CCPM using ms project 2010 and prochain implementing ppm

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A Critical Chain Project Management presentation explaining how I used Microsoft Project 2010 and Prochain to implement Microsoft's Project Server Portfolio Management capability at an international law firm.

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CCPM using ms project 2010 and prochain implementing ppm

  1. 1. 1997
  2. 2. Session Objective          
  3. 3. Portfolio Selection Capacity Planning Centralized Demand Management inventory Benefits Realization
  4. 4. Our Project Portfolio Management Capability Status Demand Management Portfolio Selection Portfolio Tracking & Status Portfolio Reporting Capacity Planning Resource Planning & Tracking Financial Planning Financial Tracking Benefits Realization Project Scheduling Project Tracking, & Status Task/Time Reporting Legend Capability implemented Capability implemented but limited Capability not implemented
  5. 5. Demand Mgt Portfolio Selection Portfolio Track & Status Portfolio Report Capacity Planning Resource Planning & Tracking Financial Planning Financial Tracking Benefit Realization Proj. Scheduling Proj Track & Status Task & Time Report Capability Status PRB process Process &Sequence Process State PM Frame Budget PM Frame. CIL CNI CIL CIL CNI CIL CI CIL Excel Excel Excel, MSPS Excel, MSPS SSRS Excel Excel MSPS Excel Excel Elite MSPS CNI CNI CIL CIL CNI CIL CI CIL PM Frame. CI CI CI MSPS CNI PM Frame MSPS SSRS MSPS SSRS CI CI CIL Process Assessment Supporting Application Application Status Application Assessment Legend Fully Supporting Capability Needs improvement or enhancement Failure to support capability Process State Application State CI = Capability implemented CI = Capability implemented CIL = Capability implemented but limited CIL = Capability implemented but limited CNI = Capability not implemented CNI = Capability not implemented CNI
  6. 6. Resource Constraints Bottlenecks
  7. 7. Organizational Core Issues         
  8. 8. Theory of Constraint: Critical Chain Process Network Building Critical Chain Scheduling Buffer Sizing Resource Management Buffer Management Synchronization
  9. 9. The Difference between the WBS and Project Network Building the IT Portfolio Capability Processes and Deliverables WBS 1.0 Game Plan 1.1 Baseline Assessment 4.0 Assessing 5.0 Balancing 6.0 Communicating 7.0 Governance & Organization 8.0 Assessing Execution 3.1 Populate portfolio 4.1 Monitor for triggers 5.1 Identify tuning options 6.1 Identify Stakeholders 7.1 Manage Portfolio Policies 8.1 Assess program execution 4.2 Measure Portfolio 5.2 Determine Trade-offs 6.2 Create Communication Packages 7.2 Integrate business processes 8.2 Perform assessment comparison 3.3 Define metrics 4.3 Compare Measures against Targets 5.3 Select/approve portfolio changes 6.3 Deliver communications 7.3 Monitor compliance triggers 8.3 Assessment & execution report 3.4 Build Portfolio Views 2.1 Plan Investment Strategy 3.0 Creating 3.2 Identify expected risks & results 2.0 Planning 4.4 Portfolio & Financial Tracking 5.4 Implement changes 6.4 Training 7.4 Create/ maintain governance processes 8.4 Benefits Realization 6.5 Portfolio Reporting 7.5 Establish Organization 2.2 Plan Portfolio Structure 1.2 Define Objectives 2.3 Plan individual subportfolios 1.3 Define Process Metrics 2.4 Demand Management 1.4 Documents the Portfolio Game Plan (Charter) 2.5 Resource Management 2.6 Financial Management 2.7 Methodology 2.8 Documentation 3.5 Solution Implementation 2.9 Capacity Planning 7.6 Portfolio Selection & Governance
  10. 10. Critical Path vs. Critical Chain Project Management CPM 1910 to 1950 CCPM 1997 The algorithms in critical path vs. the critical chain are radically different.
  11. 11. Accurate Estimating is a Paradox
  12. 12. Task variability is a fact of life.  Putting on a pair of Levis  Putting on a pair of Levis you owned in High School  Putting on Sweats
  13. 13. • Rule of Thumb • 32.5 days • Square Root of the Sum of the Squares • 100 + 400 + 100 + 100 + 225 = 925 (30.41) • What are our options if the buffer is to small and how do we know?
  14. 14. Plan 33% OK 67% 100% What is Buffer Management? Act Task variability is protected by aggregated buffers
  15. 15. Aggregated Buffers Saves Time and Money
  16. 16. Resource Histogram – Individual Capacity and Demand
  17. 17. CCPM requires Project Synchronization and Staggering Reducing the number projects in the system and focusing on the critical few will deliver more projects faster creating velocity
  18. 18. 25
  19. 19. Demand Mgt Portfolio Selection Portfolio Track & Status Portfolio Report Capacity Planning Resource Planning & Tracking Financial Planning Financial Tracking Benefit Realization Proj. Scheduling Proj Track & Status Task & Time Report Capability Status PRB process Process &Sequence Process State PM Frame Budget PM Frame. PM Frame PM Frame. CI CI CI CI CI CIL CI CIL CIL CI CI CI MSPS MSPS Excel Services, MSPS Excel Services, MSPS SSRS MSPS MSPS MSPS PFS Excel Excel Elite PFS MSPS MSPS MSPS MSPS SSRS MSPS SSRS CI CI CI CI CI CIL CI CIL CIL CI CI CI Process Assessment Supporting Application Application Status Application Assessment Legend Fully Supporting Capability Needs improvement or enhancement Failure to support capability Process State Application State CI = Capability implemented CI = Capability implemented CIL = Capability implemented but limited CIL = Capability implemented but limited CNI = Capability not implemented CNI = Capability not implemented
  20. 20. Change total cost constraint and click “Recalculate” to view the what if scenario and results Unselected projects Force in/out projects
  21. 21. Project Description High level summary Cost Benefits Analysts Cost /Benefits Payback by Project $1,400.00 $1,200.00 $$ $1,000.00 $800.00 $600.00 $400.00 $200.00 Total Benefits = $$$,$$$ Total Investment = $$$, $$$ Discount Rate = 7% Payback Period = 4 Yrs NPV= $xxx,xxxx Discount ROI = xx% $- 1 4 5 $100.00 $350.00 $700.00 $1,150.00 $110.00 $460.00 $635.00 $710.00 $735.00 $25.00 $100.00 $200.00 $350.00 $150.00 Expected Investments Actual Investments 3 $50.00 Expected Benefits Actual Benefits 2 $550.00 $660.00 $685.00 Years Benefit Assumptions Benefit Status • Assumption 1 • Assumption 2 • Assumption 3 • Hard Benefits: • Soft Benefits: • Strategic Benefits:
  22. 22. Aligning Behavior to increase our execution velocity What we want What we don’t want Balancing workload with the organizations capacity to deliver. Starting more projects than the organization has the capacity to handle. Focus on managing the project buffer and buffer consumption. (Proactive management) Firefighting to deliver projects on time, on budget and within scope. (reactive management) Understanding that variability exist and manage it using aggregated buffers. Padding each tasks to deliver projects on time. Project will take longer and longer to complete. Team Member Relay Runner Model Process Violating task or project dependencies to keep people busy Project Managers and Resource Managers working closer together Project Managers fighting over resources
  23. 23. How can you implement this process in your environment? Recognize the need for a new way to manage projects in a resource constrained environment.  Obtain agreement on the core problems managing projects with constrained resources.  Gain buy in and acceptance on CCPM from Senior Management  Treat the implementation of CCPM as a project.  Provide training and education on the benefits of CCPM  Develop the internal technical capability to manage CCPM projects  Develop a phased rollout approach  Evaluate results and conduct lessons learned 
  24. 24. Summary  What did we learn?  Critical Path Management was developed by the DOD using unlimited resources. Critical Chain Project Management accounts for the reality that all task have variability and that resources are limited.  Buffer Management provides a calculated leading indicator that provides an early warning if projects are trending to slip.   In addition, you learned:  The Differences between CCPM vs. Critical Path  The core issues Theory of Constraints CCPM must resolve?  The Difference between the WBS and Project Network.  What is meant by Project Synchronization and Staggering.  Understanding tasks variability and the Buffer Management.  How ProChain enables Critical Chain Scheduling in MS Project 2010.
  25. 25. Call to Action  Other Sessions  Critical Path 2.0, Eric Uyttewaal Implementing PMI’s Practice Standard for Scheduling in Microsoft Project, Kenneth Steiness   TOC Links   http://www.goldratt.com   http://www.principlesofexecution.com/a_toc_transformation http://www.prochain.com Evaluation  Remember to complete your Evaluation.

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