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Critical Chain Project Management Brief Overview PMI Hampton Roads Chapter 2 June 2004

Critical Chain Project Management Brief Overview PMI Hampton Roads Chapter 2 June 2004.

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Critical Chain Project Management Brief Overview PMI Hampton Roads Chapter 2 June 2004

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  1. Critical Chain Project ManagementBrief OverviewPMI Hampton Roads Chapter2 June 2004

  2. Critical Chain Project ManagementAll Information in this Presentation obtained from the following resources and the personal experiences of the Presenter:The Goal by Dr. Eliyahu GoldrattCritical Chain by Dr. Eliyahu GoldrattCritical Chain Project Management by Larry LeachTraining Presentations by Vector StrategiesTraining Presentations by Realization TechnologiesTraining Presentations by Larry Leach

  3. Current Project Management Environment • Uncertainty Exists • Work Scope Changes • Emergent Work • Schedule Conflicts • Different Skill Levels • Murphy’s Law • Resources Limited • Not Enough Capacity (Labor & Material) • Overtime Must be Reduced • Aggressive Schedules • Timelines/Deadlines are Shrinking • Most Jobs Urgent • Commitments are Essential • Can Not Turn Work Away • Other? Must Get More Work Done with Less People in Less Time

  4. Current Project Management Problems • Missed Due Dates • No Credible Schedule • Unable to Accurately Predict Milestone Dates During Execution • Critical Path Constantly Changing • Task Durations Padded with Safety, yet Still Miss Dates • Multiple Scheduling Tools & Work Lists • Changing/Conflicting Priorities • Loss of Control • Daily Firefighting, Pulling Resources from One Job to Another • Too Many Worksites Open • Multi-tasking & High Work In Progress (WIP) • Resource Allocation Nightmare • Stress, Frustrated Workers & Supervisors • Too Much Rework

  5. Current Project Management Problems (Cont’d) • Projects Get Delayed & Require Heroic Efforts to Finish • Lack of Resources • People, Experience, Skills, Material, Tools • Work Load, Work Force Imbalance • Lack of Supporting Documents • Too Many Scope Changes • Too Much Overtime • Budget Overruns • Bad Estimates • Meetings Too Long • Other?

  6. Current Project Management Behaviors • Build Safeties into Each Task • Front End Load the Schedule & Fast Start Many Jobs to Get Ahead • Focus on Meeting Task Dates • Back Pocket Schedules • Update Official Schedules Weekly with Additional Safeties • Try to Predict Milestones Based on Costs and Earned Value • Focus on Task Costs More Than on Task Throughput • Parkinson’s Law • Use All Available Float/Slack on Each Task • Student Syndrome • Wait to Last Minute to Start/Finish Tasks • Fail to Claim Early Finishes • When Problems Occur, Start New Tasks

  7. Current Project Management Behaviors (Cont’d) • Increase Frequency & Duration of Meetings to Resolve Conflicts • Bad Multi-tasking • High WIP • Request More Resources Than Necessary to Accommodate WIP • Request More Overtime Than Necessary to Accommodate WIP • Request More Overtime Than Necessary to Recover Lost Time • Hoard “A Players”, Increasing Costs & Depriving Other Projects • Work Easy Jobs instead of Right Jobs • Complain About New Work & Scope Changes vice Planning for it • Base Duration & Cost Estimates on Worst/Last Performance • Parkinson’s Law Self Perpetuating • Student Syndrome Self Perpetuating

  8. What is Critical Chain Project Management (CCPM)? • CCPM was developed by Dr. Eliyahu Goldratt • Presented in his Business Novel Critical Chain • Application of Theory of Constaints (TOC) to Project Management • TOC Presented in his Business Novel The Goal • Set of Concepts, Principles, and Tools to Manage Project Systems Better

  9. What is Critical Chain Project Management (CCPM)? Theory Of Constraints • Thinking Processes • Current Reality Tree • Conflict Resolution Diagram • Future Reality Tree • Prerequisite Tree • Transition Tree Five Focusing Steps 1. Identify the System Constraint 2. Exploit the Constraint 3. Subordinate Everything Else 4. Elevate the Constraint 5. Go back to Step 1 present focus Throughput Accounting Critical Chain Project Management Supply Chain Management Drum - Buffer - Rope What to change? What to change to? How to cause the change?

  10. CCPM Principles • Projects Succeed or Fail as an Integrated System, not as a Collection of Discrete Tasks • Systems are Analogous to Chains • Weakest Link is the System’s Constraint • Constraints Can Never Really be Eliminated • Can Move From One Part of the System to Another • All Systems Have a Goal & Necessary Conditions • A System’s Optimum Performance IS NOT the Sum of Local Optima • A System Has Only One Constraint at a Time • All Systems Function According to Cause & Effect

  11. CCPM Principles (Cont’d) • The Goal of a Project is On Time or Early Completion, Delivering Full Project Scope within the Estimated Budget, Meeting All Quality and Safety Standards • To Achieve Different Results, Must Do Things Differently • Must Plan Differently • Must Schedule Differently • Must Manage Tasks Differently • Must Manage Resources Differently • Must Update Schedules Differently • Must Behave Differently • Must Focus on Constraints!!

  12. CCPM Principles/Behaviors • Eliminate Safeties from Each Task • Management Must Not Insist on Each Task Starting & Finishing “On Time” • Stagger Tasks in the Schedule Using Finish to Start Constraints • Start Right Jobs at Right Time Using Prioritized Task List • Focus on Meeting Milestone Dates, Not Task Dates • Single Integrated Schedule • Update Official Schedules Daily with Actual Starts, Remaining Duration, & Actual Finishes • Predict Milestones Based on Buffer Penetration • Focus on Task Throughput, NOT on Task Costs • Counter Parkinson’s Law • Conserve Available Float/Slack on Each Task, Reduce Time Available • Counter Student Syndrome • Start Each Task As Early As Possible • Claim Early Finishes Immediately

  13. CCPM Principles/Behaviors (Cont’d) • When Problems Occur, Solve the Problem vice Starting New Task • Decrease Frequency & Duration of Meetings • Resolve Conflicts Immediately at the Jobsite • Eliminate Bad Multi-tasking • Resources Focus on One Job at a Time, Work to Completion • Keep WIP Low! • Request Only Resources Necessary to Accommodate Priority Work • Request Only Overtime Necessary to Recover Buffer on Priority Work • Move Resources When Work is Done to Next Priority Work Quickly • Work Right Jobs instead of Easy Jobs • Plan for New Work & Scope Changes vice Complaining About it • Base Duration & Cost Estimates on Average/Bare Bones Performance

  14. Eliminating Safeties & Adding Buffers

  15. Buffer Management 100% ACT PLAN % Project Buffer Used WATCH Start Complete % Critical Chain Complete Buffers allow focus, simplify priorities and provide early warning on the health of the project.

  16. CCPM Applications & Results • Lucent Technologies • Project Success Rate Improved from 10’s to 100% • Harris Semiconductor • Reduced Mean Project Cycle Times from 140 to 36 Days • Israeli Aircraft • Reduced Maintenance Cycle Times from 45 to 14 Days • AGI Insurance • Reduced Project Cycle Time from 2 Years to 13 Months • NADEP Cherry Point • Reduced Cycle Times from 225 to 100 Days

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