visual project management webinar handout
TRANSCRIPT
Why Engineering Projects are Late( and How to Prevent Them from Being So)
Visual Project Managementhttp://pinnacle-strategies.com
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About Projects
• It’s hard to get a project team to work together
• Projects will be better if our resources are fully utilized
• Start the project sooner, you’ll finish it sooner
• Planning is the key to project success
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Project teams don’t work together.
• Is this collaboration?– Protecting reputations– Defending original delivery promises– Giving “reasons” for why
things haven’t quite worked out
– Focus on the past, not the future
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Project Team Members have Different Goals
• Resource utilization?• Earned hours?• Budget compliance?• Get promoted?• Avoid punishment?
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It Doesn’t Have to be Lose-Lose
• Resource utilization?
• Earned hours?• Budget
compliance?• Get
promoted?• Avoid
punishment?
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Multitasking Adds Excess Time
Day 42
Task 1 Task 2 Task 3
12 days 12 days 12 days
Task 2 Task 3 Task 1 Task 2 Task 3
7 days 7 days 7 days 7 days 7 days 7 days
Day 28
Setu
p
Setu
p
Setu
p
Setu
p
Task 1
Setu
p
Setu
p
Setu
p
Setu
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Setu
p
Day 35
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Collaboration Summary
• Lack of view of path forward– Conflicting priorities
among members– Shifting priorities from
managers– What is the most
important thing now?
• Conflicting objectives• Defensive posture
among team members
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Too Much WIP Summary
• Haystack Syndrome blocks effective management
• Lost capacity increases costs and delays– Tasks out of sequence– Rework due to
incomplete information– Multitasking
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Project Failures are Commonplace
“A staggering 39% of projects with budgets over $10 million USD failed.”
Standish Group Research Exchange
To Be Successful
• Get control of the work• Focus on execution behaviors • Use the team (or structure) that already exists
to make room for proper planning
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Get Control
Execute Well
Release Capacity Success
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Collaboration During Execution
• Provide visibility• Focus on the future– Stop blaming and get moving
• Focus on the right things• Bust the bottlenecks• Establish common goals• Solving the team’s problems
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Focus on the Right Things
Project X
Project YY
Project XX
Project Z
Project Y
Estimate Select Engineering Procurement
Good Flow
Gap in Flow
Gap in Flow
Bottleneck
Bottleneck & Gap
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Accelerate Flow
Project X
Project YY
Project XX
Project Z
Project Y
Estimate Select Engineering Procurement
Stopped!
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Establish Common Goals
Performance Management:The process by which organizations align their resources, systems and employees to strategic objectives and priorities
Completing Projects is Behavior
How to create the right behavior to drive the project in the right direction?
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Behavior is a Function of Consequences
• You have everything you need to understand people– What is the behavior?– What are the consequences of that behavior?
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“Show me how you measure me, I’ll show you how I’ll behave”
("If you measure me in an irrational way, don't complain about irrational behavior.")
Eli Goldratt
Measurements Help Drive Consequences
• Health function– Should I do something?
• Diagnostic function– What should I do?
• Managers use measurements to determine when and on what to act
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Different Behaviors at Different Levels
Increase Throughput
Decrease WIP
Release on Time
Decrease Cycle Time
Reduce Work Blockages
Reduce Rework
Prioritize Projects
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Metrics in Vertical Alignment
Increase Throughput
Decrease WIP
Release on Time
Decrease Cycle Time
Reduce Work Blockages
Reduce Rework
Prioritize Projects
TP
WIP Target % CT TP
Days in WIP Rework Days by Reason
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Metrics Driving the Right Behavior
More Projects Completed
Should I act?
Escalation of Work Stoppages
Where to act?
Getting More Done in Less Time
Should I act?
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Leadership Reinforcement
Throughput Report
Trend Analysis
Escalation Summary
Escalation Pareto Analysis
Leadership Action
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Gaining Collaboration Summary
• Make the process and the work visible• Agreement on way forward• Person to person accountability• Common Goals– Metrics to reinforce the right behavior– Horizontal and vertical alignment
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To Increase the Rate, Eliminate the Bottlenecks
• Create process momentum during execution• Focused effort to solve problems
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Going Visual
1. What is your execution maturity?2. Map the project process3. Define the team4. Build a draft of the board– Refine board
5. Begin standup meetings– Refine process
6. Implement measures & controls– Refine process
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Foundation of Execution Maturity
• The Project Team:– Works together – Has a common goal– Controls the WIP
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3 Steps to Deliver More Projects On Time
1. Visual Execution to facilitate collaboration2. Common Purpose / Alignment on the team3. Control the amount of work in the system to
maximize flow
We’re not driving cars, we’re managing traffic
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ViewPoint Execution Maturity
ViewPoint Visual
Single Priority System
Control WIP
Measurement Alignment
Collaboration
ViewPoint Electronic
Remote Collaboration
Measurement Automation
Buffer Management
Resource loading
Date promising
ViewPoint EasyChain
Probabilistic Planning
Resource Management
“What if” capability
ViewPointtm Visual Results
• 433% increase in effective capacity• 326% increase in units shipped• Lead-time reduced from 31 to 8 days• Revenue increased $4MM/month
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Practical Ideas for Improving Project Execution
• Start projects as late as possible• Cut the number of projects in the portfolio by
half (don’t start a new one until you finish one)• One person decides work priorities• Don’t start a task unless you can finish it
completely