the three most important things you need to know about reducing project lead time and still delivering on time consistently.

1. Projects in Less Time
3 Secrets to Reducing Lead Time, On Time
Pinnacle Strategies
http://pinnacle-strategies.com
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2. The Standish Group PDI Survey
 75% of completed  91% finish “a little late”
projects are late  51% come in over
 Average cost overruns budget
are 189%  63% overload resources
 Average time overruns  38% do not meet
are 222% expectations
 30% are cancelled before
they finished
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3. Even though there are many types of projects,
the complaints are essentially the same.
• Deliveries are usually late UDE
• Too many changes UDE
UDE
• Over budget
• Excessive rework UDE
• Frequent priority battles
• Require resources with
limited availability
• Compromise scope for cost
or schedule
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4. How to:
Make the
project an
Reduce enriching
project experience?
costs?
Improve
resource
productivity?
Reduce
project
lead times?
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5. Why does project performance suffer?
Resources
Multitasking
PMs Focus
Planning
on the Past

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6. The cost?
Many
Surprises
Many
Meetings
Resources
Multitasking
PMs Focus
Chronic
Planning
on the past Resource
Shortages

Unhappy
People
Poor
Results
http://pinnacle-strategies.com 6

7. 1st Secret to Projects in Less Time
 Build good plans
◦ Focus on
deliverables
◦ Treat task
durations are
forecasts, not
commitments
◦ Recognize the
constraint
http://pinnacle-strategies.com 7

8. 2nd Secret to Projects in Less Time
 Limit the amount of work in process
to maximize flow
http://pinnacle-strategies.com 8

9. 3rd Secret to Projects in Less Time
 Team work around project completion
◦ Make the plan THE plan
◦ Stop blaming and get moving
◦ Focus on the future
◦ Use buffers as
risk management
tool for completion
http://pinnacle-strategies.com 9

10. “In preparing for
battle I have
always found
that plans are
useless, but
planning is
indispensable.”
Dwight D. Eisenhower
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11. We believe more time =
Greater reliability
 Projects are longer than necessary
 Projects have an oversupply of safety time
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12. All task durations in the plan are a
forecast of how long it will take.
Safety Factor
Mean
0% 50% 95%
42.7% of all statistics are
made up on the spot.
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13. Long task durations =
Long project duration
C1: 2d
A: 6d C2: 6d
D: 3d Finish
B: 7d C3: 4d
0 5 10 15
Does anyone actually believe the planned
durations will even be close to actual?
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14. A second problem;
resource contention.
C1: 2d
A: 6d C2: 6d
D: 3d Finish
B: 7d C3: 4d
0 5 10 15
The plan is not feasible!
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15. Steps to Build the Plan
1. Tasks with aggressive estimates
2. Identify the critical chain
3. Buffer the project completion
4. Add feeding buffers
http://pinnacle-strategies.com 15

16. Start with Aggressive Estimates
 Create a network you can commit to
 Estimate tasks at p50, or half the safe estimate
 Start as late as possible
C1: 1d
A: 4d C2: 4d
D: 2d Finish
B: 5d C3: 2d
0 5 10 15 20
http://pinnacle-strategies.com 16

17. Create the Critical Chain
C1: 1d
A: 4d C2: 4d
D: 2d Finish
B: 5d C3: 2d
0 5 10 15 20
 The longest sequence of dependent tasks
after resolving resource contention
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18. Buffer Project Completion
C1: 1d
A: 4d C2: 4d
D: 2d Buffer: 6 d Finish
B: 5d C3: 2d
0 5 10 15 20
http://pinnacle-strategies.com 18

19. Add Feeding Buffers
Feeding Buffer
Buffer: .5d
C1: 1d
A: 4d C2: 4d
D: 2d Buffer: 6 d Finish
Buffer:
B: 5d 2.5 d
C3: 2d
0 5 10 15 20
Feeding Buffer
http://pinnacle-strategies.com 19

20. CCPM Planning Principles
 The plan is necessary, but, like a forecast,
will always be “wrong”.
 Tasks are aggressive, but possible
 Relationships are guided by technical
requirements, not preference
http://pinnacle-strategies.com 20

21. Time spent in planning
reduces overall project duration.
 Builds consensus & teamwork
 Identify early action needs
 Resource needs identified early
 Tests and validates the assumptions
 Creates the baseline for action
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22. The prevailing notion is that to finish
early, one should start early.
Task 3 FB
Task 1 Task 2
Task 5 Task 7 Project Buffer
Task 4 Feed. Buffer
Task 6 FB
Task 3 FB
Task 1 Task 2
Task 5 Task 7 Project Buffer
Task 4 Feed. Buffer
Task 6 FB
Task 3 FB
Task 1 Task 2
Task 5 Task 7 Project Buffer
Task 4 Feed. Buffer
Task 6 FB
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23. Too much
work creates
confusion
about
priorities.
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24. Loading up on projects creates
resource overloads
30
25
Available
Capacity Project 4
Number of Resources
20
Project 3
15 Project 2
Project 1
10
5
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Weeks
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25. Limit the work in the system
 Control work flow by the rate of
constraint resource(s)
http://pinnacle-strategies.com 25

26. Staggering the release of projects
reduces work in process.
Task 3 FB
Task 1 Task 2
Task 5 Task 7 Project Buffer
Task 4 Feed. Buffer
Task 6 FB
Task 3 FB
Task 1 Task 2
Task 5 Task 7 Project Buffer
Task 4 Feed. Buffer
Task 6 FB
Task 3 FB
Task 1 Task 2
Task 5 Task 7 Project Buffer
Task 4 Feed. Buffer
Task 6 FB
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27. Staggering release evens out the
resource load.
12 Project 4
Project 3
10
Project 2
Project 1
Number of Resources
8
6
4
2
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Weeks
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28. Staggering release reduces project
duration and reduces resource
contention.
1 2 3 4 5 BUFFER Project A
1 2 3 4 5 BUFFER Project B
Staggering Projects Accelerate Completion and
Reduce Resource Contention
1 2 3 4 5 BUFFER
1 2 3 4 5 BUFFER
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29. Project teams are often devoted to
their individual agendas.
 Protecting
reputations
 Defending original
task duration
estimates
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30. Human behavior causes the safety
built into tasks to be wasted.
 Multi-tasking
 Student Syndrome
 Parkinson’s law
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31. Multitasking Adds Significant Time
My Assignments
Task 1 Task 2 Task 3
10 days 10 days 10 days
Task 1 Task 2 Task 3 Task 1 Task 2 Task 3
5 days 5 days 5 days 5 days 5 days 5 days
20 days
25 days
30 days
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32. Multitasking Causes
 Poor planning /
priority shifting
 Drive to show
progress on all
projects
 Earned value focus
on all activities
http://pinnacle-strategies.com 32

33. The way people work on a project
has a profound impact on its
duration.
 Relay runner work ethic
 Eliminate any penalty for missing task
estimates
 One day response
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34. The only meaningful measurement
of project status is the answer to
this question:
 When will the
project be
complete?
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35. What is the Status of This Project?
C1: 2d
A: 6d C2: 6d
D: 3d Finish
B: 7d C3: 4d
0 5 10 15
Task A is 20% complete • 25% Complete?
Task B is 70% complete • 8% Complete?
Task C1 is 50% complete
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36. Project Status Calculation
Task Estimate % Complete Remaining % Complete
A 6 20% 4.8
C1 2 50% 1
C2 6 6
B 7 70% 2.1
C3 4 4
D 3 3
Total 28 20.9 25%
Critical 15 13.8 8%
Path
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37. It’s hard to know where to focus
the team’s efforts.
http://pinnacle-strategies.com 37

38. The most successful projects
have the best negotiators leading
the project.
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39. Buffer Burn Ratio is the guiding
measurement to project status.
 Relationship
of buffer
consumption
to
 Work
completed
 Indication of Today
risk to
achieving
project due
date
 Identifies the
work that is
important
NOW
http://pinnacle-strategies.com 39

40. Burn Ratio Directs the Action
 When the % buffer
consumed is less than
Action
% of work Threshold
◦ Project is “green” Today
◦ Risk of being late is low
Planning
 When the % buffer Threshold
consumed is greater
than % of work
◦ Project is “red”
◦ Project is at risk
◦ It’s time to do something
different
http://pinnacle-strategies.com 40

41. Burn Ratio shows snapshot of the
health of all the projects
The System Buffer Consumption Report
100%
Project Bengal Action
% PB Consumed
 Jaguar
Threshold

Panther
Leopard lynx Planning

  Cheetah Threshold

Cougar

0%
0% 100%
% CC Completed
http://pinnacle-strategies.com 41

42. Focus on Project Completion
 Eliminate multi-tasking
◦ Don’t start a task unless it can be finished
◦ Project meetings focus when the next task
will be completed
 Adopt the relay racer mentality
◦ Teamwork
◦ Full effort on tasks until completion
◦ 24 hour response time
 During the project, measure quality, not
productivity
http://pinnacle-strategies.com 42

43. CCPM Execution Benefits
 FOCUS
 Significant reduction in behavioral delays
◦ Multi-tasking
◦ Student syndrome
 Future-based management
 Improved teamwork
 Shorter execution times
 Improved productivity
 A good experience
http://pinnacle-strategies.com 43

44. CCPM Concerns
 What to do with the extra capacity?
 It’s hard to do?
 Culture is a big obstacle?
 Is software necessary?
http://pinnacle-strategies.com 44

45. Eight Steps to Implementation
1. Management consensus on the business
need
2. Buy-in on improvement potential
3. Buy-in on the rules and set ambitious
targets
4. Design the solution
5. Create the pipeline plan
6. Task management processes
7. Supporting processes implementation
8. Continue to improve
http://pinnacle-strategies.com 45

46. What can I do now?
Reduce the number of projects in
process
Allocate the available resources to
remaining open projects
Full-kit implementation
Reintroduce projects as other
projects are completed
Release new projects using CCPM
planning
http://pinnacle-strategies.com 46

47. CCPM In Projects
An
enriching
Reduced experience
costs
Improved
resource
productivity
Completed
in less time
http://pinnacle-strategies.com 47

48. Horace Wilcox

50. Projects in Less Time
Critical Chain Project Management
Pinnacle Strategies
http://pinnacle-strategies.com
http://pinnacle-strategies.com 50