1 The Quick and Dirty Guide to Implementing Critical Chain Speaker: Charles Jessup Welcome to the PMI Houston Conference & Expo and Annual Job Fair 2015 • Please put your phone on silent mode • Q&A will be taken at the close of this presentation • There will be time at the end of this presentation for you to take a few moments to complete the session survey. We value your feedback which allows us to improve this annual event.
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1
The Quick and Dirty Guide to Implementing Critical Chain
Speaker: Charles Jessup
Welcome to the PMI Houston Conference & Expo and Annual Job Fair 2015
• Please put your phone on silent mode
• Q&A will be taken at the close of this presentation
• There will be time at the end of this presentation for you to take a few moments to complete the session survey. We value your feedback which allows us to improve this annual event.
What is Critical Chain?
• Critical Chain Project Management (CCPM)
• Based on Eli Goldratt’s book Critical Chain • Project Management philosophy based on
the idea that we don’t know everything • A way to plan for and manage uncertainty
PIPELINING Limit the amount of work in execution
Stagger project starts
3 Rules of Critical Chain
BUFFER MANAGEMENT Synchronize priorities
Use buffer charts to proactively identify problems
BUFFERING Don’t turn task estimates into commitments Create aggressive plans with 50% buffers
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Vicious Cycle
Uncertainty, Dependencies
Start new work ASAP
High WIP
Multitasking
Fixed date schedules, multiple hard milestones
Hire expediters to prioritize
Padding duration estimates
Parkinson’s law, Student syndrome
Delays
Prioritize based on buffers
Flexible, Buffered Schedule
Limit WIP, Pipeline
PIPELINING Limit the amount of work in execution
Stagger project starts
3 Rules of Critical Chain
BUFFER MANAGEMENT Synchronize priorities
Use buffer charts to proactively identify problems
BUFFERING Don’t turn task estimates into commitments Create aggressive plans with 50% buffers
Phase 1- Pipelining
One minute multitasking exercise
Multitasking is a lie 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
T2, 5 days
T1, 5 days Project Plan
5 10 15 20 Days 0
T1, 10 days
T2, 10 days Multitasking (ideal case)
No Multitasking
Project finishes on ~Day 10
T1, 5 days
T2, 5 days
Project finishes on ~Day 10
What happens when one person multitasks?
R, 5 days Y, 5 days
R, 5 days Y, 5 days
Project 1
Project 2
5 10 15 20 Days 0
Y, 10 days
Y, 10 days
R, 10 days
R, 10 days
Project 1
Project 2
Y, 5 days
Y, 5 days
R, 5 days
R, 5 days
Multitasking
No Multitasking
Project 1
Project 2
Both projects finish on ~Day
20
Both projects finish on ~Day 15
First project delivered on ~Day 10
What happens when 2 people multitask?
Ok, I agree multitasking is bad. What can I do about it?
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Work Assignment Board
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Work Assignment Boards in Action
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How to run a Work Assignment Board Meeting
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How to Sustain a Work Assignment Board
1. High Visibility 1. Make it large, put it in a hallway. 2. Physical, not electronic.
2. Regular Updates 1. Each person updates their row on the
board 2. Update boards before meetings, not
during 3. Regular Meetings
1. Weekly for most groups, depends on pace of work
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Phase 1 (Pipelining) - Summary
• Problem – Multitasking causes delays through – Switching Costs – Handoff delays
• Solution – Work assignment boards – Reduce Multitasking – Improve communication
Phase 2: Buffering
How to have your project finish on-time, even when things go wrong
Murphy’s law
Uncertainty
• What is uncertainty?
• How many people have been on a project that had an unexpected delay?
• Anyone been on a big project that did not have an unexpected delay?
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Buffers - concept
• How should we deal with that uncertainty?
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What does a project buffer look like?
After
Before
How to Buffer a Schedule
1. Buy-in 1. Management Buy-in 2. Customer Buy-in
2. Mechanically buffer the schedule 3. Teach people to work with a buffer
1. Change the mentality from “work to due date” to “work on highest priority as fast as I can”
Single Project Buffer Chart
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Phase 2 (Buffering) - Summary
• Problem – We know things will go wrong, but we don’t know where and when they will go wrong
• Solution – Buffered Schedules
– Mechanically simple, just add a buffer at the end
– Get buy-in and focus on changing the behaviors
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Phase 3: Buffer Management
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R, 5d Y, 5d
Project 1
Project 2
5 10 15 20 Days 0
B, 5d
Y, 5d R, 5d
B, 5d
Priorities:
Y, R: Proj 1, Proj 2 B : Proj 2, Proj 1
20 days to complete both projects First delivery in 15 days
Synchronized Priorities R, 5d
Y, 5d Project 1
Project 2
B, 5d
R, 5d Y, 5d
B, 5d
15 days to complete both projects First delivery in 10 days
Problem: Poor Synchronization across projects
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How can I use a Portfolio Buffer Chart?
Shell 15K OWIRS
BPTH WI (THWI UTA)
STAR Program 2013 Heidelberg 10K
Chevron Agbami
Jubilee FFD
Europa A8
LLOG MC 546 (TMC) Stones (1)
Stones (2)
LLOG MC546 (Subsea Distribution)
Julia (Topside Skids)
Julia (TMC #1)
BPTH WI (THWI EFL)
Europa A9
0%
20%
40%
60%
80%
100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Buffer Consumed
Critical Path Consumed
Division Portfolio Buffer Chart 7/22/2013 Last updated:
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How can I make a Buffer chart?
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How to use a Buffer Chart
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How to Sustain a Buffer Chart
1. High Visibility 1. Make it large, put it in a hallway. 2. Physical posters, not electronic.
2. Regular Updates 1. A specific person is responsible for
updating the buffer chart 2. Updated on a regular basis (Every
Tuesday, 1st of the month, etc.) 3. Regular Meetings
1. Weekly for most groups, depends on pace of work
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Phase 3 (Buffer Management) - Summary
• Problem – Unclear priorities across projects leads to resources that are spread thin and ultimately to delays
• Solution – Buffer Management – Create a portfolio buffer chart allowing you
to see relative progress on projects – Implement regular meetings to align
priorities across projects – Get buy-in and focus on communicating
clear priorities
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Conclusion
PIPELINING Limit the amount of work in execution
Stagger project starts
3 Rules of Critical Chain
BUFFER MANAGEMENT Synchronize priorities
Use buffer charts to proactively identify problems
BUFFERING Don’t turn task estimates into commitments Create aggressive plans with 50% buffers
Implementation Plan 1. Critical Chain 101 Training 2. Work Assignment Board
– Put board in a highly visible location – Establish regular meetings at board
3. Rebuffer Plans – Get buy-in of stakeholders and management. – Add critical chain buffer.
4. Create Buffer Chart – Put buffer chart on wall or everyone to see. – Set up regular meetings to review & align
5. Ensure sustainment – Metrics – Add Critical Chain Training for new hires and new managers
Questions?
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Contact Information • Speaker: Charles Jessup • Company • Phone: • E-mail: [email protected]
Thank You
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