CCPM using ms project 2010 and prochain implementing ppm

1997

Session Objective

Centralized

Demand

Management

inventory

Capacity

Planning

Portfolio

Selection

Benefits

Realization

Our Project Portfolio Management Capability Status

Demand Management Portfolio Selection Portfolio Tracking & Status

Portfolio Reporting

Capacity Planning

Resource Planning & Tracking

Project Scheduling

Project Tracking, & Status

Task/Time Reporting

Benefits Realization

Financial Planning Financial Tracking

Legend

Capability implemented

Capability implemented but limited

Capability not implemented

Demand

Mgt

Portfolio

Selection

Portfolio

Track &

Status

Portfolio

Report

Capacity

Planning

Resource

Planning &

Tracking

Financial

Planning

Financial

Tracking

Benefit

Realization

Proj.

Scheduling

Proj

Track &

Status

Task &

Time

Report

Capability

Status

Process

&SequencePRB process PM Frame Budget PM Frame. PM

Frame

PM

Frame.

Process State CIL CNI CIL CIL CNI CIL CI CIL CNI CI CI CI

Process

Assessment

Supporting

ApplicationExcel Excel Excel,

MSPS

Excel,

MSPS

SSRS

Excel Excel

MSPS

Excel Excel

Elite

MSPS

MSPS MSPS

SSRS

MSPS

SSRS

Application Status CNI CNI CIL CIL CNI CIL CI CIL CNI CI CI CIL

Application

Assessment

Legend

Fully Supporting Capability

Needs improvement or enhancement

Failure to support capability

Process State

CI = Capability implemented

CIL = Capability implemented but limited

CNI = Capability not implemented

Application State

CI = Capability implemented

CIL = Capability implemented but limited

CNI = Capability not implemented

Bottlenecks

Resource

Constraints

Organizational Core Issues

Theory of Constraint: Critical Chain Process

Network

Building

Critical Chain

SchedulingBuffer Sizing

SynchronizationBuffer

ManagementResource

Management

The Difference between the WBS and Project Network

Building the IT Portfolio

Capability Processes and

Deliverables

WBS

1.0 Game Plan 3.0 Creating 4.0 Assessing 6.0 Communicating8.0 Assessing

Execution

7.0 Governance &

Organization2.0 Planning 5.0 Balancing

1.1 Baseline

Assessment

1.2 Define

Objectives

1.3 Define Process

Metrics

1.4 Documents the

Portfolio Game

Plan

(Charter)

2.1 Plan

Investment

Strategy

2.2 Plan Portfolio

Structure

2.3 Plan individual

subportfolios

3.1 Populate

portfolio

3.2 Identify

expected risks &

results

3.3 Define metrics

3.4 Build Portfolio

Views

4.1 Monitor for

triggers

4.2 Measure

Portfolio

4.3 Compare

Measures against

Targets

5.1 Identify tuning

options

5.2 Determine

Trade-offs

5.3 Select/approve

portfolio changes

5.4 Implement

changes

6.1 Identify

Stakeholders

6.2 Create

Communication

Packages

6.3 Deliver

communications

7.1 Manage

Portfolio Policies

7.2 Integrate

business

processes

7.3 Monitor

compliance

triggers

7.4 Create/

maintain

governance

processes

7.5 Establish

Organization

8.1 Assess

program execution

8.2 Perform

assessment

comparison

8.3 Assessment &

execution report

2.4 Demand

Management

2.5 Resource

Management

2.6 Financial

Management

2.8 Documentation2.7 Methodology2.9 Capacity

Planning

3.5 Solution

Implementation

6.4 Training

6.5 Portfolio

Reporting

7.6 Portfolio

Selection &

Governance

8.4 Benefits

Realization

4.4 Portfolio &

Financial Tracking

Critical Path vs. Critical Chain Project Management

The algorithms in critical path vs. the critical chain are

radically different.

CPM 1910 to 1950 CCPM 1997

Accurate Estimating is a Paradox

Task variability is a fact of life.

Putting on a pair of Levis

Putting on a pair of Levis you owned in High School

Putting on Sweats

• Rule of Thumb

• 32.5 days

• Square Root of the Sum of the Squares

• 100 + 400 + 100 + 100 + 225 = 925 (30.41)

• What are our options if the buffer is to small and how do

we know?

What is Buffer Management?

100%

OK 67%

Plan 33%

Act

Task variability is protected by aggregated buffers

Aggregated Buffers Saves Time and Money

Resource Histogram – Individual Capacity and Demand

CCPM requires Project Synchronization and Staggering

Reducing the number projects in the system and focusing on the

critical few will deliver more projects faster creating velocity

25

Demand

Mgt

Portfolio

Selection

Portfolio

Track &

Status

Portfolio

Report

Capacity

Planning

Resource

Planning &

Tracking

Financial

Planning

Financial

Tracking

Benefit

Realization

Proj.

Scheduling

Proj

Track &

Status

Task &

Time

Report

Capability

Status

Process

&SequencePRB process PM Frame Budget PM Frame. PM

Frame

PM

Frame.

Process State CI CI CI CI CI CIL CI CIL CIL CI CI CI

Process

Assessment

Supporting

ApplicationMSPS MSPS Excel

Services,

MSPS

Excel

Services,

MSPS

SSRS

MSPS MSPS MSPS

PFS

Excel

Excel

Elite

PFS

MSPS

MSPS MSPS MSPS

SSRS

MSPS

SSRS

Application Status CI CI CI CI CI CIL CI CIL CIL CI CI CI

Application

Assessment

Legend

Fully Supporting Capability

Needs improvement or enhancement

Failure to support capability

Process State

CI = Capability implemented

CIL = Capability implemented but limited

CNI = Capability not implemented

Application State

CI = Capability implemented

CIL = Capability implemented but limited

CNI = Capability not implemented

Force in/out projects

Change total cost constraint and click “Recalculate” to view the what if scenario and results

Unselected projects

Project Description High level summary

Cost Benefits

Analysts

Total Benefits = $$$,$$$

Total Investment = $$$, $$$

Discount Rate = 7%

Payback Period = 4 Yrs

NPV= $xxx,xxxx

Discount ROI = xx%

Cost /Benefits Payback by Project

$-

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

Years$$

Expected Benefits $50.00 $100.00 $350.00 $700.00 $1,150.00

Expected Investments $110.00 $460.00 $635.00 $710.00 $735.00

Actual Benefits $25.00 $100.00 $200.00 $350.00

Actual Investments $150.00 $550.00 $660.00 $685.00

1 2 3 4 5

Benefit Assumptions Benefit Status

• Assumption 1

• Assumption 2

• Assumption 3

• Hard Benefits:

• Soft Benefits:

• Strategic Benefits:

Aligning Behavior to increase our execution velocity

What we want What we don’t want

Balancing workload with the organizations

capacity to deliver.

Starting more projects than the organization has

the capacity to handle.

Focus on managing the project buffer and buffer

consumption. (Proactive management)

Firefighting to deliver projects on time, on budget

and within scope. (reactive management)

Understanding that variability exist and manage it

using aggregated buffers.

Padding each tasks to deliver projects on time.

Project will take longer and longer to complete.

Team Member Relay Runner Model Process Violating task or project dependencies to keep

people busy

Project Managers and Resource Managers working

closer together

Project Managers fighting over resources

How can you implement this process in your environment?

Recognize the need for a new way to manage projects in a resource constrained environment.

Obtain agreement on the core problems managing projects with constrained resources.

Gain buy in and acceptance on CCPM from Senior Management

Treat the implementation of CCPM as a project.

Provide training and education on the benefits of CCPM

Develop the internal technical capability to manage CCPM projects

Develop a phased rollout approach

Evaluate results and conduct lessons learned

Summary What did we learn?

Critical Path Management was developed by the DOD using unlimited resources.

Critical Chain Project Management accounts for the reality that all task have variability and

that resources are limited.

Buffer Management provides a calculated leading indicator that provides an early warning if

projects are trending to slip.

In addition, you learned:

The Differences between CCPM vs. Critical Path

The core issues Theory of Constraints CCPM must resolve?

The Difference between the WBS and Project Network.

What is meant by Project Synchronization and Staggering.

Understanding tasks variability and the Buffer Management.

How ProChain enables Critical Chain Scheduling in MS Project 2010.

Call to Action

Other Sessions

Critical Path 2.0, Eric Uyttewaal

Implementing PMI’s Practice Standard for Scheduling in Microsoft

Project, Kenneth Steiness

TOC Links

http://www.principlesofexecution.com/a_toc_transformation

http://www.goldratt.com

http://www.prochain.com

Evaluation

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