oded cohen_ccpm_10 tocpa_feb 2014_india
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Oded Cohen_CCPM_10 TOCPA_Feb 2014_IndiaTRANSCRIPT
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10th International Conference of the TOC Practitioners Alliance - TOCPA
Feb 21-22, 2014 Noida, India
10th International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
Advanced Issues of CCPM
Oded Cohen TOC Strategic Solutions, Israel22, February 2014
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10th International Conference of the TOC Practitioners Alliance - TOCPA
Oded Cohen
Oded has over 35 years of experience in developing,teaching and implementing TOC methodology,solutions and implementation processes workingdirectly with Dr. Goldratt all over the world. Among thecountries to which Oded brings his expertise are theUSA, Canada, Japan, India, China, the UK, Poland,Russia, Ukraine, Colombia, Chile, Peru, Turkey andmany others.
Oded has authored multiple TOC articles andcontributed to numerous TOC books.
Oded in the is the author of Ever Improve A Guide toManaging Production the TOC Way, published in June2010. Oded co-authored the book Deming & Goldratt:The Theory of Constraints and the System ofProfound Knowledge The Decalogue.
Together with Jelena Fedurko Oded has co-authoredthe book Theory of Constraints Fundamentals.
Oded is International Director of TOC StrategicSolutions Ltd and Founder and Co-President ofTOCPA.
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10th International Conference of the TOC Practitioners Alliance - TOCPA
Introduction the U Shape and CCPM
Direction of the solution - Managing Flow the TOC Way
Time Buffers
The General Structure for the CCPM Solution
Advanced topics in Planning
Advanced topics in Execution
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Contents
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10th International Conference of the TOC Practitioners Alliance - TOCPA
Introduction
Practitioners raise practical issues along the lines of:
How to deal with specific situations?
Issues that deal with technicalities as well as managerial and human
interaction
Where do we find the answers?
The beauty of the TOC methodology is that every issue associated with
the solution has its own logical place :
either in the What the knowledge that is captured by the
U-Shape
or in the How - which is captured in the procedures and the
implementation plans.
Advances issues of CCPM
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10th International Conference of the TOC Practitioners Alliance - TOCPA
TODAYTHE PAST THE FUTURE
TIME
P
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CURRENT LEVEL
TARGET LEVEL
The Managerial ChallengeImprove the performance of the system
There is a strong belief that the system can perform better up to the Target Level
TARGET LEVEL
The GAP
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Improvement Solution
Low Performance
Measurements
Low Performance
Measurements
What to Change?
Which parts of the
system have to
go!
C
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High Performance
Measurements
High Performance
Measurements
What to Change
to?Which new parts must
be introduced
F
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Current SystemStopped/Replaced
Current System
Stay
ProposedSolution
New
Improved performance
Understanding the problem Developing the solutionPIVOT
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10th International Conference of the TOC Practitioners Alliance - TOCPA
Understanding the ProblemCurrent Reality
Core Problem
A conflict diagram - Core Cloud
Core Problem
A conflict diagram - Core Cloud
DD
DDCC
BB
AA
D
Take
corrective actions
that compromise
project budget
commitments A
Run projects
successfully
B
Ensure the project
is on-time
and in full
(according to specs)
C
Protect budget
commitments
D
Do not take
corrective actions
that compromise
project budget
commitments
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10th International Conference of the TOC Practitioners Alliance - TOCPA
The Direction of the Solution:Use the TOC Pivot to Better
Manage the Flow
Focus-Flow
PIVOT
TOC
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The TOC Pivot
Managing the TOC Way:
The Basic Assumptions The Flows within the system The Constraint Types of Constraints Managing through the Constraint The Five steps of Focusing
PIVOT
TOC
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The Flows of a
Commercial Business
Process flow $Goal units
Management / Workforce
The Goal: To make money now and in the future
InformationFlow
DecisionsFlow
Blocking factor
PIVOT
TOC
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TODAYTHE PAST THE FUTURE
CONSTRAINTS factors or elements that determine
how much the system can accomplish
The GAP
Block
Lift
What prevents us from
achieving the goal?
PIVOT
TOC
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The TOC Pivot Managing Constraints
PIVOT
TOC
TODAYTHE PAST THE FUTURE
The
GAP
Block
Lift
What is the constraint of the project management?When does the system create value for the goal of making more money?
The shorter is the time to complete the project the better!At the completion of the project Throughput is generated and money invested is starting to be returned!Conclusion: Projects have the TIME constraint.
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Flow is characterized as dependent activities (tasks) coupled with statistical fluctuations
The TOC Way for managing Flow is by using Buffers for Planning and Buffer Management for controlling and monitoring the Execution of the plans.
A TOC Buffer A mechanism to absorb statistical fluctuations as well as to provide management with early signals that the process is in danger of going out of control (and hence are under threat of not achieving the goal/purpose of the system).
Please note contingency is not a TOC Buffer!13
Managing Production Flow
the TOC Way
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Buffer Management a mechanism that informs management about the true status of the flow though the continued update of the buffer situation as compared with the plan.Buffers are used during the execution are used for:1. Setting up the priorities for assigning resources to perform
jobs 2. Prompting recovery actions to ensure enough buffers for the
rest of the flow3. Proper sizing of the buffers through Dynamic Buffer
Management or managing PLT Production Lead Time4. Identifying reoccurring problems in the flow and eliminate
themBuffer management is always oriented to the future.
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Buffer Management
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F
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TOC Direction of Solution
CCPM Critical Chain Project Management:
The TIME constraint of the project is
presented through the Critical
Chain the longest chain of
dependent activities. Managing
the project through the CC is
geared to finish the project in a
safe and quick way
CCPM Critical Chain Project Management:
The TIME constraint of the project is
presented through the Critical
Chain the longest chain of
dependent activities. Managing
the project through the CC is
geared to finish the project in a
safe and quick way
TOC direction of solution
TOC direction of solution
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Process flow Goal units
Management / Workforce
InformationFlow
DecisionsFlow
1
% Chain Complete Production/Operation Buffer
FGBuffers
InformationFlow
Project Buffer
Managing the FLOW
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A Buffer that it measuring units of timeThe time buffer is added at the end of a chain of tasks.Project Buffer at the end of the Critical ChainFeeding Buffer at the end of a chain that integrated into the critical chain
Time Buffer For CCPM
Feeding Buffer - FBProject Buffer - PB
W16
B10 M16 C20G10
M16
Over 100%
Buffer Consumption
Full Buffer Full Buffer
Buffer Consumption
Project Buffer FB
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The general structure of a TOC Solutions for Managing Projects
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The General Structure of
TOC CCPM Solution
Project Planning
Injections 2-4
Mindset:Customer orders
are the Prime Driver the Drum
Injection 1
Tactics: Project Organization is on CCPM
Project Execution Control
Injections 5-9
Strategy:
The Project is On Time, In Full & Within Budget
PlanningSetting up the System Execution Control
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DE
Inj
Injection Flower
IPImplementation
Plan
The Solution Design
What
HowProcedures &
Implementation Plan
Inj -Injection (essence)
UDE Undesirable Effect
DE Desired EffectNBR
Negative Branch
Reservation
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TOC InjectionsTOC Injections
Low PerformanceLow Performance
UDE
CCPMCCPMPIVOTTOC
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Existing Feature
UDE
Existing Procedure
Understanding the Injection
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Overview of the TOC Solution for Project Management
CCPM
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Tactics:The Project organization implements Critical Chain project management
Mindset:
Customer orders
are the
Prime Driver
the Drum
Planning
Injections 2-4Execution Control
Injections 5-9
TOC Solution for
Single Project Management
CCPM-Injection 1 Achievement of the delivery commitments is
established as a Prime Measurement for
managing project environment
PlanningSetting Up Execution Control
Commitment & Measurements
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10th International Conference of the TOC Practitioners Alliance - TOCPA
Tactics:The Project organization implements Critical Chain project management
Planning
Injections 2-4Execution
Control
Injections 5-9
CCPM -Injection 4
Buffers are inserted
in strategic points
CCPM- Injection 2
Project Planning Diagrams are in place
with tasks resourced and estimated for
duration (while estimates of durations
are challenging but achievable)
CCPM-Injection 3
Critical Chain is
determined through
resolving resource
contention
Mindset:
Customer orders
are the
Prime Driver
the Drum
Injection 1
TOC Solution for
Single Project Management
Project Plan BuffersCritical Chain
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10th International Conference of the TOC Practitioners Alliance - TOCPA
Managing the Project Planning
The TOC way
What does it mean?
Managing Projects through CCPM means that project managers handle the planning phase of the project in a different way (to what they have done until now)
There are three parts to the planning procedure containing:
Parts that stay untouched Parts that are removed (*) New parts that are introduced
(*) Procedures -the formal and the informal ways that are used during planning
Current
SystemStopped/
Replaced
Current
System
Stay
ProposedSolution
New
Improved
performance
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10th International Conference of the TOC Practitioners Alliance - TOCPA
Managing the Project Planning
The TOC way
Parts that have to be removed
Project Management is about managing the flow of the project and bringing it to the successful completion (time, money and specifications)
Current
SystemStopped
/Replace
d
Current
System
Stay
ProposedSolution
New
Improved
performance
The specs are the responsibility of the task performers and their organization (under the resource manager or subcontractor)
The money aspect is subject to the internal processes and procedures of the company (SOP).
The TOC way suggest that the project manager should focus on the time aspect of the project.
Hence the project plan should be devoted only to managing the time!
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10th International Conference of the TOC Practitioners Alliance - TOCPA
Project Planning the TOC way
Parts that have to be removed/stopped
The project plan is not for: Planning resource load Budgeting Controlling the pay to subcontractorsIt is just for managing TIME!
Current
SystemStopped
/Replace
d
Current
System
Stay
ProposedSolution
New
Improved
performance
Therefore: Task duration is the estimation elapsed time from start to
completion. Task duration not less than 1 day and not more than 5% of
the project length. Project plan is not To Do List every task is for concrete
deliverable. Number of tasks in the project should be less than 300. No fractional resource, no team, no specific resource just
skills, enough capacity for the majority of resources Few CCR if at all!
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Criteria for a Good Project Plan
1. Providing financial benefit by the successful completion of the project on time, within budget and according to the promised specification the project generates Throughput for the contractor of the project.
2. Realistic the plan does not contain conditions that are known to be unrealistic (such as resource loading over 100% of available capacity).
3. Immunized against disruptions (Murphy and uncertainty).
Injection 1
Injections 2-3
Injection 4
Managing the Project Planning
The TOC way
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The quality of the Project Plan:
The quality of the project plan is critical for the implementation of the planning phase.
In reality any mistake in the planning is caught at the execution phase. However, correcting the mistake are expensive.
The plan must reflect the views of the key stakeholders of the project.
Technically the project should go through rigorous check to ensure the structure is sound and is ready for identifying Critical Chain and applying the Buffers.
Managing the Project
Planning the TOC way
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CC Pulse project evaluation
Before planning phase CC Pulse evaluates the
project network.
Problems highlighted in red text must be fixed
before next step.
Problems highlighted in bold text are
recommended to be fixed.
Project Planning
Example
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Injection 2 Project DiagramsNew specifications Existing project plans are subject to rigorous logical checking and ambitious time estimations.
Injection 3 Critical Chain New conceptReplacing critical path of the traditional project management with Critical Chain removing resource contention.
Injection 4 Buffers New conceptConscious and open provision for additional time to protect from uncertainty.
Planning Injections 2-4
TOC Injections
TOC Injections
Low Performance
Low Performance
UDE
TOC Direction of solution
TOC Direction of solution
PIVOT
TOC
Existing Feature
UDE
Existing Procedure
Planning Injections are NEW features of project management
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10th International Conference of the TOC Practitioners Alliance - TOCPA
Execution ControlInjections 5-9
Tactics: The Project organization implements Critical Chain project management
CCPM-Injection 8
Buffer penetration reasons are
reviewed periodically for POOGI
CCPM-Injection 5 Tasks are performed
according to the status of their
corresponding buffers through using Buffer
Management
CCPM-Injection 6Resource
availability is monitored in
anticipation of a new planned
task
CCPM-Injection 7
BM for recovery
actions is in place
CCPM-Injection 9Resources
are monitored
as potential Critical
Resources
TOC Solution for Single Project Management
Look ahead CCRsPOOGIRecoveryReport & priority
PlanningInjections 2-4
Mindset:Customer orders
are the Prime Driver the Drum
Injection 1
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Criteria for a Good Execution Control
1. Priority the process of assigning resources should be linked to the overall importance of the project and its own progress.
2. Recovery the execution processes direct management in taking actions that bring projects to be back on course for on-time completion.
3. POOGI - the system provides statistics to enable management to continually learn and improve planning and execution control.
Injections 5-6
Injection 7
Injections 8-9
Managing the Project Execution
The TOC way
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Injection 5 Resource assignment based on buffer penetration New concept
Priority is given according to the predicted completion of the project as compared to the status of the other projects.Injection 6 Monitoring resource availability New ConceptProject managers get early warning about the coming tasks to ensure that the tasks can start without delays.
Execution Control Injections 5-9
Execution Control Injections are NEW features of project management
Injection 7 Recovery actions early enough New concept
Managers in the project get assessments of the project completion and prompt to take special
unplanned actions (affordable and not expensive) to reduce the risk of the project not
completing on time.
Injection 8 Statistics for continuous improvement New concept
A formal method to facilitate systemic learning through the use of statistics on blockages to
point management to areas that can improve future projects.
Injection 9 Critical resources New approach
Once certain resources are identified to be obstructing the flow of projects,
a special attention is given to properly utilizing and managing them.
TOC Injections
TOC Injections
Low Performance
Low Performance
UDE
TOC Direction of solution
TOC Direction of solution
PIVOT
TOC
Existing
Feature
UDE
Existing Procedure
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10th International Conference of the TOC Practitioners Alliance - TOCPA
DD DD
CCBB
AA
TOC InjectionsTOC Injections
Criteria for good solutions:- Improve performance
measurements of the function- Improve performance of other
functions - Improve the company bottom-line
TOC Detailed Solution Design
Low Performance Measurements
Low Performance Measurements
UDE
UDE
UDE
UDEUDE
UDE
High Performance Measurements
High Performance Measurements
DE
DE
DE
DEDE
DE
TOC direction of solution
TOC direction of solution
NBRs
PIVOTTOC
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