toc instuments for it projects

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TOC INSTRUMENTS FOR IT PROJECTS Estimate twice less and meet the estimation with no loss of quality or extra resources Date: November 11 2015 Prepared By: Ievgeniy Vyshegorodtsev

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Page 1: TOC instuments for IT projects

TOC INSTRUMENTS FOR IT PROJECTSEstimate twice less and meet the estimation with no loss of quality or extra resources

Date: November 11 2015

Prepared By: Ievgeniy Vyshegorodtsev

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TABLE OF CONTENTS

• Common issues for most of the projects

• Reasons analysis based on Critical Chain Method

• Painkiller instruments

Evgeniy Vyshegorodtsev PM Ciklum Solutions 2

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What’s your POV?

No matter how long it takes to perform each separate task within the project - it is important to finish all the project in time.

Evgeniy Vyshegorodtsev PM Ciklum Solutions 3

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● Projects last longer than planned, sometimes much longer● Constantly acceding the budget● Client delay their payments● Scope creep. Clients are adding functionality to fixed scope and issue change requests● Team has to overtime● Resources are not available on time (even if scheduled and booked in advance)● Required documents are not available when needed (SRS, UX/UI designs, source materials,

Readme files, etc)● Change of priorities● Tremendous efforts to achieve intermediate results● People assigned to multiple projects● The number of projects is increased by the management

COMMON PAIN POINTS

Evgeniy Vyshegorodtsev PM Ciklum Solutions 4

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So much in common General problem is in how we manage

Positive outcome – typical solutions could be used to make projects faster and within the budgets

COMMON PAIN POINTS

Evgeniy Vyshegorodtsev PM Ciklum Solutions 5

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REASONS ANALYSIS

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3 REASONS that inevitably cause pain on the project

Play to guess

You know it - you name it

REASONS ANALYSIS

Evgeniy Vyshegorodtsev PM Ciklum Solutions 7

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Stopping the task before it’s completion to take up another one, perceived as more urgent and of higher priority.

Effect: Direct loss of productivity due to need to come back to the previous task and memorise the progress at the time of switch

Worse case scenario - Delay Domino effectstop of one task delays the next tasks in a row

Impact: project timeline increases

Bad multitaskingREASON 1: THE GAME

1234...

ABCD... ...

Evgeniy Vyshegorodtsev PM Ciklum Solutions 8

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REASONS 2 and 3

Are mailny about this:

REASONS ANALYSIS

Evgeniy Vyshegorodtsev PM Ciklum Solutions 9

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● Majority of people start dealing the task at full swing only at the very last moment before the deadline.

● Emerges when security time buffer is included into the time estimate● First we claim additional time (risk buffer) for some task “ - What if something goes

wrong?” ● When we get it - we feel very comfortable and think there is plenty of time, no urgency

(no real reason to start the work)● Start dealing the task when the deadline approaches

Effect: risk buffer is in fact wasted before starting dealing the task. It could be really vital in the end to overcome the unexpected impediments BUT IT’S ALREADY GONE

Impact: project delays even with the “fat”, secure and comfortable risk buffer. People are engaged more in the some projects and the bookings are delayed to other projects

REASON 2: Student syndrome

Evgeniy Vyshegorodtsev PM Ciklum Solutions 10

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The other side:

If the risk buffer was added and not used before the task is performed - it won’t reported ready before the estimated completion time.

Reasons:1) Time is used for “polishing” and “perfection”2) Next time WHIF event may really happen3) Bad emotional signal: management won’t approve “fat” estimation next time

Parkinson's lawREASON 3:

Evgeniy Vyshegorodtsev PM Ciklum Solutions 11

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We match our estimates - are we doing great indeed?

Because projects nature lies in variability a task that took 10h due to some circumstances, may take 15h or 25h next time, no matter how skilled the team is

If the estimation of task or project proves to be reliable (matches most of the times) - we waste a lot of time for risk buffering

Conclusion: there is an opportunity to reduce the project duration dramatically and increase the number of delivered projects without additional resources

THINK ABOUT IT

Evgeniy Vyshegorodtsev PM Ciklum Solutions 12

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PAINKILLER INSTRUMENTS

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Based on Critical Chain Methodology of Theory of Constraint

PAINKILLER INSTRUMENTS

Evgeniy Vyshegorodtsev PM Ciklum Solutions 14

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Bad multitasking

Reduce the amount of projects (tasks) in progress by freezing the pipeline. Not less than 25% freeze could be sufficient.

● Increases the concentration on tasks● Fixes the prioritization● Minimizes the number of switches between tasks● No holy-war between PM’s for critical resources. Almost :)● Reduces Clients and Management pressure for change of

priorities● Developers aren’t able to choose between projects

Outcomes:Increase of the # of projects delivered on time, without delays even for freezed projects

PAINKILLER INSTRUMENTS

Evgeniy Vyshegorodtsev PM Ciklum Solutions 15

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Comply project launch with the system constraint

After freezing the pipeline launch every new project in limited portions to keep the low # of projects IN PROGRESS

Chain capacity = weakest link capacity

PAINKILLER INSTRUMENTS

Evgeniy Vyshegorodtsev PM Ciklum Solutions 16

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Planning Project buffer

● Not to waste additional time● Assure the short delivery time with confidence in it’s fulfilment

Define the longest chain of interdependent tasks and resources for entire project

Apply Critical Chain Method to get more realistic timeline, although Critical Chain Method looks more promising and optimistic

PAINKILLER INSTRUMENTS

Evgeniy Vyshegorodtsev PM Ciklum Solutions 17

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CRITICAL PATH vs CRITICAL CHAIN

?

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Planning Project buffer using Critical Chain Method

Reduce all estimates by up to 50% and place them in the Risk Buffer in the end of the projectAdd small Feeding buffers in points of integrating into Critical Chain

Risk buffer in the end of the project makes it maximum available for all tasks at the Critical Chain

Having a common buffer for all tasks make time allocated for each task TWICE smaller● less probability to trigger Stedents’ Syndrome or Parkinson’s law● less delays due to Bad Multitasking

Probability to face delays at any separate task is times higher, than facing delays at all stages

Feeding Buffer

Project Buffer

PLANNING PROJECT BUFFER

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Buffer Consumption (%) / Progress of tasks on Critical Chain (%)Task managers report Estimate to Completion - total for all tasks on the Critical Chain is related to total Buffer consumed

For PM’s:● Easy to monitor● Observe trends● Take corrective actions

For HoU’s:● Easy to set priorities and allocate

resources (task in Red zone - higher priority, Green zone - can wait)

For Dev. Team:● Visual priority status - can take managerial

decisions without managers → operates faster, self-organised team

● Evident sign for raising a flag for help or escalation

USING PROJECT BUFFER FOR MANAGERIAL DECISIONS

Evgeniy Vyshegorodtsev PM Ciklum Solutions 20

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Applying these 3 steps:● dramatically increases the flow of performed projects● 95% of projects are completed in time● Project duration decreases by 25-50%● More projects accomplished at the same period of time with NO

additional resources (higher margin, faster revenue)

Potential resistance to changes:● Hard to switch ideologically from launching as many projects as possible

to freezing the conveyor and postponing the projects until permitted by the system constraint.

● Cultural and mindset re-construction

Required alies:● Top management (C-level)● Head of Sales● Finance Dept

POTENTIAL RESULTS

Evgeniy Vyshegorodtsev PM Ciklum Solutions 21

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THANK YOUQ&A