ViewPoint - Why Your Projects Are Late
 

ViewPoint - Why Your Projects Are Late

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Why are your projects late? What can you do about it? A presentation given at the Wichita APICS professional development meeting.

Why are your projects late? What can you do about it? A presentation given at the Wichita APICS professional development meeting.

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    ViewPoint - Why Your Projects Are Late ViewPoint - Why Your Projects Are Late Presentation Transcript

    • Why Your Projects are Late (and How to Prevent Them from Being So) ViewPoint CCPM 1
    • Projects – True? • It’s hard to get a project team to work together • Projects will be better if our resources are fully utilized • Start the project sooner, you’ll finish it sooner • Planning is the key to project success 2
    • What I Want to Share Successful projects are rare The core reasons why A path forward 3
    • Project Failures are Commonplace 4 “A staggering 39% of projects with budgets over $10 million USD failed.”
    • 5 PricewaterhouseCoopers reviewed 10,640 projects from 200 companies in 30 countries and across various industries “Only 2.5% of the companies successfully completed 100% of their projects ”
    • 6 Harvard Business Review Study of 1.471 IT projects “The average overrun was 27%, but one in six projects had a cost overrun of 200% on average and a schedule overrun of almost 70% ”
    • 7 Projects often fail because organizations put more emphasis on rational factors than on employees' psychological engagement -- and the cost to organizations is enormous
    • When the emphasis is on procedures, compliance becomes a substitute for results. 8
    • Don’t Forget 9
    • 10
    • You are the new Director of Engineering - What is the status of the project work? 11
    • Project Teams Cannot See 12 Where are we? Where is the path?
    • Three Keys 13
    • Project teams don’t work together. • Is this collaboration? – Protecting reputations – Defending original delivery promises – Giving “reasons” for why things haven’t quite worked out – Talking about the past 14
    • Project Team Members have Different Goals • Resource utilization? • Earned hours? • Budget compliance? • Get promoted? • Avoid punishment? 15
    • It Doesn’t Have to be Lose-Lose • Resource utilization? • Earned hours? • Budget compliance? • Get promoted? • Avoid punishment? 16
    • 17
    • To finish early, one should start early. 18
    • But, everyone starts early! 19 Here’s the project manager
    • Too much work creates confusion and loss of capacity. 20
    • Confusion Breeds Multitasking 21
    • Let‘s Play a Game! • We‘ll play two rounds. You just need a piece of paper and a pen. • First round: – Write MULTITASKING – Then write 1234567890 – Note the time • Second round: – Switch between letters and numbers: • Letter number letter number … – Note the time – Check quality 22
    • Multitasking Adds Excess Time 23 Day 42 Day 28 Task 1 Task 2 Task 3 12 days 12 days 12 days Setup Setup Setup Task 2 Task 3 Task 1 7 days 7 days 7 days 7 days Setup Task 1 Setup Setup Setup Task 2 7 days Setup Task 3 7 days Setup Day 35
    • Conventional Approach to Projects 24 Make a Good Plan Execute the Plan Success
    • You’re taking a trip. Which comes first? 25
    • Here’s your car! 26
    • Build the Vehicle First • Get control of the work • Focus on execution behaviors • Use the team (or structure) that already exists to make room for proper planning 27 Get Control Execute Well Release Capacity Success
    • 3 Keys 28
    • Improve Visibility 1. Improve Teamwork and Collaboration during execution 29
    • Align the Team 2. Establish a common goal for the team 30
    • Manage the Flow 3. Control the amount of work in the system 31
    • The First Step 32
    • Collaboration During Execution • Provide visibility • Focus on the future – Stop blaming and get moving • Focus on the right things • Bust the bottlenecks • Establish common goals • Solving the team’s problems 33
    • Building Collaboration • Accurate / shared assessment of the situation • The right people in the room • Acting to achieve the goal 34
    • The Situation Must Be Obvious • Accuracy – Where are we now? • Shared – Do we agree on it? 35
    • 36 Make it Visible – Like This…
    • Or…Like This…. 37
    • Focus on the Future 38
    • 39 Accelerate Flow Project X Project YY Project XX Project Z Project Y Estimate Select Engineering Procurement Stopped!
    • The Second Step 40
    • Completing Projects is Behavior How to create the right behavior to drive the project in the right direction? 41
    • Behavior is a Function of Consequences • You have everything you need to understand people – What is the behavior? – What are the consequences of that behavior? 42
    • “Show me how you measure me, I’ll show you how I’ll behave” ("If you measure me in an irrational way, don't complain about irrational behavior.") 43 Eli Goldratt
    • “People do what they do because of what happens to them when they do it” Aubrey Daniels 44
    • What do we want our people to do? Move the project to completion (as fast as possible) 45
    • Match Behaviors To Metrics 46
    • Metrics Tied to Governance 47 0 2 4 6 8 10 12 14 Jan Total Feb Total March Total April Total May Total TPCounts Throughput T4-T6-T8 by Month Higher is be er More Projects Completed Should I act? Escalation of Work Stoppages Where to act? Getting More Done in LessTime Should I act?
    • The Third Step 48
    • The Objective of the System? 49
    • Control the work in the system The Constraint sets the rate for the entire system. 50
    • To Increase the Rate, Eliminate the Bottlenecks 51 • Create process momentum during execution • Focused efforts to increase velocity
    • Making a difference 52
    • You’re taking a trip. Which comes first? 53
    • Project Execution Maturity Model 54 Date Mgmnt. Schedule Risk Delivery Promising Managing Bottleneck s Remote Collaboration Priority Control Collaborative Execution Control WIP Functional Alignment Probabilistic Planning Subcontractor Management Capacity Management More Mature Less Mature
    • Basic Collaboration • The work before you • Near term • The team before you • The process you own 55 Priority Control Collaborative Execution Control WIP Functional Alignment More Mature Less Mature
    • Improved Coordination • Other teams • Emphasize Velocity • Deliver on Time • Medium Term 56 Date Mgmnt. Schedule Risk Delivery Promising Managing Bottleneck s Remote Collaboration More Mature Less Mature
    • Integrated Planning & Execution • CCPM / Buffer Management • Detailed task management • Finite resource planning • Life of project, full portfolio 57 Probabilistic Planning Subcontractor Management Capacity Management More Mature Less Mature
    • Business Value by Maturity 58 Delivery Excellence Developing Average Performance Basic Collaboration Improved Coordination Integrated Planning & Execution
    • ViewPoint Critical Chain Results • 433% increase in effective capacity • 326% increase in units shipped • Lead-time reduced from 31 to 8 days • Revenue increased $47MM 59
    • Datu Case - Collaboration 60
    • BP Case - Savings • Project throughput increased 24% in 6 months • $12,000,000 cost reduction 61
    • Why does project performance suffer?  Lack of Collaboration Too Much Work in Process Conflicting Goals 62
    • 3 Steps to Deliver More Projects On Time 1. Visual Execution to facilitate collaboration 2. Common Purpose / Alignment on the team 3. Control the amount of work in the system to maximize flow 63 We’re not driving cars, we’re managing traffic
    • Next… • Execution Maturity Benchmarking 64
    • Horace Wilcox 65
    • 66