Introduction To Critical Chain Project Management

1
Introduction To Critical Chain Project Management

• Hilbert Robinson, Afinitus Group, LLC
• Robert Richards Ph.D,, Stottler Henke Associates,
  Inc.

2
Are You A Responsible Person?

• Scenario
• You live in New England and Its late Winter
• Time to airport varies from 45 minutes to 3 hours
  depending
• Most times it takes a little over 65 minutes
• You are Joining the President at 900 AM
• Question
• How early should you leave? __________
• Why?_____________________________

3
Presentation Outline

• Background
• Triple Constraints
• Murphys Law
• Complexity
• Problem What to Change
• Localized Risk Management
• Task Level Insurance Policy
• Student Syndrome
• Parkinsons Law
• Multi-tasking
• Solution What to Change to
• Governing Principle - Global Risk Management
• Project Level Protection
• Systems Perspective
• Execution Control

4
Background

• Triple Constraints Binding Commitments
• Time Minimize
• Capacity Minimize
• Content Maximize

5
Background

• Murphys Law Disruption Event
• Number of unknowns
• Range of possibilities
• Frequency of repetition
• Complexity Amplification factor
• Degree of integration required
• Number of dimensions to be integrated

6
Presentation Outline

• Background
• Governing Principle or Paradigm Shift
• Triple Constraints
• Complexity
• Murphys Law
• Problem What to Change
• Localized Risk Management
• Task Level Insurance Policy
• Student Syndrome
• Parkinsons Law
• Multi-tasking
• Solution What to Change to
• Governing Principle - Global Risk Management
• Project Level Protection
• Systems Perspective
• Execution Control

7
The Problem Localized Risk Management Strategy

• Task level insurance policy
• See opening scenario answers?
• And if it was a task in a project??
• How safe is safe enough?
• Student Syndrome
• The dog ate my homework
• Parkinson's Law
• Self-fulfilling prophecy good estimating?
• Multi-tasking absence of priorities
• Hero or villain?

8
Problem Localized Risk Management
One Resource, Four Task, from Four Different
Projects

Multi-tasking causes delays to spread across all
projects, adding as much as 20 to all projects
9
9
Presentation Outline

• Background
• Governing Principle or Paradigm Shift
• Triple Constraints
• Complexity
• Murphys Law
• Problem What to Change
• Localized Risk Management
• Task Level Insurance Policy
• Student Syndrome
• Parkinsons Law
• Solution What to Change to
• Global Risk Management
• Project Level Protection
• Systems Perspective
• Execution Control

10
Solution

• Governing Principle Behind CCPM is
• Aggregation of risk
• Benefits
• Lower overall protection needed
• Higher degree of coverage achieved
• Leading to lower incidence of failure

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SolutionGlobal Approach to Risk Management

1. Planning
2. Project Level vs. Task Level Protection
3. Systems Perspective for Multiple Projects
4. Should load for multiple projects be considered?
5. Why?
6. How?
7. Execution Control
8. Promote and encourage team culture
9. Controlled work queues
10. No multi-tasking work rules
11. No batch processing work rules
12. Task assignment prioritization
13. Management by Exception

12
Critical Chain Planning Process
From Task to Project Protection
1. Traditional Plan
2. Safety Excluded
3. Resource Leveled
4. Critical Chain Marked
13
Aggregation Principle
The Concept of Risk Pooling Can someone explain
why this works? Health Care Example larger
pool lower cost
14
Aggregation Principle

• Insurance is designed to work by spreading
  costs across a large number of people. Premiums
  are based on the average costs for the people in
  an insured group.  This risk-spreading function
  helps make insurance reasonably affordable for
  most people.
• http//www.insurance.wa.gov/legislative/factsheets
  /PoolingRiskReducingCost.asp

15
Critical Chain Planning
Compared to 60 days traditional
PB Project Buffer FB Feeding Buffer

• Aggregation Principle where did some of the
  safety go?
• Pooled protection provides more coverage
• Location is just as important as amount
• Sizing Rule of Thumb ? 2/3rds to 1/3rd
• Buffer is half of preceding chain

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Critical Chain in Execution
Schedule Before Execution Starts
AS OF DATE

1. T8 experienced a 5 day increase in scope or delay
2. Results in a 2.5 day impact to the project buffer
3. The rest was absorbed by the Critical Chain gap

4. 35-32.52.5 ?7 Complete and 14 Buffer
Consumed
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Perspective on Buffers

• Not rear view mirror watching
• Predictive/Preventative/Leading Indicator
• Mechanism to Promote and encourage Team Work
• Collaboration / Communication Incentive Mechanism
• Measuring device Neutral, Normalized Metrics
• Real-time Risk Meter
• Encourages an holistic/goal oriented perspective

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Critical Chain Priority Metric

• Project Status Trend Chart or Fever Chart

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Multi-Project System

• Systems Perspective for Multiple Projects
• Should load for multiple projects be considered
  jointly?
• Obviously
• Why?
• Prevent System Overload/Multi-tasking
• How?
• By taking a Systems Perspective

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Creating a Multi-Project Schedule
Finite Capacity Pipeline
Due Dates Are Derived
Ingredients

1. CC Plans shorter
2. Strategic Pacing Mechanism
3. Strict Priority Scheme
4. Rate Limit Policy/Guidelines

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Multi-Project Execution ControlPipeline Status
Snap Shot
In Execution, Buffer Status Drives Priority
Decisions, not Project Importance
1010
By Portfolio of Projects
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The Upshot

• Benefits
• Operational Coherence Stability
• 20 Shorter Cycle-Times Speed
• On-time Performance Reliability
• More throughput Growth
• Challenges
• 1. Simple but not easy to grasp too simple?
• Requires a change in mindset
• Takes 120 days for typical 100 person team
• We dont need that much improvement

23
Questions???

• Hilbert Robinson, Afinitus Group, LLC
• www.afinitus.com
• Robert Richards Ph.D,, Stottler Henke Associates,
  Inc.
• AACE2009.R.RichardsPhD_at_Neverbox.com
• www.StottlerHenke.com