Leopard lynx Planning    Cheetah Threshold  Cougar  0% 0% 100% % CC Completed http://pinnacle-strategies.com 41
  42. 42. Focus on Project Completion Eliminate multi-tasking ◦ Don’t start a task unless it can be finished ◦ Project meetings focus when the next task will be completed Adopt the relay racer mentality ◦ Teamwork ◦ Full effort on tasks until completion ◦ 24 hour response time During the project, measure quality, not productivity http://pinnacle-strategies.com 42
  43. 43. CCPM Execution Benefits FOCUS Significant reduction in behavioral delays ◦ Multi-tasking ◦ Student syndrome Future-based management Improved teamwork Shorter execution times Improved productivity A good experience http://pinnacle-strategies.com 43
  44. 44. CCPM Concerns What to do with the extra capacity? It’s hard to do? Culture is a big obstacle? Is software necessary? http://pinnacle-strategies.com 44
  45. 45. Eight Steps to Implementation1. Management consensus on the business need2. Buy-in on improvement potential3. Buy-in on the rules and set ambitious targets4. Design the solution5. Create the pipeline plan6. Task management processes7. Supporting processes implementation8. Continue to improve http://pinnacle-strategies.com 45
  46. 46. What can I do now?Reduce the number of projects inprocess Allocate the available resources to remaining open projects Full-kit implementation Reintroduce projects as other projects are completed Release new projects using CCPM planning http://pinnacle-strategies.com 46
  47. 47. CCPM In Projects An enriching Reduced experience costs Improved resource productivity Completed in less time http://pinnacle-strategies.com 47
  48. 48. Horace Wilcox
  49. 49. Projects in Less TimeCritical Chain Project Management Pinnacle Strategies http://pinnacle-strategies.com http://pinnacle-strategies.com 50

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