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A Critical Chain Project Management presentation explaining how I used Microsoft Project 2010 and Prochain to implement Microsoft's Project Server Portfolio Management capability at an international law firm.
Citation preview
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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