10. www.criticalpoint.co.uk
CriticalPointConsulting
‘A set of interlinked techniques and tools that work
individually and collaboratively to significantly
improve the processes and operation of scheduling
and execution in project, programme and portfolio
environments’
What is CCPM?
10
11. www.criticalpoint.co.uk
CriticalPointConsulting
‘A set of interlinked techniques and tools that work
individually and collaboratively to significantly
improve the processes and operation of scheduling
and execution in project, programme and portfolio
environments’
What is CCPM?
11
Techniques: Working practices, Behaviours
Tools: Processes, Software
12. www.criticalpoint.co.uk
CriticalPointConsulting
‘A set of interlinked techniques and tools that work
individually and collaboratively to significantly
improve the processes and operation of scheduling
and execution in project, programme and portfolio
environments’
What is CCPM?
12
Individually: Resolve a specific problem
Collaboratively: In unison to support the whole
13. www.criticalpoint.co.uk
CriticalPointConsulting
‘A set of interlinked techniques and tools that work
individually and collaboratively to significantly
improve the processes and operation of scheduling
and execution in project, programme and portfolio
environments’
What is CCPM?
13
Improvements: Efficient processes
Faster operation
14. www.criticalpoint.co.uk
CriticalPointConsulting
‘A set of interlinked techniques and tools that work
individually and collaboratively to significantly
improve the processes and operation of scheduling
and execution in project, programme and portfolio
environments’
What is CCPM?
14
Scheduling: Optimum, realistic schedule
Effective contingency protection
Execution: Efficient working practices
Excellent progress visibility, focus, control
15. www.criticalpoint.co.uk
CriticalPointConsulting
‘A set of interlinked techniques and tools that work
individually and collaboratively to significantly
improve the processes and operation of scheduling
and execution in project, programme and portfolio
environments’
What is CCPM?
15
Projects: Single projects
Programme: Multi-project
Portfolio: Enterprise-wide
21. www.criticalpoint.co.uk
CriticalPointConsulting
3 d
5 days
7 days
Late Finish
Adds Time
Early Finish
Gain Lost
5 days
5 days 5 days
Planned
2 days added
to schedule
No benefit
to schedule
Parallel Converging Tasks tied to schedule dates
Losses Accumulate - Gains Don’t
…And the schedule moves out
21
Traditional Project Management
Task Deadline Scheduling – Planning to Fail
5 days 5 days 5 days
✓
✓
✓
22. www.criticalpoint.co.uk
CriticalPointConsulting
Dates attempt a rigid structure on a variable situation
Parkinson’s Law often prevents early finishes
Losses increase time and costs, not offset by gains
Schedule is guaranteed to require frequent changes
Project end-date slip is almost inevitable
Summary
22
Traditional Project Management
Task Deadline Scheduling – Planning to Fail
30. www.criticalpoint.co.uk
Shorter Task Durations & much reduced timeline
No space for Parkinson or Student Syndrome
But where is our contingency now?
CriticalPointConsulting
CCPM Project-Level Contingency
Remove task-level contingency
30
31. www.criticalpoint.co.uk
Buffer protects the Project – not individual tasks
Provides the project Commit Date
CriticalPointConsulting
CCPM Project-Level Contingency
Aggregate Contingency
Project
Commit
Date
Project Buffer
31
32. www.criticalpoint.co.uk
Critical Task over-runs are absorbed by the Buffer
The Project ’Schedule’ remains unchanged
The Project Commit Date is not affected
CriticalPointConsulting
CCPM Project-Level Contingency
Project Protection
Project
Commit
Date
Project Buffer
32
34. www.criticalpoint.co.uk
If a Critical Task finishes early…
The time saved is ‘added back’ into our contingency
Buffer Status always shows the latest position
CriticalPointConsulting
CCPM Project-Level Contingency
Project Protection
Project
Commit
Date
Project Buffer
34
Buffer
Status
35. www.criticalpoint.co.uk
Project Contingency which results in
Student Syndrome which results in
Parkinson’s Behaviours and
Streamlined Schedules with
Aggregated Uncertainties are built into a
CriticalPointConsulting
Visible, Manageable Contingency which prevents
Protected From Delays and
Fast and Efficient Projects which are
Do not require Schedule Changes
CCPM Project-Level Contingency
35
Project-Level Contingency Cascade
37. www.criticalpoint.co.uk
Task H
Task F
Task I
Task B Task C Task D
Task G
Task A Task J
Task E
CriticalPointConsulting
Critical Path ignores resources
Critical Path based ONLY on task dependency & duration
Valid only in an environment without resource constraints
But what happens if we have resource contentions?
Traditional Project Management
Critical Path – A dangerous path to follow?
37
39. www.criticalpoint.co.uk
Critical Path Problems
Post–CP Resource Levelling
Task E
Task H
Task F
Task I
Task B Task D
Task G
Task A Task J
Levelling resolves the issue… but increases timescales
And the vision of the Critical Path dominates
…and so tactical manoeuvres soon start...
CriticalPointConsulting
Task C
39
40. www.criticalpoint.co.uk
Critical Path Problems
Avoidance Tactics 1- Multi-Tasking
Task H
Task B Task DTask A Task J
Task E
CriticalPointConsulting
Quality may be reduced
Predictability becomes less certain
Work becomes fragmented and control less easy
But because Multi-tasking takes longer…
40
41. www.criticalpoint.co.uk
Critical Path Problems
2 - Overtime
Task H
Task B Task DTask A Task J
Task E
CriticalPointConsulting
…Extra hours need to be worked
Scheduling becomes difficult
And Control starts to ebb away
41
42. www.criticalpoint.co.uk
Critical Path Problems
Slippage
Task H
Task B Task DTask A Task J
Task E
CriticalPointConsulting
Multi-tasking is high risk
High potential for slippage
Diminishing returns due to staff morale / burnout
Schedule long since become unmanageable
42
43. www.criticalpoint.co.uk
Critical Path Problems
Scope Cut
Task H
Task B Task DTask A Task J
Task E
CriticalPointConsulting
Last resort to hit target date is a Scope Cut
May cause work in other areas
Further degrades quality
‘Project Meltdown’
ScopeCutScopeCut
ScopeCut
43
44. www.criticalpoint.co.uk
Incorrect Dependency Path often with
Misleading Priorities which encourages a spiral of
Ignoring Resources Contentions leads to an
CriticalPointConsulting
Unstable Schedule which needs
Traditional Project Management
Critical Path Problems
Fire-fighting tactics which leads to an
Unrealistic Completion Dates and
Out of Control Project with an
Critical Path Cascade
44
Frequent Changes
46. www.criticalpoint.co.uk
Task H
Task F
Task I
Task B Task C Task D
Task G
Task A Task J
Task E
CriticalPointConsulting
CCPM Critical Chain
1. Build Dependency Network As Normal
Include Resource Requirements
46
47. www.criticalpoint.co.uk
CCPM Critical Chain
2. CCPM Software - Resource Levelling
Task E
Task H
Task F
Task I
Task B Task C Task D
Task G
Task A Task J
CriticalPointConsulting
47
Prevents over-allocation of resources
48. www.criticalpoint.co.uk
CCPM Critical Chain
3. CCPM Software - Identify the Critical Chain
Task E
Task H
Task F
Task I
Task B Task C Task D
Task G
Task A Task J
CriticalPointConsulting
CCPM treats Resource Constraints as dependencies…
…which changes the project priority path
Priority sequence ‘jumps’ to resource dependencies
A realistic critical sequence – The Critical Chain
48
49. www.criticalpoint.co.uk
Critical Chain / Critical Path Comparison
Task E
Task H
Task F
Task I
Task B Task C Task D
Task G
Task A Task J
CriticalPointConsulting
Task H
Task F
Task I
Task B Task C Task D
Task G
Task A Task J
Task E
Critical Chain
Critical Path
49
50. www.criticalpoint.co.uk
Correct Dependency Path with
Realistic Priorities which provides a
Including Resources Contentions leads to a
CriticalPointConsulting
Stable Schedule that
Realistic Project Duration and
Project Under Control with a
CCPM Critical Chain
Critical Chain Cascade
50
Does not need changes
52. www.criticalpoint.co.uk
3d
Task 1: 9 days Task 2: 9 days Task 3: 9 days
Time
3d 3d3d 3d 3d 3d 3d 3d
Without Multi-tasking:
With Multi-tasking:
27 Days
29 Days
• Nothing gets completed until day 23.
2 days added to overall duration.
Quality likely to be poorer.
Day 23
Day 9
• Everything is late.
Task 1: +14 days late(+155%)
Task 2: + 8 days late (+42%)
Task 3: +2 days late (+22%)
CriticalPointConsulting
Traditional Project Management Multi-tasking:
The Illusion of being productive
52
53. www.criticalpoint.co.uk
CriticalPointConsulting
Multi-tasking; The SINGLE best way…
…to screw up TWO JOBS.
It slows everything down
It reduces quality
It wastes time and costs more
It is bad for morale
It complicates scheduling & control
It removes planning predictability
It causes delivery delays
Summary
Traditional Project Management Multi-tasking:
The Illusion of being productive
53
56. www.criticalpoint.co.uk
3d
Task 1: 9 days Task 2: 9 days Task 3: 9 days
Time
3d 3d3d 3d 3d 3d 3d 3d
Without Multi-tasking:
With Multi-tasking:
27 Days
29 Days
• Nothing gets completed until day 23.
2 days added to overall duration.
Quality likely to be poorer.
Day 23
Day 9
• Everything is late.
Task 1: +14 days late(+155%)
Task 2: + 8 days late (+42%)
Task 3: +2 days late (+22%)
Traditional Project Management Multi-tasking
The Illusion of being productive
CriticalPointConsulting
56
57. www.criticalpoint.co.uk
Task 1: 9 days Task 2: 9 days Task 3: 9 days
Time
Without Multi-tasking:
27 Days
CCPM Single Tasking
The reality of being productive
CriticalPointConsulting
58. www.criticalpoint.co.uk
CriticalPointConsulting
‘Good’ Multi-Tasking
Non-Project / background, no dependencies or deadlines.
Training/education. QA tasks. Flexi-time.
‘Bad’ Multi-Tasking
‘Double-booked’ on overlapping tasks.
Covering Additional / Support roles.
‘Ugly’ Multi-Tasking
Personnel allocated simultaneous project tasks.
Endemic, cultural.
CCPM Single Tasking
Can Multi-tasking be removed?
58
61. www.criticalpoint.co.uk
CriticalPointConsulting
Use of ‘Percentage Complete’:
Report to expectation – no bad news to give
Can’t be challenged – only task owner knows
Often simply aligned with time used
Optimism that time can be pulled back
Reality is often ignored - An easy place to hide
Traditional Project Management
Progress Measurement
61
62. www.criticalpoint.co.uk
CriticalPointConsulting
Measurements -
Percentage Complete, Time / money used / left
Position against base line, Milestones achieved…
What do they tell us?
How much time/money used - Retrospective
What do they tell us about the future?
Very little…
Traditional Project Management
Progress Measurement
62
What is the Only Question PM’s get asked?
63. www.criticalpoint.co.uk
CriticalPointConsulting
Are we on target?
What do we really need to know?
How exposed are we?
Have we got enough safety in hand?
Is there a trend?
Is it upward or downward?
Should we be taking any action?
Where should we be taking action?
Traditional Project Management
Progress Measurement
63
64. www.criticalpoint.co.uk
CriticalPointConsulting
Often not a true / realistic picture
Real Status / safety contingency is hidden
False sense of schedule security
Leads to persisting ‘90% complete’ / late-emerging issues
Can cause major / incorrect re-scheduling
Doesn’t answer the Big Question
Summary
Traditional Project Management
Progress Measurement
64
76. www.criticalpoint.co.uk
CriticalPointConsulting
Critical Chain Project Management
The Five Elements of Success
Multi-tasking
76
CCPM
Schedule
Project-Level
Contingency
Critical Chain
Single-tasking
Good Measures
Visible Control
Yes – but not just 5 problems, CCPM fixes 2 more as well.
So, have we fixed all of the problems?
98. www.criticalpoint.co.uk
CriticalPointConsulting
‘Reducing Work in Progress:
Reduce & Limit ‘In progress’ projects to optimum
‘Stagger’ new project starts
Implement a ‘Pull’ System: not a ‘Push’ System
CCPM in Multi-Project Environment:
Maximising Throughput
98
106. www.criticalpoint.co.uk
High Tech
3M
Advasense Technologies
Agilent Technologie
AMCC
AMD
Avaya
Avitronics
Barco
Bell Canada
BT Radianz
Computer Sciences Corp
Cray, Inc.
ECI Telecom Ltd.
Eclozion Informatique
Ericsson
Estonian Telephone
Fairchild Semiconductor
Graftech
Hewlett Packard
Hitachi Computer Products
Honeywell
IBM
Ismeca Europe Semiconductor
ITT Canon
L-3 Communication Systems
LSI Logic
Lucent Technologies
Marvell
High Tech /
Medtronic, Inc.
Microsoft
Motorola
Numonyx
Philips Semiconductors
Pioneer
Qualcomm
RSA Security
SanDisk
Sapient
Seagate Technology LLC
Sony Ericsson
Spirent Communications
Sprint
Sun Microsystems
Symbian
Tadiran Spectralink
Tektronix
TT Technologies
Tundra Semiconductor
Workscape
Xerox Corporation
Business Education
Ashridge Management College
Project Management Institute
London Business School
+ Over 160 Universities
Life Sciences
Abbott Labs
Adirondack Surgery
AHIS-St. Vincent Health
AMGEN
Andover Healthcare Inc.
Arterain Medical
Baxter
Boston Scientific
Central Dupage Health
Bovis Pharmaceuticals
Converge Medical Inc.
Cytori Therapeutics, Inc.
Edwards Lifescience
Ethicon
Gambro Healthcare
GlaxoSmithKline
Johnson & Johnson
Medtronic
Merck Medco Managed Care
Pfizer
Pharmacia
Roche Diagnostics
Spectranetics
Tenet Health Care
Tyco Healthcare
United Behavioral Health
Vascore Medical
Ventana
CriticalPointConsulting
Companies Using CCPM - 1
106
107. www.criticalpoint.co.uk
Aerospace and Defense
Aerojet Corporation
Air Force Institute of Tech.
BAE Systems
The Boeing Company
General Dynamics
Halliburton
ITT Space Systems
Lockheed
NASA
Northrop Grumman
Portsmouth Naval Shipyard
Puget Sound Naval Shipyard
Raytheon
SAAB Avionics
US Air Force
Consumer Products
Coca-Cola
Colgate Palmolive
Del Monte Foods
Fonterra
Gillette
Heineken
IKEA
Kraft Foods
McKee Foods
Nike
Philip Morris
Industrial
ABB
Accoat
Advanced Energy Technology
Alcan
Alfa Lava
American Rubber Products
Applied Plasmonics
AREVA
Atomic Energy of Canada .
Balfour Beatty
Bimba Manufacturing
Bosal
Bosch Rexroth Ltda.
Brice Manufacturing
BVR Technologies Company
C.F. Roark Welding.
Callaway Golf
Celite Corporation s
Conoco
Corning Cable Systems
Cueros Industrializados
DaimlerChrysler UK
Danfoss
Delta Faucet Company
Detroit Diesel Reman-West
DuPont
Eastman Kodak Company
Industrial/
ExxonMobil Chemical
Fisher Controls
Fluid Brasil Sistemas
Fluke Corporation
Fuel Cell Energy
GE Industrial Systems
Hach
Honda
ITT Corporation
Kawasaki Heavy Industries,
M&M Precision Systems
Marshall Industries
Merichem Chemicals
Milwaukee Forge
Rail care
Raychem
Rolls Royce
Siemens
Sylvania
Unilever
Tata
UPC Technology
Volvo
Source:TOC International, Gatlinburg, TN.
CriticalPointConsulting
Companies Using CCPM - 2
107
108. www.criticalpoint.co.uk
Space Shuttle Software Development Project
Projects completed up to 42% ahead of schedule.
Space Shuttle Hardware Development Project
Hardware delivered 36% early, 20% under budget, exceeded quality expectations
Space Shuttle Engineering Document Development Project
Schedule reduction of 58%, exceeded customer expectations
Boeing Space Shuttle Development Results using CCPM:
CriticalPointConsulting
Some Results:
After having used it in 2,523 public works projects in 2007
and over 4,000 public works projects in 2008, the Japanese
government has recommended that critical chain project
management “be used on all projects henceforth
(approximately 20,000 projects per year).”
Japanese Government
108
109. www.criticalpoint.co.uk
CriticalPointConsulting
Professional Recognition
APM Body of Knowledge.
"An alternative to creating networks based on activity dependencies is to use a
technique called critical chain. This method considers the availability of resources
and the interdependencies between resources.“ - APM Body of Knowledge 6th edition (2012) p 155
Association for Project Management
PMI Body of Knowledge
“Critical chain is a schedule network analysis technique that modifies the project
schedule to account for limited resources. Initially, the project schedule network
diagram is built using duration estimates with required dependencies and defined
constraints as inputs. The critical path is then calculated. After the critical path is
identified, resource availability is entered and the resource-limited schedule result is
determined. The resulting schedule often has an altered critical path.”
PMI BoK 4th edition. Ch 6 Time Management p.155
Project Management Institute
109
110. www.criticalpoint.co.uk
CriticalPointConsulting
Professional Recognition
Conference Presentation
Critical Chain Project Management using Microsoft Project 2010 and Prochain:
Implementing Project Portfolio Management.
The Theory of Constraints International Certification Organization (TOCICO) is a global
not-for-profit certification organization for TOC practitioners, consultants and
academics to develop and administer certification standards, and facilitate the
exchange of latest developments. TOCICO has run an international conference for the
past 8 years.
110
111. www.criticalpoint.co.uk
CriticalPointConsulting
Development:
Result of many years of continuous development
Based on Theory of Constraints (TOC) 1980’s
Needed software to be truly viable
Software to slow to develop
Now several good software products
Key Publications by Eliyah Goldratt:
1984 'The Goal' – TOC in manufacturing
1997 ‘ Critical Chain’ - Applying TOC to project management
CCPM Potted History
111
112. www.criticalpoint.co.uk
CriticalPointConsulting
Not just software!
Often considerable culture change
Requires education throughout company
People need time to get used to new working methods
No ‘Big Bang’
Start with single project ‘Pilot’
Progress to Multi-project (Programme)
Progress to Portfolio (Organisation)
CCPM Implementation
112
113. www.criticalpoint.co.uk
CriticalPointConsulting
Over 15 years experience in implementing CCPM
Successful implementations of CCPM in
Multiple companies / Multiple industries / Multiple countries
Consider what CCPM could do for your organisation
Contact us for
a free CCPM overview presentation
in your company
Critical Point Consulting
113
114. www.criticalpoint.co.uk
CriticalPointConsulting
‘Critical Chain Project Management presents us with an opportunity to plan
projects well for maybe the very first time. We should make sure that we
break with our old traditions of how we have done things in the past, and re-
plan our projects from scratch.
But planning is only half the story. The real power of CCPM comes from the
control afforded during the execution or deployment of the job. Buffer status
and buffer management allows us unprecedented feedback on the progress
of the project and where to focus attention and where not.
And maybe this is the most important factor in the whole approach.
We have a totally new and systemic way to manage projects. We should
make the very most of this opportunity.’
Dr. Kelvin Youngman
Last Word
114