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2012 Skip Reedy Cruise Control for Projects Skip Reedy Critical Chain Project Management Theory of Constraints Jonah TOCICO Certified Critical Chain Project Management 1

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2012 Skip Reedy 2 There is no reliable way to measure project status until its too late. Standish Group Chaos Report

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2012 Skip Reedy Theory of Constraints Every system has something that limits it. If you identify the system constraint and help it, you get more output from the system. The constraint of a project is the Critical Chain. Help it to get done faster and the project gets done faster. Dr Eli Goldratt Critical Chain Project Management 3 This kink is the constraint of this simple system.

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2012 Skip Reedy A GUIDE TO THE PROJECT MANAGEMENT BODY OF KNOWLEDGE Chapter 6 Project Time Management Critical Path Method (CPM) 2 + pages Critical Chain Project Management (CCPM) 1 + pages PMI 4

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2012 Skip Reedy 39 777-300 ER Challenges & Results Load data > 2 months late Experienced lead engineers resisted CCPM for more than 6 months 39 26% faster than its very aggressive schedule 50% reduction* in engineering errors All end-items shipped on time Improved engineering release compliance ~15% * Relative to the last 777 derivative: 777-300

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2012 Skip Reedy 40 777-200 LR airframe design was completed 5 months earlier than a very aggressive schedule The Next Derivative with CCPM

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2012 Skip Reedy Be EARLY, NOT LATE Critical Chain is EARLY 3 Ideas to Use Today 1.The Critical Chain is the constraint. Focus on it so its always being worked. 2.Pink Paper Pyramids keep the distractions away. 3.Ask 3 Status Questions: Whats going on? What are you doing about it? and Do you need any help. 41

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42 Questions?

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2012 Skip Reedy 43 Skip is certified in Critical Chain Project Management. He is a member of the Project Management Institute and the Theory of Constraints International Certification Organization. He was with Boeing Commercial Airplanes in Seattle as a Manufacturing Engineer and Design Engineer for 8 years and then as an internal CCPM consultant for six years. For the last eight years he is an independent project management consultant with CCPM Consulting LLC. He is a mechanical engineer from the University of Detroit with an MBA from Loyola University of Chicago. He is a Theory of Constriants Jonah and is certified by TOCICO. Skip can be contacted at 480-648-1862 skip@ccpmconsulting.com http://ccpmconsulting.com

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2012 Skip Reedy 44 Marine Corps Logistics Base TOC & CCPM implementation 8 minute video is available at http://www.ccpmconsulting.com/marine-corps-logistics-base-albany-ga/

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2012 Skip Reedy Traditional Project Management Estimates become NOT LATE Task Estimates Confident estimates are long enough to get the work done, allowing for typical delays and problems. Probability as a Number An estimate is not a prediction. We dont know how long anything will take. Its a single number for a task that has the possibility of a range of durations. Crazy Project Management Software Project management software schedules estimates with start and end dates. End dates become due dates, and deadlines. Deadlines must be met. Convoluted Normal Behaviors Parkinsons Law, the Student Syndrome, Multitasking, Deadlines reinforce be NOT LATE. LATEs, not EARLYs Tasks are rarely EARLY and often LATE. LATE tasks push successors to be LATE. LATEs accumulate. EARLYs dont. Allowances are Ineffective Allowances for delays and problems (Safety, Contingency, or Buffer time) are effective against being NOT EARLY and NOT LATE. This safety is wasted. Increasing the safety makes projects longer LATE tasks encourage future estimates to be longer. Longer estimates make longer projects. Longer projects struggle to be NOT LATE. Safety in tasks creates longer projects without improving on-time results. 45

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2012 Skip Reedy 46 Fold in 110 # card stock works well. Using a straight-edge, run a dull knife along/between the fold lines. Original Pink Pyramid Suggested warnings: What I am working on is more important than whatever it is you are about to ask me. So dont do it! If you are delivering money, please interrupt. Management Chain Project Critical Skip Reedy For help call 480-648-1862 My brain is currently experiencing a bandwidth overload. If you intend to interrupt me, please call 911 first. I am presently in a mood most foul. Disturb at your peril. I already know what you are going to ask me. The answer is NO! Please do not disturb. Tape together close to the corners. Shameless Advertising purported to accomplish a goal. convoluted by human behavior and nt events and statistical fluctuations, A project is a combination of depende