The Real Reason That Projects Fail and How to Fix it - An Introduction to Critical Chain Project Management

Gary Palmer
Critical Point Consulting

1

www.criticalpoint.co.uk

Intellectual Property
This document is the Intellectual Property of
Critical Point Ltd
This document is supplied for the personal use
of the recipient and is not to be copied, edited,
transmitted or broadcast in part or in whole
without the prior permission of Critical Point
Ltd.

2



What do we mean by ‘Project Failure’?
Any one of:
Late
Over Budget

Below Specification
Below Quality

3



Why do we need to change? - 1
Because huge numbers of projects are:
Late
+ Over Budget

+ Below Specification
+ Below Quality

4




Productivity & Throughput:

Often Low
Excessive Wastage
Slow Progress
Costly

5




Business Impact:
Product Expensive
Late to Market
Customer Dissatisfaction
Reputation
Project Failure & Slow Costly Projects Cripples Business

6



What is the main driver for these failures?
Late projects fuel other failures:
Late
Over Budget

Below Specification
Below Quality

7



What are the reasons for this?

1. The traditional methods in use,
VIRTUALLY GUARANTEE these results.
2. We have not had a viable alternative.

Until now…

8



Critical Chain Project Management
CCPM Statistics:
Project Delivery:

90%+ on time

Project Completion: 20% - 50% Faster
Productivity:

20% - 60% Increase

Without increasing resources
9



How Does CCPM Deliver These Improvements?

By resolving problems in our working methods that:
1. Slow everything down
2. Cause our contingency to be ineffective
3. Cause inefficiencies and wastage

10



What is CCPM?
‘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’

11



What is CCPM?

Transportable: Not industry / sector specific
Applicable in any* project environment
Works with existing project structures
12



What is CCPM?

Techniques: Working practices, Behaviours
Tools: Processes, Software
13



What is CCPM?

Individually: Resolve a specific problem

Collaboratively: In unison to support the whole
14



What is CCPM?

Improvements: Efficient processes
Faster operation
Better work environment
15



What is CCPM?

Scheduling: Optimum, realistic schedule
Effective contingency protection
Execution: Efficient working practices
Excellent progress visibility, focus, control
16



What is CCPM?

scheduling and execution in any * project,
programme and portfolio environment’
Projects: Single projects
Programme: Multi-project
Portfolio: Enterprise-wide

Any Sector
17

Traditional Project Management
The Five Elements of Failure
So, what are the problems in Traditional Proj. Mgmt.?
Deadline
Schedule

Task-Level
Contingency

Poor Measures
& Control

Critical Path

Multi-tasking

18




Deadline
Schedule

Task-Level
Contingency

Poor Measures
& Control

Critical Path

Multi-tasking

19



Task Deadline Scheduling – Planning to Fail

09/09

22/09 23/09

1/10

13/10

Planned Completion
13/09

1/09

09/09 10/09

10/09

22/09

14/09 15/09

14/09 15/09

23/09

22/09 23/09

20/09 21/09

03/10

04/10

30/09 1/10

09/10

13/10

15/10

06/10 07/10 13/10

Attempt to impose a Rigid construct on a Variable situation
Actual dates will always change
… and will need constant and continued updating
20




Shouldn’t early and late finishes balance out?
Usually not.
21



Potential
Early Finish

Deadline
Date

Task
Missed
Time-Saving

Parkinson’s Law – ‘Work expands to fill the time available’

22



Late Finish
Adds Time

Planned
5 days

Early Finish
Gain Lost

7 days

✓

3d

✓

3d

5 days

✓

5 days

5 days

✓

5 days
2 days added
to schedule

5 days
No benefit
to schedule

Parallel Converging Tasks tied to schedule dates
Losses Accumulate - Gains Don’t
…And the schedule moves out
23




Q- What is the probability of all a project’s tasks finishing on time?
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?
24




Summary
Dates attempt a rigid structure on a variable situation

A ‘Train Timetable’ - when 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

25



The Five Elements of Success

CCPM
Schedule

Task-Level
Contingency

Poor Measures
& Control

Critical Path

Multi-tasking

26



09/09

22/09 23/09

13/09

1/09

09/09 10/09

10/09

22/09

14/09 15/09

14/09 15/09

23/09

22/09 23/09

20/09 21/09

1/10

03/10



13/10

04/10

30/09 1/10

09/10

13/10

15/10

06/10 07/10 13/10

Why have fixed dates if we know that they will change?
27

CCPM Schedule

09/09

13/09

1/09

19/10

30/12

10/09

Very few Internal Due Dates / Deadlines
Schedule is used only as a Dependency Chart
Each task completes asap and next task is started
No schedule updating necessary
28



CCPM Schedule

Potential
Early Finish

Deadline
Date

Task

So now, without deadlines to fuel Parkinson behaviours,

29



CCPM Schedule

Potential
Early Finish

Deadline
Date

Task


Our potential Early Finish…
30



CCPM Schedule

Potential
Early Finish

Task


Our potential Early Finish…
31



CCPM Schedule

Actual
Early Finish

Task

…can become a reality.

32



CCPM Schedule

across the whole project
33



CCPM Schedule

Shorter Task Execution = Reduced Time & Costs
Faster and Cheaper Projects
34



CCPM Schedule

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 values speed over working to fixed dates
35




CCPM
Schedule

Task-Level
Contingency

Poor Measures
& Control

Critical Path

Multi-tasking

36




Task-Level Contingency
Confidence in own ability

Familiarity with technology

Familiarity with task
Interruptions
Multi-tasking

Complexity of the task

How Much
Contingency?

Known Unknowns
Specification Stability

Easy Life
Fear of Failure
Estimate chopping

Confidence in Spec.
Unknown Unknowns
37


Confidence in own ability

Familiarity with technology

Familiarity with task

Complexity of the task

Interruptions

Easy Life

A Guess

Fear of Failure

Multi-tasking
Known Unknowns
Specification Stability

Estimate chopping
Confidence in Spec.
Unknown Unknowns
38

Effect 1- An Extended Schedule

Self-protection (in blue) encourages fat estimates
A project may contain > 50% embedded contingency
39



Effect 2 – Student Syndrome
Scheduled
Start

Deadline
Date

Work

Contingency

Actual
Start

Initially plenty of contingency
No incentive to start immediately
Start deferred
40



Scheduled
Start

Deadline
Date

Work

Actual
Start

Contingency decreased
41



Scheduled
Start

Deadline
Date

Work

Other
work

Big
Problem

Maybe another task is required / preferred
Now no contingency left and work is rushed
Then a big problem surfaces…
42



Scheduled
Start

Deadline
Date

Work

Other
work

Big
Problem

And now we have a task over-run…
43



Effect 3 – Unprotected Project End-Date
Planned Completion
Delayed Completion

If on a Critical Path task = project over-run
44



Effect 4- Unmanaged Time

Traditional contingency (shown in Blue)

45



Effect 4 – Unmanaged Time

Project Manager’s View
Where is the contingency?
How do you measure and manage it?
Maybe 50% of project time is not under control
46



Task-level Contingency
Task-Level Contingency - Problem Cascade
Self-Protection leads to
Inflated ‘Localised’ Estimates which generate
Long, Over-padded Schedules which encourages
Parkinson’s Behaviours and
Student Syndrome which results in
Slow and Costly Projects which are still
Unprotected From Delays and which have
Hidden, Unmanaged Contingency
47




CCPM
Schedule

Task-Level
Contingency

Poor Measures
& Control

Critical Path

Multi-tasking

48




CCPM
Schedule

Project-Level
Contingency

Poor Measures
& Control

Critical Path

Multi-tasking

49



CCPM Project-Level Contingency
Traditional Task-Level Contingency (Review)

High Levels of Embedded Contingency

50



Remove task-level contingency

51




Task Estimates have no in-built contingency
Estimates are based on ‘Aggressive-but-possible’ task times
52




Shorter Task Durations & much reduced timeline
No space for Parkinson or Student Syndrome
But where is our contingency now?
53



Aggregate Contingency
Project
Commit
Date

Project Buffer

Buffer protects the Project – not individual tasks
Provides the project Commit Date
54



Project Protection
Project
Commit
Date

Project Buffer

Critical Task over-runs are absorbed by the Buffer
The Project ’Schedule’ remains unchanged
The Project Commit Date is not affected
55



Project Protection
Project
Commit
Date

Buffer
Status

Project Buffer

Buffer Status shows the impact on contingency
Now able to measure and manage our contingency
56



Project Protection
Project
Commit
Date

Buffer
Status

Project Buffer

If a Critical Task finishes early…
The time saved is ‘added back’ into our contingency
Buffer Status always shows the latest position
57




Project-Level Contingency Cascade
Aggregated Uncertainties are built into a
Project Contingency which results in
Streamlined Schedules with
Visible, Manageable Contingency which prevents
Parkinson’s Behaviours and
Student Syndrome which results in
Fast and Efficient Projects which are
Protected From Delays
58




CCPM
Schedule

Project-Level
Contingency

Poor Measures
& Control

Critical Path
Multi-tasking

59



Critical Path – A dangerous path to follow?
Task E

Task B

Task G

Task H
Task A

Task F

Task I

Task C

Task D

Task J

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?
60



Critical Path Problems
Resource Contentions

Task A

Task B

Task F

Task G

Task H

Task E

Task I

Task C

Task D

Task J

Tasks F & C need the same resources, as do tasks G & I

61



Post–CP Resource Levelling
Task F

Task E
Task H
Task A

Task B

Task I

Task C

Task D

Task G

Task J

Levelling resolves the issue… but increases timescales
And the vision of the Critical Path dominates

…and so tactical manoeuvres soon start...
62



1- Multi-Tasking
Task E
Task H
Task A

Task B

Task D

Task J

Quality may be reduced
Predictability becomes less certain
Work becomes fragmented and control less easy
But because Multi-tasking takes longer…
63



2 - Overtime
Task E
Task H
Task A

Task B

Task D

Task J

…Extra hours need to be worked
Scheduling & Control becomes difficult
64



Slippage
Task E
Task H
Task A

Task B

Task D

Task J

Multi-tasking is high risk
High potential for slippage
Diminishing returns due to staff morale / burnout
65



Scope Cut

Scope Cut

Scope Cut
Task E

Task A

Task B

Scope Cut

Task H
Task D

Task J

Last resort to hit target date is a Scope Cut
May cause work in other areas
Further degrades quality
‘Project Meltdown’
66



Critical Path Cascade


Ignoring Resources Contentions leads to an
Incorrect Dependency Path often with
Unrealistic Completion Dates and
Misleading Priorities which encourages a spiral of
Fire-fighting tactics which leads to an
Out of Control Project with an
Unstable Schedule

67




CCPM
Schedule

Project-Level
Contingency

Poor Measures
& Control

Critical Path
Multi-tasking

68




CCPM
Schedule

Project-Level
Contingency

Poor Measures
& Control

Critical Chain
Multi-tasking

69



CCPM Critical Chain
1. Build Dependency Network As Normal

Task A

Task B

Task F

Task G

Task H

Task E

Task I

Task C

Task D

Task J

Include Resource Requirements
- right at the start
70



CCPM Critical Chain
2. CCPM Software - Resource Levelling
Task E

Task H
Task A

Task G

Task F

Task B

Task I
Task C

Task D

Task J

Resource-levelling the schedule…
Prevents over-allocation of resources
71



CCPM Critical Chain
3. CCPM Software - Identify the Critical Chain
Task E

Task H
Task A

Task G

Task F

Task B

Task I
Task C

Task D

Task J

CCPM treats Resource Constraints as dependencies…
Priority sequence also goes to resource dependent tasks

A realistic critical sequence – The Critical Chain
72



Critical Chain / Critical Path Comparison
Task E

Task H
Task A

Task G

Task F

Task B

Task E

Task I
Task C

Task F

Critical Chain
Task D

Task J

Task G
Critical Path

Task H
Task A

Task B

Task C

Task I
Task D

Task J

Irrespective of what you draw in the CP schedule, the real
situation will be driven by the realities of resource constraints
73



Critical Chain / Critical Path Comparison

Task A

Task B

Task E

Task F

Task G

Task H

Task E

Task I

Task C

Task F

Task D

Critical Chain
Task J

Task G
Critical Path

Task H
Task A

Task B

Task C

Task I
Task D

Task J

If there are no resource clashes, the Critical Chain will be
the same as the Critical Path
74



CCPM Critical Chain
Critical Chain Cascade
Including Resources Contentions leads to a
Correct Dependency Path with
Realistic Project Duration and
Realistic Priorities which provides a
Project Under Control with a
Stable Schedule

75




CCPM
Schedule

Project-Level
Contingency

Poor Measures
& Control

Critical Chain

Multi-tasking

76



Traditional Project Management Multi-tasking:
The Illusion of being productive
Time
Without Multi-tasking:
Task 1: 9 days

With Multi-tasking:
3d

3d

Task 2: 9 days

Task 3: 9 days

Day 9
3d

27 Days

Day 24
3d

3d

3d

3d

3d

3d

31 Days

• Nothing gets completed until day 24.
Task 1: + 15 days late(+165%)
Task 2: + 8 days late (+47%)
Task 3: + 2 days late (+22%)

• Speed – Everything is delayed
• Quality – Likely to be less
• Productivity - Reduced
77



Summary

Traditional Project Management Multi-tasking:
The Illusion of being productive

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
Multi-tasking; The SINGLE best way…
…to screw up TWO JOBS.
78




CCPM
Schedule

Project-Level
Contingency

Poor Measures
& Control

Critical Chain

Single-tasking

79



CCPM - Task Management
Single Tasking

One task only worked on at a time
No interruptions
Dedicated work until task complete

80



CCPM Single Tasking
The reality of being productive
Time
Without Multi-tasking:
Task 1: 9 days

Task 2: 9 days

Task 3: 9 days

27 Days

Return to effective and efficient working



CCPM Single Tasking
Can Multi-tasking be removed?

‘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.

82



CCPM Single Tasking

Summary
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

83




CCPM
Schedule

Project-Level
Contingency

Poor Measures
& Control

Critical Chain

Single-tasking
Multi-tasking

84



Progress Measurement
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

85



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…

What is the Only Question PM’s get asked?
86




‘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?
87



Summary


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

88




CCPM
Schedule

Project-Level
Contingency

Good Measures
Visible Control

Critical Chain

Single-tasking
Multi-tasking

89



CCPM Progress Measurement
CCPM Progress Reporting:
Frequency:
Often
When any significant change occurs
Questions:
Is task complete?

If not, how much task-time left remaining?

90



‘Critical Chain’ Completed

✓
A

E
B

C

✓

F

✓

D

Critical Chain completed reported into CCPM software

91



Contingency Buffer Usage

A

E

F

+3
B

C
+3

D

✓

92



Contingency Buffer Usage
Buffer
Used

Buffer
Remaining

+3 +3
A

E

F

+3
B

C
+3

D

✓

Task C has no effect on buffer
93



Seeing into the Future
Buffer
Used

Buffer
Remaining

+3 +3 +5
A

E

F

+3
B

C

D
+5

+3
Early Report

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



Now we have two key measurements:
Amount of critical work completed: Critical Chain
How much contingency remaining: Project Buffer

Put these two together…

95



The Fever Chart
Singular
Objective
Predictive
Easily interpreted
Auto constructed
Up-to-date
Immediate

96



Summary - 1
Frequent Reporting:
Progress is always up-to-date
Project position is always up-to-date

97



Summary - 2
‘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

98



Summary - 3
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!
99



So, have we fixed all of the problems?
CCPM
Schedule

Project-Level
Contingency

Good Measures
Visible Control

Critical Chain

Single-tasking
Multi-tasking

Yes – but not just these; CCPM fixes a bigger problem and the
reason that past improvements have not succeeded
100



Vicious
Circles

101



The Five Problems

Task-Level
Contingency

Poor Measures
& Control

Deadline
Schedule
Critical Path

Multi-tasking

What problem is also caused by these five issues? 102



Schedule Instability
Schedule
Changes
Task-Level
Contingency

Schedule
Changes

Poor Measures
& Control

Deadline
Schedule
Critical Path

Schedule
Changes

Schedule
Changes

Multi-tasking

Schedule
Changes

Each individual issue causes schedule changes

103



Problem Self-Perpetuation
Schedule
Changes
Task-Level
Contingency

Schedule
Changes

Poor Measures
& Control

Deadline
Schedule
Critical Path

Schedule
Changes

Schedule
Changes

Multi-tasking

Schedule
Changes

And Schedule changes cause other problems and…104



Schedule
Changes
Task-Level
Contingency

Schedule
Changes

Poor Measures
& Control

Deadline
Schedule
Critical Path

Schedule
Changes

Schedule
Changes

Multi-tasking

Schedule
Changes

Each individual problem area perpetuates others 105



Schedule
Changes
Task-Level
Contingency

Schedule
Changes

Poor Measures
& Control

Deadline
Schedule

Schedule
Changes

Critical Path

Schedule
Changes

Multi-tasking

Schedule
Changes

Locked-in, self-perpetuating, systemic failure

106



CCPM Solutions
Schedule
Changes
Project-Level
Contingency

Schedule
Changes

Rem. Duration
Visible Control

CCPM
Schedule
Critical Chain

Schedule
Changes

Schedule
Changes

Single-tasking

Schedule
Changes

Fixing the internal problems removes vicious circles:
107



CCPM Schedule Stability
Schedule
Changes
Project-Level
Contingency

Schedule
Changes

Rem. Duration
Visible Control

CCPM
Schedule
Critical Chain

Schedule
Changes

Schedule
Changes

Single-tasking

Schedule
Changes

And the causes of schedule changes and their impact
108



CCPM Schedule Stability

Project-Level
Contingency

Rem. Duration
Visible Control

CCPM
Schedule
Critical Chain

Single-tasking

CCPM removes the causes of problem perpetuation
schedule changes and systemic failure
109



Seven Problems of Traditional PM…
…and the Seven Solutions of CCPM

Traditional Problems:
Deadline Scheduling
Critical Path
Multi-tasking
Poor Measures & Control
Schedule Volatility
Problem Perpetuation
Poor Work Environment
= ‘Terminal Mediocrity’

CCPM Solutions:
Flexible Scheduling
Project-Level Contingency
Critical Chain
Single-tasking
Good Measures & Control
Schedule Stability
Solution Constancy
Good Work Environment
= ‘Progressive Excellence’
110



Programme
& Portfolio
Myth

Achieving Terminal
Mediocrity on a
Large Scale
111



CCPM in Programme and Portfolio
The Programme & Portfolio Myth
1. That the more projects you start, the more you will get done

112



Overloaded Programme
1. Project Time-Slicing

Project 1: 9mths

Project 2: 9mths

Project3: 9mths

27 mths

mth 9
mth 23
Project Fragmentation:
3mths

3mths

3mths

3mths

3mths

3mths

3mths

3mths

3mths

30 mths

If projects have to time-slice,
Fragmentation will delay all projects
Driven by edict for all projects to be shown as started
113



1. Project Time-Slicing

Project 1: 9 mths

Project 2: 9mths

Project3: 9mths

27 mths

9 mths
21 mths

3mths

3mths

3mths

3mths

3mths

3mths

3mths

3mths

3mths

30 mths

Longer elapsed time gives more exposure time for changes
Changes generate more work and extend projects further
Meanwhile unfinished work gets ‘rusty’
114



Project 1
Project 2

Project 3
Project 4
Project 5
Project 6

Frequently great pressure to start more projects Often ignoring the realities of resource capacity
115


2. Simultaneous Projects


Exterior View

2. Simultaneous Projects
Reality at Working Level

Project 1
Project 2

Project 3
Project 4
Project 5
Project 6

Insufficient resource causes Cross-Project Reallocations
‘Who shouts loudest’ gets the resources
116
All projects suffer and get delayed



Exterior View


Project 1
Project 2

Project 3
Project 4
Project 5
Project 6

Gaps left in projects fuel Multi-tasking
117



Exterior View


Project 1
Project 2

Project 3
Project 4
Project 5
Project 6

Gaps + multi-tasking delay all projects
Constant changes make schedules volatile / unworkable
118




Exterior View


Project 1
Project 2

Project 3

. . . .?
. . . .?
. .?

Project 4

. .?

Project 5
Project 6

. .?

Major impact is that completion becomes unpredictable
119




Summary

An Overloaded system causes:
Fighting over Insufficient Resources

Volatile / Unworkable Schedules
Fuels Multi-tasking

Delays
Loss of Completion Predictability
120





The Programme & Portfolio Myth
1. That the more projects you start, the more you will get done
… You won’t

So what can we do to improve this?
121


Exterior View


Project 1
Project 2

Project 3

. . . .?
. . . .?
. .?

Project 4
Project 5
Project 6

. .?
. . .?

How did we got here?
122




Exterior View


Project 1
Project 2

Project 3

. . . .?
. . . .?
. .?

Project 4
Project 5
Project 6

. .?
. . .?

Belief that ‘More Work In = More Work Out’
Lack of Real Priorities (‘It’s all Top Priority!’)
123
Lack of regime to prevent overloading



CCPM in Multi-Project Environment:
Maximising Throughput

Problem 1: ‘More Work In = More Work Out’
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

124




Problem 2: Lack of Priorities
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
125




Problem 3: Lack of regime to prevent overloading
No loading rules = No control = Overloading

Solution:
Start new projects only when capacity allows

‘Stagger’ new projects starts to avoid major issues

126




Solution Summary:
• Prioritise !
• ‘Stagger’ project starts to avoid major contention

• Start new projects only when capacity allows

127



Project A

Prioritise!
Priority 4

Project B

Priority 5

Project C

Priority 3

Project D

Priority 2

Priority 1

Project E
Project F

Priority 6

128



CCPM in the Multi-Project Environment:

Priority 1

Project 1
Project 2

Priority 2

Project 3

Priority 3

Project 4

Priority 4

Project 5
Project 6

Priority 5
Priority 6

129




Project 1
Project 2

Project 3
Project 4

?=

Project 5
Project 6

130




Project 1
Project 2

Project 3
Project 4

?=

Project 5
Project 6

131




Project 1
Project 2

Project 3
Project 4

?

Project 5
Project 6

132




KR
KR
KR

?

KR
KR
KR

133



KR
KR
KR
KR




KR
KR
KR
KR

KR

KR
135




KR
KR
KR
KR

136


What’s the new picture look like?




It’s what you finish…
…not what you start.

137

CCPM Programme Management
The Programme Fever Chart
Multi-project Fever Chart
100%
90%

Percentage of Buffer Used

80%

Proj C

70%

Proj A

60%

50%
40%
30%

Proj E

Proj B

20%

Proj F

10%
0%
0%

10%

20%

30%

40%

50%

60%

70%

Percentage of Critical Chain Completed

80%

90%

100%

Programme Fever Chart focusses on projects that need attention
138



The Evidence
for CCPM

139



Companies Using CCPM - 1
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
140
Ventana



Companies Using CCPM - 2
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.
141





Results:

Japanese Government
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).”

CCPM Software - ProChain Inc.
ProChain is an industry-leading US-based CCPM software developer and implementer.
Here are some client quotes from various case studies using ProChain products:
•
•
•
•
•
•
•
•

‘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’
Source: ProChain Inc. http://www.prochain.com/clients/results.html
Copyright © 2013 by ProChain Solutions, Inc. All rights reserved.

142



Professional Recognition

Association for Project Management

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

Project Management Institute
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
143



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.
144

The Theory of Constraints & CCPM - 30yrs in the making:
The work and books of Eli Goldratt
Retail
Isn’t It Obvious?

TOC & Business Strategy
Viable Vision
TOC & Technology
Necessary But Not Sufficient
Project Management
Critical Chain
Distribution, Marketing, Management
It’s Not Luck
The Thinking Process
The Jonah Program, The Choice
Manufacturing, Accounting, Production
The Goal, The Race, The Haystack Syndrome

1985

1990

1995

2000

2005

2010

145



CCPM Potted History
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
146



Last Word
‘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 replan 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

147



Over 15 years experience of implementing CCPM
in
Multiple companies / Multiple industries
info@criticalpoint.co.uk
UK: 01892 506881

|

Intl: +44 1892 506881

148



The Real Reason That Projects Fail and How to Fix it - An Introduction to Critical Chain Project Management

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