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The Quick and Dirty Guide to Implementing Critical Chain

Speaker: Charles Jessup

Welcome to the PMI Houston Conference & Expo and Annual Job Fair 2015

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• Q&A will be taken at the close of this presentation

• There will be time at the end of this presentation for you to take a few moments to complete the session survey. We value your feedback which allows us to improve this annual event.

What is Critical Chain?

• Critical Chain Project Management (CCPM)

• Based on Eli Goldratt’s book Critical Chain • Project Management philosophy based on

the idea that we don’t know everything • A way to plan for and manage uncertainty

PIPELINING Limit the amount of work in execution

Stagger project starts

3 Rules of Critical Chain

BUFFER MANAGEMENT Synchronize priorities

Use buffer charts to proactively identify problems

BUFFERING Don’t turn task estimates into commitments Create aggressive plans with 50% buffers

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Vicious Cycle

Uncertainty, Dependencies

Start new work ASAP

High WIP

Multitasking

Fixed date schedules, multiple hard milestones

Hire expediters to prioritize

Padding duration estimates

Parkinson’s law, Student syndrome

Delays

Prioritize based on buffers

Flexible, Buffered Schedule

Limit WIP, Pipeline

PIPELINING Limit the amount of work in execution

Stagger project starts

3 Rules of Critical Chain

BUFFER MANAGEMENT Synchronize priorities

Use buffer charts to proactively identify problems

BUFFERING Don’t turn task estimates into commitments Create aggressive plans with 50% buffers

Phase 1- Pipelining

One minute multitasking exercise

Multitasking is a lie 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

T2, 5 days

T1, 5 days Project Plan

5 10 15 20 Days 0

T1, 10 days

T2, 10 days Multitasking (ideal case)

No Multitasking

Project finishes on ~Day 10

T1, 5 days

T2, 5 days

Project finishes on ~Day 10

What happens when one person multitasks?

R, 5 days Y, 5 days

R, 5 days Y, 5 days

Project 1

Project 2

5 10 15 20 Days 0

Y, 10 days

Y, 10 days

R, 10 days

R, 10 days

Project 1

Project 2

Y, 5 days

Y, 5 days

R, 5 days

R, 5 days

Multitasking

No Multitasking

Project 1

Project 2

Both projects finish on ~Day

20

Both projects finish on ~Day 15

First project delivered on ~Day 10

What happens when 2 people multitask?

Ok, I agree multitasking is bad. What can I do about it?

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Work Assignment Board

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Work Assignment Boards in Action

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How to run a Work Assignment Board Meeting

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How to Sustain a Work Assignment Board

1. High Visibility 1. Make it large, put it in a hallway. 2. Physical, not electronic.

2. Regular Updates 1. Each person updates their row on the

board 2. Update boards before meetings, not

during 3. Regular Meetings

1. Weekly for most groups, depends on pace of work

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Phase 1 (Pipelining) - Summary

• Problem – Multitasking causes delays through – Switching Costs – Handoff delays

• Solution – Work assignment boards – Reduce Multitasking – Improve communication

Phase 2: Buffering

How to have your project finish on-time, even when things go wrong

Murphy’s law

Uncertainty

• What is uncertainty?

• How many people have been on a project that had an unexpected delay?

• Anyone been on a big project that did not have an unexpected delay?

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Buffers - concept

• How should we deal with that uncertainty?

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What does a project buffer look like?

After

Before

How to Buffer a Schedule

1. Buy-in 1. Management Buy-in 2. Customer Buy-in

2. Mechanically buffer the schedule 3. Teach people to work with a buffer

1. Change the mentality from “work to due date” to “work on highest priority as fast as I can”

Single Project Buffer Chart

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Phase 2 (Buffering) - Summary

• Problem – We know things will go wrong, but we don’t know where and when they will go wrong

• Solution – Buffered Schedules

– Mechanically simple, just add a buffer at the end

– Get buy-in and focus on changing the behaviors

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Phase 3: Buffer Management

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R, 5d Y, 5d

Project 1

Project 2

5 10 15 20 Days 0

B, 5d

Y, 5d R, 5d

B, 5d

Priorities:

Y, R: Proj 1, Proj 2 B : Proj 2, Proj 1

20 days to complete both projects First delivery in 15 days

Synchronized Priorities R, 5d

Y, 5d Project 1

Project 2

B, 5d

R, 5d Y, 5d

B, 5d

15 days to complete both projects First delivery in 10 days

Problem: Poor Synchronization across projects

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How can I use a Portfolio Buffer Chart?

Shell 15K OWIRS

BPTH WI (THWI UTA)

STAR Program 2013 Heidelberg 10K

Chevron Agbami

Jubilee FFD

Europa A8

LLOG MC 546 (TMC) Stones (1)

Stones (2)

LLOG MC546 (Subsea Distribution)

Julia (Topside Skids)

Julia (TMC #1)

BPTH WI (THWI EFL)

Europa A9

0%

20%

40%

60%

80%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Buffer Consumed

Critical Path Consumed

Division Portfolio Buffer Chart 7/22/2013 Last updated:

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How can I make a Buffer chart?

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How to use a Buffer Chart

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How to Sustain a Buffer Chart

1. High Visibility 1. Make it large, put it in a hallway. 2. Physical posters, not electronic.

2. Regular Updates 1. A specific person is responsible for

updating the buffer chart 2. Updated on a regular basis (Every

Tuesday, 1st of the month, etc.) 3. Regular Meetings

1. Weekly for most groups, depends on pace of work

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Phase 3 (Buffer Management) - Summary

• Problem – Unclear priorities across projects leads to resources that are spread thin and ultimately to delays

• Solution – Buffer Management – Create a portfolio buffer chart allowing you

to see relative progress on projects – Implement regular meetings to align

priorities across projects – Get buy-in and focus on communicating

clear priorities

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Conclusion

PIPELINING Limit the amount of work in execution

Stagger project starts

3 Rules of Critical Chain

BUFFER MANAGEMENT Synchronize priorities

Use buffer charts to proactively identify problems

BUFFERING Don’t turn task estimates into commitments Create aggressive plans with 50% buffers

Implementation Plan 1. Critical Chain 101 Training 2. Work Assignment Board

– Put board in a highly visible location – Establish regular meetings at board

3. Rebuffer Plans – Get buy-in of stakeholders and management. – Add critical chain buffer.

4. Create Buffer Chart – Put buffer chart on wall or everyone to see. – Set up regular meetings to review & align

5. Ensure sustainment – Metrics – Add Critical Chain Training for new hires and new managers

Questions?

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Contact Information • Speaker: Charles Jessup • Company • Phone: • E-mail: Charles.Jessup@gmail.com

Thank You