Critical Point Consulting: Gary Palmer

Gary Palmer
Critical Point Consulting
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.
What do we mean by Project Failure?

Any one of:
Late
Over Budget
Below Specification
Below Quality
Why do we need to change? - 1

Because huge numbers of projects are:
Late
+ Over Budget
+ Below Specification
+ Below Quality
Productivity & Throughput:
Often Low
Excessive Wastage
Slow Progress
Costly
Business Impact:
Product Expensive
Late to Market
Customer Dissatisfaction
Reputation
Project Failure & Slow Costly Projects Cripples Business
What is the main driver for these failures?

Late projects fuel other failures:
Late
Over Budget
Below Specification
Below Quality
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
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

Shouldnt early and late finishes balance out?

Usually not.
21

Potential
Early Finish
Deadline
Date
Task
Missed
Time-Saving
Parkinsons 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 Dont
And the schedule moves out
23

Q- What is the probability of all a projects 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

Parkinsons 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 Managers 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
Parkinsons 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
Parkinsons 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 A
Task B
Task F
Task G
Task H
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 E
Task A
Task B
Task F
Task G
Task H
Task I
Task C
Task D
Task J
Tasks F & C need the same resources, as do tasks G & I
61

PostCP Resource Levelling
Task F
Task E
Task A
Task B
Task H
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 E
Task A
Task B
Task F
Task G
Task H
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 E
Task A
Task B
Task E
Task F
Task G
Task H
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
Cant 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 PMs 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
Doesnt 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
E
B
Critical Chain completed reported into CCPM software
91

Contingency Buffer Usage
+3
B
C
+3
92

Contingency Buffer Usage
Buffer
Used
Buffer
Remaining
+3 +3
A
+3
B
C
+3
Task C has no effect on buffer

93

Seeing into the Future
Buffer
Used
Buffer
Remaining
+3 +3 +5
A
+3
B
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 and104

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
Critical
Consulting
Point Consulting
Critical Point
The Programme & Portfolio Myth

1. That the more projects you start, the more you will get done
You wont
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 (Its 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
Its 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

Whats the new picture look like?
Its 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,

141 TN.
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
Isnt It Obvious?
TOC & Business Strategy

Viable Vision
TOC & Technology
Necessary But Not Sufficient
Project Management
Critical Chain
Distribution, Marketing, Management
Its 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) 1980s 1990s
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

Critical Point Consulting: Gary Palmer

Cargado por

Información del documento

Título original

Derechos de autor

Formatos disponibles

Compartir este documento

Compartir o incrustar documentos

Opciones para compartir

¿Le pareció útil este documento?

¿Este contenido es inapropiado?

Copyright:

Formatos disponibles

Critical Point Consulting: Gary Palmer

Cargado por

Copyright:

Formatos disponibles

Gary Palmer

Critical Point Consulting

Critical Point Consulting

What do we mean by Project Failure?

Critical Point Consulting

Why do we need to change? - 1

Critical Point Consulting

Why do we need to change? - 2

Productivity & Throughput:

Critical Point Consulting

Why do we need to change? - 3

Critical Point Consulting

What is the main driver for these failures?

Critical Point Consulting

What are the reasons for this?

1. The traditional methods in use,

Critical Point Consulting

Critical Chain Project Management

Project Completion: 20% - 50% Faster

20% - 60% Increase

Without increasing resources

Critical Point Consulting

How Does CCPM Deliver These Improvements?

By resolving problems in our working methods that:

Critical Point Consulting

tools that work individually and collaboratively to

Critical Point Consulting

tools that work individually and collaboratively to

Critical Point Consulting

tools that work individually and collaboratively to

Critical Point Consulting

tools that work individually and collaboratively to

Collaboratively: In unison to support the whole

Critical Point Consulting

tools that work individually and collaboratively to

Critical Point Consulting

tools that work individually and collaboratively to

Critical Point Consulting

tools that work individually and collaboratively to

Traditional Project Management

Critical Point Consulting

Traditional Project Management

Critical Point Consulting

Traditional Project Management

06/10 07/10 13/10

Attempt to impose a Rigid construct on a Variable situation

Critical Point Consulting

Traditional Project Management

Shouldnt early and late finishes balance out?

Critical Point Consulting

Traditional Project Management

Parkinsons Law Work expands to fill the time available

Critical Point Consulting

Traditional Project Management

Parallel Converging Tasks tied to schedule dates

Critical Point Consulting

Traditional Project Management

Q- What is the probability of all a projects tasks finishing on time?

With a 90% task probability:

100 tasks = 0.000026%

Q? - How many tasks in your current project?

Critical Point Consulting

Traditional Project Management