Critical Chain on a Page. A short Introduction to get interested

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1 Critical Chain on a Page A short Introduction to get interested

2 Critical Chain on a Page buffer consumption today P1 (1) Work in Progress is under control P1 P2 P2 P3 project pipeline P3 Critical Chain complements your existing project management. It builds on the fact that there is always a constraint and staggers projects (1) in order to determine realistic due dates. Critical Chain aggregates the buffers from individual tasks at project end and uses the "insurance effect" among others to considerably reduce the buffer (2), leading to a tighter schedule with a critical chain and a buffer (3). Progress and buffer consumption create a true operational project traffic light (4). The chart progress (5) supports effective project management. All charts together (6) enable decision makers to manage the portfolio. Critical Chain acts as a catalyst, allowing all existing good ideas, work processes and methods to take full effect. team fast feedback on situation in red zone focus on buffer regain Self-responsibility and management is empowered Critical Chain Project Plan (3) (5) project view progress 56% progress due date 37% buffer consumption status green (4) faster progress than buffer consumption status red slower progress than buffer consumption progress & status reporting 33% dedicated buffer before the fixed due date portfolio view (6) (2) aggregate buffer at the project end probability of estimates duration stakeholders reasonable estimate 50/50% typical estimate every estimate is wrong every estimate has buffer in it #1 longest chain of work packages #2 with 50% buffer highlighted (green) #3 with buffer aggregated at the end #4 with 50% of buffer reduced resulting buffer ~33% of the duration target <10% red transparently informed quick overview operational real status confidence in team is improved

3 Buffer consumed Intervention multi-project management Situation: Bad multi-tasking Thin spread of resources Start ASAP Desynchronization Delays drum with capacity 3 Project #4 #2 optimal flow by controlling work in progress, staggering, fast strategic priority decisions and portfolio control highly reliable due dates Project #3 # 5 Causes: Too much work in progress Ignoring Little s Law Mechanism: Identify the constraint Stagger at the constraint Reduce WIP Reduce lead time DBR management Project #1 Lead time Follow up % 80 90% 70 80% 60 70% 50 60% 40 50% 30 40% 20 30% 10 20% 0 10% Progress on Critical Chain % 80 90% 70 80% 60 70% 50 60% 40 50% 30 40% 20 30% 10 20% 0 10% Project A Project B Project C Project D

4 Buffer consumed Intervention single project management Situation: Early completions are rare Delays are passed on Due dates slide/move Watermelon traffic lights Many traffic lights Job floor priorities unclear Causes: Ignoring deviations in estimates Ineffective operational traffic light Mechanism: Each estimate contains buffer. Aggregate and reduce buffer Resources assigned based on urgency Balanced portfolio Critical Chain Management highest reliability by buffering the critical project milestone, using progress against buffer consumption to operationally manage the resources comply with due dates Buffer 50% Buffer % 80 90% 70 80% 60 70% 50 60% 40 50% 30 40% 20 30% 10 20% 0 10% Progress on Critical Chain % 80 90% 70 80% 60 70% 50 60% 40 50% 30 40% 20 30% 10 20% 0 10% /06 27/08 22/10

5 Intervention Agile flexibility, innovation, product differentiation new future business Situation: Waterfall development Long feedback cycles Over-the-Wall Very remote client we know how to optimally combine agile and classic! Causes: was efficient in fairly stable environments Mechanism: Include client in the team Feedback loops Break up into sub tasks Simplify management Combine with CCPM Reliable/Ultimate Scrum

6 Layer 3 subtasks Layer 2 Single project today Layer 1 Multi project Critical Chain and Agile Framework PIPELINE Project #4 #2 Project #1 5 Project #3 stakeholder priority board new projects transparently informed quick overview operational real status confidence in team is improved 56% 37% team KVP Buffer Consumption per Team fast feedback on situation in red zone focus on buffer recovery Self-responsibility and management is empowered continuous improvement focused Kaizen

7 more testimonials Lufthansa aircraft maintenance +45% throughput lead times cut in half Motorway construction - 40% reduced lead times and costs Plant construction Von Ardenne - Lead times reduced from 21 to 6 months B2B web software Kingmedia +60% throughput Japan organizations using CCPM are favored for public building projects. Over 80% use CCPM.

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