saving time with ccpm -...
TRANSCRIPT
Saving time with CCPMCritical Chain Project Management
NIET ELK PROJECT LOOPT UIT !
Freek de Ruiter
Presentatie ikdoeprojecten community
10 mei 2011
© Logica Business Consulting 2011. All rights reserved No. 2
Why do we want to save time ?
Saving time with Critical Chain Project Management
© Logica Business Consulting 2011. All rights reserved
Product life cycles are getting shorter
Improving due date performance and reducing lead time enlargesfinancial benefits
Finishing a project ASAP means:
• Reduced Time to Market
• Cost reduction
CCPM promises:
• 80% due date performance in a portfolio
• 25% lead time reduction of a project
Saving time with Critical Chain Project Management
Why saving time with CCPM ?
No. 3
© Logica Business Consulting 2011. All rights reserved
Freek de Ruiter is a member of the NL TOC Network and has becomean enthusiast expert on Critical Chain Project Management.
Being Principal Consultant Business & Project Management at Logica, he specializes on the domains planning, scheduling and tracking
No. 4Saving time with Critical Chain Project Management
Presented to you by Freek de Ruiter
© Logica Business Consulting 2011. All rights reserved
• What is CCPM?
• Improving portfolio performance
• How does CCPM work?
• Plenty of time to save
• CCPM planning
• CCPM execution
• Multi-project CCPM
• Summary
• When or why will CCPM not work
• Results
No. 5Saving time with Critical Chain Project Management
Agenda
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• An IT development method like Agile
• An improvement method like Lean and SixSigma
• A project management method like PRINCE 2
• A program management method like MSP
• Just a planning “trick”
• A way to solve all your problems (“Haarlemmer oil” / “Silver Bullit”)
Saving time with Critical Chain Project Management
What CCPM is not:
No. 6
© Logica Business Consulting 2011. All rights reserved
The elaboration of the TOC body of thought on project management:
TOC = Theory of Constraints
Books by Eli Goldratt:
• The goal
• Critical Chain
• Inherent Simplicity The Choice
Saving time with Critical Chain Project Management
What is CCPM ?
No. 7
Isaac Newton: “Nature is exceedinglysimple and
harmoniouslywithin itself”
© Logica Business Consulting 2011. All rights reserved
“Doing the right things right”
1) Select the right (order of) projects:
“Front end” PPM: portfolio alignment with company business objectives, is not covered in this presentation, but probably is the most import factor in improving portfolio performance
2) Execute the projects as efficiently as possible:
• By providing max. throughput of the system using “Multi-project” CCPM
• This flow is the one and only consideration!
• If you manage to keep projects on time and budget, you do not needto change or stop projects (based on predictions Earned ValueAnalysis can provide)
No. 8Saving time with Critical Chain Project Management
Improving portfolio performance
© Logica Business Consulting 2011. All rights reserved
• Plan projects with buffers
• Reducing work in progress (WIP)
• Active execution of projects
• Monitoring the right points of attention
• Unambiguous priority system
“Plan tasks as late as possible to avoid unnessecary work in progress, but monitor the start of planned tasks and the finish of tasks in progress daily, by means of the buffer penetration mechanism.”
No. 9Saving time with Critical Chain Project Management
How does CCPM work ?
Plenty timeto save
© Logica Business Consulting 2011. All rights reserved
• Safety too high
• Tasks start too late
• Tasks end too late
• Productivity loss of bad multi-tasking
• Waiting on decisions
No. 11Saving time with Critical Chain Project Management
Time to save
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Project member estimates: minimum of 3 days work and tells his team lead: “ready in a week!”
Another project member estimates for a follow up action a week too
Team lead schedules the activities and tells his project manager thathe needs 12 days, to prevent that delay of the 1st activity causesdelay of the 2nd activity.
Project manager reports to the steering committy to count on 3 weeks for that cluster, because before the activities can start first anothercluster……
No. 12Saving time with Critical Chain Project Management
Safety to high
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A deadline influences in a negative way
3 days work? 5 days available?
I can postpone working on this task, which I do not like to start, to the day after tomorrow!
On day 4 Murphy strikes: 2 days extra needed!
Possibly increasing the lead time of the project
No. 13Saving time with Critical Chain Project Management
Tasks start too late (student syndrome)
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Time planned will always be filled with work
3 days work? 5 days available?
I immediately start working on this task that I like to work on
Ready after 3 days, no reward for being ready, adding all kinds of “nice to haves” for 2 days
Loss of productivity and possibly waisting an opportunity to reduce the lead time of the project
No. 14Saving time with Critical Chain Project Management
Tasks end too late (Parkinsons law No. 1)
© Logica Business Consulting 2011. All rights reserved No. 15Saving time with Critical Chain Project Management
Productivity loss of bad multi-tasking
Task A
Task B
Task C
Tasks assigned to
person
3 days
3 days
3 days
Ideally: Task A Task B Task C
3 days 3 days 3 days
OK? B BA AC C
6 days
6 days
6 days
In reality minimally
BBA AC C
7 days
7 days
7 days
Productivityloss
Shift of end date task A
Shift of end date task B
© Logica Business Consulting 2011. All rights reserved
• Not much space in management agendas
• Disagreement on priorities
But on top of that:
• Managers miss information because the decision making process is notenough known to the non-decisionmakers
Consequences:
• More waiting on decisions
• More loss of productivity
• More increase of the project lead time
• More loss of motivation
Looking back in retrospective, any decision, always based on the knowledge at a certain time, could have been replaced by another, unfortunately neverenabling a 100% certain analysis of the consequences of that replacement
No. 16Saving time with Critical Chain Project Management
Waiting on decisions
CCPM planningSingle project
No. 18© Logica Business Consulting 2011. All rights reserved
Start with basic planning on skill level
Saving time with Critical Chain Project Management
No. 19© Logica Business Consulting 2011. All rights reserved
Critical Path
Saving time with Critical Chain Project Management
No. 20© Logica Business Consulting 2011. All rights reserved
Resource allocation of individuals
Saving time with Critical Chain Project Management
No. 21© Logica Business Consulting 2011. All rights reserved
Overallocation!
Saving time with Critical Chain Project Management
No. 22© Logica Business Consulting 2011. All rights reserved
Also overallocation in the skill based planning
Saving time with Critical Chain Project Management
No. 23© Logica Business Consulting 2011. All rights reserved
Overallocation solved, but multitasking meansmore work!
Saving time with Critical Chain Project Management
No. 24© Logica Business Consulting 2011. All rights reserved
Resource leveling can cause switching once
Saving time with Critical Chain Project Management
No. 25© Logica Business Consulting 2011. All rights reserved
Multi-tasking eliminated, resource contentionremoved, ready to apply CCPM planning
Saving time with Critical Chain Project Management
No. 26© Logica Business Consulting 2011. All rights reserved
Critical Chain is not Critical Path
Saving time with Critical Chain Project Management
© Logica Business Consulting 2011. All rights reserved
• Plan projects with buffers
• Reducing WIP
• Active execution of projects
• Monitoring the right points of attention
• Unambiguous priority system
“Plan tasks as late as possible to avoid unnessecary work in progress, but monitor the start of planned tasks and the finish of tasks in progress daily, by means of the buffer penetration mechanism.”
No. 27Saving time with Critical Chain Project Management
How does CCPM work ? (repeated)
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• Where protection needed?
• How much?
• Only this way setbacks can be compensated by pleasant surprises
Saving time with Critical Chain Project Management
Plan projects with buffers
No. 28
No. 29© Logica Business Consulting 2011. All rights reserved
Step 1:Remove 50% safety from the individual tasks
Saving time with Critical Chain Project Management
No. 30© Logica Business Consulting 2011. All rights reserved
Step 2:Add buffers with 50% of the removed safety
Saving time with Critical Chain Project Management
No. 31© Logica Business Consulting 2011. All rights reserved
Step 3: start non-critical tasks ALAP
Saving time with Critical Chain Project Management
© Logica Business Consulting 2011. All rights reserved
• Plan projects with buffers
• Reducing WIP
• Active execution of projects
• Monitoring the right points of attention
• Unambiguous priority system
“Plan tasks as late as possible to avoid unnessecary work in progress, but monitor the start of planned tasks and the finish of tasks in progress daily, by means of the buffer penetration mechanism.”
No. 32Saving time with Critical Chain Project Management
How does CCPM work ? (repeated)
No. 33© Logica Business Consulting 2011. All rights reserved
Result of the 3 CCPM planning steps
Saving time with Critical Chain Project Management
No. 34© Logica Business Consulting 2011. All rights reserved
Cautious?Result of removing only 25% safety from tasks
Saving time with Critical Chain Project Management
No. 35© Logica Business Consulting 2011. All rights reserved
Very cautious?Result of not removing any safety at all
Saving time with Critical Chain Project Management
No. 36© Logica Business Consulting 2011. All rights reserved
50% - 50% - 50% approach is proven best CCPM practice in a multiproject arena!
Saving time with Critical Chain Project Management
CCPM executionSingle project
© Logica Business Consulting 2011. All rights reserved
• Plan projects with buffers
• Reducing WIP
• Active execution of projects
• Monitoring the right points of attention
• Unambiguous priority system
“Plan tasks as late as possible to avoid unnessecary work in progress, but monitor the start of planned tasks and the finish of tasks in progress daily, by means of the buffer penetration mechanism.”
No. 38Saving time with Critical Chain Project Management
How does CCPM work ? (repeated)
© Logica Business Consulting 2011. All rights reserved
• Resource allocation of individuals
• Buffer management
• The following scenario is an example of possible events
Execution
No. 39Saving time with Critical Chain Project Management
No. 40© Logica Business Consulting 2011. All rights reserved
Start of project on 9/11/09
Saving time with Critical Chain Project Management
No. 41© Logica Business Consulting 2011. All rights reserved
Monday 16/11: Analist 1 reports status finished with4 hours extra work done, Designer 1 reports 4 hoursextra work to do.
Saving time with Critical Chain Project Management
Progress in week 1
No. 42© Logica Business Consulting 2011. All rights reserved
Analyst 2 and Designer 2 report work finish conform schedule, Developer reports having started 1 daylater because of sickness.
Saving time with Critical Chain Project Management
Progress in week 1
No. 43© Logica Business Consulting 2011. All rights reserved
Feedbuffer consumption 50% with branche 80%complete, Projectbuffer consumption 13% withCritical Chain 30% complete.
Saving time with Critical Chain Project Management
Progress in week 1
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Monday 23/11: Designer 1 reports work finished conform newschedule, Developer reports finished product 2 with 8 hoursextra work done and 16 extra hours to be done on product 1.
Saving time with Critical Chain Project Management
Progress in week 2
No. 45© Logica Business Consulting 2011. All rights reserved
Feedbuffer consumption 50% with branch 100%complete, Projectbuffer consumption 50% withCritical Chain 50% complete
Saving time with Critical Chain Project Management
Progress in week 2
© Logica Business Consulting 2011. All rights reserved
• Plan projects with buffers
• Reducing WIP
• Active execution of projects
• Monitoring the right points of attention
• Unambiguous priority system
“Plan tasks as late as possible to avoid unnessecary work in progress, but monitor the start of planned tasks and the finish of tasks in progress daily, by means of the buffer penetration mechanism.”
No. 46Saving time with Critical Chain Project Management
How does CCPM work ? (repeated)
No. 47© Logica Business Consulting 2011. All rights reserved
Developer reports 1 day later “probably readymiddle next week”, which means projectbuffer consumption 75% with Critical Chain 50% complete.
Saving time with Critical Chain Project Management
Progress in week 2 + 1 day
No. 48© Logica Business Consulting 2011. All rights reserved
Projectmanager helps Developer with problem and skipping superfluous work , project buffer consumption back on 50%
Saving time with Critical Chain Project Management
Progress in week 2 + 1 day
No. 49© Logica Business Consulting 2011. All rights reserved
Monday 30/11: Developer reports progressaccording to new schedule, project buffer consumption 50% with Critical Chain 75% complete
Saving time with Critical Chain Project Management
Progress in week 3
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Monday 7/12, integration test finished with 8 hoursextra work, acceptance test starting today.
Saving time with Critical Chain Project Management
Progress in week 4
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Wednesday 9/12: Acceptance test finished after2 days, project buffer consumption of 66,67%
Saving time with Critical Chain Project Management
Progress in week 5
No. 52© Logica Business Consulting 2011. All rights reserved
Project finished before deadline
Saving time with Critical Chain Project Management
No. 53© Logica Business Consulting 2011. All rights reserved
Project finished in less hours than baselines
Saving time with Critical Chain Project Management
No. 54© Logica Business Consulting 2011. All rights reserved
Project finished under budget
Saving time with Critical Chain Project Management
Multi-project CCPM
© Logica Business Consulting 2011. All rights reserved
Staggering:
• Single CCPM planned projects
• Projects in order of finish date (priority)
• Indentify drum tasks/resources (= key resources)
• Remove resource contention of key resources on drum tasks
• Replan all tasks of all projects before and after tasks of keyresources
Multi project CCPM planning
No. 56Saving time with Critical Chain Project Management
No. 57© Logica Business Consulting 2011. All rights reserved
Single CCPM planned projects
Saving time with Critical Chain Project Management
No. 58© Logica Business Consulting 2011. All rights reserved
Identify drum tasks/resources
Saving time with Critical Chain Project Management
No. 59© Logica Business Consulting 2011. All rights reserved
Remove resource contention of key resources on drum tasks
Saving time with Critical Chain Project Management
No. 60© Logica Business Consulting 2011. All rights reserved
Replan all tasks of all projects before/aftertasks of key resources
Saving time with Critical Chain Project Management
© Logica Business Consulting 2011. All rights reserved
• Project organization with competence pools:
• Taskmanagers are working for more than 1 project
• Resources are working for a taskmanager
• Unambigous priority rules
• Highest priority for task which causes highest penetration of the projectbuffer of the project with the highest priority
• Highest priority for project with highest penetration of its projectbuffer in relation to its completeness of the Critical Chain
• The project waiting with the highest priority in the pipeline is only to bestarted when one of the projects in execution is finished
Saving time with Critical Chain Project Management
Multi-project CCPM execution
No. 61
© Logica Business Consulting 2011. All rights reserved
• Plan projects with buffers
• Reducing WIP
• Active execution of projects
• Monitoring the right points of attention
• Unambiguous priority system
“Plan tasks as late as possible to avoid unnessecary work in progress, but monitor the start of planned tasks and the finish of tasks in progress daily, by means of the buffer penetration mechanism.”
No. 62Saving time with Critical Chain Project Management
How does CCPM work ? (repeated)
No. 63© Logica Business Consulting 2011. All rights reserved
Highest prority for which project ?
Saving time with Critical Chain Project Management
T1 T2 T3
PBProject W18: 60% penetration
Just 1 Task
PB Project W14: 90% penetration
© Logica Business Consulting 2011. All rights reserved No. 64Saving time with Critical Chain Project Management
Overview of portfolio (fever chart)
W18
Summary
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• Plan projects with buffers (feed buffers and project buffers)
• Reducing WIP (starting tasks ALAP)
• Active execution of projects
• Monitoring the right points of attention (with buffermanagement)
• Unambiguous priority system
“Plan tasks as late as possible to avoid unnessecary work in progress, but monitor the start of planned tasks and the finish of tasks in progress daily, by means of the buffer penetration mechanism.”
Every day:
How much time is needed to complete this task in progress?
No progress? Where is this task waiting on?
No. 66Saving time with Critical Chain Project Management
How does CCPM work ? (summary)
No. 67© Logica Business Consulting 2011. All rights reserved
Buffermanagement is the key element
Saving time with Critical Chain Project Management
Okay Plan Act
0% 33% 66% 100%
Percentage Use of Buffer
Percentage (Non) Critical Chain to go
100% 67% 33% 0%
Traffic light status Buffers in combination with %-CC to go
x x
?
© Logica Business Consulting 2011. All rights reserved
No wait time on the Critical Chain
Only safety where it is needed
Do not question the priority algorithm
Personal preferred implementation for single-project CCPM:
• Estimates and safety in consultation with team members (e.g. taskshave only 50% chance to finish on time)
• Reward the right performance (which is not always finishing yourtask on the time estimated on a 50% chance to do that!)
Personal preferred implementation for multi-project CCPM:
• Take 50% safety from tasks, put 50% of this safety in buffers
• Consider portfolio performance as achievement of all the resources
No. 68Saving time with Critical Chain Project Management
Focus on the project/portfolio, not on the tasks
WA ?
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• If you keep believing “this is too good to be true”
• Because companies do not want/need to change
• With the attitude “not invented here”
• Because CCPM needs professional planning practises to start with
• No reliable enough estimates
• No committment from management
Saving time with Critical Chain Project Management
When or why does CCPM not work ?
No. 69
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Saving time and money:
Projects theoretically always ready on due date or earlier
On-site observed average due date performance: 80%
Theoretical lead time reduction is 33%
On-site observed average lead time reduction: 25%
No. 70Saving time with Critical Chain Project Management
Results
© Logica Business Consulting 2011. All rights reserved
Logica project “Inname en Mengerij Denkavit Frankrijk”, realisedmargin 41,2%, planned margin 15,6%, delivery 3 weeks earlier thanplanned
Implementations by partner Blue Jonah, most impressive (see figureslast slide): Nationale Nederlanden IT divison(http://www.bluejonah.com)
Implementations by software company Realization (Concerto tooling) (http://www.realization.com)
Numerous other implementations to be found on the internet
No. 71Saving time with Critical Chain Project Management
References
Logica Business Consulting is the consulting division of the Logica group, a leading IT and business services company, employing 40,000 people. It provides business consulting, system integration, and IT and business process outsourcing services.
Logica Business Consulting has a network of 3,500 consultants located throughout Europe. Our consultants help drive the success of clients’ transformation projects. They stand apart through their European culture, ability to work closely with clients, and unique blend of sector-based, functional and technological expertise. More information is available at www.logica.com/consulting
Thank you
Logica Business Consulting NL Prof. W.H. Keesomlaan 14 1183 DJ Amstelveen The Netherlands www.logica.com/consulting
Contact: Freek J. de Ruiter Principal Consultant Business & Project Management Support T: +31 (0) 20 503 3000 E: [email protected]