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12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
April 26-27, 2014 Moscow
12th International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
In which way CCPM
is different?
Jelena Fedurko
TOC Strategic Solutions, Estonia
27 April, 2014
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
Jelena has 14 years of TOC experience as atrainer and consultant providing support in TOCimplementations in the areas of peoplemanagement, production, supply chain, projectmanagement.Jelena has worked in Japan, Poland, Turkey, Italy,Russia, Ukraine, India, China, Chile, Colombia,Mexico and other countries throughout the world.Jelena is the author of the books Behind theCloud Enhancing logical thinking and ThroughClouds to Solutions. The books present newdevelopments in the area of working withassumptions, UDEs and UDE Clouds.Together with Oded Cohen Jelena has co-authored the book TOC Fundamentals, recentlypublished in Russian.She has authored numerous articles on TOCconcepts and implementation, and hascontributed to and edited several TOC books. [email protected]
www.toc-strategicsolutions.com
Jelena Fedurko
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
Main types of constraints of a commercial system:
Capacity Constraint a system has a resource which cannot provide capacity that
the systems demands within the required span of time.
Market Constraint the amount of customers orders is not sufficient to sustain the
required growth of the system.
Time Constraint the response time of the system to the requirement of the market
is too long to the extent that it jeopardizes the systems ability to meet its current
commitment to its customers as well as the ability of winning new business.
What is the constraint of the project management?When does the system create value for the goal of making more money?
At the completion of the project benefits are generated and money invested is
starting to be returned! The shorter is the time to complete the project the better!
Conclusion: Projects have the TIME constraint.
1. The realization that every systems performance
is governed by the constraint.
In which way CCPM is different?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
Step 1. Identify (choose) the systems constraint.
In projects it is TIME the longest chain of dependant tasks.
The dependency is not only logical but also resource dependency.
Step 2. Decide how to exploit the systems constraint.
In projects it done through planning of the acceptable and realistic
duration of the project to bring financial benefits.
Step 3. Subordinate everything else to the above decision.
Ensuring that the plan is
realistic absorbs inevitable fluctuations in the execution phase, and protected against disruptions. WE DO NOT REPLAN!!
2. Following 5 Focusing Steps of TOC.
In which way CCPM is different?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
Step 4. Elevate the systems constraint.
Making more projects with the same resources in the same
period of time.
Step 5. If the constraint is broken go back to step one but do
not allow Inertia to cause the systems constraint. Ensuring that the system will NOT create
Capacity constraint Market constraint Cash constraint (a Capacity constraint type)
2. Following 5 Focusing Steps of TOC.
In which way CCPM is different?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
Current and harmful practice: to have project plans that include thousand(s) tasks with durations from 2
hours to several weeks.
TOC Rule not more than 300-400 tasks even in a
very big project.
3. The number of tasks in the project plan must
not exceed 300-400.
In which way CCPM is different?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
TOC Recommendations:
1. Project Manager is responsible for maintaining and
speeding up the FLOW of tasks from resource to resource .
It is Resource Manager who is responsible for the quality of
work done in the task.
2. Highly positioned top managers could be Program
Directors but should NOT be given the role of Project
Managers.
4. The Project Manager is a MANAGER, NOT an Expert in
the subject matter of tasks, and not a Vice President.
In which way CCPM is different?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
5. The project plan MUST have FIXED START DATE AND
FIXED COMPLETION DATE aggressive but realistic
The PRIME objective of CCPM and the Prime Measurement for projects completing project ON TIME. Why? The project brings benefits only AFTER completion.FREQUENT QUESTION WHEN IS THE END OF MY PROJECT?
Purchasing new equipment (especially dedicated for a specific type of product food industry) what is the project end? When the equipment is installed and produced the first batch? When the equipment moved to mass production? When the product for which this equipment was bought has
finished its market life cycle? Building a new commercial facility what is the project end?
When the construction is completed? When all premises are sublet to tenants?
Another frequent question: Shouldnt the end of the project be tied to the return on investment?
In which way CCPM is different?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
5. The project plan MUST have FIXED START DATE AND
FIXED COMPLETION DATE aggressive but realistic
And there is also another frequent question:
WHAT IS THE START OF MY PROJECT?
Is the starting point a decision to investigate an idea? Is the starting point planning? Is the stating point the start of the first task (start of the
execution)?
In which way CCPM is different?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
6. The project plan is built ONLY with the relationship
Finish to Start. The end of each task has a tangible deliverable without which the
next task CANNOT START.
Why is there the requirement Finish to Start?
To allow for the mechanics of PROJECTING the behaviour of the chain in the execution phase to work.
28d
T2-10d T3-16d
T6-20d
T1-10dBUFFER 50% of the chain
28d
T2-10d T3-16d
T6-20d
T1-17d
BUFFER IS NOT A CUSHION
BUT MANAGEMENT
MECHANISM!
Task 1 started and in Day 3 the resource reports that the task faces a difficulty and it will
take not 7 days to complete, but 14.
The chain went into the buffer for 7 days
In which way CCPM is different?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
Why is the TOC projection mechanism not going to be helpful for managing the
project if the connection is anything different from Finish to Start?
Construction 6 months
Supply 4 months
6. The project plan is built ONLY with the relationship
Finish to Start.
Construction 6 months
Supply 4.5 months
Increase in Task Supply is 2 weeks. So
what? How does this increase in
duration reflect on the START of Task
Construction?
And how often is it discovered that there is delay in supply only WHEN Construction
actually cannot start because the materials are LATE?
In which way CCPM is different?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
Construction 6 months
Supply 4 months
We may hear an argument: it is enough if the supplier ships us of the materials
that we may start the Task Construction. Then the relationship is like that:
Construction 6 months
Supply
the rest - 3 months
Supply
first 1/4 mater.
- 1 month
If the 1/4 of
materials come
with the 2 week
delay:
Construction 6 months
Supply
the rest - 3 months
Supply
first 1/4 mater.
- 1 month+2 weeks
Or supply can still finish
within the initial
estimation
In which way CCPM is different?
6. The project plan is built ONLY with the relationship Finish to Start.
Why is there the requirement Finish to Start?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
7. For every task in the project plan we put the estimation
of task duration that has ONLY 50% probability to be
completed within the estimated time or earlier.
Why?
Bad multitasking Students syndrome Parkinsons Law
Because of the natural behaviour of people to protect themselves by putting safety into the estimation.
What impacts conventional estimations of task duration?
In which way CCPM is different?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
1- Build the project network
Now the projected completion date of the longest chain is 20.08.2013
BUT we have resource contention
8. The project plan is built based on understanding that the
Constraint in Projects is the Duration of the longest chain.
In which way CCPM is different?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
2- Level the resources remove resource contention
The projected completion date of the longest chain moved to 17.09.2013 REALISTIC!
8. The project plan is built based on understanding that the
Constraint in Projects is the Duration of the longest chain.
In which way CCPM is different?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
8. The project plan is built based on understanding that the
Constraint in Projects is the Duration of the longest chain.3 Identify Critical Chain and build resource dependencies
The projected completion date of the longest chain did not change 17.09.2013
New dependencies RESOURCE dependencies are inserted.
In which way CCPM is different?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
BUFFERS A frequent reservation that we hear: But Buffers make the duration of the project 50% longer!! VERY WRONG! Compare:
With 50% durations and buffers the projected completion date for the project is 02.12.2013.
With 80% durations the projected completion date for the project is 05.02.2014.
In which way CCPM is different?
9. The individual safety is removed from each task (due to putting in the plan 50% probability estimations) and accumulated in buffers for common CONTROLLED use.
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
10. CCPM does NOT work on the principle of
TASK DUE DATE!
CCPM works on the principle of Roadrunner- every resource
finishes the task as soon as possible and passes it to the next
resource that will be informed in time and will be waiting.
In which way CCPM is different?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
11. Tasks performers report NOT How Much They Have
Completed (this is looking backwards) but HOW MANY
MORE DAYS IS LEFT FOR THEM TO COMPLETE THE TASK
according to their fresh estimation. This is looking
forward!
TOC
TODAYTHE PAST THE FUTURE
In which way CCPM is different?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
12. DAILY projection of the penetration into the buffers gives early warning that allows to take corrective actions that are not overly expensive and return the project back on its track.
The projection works on the principle of a train on the rail
moving forward and backward in time.
Forward consuming the days from the buffer, Backward
returning the days in the buffer.
In which way CCPM is different?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
12. DAILY projection of the penetration into the buffers gives early warning that allows to take corrective actions that are not overly expensive and return the project back on its track. Today is 20 May, Task C1 (supposed to be finished 06 May) reports that he needs 15 days to complete.
In which way CCPM is different?
Today is 21 May, during the day corrective actions were taken (e.g. expert assistance or adding resources ), and by the end of the day he reports that now he needs 2 days to complete.
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
12. DAILY projection of the penetration into the buffers gives early warning that allows to take corrective actions that are not overly expensive and return the project back on its track.
% Longest Chain Complete
% B
uff
er C
on
sum
ed
100%Buffer penetration Report
In which way CCPM is different?
12th International Conference of the TOC Practitioners Alliance - TOCPACopyright 2014 by Oded Cohen & Jelena Fedurko
www.tocpractice.com
13. Gives the top management quick, comprehensive and clearly visualized way of the project portfolio status.
In which way CCPM is different?
Each dot is a project.
