© 2003 by Prentice Hall, Inc.,Upper Saddle River, NJ 07458 ...

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© 2003 by Prentice Hall, Inc.,Upper Saddle River, NJ 07458 ...

  1. 1. <ul><li>EM 540 Operations Research/ </li></ul><ul><li>DecS 581 Operations Management </li></ul>Critical Chain Project Management Beginning The Project Management Solution
  2. 2. The CCPM Solution to Project Management Scheduling <ul><li>The last session was pretty depressing </li></ul><ul><ul><li>Project Structure is a problem. </li></ul></ul><ul><ul><li>Task Variability is a worst problem. </li></ul></ul><ul><ul><li>Human Behavior (as a result of attempting to deal with structure and variability)-Ahhh! </li></ul></ul><ul><li>Result, a single project planned for 70 days stretches to 160 days! </li></ul><ul><li>Three 70 day concurrent projects exceed 350 days! </li></ul>
  3. 3. Painful Situation!
  4. 4. We have Maxed Out! <ul><li>“We are caught in a vicious cycle which leads us to inflate our estimates and press for more people, just to see the completion dates of our projects slipping more and more into the future ... </li></ul><ul><li>“... until the time to do the project becomes so long or the compromises on the content become so large that the clients tell us, “If that’s the case we’ll go elsewhere !” </li></ul><ul><li>Eli Goldratt </li></ul>
  5. 5. We must improve or lose business and people <ul><li>“At that Stage, a very unsatisfactory equilibrium is reached: </li></ul><ul><li>“Lead times are long </li></ul><ul><li>“Visibility is lost </li></ul><ul><li>“The work environment is chaotic </li></ul><ul><li>“There is a loss of ability to make decisions </li></ul><ul><li>“Everything is done by pressure.” </li></ul><ul><li>Eli Goldratt </li></ul>
  6. 6. Remember this Image? Quality and Scope Timing and Schedule Budgeted Costs Bumpy Road of Reality The Solution must address all three causes! Precedence Structure Statistical Variation Human Behavior
  7. 7. Is a Solution Possible? <ul><li>Many people have done it (See AGI Web) </li></ul><ul><li>Example: Israeli Aircraft Industries </li></ul>
  8. 8. What are the elements of the Solution? <ul><li>It makes no sense to intentionally schedule conflicts. </li></ul><ul><li>Prioritize the work, Work the priorities. </li></ul><ul><li>Stagger the release of work </li></ul><ul><ul><li>(Remember the Job Shop Game )( Video ) </li></ul></ul><ul><li>Communicate what is important to those who can make a difference </li></ul><ul><li>How? </li></ul>
  9. 9. Multi-Project Simulation 9c Red is the Tightest Scheduled Resource
  10. 10. 1. Prioritize - Stagger Projects Stagger based on de-conflicting Red Resources (others may conflict between projects)
  11. 11. Staggering helps a bit but there is still Multi-Tasking First Project Median 169 Second Project Median 219 (total time 323) Third Project Median 235 (total time 367)
  12. 12. Maybe we need to do this by fixing each project, one project at a time! Lets look at the single Project CCPM Solution for a few minutes before we return to the Multi-Project
  13. 13. Our Empirical results on projects are not good. We need protection Empirical Completion Distribution Due Date Buffer If we buffer our existing schedule, we just add more time! This is counter productive! We are worse off. Even worse than before! 1 2 3 4 5 6 7 8 9 10
  14. 14. Let’s take advantage of good statistics. If we finish early, we can move on to the next task. Don’t waste Safety Allocated. Completion Distribution Buffer Before: 85% Estimate 1 2 3 4 5 6 7 8 9 10 Due Date Completion Distribution Due Date Buffer After: 50% Estimate 1 2 3 4 5 6 7 8 9 10 Notice, we are only changing the schedule . Actual work distributions are the same. If we finish early, we can capture the advantage.
  15. 15. Let’s take advantage of good statistics. If we finish early, we can move on to the next task. Don’t waste Safety Allocated. Completion Distribution Buffer Before: 85% Estimate Buffer 1 2 3 4 5 6 7 8 9 10 Due Date Completion Distribution Due Date Buffer After: 50% Estimate 1 2 3 4 5 6 7 8 9 10 Notice, we are only changing the schedule . Actual work distributions are the same. If we finish early, we can capture the advantage. Eliminate waste
  16. 16. We can buffer the variability of activities along the Critical Chain, but where else? Completion Distribution Due Date Buffer After: 50% Estimate 1 2 3 4 5 6 7 8 9 10
  17. 17. Add Assembly (Feeder) Buffers Completion Distribution Due Date Buffer After: 50% Estimate 1 2 3 4 5 6 7 8 9 10 Make sure non-critical side chains are de-coupled from the Critical Chain
  18. 18. Add Assembly (Feeder) Buffers Completion Distribution Due Date Buffer After: 50% Estimate 1 2 3 4 5 6 7 8 9 10 Make sure non-critical side chains are de-coupled from the Critical Chain
  19. 19. Add Assembly (Feeder) Buffers Completion Distribution Due Date Buffer After: 50% Estimate 1 2 3 4 5 6 7 8 9 10 Make sure non-critical side chains are de-coupled from the Critical Chain
  20. 20. Add Assembly (Feeder) Buffers Completion Distribution Due Date Buffer After: 50% Estimate 1 2 3 4 5 6 7 8 9 10 Make sure non-critical side chains are de-coupled from the Critical Chain
  21. 21. Add Assembly (Feeder) Buffers Completion Distribution Due Date Buffer After: 50% Estimate 1 2 3 4 5 6 7 8 9 10 Make sure non-critical side chains are de-coupled from the Critical Chain
  22. 22. Next Step, Add Resource Buffers Completion Distribution Due Date Buffer After: 50% Estimate 1 2 3 4 5 6 7 8 9 10 This is a ‘Notification’ step to make sure resources soon to be used on Critical Chain Activities are Ready and Available.
  23. 23. Single Project Buffered Project Buffer Simulation 08 Resource Buffers Critical Chain Commitment 95 Days Feeder Buffers
  24. 24. CCPM Simulation 08 Results End of Buffer 95 50% Completion No Multi-Tasking Buffer Management Previous Median
  25. 25. Now, let’s look at Multi Project <ul><li>We Schedule Each Project individually according to Critical Chain Project Management. </li></ul><ul><li>We stagger the projects according to a selected strategic drum (resources) </li></ul><ul><li>We include a buffer between projects (on the drum) </li></ul><ul><li>All Estimates are at 50%. Use Buffer Management to prioritize resource allocation. </li></ul>
  26. 26. Stagger Projects w/Buffer Buffer Between Projects Too
  27. 27. Result with 50% schedule and Buffers First Project Median 96 [email_address] Expected Second Project Median 180 [email_address] Expected Third Project Median 216 [email_address] Expected
  28. 28. Notice: All Three 70 day projects were completed within 240 days.
  29. 29. Bottom Line <ul><li>There is lots to gain </li></ul><ul><li>Particularly in Multi Project Environments </li></ul><ul><li>Single Projects 20% reduction </li></ul><ul><li>Multi Projects 50% reduction </li></ul>
  30. 30. Critical Steps <ul><li>Prioritize work </li></ul><ul><li>Avoid scheduling conflicts </li></ul><ul><li>Schedule Aggressively (remove wasted safety) </li></ul><ul><li>Insert adequate safety in the right places (less than that taken out) </li></ul><ul><li>Communicate Time Remaining </li></ul><ul><li>Manage Resources according to Buffer Status </li></ul><ul><li>Sequence multiple project on strategic resource with large buffer. </li></ul>

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