critical chain project management - training material extract of 1 day european course

Critical Chain Project Management

Will you dare to finish all your projects on time?

- Training material -

Paris, May12th 2016

Version 1.0

Factories, People & Results

3 Critical Chain Project Management – CCPM – Will you dare to finish all your projects on time?

Extract of Training material – Inter company session – 12th of May 2016 – Paris, France

© 2015 - 2016. Marris Consulting. All rights reserved.

Training CCPM V1.0 En Exctract 20151018

© Marris Consulting


1. Introduction

2. Overview of the Theory Of Constraints (TOC)

3. The project manager's problems and dilemmas

4. Multi-tasking game

5. Critical Chain planning rules

6. Critical Chain planning exercise

7. Project execution and new performance indicators

8. Necessary new behaviors

9. How to implement, references and examples

10. Conclusion

11. Annexes








Training facilitator: Philip Marris, CEO Marris Consulting

Consultant (warning!)

Renowned Theory Of Constraints specialist. 28 years of TOC experience. Started working

with the founder Eliyahu Goldratt in 1986.

Author of numerous articles on TOC and CCPM. Gives over 10 conferences a year

worldwide on these subjects.

Author of the very boring French textbook about TOC in manufacturing Le Management Par

les Contraintes (Ed. d’Organisation,1994, 1996, 2000, 2nd edition coming soon).

>25 years of experience helping over 150 companies in all industries. Over 25 project

management assignments mostly in New Product Development.

Creator of the French CCPM reference website: www.chaine-critique.com and curator of the

CCPM permanent news website http://www.scoop.it/t/critical-chain-project-management.

>15 years of experience in major consulting firms especially Cap Gemini Ernst & Young and

Bossard Consultants.

Founder and CEO of Marris Consulting based in Paris, France. Founded in 2004. Motto:

Factories, People & Results.

Introduction

http://www.chaine-critique.com/



http://www.scoop.it/t/critical-chain-project-management







http://fr.linkedin.com/in/philipmarris

http://fr.viadeo.com/fr/profile/philip.marris

http://www.twitter.com/pmarris








Training facilitator: Eric Robin, Senior Manager

French and software specialist (oops!)

Active in CCPM in France since 2002.

More than a dozen successful Critical Chain implementations in industrial and service

companies.

Conference speaker presenting Critical Chain since 2004: PMI, MPA, ENSAM, HEG, …

10 years of consulting assisting over 40 companies

Author of the Critical Chain chapter in Project Management reference book published by

AFNOR (the French norms organisation) in 2012

Management of numerous successful fixed time, fixed price software projects

Quality manager for several software editors

Master Degree in Business Intelligence and Project Management, CERAM

Introduction

http://www.gestiondeprojet.com/blog/wp-content/uploads/2008/11/piloter.jpg








1. Introduction









10. Conclusion

11. Annexes








The Theory Of Constraints gained its global recognition because of the success

of the best selling “business thriller” The Goal by Eliyahu Goldratt

Over 5 million copies sold in 26 languages. Mandatory

reading in most universities/MBAs/…

Written by Eliyahu Goldratt the founder of TOC & Jeff Cox.

The first book of its kind, a novel to explain a new approach

to management.

Chosen as one of the 25 most influential business books by

Time magazine in September 2011.

Used by Jeff Bezos, Amazon.com CEO, to build their Supply

Chain and redefine the company's goal.

Overview of the Theory Of Constraints (TOC)








Focus on improving the system constraints that determine overall performance

Factories, companies and other organizations inevitably have unbalanced

capacities; there is always a constraint somewhere in the system.

One hour lost on that constraint (the bottleneck)

= one hour lost for the system

= one hour less of finished goods (lost sales)

One hour gained on a non-bottleneck is an illusion.

Annual budgets are not what they claim (they are not balanced)

A dual view is mandatory: different rules for constraints and non-constraints

Sometimes referred to as the "99% - 1% focus"

i.e. more focused than the Pareto 80/20.

The sum of local optimums is not equal to the global optimum


It is no longer possible to distribute work equitably:

organizations are necessarily unbalanced








The 5 step process of on-going improvement of the Theory Of Constraints

1. IDENTIFY the system's constraint(s).

2. Decide how to EXPLOIT the system's constraint

3. SUBORDINATE everything else to the above decision.

4. ELEVATE the system's constraint

5. WARNING!!!!

If in the previous steps a constraint has been broken,

go back to step 1,

but do not allow INERTIA to become the system's constraint.

Note: Often called "The 5 Focusing Steps" or TOC's "Process Of On-Going Improvement" (POOGI).


Without investissements

in $ or in time

With investissements

in $ or in time

The most

difficult step

Easy to do in production

but not in projects








The different components of the Theory Of Constraints (TOC)


Theory Of Constraints (TOC)

Approach initiated by Eliyahu Goldratt

A systemic view seeking the global optimum

based on a dual view of constraints/bottlenecks & non-constraints

Drum – Buffer - Rope

Production Management

The importance of constraints,

DBR & S-DBR,

Focused approach, … [historical origin of approach]

Throughput Accounting

Financial decision making

T,I,O.E. : Throughput, Inventory

& Operating Expenses, TBDM,

Dollar x Days, Total Variable

Cost, Product Mix

Critical Chain (CCPM)

Project Management

Project Buffer (not "local" tasks),

Fever Chart, Critical Chain (not

Path), Bad Multi-tasking, Student

syndrome, …

Value Added Computing

Information Systems

Data & Information

Necessary but not sufficient

The 6 questions [Philip Marris' personal opinion]

Replenishment

Distribution

High frequency periodic

replenishment, stocks centralized

(not too distributed),

[DDMRP?]

Thinking Processes

Problem resolution

Evaporating Cloud, Goal Tree,

Strategic & Tactic Trees,

Current/Future Reality Tree, Pre-

requisite & Transition Trees

Marketing & Sales

Marketing & Sales

Mafia Offer or (URO)

+ Decisive Competitive Edge

(DCE) + Delta T-Selling

+ Sales force constraints

Other new ideas !?

Standing on shoulders of giants,

Behavior & Organizations, Viable

Vision, Strategy,

KM, + new TA ,… ?

Importance

of constraints

in the ideas Thinking Processes This could be considered to

be at another higher level

than simply a component








Over the past 15 years Critical Chain has demonstrated an ability to greatly

improve the performance of project execution

Critical Chain Project Management (CCPM) enables organizations to finish their projects on time, without

budget overruns nor loss of initial specifications.

Furthermore CCPM can, simultaneously, significantly reduce project durations and increase the efficiency

(productivity) of the resources involved.

Source: “Advanced Multi-Project Management Achieving Outstanding Speed and Results with Predictability” 2013 book by de Gerald I. Kendall & Kathleen M, Austin,

page 95. The analysis is based on public information available concerning 60 different organizations working in different industries that had applied CCPM.


See annexe for a list of cases.

A more complete list

is available at

www.chaine-critique.com

Results Average Worst

case

Best

case

Project durations - 39% - 13% - 78 %

Number of projects

completed in a given time + 70 % + 15% + 222%

Throughput + 53% + 14% + 150%








1. Introduction









10. Conclusion

11. Annexes








… but difficult to master

Projects almost never meet their initial deadline

Necessary resources are not available at the right time

In multi-projects organizations, arbitration between projects generates many conflicts

Specification changes are frequent and generate additional work

Extraordinary budget overruns are common

There are many tasks that require reworking

For lack of time, functional features are cancelled or reduced

The project manager's problems and dilemmas








Current mode of operation

In order to meet the end date of a project, management expects each task to finish on time as

defined in the project plan

In order to deal with uncertainties and respect their commitments, each task owner increases the

duration of his tasks with some padding

Project progress is measured by comparing the budgeted cost of work done with the budgeted cost

of work planed.

In order to reduce uncertainty, some project plans are more and more detailed


With project management, time is the key variable








PERT weighted average

Use of the true PERT

method is rare

and usually inadequate

heaviness of estimations

no probabilistic calculation

inconsistent management Completion

probability

Low

High

Shorter Longer

Most likely

Optimistic Pessimistic

Possible duration

6

Optimistic + 4 * Most likely + Pessimistic

PERT formula matches with the median









Parkinson’s law

« Work expands so as to fill

the time available

for its completion »

80 % of tasks finished

exactly on time!

Duration

Completion

probability

50 % 80 %









1. Introduction









10. Conclusion

11. Annexes








Multi-tasking

Fill out 4 columns:

- Task A: Even numbers starting from 0

- Task B: Letters of the alphabet starting from A

- Task C: Odd numbers starting from 1

- Task D: Write “THE_CRITICAL_CHAIN"

First round: single task mode

Second round: multi-tasking mode

Start 0

2

End

Once you have finished this task,

write down the time displayed

Start A

B

Start 1

3

Start T

H

Start 0

2

Multi-tasking game








Multiple projects and bad multi-tasking

Multi-tasking delays all tasks

The switching time

between each task

increases execution time and

reduces productivity and quality

Task A

Project 1

Task B

Project 2

A A A B B B

With multi-tasking, a task takes longer and is more error prone


Multi-tasking is frequently the main cause of low productivity








Conclusion:

Traditional project management is ineffective and generates time uncertainty

Project plans contain a lot of local safety buffers

but they are hidden and wasted

Several behaviors and situations prevent statistical

fluctuations from compensating each other:

Student and calendar syndrome

Parkinson’s law

Integration

Multi-tasking









1. Introduction









10. Conclusion

11. Annexes








A traditional plan

The critical path doesn’t integrate resource constraints

Non critical tasks are planned as soon as possible

Levelling is hardly ever done

Critical Chain planning rules

Task name

End








Critical Chain Planning

Step 1: Remove individual task safety buffers

Individual task safeties are removed by dividing each task duration by two

The removal of individual safeties helps to get rid of student/calendar syndrome and Parkinson’s law

Each task owner is no longer measured on timely completion of his tasks


Task name

End









Step 4: Critical chain identification

The Critical Chain is the longest path of dependencies between tasks

The Critical Chain is the constraint of the project and determines its duration

Unlike the critical path, the Critical Chain is stable and encourages focus


Task name

End









Step 5: Buffer calculation and insertion

The project buffer aggregates the safeties of all critical tasks

About one third of the project duration is allocated to the project buffer

With feeding buffers, non critical tasks will start just in time


Project buffer








Then, during project execution,

we concentrate essentially on the sequence of Critical Chain tasks

The rule of the relay race is applied all along the Critical Chain

Usually materialized by a mascot (a remarkable object) which physically follows the

successive locations (offices/desks/…) where the Critical Chain is executed

By asking less than 1% of the resources to run,

it’s in fact the whole company that goes faster









Project staggering helps reduce bad multi-tasking

Levelling all the resources of a portfolio creates a large and complex domino situation

Staggering consists in fixing the beginning of each project according to the availability of a pacing

resource

How to choose the pacing resource of a portfolio?

- Where are the projects most likely to be stuck for the longest time?

- Where are the projects most likely to cause bad multi-tasking?

- Which is the department with the most important resources to exploit?

Without dynamic arbitration of resource conflicts, staggering isn’t a lasting solution to the multi-

projects problem


To finish your projects on time, start them later!








The organisation will then be able to focus on the efficiency of their critical resources

and thereby increase it's Throughput rapidly and significantly

The Theory Of Constraints considers that is no longer possible for companies

to distribute workloads evenly throughout the organisation

So in practice there will always be one or 2 critical resources ("bottlenecks")

surrounded by "non-bottlenecks"

One hour lost on a bottleneck = one hour lost for the entire system

To improve overall performance it is therefore sufficient to improve the

throughput of just one or 2 critical resources

Often, in our product development experience, these are:

- Just one of the departments

- Or one or two people with unique and/or critical competencies

- Or the testing stages









There are 2 type of constraints in multi-project management

the critical chain of each individual project and a resource

The resource constraint can be :

- either a real capacity constraint (demand > capacity)

- or a "control point" which has sufficient capacity but is the best place to control the whole project portfolio. It can

eventually be chosen by management among the most heavily loaded resources. Preferably it works on all or nearly all the

projects.

Pro

ject

01

Cri

tica

l C

hai

n

Pro

ject

02

Cri

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hai

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Pro

ject

03

Cri

tica

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hai

n

Pro

ject

04

Cri

tica

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hai

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Pro

ject

05

Cri

tica

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hai

n

Pro

ject

06

Cri

tica

l C

hai

n

Pro

ject

07

Cri

tica

l C

hai

n

Pro

ject

08

Cri

tica

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hai

n

Pro

ject

09

Cri

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Pro

ject

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Pro

ject

11

Cri

tica

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Pro

ject

12

Cri

tica

l C

hai

n

System constraint and/or "Control Point"








1. Introduction









10. Conclusion

11. Annexes








Critical Chain Tracking

Case 2: Behind schedule

Uncompleted work is rescheduled after the status date

When a critical task is late (more than 50% estimate), the delay consumes the project buffer

Project execution and performance indicators








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

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

% of Critical Chain completion

% c

on

sum

pti

on

of

the

pro

ject

bu

ffer

Finished project

with project buffer

not fully consumed

This means that the

project finished

before the end date

Green zone =

comfort zone no

action needed

Yellow zone= warning

zone identify main

cause of delay and prepare

action plan

Red zone = risky zone start right now

corrective actions

W4

Week 5

Week 3 W2

W1

Week 6

Project monitoring is much easier with the Fever Chart









The portfolio Fever Chart greatly facilitates dynamic arbitration between projects

The Fever Chart helps to quickly track all the projects in the portfolio

with objectivity and transparency

Projects 7 to 20:

(green zone )

nothing to report

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

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%% c

on

sum

pti

on

of

the

pro

ject

bu

ffer

P8

P1 P5 P6

P3

% of Critical Chain completion

P13 P10 P12

P14 P15 P16

P17

P19

P18

P20 P11 P9

P2

P4 Projects 1 & 2:

urgent action

needed!

Project 4:

Finished exactly

on time

Project 6:

Finished before

the end date









1. Introduction









10. Conclusion

11. Annexes








New behaviors

SENIOR MANAGEMENT: employees need trust, not micro-management

Nouveaux comportements

Current behavior New behavior

Fail to consider the portfolio constraint of the

organization

Identification of the portfolio constraint of the

organization

Arbitrary delivery dates Delivery dates calculated with Critical Chain plans

and portfolio constraint schedule

Start project as soon some as the budget is available Stagger projects using the portfolio constraint

schedule

Authoritarian interruptions

Prioritize resource conflicts with relative project

buffer consumption

Detailed projects inspections Monitoring with Fever Chart








New behaviors

PROJECT MANAGER: focalized on the Critical Chain and buffers

Current behavior New behavior

Safety duration in each task Aggregation of safeties in a project buffer

(and feeding buffers)

Detailed calendar for all tasks Calendar of project and milestones

Focus on late tasks Focus on the Critical Chain tasks flow

Positive feedback if resources finish on time each

task

Positive feedback if resources perform to relay-racer

behavior

Start tasks as early as possible Start tasks just on time

Get resource when it is available Get resource when it is necessary

Progress report with earned value and schedule

variance Progress report with Fever Chart and Pareto diagram

Nouveaux comportements








1. Introduction









10. Conclusion

11. Annexes








Critical Chain can improve any type of project

New product or service development (project or portfolio).

Public works and large engineering projects

Maintenance, Repair and Overhaul (MRO)

Software development

(often associated with an "Agile" approach like Scrum )

Etc.

How to implement, references and examples








Over the past 15 years CCPM has been implemented thousands of times

There are probably over 3000 cases in the world today (P. Marris estimate):

- Many of them in the USA where CCPM first got traction

- but also in certain other countries: Japan, India, Israel, …

Over 500 cases documented (and about 300 others currently being validated)

- See Gerald Kendall et Kathleen Austin: Advanced Multi-Project Management, J. Ross Publishing, 2013.

- And the list that we are building up on our CCPM website (currently only in French): www.chaine-critique.com

The most well known cases:

- Boeing (Lean+), Procter & Gamble (Speed), Mazda, NASA, ABB, U.S. Navy, Delta Airlines Maintenance.












Critical Chain results documented around the world today

(see Annexe for a more complete list)

N° Activité Type du Projet Entreprise Résultats

1 Aérospatiale Conception & assemblage Boeing Space & Intelligence Systems"Throughput" multiplié par deux

Réduction du temps de cycle de 28%

2 Aérospatiale IT Lord Corporation 60% de la capacité libéré en plus, sans aucun licenciement

3 Aéronautique Engineering Boeing (Military) Réduction de temps requis pour l'assemblage des ailes de 50%

4 Aéronautique EngineeringBoeing Wing

Assembly

Terminé à temps, sous le budget prévu.

Réduction du temps d'assemblage des ailes de 50% (F-22)

5 Aéronautique Maintenance Delta Air Unes, Inc.Augmentation de 23% des moteurs produits par an.

Réduction de 30% du temps de traitement du moteur.

6 AéronautiqueFabrication et maintenance

d'hélicoptèresErickson Air-Crane Augmentation du nombre de projets terminés à temps de 33% à 83%.

7 AéronautiqueEngineering &

assemblageLockheed Martin Diminution de 57% du temps pour terminer complément l'avion sans réduction du périmètre

8 Aéronautique Engineering Spirit Aerosystems Réduction du temps de cycle de plus de 12 à 7 mois.

9 Aluminium EngineeringAlcan Alesa

TechnologiesAugmentation du nombre de projets terminés à plus de 30%

10 Automobile Développement produit Chrysler Réduction du temps de cycle de construction des prototypes de 10 à 8 semaines

11 Automobile Engineering ThyssenKruppGain de 63% en productivité

15% de projets terminés en plus.

12 Biotechnologie Engineering Danisco (Genencor) Augmentation des projets terminés à temps de 20% à 87%

13 Communications Développement produitAirgo Networks

(Qualcomm)Amélioration du temps de cycle de 19 à 8 mois.

14 Communications Conception de commutateur télécom Alcatel-Lucent Augmentation de 45% du "Throughput" par personne

15 CommunicationsDéveloppement de logiciels

personnalisésAmdocs 14% d'augmentation des revenues/homme-mois; Réduction de 20% du temps de cycle

16 Communications Conception et installation d'un réseau eIRcomAmélioration de la livraison à temps de 75 à plus de 98%.

En moyenne, le temps de cycle a diminué de 70 à 30 jours

17 Communications IT eIRcomDe 40 à plus de 90% de projets terminés à temps

Réduction du délai de traitement de 150 jours à 30 jours.

18 ConstructionConception, installation et mise en

service d'un parc d'attraction

Action Park

Multiforme GrupoAugmentation du nombre de projets terminés de 121 à 153.

19 Construction Nouveau Centre HospitalierCalifornie

Department of Corrections

Construction et ouverture d'un nouvel hopital psychiatrique, en 6 mois tandis que d'autres approches ont

échoué à le faire en 12 mois

20 Construction Usine de fabrication emcocablesRéduction de la durée des projets de 11 mois en moyenne à 7.

Augmentation des revenues de 55%, reçus 4 mois en avance.

We update the list on www.chaine-critique.com regularly. An English version will be available soon.

(See « Pour aller plus loin/ Cas pratiques / Les résultats de la Chaîne Critique »)












Space industry European leader – Save a crucial overdue project

Project duration reduced from >9 months to <4.5 months and delivered on time

One of the major actors in design and production of

satellites. More than 5 000 employees

Just a few months before the Critical Chain implementation,

management had no visibility on the odds of meeting a

critical milestone

Amount at stake: more than 100 millions €

Thanks to the Critical Chain approach, the project went back

on track and local final testing was optimized until the last

minute.

Buffer

5 months Late!









Mazda

Used to develop a new family of engines.

Project duration reduced by over 50%








CCPM implementation projects generally involve several different work streams

Management

- Coach project managers. Improve management practices both in term of individual/team behaviors and planning /tracking

activities

Standardization (important)

- Improve the internal project management guidelines. The breakdown of tasks and their links (Work Breakdown Structure

and Network Diagram) are standardized and homogenous between all projects of the same type

Training

- Both on the Critical Chain method and traditional project management best practises

Software

- Selection and implementation of a software solution customized to the organization and supporting the Critical Chain

management of the portfolio of projects

But also others themes which are complementary to the Critical Chain:

- Risk Management (very often)

• Better identify and proactively manage project risks

- Lean Engineering (sometime)

• Integrate product development best practices coming from societies like Toyota Motor Company.









Basic features of a Critical Chain software

Project evaluation

Position network from start or finish date

Critical chain identification

Multi-projects staggering

Buffer calculation and insertion

Progress tracking and buffer updating

Specific reports

Tasks prioritization

Two working modes: planning and tracking









The CCPM software solutions are numerous and on the increase


Aurora-CCPM

LYNX

Concerto

CCPM+

Asta Powerproject

http://www.prochain.com/index.htm

http://www.exepron.com/default.aspx








1. Introduction







8. Necessary new behaviours

9. Conclusion

a. Summary

b. Benefits and Preoccupations

10. Annexes








In New Product Development CCPM

is an ideal predecessor to a Lean Engineering programme

Today the main strength of Toyota is not in it's production system but in its New Product Development (see

"The Machine That Changed the World" and TPPDS book by Allen Ward, Etc.)

But "Lean Engineering" is only possible once permanent fire fighting has been more or less eradicated.

Otherwise people will never find the time to "do" Lean Engineering.

So Marris Consulting recommends companies start by putting their development process under control using

CCPM and then starting their Lean Engineering journey.

Critical Chain Project Management

Lean Engineering (Toyota New Product Development System)

Year 1 Year 2 Year 3 Year 4 Year 5

Conclusion








A summary of the Critical Chain way for managing project portfolios

The only important goal is to finish your projects on time, within

budget and conform to specifications.

Safety buffers are positioned globally not locally. They can therefore

be reduced since they will not be wasted.

Projects are sequenced to limit the work in progress and devastating

multi-tasking. Projects are started later so that they can finish earlier.

Resource conflicts between projects can be easily, objectively and

dynamically managed using the Fever Chart.

By ensuring a focussed execution (cf. Mascot) projects are finished

quickly.

By identifying and managing the capacity constraint (or control

point) the productivity of the whole business increases significantly.

Critical Chain enables you to take control of your project portfolio…

…do you dare to finish all your projects on time?

Conclusion

Results AverageWorst

case

Best

case

Project durations - 39% - 13% - 78 %

Number of projects

completed in a given time + 70 % + 15% + 222%

Throughput + 53% + 14% + 150%








1. Introduction








9. Conclusion

a. Summary

b. Benefits and Preoccupations

10. Annexes








Annexes

1. Sample of CCPM results throughout the world

2. CCPM and TOC resources for further study: internet web sites, books, …

3. Supplementary slides: Earned Value, TOC Thinking Process,

4. Trainer's curriculum vitae

5. Presentation of Marris Consulting








Critical Chain Project Management results around the world (#1/5)


1 Aérospatiale Conception & assemblage Boeing Space & Intelligence Systems"Throughput" multiplié par deux

Réduction du temps de cycle de 28%

2 Aérospatiale IT Lord Corporation 60% de la capacité libéré en plus, sans aucun licenciement

3 Aéronautique Engineering Boeing (Military) Réduction de temps requis pour l'assemblage des ailes de 50%

4 Aéronautique EngineeringBoeing Wing

Assembly

Terminé à temps, sous le budget prévu.

Réduction du temps d'assemblage des ailes de 50% (F-22)

5 Aéronautique Maintenance Delta Air Unes, Inc.Augmentation de 23% des moteurs produits par an.

Réduction de 30% du temps de traitement du moteur.

6 AéronautiqueFabrication et maintenance

d'hélicoptèresErickson Air-Crane Augmentation du nombre de projets terminés à temps de 33% à 83%.

7 AéronautiqueEngineering &

assemblageLockheed Martin Diminution de 57% du temps pour terminer complément l'avion sans réduction du périmètre

8 Aéronautique Engineering Spirit Aerosystems Réduction du temps de cycle de plus de 12 à 7 mois.

9 Aluminium EngineeringAlcan Alesa

TechnologiesAugmentation du nombre de projets terminés à plus de 30%

10 Automobile Développement produit Chrysler Réduction du temps de cycle de construction des prototypes de 10 à 8 semaines

11 Automobile Engineering ThyssenKruppGain de 63% en productivité

15% de projets terminés en plus.

12 Biotechnologie Engineering Danisco (Genencor) Augmentation des projets terminés à temps de 20% à 87%

13 Communications Développement produitAirgo Networks

(Qualcomm)Amélioration du temps de cycle de 19 à 8 mois.

14 Communications Conception de commutateur télécom Alcatel-Lucent Augmentation de 45% du "Throughput" par personne

15 CommunicationsDéveloppement de logiciels

personnalisésAmdocs 14% d'augmentation des revenues/homme-mois; Réduction de 20% du temps de cycle







Action Park








Annexes
















Action Park








21 Construction Chaine de télévision Emesa € 5 million de pénalité évités.

22 Construction Construction de logement Shea Homes Réduction du temps de cycle de 40%, de 91 jours à 56 jours.

23 Biens de consommation Développement produit Heineken, SpainTime to market 20% plus rapide

Amélioration des projets terminés à temps de 90% à 98%

24 Biens de consommation Développement produitHP Digital Camera

GroupAmélioration des nouveaux produits de 6 mois en 2004 à 15 lancements en 2005

25 Biens de consommation Ventes Oregon Freeze Dry Augmentation du nombre de projets de ventes terminés par an de 72 à 171

26Défense

manufacturingConception Produit et manufacturing Tecnobit Réduction du temps de cycle projet par 20%

27Biens

durablesDéveloppement produit

Hamilton Beach

Brands, Inc.

Augmentation de 34 à 52 nouveaux produits durant la première année. À plus de 70, la seconde année, sans

augmentation du nombre d'effectifs

28Biens

durables

Fabrication et installation d'une

conception personnaliséeTRS Refrigeration

Réduction du temps de cycle projet moyen de 75 jours à 46 jours, et augmentation de la capacité projet de

30% sans renforcement de la main-d'œuvre

29 Energie Nettoyage BP OilGain de 700 million $ avec accélération des projets et production nécessaire pour répondre aux besoins du

projet.

30 Energie Engineering FMC Technologies Réduction de 50% du temps alloué pour le test et l'assemblage final

Annexes










31 Energie Conception & manufacturingLeTourneau

Technologies Inc.Réduction du design & engineering de 15 à 9 mois, et de la production engineering de 9 à 5 mois

32 Energie Engineering Von ArdenneTemps de cycle réduit de 17 à 14 semaines, tant disque les projets terminé à temps ont augmenté de 80% à

90%

33 Services Financiers Développement logiciel Confluence UK 95% des projets sont terminés à temps

34 SantéSalle d'urgence et hôpital patient comme

un projet

Oxford-Radcliffe

Hospitals, UK

L'augmentation des patients dans la salle d'urgence de <70% dans les quatre heures à 100%, tandis que le

nombre de patients a augmenté de plus de 25%.

35 ManufacturingEngineering &

manufacturingRex Materials Group Baisse du lead time de 6 semaines à 10 jours

36 Manufacturing Conception Valley Cabinet Works Passage de 200 projets par an à 334 dans les neuf premiers mois de l'année

37 Médicale Développement produit Medtronic Amélioration des intervalles de livraison de logiciel de 6 mois à 9 mois à tous les 2 mois.

38 Médicale Développement produit Medtronic, Europe Réduction du temps de cycle projet de 18 à 9 mois.

39 Militaire Maintenance French Air Force Retour de 2 des 5 avions de la force aérienne (une valeur de 300 million €)

40 Militaire Maintenance, logistique et test U.S. Air Force (multiple bases)Le délai de traitement réduit de 25-30%

Plusieurs avions retournés à la force aérienne

41 Militaire Maintenance de la flotte de l'arméeU.S. Army Fleet

SupportRéduction de 32% du délai de traitement du CH-47 et 52% du UH-60

42 Militaire MaintenanceU.S. Army, Corpus

ChristiAugmentation du "Throughput" de 5,4 à 6,3 avions.

43 Militaire Maintenance & LogistiqueU.S. Marine Corps

(Multiple bases)

Division de 50% du temps de cycle de réparation,

Augmentation de la livraison à temps de 95%,

Augmentation du pourcentage produit

44 Pharmaceutique Développement produit Dr. Reddy's LaboratoriesAugmentation de 83% des projets terminés à temps durant les 12 premières semaines

75% d'augmentation de lancement des nouveaux produits d'une année à une autre

45 Pharmaceutique Développement produit P&G PharmaceuticalsAugmentation des projets terminés de 5 à 8 par trimestre.

Le taux de projets terminés à temps passe de 55% à 90%

Annexes










46 Power EngineeringABB AG, Power

Tech. DivisionAugmentation du "Throughput" de 30% de 300 baies à 430 baies par an

47 Power Engineering ABB Cordoba Réduction du temps de cycle Engineering de 8 à 3 mois.

48 Power Maintenance ABB Halle Augmentation du nombre de projets terminés par an de 42 à 52%, > 25%

49 Power Engineering C.N. Cotrentes Augmentation de la performance des dates prévues de 60% à 95%

50 Power Engineering Central Nuclear Almaraz Trillo Augmentation du nombre d projets terminés de 19 à 24-30 par mois

51 Power EngineeringSiemens Generator

EngineeringPassage de 110 à 128 projets terminés, avec une augmentation de 30% du "Throughput"

52 Power Engineering Skoda PowerAugmentation de 30% des boitiers par an.

Les livraisons à temps sont passées de 60% à 90%, avec une amélioration de 20% du temps de cycle.

53 Process manufacturing Plant engineering Owens-Illinois Diminution du temps de cycle de 6 à 2,5 mois

54 Ferroviaire Maintenance & Réparation Railcare Wolverton, UK 100% des livraisons à temps, augmentation d'un à 3 projets simultanément.

55 Resource Engineering BHP BillitonRéduction de 25% en besoin d'heures pour terminer un projet

Projets terminés 3 semaines plutôt

56 Semi-conducteur Conception & manufacturing e2V Semiconductors Réduction du temps de cycle de 38 à 23 mois

57 Semi-conducteur Construction d'usineHarris

SemiconductorDémarrage de la production high-tech en 13 mois, au lieu de 54 mois communément en industrie

58 Semi-conducteur EngineeringIsmeca

SemiconductorRéduction de 25% du temps de cycle de 84 jours à 64.

59 Semi-conducteur Conception LSI Logic Parti de la majorité des outils livrés en retard pour des livraisons à temps sur trois années de suite

60 Software Développement logiciel Alna SoftwareRéduction du temps de cycle par 25%

Augmentation des projets achevés de 17%

Annexes










61 Software Systèmes de simulation de vol CAE USARéduction du temps de cycle par 2 à 4 mois

Augmentation de 37 million $ dans le nombre de programme profitable

62 Software IT Celsa Group Augmentation des projets SAP achevés de 15 à 20 par mois

63 Métallurgie Maintenance des installations Tata Steel Amélioration de 68% de la rapidité d'exécution du projet; passé de 11 jours d'arrêt planifié à 5 jours.

64 Textile Conception Skye Group 100% des dates de livraison honorées avec réduction de 30% des délais de traitement.

65 Aérospatiale & Défense Aerojet Corporation Indisponible

Source: “Advanced Multi-Project Management Achieving Outstanding Speed and Results with Predictability” book by Gerald I. Kendall & Kathleen M. Austin

Annexes

We update the list on www.chaine-critique.com regularly. An English version will be available soon.

(See « Pour aller plus loin/ Cas pratiques / Les résultats de la Chaîne Critique »)











Annexes













Marris Consulting's YouTube Channel

(name: marrisconsulting)

Resources for further study








A permanent news website dedicated to CCPM










A dedicated Critical Chain website (currently only in French)

www.chaine-critique.com









The original book that started it all

This is the original book

written by Eli Goldratt

who "invented" CCPM

Eliyahu Goldratt

Exists in several languages

Scenario

- An MBA professor gives a project management course in which they

"discover" the Critical Chain way. He uses the "Socratic" technique. By

addressing a class comprised of many different project environments

(building, New Product Development, Software, …) it conveys how

generic the solution is.

- It is not Eli Goldratt's best book. For instance part of the book covers the

problems of MBAs and higher education.

It is mandatory reading for anyone seriously envisaging or involved

in CCPM.


Warning: this book is incomplete

since it only covers single project

management. It does not deal with

project portfolios.








A good recent CCPM business thriller in a New Product Development

Be Fast Or Be Gone

By Dr. Andreas Scherer

2010 ProChain Press USA

The story: how to divide project development time by 2 in the

pharmaceutical industry to save your son…

Strongly recommended especially for those in the

pharmaceuticals industry of course.









For further study: the CCPM reference books


March 2014

January 2013








For further study:

Rajeev Athavale's "Do-It-Yourself" books


Available formats: PDF, EPUB (for iPad), MOBI (for Kindle)

www.leanpub.com

Languages

English

Spanish

French

German

Italian …and soon more!








Annexes













Philip Marris, Founder and CEO of Marris Consulting

Transformation & Theory Of Constraints expert

Trainer's curriculum vitae

Transformation programs in industry

Industrial Excellence Expert (manufacturing and product development).

Recognized expert in Lean, Six Sigma and Theory Of Constraints. Often

combines these ("TLS").

Author of an industrial management bestseller in France: Le Management Par les

Contraintes en gestion industrielle, Editions d'Organisation [1994, 1996, 2000,

2nd Edition currently underway).

28 years of experience, 55 years old, Supply Chain & Manufacturing expert

Bilingual & bicultural English/French

COMPETENCIES

R&D & Industrialisation / Engineering / New Product Development:

– Complete transformation of an Engineering department of 150 people. Reduction in project durations

of over 40%. Improvement in productivity of over 25%. Projects completed on time went from less

than 30% to over 85%.

– New product development and product relooking: reduction of over 45% of average project duration,

increase in number of projects completed each year of over 50%.

– New product portfolio analysis and development strategy

– Quotation process reengineering: handling speed multiplied by 4.

– Organisation handling large Requests For Proposals in a large MRO firm: improvement in the success

rate of proposals submitted from 20% to 55%.

Production, Operations & Supply Chain :

– Worldwide automotive OEM tier 1 supplier: increase in Throughput of 17% in 15 minutes. Savings

>$400M per year. saved relationship with largest customer.

– Large MRO (Maintenance, Renewal & Overhaul) Division of a major European railway operator

(France, 25 000 p.): in one of the main factories (940 p.) reduction of the production lead-times for

the renovation of high speed trains from 126 days to 38 days . Further lead-time reductions are

underway over 2 years after the end of our assignment.

– Manufacturing flexibility: reduction of over 50% in the production lead time of a steel mill.

– Labour productivity: furniture manufacturer +35% in 6 weeks, M.R.O: 20% in 9 months,

manufacturing equipment (assembly) +70%, ...

– Automotive Supplier (France, 350p.): Increase in the O.E.E. of the bottleneck resource by more than

30%, change from 5x8 shifts to 2x8 while providing the same output.

– Complete reengineering of the Supply Chain of a steel manufacturer: Long term strategic planning,

Sales & Operations Planning, Scheduling. Implementation of TOC/MPC. Increase in 40 points of the

due date performance

– Office furniture Manufacturer (France, 380 p.): Turnaround of the company from chronically loss

making to profitable by increasing the labour effectiveness by 35% in 6 weeks. 11 day engagement.

– Manufacturer of large machines for cardboard packaging: reduction in the delivery lead-time by over

50% and a reduction in the number of hours of labour per machine of over 30%.

MISSIONS / RESULTS

Over 150 engagements in industry.

Aeronautical

Pharmaceuticals

Automobile industry: car makers and suppliers

Process industry: steel, glass, cardboard, extruded plastic

World leader in ball bearings

World leader in railway rolling stock M.R.O.

Packaging: cardboard, steel, plastic

Electrical power systems: world wide leader

Furniture manufacturer, Marine engine manufacturer, Armoured vehicles

manufacturer, Electronics: printed circuit boards, …

SECTORS / CLIENTS

FORMER POSITIONS

Cap Gemini Ernst & Young / Bossard Consultant: In charge of Manufacturing

Operations for France & Europe (>200 consultants)

Cap Sogeti Industrie

Creative Output: collaborated with E. Goldratt author of The Goal

Vallourec: Shop floor foreman, Methods Engineer

Professor at HEC Management School (Supply Chain & Manufacturing).








Eric Robin, Managing Consultant

Project Management and Critical Chain Project Management expert

Project Management (PMI, Critical Chain

Process modeling (ARIS/EPC)

Strategy of organizations

Theory of constraints

Requirement engineering and software testing

Selection and implementation of software packages

Statistic and R language

Certifications: ITIL, IREB, ISTQB

27 years of experience, CNAM DEST in business data processing , CERAM MASTER in business intelligence

and complex project management, 52 years old

AREAS OF EXPERTISES

Project management:

– Critical Chain project to improve new products development for a capital goods medium business:

pilot projects, pilot portfolio, deployment, software selection, …

– Critical Chain planning of a production transfer for a pharmaceutical market leader (100 K€ / day of

downtime)

– Critical Chain planning of a simultaneous engineering process for the subsidiary of a large industrial

group (30 engineers, 100 M€)

– Fast recovery of a delayed satellite project for one of the major actors in design and production of

satellites (more than 5 000 employees)

– R&D portfolio organization for an company of the electronic sector

– Critical Chain implementation of numerous fixed time fixed price software projects

– Definition of project management standards for a construction company

– Structuring of a project quality plan for a software editor

– Critical chain training for companies and universities (> 50 sessions)

Information systems:

– Selection of PLM package for the subsidiary of a large industrial group

– Selection and integration of an ERP package for a small aeronautic company (50 employees)

– Enterprise architecture audit for a large group (300 computer applications)

Process management:

– Formalization of a simultaneous engineering process

– Definition and deployment of a configuration management tool for a software editor (50 developers)

– Balanced scorecard for an SME

Others:

– Design of a budget management tool based on throughput accounting

– Sales statistical analysis for a software editor

– Facilitation of management seminars

MISSIONS / RÉSULTATS

Capital goods

Engineering companies: R&D, Buildings, Plants

Pharmaceutical

Software editors

Market finance

SECTORS/ CLIENTS

POSITIONS OCCUPIED

Independent consultant and Marris Consulting partner

UNILOG: South Region e-business manager

Cambridge Technology Partners: CRM project manager

BNP DB3A: Software team manager for market makers

ATT Dataid: Project manager

DEC: Software engineer consultant for the banking sector

Trainer's curriculum vitae








Annexes













Marris Consulting: recognized European Critical Chain experts

Our Critical Chain projects:

- Aeronautical, pharmaceutical, software, rail MRO, video security systems, armoured vehicles, large engineering

projects…

Our experts: Philip Marris (Theory of Constraints & CCPM), Eric Robin (Critical Chain). Our consultants

experienced in significantly improving project performance.

Our training sessions:

- "Do you dare to finish your projects on time?" 1 day course twice a year since 2010. Numerous internal training 1, 2 or 5

day courses (over 10 a year). Over 10 sessions per year on various aspects of TOC: Logical Thinking Process by Bill

Dettmer, Throughput Accounting by Eli Schragenheim, TOC in production by Philip Marris …

Our websites dedicated to CCPM and TOC

Numerous conferences:

- TOCICO (Theory Of Constraints International Certification Organisation) Cape Town, South Africa (2015), Loire Chamber of Commerce

France (2015),, INSA University TLS Master Rennes 2014, CNAM Management School Pays de la Loire 2014, TOCICO Annual Congress

Frankfurt (2013) Strasbourg University 2014, Supply Chain Conference Vilnius (2013), ProGection Annecy France (2013), TOCICO Chicago

(2012), Carrefour Logistiques Paris (2012, 2011), PIOM Luxembourg (2011), International Pharma Congress / SFSTP, Montpellier France

(2011), …

Articles regularly published: - Usine Nouvelle (2014, 2013, 2012, 2011, 2010), Industrie & Technologies (2011, 2010), Pharma Pratique (2011), Railway Gazette

International (2011), Maintenance & Entreprise (2011), Logistiques Magazine (2011), Mesures (2010), Innovation & Industrie (2010),

Production Maintenance (2010), …

Marris Consulting








Another training course by Marris Consulting:

"The Theory of Constraints to boost your Lean programme" (manufacturing)

Our most successful training course. Over 400 people have been trained in the past 4 years including: ArcelorMittal, Areva, Arkema, Autoliv, Bayer,

Bosch, Essilor, Fresenius Vial, GSK, Infineon, Ipsen, Jaeger LeCoultre, Lilly, Merial, Novartis, Pierre Fabre, Procter & Gamble, Pyrex, Nexter,

Safran, Saint-Gobain, Salzgitter-Mannesmann, Schlumberger, Seb, SKF, Thales, Visteon, Yves Rocher & Zodiac Aerospace.

Marris Consulting








We are honoured to have been able to help…

Procter & Gamble Aerospace

GKN

Marris Consulting

Communications & Sécurité – C4I

Diehl Metering Group








Marris Consulting: Factories, People & Results

Marris Consulting

Clients : ArcelorMittal, Valeo, GSK, SNCF / French Railways, Veolia, Salzgitter Mannesmann, EADS, Aubert

& Duval / Eramet, Autoliv, Thales, SKF, ABB, Man, Michelin, Bobst, Ceva Santé Animale, Banque de

France, Safran, D.S.Smith / Kaysersberg Packaging and over 50 Small & Medium Enterprises.

Marris Consulting has conducted over 100 engagements in transforming industrial enterprises in France and

around the world.

The firm is recognized as an expert in Theory Of Constraints (TOC) & Lean Manufacturing. Philip Marris is

the author of the TOC reference book in French: Le Management Par les Contraintes. Philip is English and

worked with Eli Goldratt in the formative years of TOC. Christian Hohmann is the author of several best

selling books on Lean Manufacturing.

Marris Consulting conducts regular training courses in Lean Manufacturing, TOC, TLS (TOC + Lean + Six

Sigma), Critical Chain project Management, and other related areas of practice. The courses are delivered in

Paris but can be arranged to be conducted at other sites.

TOC manufacturing & CCPM websites (English versions of these sites will be available soon)

– www.management-par-les-contraintes.com

– www.chaine-critique.com

Founded in 2005, 12 consultants + freelance network

Marris Consulting

Tour Maine Montparnasse

33, avenue du Maine

Paris 75015

France

Tel. +33 (0) 1 71 19 90 40

www.marris-consulting.com


http://www.management-par-les-contraintes.com/

critical chain project management - training material extract of 1 day european course

Education