Work smarter, not harder - University of Split · Introduction Work smarter, not harder 1...

Introduction

Work smarter, not harder

1

Methodology of Project Work

[email protected]

Tomaž Aljaž, Ph.D., Ass.

Professor

mailto:[email protected]

Before we begin …

• Some words about me and my country

Dr. Tomaž Aljaž

Split

2

Short about me …• Married, two beautiful daughters 15 and 17 years

• More then 20 years of professional experience on Information technology and telecommunication area.

• Main areas of expertise are related to managing I(C)T projects, improving performance of (project) teams, establishing and maintaining optimal use of resources and reducing operating risks.

• Prior experiences are related to R&D environment working as Resource, Project and product manager, as well as Solution manager.

• Published many articles on information technology and telecommunication area, resource management, project management and process improvements using Theory of Constraints and other Agile methodologies.

• Ph.D. in Electrical Engineering from Faculty of Electrotechnical Engineering and Computer Science Maribor, Slovenia and finish courses related to Constraint Management at Washington State University, USA.

• Teaching at graduate and post graduate level more than 8 years topic related to performance improvements of organizations, project management, information technology and telecommunication on national and international level.

• In 2014 Jonah certificate, recognized by Theory Of Constraints International Certification Organization (TOCICO).

3

About Slovenia

• Independence: 1991

• Official language:

Slovene

• Nationality: Slovene (s)

noun | Slovenian

(adjective)

• Population: 1,992,690

(est. 2013)

• Slovenia borders 4

countries

• Area: 20,273 km²

• Member of the EU: since

1 May 2004

• Currency: Euro - €

• Gross domestic product:

16.000 €

• Milk 1 l = 0,7 € -1,3 €

• Bread 1 kg = 1 – 3 €

https://www.cia.gov/library/publications/the-world-factbook/geos/si.html 4

https://www.cia.gov/library/publications/the-world-factbook/geos/si.html

• Indo-European language belongs to the South Slavic

language family.

• Slovenian is one of the few to preserve the dual

grammatical number from Proto-Indo-European.

• Slovenian and Slovak are the two modern Slavic

languages - literally mean "Slavic" (slověnskii in old

Slavonic).

• A highly varied language, many dialects - different

grades of mutual intelligibly.

Slovenian language

(slovenščina)

http://www.cmepius.si/en/files/cmepius/userfiles/publikacije/Popek_en.pdf

Linguists agree that there are about 48 dialects.

5

http://www.cmepius.si/en/files/cmepius/userfiles/publikacije/Popek_en.pdf

PoticaNut roll

dough, nuts, sugar

Jota

beans, potatoes, sauerkraut, dried pork garlic, bay

leaf, salt and pepper

Bogračpork, beef,

venison, potatoes,

onions, garlic, red pepper,

salt

Ajdovi

žganci

buckwheat flour, water,

milk

Prekmurska gibanica

dough, cottage cheese, poppy

seeds, walnuts and apple filling, sugar

Štruklji

Dumplings

dough, white or buckwheat flour,

filling with nuts or cheese or apple ...

Source: Google images

Famous places in Slovenia

7

Question for “warm up”

• In Slovenia there is tradition that groom and bride go to small island in the middle of lake Bled and go to the church tower to ring for a happiness. How many stairs needs groom to carry bride?

– A: 5

– B: 50

– C: 100

– D: 200

8

PROJECT MANAGEMENT TERMS

9

What is a Project?

• Temporary* endeavor undertaken to create a unique product, service, or result.

• The temporary nature of projects indicates that a project has a definite beginning and end.

• The end is reached when the project’s objectives have been achieved or when the project is terminated because its objectives will not or cannot be met, or when the need for the project no longer exists.

• A project may also be terminated if the client (customer, sponsor, or champion) wishes to terminate the project.

*Temporary does not necessarily mean the duration of the project is short. It refers to the project’s engagement and its longevity.

10Source: PMBOK_Guide_5th Edition

What is Project management?

• is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.

• Project management is accomplished through5 main groups

• Initiating,

• Planning,

• Executing,

• Monitoring and Controlling, and

• Closing.11Source: PMBOK_Guide_5th Edition

How to Manage a project ?• Identifying requirements;

• Addressing the various needs, concerns, and expectations of the stakeholders in planning and executing the project;

• Setting up, maintaining, and carrying out communications among stakeholders that are active, effective, and collaborative in nature;

• Managing stakeholders towards meeting project requirements and creating project deliverables;

• Balancing the competing project constraints, which include, but are not limited to:

– Scope,

– Quality,

– Schedule,

– Budget,

– Resources, and

– Risks.

•12Source: PMBOK_Guide_5th Edition

DIFFERENT APPROACHES TO MANAGE PROJECTS

13

Different types of methodologies for managing projects

• Traditional

– Waterfall, V-model (PMI, ITIL)

• Theory of constraints

– Critical Chain Project Management (CCPM)

• Agile

– Scrum

• Mixed

– „Rolling Wave“14

Waterfall / V model• The waterfall model is a sequential (non-

iterative) design process

• Progress is seen as flowing steadily downwards (like a waterfall)

• Still dominant project

Management model

15Source: Wikipedia

V model

• May be considered an extension of the waterfall model

• Instead of moving down in a linear way

16Source: Wikipedia

Planing

• Work Breakdown Structure

– Which tasks need to be completed?

• Process Plan - Phase Plan - Schedule

– How are the tasks organized according to a schedule? How long do the individual tasks take?

• Project Resource Plan

– Who will do a task(s)?

– How much capacity do we need? 17

• Definition (by Wikipedia)– Critical Chain Project Management (CCPM) is a method of planning and managing

projects that puts the main emphasis on the resources required to execute projecttasks. This is in contrast to the more traditional methods derived from critical path andPERT algorithms, which emphasize task order and rigid scheduling. A Critical Chainproject network will tend to keep the resources levelly loaded, but will require them tobe flexible in their start times and to quickly switch between tasks and task chains tokeep the whole project on schedule.

Critcal Chain Project Management

Constrain resource

(bootleneck)

18

Critical Path vs. Critical Chain

• Critical Path:– Defined as the longest chain of activities in a project. This, by definition, ignores any

resource limitations. It assumes that there are no resource issues within the project.

19Source: http://alexrogoventures.wordpress.com/2011/06/06/project-management-transitioning-from-critical-path-to-critical-chain/

• Critical Chain: Defined as the longest chain of dependent events – considering both activity and

resource dependencies.

Let’s take advantage of good statistics. If we finish early, we can move on to the next task.

Don’t waste Safety Allocated.

20

1 2 3 4 5 6 7 8 9 10

Completion Distribution

Buffer

Before: 85% Estimate

Due Date


Due Date

Buffer

After: 50% Estimate

1 2 3 4 5 6 7 8 9 10

Notice, we are

only changing the

schedule.

Actual work

distributions are the

same. If we finish

early, we can capture

the advantage.

With an aggressive schedule,

we take advantage of

serendipitous events

Using MS Project

21

Critical Chain and Risk Management

• Use buffers to reduce risk

• Use relationship between work completed and buffer consumed to measure risk for each chain in the network

• Use buffer management to trigger investigation of problems

• Use results of investigation to plan and implement appropriate action / help needed 22

% B

uff

er

Co

ns

um

ed

% Critical Chain Completed

100

100

0

Low

Risk

High Risk

Medium

Risk

High

Risk

What is Agile?

23

We are uncovering better ways of developing software by doing it

and helping others do it. Through this work we have come to

value:

Individuals and interactions over processes and tools

Working software over comprehensive documentation

Customer collaboration over contract negotiation

Responding to change over following a plan

That is, while there is value in the items on

the right, we value the items on the left more.

http://www.agilemanifesto.org

What is Agile?

24http://method-r.com/papers?download=96:my_case_for_agile

What is Agile NOT

• Some people believe that being Agile means that you don’t write a project specification.

• Some people believe that being Agile means that you don’t do design (for example, that you don’t do data modeling when you’re developing a database application).

• Some people believe that being Agile means that you can skip whatever software development project steps you just don’t like doing.

25

SCRUM

• Scrum is an Agile framework for completing complex projects.

• Scrum originally was formalized for software development projects, but it works well for any complex, innovative scope of work.

26Source: Scrum alliance

What is Scrum

• Self-organizing teams

• Product progresses in a series of “Sprints” (from 1 to 4 weeks)

• Requirements are captured as items in a list of“product backlog”

• No specific engineering practices prescribed

• Uses generative rules to create an agile environment for delivering projects

• One of the “agile processes”

27https://www.mountaingoatsoftware.com/uploads/presentations/Getting-Agile-With-Scrum-Norwegian-Developers-Conference-

2014.pdf

Scrum process


2014.pdf

What is Sprint

• Scrum projects make progress in a series of “sprints”

• Typical duration is 1–4 weeks or a calendar month at most

• A constant duration leads to a better rhythm

• Product is designed, coded, and tested during the sprint

• No changes during a Sprint


2014.pdf

Funny movie: Scrum Master (click on a link)

https://www.youtube.com/watch?v=qKcNlkIHQxA

Scrum Framework

Roles

• Product owner

• Scrum master

• Team

• Product backlog

• Sprint backlog

• Burndown charts

Managing

• Sprint Planning

• Sprint Review

• Sprint Retrospective

• Daily Scrum meeting (15min)


2014.pdf

Artifacts

Sprint and backlog example

31http://blogs.atlassian.com/2013/06/visualize-your-roadmap/

Scrum from different angle

32

Rolling Wave

33

Methodology overview

• Possible Combination of SCRUM in Development with solid project management

• Faster Time to Market

• Customer receives several usable increments

• Faster Value Creation

• Reduction of Risk

• Reduction of peak workloads

• Reporting remains unchanged 34

ROLES AND RESPONSABILITIES IN A PROJECT

35

Roles and responsabilities• Clearly defined and agreed roles and responsibilities ensure

accountability

• and contribute to an effective and efficient project.

• RACI matrix*– Responsible: The person who does the work to achieve the task

– Accountable: The person who is accountable for the correct and thorough completion of the task

– Consulted: The people who provide information for the project and with whom there is two-way communication.

– Informed: The people kept informed of progress and with whom there is one-way communication.

36*https://en.wikipedia.org/wiki/Responsibility_assignment_matrix

Example of project RACI matrix

37*https://www.projectsmart.co.uk/raci-matrix.php

Example of RolesGroup General Roles and Responsibilities

Program Steering Committee • Holds project decision making responsibility• Sets resources and priorities• Handles issue resolution and barrier removal• Participates in bi-weekly updates and key milestone

meetings/takes• follow up action

Executive Sponsor • Champions project importance• Escalates Issues

Risk Management • Monitor and manage program and project risks

Program Management Office • Builds and manages detailed project plan• Coordinates with all stakeholders• Facilitates resource assignment• Develops and delivers status reports/communications

38*Grant Thornton, Dallas IIA Chapter / ISACA N. Texas Chapter Auditing Project Management Controls, 2010


Business Process Redesign Teams • Detail and benchmark current business processes and related

• information flows• Develop new business processes• Report on status and/or issues

Technology Implementation Teams • Identify network, hardware and operating system requirements

• Install and configure hardware infrastructure, network and system

• Develop, install and setup applications• Setup Development, Test and Production

Environment• Migrate environments from Development, Test and to

Production• Report on status and/or issues



Applications Configuration andImplementation Teams

• Develop system applications (modules) based on business process and

• requirements• Install and configure application databases• Provide application expertise and insight/knowledge

sharing• Migrate data from existing applications

Systems Interfaces Team • Design, develop and implement interfaces

Security and Controls Team • Identify and design business and technology controls

Quality and Change Control Team • Reviews Quality Assessment documentation• Review and approve project changes• Work with Executive Sponsor to ensure project

quality


CURRENT REALITY

41

What really matters?

• Has the project satisfied the business requirements of the stakeholders?

• Was it project delivered on time and within budget?

• Do the business owners ‘perceive’ the project to be successful?

• Has the project delivered the business value promised at the beginning?


Executive management, Leadership team, End-users, Internal Audit

How do stakeholders know? Tracking initial baseline?

Initial expectations? Project Charter,Requirements?

ROI, Cost vs. Actual, Cost Tracking,Change Management

How bad can things really be?

43http://www.actuaries.digital/2015/06/04/project-management-skills-your-career/

2015 Standish CHAOS report

– (study of 50.000 software development projects all arround the world)

44https://www.infoq.com/articles/standish-chaos-2015

Current reality


Project Management Office (PMO)

Role

• PMO is department or a group that defines and maintains the standards of process, related to the project management, within a organization

Value proposition

• The PMO is established to manage project management standards in order to minimize risk of project failures

47

Additional Project Facts:

• 32% fail due to inadequate project management

implementation

• 20% fail due to lack of proper communication

• 17% fail due to unfamiliarity and complexity of scope

• 69% fail due to lack and/or improper implementation of

project management methodologies

*Grant Thornton, Dallas IIA Chapter / ISACA N. Texas Chapter Auditing Project Management Controls, 2010

WHY ARE PROJECT LATE?

48

49

Intro to …

• Projects Are:

– Unique

– Dependent on Precedence

– Activities Not Well Known

– Highly Variable

– Share Resources

– Concurrent with Other Projects

– Valued by Scope, Schedule and Cost

50

Undesirable Effects of Projects

• Projects Are:

– Usually Late

– Have Too Many Changes

– Often Over Budget

– Lots of Rework

– Many Priority Battles

– Resources Not Available When Needed

– Jeopardize Scope for Cost or Schedule

51

Due Date Problems

Thanks to Rees Furbeck who prepared

some of these graphics

Meet original

commitments

Bring the

schedule back

on track

Not jeopardize

the original

commitment for

content within

original budget

Trim the content

or take expensive

corrective action

Do not trim the

content or take

expensive

corrective action

Story: When about to miss a due date, we take drastic

actions like compromising on content or pulling in more

resources. The problem is that both these actions

jeopardize the other original commitments, content and

cost

52

Change Problems

Meet original

commitments

Satisfy our

commitment to

provide what our

customers need

Meet the original

commitment for

schedule and

budget

Make changes

during the

project

Do not make

changes

during the

project

Story: We make changes to satisfy the requirements of

our customers. The problem is that these changes

jeopardize the original commitments for schedule and

budget

53

Rework Problems

Meet original

commitments

Meet commitment for

content, even though

our specifications

have changed

Not jeopardize the

original commitments

for budget and

schedule

Do rework

Do not do

rework

Story: In general, we start work on a project before final

specifications are available. This usually means doing

rework when some of our assumptions are incorrect. The

problem is that doing rework jeopardizes the original

commitments for budget and schedule.

54

The Core Problem (Constraint)

Meet original

commitments

Do whatever it takes

to meet an

endangered original

commitment

Not jeopardize any

other original

commitment

Compensate for

early mis-

estimations /

mis-calculations

Not compensate

for early mis-

estimations /

mis-calculations

The original

commitment

is realistic

The safety we are allowed is not

enough to absorb the glitches

Dealing with Variability, Interdependency,Human Behavior

55

Quality and

Scope

Timing and

Schedule

Budgeted

Costs

Bumpy Road of Reality

How a project looks graphically?

What do all of these things represent?

Bar Chart (Gantt View)

Network (PERT View)

56

Initial Critical Path equals longestsequence of task and path dependenciesexclusive of resource dependencies

Projected Lead Time

Traditional (PERT/CPM)

– Mechanisms for building the schedule

Assumption of infinite resource availability before identifying the Critical Path

57

58

The Best Way to Understand Project Problems

• It is hard to examine one project and find a pattern to the problems.– There are too many excuses.

– There is so much variability in tasks that the solution (problem) changes with every look.

• Its better if we could examine the same project executed over and over again to look for trends.– Simulation can do this

– Thru-Put Critical Chain Simulator!– The Thru-Put Critical Chain Simulator is not complete. It is for

evaluation only.

59

Understanding Variability

What is 8 times 8?

8? Or 8±1?What is 8?

64? Are you sure?

So, what is

8±1 times 8±1? Somewhere between

49 and 81!

With 64 being the

most likely.

Before we go to the Simulator…

60

Good Statistics

Variability Adds as the Square Root of the Sum

of the Squares(Central Limit Theorem Variability reduces when combined)

+=

+

Watch Simulation 01

61

Bad Statistics

+=

+

Assembly: If one is

late, they are all late.

Watch Simulation 02

62

Resource Conflict

Watch Simulation 04

Traditional project tasks and schedules

63

Create list of tasks

Project Manager asks,“How much time do you

need to finish task?”

Well…about 5 days

+ I am working on another project

+ I get interrupted a lot

+ Something usually goes wrong

So…10 days!

Look at a real projectSim 5

64

Watch Simulation 05

Commitment

70 Days

Commitment

70 Days

Results of one Simulation Run

65

Commitment

70 Days

Actual

72 Days

66

Results of 1000 Runs

Commitment

70 Days

67

Sim 05 Treats Tasks as Normal Distributions

Task Duration

Distribution for

Activity A1

Theoretical and

Actual Simulation

Data

68

But, Are Project Tasks Normal Activities?

How long did it take you to drive to work this morning?

What is the least time it has ever taken?

What is the most time it has ever taken?

What is the average time to drive to work?

Is the average closer to the shortest?

Is the average closer to the longest?

50% Estimate

85% Estimate

Time ->

Play Sixes Game!

Quick Check on the Beta Distribution

• For an In-Class Exercise, let’s check on the Beta Distribution and it’s relationship to completing tasks that have a high probability of rework.

• How many times do you have to roll a fair die to get a Six?

• Each person in class roll a die (or program Excel “=RANDBETWEEN(1,6) “

• Count the Rolls and record them.

• Repeat the process 10 times.

• When asked, report how many times (out of ten trials) you rolled just once. How many times twice. Three times? And more.

• We will build the Histogram and the see the probable number of rolls to get a six as well as the Cumulative Distribution in-class.

• Yes, we will do it now.

69

How many time we need to rol the dice to get six?

70

In MS Excel,

“=randbetween(1,6)”

and push <F9>

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

.? ? .? .? .? .? .? .? .? .? ? .? . .? .? . . . . . . . . . .

71

Skewed Distribution for Sim 6a

Task Duration

Distribution for

Activity A1

Theoretical and

Actual Simulation

Data

72

Results of 1000 Simulations 6a (skewed)

50% ProbabilityCommitment

70 Days

73

Try Adding Safety time to each Task Scheduling 11 Days per Task


77 Days

Maybe 13 Days per Task would do it?

74


87 Days

Try giving 18 days per Task as a big safety cushion

75


127 Days

76

Getting Better at Hitting our Projections, But...

Normal Task Duration Distribution, 50% Task Estimate Confidence

Skewed Task Duration Distribution, 50% Task Estimate Confidence


75% Task Estimate Confidence


Statistical Summary for PmSim Project Management Simulation

Single Project Results

6d

6c

6a

6b

5

Sim

ula

tio

n

50 150 250 350 450100 200 300 4000

Project Duration

(Days) Rees Furbeck’s

clever graphic

What about 19 days per Task as additional safety cushion

77


154 Days

78

Engineering Optimism

Question: If you have 16 days to to a 10 day

project, when do you start?

Immediately! Or,

After 6 days. Or,

After 10 days (since you know you are faster

than average and can probably do it in 6 days).

Normal level of effort

Assigned Due Date

Student

Syndrome

79

I hate Student Syndrome!

Normal level of effort

Assigned Due Date

Self Imposed Overtime

It wears People out!

And, they think its their own fault!

80

There is another Problem

Question: You fought tooth and nail to get the 16

days you wanted to do the 10 day project. If you

finish in 14 days, will you go around advertising early

completion?

What if you finish in 10 days?

How about 8 days?

Wonder of wonders, 6 days?

Most people report 16 days (75% of people).

This is called Erroneous Reporting of Completion time!

Others call it: Parkinson’s Law--Work expands to fill the

time available

81

Student Syndrome and 75% Erroneous Reporting

Appearance:

Boy are

we Good! We

made our

Due Dates!

Sim 06, 16 days,

only 25% report

early completion

82

A 90% Estimate of this 70 Day Project is: 154 + Days

Normal Task Duration Distribution, 50% Task Estimate Confidence





Add 75% Erroneous Reporting of Task Completions (Parkinson's Law)

Add Student Syndrome



Single Project Results

6e

8a

6d

6c

6a

6b

5

8b

Sim

ula

tio

n

50 150 250 350 450100 200 300 4000

Project Duration

(Days)

83

90% probability, Student Syndrome and 75% Erroneous Reporting

Appearance:

Boy are

we Good! We

made our

Due Dates!

Sim 06, 19 days,

only 25% report

early completion

We need to do more tasks at the same time – Multitasking?

84

Multitasking - game

Your job is to finish three (3) tasks:

1. Write numbers from 1 to 20

2. Write letters from A to O

3. Write square, circle and triangle until

you have 20 objects

Measure time to finish all 3 tasks!

Assumptions:

Execution: 0,5s for one character, safe value

is 1s

Policy to work: ASAP vs ALAP

Task1 Task2 Task3

1 A

2 B

3 C

4 D

5 E

6 F

7 G

8 H

. . .

85

86

90% probability, Student Syndrome and 75% Erroneous Reporting, multitasking

Sim 06, 19 days,

only 25% report

early

completion,

Multitasking

87

Consider Three Individual 70 Day Projects in Parallel!

Simulation 9a

Multi-Project

Student Syndrome

75% Erroneous

Reporting,

90% Estimate

88

Rather than delaying, try Alternating

Task 1

My Assignments

Task 2 Task 3

10 days 10 days 10 days

Task 1 Task 2 Task 3 Task 1 Task 2 Task 3

5 days 5 days 5 days 5 days 5 days 5 days

Everything

Takes Twice as

Long!!!!!!!!!!

89

I Hate Multi-Tasking Even More!

90

I Hate Multi-Tasking Even More!

91

Painful Results!

3 Projects

3 Projects

Normal Distribution, 50% Task Estimate Confidence

Skewed Distribution, 50% Task Estimate Confidence







Add Multi-Project, Shared Resource (Queues)

Add Multi-Tasking

50 150 250 350 450100 200 300 4000


6e

8a

6d

6c

6a

6b

5

8b

9a

9b

Would you like to know elementsof the solution?

92

93

The CCPM Solution to Project Management Scheduling

• The last session was pretty depressing

– Project Structure is a problem.

– Task Variability is a worst problem.

– Human Behavior (as a result of attempting to deal with structure and variability)-Ahhh!

• Result, a single project planned for 70 days stretches to 160 days!

• Three 70 day concurrent projects exceed 350 days!

94

We have Maxed Out!

• “We are caught in a vicious cycle which leads us to inflate our estimates and press for more people, just to see the completion dates of our projects slipping more and more into the future ...

• “... until the time to do the project becomes so long or the compromises on the content become so large that the clients tell us, “If that’s the case we’ll go elsewhere !”

Eli Goldratt

95

What are the elements of the Solution?

• Step 1. Find the Constraint: The Critical Chain

• Step 2. Decide how to Exploit the Constraint:Expedite Critical Chain Tasks

• Step 3. Subordinate to the ConstraintsYield Resources to CC TasksComplete Feeding Tasks Early

• Step 4. Elevate the Constraint:Off-Load CC (change schedule/resources)

• Step 5. Warning! Avoid Inertia (get better and better).

96

What are the elements of the Solution?

• It makes no sense to intentionally schedule conflicts.

• Prioritize the work. Aggressively work the priorities.

• Stagger the release of work

(Remember the Job Shop Game)

• Provide Buffers Where They Count

• Communicate what is important to those who can make a difference

• How?

97

Multi-Project Simulation 9c

Red is the Tightest

Scheduled Resource

98

1. Prioritize - Stagger Projects

Stagger based on

de-conflicting

Red Resources

(others may conflict

between projects)

99

Staggering helps a bitbut there is still Multi-Tasking

First Project Median 169

Second Project Median 219

(total time 323)

Third Project Median 235

(total time 367)

100

Maybe we need to do this by fixing each project, one project at

a time!Lets look at the single

Project CCPM Solution

for a few minutes before

we return to the Multi-

Project

Critical Path vs. Critical Chain

• Critical Path:– Defined as the longest chain of activities in a project. This, by definition, ignores any

resource limitations. It assumes that there are no resource issues within the project.

101Source: http://alexrogoventures.wordpress.com/2011/06/06/project-management-transitioning-from-critical-path-to-critical-chain/

• Critical Chain: Defined as the longest chain of dependent events – considering both activity and

resource dependencies.

• What do these factors do to a project (usually)?

– Resources focus on task “due dates”;

– Student Syndrome -> Late starts: start working on a task at the last possible moment before a deadline;

– Parkinson’s Law (Erroneous reporting) -> Work expands to fill the time as it was estimated; and

– Resources usually multitask.

Traditional project tasks and schedules

Create list of tasks

Project Manager asks,“How much time do you

need to finish task?”

Well…about 5 days

+ I am working on another project

+ I get interrupted a lot

+ Something usually goes wrong

So…10 days!

102

Creating the Plan / Sequence / Schedule

• It is important to have a project schedule to start a CCPM Sequence.

• But, it’s very difficult to develop a project schedule

– Establishing Sequence among unknowns

– Predicting Precedence when it’s the first time.

– Need much, much more information (not there)

– Some processes are not even defined

• Most people are reluctant to create a project schedule because if they do, they will be held to it. And, with all the variability in projects, there will be changes. There is really no way to win if you create a plan. At least not before CCPM. 103

104

Still you need a schedule• How can you apply all the good Critical Chain

Techniques to nothing?– (You can do a lot, but that’s for later discussions)

• Make simplifying assumptions

– Schedule in weeks or months and not hours or days

– Limit the number of activities (30-80 is adequate for most everything) for the whole project

– Step back and take the big picture. What big block goes first? Then, what blocks follow that? How do you end? Where are the parallel blocks to go? Patch together some precedence relationships between the blocks.

A Critical Chain

Schedule is an

overall

Management

plan. It is not a

detailed, micro-

management of

every task.

Scheduling

blocks of

activities

aggregates

variability within

the block and

gives better

overall

management of

the system as a

whole.

105

Bad Looking Project Plans

106

There are Some Big Problems in Big Projects

• Some people will take half the project time trying to get the PERT diagram down and exact (they have fear to start). You need a plan, but remember, changes are normal. So, get together a ‘feasible’ plan, then START. Changes are normal.

• Some people don’t build a network at all. They just jump in and go. They feel they have done the work so many times, they don’t need a plan (seat of pants method). Think of what can happen. This is almost as bad as the overworked plan.

• Too many people build a detailed PERT and throw it away in weeks (changes occur faster than they can up date the plan)

• A few succeed in micro-managing the plan by CHANGING THE PLAN DAILY and adjusting for every little change (over kill).

• The under the table project managers will build a PERT and keep it hidden or show it only to a few trusted employees (Hide and seek management)

107

TOC Scheduling Techniques: How To...

• Rough together an outline of the project

• Eyeball or use Intuition on Task Estimates

• Recognize those FEW limiting elements (Strategic Resources)

• Find the few long paths through the network by observation

• Challenge the precedence along the longer paths to make sure. “DO THEY HAVE TO EXIST?”

–Why can’t I do this thing earlier? Later? In Parallel?

–Is there really ‘precedence relationship’ or is that just how we have always done it?

–Is there no other way?Can’t some other resource do this work?

Once We Have a Rough Plan …

• The rough plan includes most major activities and their precedence relationships

• Keep the number of tasks few (max of 30-100). The PERT diagram will be changed to a CCPM plan soon. The plan will be used to manage the project NOT THE DAILY ACTIVITIES!

• The task duration times are estimated (ball park).

• The few long paths through the network are examined and challenged (don’t forget this--great source of rapid improvement for almost no cost).

• We are ready to start. 108

109

Wide Band Receiver Project (Taken from Project Management in the Fast Lane,

Rob Newbold, P81)

P2

P3

E1 P1 T1 PE1 T3 PE2

E2 T2

PE3

Create the Rough-Cut Plan

Task names and size

relative to duration with

connection arrows.

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Resources P and E work together on

tasks PE1, PE2 and PE3.

Expected Duration 36 Months

110

Resources Noted

P2

P3

E1 P1 T1 PE1 T3 PE2

E2 T2

PE3

Color Coded for Resources

Identify the resources

involved in each of the

tasks. Here, they are

color coded

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E

P

T

111

Take an aggressive Schedule

Mode (most common)

Median (50% below)

Mean (centroid)

0 10 20

Prob 85% below

We have talked about the problems with the Student Syndrome (start late), and

Parkinson's Law (work expands to fill the time available). To combat these

behavioral impacts, we need to take an aggressive schedule.

This is a SCHEDULE only. We are not taking away work time or expecting the

worker to cut corners or work differently. We just want the work to start when it is

supposed to start and be reported as soon as it is done (done is when it is “good

enough”). We want our workers to “Do their best!”

Safe Estimate

CC

Estimate

112

Traditional Safe Estimate

P2

P3

E1 P1 T1 PE1 T3 PE2

E2 T2

PE3

Safe

Estimate

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113

Critical Chain Estimate

P2

P3

E1 P1 T1 PE1 T3 PE2

E2 T2

PE3

Critical Chain Estimate

(Activity Times cut in

half for Scheduling

Purposes Only)

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114

I’ll stretch out the Time Line so we have more room to talk about this project.

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P2

P3

E1 P1 T1 PE1 T3 PE2

E2 T2

PE3

Remember, activity estimates have be

estimated at 50% probability of

completion

Cutting activity times sounds like you are telling people we don’t believe them

or they are not important or forcing them to work overtime for free or we are

turning up the heat! This is not what we want. We want people to do their best

and not feel under the gun. We want people to work effectively on the things

that are important. So, you need to be careful how you communicate your

abbreviated schedule.

Let’s take advantage of good statistics. If we finish early, we can move on to the next

task. Don’t waste Safety Allocated.

115

1 2 3 4 5 6 7 8 9 10


Buffer

Before: 85% Estimate

Due Date


Due Date

Buffer

After: 50% Estimate

1 2 3 4 5 6 7 8 9 10

Notice, we are

only changing the

schedule.

Actual work

distributions are the

same. If we finish

early, we can capture

the advantage.

With an aggressive schedule,

we take advantage of

serendipitous events

Communicating a 50% Task Duration

•Let me see if I can help.

Boss: Joe, I see you have estimated ten days to do this task. Is that a good estimate?

Joe: Yes, you know how hard it is and we have taken even longer than 10 days sometimes in the past. But, I think I can do it.

Boss: Thanks Joe, we appreciate your good work. You know this is an important project for us and we want to finish it as soon as possible. But, your task is important task too. We can’t do without it. And, it needs to be done right or it will create problems down the line. In fact, your task is so important that I want Bill who will do the task right after you to be ready in advance so we can take advantage of your work as soon as you finish.

Boss: So, I’m going to put on the project schedule that your task will only take 5 days. That will make sure Bill is ready to take the hand-off. I don’t expect you to guarantee you will be finished in five days. There is a good chance it will take longer than 5 days. I know it could even take 15 days. But, I want everyone else to be ready to move the project on as soon as you are complete.

Boss: So, do your best! We will have everything ready for you before your start. Let us know the moment your task is complete. At the daily update, tell us how many days are remaining on the task. Tell us if any body or any thing is holding you up. If you need anything, we are here to help.

116

117

Schedule and Resource View

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P2P3

E1 P1 T1 PE1 T3 PE2

E2 T2

PE3

Schedule View

Resource View

P2 P3

E1

P1

T1

PE1

T3

PE2E2

T2

PE3

P

E

T

Note: Only

one

each of P,E,T

Resource. So

Resource P

has worst

Conflict.

E and T have

minor conflict.

PE1 PE2 PE3

We can break the schedule into its component parts-

Schedule and resources

118

Leveling ResourcesRight to left

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Schedule View

Right Side

Starting

PointResource View

PE3

PE3

PE3

Work Preceding: E1,P1,T1,PE1,T3,PE2=13

Now, we start to schedule from Right to Left (start at end-last possible

point) Inserting new task from right to left as you go (one at a time).

119

Leveling ResourcesRight to left

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Schedule View

Right Side

Starting

PointResource View

PE3

PE3

PE2

PE2

PE2 PE3

Now, we start to schedule from Right to Left (start at end-last possible

point) Inserting new task from right to left as you go (one at a time).

Work Preceding: E1,P1,T1,PE1,T3=11

120

Priority Scheduling

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Schedule View

Right Side

Starting

PointResource View

PE2 PE3

PE2 PE3

PE2 PE3

Continuing to schedule from Right to Left pushing lower priority work

to the left.

Work Preceding: None=0 P3

P3


121

Priority Scheduling

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Schedule View

Right Side

Starting

PointResource View

PE2 PE3

PE2 PE3

PE2 PE3

Continuing to schedule from Right to Left pushing lower priority work to the left.

P3

P3


Pushing Back P3

122

Priority Scheduling

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Schedule View

Right Side

Starting

PointResource View

PE2 PE3

PE2 PE3

PE2 PE3

No Problem with T3

T3

T3


P3

P3

123

Priority Scheduling

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Schedule View

Right Side

Starting

PointResource View

PE2 PE3

PE2 PE3

PE2 PE3

Work Preceding: E1,P1,T1=8 PE1 T3

PE1

T3

PE1


P3

P3

Work Preceding: None=0

124

Priority Scheduling

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Schedule View

Right Side

Starting

PointResource View

PE2 PE3

PE2 PE3

PE2 PE3

Work Preceding: E1,P1,T1=8 PE1 T3

PE1

T3

PE1

Decision: Again, PE1 has

Higher Priority,

than P3. Push P3 Earlier in time

P3

P3


125

Are You Starting to Worry about Sequence?There are two ways to arrange this sequence.

A

B

D

A

B

C

D

Which is better?

Depends upon

the Critical Chain

Which path would you like

to have on the Critical

Chain? Often you have a

choice. Remember, the

Critical Chain will receive

special treatment. Do you

want it or want to stay

away from it?

Take a simple case were A must precede C and B must precede D. Tasks A and B are

performed by the same resource. Which should go first? A or B?

C

126

Priority Scheduling

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Right Side

Starting

PointResource View

PE2 PE3

PE2 PE3

PE2 PE3


PE1 T3

PE1

T3

PE1

P3

P3


P2

P2


If work proceeding is equal, push back

the earliest finish.

Then, if equal ending, push back

shortest.

127

Priority Scheduling

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Schedule View

Right Side

Starting

PointResource View

PE2 PE3

PE2 PE3

PE2 PE3

PE1 T3

PE1

T3

PE1


P2

P2

Pushing Back P2

P3

P3

128

Priority Scheduling

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Schedule View

Right Side

Starting

PointResource View

PE2 PE3

PE2 PE3

PE2 PE3

Work Preceding: E1,P1=6 PE1 T3

PE1

T3

PE1


T1

T2

T1

T2

Work Preceding: E2=4

Decision: Push back T2

P2

P2

P3

P3

129

Priority Scheduling

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Schedule View

Right Side

Starting

PointResource View

PE2 PE3

PE2 PE3

PE2 PE3

PE1 T3

PE1

T3

PE1


T1

T2

T1

T2

Pushing back T2

P2

P2

P3

P3

130

Priority Scheduling

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Resource View

PE2 PE3

PE2 PE3

PE2 PE3

PE1 T3

PE1

T3

PE1


T1

T2

T1T2

P1

P1

P1 Conflicts with P2 and

P3. Push Back P2 & P3.


Work Preceding: None=0 P2

P2

P3

P3

Work Preceding: E1=2

131

Priority Scheduling

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Resource View

PE2 PE3

PE2 PE3

PE2 PE3

PE1 T3

PE1

T3

PE1


T1

T2

T1T2

P1

P1

Pushing Back P1 & P2.

P2

P2 P3

P3

132

Priority Scheduling

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Resource View

PE2 PE3

PE2 PE3

PE2 PE3

PE1 T3

PE1

T3

PE1


T1

T2

T1T2

P1

P1

P2

P2 P3

P3

E2

E2

133

Priority Scheduling

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Resource View

PE2 PE3

PE2 PE3

PE2 PE3

PE1 T3

PE1

T3

PE1


T1

T2

T1T2

P1

P1

P2

P2 P3

P3

E2

E2

E1

E1Precd: None=0

Precd: None=0

E1 Conflicts with E2

Push Back E1.

134

Priority Scheduling

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Resource View

PE2 PE3

PE2 PE3

PE2 PE3

PE1 T3

PE1

T3

PE1


T1

T2

T1T2

P1

P1

P2

P2 P3

P3

E2

E2E1

E1

Pushing Back E1.

135

Leveled Load

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P2

P3

E1 P1 T1 PE1 T3 PE2

E2 T2

PE3

Resource View

P2 P3

E1

P1

T1

PE1

T3

PE2E2

T2

PE3

P

E

T

PE1 PE2 PE3

Here we have all the tasks sequenced without any conflicts. So, what is

the Critical Chain? (The longest path with resources considered?)

136

Select the Critical Chain(Latest Start)As shown, this schedule would be called a Latest Start Schedule. We squeezed

everything from right moving lower priority work to the left.

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P2

P3

E1 P1 T1 PE1 T3 PE2

E2 T2

PE3

Resource View

P2 P3

E1

P1

T1

PE1

T3

PE2E2

T2

PE3

PE1 PE2 PE3P

E

T

137

Buffer Locations (Project Buffer)

PB

Now, let’s consider where the important buffer locations will be!

First for the project.

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P2

P3

E1 P1 T1 PE1 T3 PE2

E2 T2

PE3

Resource View

P2 P3

E1

P1

T1

PE1

T3

PE2E2

T2

PE3

PE1 PE2 PE3P

E

T

138

Buffer Locations (Feeding Buffers)

PB

Where are feeding sub projects, those that could delay the Critical

Chain tasks if the sub project was late? We need feeder buffers there.

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P2

P3

E1 P1 T1 PE1 T3 PE2

E2 T2

PE3

Resource View

P2 P3

E1

P1

T1

PE1

T3

PE2E2

T2

PE3

PE1 PE2 PE3P

E

T

FBFB FB

139

Identify Buffer Locations(Resource Buffers)

At what point do we need to notify resources that they will soon be needed

by a Critical Chain task? (Only use resource buffers for the Critical Chain).

PB

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P2

P3

E1 P1 T1 PE1 T3 PE2

E2 T2

PE3

Resource View

P2 P3

E1

P1

T1

PE1

T3

PE2E2

T2

PE3

PE1 PE2 PE3P

E

T

FBFB FB

140

Deciding on Buffer Size

• Project Buffer should protect the completion of the project (90-95%%)

– Be paranoid but not hysterical

• Feeding Buffer should encourage non-critical twigs (parallel paths) to be complete in advance of when needed (90%) and allow the Critical Chain to start early, if the Critical Chain is ahead of schedule

• Resource Buffers—These are the wake-up calls, “Be ready. It’s almost your turn to carry the Baton!”

144

Buffer LocationsLet’s Insert the Buffers. First the Project Buffer (it extends past the

end of the page.)

PB

PB

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P2

P3

E1 P1 T1 PE1 T3 PE2

E2 T2

PE3

Resource View

P2 P3

E1

P1

T1

PE1

T3

PE2E2

T2

PE3

PE1 PE2 PE3P

E

T

FBFB FB

145

Buffer LocationsNext the Buffer for P3.

PB

FB PB

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P2

P3

E1 P1 T1 PE1 T3 PE2

E2 T2

PE3

Resource View

P2 P3

E1

P1

T1

PE1

T3

PE2E2

T2

PE3

PE1 PE2 PE3P

E

T

FBFB FB

146

Buffer LocationsNext the Buffer for P2. Note that for P2 and P3 the buffers are much

smaller than the push back time-the time needed to resolve the P

resource conflicts.

FB PB

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P2

P3

E1 P1 T1 PE1 T3 PE2

E2 T2

PE3

Resource View

P2 P3

E1

P1

T1

PE1

T3

PE2E2

T2

PE3

PE1 PE2 PE3P

E

T

FBFB

FB

PB

147

Buffer LocationsBut as we insert the buffer for P1, we see we must move P1 and P2

back further in time. The size of the P1 Buffer only protects against

variability in P1.

FB PB

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P2

P3

E1 P1 T1 PE1 T3 PE2

E2 T2

PE3

P2 P3

E1

P1

T1

PE1

T3

PE2E2

T2

PE3

PE1 PE2 PE3

FBFB FB

PB

148

Buffer LocationsBut as we insert the buffer for P1, we see we must move P1 and P2 back further

in time. The size of the P1 Buffer only protects against variability in P1.

FB PB

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P2

P3

E1 P1 T1 PE1 T3 PE2

E2 T2

PE3

P2 P3

E1

P1

T1

PE1

T3

PE2E2

T2

PE3

PE1 PE2 PE3

FB

FB PB

149

Final Project

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Schedule View

Resource View

7/98 1/99

Here is the final rescheduled project with Project Buffer, Feeder Buffers

and Resource Buffers correctly placed.

Note: The original duration of this final project was 36 months shown on slide 13. With the reduced Task durations, the Crit ical

Chain is now18 months. The Project Buffer is 9 months. However, inserting the Feeder Buffer before T1 pushed back P1, P2 and

P3 to before the start of the critical chain; need to start the Feeder Activity P2 two months before the Critical Chain Tasks. So, the

project durattion is actually 29 months. Yes, this is an acceptable schedule; don’t be shocked. This is how the crude

alogrithm used for in-class illustration scheduled the CCPM Project. We will examine other better algorithms later. (Perhaps you

could create a better algorithm?) But in such highly variable systems, the algorithm has less impact on the Schedule than taking

the correct CCPM Steps: 1. Aggressive Task Durations (50%), 2. 50% Buffers, 3. Communicating “Time Remaing” and 4. Buffer

Management. With CCPM, we can complete the 36 month project in 29 months or less with 95% reliability. That is what is

important. Don’t try to optimize chaos. (Hum? What would be the Buffer Status if we started P2 at the same time as E1?) Dr Holt.

FBP2

P3

E1 P1 T1 PE1 T3 PE2

E2 T2

PE3

P2 P3

E1

P1

T1

PE1

T3

PE2E2

T2

PE3

PE1 PE2 PE3

FB

FB PB

//

//

Scheduling Multi-Projects

152

153

Now, let’s look at Multi Project

• We Schedule Each Project individually according to Critical Chain Project Management.

• We stagger the projects according to a selected strategic drum (resources)

• We include a buffer between projects (on the drum)

• All Estimates are at 50%. Use Buffer Management to prioritize resource allocation.

154

Methods to approach Multi-Project Scheduling

• Option 1:

• Could load all projects into Critical Chain Software, and run the schedule (total blend of all resources).

– Considers all projects as one project.

– Push the button to Remove all resource contention.

– Inserts one Project Buffer and many feeder buffers.

• Would that work?

155


• Option 2.

• We could run each project as a top priority, sequentially (hot and fast turns).

• Would allow only one project at a time.

– Would focus all energy on the active tasks.

– One project Buffer (with some Feeder Buffers)

– There may some conflict within a project, but not between projects.


156


• Option 3.

• We could stagger the release based upon some strategic capability (can be virtual)

– Allow overlapping projects

– Many Project Buffers (with own Feeder Buffers)

– There would unavoidably be some conflict between resources in and between projects.


The Method for Multi-Project Scheduling

• 1. Schedule Individual Project By Critical Chain.

• 2. Sequence Projects to: Allow “Appropriate Overlap of Projects”

– Hum? What is “Appropriate”?

– Determine the limiting resources and DON’T Over Schedule it (100% Buffer).

– Some other resource contention between projects is sure to happen.

– Hum? How to deal with additional contention?

– Do the same with Between projects as Within projects: Use Buffer Management.

157

158

Scheduling Multi ProjectsStep 1.

• Create Critical Chain Schedules for Each Individual Project

– A. Select the Critical Chain: the critical area where any deviation causes damage to the objective.

– B. Buffer to protect from disruption – Project Buffer for the whole and Feeder Buffers to protect from disruptions in non-critical areas.

– C. Choke the release – Start tasks as late as possible according to buffer size.

• This is a major reduction in the complexity of dealing with multi-projects.

• Typically, organizations attempt to optimize the whole system at once.

– While this is possible now with massive computing power, the solution is obsolete as soon as it’s fabricated. Too much change.

– It is much better to have individual Critical Chain Projects, correctly buffered with aggressive schedules and then to sequence the work correctly

159

Scheduling Multi ProjectsStep 2.

• Choose a Drum Resource (or resources)

– Check Loading over several (all) projects

– Select the Drum based upon corporate strategy• May not be most heavily loaded

– The Drum acts as the Controlling function • Determines release

• Determines spacing

• Determines Income Generation Rate

• The Strategic Drum Decision is as important and critical in Multi-Project Management as the Constraint Resource is in a production line.

160

Scheduling Multi ProjectsStep 3

• Set Priorities for Individual Projects

– Priorities based upon Value/Time (Octane) or Flush of the project

– Priorities based on external customer demand

– Priorities set by required delivery date• (Critical Ratio comes to play

[Due Date-Now]/[remaining Critical Path Length])

• Level Load the Drum (the strategic resource)

– Include Drum Buffer

• Buffer between the Drum Activities

• Start with a ‘Liberal’ Drum Buffer--up to 100% of activity time. Drum has variability too! Don’t want to shift a lot of project deliveries because of a minor Drum problem.

161

Insert Project and Feeder BuffersStagger Projects w/ Drum Buffer

Buffer Between Projects Too

162

Aggressive Scheduling Without Buffer Management

Without the communications of Buffer Management we are caught up in random

Bad Multi-Tasking.

Buffer Management: “Which Task is causing the most penetration to the Project

Buffer? Which Task is causing the most penetration of the Feeder Buffers?”

Adding Buffer Management allows tasks to responding to the Tasks that have the

highest priority eliminates most Bad Multi Tasking, and reduces delays.

Adding Buffer management What is Buffer?

• Mechanism to protect the system against variability and delay (in the chain feeding the Constraint)

• The size of the buffer is measured– as time; and

– as number of parts.

• Different types of Buffers– Raw material buffer

– Buffer in front of Constraint (Constraint buffer)

– Finish goods buffer

– ...163

164

Managing the Buffer

• Why– To protect the system throughput without adding more

inventory (usually leads to reduction of inventory)

– To serve as warning system that detects problems in the process -> gives right priority to treat problem

– to help planning and control of inventory

RM

Constraint

Buffer Time

165

Monitoring the Buffer and gap analysis

• We can divide the buffer into three (equal) sized zones:– Green

– Yellow

– Red

RM

Constraint

Buffer Time

Green:

-no action required

-follow the schedule

Yellow:

-monitor

-If problem discovered,

plan an intervention

Red:

- identify and solve

problems

- act NOW!

166

Buffer management as Warning system

• Let’s look the flow through the processBuffer Time

RM

Constraint

1 1 1

Day 1

Buffer = 6 days

•No shortage of material identified (release day)

167



RM

Constraint

1 1 1

Day 2

Buffer = 6 days

•Potential shortage of materials identified, but no immediate action required.

168



RM

Constraint

1 1 1

Day 3

Buffer = 6 days

•Shortage of materials identified

•Examine causes for delay and identify how to correct the disruption.

169



RM

Constraint

1 1 1

Day 4

Buffer = 6 days

•Shortage of materials demands immediate expediting!

•Act NOW!!!

170



RM

Constraint

1 1 1

Day 5

Buffer = 6 days

•Recovery was successful.

•Causes for disruption were identified

• Analysis started (Pareto chart) to identify possible correction actions

171



RM

Constraint

1 1 1

Day 6

Buffer = 6 days

•We manage to recover from disruption!

172

Another view of Buffer Fever chart

Follow the Schecdule

Identify andSolve Problems

100

Time

% B

uffer

pene

tration

Monitor

173

So, what about Buffers?

• The are critical.

• They are not optional.

• They are integrated with the Constraint and the Rope.

• Buffers are the KEY MANAGEMENT TOOL for DBR.

• Buffers help us overcome bad Statistics, terrible Interdependency, and common Human Behavior.

174

“Adding Buffer Management”

The Purple Resource starts on the bottom task because the middle Yellow

task is taking so long. When it is time to start the middle Purple task, Purple

Resource switches (even though there is only a tiny bit of the bottom Purple

Task remaining) to the middle purple task. Only when the middle Purple

Task is complete, the Purple Resource returns to the Bottom Purple Task.

Why? Because the Green Task followed the middle Purple Task and the late

middle Purple Task caused greater buffer incursion.

175

Another Good Buffer Management Examples

Long Durations Green and Light Purple

Delays Dark Purple

Dark Purple Starts, then Shifts to Higher

Priority Dark Purple above, then Back

Green Delays Red

Buffer Management Shifts

Red to Task Causing the most

Buffer Penetration.

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Result with 50% schedule and Buffers

First Project Median 96

90%@110

Expected

Second Project Median 180

90%@210

Expected

Third Project Median 216

90%@245

Expected

3 Projects

3 Projects

Normal Distribution, 50% Task Estimate Confidence








Add Multi-Project, Shared Resource (Queues)

Add Multi-Tasking

Prioritize Projects,

Schedule Drum

Use Critical Chain Schedules and Buffer Management,

Reduce Erroneous Reporting of Task Completions to 50%

50 150 250 350 450100 200 300 4000


R. Furbeck 5/11/00

6e

8a

6d

6c

6a

6b

5

8b

9a

9b

9c

9d

9e

Eliminate Bad Multi-Tasking

Notice: All Three 70

day project completed

in 240 days.

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Keys to Successful implementation

• Need support from the top management;

• All key team members must be trained and work together in preparing the project schedule;

• Management must not force resources to multitask;

• How team members are evaluated– Team is evaluated based on project completion success; and

– Individual task completion due dates and milestones must be (slowly) removed to avoid sub optimization.

• Need very clear communication between all involved resources (scheduling and resources involved in tasks).

178

179

Bottom Line

• There is lots to gain

• Particularly in Multi Project Environments

• Single Projects 20% reduction

• Multi Projects 50% reduction

“The bottleneck is at the top of the bottle...

AND ...

Your focus Determines Your Reality”*

*by Alan Bernard:

Can you improve performance, if you change policy how you work, measurements?

180

Traditional Way of managing projects

Performance: ~24 seconds for 1.5 liter

~ 3.75 liter / minute

* Theory of Constraints (TOC) 3 Bottle Oiled Wheels Demonstration by Arrie van Niekerk

181

Agile project management


~ 9 liters / minute


182

Project management using TOC tools and applications


~ 15 liters / minute


183

Comparison


184

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