Critical Chain Project. Webinar

Transcription

1 TOCICO CCPM Exam Review TOCICO Critical Chain Project Management Certification Webinar Presented By: Janice F. Date: June 7, 2009 Sample Questions provided (with my gratitude) by: Dr. James Holt (Washington State University) and Dr. Charlene Spoede-Budd (Professor Emeritus, Baylor University) 2009 TOCICO. All rights reserved. 1

2 Project Management Certification Workshop Agenda Introduction and Session Overview Outcomes and Certification focus Components of the Exam Part I: Project Management Fundamentals Part II: TOC TP and Critical Chain TOCICO CCPM Conference Exam Review Part III: CCPM, the Logistical Applications and Holistic View Grading/Evaluation Criteria Questions Disclaimer 2

3 Disclaimer TOCICO CCPM Conference Exam Review This Certification Exam Review e Workshop op is to help ep applicants be more aware of the possible contents of the Certification Exam. It is not a training course nor a sample exam. Examples and discussion used here are simply to guide and assist your understanding of the general nature, scope and level of detail of the Certification Exam. Exact or perfect answers to questions is not provided here. 3

4 Expectation: Base Level Understanding g Base-level competency related to Critical Chain Project Management that is evaluated in the Fundamentals Exam (therefore assumed to be in place) includes: 1. The ability to identify the critical chain and its length in a single- project network (given padded d activity it times and (some) resource contention) 2. Recognizes that activity times should be cut by 50% in the beginning i 3. Buffers should be 50% of reduced durations. 4. Correctly removes resource contention to minimize total project lead time 5. Knows appropriate rules of scheduling (pushing all tasks as late in time as possible and working backwards) 6. The ability to correctly size and position the required buffers 4

5 Project Management Exam A TOC expert certification in Project Management certifies that the individual has sufficient knowledge and tools (capability) to successfully practice TOC s Critical Chain application where e needed in organizations. Three elements being evaluated in the project management experts certification exam: Project Management Fundamentals (2 Hours) TOC TP Processes in Project Management (2 Hours) Project Management Implementation Details/Logistics (2 Hours) + (2 Hour Buffer) RANGE: 3.5 hours 8 hours AVERAGE: 5.5 hours 5

6 Project Management Exam Exam Format: Mixture of short answer and longer, multi-part questions Some will be in the context of an integrated, holistic case for Parts II-III. III 6

7 Part I: CCPM Fundamentals Objectives of Part I Demonstrate: Base knowledge regarding CCPM beyond that which is evaluated in the Fundamentals Exam Ability to compare and contrast the differences between Theory of Constraints Critical Chain and traditional project management methodologies and practices. 7

8 Part I: CCPM Fundamentals - Specifics (1 of 2) A. Can contrast conventional rules and practices for project network building, scheduling and control metrics with those of Critical Chain Project Management beyond those evaluated at the Fundamentals level. B. Knows how CCPM addresses each of the following: i. Resource Contention that emerges after buffers have been inserted ii. Gaps that emerge in the Critical Chain due to insertion of feeding buffers iii. Emergence of an apparently new Critical Chain due to the insertion of feeding buffers 8

9 Part I: CCPM Fundamentals - Specifics (2 of 2) C.Can explain why items B(i) B(iii) could be a trap of optimization. D. Demonstrates understanding of Project Planning i. Defining i project scope ii. Build the project network and work breakdown structure iii. Correctly identifying the drum or synchronizer iv. Can address traditional costing, crashing, and resource leveling, etc. issues E. Knows the difference between single-project and multi- project solutions. 9

10 Critical Chain Project Management Before (Traditional) A-14 B-10 C-16 E-20 D-20 C-16 LT = 60 days Resolving Resource Contention (CC) A-14 B-10 C-16 E-20 LT = 72 days D-20 C-16 Aggressive Schedule & Inserting Buffers A-7 B-5 FB-6 C-8 E-10 PB-18 LT = 54 days D-10 C-8 10

11 Part II: CCPM & Thinking Process Tools Objectives of Part II TOCICO CCPM Conference Exam Review Demonstrate: the ability to analyze any environment and its project management system using the four fundamental questions of the thinking process. 11

12 Part II: CCPM & Thinking Process Tools (1 of 3) A. Why change? i. Knows the goals of the project function ii. Knows how failure to meet its goals impacts the other entities in the system. B. What to change? i. Understands the core conflict in single- and multi-project ii. Knows the fundamental limitation that CCPM enables organizations to overcome, iii. Able to answer the 4 breakthrough technology questions from Necessary and Sufficient, iv.can verbalize the specific key assumptions in the conflict and demonstrate and demonstrate how they cause the specific, common undesirable effects 12

13 Part II: CCPM & Thinking Process Tools (2 of 3) C. What to change to? i. Is able to create the necessary injections that overcome the erroneous assumptions that underlie the core conflicts in project management ii. Can demonstrate the ability to build the logical connections from the proposed injections to appropriate predicted effects iii. Can identify how to generate additional injections required to create a customized solution to address common concerns and/or to create the necessary buy-in in situations such as: 1. Vendor problems 2. Changes to scope 3. Team, resource manager and project manager conflicts 4. Escalation of commitment 5. Pressure to cut the buffers 6. Challenges to staggering projects release 13

14 Part II: CCPM & Thinking Process Tools D. How to cause the change? i. Has sufficient knowledge to identify and communicate obstacles that predictably arise due to CCPM, especially regarding the use of the three primary components of CCPM (staggering, buffering and buffer management) ii. Can develop (and properly construct) Intermediate Objectives, IO maps and PRTs iii. Is knowledgeable about and has the capability to address metrics needed to monitor project status and ensure required control including: 1. Establishing appropriate buffers and buffer management reporting system 2. Can distinguish between buffer management and buffer watching (i.e. correctly diagnose when a project is in jeopardy) 14

15 Part III: CCPM, the Logistical Solutions and Holistic Perspective Objectives of Part III Demonstrate: Understanding of the role of the implementer and that as an implementer, one has sufficient capability to ensure the project management system successfully supports a Process of On- Going Improvement 15

16 Part III: CCPM, the Logistical Solutions and Holistic Perspective (1 of 2) A. Project Management and POOGI i. Knows the goals of the project function, and ii. Knows how failure to meet its goals impacts the other entities in the system iii. Understands the use of measures to align all levels of the organization with long term corporate goals B. Project Selection i. Can select projects from a holistic perspective (focused on improving the system s constraint) ii. Knows how to balance given market, research and development and finance issues and risk appropriately 16

17 Part III: CCPM, the Logistical Solutions and Holistic Perspective (2 of 2) C. Portfolio Management i. Knows the appropriate reporting and metrics required to create a portfolio management decision making model to tie tactics and investments to the organization s short run and dlong run strategy. t ii. Knows the roles and information needs of the portfolio (pipeline) manager, master scheduler, and project vs. resource vs. task managers D. Can articulate sufficient contrasting details and issues associated with a subset of different project environments such as construction, engineer-to-order manufacturing, software development, high tech new product development, pharmaceutical product development, MRO, consulting projects 17

18 Sample Questions Drawn from all Three Areas¹ The following questions discuss various aspects of Critical Chain Project Management from initial iti planning, through h scheduling, during process management and other issues important to the project management environment. As you review these questions, think about the implications on: Project Management Fundamentals Thinking Process and Project Management Project Management and Logistics Solutions and Holistic View 1. Most of these sample questions were provided by Dr. James Holt, Washington State University for which the CCPM committee is most appreciative. 18

19 Characteristics of Management SCENARIO: You ve just received a Hot Project (one that needs to be done right away or it will be late). What actions would you take if you were in a Traditional Project Management Shop vs. if you were in a CCPM Shop. Management Style Traditional Project Management Critical Chain Project Management Actions Determine the Buffer Status Identify the Critical Path Start all activities as soon as possible Start Critical Path as soon as possible Focus on the Resource Loading Immediately delay other projects Re-assign resources only as needed Focus on tasks causing buffer penetration Hire more people 19

20 Correctly Schedule a CCPM Project The following tasks are estimated at 50% probability of completion already. Schedule this project. A 20 C 10 F 5 B 15 D 10 B 15 E 10 Insights Part

21 Comparing Alternatives Consider the two Critical Chain Schedules Below. Which one is Better? Why? Schedule A B10 C12 FB6 F4 PB 16 B 10 D8 Schedule B B10 C12 F4 PB 18 B 10 D8 FB

22 Starting Date? The project is due on Week 70. When should the project start? t? Week k10 or Week k16?wh Why? A 12 B 12 C 12 PB 18 Due Date D 10 E 10 F 8 FB

23 Cost Buffers Additional Discussion Excel An internal project of importance is estimated by CCPM below. The estimated duration in weeks is shown with each activity s estimated cost. Both cost and time are 50% estimates. Specify and explain what you d estimate the project cost to be? A 10 $10K B 10 $30K C 10 $20K D 10 $40K PB 20 E 10 $30K F 10 $20K FB10 1. $150K 2. $200 K 3. $225 K 4. $250 K 5. $300 K

24 Emergency Management There e is a major delay on a key task. The task has already consumed 2 1/2 times its expected duration time and it looks like it will extend until it has taken 4 times longer than expected. What would the project manager do in a traditional project management system? What would the project manager do in a Critical Chain project management system? Insights Part 17 24

25 Problems with a Project The Project Buffer on a project is in the Red. What is the minimum other information you need to know before you can take action? TOC Insights Part 18 25

26 You Embark on Multi-Project (1 of 4) The Projects Strategy and Tactics Tree is one accepted source of an implementation roadmap. There are others The key is the logic you muster as you answer any questions regarding the implementation process steps you d recommend. 26

27 You Embark on Multi-Project (2 of 4) Your organization at o has just started ted Critical Chain Multi-Project Management. You are an advisor. Phase I. Initially, there were too many active projects in the system. When they were scheduled by CCPM, it was obvious some would barely complete on time and some others would clearly be significantly late. What do you advise the Project Management Team to do? 27

28 You are Doing Multi-Project (3 of 4) Phase II. You are now doing very well in you multi- project environment. The strategic resource is well used as are the other resources. Projects are completing well within the buffers. You just receive the option of accepting or rejecting a new, lucrative project. However, the due date of the new project is such that it would have to be inserted into the middle of the other projects already started. What do you need to know before you make your recommendation? What procedures would you put in place to make this type of decision easier in the future? 28

29 Experts in Multi-Project (4 of 4) Phase III. After some real success in your multi-project pojec world, you find projects are completing much faster than they had in the past. So much so, that there is now a shortage of projects to work on. There is not enough work to keep people busy; even the strategic resource has significant excess capacity. If this continues very long, you will need to lay-off some of your excess capacity. What should you do? 29

30 Scheduling Multi-Projects You have three Projects due to start in your CCPM multi-project environment. A5 A 5 C5 C 5 F 8 FB 9 D4 G 4 G4 PB 10 Loading for: H 10 H 10 J 8 FB 9 31 Wks M8 PB 1 42 Wks I 12 B 6 B 6 E3 E3 K 8 L 4 N 4 FB 4 40 Wks P6 Q8 R4 S 14 FB 7 T 6 PB Sequence the projects and report the expected completion dates. 30

31 Big Glitch Your CCPM Project is going smoothly the Critical Chain is 50% complete. The Project Buffer was in the Red for a while but recently recovered to the Yellow zone. Now, you find one of your internal support groups is way overloaded. They haven t even started on their assigned task and they are half way through their estimated duration. They won t be able to start for a few days. That makes their Feeder Buffer 150% penetration (way past red)! For an extra $10, you can contract with an external supplier who can deliver quickly. But, with this late start, the external supplier will consume 100% of the Feeder Buffer. What do you recommend and why? How would most conventional project management approaches evaluate the glitch? 31

32 Vendor Options Two vendors are competing for a subcontract on your project. The low price vendor will save you $10,000 on your $100,000 project; but he can only offer this price if he can work during a specified two-week period near the end of the project. The high price vendor says, I ll work with you and fit your project into my schedule as early or late as you need me. Both vendors are reliable. Which one makes sense to choose and why? 32

33 The New Plant A new plant is being planned. With a lot of work, all the task elements could be combined into one massive project with one project buffer. However, most of the engineers involved want to divide up the project into smaller, more manageable parts. Write the Evaporating Cloud for this conflict. Include at least one assumption for each arrow and suggest a possible solution to the conflict. B D A C D Goldratt Schools,

34 Last Thoughts/Test Tips Watch the TIME and WEIGHTS of questions A question worth 10 points out of a 100 should probably have more than a two sentence answer Organize information that s given and, when in doubt, STATE ANY STARTING ASSUMPTIONS you feel are warranted in your answer. When it comes to tools: be sure to observe the rules of proper construction 34

35 Common Mistakes Be sure to do what is asked: If it wants reasons provide them If it wants you to build a negative branch build it! Providing only PART of what was asked for in the response Grading Criteria 35

36 Grading Criteria Our grading rubric emphasizes three criteria: 1. Completeness. TOCICO CCPM Conference Exam Review Have all the elements in the question been answered? 2. Correctness. Is the answer within the range of acceptable responses? 3. Demonstrated Thought and Reason. Did the applicant address the question using TOC understanding (can identify underlying logic) and properly use (construct) appropriate tools if required or appropriate 36

37 Any Questions? TOCICO CCPM Conference Exam Review Thank You 37

38 About Janice Cerveny Janice F. Cerveny, Ph.D. is on the faculty of the College of Business, Department of Management, International Business and Entrepreneurship of Florida Atlantic University in Boca Raton, Florida. TOCICO CCPM Conference Exam Review She has worked primarily in the blood banking and health care industries but now consults and trains many diverse organizations in the Theory of Constraints (TOC). She is an Avraham Y. Goldratt Institute Jonah, Jonahs Jonah and is certified in the functional-specific applications of the Theory of Constraints for Production (Drum-Buffer-Rope, DBR), Distribution/Supply Chain Management (Continuous Replenishment, CR), Project Management (Critical Chain, CCPM) and interpersonal management skills applications (Management Skills Workshop, MSW). She has had a number of for profit and not-for-profit clients in the South Florida area include NCCI (National Council on Compensation Insurers), Siemens Telecom Networks, Sensormatic Electronics Corporation, Office Depot Corporate Audit Department, the North Broward Hospital District, and Philips Electronics. She has most recently completed a contract with the Veterans Administration in Washington, D.C. for clinical practice managers resulting in her editing a book for Ambulatory Care Clinic Managers. Her most recent article (with Dr. Stuart t Galup) Critical Chain Project Management: Holistic Solution Aligning Quantitative and Qualitative Project Management Methods appeared in Production and Inventory Management, Vol. 43, Numbers 3 &4, (2002, pp ). She is a member of the American Production and Inventory Control Society (APICS), the Decision Sciences Institute (DSI), the American Society for Quality (ASQ) and the Theory of Constraints International Certification Organization (TOCICO). She is recognized by the latter as internationally certified to facilitate implementations of TOC applications. 38