“Critical Chain” Project Management
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“Critical Chain” Project Management Presentation for KCMPUG March 19, 2003 Dave Higgins Consulting, Inc. Website: www.davehigginsconsulting.com Email: [email protected]
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“Critical Chain” Project Management. Presentation for KCMPUG March 19, 2003. Dave Higgins Consulting, Inc. Website: www.davehigginsconsulting.com Email: [email protected]. Dave Higgins. - PowerPoint PPT Presentation
Transcript of “Critical Chain” Project Management
“Critical Chain” Project Management
Presentation for KCMPUGMarch 19, 2003
Dave Higgins Consulting, Inc.Website: www.davehigginsconsulting.comEmail: [email protected]
Dave HigginsDave Higgins has been a student of systems development and improvement methods for nearly 30 years. Together with Ken Orr (of The Ken Orr Institute) and the late Jean-Dominique Warnier, Dave was one of the principal architects of the Warnier/Orr systems development methodology back in the 1980’s. During the course of his career he has performed hundreds of seminars on various topics from program design and modification, to systems and data base design, to requirements definition, to planning and project management. Dave has written five books on various aspects of software development and is the author of numerous articles and white papers. His first book, published in 1979, was one of the first on developing quality software for personal computers, and was translated into over a dozen languages. In recent years, Dave has focused on the strategic uses of technology to improve business processes, specializing in business process reengineering, strategic planning, data warehousing and knowledge management. Recent projects include the reengineering of document scanning and records retention systems for a big-three auto maker, and developing an electronic publication strategy for a national engineering standards organization.
CCPM Research… Article on CCPM for Cutter
Consortium
Origins of CCPM Eliyahu Goldratt, Israeli physicist &
PhD The Goal, 1984 Theory of Constraints, 1990 The Critical Chain, 1997
Website: www.goldratt.com
Theory of Constraints Identify the system’s constraints Decide how to exploit the system’s
constraints Subordinate and synchronize everything
else to the above decisions Elevate the performance of the
system’s constraints, If any of the above steps shift the
constraints, go back to step 1
CCPM Key Objectives Develop a realistic plan Develop a reliable plan Keep it simple Show the Critical Chain Minimize Schedule Change Optimize Globally, Minimize work-in-process and
multitasking
Developing the CCPM Schedule
Create the initial plan Level the resources Determine the Critical Chain, Add buffers to the schedule
What’s A Critical Chain?
Consider a “vanilla” project plan…
What’s A Critical Chain?
We all know about the critical path…
What’s A Critical Chain?
First, resource contention is ID’d…
R2 R1 R3 R4
R1 R2
R4 R1
What’s A Critical Chain?
Identify the critical chain…
R2 R1 R3 R4
R1 R2
R4 R1
What’s A Critical Chain?
Add buffers to the schedule…
R2 R1 R3 R4
R1 R2
R4 R1
Feeding Buffers
Project Buffer
What’s A Critical Chain?
The Critical Chain Project Schedule…
R2 R1 R3 R4
R1 R2
R4 R1
Customer Commitment Date
Project Start Date
What’s A Critical Chain?
The Critical Chain Project Schedule…
R2 R1 R3 R4
R1 R2
R4 R1
Customer Commitment Date
Project Start Date
And the advantage is?
R2 R1 R3 R4
R1 R2
R4 R1
R2 R1 R3 R4
R1 R2
R4 R1
Original Plan
CCPM Plan
And the advantage is?
R2 R1 R3 R4
R1 R2
R4 R1
R2 R1 R3 R4
R1 R2
R4 R1
Original Plan
CCPM Plan
The question becomes… If CCPM is better, why isn’t
everyone doing it? Projects will be shorter Projects will be easier to manage, Projects will be more successful
CCPM Assumptions Tasks are estimated at 50% vs.
90% Resource contention is eliminated Buffers are easier to manage Multitasking is minimized Projects are staggered, Time is money
Project facts of life
Time
Reso
urc
e
Scope
After Larry Putnam,www.qsm.com
Project facts of life
Time
Reso
urc
e
Scope
Smaller Project
Bigger Project
Project facts of life
Time
Reso
urc
e
Scope
When resource is fixed…
time can vary.
Project facts of life
Time
Reso
urc
e
Scope
When time is fixed…
resource can vary.
Project facts of life
Time
Reso
urc
e
Scope
When time & resource are fixed…
scope can vary.
Project facts of life
Time
Reso
urc
e
Scope
When time, resource and scope are fixed…
Oopsie!
Project facts of life and CCPM
Time
Reso
urc
e
Scope
If projects get shorter…don’t costs increase?
Self-fulfilling prophecy? Only progressive organizations
have generally tried it Requires a commitment from
management to change Scheduling Multitasking
Begging the question: How much is CCPM?
Conclusion Some good ideas Not a radical departure If you try it, you’ll probably have
some success… If you work at an organization that
will let you try it, you’ll probably have success even if you don’t.
