project portfolio planning & scheduling masterclass

©2018RealizationTechnologies,Inc.AllRightsReserved.

MASTERCLASS: Project Portfolio Planning and SchedulingHOW TO ACHIEVE A STEP JUMP IN PERFORMANCESANJEEV GUPTA


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PROJECT MANAGEMENT, WE HAVE A PROBLEM

PROJECTSARETHELIFEBLOODOFDEVELOPMENTANDGROWTHo $10Tspentoninfrastructureprojectseveryyearo Weareenteringtheageofhypercompetitiono DigitalTransformationisonthetopofCEO’sagenda

PROJECTMANAGEMENTISINCREASINGINIMPORTANCEo $500milliononthebalancesheetofPMI(purveyorofcertifications)o $8-10billion/yr.spentonprojectmanagementsoftwareandserviceso $208billionGDPimpactof2017-2027TalentGap

PROJECTSAREOVERDUEANDOVERBUDGET,OVERANDOVERAGAINo Noneedtoquotestatistics,youalreadyknowwhattheywouldbeo Theimpactcanbemeasuredindollarsandcents,orinhumanmisery


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THE PROMISE OF PROJECT PLANS

OPTIMIZATION OF TIME & RESOURCES

RELIABLEPROMISES

SYNCHRONIZED EXECUTION FULL

CONTROL


4

THE HARSH REALITY

Worktooklongerthanestimated

Supplierswerelate

Approvalsdidn’thappenontime

Scopeandspecswerechanged

Encounteredtechnicalproblems

Tasksequencehadtochange

Plannedresourcesnotavailable


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PROJECT JOKES AREN’T EVEN FUNNY ANYMORE


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BACKPOCKETSCHEDULES

5d

5d5d

5d

5d5d

5d

5d5d

5d

5d5d

ONEPLAN

o Projectplanningisresistedasanexerciseinfutilityo Peopleprefertheirown“backpocket”scheduleso Localoptimizationbecomesthemainmode*o Everyoneisfirefightingandwaitingonsomeoneelseo It’sdifficulttoholdpeopleaccountableo Youhavefrequentmeetingstoresolvescheduleconflictso Taskupdatesarejustabunchofrandomnumberso Statusreportsareunreliable(projectskeepslipping)o Highpriorityprojectscangetdoneinhalfthetime

CT 17.5è 10TP 2è 3

IS PLANNING & SCHEDULING THE PRIMARY PROBLEM?

If you have a planning & scheduling problem, improving processes or soft skills won’t improve

project delivery and resource efficiency.PLEASE FIX THE PLANNING & SCHEDULING PROBLEM.


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THE CCPM BREAKTHROUGH• The fundamental limitation it overcomes• How to make the breakthrough complete• ***Focus & Finish***• Value of Agile

“FOCUS & FINISH” TECHNIQUES FORLEVERAGING THE CCPM BREAKTHROUGH• Project planning• Pipeline planning• Resource planning• Execution practices

IMPLEMENTATION• Exactly what buy-in’s are required• When and why you need software

MASTERCLASS AGENDA


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CCPM IS A MAJOR BREAKTHROUGH…

5 5 5

DATE DATE DATE DATE

+/- +/- +/-

DATE DATEq PRIORITIZINGTASKS(WITHIN

ANDACROSSPROJECTS)q KNOWINGPROJECTSTATUSq ESTIMATINGCOMPLETIONDATESq USINGMANAGEMENTRESERVESq MANAGINGBOTTLENECKS

HOWTOUSEFLEXIBLETASKSCHEDULES


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…ALBEIT INCOMPLETE

TaskDurationvariabilityisnottheonlychangethatafflictsprojects.Howtomanagechangesinprojectnetworks(tasks anddependencies)?


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2-TIERED TASKS COMPLETE THE BREAKTHROUGH

TASK TASK TASK

TASK

Checklistsþ

þ

SUBTASKS

TIER1(TASKS)• Projectnetworksarestable(taskschangeveryinfrequently)

TIER2(SUBTASKS)• Givesflexibilitytothefrontline

§ TraditionalPERTnetworkisalwaysatthelowestleveloftasks§ CriticalPath/CriticalChain/BufferManagementrunatthelowestlevel§ Causesfrequentchangesinpriorities

§ 2-TieredPERTisonelevelabovethelowestleveloftasks(Tier1)§ Itisnotthesameasdefiningsummarytasks§ CriticalPath/CriticalChain/BufferManagementrunsatTier1§ Tier2schedulesaresubordinatedtoTier1priorities§ Takes“Focus&Finish”evendeeper


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WebinarbySiemensGamesahttps://youtu.be/4l3o9cp1u5k


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6w 10w 4w

6w 10w 4w

6w 10w 4w

6w 10w 4w

6w 10w 4w

6w 10w 4w

GLOBALOPTIMIZATIONMODE:FOCUS&FINISH

40weeks

Durationsincludeinterruptions

6w 10w 4w33%morethroughput

(1) (3) (3)

15w 25w 10w

15w 25w 10w

15w 25w 10w

50weeks

LOCALOPTIMIZATIONMODE:KEEPBUSY,SHOWPROGRESSEVERYWHERE(SPREADTHIN)

LOCAL VS. GLOBAL OPTIMIZATION


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• Thelongeratasktakes,thelongerthedownstreamwaitingtime(ratioof“TouchTime”to“LeadTime”isveryhighinprojects).

• Whenresourcesarespreadthin,workfinishesinbowwaves.

WHY NOT SPREAD RESOURCES THIN?


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BEFORE AFTER

ABBAG,PowerTechnologiesDivisionElectricalPowerTransmission,Engineer-to-Order

Throughputwas300baysperyear. Throughputincreasedto430baysperyear.

ABBCórdobaPowerTransformers,Engineer-to-Order

Engineeringcycletimewas8months.On-timedeliverywas85%.

Engineeringcycletimereducedto3months.On-timedeliveryimprovedto95%.16%increaseinmanufacturingthroughput(revenues).

ABB,HalleTransformerRepairandOverhaul

42projectscompletedin2007.On-timedeliverywas68%.

54projectscompletedin2008.On-timedeliveryimprovedto83%.

ActionParkMultiformaGrupoThemeParkDesign,Install&Commissioning

121projectscompletedin2004. 142projectscompletedin2005.153projectscompletedin2006.

AirgoNetworks(Qualcomm)NextGenerationWirelessTechnologyProductDevelopment

Cycletimefromfirstsilicontoproductionfor1stgenerationwas19months.

Cycletimefromfirstsilicontoproductionfor2ndgenerationwas8months.

AlcanAlesaTechnologiesMaterialHandlingSolutions,Engineer-to-Order

Completedanaverageof6.9projectsperyear. Completed10projectsinfirst8monthsof2009.31%increaseinthroughput-dollars.

Alcatel-LucentTelecommunicationSwitchesDesign,Development&Upgrades

Leadtimeswerelong.On-timedeliverywaspoor.

Leadtimesshortenedby10-25%.On-timedeliveryimprovedto90+%.Throughputincreasedby45%perperson.

Alna SoftwareCustomizedSoftwareDevelopment

Growthwasstagnating,becominginsufficienttosecuremarketposition.

Throughputincreasedby14%inthefirst6months.Cycletimereducedby25%andprojectcompletionsincreased17%withover90%on-timedelivery.

AmdocsCustomerExperienceSystemsCustomizedSWDevelopmentforTelecommunications

Marketpressuretoreducecostandcycletime.

8projectsincrisisrequiringCEOlevelattentionin2007.

14%increaseinrevenue/man-month.20%reductionincycletime.0projectsincrisisin2008.

ArmyFleetSupportHelicopterMaintenance,RepairandOverhaul(ForFlightSchools)

Maintenanceworkloadincreasedby37%andturnaroundtimeswerelong,leadingtohelicoptershortages.

32%reductioninCH-47turnaroundtime.52%reductioninUH-60turnaroundtime.8aircraftreturnedtocustomer($90Mincostavoidance).18,000sqftofhangarspacefreedup($2Mincostsavings).

REAL RESULTS FROM “FOCUS & FINISH”


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BEFORE AFTER

AsahiSeisakushoInc.GlassManufacturing

Completed13projectspermonth. Completed16projectspermonth(23%increase).Reducedovertimerateby35%.Revenuegrewfrom¥280Mto¥420M(50%increase)with¥50Minprofits.

BHPBillitonIronOreAssetDevelopmentProjects

25,800man-hoursofengineeringdesignworkhadtobecompletedin8months.Historicaldelaysof2weeksandman-houroverrunsof20%.

Productivityincreasedby25%withonly19,500man-hoursneeded.Projectfinished3weeksearly.

BoeingSpace&IntelligenceSystemsSatelliteDesignandAssembly

ReflectorsweretheconstraintinAntennaandSatellitedelivery.

Electronicunitswerelate,delayingSatellitesubsystems.ClassifiedGovernmentprogramwasbehindscheduleandlosingmoney.

Operationwaslosing$200Maquarter.

DoubledReflectorsthroughputandreducedcycletimeby28%,alleviatingdeliveryconstraint.IncreasedproductivityinAntennaAssemblyandTestby64%andsubsequentlyanother26%.ReducedcycletimeforElectronicunits,allowingsubsystemstofinish30%faster.StabilizedscheduleandreturnedmoneytoGovernment4quartersinarow.Operationturnedprofitable.

BoeingT45TrainingSystemUndergraduateMilitaryFlightOfficersGroundBasedTrainingSystems

Projectswerelateandoverbudget.

Unhappycustomerslosingfaith.

Projectsfinished1.5monthsaheadofschedule.Hardware/Softwareintegrationfinished32daysaheadofschedule.20%costsavingsindesigndevelopmentphase.Realizedadditional$12MinECPwork.Restoredcustomerconfidence.

C.N.Cofrentes(Iberdrola)NuclearPowerEngineering

Due-dateperformancewas60%. Due-dateperformanceincreasedto95%.Throughputincreasedby30%.

CelsaGroupITProjects

15SAPfunctionalityprojectswerecompletedpermonth. SAPfunctionalityprojectcompletionsincreasedby30%to20projectsamonth.

CentralNuclearAlmaraz TrilloNuclearPowerEngineering

19designevaluationandmodificationprojectswerebeingcompletedpermonth.

Throughputincreasedby25%to24-30projectspermonth.

ChryslerAutomotiveProductDevelopment

Cycletimeforprototypebuildswas10weeks. Cycletimeforprototypebuildsreducedto8weeks.



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BEFORE AFTER

CIBAVisionEye-caresolutions

Nopredictabilityintowhenthissinglemega,multi-countryprogramwillfinishcausingbigcostandtimeoverrun.

Projectexecutionsynchronizedacrossmultiplecountriestogetitincontrolandontracktodeliveron-time.

DaiwaHouseSAPImplementation

CycletimeforFinancialModuleprojectswas234days.

CycletimeforHRModuleprojectswas288days.

CycletimeforFinancialModuleprojectsreducedto172days(26%reduction).CycletimeforHRModuleprojectsreducedto213days(26%reduction).

Danisco(GenencorInternational)BiotechnologyPlantEngineering

20%projectsontime. 87%projectsontime.15%immediateincreaseinthroughput.

DeltaAirLines,Inc.AircraftEngineRepairandOverhaul

476enginesproducedperyear.

4-8weekspiece-partcycletime.

60dayslandinggearturnaroundtime.

586enginesproducedperyear(23%increase).30%reductioninengineturnaroundtime.15dayspiece-partcycletime(70%reduction).25%increaseinthroughput.30dayslandinggearturnaroundtime(50%reduction).$60Mmonetizedinassetsfromreducedturnaroundtime.Ongoingimprovement:10dayspiece-partturnaroundtime(30%furtherreduction).

DeltaAirLines,Inc.AircraftBaseMaintenance

24,799hoursproducedpermonthin2010.

On-timedeliverywas14.3%in2010.

30,840hoursproducedpermonthwith8%fewerresourcesin2011.On-timedeliveryimprovedto66.7%in2011.

DeltaAirLines,Inc.AircraftLineMaintenance

29.3cancellationsperdayduetomaintenanceinSummer2010.

11.2cancellationsperdayduetomaintenanceinSummer2011.

Dr.Reddy’sLaboratoriesPharmaceuticalNewProductDevelopment

6projectscompleted.20%projectsontimein12weeks.85globalgenericsandPSAIfilingsin2009.85productlaunchesin2009.915dayscycletimeforfulldevelopmentin2008.

11projectscompleted(83%increase).80%projectsontime(60%increase).110filingsin2010(30%increase).149launchesin2010(75%increase).563dayscycletimefordevelopmentin2010(40%faster).



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BEFORE AFTER

e2vSemiconductorsSemiconductorDesignandManufacturing

Actualcycletimeofprojectswas38months;25%ofprojectswereontime.

Actualcycletimereducedto23months;almostallprojectswerewithinthecommittedcycletimeof24months.

eircomTelecommunicationsNetworkDesign&Installation

On-timedeliverywaslessthan75%.Averagecycletimewas70days.

Increasedon-timedeliveryto98+%.Averagecycletimedroppedto30days.

EmbracoRefrigeratorCompressorDesignandManufacturing

Completed5projectsperyearin2006,2007and2008. Completed7projectsin2009(40%throughputincrease)and9projectsin2010(100%throughputincrease).11%reductioninleadtimes.

EmcocablesManufacturingPlantConstruction

11monthsindustrystandardprojectduration. 7monthstoprojectcompletion.(55%additionalrevenue4monthsearlier).

EmesaTGVStationConstruction

6monthslefttodeliver,andprojectwas5monthslate. Completed11monthsofworkin6months.Projectontime(€5Mpenaltyavoided).

EricksonAir-CraneHelicopterManufacturingandMaintenance

Only33%projectscompletedontime. On-timedeliveryincreasedto83%.

FrenchAirForce,SIAéClermontFerrandTransallProductionLineAircraftUpgradeandRepair

5aircraftonstation.

Cycletimeof165days.

3aircraftonstation,2aircraftreturnedtoAirForce,areplacementvalueof€300M.15%cycletimereduction,15%increaseinoutputwith13%fewerresources;22%reductioninsupportshops’cycletime.

GenecorBiotechnologyPlantEngineering

20%projectsontime. 87%projectsontime.15%immediateincreaseinthroughput.

HamiltonBeachBrands,Inc.NewProductDevelopmentHomeAppliances

34newproductsperyear.

74%projectsontime.

Increasedthroughputto52newproductsinthe1styear,andto70+inthe2ndyear,withnoincreaseinheadcount.88%projectsontime.

Heineken,SpainCPGNewProductDevelopment

90%on-timedelivery. 98%on-timedelivery.20%fastertime-to-market.10%ofprojectsfinishedaheadofschedule.



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BEFORE AFTER

HPDigitalCameraGroupDigitalCameraProductDevelopment

6cameraslaunchedin2004.1cameralaunchedinspringwindow.1outof6cameraslaunchedontime.

15cameraslaunchedin2005.7cameraslaunchedinspringwindow.All15cameraslaunchedontime.

Ismeca SemiconductorEngineer-to-Order

84daysoverallcycletime.24daysproductioncycletime.15machinesin8monthswashighestthroughputever.

64daysoverallcycletime(25%reduction).10daysproductioncycletime(60%reduction).22machinesin5months(47%higherthroughput).22%improvementinEBIT.

LeTourneauTechnologies,Inc.Oil&GasPlatformDesign&Manufacturing

DesignEngineeringtook15months.ProductionEngineeringtook9months.FabricationandAssemblytook8months.

DesignEngineeringtakes9months.ProductionEngineeringtakes5months.FabricationandAssemblytakes5monthswith22%improvementinlaborproductivity.

LSILogicASICDesignTechnologyDevelopment

74%projectsontimeforsmallprojects.Majortoolreleaseswerealwayslate.

85%ofsmallprojectsontime.Majortoolsreleasedontimeforthreeyearsinarow.

LufthansaTechnikAircraftMaintenance,RepairandOverhaul

CompletedC-Checkin14days. CompletedC-Checkin11.5days,18%cycletimereduction.

MarketingArchitectsAdvertisingProductDevelopment

Completed7projectsin2006. Completed7projectsinthefirst8monthsof2007.

MedtronicHighTechMedicalProductDevelopment

1softwarereleaseevery6-9months.Predictabilitywaspoorondeviceprograms.

1softwarereleaseevery2months.Scheduleslipsondeviceprogramscutby50%.

Medtronic,EuropeHighTechMedicalProductDevelopment

Deviceprojectstook18monthsonaverageandwereunpredictable.

Developmentcycletimereducedto9months.On-timedeliveryincreasedto90%.

OregonFreezeDryFoodPreparation&Packaging

72salesprojectscompletedperyear. 171salesprojectscompletedperyear.52%increaseinthroughput-dollars.

Owens-IllinoisProcessManufacturingPlantEngineering

6monthscycletimeforfurnacedesign.45projects/yearengineeringthroughput.

2.5monthscycletime(58%faster).60projects/yearthroughput(33%increase).

Procter&GamblePharmaceuticalsPharmaceuticalProductDevelopment

In2005,completionratewas5projects/quarter.55%ofprojectsdeliveredontime.

In2008,completed12projects/quarter.90%ontime,withsamenumberofresources.



19

BEFORE AFTER

Railcare Wolverton,UKTrainMaintenance,RepairandOverhaulEngineering

16monthsdelayindeliveryoflastorder.1orderexecutedatatime.

100%on-timedeliveryonallorders.3ordersexecutedinthesametimeframe.

RapidSolutionsGroupMarketing/PublishingSupport

Projectswerealwayslate.Leadtimeswerenotacceptable.

On-timedeliveryimprovedby30%.Leadtimesreducedby25%.

SiemensGeneratorEngineeringElectricGeneratorEngineering

2.4projectsproducedperweekin2008.

Projecton-timedeliverywas38%inQ3FY10.94non-projectsproducedperweekin2008.

2.9projectsproducedperweekin2009(38%increase).3.8projectsproducedperweekin2010(61%increase).Projecton-timedeliveryincreasedto85%inQ4FY11.128non-projectsproducedperweekin2010(36%increase).

ŠkodaPowerEngineered-to-OrderSteamGenerators

20casingsperyear.60%on-timedelivery.

27casingsperyear(30%increase).90%on-timedelivery.20-30%fastercycletime.

SkyeGroupGarmentDesign

Productrangeswerelatetomarket. 100%due-dateperformance.30%reductioninleadtimesandsamplingcosts.

SpiritAerosystemsAircraftEngineering

Pastpylonproductioncycletimewas21months. Actualcycletimeofpylonproductionis14months(33%reduction).25,000hoursofcostavoidance.

TATASteelPlantMaintenanceandUpgrade

300-500daysforboilerconversion.Routinemaintenancetooktoolong.

11daysplannedforshutdown.$2Mrevenuegeneratedperday.

120-160dayscompletiontime(68%faster).10-33%reductionin2007cycletime.5-33%additionalreductionin2008cycletime.8.8daysshutdownachieved.$4Mrevenuegained.Setnetoperatinghoursindustryrecord(6690hoursperyear).

TECNOBITDefenseProductsDesignandManufacturing

Longprojectcycletimeswithfrequentdelays. Projectcycletimesreducedby20%.

TerumoHeartInc.MedicalDeviceDevelopment

LaserCoverWeldingQualificationprojectranfor2years. Similarprojectranforonly6months.90%on-timedelivery(withinoneweek).



20

BEFORE AFTER

ThyssenKrupp(JohannA.Krause,Inc.)AutomotiveAssemblySystems,Engineer-to-Order

70%ofprojectswerelate.Highovertimeandoutsourcing.

Latenessreducedby50%.63%gainsinproductivity.15%moreprojectscompleted.

USAirForceOperationalTest&EvaluationCenterWarfighter SystemsTesting

Longcycletimes.Lowutilizationofresources.Poorvisibilityofprojectslips.

30%reductionincycletimemeasuredover900projects.30%improvementinresourceutilization.88%on-timedeliveryperformance.

USAirForce,OgdenAirLogisticsCenter572ndAMXG,C130ProductionLineAircraftMaintenance,RepairandOverhaul

Aircraftthroughputwas33inFY09.

36aircraftonstation.OngoingImprovement:2.58aircraftproducedpermonthin2010.On-timedeliverywas45%inQ42010.

Aircraftthroughputincreasedto44inFY10(33%increase).24aircraftonstation,12aircraftreturnedtoAirForce.OngoingImprovement:3.42aircraftproducedpermonthin2011(32%increase).On-timedeliveryincreasedto85%inQ42011.

USAirForce,OklahomaCityAirLogisticsCenterB-1ProductionLineAircraftRepairandOverhaul

Turnaroundtime162days.7aircraftinrepaircycle.

Turnaroundtimereducedto115days.4aircraftinrepaircycle(3returnedtocustomer).Productionoutputincreasedfrom185hours/dayto273.1½dockspacesfreedup(additionalrevenuepotential$35M).

USAirForce,OklahomaCityAirLogisticsCenterB-52ProductionLineAircraftUpgradeandRepair

Produced11aircraftayear.Cycletimeof225days.

Produced17aircraftayear.Cycletimeof195days.

USAirForce,OklahomaCityAirLogisticsCenterE-3ProductionLineAircraftUpgradeandRepair

4aircraftonbase.Cycletimeof183days.

Averageof2.6aircraftonbase.Cycletimeof155days.11%capacityreleasedforadditionalworkload.

USAirForce,OklahomaCityAirLogisticsCenterKC-135ProductionLineAircraftMaintenance,RepairandOverhaul

Averageturnaroundtimewas327days. Averageturnaroundtimereducedto146days.44%increaseinthroughputfromQ42008toQ42009.

USAirForce,TinkerAirForceBase76thPMXGAircraftEngineRepairandOverhaul

EnginePiece-PartRepair:137daysbackshopcycletime.260parts/monthbackshopthroughput.EnginesandModules:45modules/monththroughput.18dayscycletime.

EnginePiece-PartRepair:42daysbackshop cycletime(69%reduction).434parts/monththroughput(67%increase).EnginesandModules:50modules/monththroughput(10%increase).8dayscycletime(55%reduction).



21

BEFORE AFTER

USAirForce,WarnerRobinsAirLogisticsCenterC-17ProductionLineAircraftUpgradeandRepair

Throughputof178hoursperaircraftperday.Turnaroundtime46-180days.Mechanicoutputwas3.6hoursperday.

25%increaseinthroughput.Turnaroundtimereducedto37-121days.Mechanicoutputincreasedto4.75hoursperday.40%reductioninovertime.

USAirForce,WarnerRobinsAirLogisticsCenterC-5ProductionLineAircraftRepairandOverhaul

Turnaroundtime240days.13aircraftinrepaircycle.

Turnaroundtime160days.7aircraftinrepaircycle.75%fewerdefects.

USArmy,CorpusChristiArmyDepotHelicopterMaintenance,RepairandOverhaul

Throughputof5.4aircraftpermonth.ThroughputforBlackHawkwasmuchlowerthanrequired.Turnaroundtimeswereunacceptable.

Workscopeperaircraftwasincreasing.

Throughputincreasedto6.3aircraftpermonth.BlackHawkthroughputincreasedby40%injust6months.50%reductioninApacheturnaroundtime.15%reductioninCH47turnaroundtime.15%reductioninPaveHawkturnaroundtimedespiteincreasedscope.

USDepartmentofDefenseProcurementOrganizationProcessingofPurchaseRequests

Longdelaysinprocessingrequests.Longcycletimes.

Delaysreducedby40%.76%reductionincycletime.29%increaseinthroughput.

USMarineCorpsLogisticsBase,BarstowArmyVehiclesMaintenanceandRepair

RepaircycletimeforMK48was168days.RepaircycletimeforLAV25was180days.RepaircycletimeforMK14was152days.RepaircycletimeforLAVATwas182days.

RepaircycletimeforMK48reducedto82days.RepaircycletimeforLAV25reducedto124days.RepaircycletimeforMK14reducedto59days.RepaircycletimeforLAVATreducedto122days.

USNavalAviationDepot,CherryPointAircraft,Engines&ComponentsRepairandOverhaul

160,500hourspermonthproducedin2010.

Laborratenotcompetitivein2010.

178,750hourspermonthproducedin2011(11%increase).$18/hrlaborratereductionin2011.

USNavalShipyard,PearlHarborSubmarineMaintenanceandRepair

Jobcompletionratewas94%.On-timedeliverywaslessthan60%.Costperjobwas$5,043.

Jobcompletionrateincreasedto98%.Increasedon-timedeliveryto95+%.Reducedcostperjobto$3,355,a33%reduction.Overtimedroppedby49%,a$9Msavinginthefirstyear.

USNavy,FleetReadinessCenterSoutheast,P-3AircraftMaintenanceandUpgrades

Produced6aircraftin2008. Produced9aircraftinthefirst9monthsof2009.



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BEFORE AFTER

ValleyCabinetWorksCustomFurnitureDesign&Manufacturing

Struggledtocomplete200projectsperyear.Revenueswereflat,businesswasjustbreakingeven.

Completed334projectsinthefirst9months.Revenuesincreasedby88%andprofitsby300%.

VerintCustomizedSoftwareDevelopment

Completedlargeprojectsin298days.Completedsmallprojectsin226days.Throughputwas20projectsperquarter.

Completedlargeprojectsin189days(37%reduction).Completedsmallprojectsin151days(33%reduction).Throughputincreasedto30projectsperquarter.

VonArdenneEquipmentforManufacturingSolarPanels,Engineer-to-Order

Revenuesof€130M.Profitsof€13M.Cycletimewas17weeks.On-timedeliverywas80%.

Revenuesof€170M.Profitsof€22M.Cycletimereducedto14weeks.On-timedeliveryimprovedto90%.

VotorantimProcessPlantTurnaround(NickelSmelting)

Projectswerelateandoverbudget. Project1deliveredontime.Project2delivered1dayearlier(with10%extrascope).Actualcostwas96%ofplannedbudget.

Ø Shingo GoldØ Franz Edelman (a.k.a Super Bowl of Operations Research)ØAir Force Chief of Staff Excellence

350Customers

including Airbus, Delta Air Lines, Medtronic, Siemens and Terumo

Medical Systems

10%-30%Productivity Gain

20%-50% Faster Cycle Time

$6+BBottom Line Impact

Awards



23

VALUE OF AGILE: RISK REDUCTION

SPRINT1

SPRINT2

SPRINT3

RISK

PROJECTPROGRESS


24

BENEFITSOF“FOCUSANDFINISH”FAROUTWEIGHTHEBENEFITSOFBUFFEROPTIMIZATION

NOTENOUGHTASKSINACHAINTOTAKEADVANTAGEOFAGGREGATION;“HIDDEN”SAFETIESSOUNDSACCUSATORY

CCPMAND2-TIEREDTASKSENABLEREAL-TIMESCHEDULING

BUFFER OPTIMIZATION OR “FOCUS & FINISH”?


25

THE CCPM BREAKTHROUGH• The fundamental limitation it overcomes• How to make the breakthrough complete• Focus & Finish• Value of Agile

“FOCUS & FINISH” TECHNIQUES FORLEVERAGING THE BREAKTHROUGH• Project planning• Pipeline planning• Resource planning• Execution practices

IMPLEMENTATION• Exactly what buy-in’s are required• When and why you need software

MASTERCLASS AGENDA


26

RESOURCEDENSITY

THRO

UGHPU

T

RESOURCEDENSITY

MoreResourcesperTask⇒ FasterCycleTime

RESOURCEDENSITY

#OFWORK

STRE

AMS

MoreResourcesperTask⇒ FewerActiveWork-Streams

Throughput=NumberofActiveWork-Streams÷ CycleTimeofEachWork-Stream

ESTIMATING THE IMPACT OF FOCUS & FINISH


27

SO, HOW MUCH IMPROVEMENT CAN YOU EXPECT?

RESOURCEDENSITY

THRO

UGHPU

TWheremost

organizationsareWherethey

canbe

DOYOUHAVEA. Moreworkthanpeople?B. Morepeoplethanwork?


28

FOCUS & FINISH EXAMPLE: ENGINEERING

§ All 6 sections of the fuselage were being developed simultaneously§ Projected engineering lead time was 9 months§ 60 engineering resources were split among all 6 sections for the entire project§ 20 management and support resources were shared by all sections§ Wanted to achieve the same lead time, but with lower engineering cost

SectionsofaBoeing737fuselageAn aircraft systems supplier with full engineering responsibility for the 737 fuselage.


29

10engineersx9months

10engineersx9months

10engineersx9months

10engineersx9months

10engineersx9months

10engineersx9months

20engineersx3months 20engineersx3months20engineersx3months

20engineersx3months 20engineersx3months20engineersx3months

20overheadx9months

20overheadx9months

FOCUS & FINISH EXAMPLE, CONTINUED

EngineersReducedfrom90to60!


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5d

5d5d

9d

9d9d

5d 5d

9d

9d9d

SYNCHRONIZATIONTASKSWITCHING TEAMSIZING INTERACTIVEWORK MANAGEMENT

12d 5d

12d 5d

5d 5d

5d 5d

5d

5d5d

8 8 8

5d

5d5d

12d

12d5d

12d

12d5d

5d5d

5d

5d5d

5d

5d

5d5d

5d

5d5d

5d

5d5d

5d

5d5d

5d

5d5d

5d

5d5d

4

WaitQueue

LOCALSTAYBUSY

SHOWPROGRESS

GLOBALFOCUS&FINISH

IMPACTTASKSIP 2è 1

CT 17.5è 12.5

TP 2è 3

TASKSIP 2è 1CT 17è 10TP 2è 2.4


TASKSIP 2è 1CT 17è 10TP 2è 3


2 11 1

FORMS OF “SPREADING THIN” VS. “FOCUS & FINISH”


31

PROJECTPLANNING

2-TIEREDTASKS

FULLKITTING

COMPLETIONMILESTONES

PIPELINEPLANNING

PHASEBASEDPIPELINING

RESOURCEVS.WIP

CONSTRAINTS

RESOURCEPLANNING

SHAREDCAPACITY

LOGICALRESOURCEHIERARCHY

RESERVECAPACITY

EXECUTIONPRACTICES

FASTISSUERESOLUTION

BUFFERRECOVERY

FOCUS & FINISH TECHNIQUES


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USE CASES FOR 2-TIERED TASKS

USECASE DESCRIPTION1.INTERACTIVEWORK Continual flowof informationbetweendifferenttasks

2.INTERACTINGRESOURCES Back-and-forthhandoffs atahighfrequency

3.MINI-ASSEMBLIES Manyintegration pointsalongtheflowofwork

4.BATCHINGTOSAVESETUPS Avoid frequentsetup-up,teardown

5.ENFORCEANEXECUTIONSEQUENCE AnyofthemanytaskscanbedoneinparallelbutonlyacertainsequenceisbestforFOCUS&FINISH

6.FLEXIBLEEXECUTIONSEQUENCE Allowflexibilityin whattasktopickupnext

7.ROLLING-WAVE(AGILE)PLANNING Avalidend-to-endplanpossible at theprojectlevel,butdetailsareavailableonlyafewdaysorweeksout


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1. INTERACTIVE WORK EXAMPLE: TURBINE DESIGN

SITUATION• Continual flow of information between TURBINE, COMPRESSOR and CASING Designs

PROBLEM• Ensuring synchronized execution of parallel designs requires complex dependencies• Complex dependencies make the plan highly error-prone and impossible to keep up-to-date

SOLUTION• Group TURBINE, COMPRESSOR and CASING designs as subtasks under a BLADE task• Exercise “Release Control” for Tier-1 Tasks

BLADE2BLADE1

BLADE2BLADE1

BLADE2BLADE1

Subtasks

TURBINE

COMPRESSOR

CASING

TASK=BLADE1

Subtasks

TASK=BLADE2

• Projectisaboutimprovingturbinepowerandefficiency• Ideally,Turbine,CompressorandCasingshouldworktogether• However,ifCompressordesignisdelayed,TurbineandCasingtendtomoveforward


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1. INTERACTIVE WORK: ANOTHER EXAMPLE

SITUATION• Continual flow of information between design of CASTINGS and FABRICATED PARTS• CASTINGS are long lead time item whereas FABRICATED PARTS are short lead items

PROBLEM• Traditional PERT + “Silo Approach” attempts synchronization according to lead time

SOLUTION• Group a CASTING and its associated FABRICATED PARTS subtasks under one task• Even if it means that FABRICATED PARTS have slack in their execution flow

LONGLEAD

SHORTLEAD

CASTINGS1-3

CLIPS/MOUNTS/FASTNERS

CASTING1CLIPS

CASTING2MOUNTS

CASTING3FASTENERS

AssemblyStart

CASTINGLEADTIMEAssemblyFullKit

AllDesignsDoneMilestone

DesignGroup1

DesignGroup2

DesignGroup3


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2. INTERACTING RESOURCES

SITUATION• Work flows as shown above• PURPLE, RED and BLUE resource groups are supporting multiple streams of work

PROBLEM• Traditional PERT can cause different resource groups prioritize their work differently

SOLUTION• Group all steps as subtasks under one work-stream task• Assign PURLE, RED and BLUE resources to the work-stream task

REVIEWDRAWINGS REWORK REVIEW APPROVAL#1priorityforPURPLEResource

#4priorityforREDResource

#8priorityforBLUEResource

WORK-STREAM 1

WORK-STREAM 2

WORK-STREAM ..

REVIEWDRAWINGS REWORK REVIEW APPROVAL

REVIEWDRAWINGS REWORK REVIEW APPROVAL

WORK-STREAM1• Drawing• Review• Rework• Approval


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3. MINI ASSEMBLIES

SITUATION• Work flows as shown above, with hundreds to a few thousand PLATES per SHIP• All 3 PLATES “must-have” for fabricating SUB-SECTION 1, all 3 SUB-SECTIONS for SECTION 1 …

PROBLEM• Traditional PERT, even if accurately and perfectly planned, gets de-synchronized during execution

SOLUTION• Group all plates for a major assembly (a SECTION) as subtasks under one task• Group all subsections for a SECTION as subtasks under another task

CUTPLATE1FABRICATE

SUB-SECTIONACUTPLATE2CUTPLATE3

ListofallplatesFABRICATE

SUB-SECTIONB

FABRICATESUB-SECTIONC

FABRICATESECTION1

ASSEMBLESHIP

CUTALLPLATESFORSECTION1

FABRICATESECTION1

Listofallsub-sections


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4. BATCHING TO SAVE SETUPS

PUMPSAREA1

PUMPSAREA2

PUMPSAREA3

VALVESAREA1

VALVESAREA2

VALVESAREA3

PANELSAREA1

PANELSAREA2

PANELSAREA3

PIPINGAREA1

PIPINGAREA2

PIPINGAREA3

GEARSAREA1

GEARSAREA2

GEARSAREA3

SITUATION• A crane is required to stage heavy items; actual time to stage an item is not too long• However, setting up and tearing down a crane takes significant effort and time

PROBLEM• Traditional PERT +”Silo Thinking” causes the crane operator to setup and tear down the crane

multiple times within an area

SOLUTION• Group all individual items for an AREA as subtasks under one AREA task

STAGEAREA1

STAGEAREA2

STAGEAREA3

• Pumps• Valves• Panels• Piping• Gears


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5. ENFORCE AN EXECUTION SEQUENCE

SITUATION• The 9 flooring tasks shown above can be done in any sequence (parallel tasks)

PROBLEM• If an APARTMENT is not completely floored, it stops follow-on work in that apartment• As a result, you have 9 ROOMS stuck in execution

SOLUTION• Group all 3 ROOMS in an Apartment as subtasks under one task

APT1ROOMAAPT1

ROOMBAPT1

ROOMCAPT2

ROOMAAPT2

ROOMBAPT2

ROOMCAPT3

ROOMAAPT3

ROOMBAPT3

ROOMC

APT1

• ROOMA• ROOMB• ROOMC

APT2


APT3



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6. LEAVE EXECUTION SEQUENCE FLEXIBLE

SITUATION• The ideal sequence for designs is CIVIL -> MECH -> ELEC

PROBLEM• Actual sequence can change in execution depending on resourcing, technical and other factors• Keeping this sequence up-to-date is cumbersome if not impossible

SOLUTION• Group all 3 (CIVIL, MECH, ELEC) designs as subtasks under one DESIGN task

CIVILDESIGN

MECHDESIGN

ELECDESIGN DESIGN

• CIVIL• MECH• ELEC


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7. ROLLING-WAVE (AGILE) PLANNING

SITUATION• A software upgrade project has 8 months to get done; on-time completion is critical

PROBLEM• High level requirements known, but not the exact features (resources, task durations also unknown) • However, we still need a project and resource plan to ensure timely completion

SOLUTION• Create a project plan with tasks and resources at the functionality level• Fill in the features as they become known after design or customer feedback• Also adjust duration and resource estimates after the exact work is understood

DESIGN

• Logic• UI

DEVELOP

• FEATUREA• FEATUREB• FEATUREC

TEST

• SystemTest• UserAcceptance

DESIGN DEVELOP TEST

DESIGN DEVELOP TEST

MODULE1

MODULE2

MODULE3


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FULL KITTING

StopStopStopStopStop

InputsInputsInputsInputsInputs

CONCEPTPrepareallinputsbeforestartingaproject,sub-projectoraphase.

InputsInputsInputsInputsInputs


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T0 T3 T9T6 T12 T18 T20T15

Customization

PrepforAssemblyandTest

Pre-CouplingWork

DetailedEngineering

LongLeadEquipment

Post-Coupling,Testing,andWrap-up

WIP = 2

WIP = 3

WIP = 2

WIP = 1-3

WIP = 1-2

Customization DetailEngr.

Assembly,Testing,andWrap-up

PrepforAssy andTest

Full Kit Point

HoldforEquipment

Full Kit Point20w 10w 30w 10w 20w

WIP = 2 WIP = 1 WIP = 1 WIP = 2WIP = 3

• Up to 10 [Communication Satellites] Projects active at a time• Traveled Work (starting a phase without completing the previous phase)• Managers and Technical Experts spread too thin to answer problems

• Active WIP reduced to no more than 6 projects• FK ensure a phase starts only once all predecessor work is complete• Active CT reduced from 20 to 14 months (30%)

Full Kit Point Full Kit Point

BEFORE

AFTER

FULL KITTING + COMPLETION MILESTONES EXAMPLE


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EXERCISES FOR FOCUS & FINISH PROJECT PLANNING

[email protected]


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Approach1:WIP=6IndividualCycleTime=9daysTotalDuration=30days

DesignerCheckerDesignHeadFocus-and-finishwithCheckerandDesignHead

Legend:

Approach2:WIP=2IndividualCycleTime=3 daysTotalDuration=24days

EXERCISE 1


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OrderingofA;receiptofloaddata30days

OrderingofB;receiptofloaddata30days

OrderingofC;receiptofloaddata30days

OrderingofD;receiptofloaddata30days

OrderingofE;receiptofloaddata30days

OrderingofF;receiptofloaddata30days

OrderingofG;receiptofloaddata30days

OrderingofH;receiptofloaddata30days

PileLayout

5daysExcavationdrawings5days

Foundationdrawings5days

ColumnDrawings

5days Elevationdrawings

5daysPlinthbeamdrawings5days

Foundationdrawings:A5days

Foundationdrawings:B5days

Foundationdrawings:C5days

Foundationdrawings:D5days

Foundationdrawings:E5days

Foundationdrawings:F5days

Foundationdrawings:G5days

Foundationdrawings:H5days

SlabDrawings

5days

Flooringdrawings

5days

Excavation

15days

Piling,Columns

45days

Foundations:GrFloor

30days

Slabcasting

30days

Walls,plastering,painting30days

10days

Foundations:Roof

30days

Flooring

30days

20days

EXERCISE 2: ORIGINAL PLAN


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Orderingandreceiptofloaddata:Set1

Orderingandreceiptofloaddata:Set2

DrawingsuptoColumns

DrawingsforRooffoundations

DrawingsforGr.Floorfoundations

Slab,Elevation,Flooringdrawings

Completionuptoallcolumns

60days

60days

15days 10days 10days 10days

SlabCasting

FoundationsonRoof

FoundationsinthegroundFloor

Walls,plastering,Painting

Flooring

• PileLayout• Excavation

drawings• Foundation

drawings• Columndrawings• PlinthBeam

drawings

• EquipmentE• EquipmentF• EquipmentG• EquipmentH

• EquipmentA• EquipmentB• EquipmentC• EquipmentD

• FoundationE• FoundationF• FoundationG• FoundationH

• SlabDrawings• Elevation

Drawings• Flooring

Drawings

55days 30days

• FoundationA• FoundationB• FoundationC• FoundationD

30days

30days

30days

30days

TotalDuration:170days

EXERCISE 2: TWO-TIERED TASKS


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Execution Full Kit Manager: PM• Contractor finalization• Identification of camp locations• Camp set-up• Stocking of tower material• Pick-up trucks, 4-wheel drive vehicles• Procurement of concreting material

FullKitting

Foundations

Towererection

Stringing

Survey

Foundationdrawings

BOQ

Materialprocurement

Manufacturing

Shipping

Ordering

TaskTypes

ProjectFK

100d 100d 20d45d

100d 100d 20d45d

100d 100d 20d45d

100d 100d 20d45d

Sequence:Zone1toZone4

Projectduration:520days

EXERCISE 3


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PROJECTPLANNING

2-TIEREDTASKS

FULLKITTING


PIPELINEPLANNING


RESOURCEVS.WIP

CONSTRAINTS

RESOURCEPLANNING

SHAREDCAPACITY


RESERVECAPACITY

EXECUTIONPRACTICES

FASTISSUERESOLUTION

BUFFERRECOVERY



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MULTI-PROJECT PIPELINE MUST RETAIN FOCUS & FINISH

REDRESOURCE

BLUERESOURCE

GOLDRESOURCE100%LOADING

1. Projectscanslideinandoutbuttheirtasksmuststaytogether

2. Pipelineplancan’tbejittery;naturaldelaysandchangesinexecutionmustnotaffectplannedprojectdates

3. Amechanismisalsoneededtoaccountformanagementcapacity

BEFOREPIPELINING

AFTERPIPELINING


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TIMELINE

NUMBEROFRESOURCES

• TheTetrisproblemo Exactfittingisimpossibleo Timelinesstretcho Stillleavescapacitygaps

• Executionwillbedifferentanyway• Timelineandcapacitygapswill

increaseinexecution

ProjectResourceType

MULTI-PROJECT PLANNING:PERILS OF TASK-BY-TASK SCHEDULING


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MULTI-PROJECT PLANNING: STAGGERING PHASES

I II III

I II III

I II III

REDRESOURCE

BLUERESOURCE

GOLDRESOURCE100%LOADING

1. Identifythephasethatconsumesredresourcesthemost

2. Staggerthecorrespondingphase


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MANAGEMENT

4

WaitQueue


1

IMPORTANCE OF MODELING MANAGEMENT CAPACITY

Solution:SpecifyWIPlimitsbyphases


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PROJECTPLANNING

2-TIEREDTASKS

FULLKITTING


PIPELINEPLANNING


RESOURCEVS.WIP

CONSTRAINTS

RESOURCEPLANNING

SHAREDCAPACITY


RESERVECAPACITY

EXECUTIONPRACTICES

FASTISSUERESOLUTION

BUFFERRECOVERY



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RM2

PM5PM4PM3PM2

§ There are two types of resources: Red and Blue § 21 Beads in the Red Bowl = 21 Red Resource Units§ 21 Beads in the Blue Bowl = 21 Blue Resource Units§ There are 5 projects§ Every project needs both the Blue and Red resources§ Actual resource requirement depends on dice rolls

21RedResources

21BlueResources

PM1

RM1

ILLUSTRATING THE NEED FOR RESOURCE FLEXIBILITY


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PM5PM4PM3PM2

§ Each PM gets 9 Resource Units (any combination of Red and Blue)§ PM’s roll the dice two times to find out actual resource requirements§ Projects that run short of either resource are late§ All PM’s are measured on On-Time Delivery

PM1

SIMULATION 1: RESOURCES ARE PRE-ASSIGNED

RM2

21RedResources

21BlueResources

RM1


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PM5PM4PM3PM2PM1

§ Use the dice roll from SIMULATION 1§ Resources are assigned after the dice rolls§ If enough resources are not available, projects are late§ All PM’s are measured on On-Time Delivery

SIMULATION 2: RESOURCES ARE FLEXIBILE

RM2

21RedResources

21BlueResources

RM1


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RESOURCE PLANNING: ASSIGN SPECIFIC RESOURCES AS LATE AS POSSIBLE

GENERICRESOURCES

PLANNING

CORETEAM

PROJECT/PHASESTART

SHAREDRESOURCES

TASKEXECUTION


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Backenddevelopers

(5)

StackA(3)

StackB(4)

TomAshokChen

TomAshokMonicaBob

LOGICAL RESOURCE HIERARCHY


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RESOURCE1

RESOURCE2

RESOURCE3

100%

RESERVE CAPACITYUSES• ProtectiveCapacity• Non-ProjectWork• Drop-inProjectsCANBERECLAIMEDIFNOTUSED


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PROJECTPLANNING

2-TIEREDTASKS

FULLKITTING


PIPELINEPLANNING


RESOURCEVS.WIP

CONSTRAINTS

RESOURCEPLANNING

SHAREDCAPACITY


RESERVECAPACITY

EXECUTIONPRACTICES

FASTISSUERESOLUTION

BUFFERRECOVERY



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FAST ISSUE RESOLUTION TECHNIQUES

• WORKSHOPMODE• HELPDESK• SETCALENDARFORREVIEWS,

BUTFLEXIBLECONTENT


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BUFFER RECOVERY

Don’tparallelize!Infact,serializemore.


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TAKEAWAY

ImprovementslargelyresultfromFocus&FinishratherthanCCPM.

CCPMsolvestheproblemofkeepingplansaliveinexecution.

Focus&FinishcanbeimplementedwithoutCCPMforsmallprojects/teams.

project portfolio planning & scheduling masterclass

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