Projects that Flow: More Projects in Less Time

By Uwe Techt

Projects can go over budget, exceed deadlines, or deliver restricted features and quality. This can result in economic damage for companies and their clients.The difficulties arise at source. Established metrics and management methods slow projects down by creating conflicts in operations and decision-making.

A radically new approach is needed; one that features? simple, constraint-oriented management,? clear, robust priorities,? company-wide rather than locally focused optimization,? a focus on speed, on ProjectsFlow.

Discover how you can:? complete more projects with the same amount of resources,? reliably deliver all projects to specs,? significantly shorten project lead times.

• Language: English
• Publisher: Ibidem Press
• Release date: Apr 1, 2014
• ISBN: 9783838267593

Book preview

9783838267593

ibidem Press, Stuttgart

Table of Contents

Acknowledgements

1 Introduction

2 Management summary: More projects in less time

2.1 Initial situation

Variability

Projects compete for resources

Efficiency before effectiveness

Parkinson’s Law

Summary of the initial situation

2.2 New approach for multi-project organizations

Reducing workload

Relay runner principle and explicit safety buffers

Synchronized operational priorities

2.3 Challenges in the change process

Part 1Current Reality in Multi-project Organizations

3 Unreliability and long delivery times

3.1 Damages through unreliability in project management

Coating plant

IT business

Plant engineering

Tool manufacturing

Conclusion

3.2 The implications of long project lead times

Example: Coating plant

3.3 Losses on internal projects

3.4 Are costs/specifications more valuable than time?

3.5 Benefits and uses of improvement

Example: Coating plant

4 Variability, Murphy’s Law, and harmful management mechanisms

Variability

Murphy’s Law

Effects of variability and Murphy’s Law

Caution

Harmful management mechanisms in the project business

5 WIP and resource allocation

5.1 The matrix (resources/projects)

5.2 Scarce resources/efficient use

Dilemma 1: Increasing or decreasing capacity

Dilemma 2: Make idle capacities visible or not?

Dilemma 3: Promise more than the department can deliver—or not?

5.3 Fighting for resources

5.4 The resource manager’s pressure to decide

5.5 Bad multitasking

5.6 Thinly spread resources

5.7 Desynchronization

5.8 Lack of focus and multitasking in management and support functions

5.9 High WIP creates long project durations and high costs

5.10 Immediate project launches

5.11 WIP vicious circle

5.12 Poor preparation and mistakes

5.13 Ailing projects have priority

6 Project planning and management

6.1 Deadlines and milestones

6.2 Safety buffers in the project plan

Buffer size

6.3 Parkinson’s Law

6.4 Resource allocation according to plan

6.5 Student syndrome

6.6 Vicious circle of safety buffers

6.7 Delays at points of integration

6.8 Early deliveries? Late deliveries!

7 Operation and decision conflicts

Employee: Include and use up safety buffers?

Project managers: Withdraw resources from other projects?

Resource managers: Increase capacity?

Resource managers: Show idle capacities?

Resource managers: Promise more than the business can achieve?

Resource managers: Allow or prevent BM/PBS?

Project vs. resource managers: Launch projects despite insufficient preparation?

Harmful effects

8 Worksheets and templates

8.1 The organization’s current situation

8.1.1 Project types

8.1.2 Your organization

8.1.3 Your project environment

8.1.4 Typical project size and duration

8.2 Project reliability

8.3 Implications: Damage to your business

8.3.1 Damages from unreliability

8.3.2 Damages from very long project lead times

8.4 Potential benefits

8.4.1 Benefits from absolute reliability

8.4.2 Benefits from significantly shorter project lead times

8.5 Need for action and obstacles

8.6 Management mechanisms

8.6.1 Single-/multitasking

8.6.2 Resource distribution

8.6.3 Resource planning

Names or skills

Specialists

Resource load according to project plan

8.6.4 Determining project budgets

8.6.5 Resource utilization

8.6.6 Additional resource demand

8.6.7 Synchronization

8.6.8 Management and support

Management

Specialists

Resources involved in earlier project phases

8.6.9 Launching projects or project phases

Project launch

Preparation

Project paths

8.6.10 Reliability during project implementation

8.6.11 Acceleration

8.6.12 Safety buffers in the project plan

8.6.13 Priorities

Strategic priorities

Operative priorities

Changing operative priorities

8.7 Operation and decision conflicts

8.7.1 Overview of dilemmas

Employee: Include and use up safety buffers?

Project managers: Withdraw resources from other projects?

Resource managers: Increase capacity?

Resource managers: Show idle capacities?

Resource managers: Promise more than the business can achieve?

Resource managers: Allow or prevent BM/PBS?

Project vs. resource managers: Launch projects despite insufficient preparation?

Dilemma:

Dilemma:

Dilemma:

8.7.2 Implications of operation and decision conflicts

8.8 Cause and effect

8.8.1 High WIP leads to long project durations and high costs

8.8.2 WIP vicious circle

8.8.3 Poor preparation and mistakes

8.8.4 Ailing projects have priority

8.8.5 Safety buffers in the project plan

8.8.6 Parkinson’s Law

8.8.7 Resource allocation according to plan

8.8.8 Vicious circle of safety buffers

8.8.9 Early deliveries? Late deliveries!

8.9 Conclusion

9 Summary and outlook

9.1 Variability

9.2 Projects compete for resources, vicious circle of WIP

9.3 Efficiency before effectiveness

9.4 Parkinson’s Law

9.5 Conclusion

9.6 Requirements for effective project and multi-project management

Part 2The Future in Multi-project Management

10 Core problem: Local optimization

Evidence that the paradigm of local optimization is invalid

Throughput

Costs

In summary

11 Solution: Top priority!?

12 Managing WIP

12.1 Staggering projects at the constraint

Identifying the constraint

Optimally using the constraint

Subordinating everything else to the decision (of optimally utilizing the constraint)

12.2 Management as a constraint

12.2.1 Variability/wandering constraint

12.2.2 Constraint in management

12.2.3 Integration

12.3 Virtual Drum

12.4 Benefits

12.4.1 Capacity/simple portfolio planning

12.4.2 Resolving resource conflicts/simple resource planning and management

12.4.3 More projects in less time/faster projects/increased capacity

12.5 Summary

13 Planning explicit safety buffers

13.1 Bundling safety buffers

13.2 Relay runner principle

13.3 How much safety buffer?

13.4 Project and integration buffer

13.5 An aside: Critical path and critical chain

13.6 In practice

13.7 Summary

14 Operational management with robust and synchronized tactical priorities

14.1 The necessity of tactical priorities

14.2 Requirements for tactical priorities

14.3 Identifying tactical priorities

14.3.1 Project progress

14.3.2 Safety buffer consumption and recovery

14.3.3 Project status/buffer index

14.3.4 Task priorities

14.4 Task management

14.4.1 Task lists

IP—In Process

NS—Not Started

NTBS—Not To Be Started

14.4.2 Task manager—daily routine

14.5 Project management

14.5.1 Task lists

IP—In Process

NS—Not Started

NTBS—Not To Be Started

14.5.2 Project manager interventions

14.5.3 Fever chart

14.5.4 Changes to the project plan

14.6 Effects on atmosphere and working relationships

14.7 Top management intervention

14.8 Project status

14.8.1 Escalated tasks

14.8.2 Flow trend

14.9 Warnings and cautions

WIP management is a prerequisite

Clients and suppliers can become the constraint

Systems support is required

14.10 Summary

15 PROJECTSFLOW®—Summary

Managing WIP

Explicit safety buffers

Synchronized tactical priorities/managing implementation

Conclusion

16 Worksheets and templates

16.1 Cause & effect

16.1.2 Planning explicit safety buffers

16.1.3 Operational management through robust and synchronized tactical priorities

16.1.4 The future in multi-project management

16.2 Resolved operation and decision conflicts

Employee: Include and use up safety buffers?

Project managers: Withdraw resources from other projects?

Resource managers: Increase capacity?

Resource managers: Show idle capacities?

Resource managers: Promise more than the business can achieve?

Resource managers: Allow or prevent BM/PBS?

Project vs. resource managers: Launch projects despite insufficient preparation?

16.3 Benefits

16.4 Negative side effects

16.5 Obstacles/stumbling blocks during implementation

Part 3Transformation

17 Introduction: Transformation

Cross-references and revision

18 From a conventionally run to a high-performance organization

Necessity (why the change is needed)

Objective (what we are trying to achieve with the change)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Phase 2: Integrating good preparation into daily life

Phase 3: Transforming management

Phase 4: Transforming management

Phase 5: Clients and suppliers

Phase 6: Increasing capacity

Caution! (what is often ignored but must absolutely be taken into account)

19 Phase 1: Reducing WIP

Necessity (why this phase is needed)

Objective (what we are trying to achieve with this phase)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Predicted effect (the specific effect that will be created by the change)

Caution! (what is often ignored but must absolutely be taken into account)

19.1 Step 1.1: Freezing projects

Necessity (why the step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Predicted effect (the specific effect that will be created by the implementation)

Caution! (what is often ignored but must absolutely be taken into account)

19.2 Step 1.2: Accelerating projects

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Predicted effect (the specific effect that will be created by the implementation)

19.3 Step 1.3: Defrosting projects

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Predicted effect (the specific effect that will be created by the implementation)

19. 4 Step 1.4: Starting new projects

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

19.5 Phase 1 Summary

Objective (what we are trying to achieve with this phase)

Path (how to reach the objective)

Predicted effect (the specific effect that will be created by the implementation)

19.6 Conclusion

20 Phase 2: Good Preparation

Necessity (why this phase is needed)

Objective (what we are trying to achieve with this phase)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Caution! (what is often ignored but must absolutely be taken into account)

20.1 Step 2.1: Thoroughly prepare active projects

Necessity (why this step is needed)

Objective (what we are trying to achieve with the change)

Assumptions (why it is possible—though not easy—to reach the goal)

Path (how to reach the objective)

Predicted effect (the specific effect that will be created by the implementation)

20.2 Step 2.2: Defining good preparation

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Predicted effect (the specific effect that will be created by the implementation)

20.3 Step 2.3: Dealing with worried clients

Necessity (why the change is needed)

Objective (what we are trying to achieve with the change)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

20.4 Phase 2 Summary

Objective (what we are trying to achieve during this phase)

Path (how to reach the objective)

Predicted effect (the specific effect that will be created by the implementation)

20.5 Conclusion

21 Phase 3: Transforming Planning

Necessity (why this step is needed)

Objective (what we are trying to achieve with this phase)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Caution! (what is often ignored but must absolutely be taken into account)

21.1 Step 3.1: Creating project network plans

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Detail vs. clarity

Path (how to reach the objective)

21.2 Step 3.2 Explicit safety buffers, critical chain

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Caution! (what is often ignored but must absolutely be taken into account)

21.3 Step 3.3: Staggering projects

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

21.4 Step 3.4: Integrating new projects

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

21.5 Phase 3 Summary

Objective (what we are trying to achieve with this step)

Path (how to reach the objective)

Expected effect (the specific effect that will be created by the implementation)

21.6 Conclusion

22 Phase 4: Transforming management

Necessity (why this phase is needed)

Objective (what we are trying to achieve with this phase)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Caution! (what is often ignored but must absolutely be taken into account)

22.1 Step 4.1 Progress reporting

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Expected effect (the specific effect that will be created by the implementation)

22.2 Step 4.2: Task management

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Expected effect (the specific effect that will be created by the implementation)

22.3 Step 4.3: Project management

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Expected effect (the specific effect that will be created by the implementation)

22.4 Step 4.4: Top management

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

22.5 Step 4.5: Adjusting speed

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

22.6 Phase 4 summary

Objective (what we are trying to achieve with this step)

Path (how to reach the objective)

Expected effect (the specific effect that will be created by the implementation)

22.7 Conclusion

23 Phase 5: Clients and suppliers

Necessity (why this phase is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Caution! (what is often ignored but must absolutely be taken into account)

23.1 Step 5.1: Mitigating and reducing harmful client influences

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

23.2 Step 5.2: Outsourced sub-projects

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Expected effect (the specific effect that will be created by the implementation)

23.3 Step 5.3: Fast and reliable suppliers

Objective (what we are trying to achieve with this step)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Caution! (what is often ignored but must absolutely be taken into account)

23.4 Phase 5 Summary

Objective (what we are trying to achieve with this step)

Path (how to reach the objective)

23.5 Conclusion

24 Phase 6: Increasing capacity

Necessity (why this phase is needed)

Objective (what we are trying to achieve with this phase)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Caution! (what is often ignored but must absolutely be taken into account)

24.1 Step 6.1: Improving processes

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

Predicted effect (the specific effect that will be created by the implementation)

24.2 Step 6.2: Developing resources

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

24.3 Step 6.3: Sprint

Necessity (why this step is needed)

Objective (what we are trying to achieve with this step)

Assumptions (why it is possible—though not easy—to reach the objective)

Path (how to reach the objective)

24.4 Phase 6 Summary

Objective (what we are trying to achieve with this phase)

Path (how to reach the objective)

24.5 Conclusion

25 Transformation process—Summary

Objective (what we are trying to achieve with this change)

Path (how to reach the objective)

Predicted effect (the specific effect that will be created by the implementation)

26 QuiStainable Change QuiStain® is a registered trademark of VISTEM GmbH & Co. KG.

26.1 Resistance to change

26.2 Requirements for significant improvement initiatives

26.3 WIP improvement

26.4 High speed implementation

27 Summary and Outlook

1. More efficiency through simple principles

2. Project portfolio and resource capacity management

3. Increasing capacity

Challenges in the transformation process

28 References

28.1 Reference list

28.1 Further reading

Acknowledgements

With the founding and development of the Theory of Constraints and Critical Chain Project Management, Dr. Eliyahu M. has put down the basis for my reflections and explanations.

Sanjeev Gupta and his team from Realization Technologies Inc. have repeatedly distilled and passed on the extensive experiences they have collected across the globe.

Jaideep Srivastav has allowed me deep insights into the dynamics of change processes.

Dr. Georg Angermeier has offered me helpful advice with many of my articles to ensure a reader-focused structure.

Claudia Simon, Jens-Oliver Schumacher, and Gerhard Stix have assisted me with the early versions of texts found in this book.

Rudolf G. Burkhard, Franz Nowak, and Wolfram Müller have always provided thoughtful feedback on my presentations and articles.

Claudia Simon and the VISTEM office team have supported me in every phase of the creation of this book, through many ups and downs.

My heartfelt thanks to all of them.

Uwe Techt

März 2015

1               Introduction

Projects can go over budget, exceed deadlines, or deliver restricted features and quality. This can result in economic damage for companies and their clients.

The difficulties arise at source. Established metrics and management methods slow projects down by creating conflicts in operations and decision-making.

A radically new approach is needed; one that features:

·         Simple, constraint-oriented management

·         Clear, robust priorities

·         Company-wide, rather than locally focused optimization

·         A focus on speed, on ProjectsFlow®

Discover how you can:

·         complete more projects with the same amount of resources;

·         reliably deliver all projects to specs; and

·         significantly shorten project lead times.

In Part 1, The reality of a multi-project organization, I describe the typical current situation of a multi-project organization, including:

·         Typical problems experienced in project management, their impact, and potential benefits of improvements

·         Interactions and cause-and-effect relationships

In Part 2, The future of multi-project management, you will find out under which