Ccpm1daytrainingextractpdfv1 PDF

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
1. Introduction
2. Overview of the Theory Of Constraints (TOC)
© Marris Consulting
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
© 2015 - 2016. Marris Consulting. All rights reserved. Critical Chain Project Management – CCPM – Will you dare to finish all your projects on time? 3
Training CCPM V1.0 En Exctract 20151018 Extract of Training material – Inter company session – 12th of May 2016 – Paris, France
Introduction Factories, People & Results
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.
Marris Consulting
 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, 2 nd 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: © Marris Consulting
Factories, People & Results.
Introduction Factories, People & Results
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
1. Introduction

10. Conclusion
11. Annexes
Overview of the Theory Of Constraints (TOC) Factories, People & Results
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.
Focus on improving the system constraints that determine overall performance
It is no longer possible to distribute work equitably:

organizations are necessarily unbalanced
 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

The 5 step process of on-going improvement of the Theory Of Constraints
Easy to do in production
1. IDENTIFY the system's constraint(s).
but not in projects
Without investissements
2. Decide how to EXPLOIT the system's constraint in $ or in time
The most
3. SUBORDINATE everything else to the above decision. difficult step
With investissements
4. ELEVATE the system's constraint in $ or in time
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).
The different components of the Theory Of Constraints (TOC)
Theory Of Constraints (TOC)

Importance
of constraints
in the ideas Approach initiated by Eliyahu Goldratt Thinking Processes

A systemic view seeking the global optimum This could be considered to
be at another higher level
based on a dual view of constraints/bottlenecks & non-constraints than simply a component
Drum – Buffer - Rope Critical Chain (CCPM) Replenishment Marketing & Sales
Production Management Project Management Distribution Marketing & Sales
The importance of constraints, Project Buffer (not "local" tasks), High frequency periodic Mafia Offer or (URO)
DBR & S-DBR, Fever Chart, Critical Chain (not replenishment, stocks centralized + Decisive Competitive Edge
Focused approach, … Path), Bad Multi-tasking, Student (not too distributed), (DCE) + Delta T-Selling
[historical origin of approach] syndrome, … [DDMRP?] + Sales force constraints
Throughput Accounting Value Added Computing Thinking Processes Other new ideas !?
Financial decision making Information Systems Problem resolution
T,I,O.E. : Throughput, Inventory Data & Information Evaporating Cloud, Goal Tree, Standing on shoulders
© Marris Consulting of giants,
& Operating Expenses, TBDM, Necessary but not sufficient Strategic & Tactic Trees, Behavior & Organizations, Viable
Dollar x Days, Total Variable The 6 questions Current/Future Reality Tree, Pre- Vision, Strategy,
Cost, Product Mix [Philip Marris' personal opinion] requisite & Transition Trees KM, + new TA ,… ?
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
Marris Consulting
CCPM can, simultaneously, significantly reduce project durations and increase the efficiency
(productivity) of the resources involved.
Worst Best
Results Average
case case
Project durations - 39% - 13% - 78 % See annexe for a list of cases.

A more complete list
is available at
Number of projects
completed in a given time + 70 % + 15% + 222% www.chaine-critique.com
Throughput + 53% + 14% + 150%

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.
1. Introduction

10. Conclusion
11. Annexes
The project manager's problems and dilemmas Factories, People & Results
… 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
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
PERT formula matches with the median

Most likely
High
Optimistic + 4 * Most likely + Pessimistic Use of the true PERT
6 method is rare
and usually inadequate
heaviness of estimations
no probabilistic calculation
Completion
inconsistent management
probability
Optimistic
Pessimistic
Low © Marris Consulting
Shorter Possible duration Longer
Parkinson’s law
« Work expands so as to fill

© Marris Consulting the time available
for its completion »
Completion
probability
80 % of tasks finished
exactly on time!
50 % 80 %
Duration
1. Introduction

10. Conclusion
11. Annexes
Multi-tasking game Factories, People & Results
Multi-tasking
 Fill out 4 columns: Start 0 Start A
2 B
- Task A: Even numbers starting from 0
- Task B: Letters of the alphabet starting from A
© Marris Consulting Start 1 Start T
3 H
- Task C: Odd numbers starting from 1
- Task D: Write “THE_CRITICAL_CHAIN" Start 0
2
 First round: single task mode
 Second round: multi-tasking mode
End
Once you have finished this task,

write down the time displayed
Multiple projects and bad multi-tasking
Multi-tasking is frequently the main cause of low productivity

Task A Task B Multi-tasking delays all tasks

Project 1 Project 2
The switching time

A B A B A B between each task
increases execution time and
reduces productivity and quality
With multi-tasking, a task takes longer and is more error prone
Conclusion:
Traditional project management is ineffective and generates time uncertainty
© Marris Consulting 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
Critical Chain planning rules Factories, People & Results
A traditional plan
Task name
End
 The critical path doesn’t integrate resource constraints

 Non critical tasks are planned as soon as possible © Marris Consulting
 Levelling is hardly ever done
Critical Chain Planning

Step 1: Remove individual task safety buffers
Task name
End
 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

Step 4: Critical chain identification
Task name
End
 The Critical Chain is the longest path of dependencies between tasks

 The Critical Chain is the constraint of the project and determines its duration © Marris Consulting
 Unlike the critical path, the Critical Chain is stable and encourages focus

Step 5: Buffer calculation and insertion
Project buffer
 The project buffer aggregates the safeties of all critical tasks © Marris Consulting
 About one third of the project duration is allocated to the project buffer
 With feeding buffers, non critical tasks will start just in time
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
© Marris Consulting 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! © Marris Consulting
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 inConsulting
Marris 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. Project 03 Critical Chain
Project 11 Critical Chain




System constraint and/or "Control Point"
1. Introduction

10. Conclusion
11. Annexes
1. Introduction

10. Conclusion
11. Annexes
Project execution and performance indicators Factories, People & Results
Critical Chain Tracking

Case 2: Behind schedule
 Uncompleted work is rescheduled after the status date © Marris Consulting
 When a critical task is late (more than 50% estimate), the delay consumes the project buffer
Project monitoring is much easier with the Fever Chart

Red zone = risky zone  start right now
Yellow zone= warning corrective actions
zone  identify main
cause of delay and prepare 100%
% consumption of the project buffer

action plan
90%
80%
Week 5
70% W4 Finished project
Week 6 with project buffer
60%
not fully consumed
50%
This means that the
40%
project finished
30%
W2 Week 3 before the end date
Green zone = 20%
W1
comfort zone  no
10% © Marris Consulting
action needed
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% of Critical Chain completion
The portfolio Fever Chart greatly facilitates dynamic arbitration between projects
100%
% consumption of the project buffer

Projects 1 & 2: P4 Project 4:
urgent action 90% Finished exactly
© Marris Consulting P2
needed! on time
80%
70% P3
60%
P1 P5 P19 P6
50%
P17
40% P15 P16
P14
30% P18
P13 P10 P12
Projects 7 to 20: 20% Project 6:
P20
Finished before
(green zone ) P8 P9 P11
nothing to report 10% the end date
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% of Critical Chain completion
The Fever Chart helps to quickly track all the projects in the portfolio
with objectivity and transparency
1. Introduction

10. Conclusion
11. Annexes
Nouveaux comportements Factories, People & Results
New behaviors
SENIOR MANAGEMENT: employees need trust, not micro-management
Current behavior New behavior
Fail to consider the portfolio constraint of the Identification of the portfolio constraint of the
organization organization
Delivery dates calculated with Critical Chain plans

Arbitrary delivery dates
and portfolio constraint schedule
Stagger projects using the portfolio constraint

Start project as soon some as the budget is available
schedule
Prioritize resource conflicts with relative project

Authoritarian interruptions
buffer consumption
Detailed projects inspections Monitoring with Fever Chart
Nouveaux comportements Factories, People & Results
New behaviors
PROJECT MANAGER: focalized on the Critical Chain and buffers
Current behavior New behavior

Aggregation of safeties in a project buffer
Safety duration in each task
(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 Positive feedback if resources perform to relay-racer
task behavior
Start tasks as early as possible Start tasks just on time
Get resource when it is available Get resource when it is necessary © Marris Consulting
Progress report with earned value and schedule

Progress report with Fever Chart and Pareto diagram
variance
1. Introduction

10. Conclusion
11. Annexes
How to implement, references and examples Factories, People & Results
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.
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
"Throughput" multiplié par deux

1 Aérospatiale Conception & assemblage Boeing Space & Intelligence Systems
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%
Boeing Wing Terminé à temps, sous le budget prévu.

4 Aéronautique Engineering
Assembly Réduction du temps d'assemblage des ailes de 50% (F-22)
Augmentation de 23% des moteurs produits par an.

5 Aéronautique Maintenance Delta Air Unes, Inc.
Réduction de 30% du temps de traitement du moteur.
Fabrication et maintenance
6 Aéronautique Erickson Air-Crane Augmentation du nombre de projets terminés à temps de 33% à 83%.
d'hélicoptères
Engineering &
7 Aéronautique Lockheed Martin Diminution de 57% du temps pour terminer complément l'avion sans réduction du périmètre
assemblage
8 Aéronautique Engineering Spirit Aerosystems Réduction du temps de cycle de plus de 12 à 7 mois.
Alcan Alesa
9 Aluminium Engineering Augmentation du nombre de projets terminés à plus de 30%
Technologies
10 Automobile Développement produit Chrysler Réduction du temps de cycle de construction des prototypes de 10 à 8 semaines
Gain de 63% en productivité

11 Automobile Engineering ThyssenKrupp
15% de projets terminés en plus.
12 Biotechnologie Engineering Danisco (Genencor) Augmentation des projets terminés à temps de 20% à 87%
Airgo Networks © Marris Consulting

13 Communications Développement produit Amélioration du temps de cycle de 19 à 8 mois.
(Qualcomm)
14
We update the list
Communications
on www.chaine-critique.com
Conception de commutateur télécom Alcatel-Lucent
regularly. An English version will be available soon.
Augmentation de 45% du "Throughput" par personne
Développement de logiciels
15 Communications
(See « Pourpersonnalisés
aller plus loin/ CasAmdocs
pratiques / Les résultats de la Chaîne Critique »)
14% d'augmentation des revenues/homme-mois; Réduction de 20% du temps de cycle
Amélioration de la livraison à temps de 75 à plus de 98%.

16 Communications Conception et installation d'un réseau eIRcom
© 2015 - 2016. Marris Consulting. All rights reserved. Critical Chain Project Management – CCPM – Will you En moyenne,
dare to finishleall
temps
yourdeprojects
cycle a diminué de 70 à 30 jours
on time? 66
Training CCPM V1.0 En Exctract 20151018 Extract of Training material – Inter company session De
– 12 th of May 2016 – Paris, France
40 à plus de 90% de projets terminés à temps
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,
Marris Consulting
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.
5 months Late!
Buffer
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 © Marris Consulting
- 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
LYNX
Concerto
Aurora-CCPM
CCPM+
Asta Powerproject
1. Introduction

8. Necessary new behaviours
9. Conclusion
a. Summary
b. Benefits and Preoccupations © Marris Consulting
10. Annexes
Conclusion Factories, People & Results
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.
Marris Consulting
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.
Lean Engineering
(Toyota New Product Development System)
Critical Chain Project Management

Year 1 Year 2 Year 3 Year 4 Year 5
Conclusion Factories, People & Results
A summary of the Critical Chain way for managing project portfolios

 The only important goal is to finish your projects on time, within Results Average
budget and conform to specifications.
Project durations - 39% -
 ©Safety
Marris Consulting
buffers are positioned globally not locally. They can therefore
be reduced since they will not be wasted. Number of projects
+ 70 % +1
completed in a given time
 Projects are sequenced to limit the work in progress and devastating

multi-tasking. Projects are started later so that they can finish earlier. Throughput + 53% +
 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?
1. Introduction

9. Conclusion
a. Summary
b. Benefits and Preoccupations © Marris Consulting
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
Annexes Factories, People & Results
Critical Chain Project Management results around the world (#1/5)

"Throughput" multiplié par deux

1 Aérospatiale Conception & assemblage Boeing Space & Intelligence Systems
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%
Boeing Wing Terminé à temps, sous le budget prévu.

4 Aéronautique Engineering
Assembly Réduction du temps d'assemblage des ailes de 50% (F-22)
Augmentation de 23% des moteurs produits par an.

5 Aéronautique Maintenance Delta Air Unes, Inc.
Réduction de 30% du temps de traitement du moteur.
Fabrication et maintenance
6 Aéronautique Erickson Air-Crane Augmentation du nombre de projets terminés à temps de 33% à 83%.
d'hélicoptères
Engineering &
7 Aéronautique Lockheed Martin Diminution de 57% du temps pour terminer complément l'avion sans réduction du périmètre
assemblage
8 Aéronautique Engineering Spirit Aerosystems Réduction du temps de cycle de plus de 12 à 7 mois.
Alcan Alesa
9 Aluminium Engineering Augmentation du nombre de projets terminés à plus de 30%
Technologies
10 Automobile Développement produit Chrysler Réduction du temps de cycle de construction des prototypes de 10 à 8 semaines
Gain de 63% en productivité

11 Automobile Engineering ThyssenKrupp
15% de projets terminés en plus.
12 Biotechnologie Engineering Danisco (Genencor) Augmentation des projets terminés à temps de 20% à 87%
Airgo Networks © Marris Consulting

13 Communications Développement produit Amélioration du temps de cycle de 19 à 8 mois.
(Qualcomm)
14 Communications Conception de commutateur télécom Alcatel-Lucent Augmentation de 45% du "Throughput" par personne
Développement de logiciels
15 Communications Amdocs 14% d'augmentation des revenues/homme-mois; Réduction de 20% du temps de cycle
personnalisés

© 2015 - 2016. Marris Consulting. All rights reserved. Critical Chain Project Management – CCPM – Will you En moyenne,
dare to finishleall
temps
yourdeprojects
cycle a diminué de 70 à 30 jours
on time? 87
Training CCPM V1.0 En Exctract 20151018 Extract of Training material – Inter company session De
– 12 th of May 2016 – Paris, France
40 à plus de 90% de projets terminés à temps


En moyenne, le temps de cycle a diminué de 70 à 30 jours
De 40 à plus de 90% de projets terminés à temps

17 Communications IT eIRcom
© Marris Consulting Réduction du délai de traitement de 150 jours à 30 jours.
Conception, installation et mise en Action Park

18 Construction Augmentation du nombre de projets terminés de 121 à 153.
service d'un parc d'attraction Multiforme Grupo
Californie Construction et ouverture d'un nouvel hopital psychiatrique, en 6 mois tandis que d'autres approches ont
19 Construction Nouveau Centre Hospitalier
Department of Corrections échoué à le faire en 12 mois
Réduction de la durée des projets de 11 mois en moyenne à 7.

20 Construction Usine de fabrication emcocables
Augmentation des revenues de 55%, reçus 4 mois en avance.
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.
Time to market 20% plus rapide

23 Biens de consommation Développement produit Heineken, Spain
Amélioration des projets terminés à temps de 90% à 98%
HP Digital Camera
24 Biens de consommation Développement produit Amélioration des nouveaux produits de 6 mois en 2004 à 15 lancements en 2005
Group
25 Biens de consommation Ventes Oregon Freeze Dry Augmentation du nombre de projets de ventes terminés par an de 72 à 171
Défense
26 Conception Produit et manufacturing Tecnobit Réduction du temps de cycle projet par 20%
manufacturing
Biens Hamilton Beach Augmentation de 34 à 52 nouveaux produits durant la première année. À plus de 70, la seconde année, sans
27 Développement produit
durables Brands, Inc. augmentation du nombre d'effectifs
Biens Fabrication et installation d'une © Marris Consulting

Réduction du temps de cycle projet moyen de 75 jours à 46 jours, et augmentation de la capacité projet de
28 TRS Refrigeration
durables conception personnalisée 30% sans renforcement de la main-d'œuvre
Gain de 700 million $ avec accélération des projets et production nécessaire pour répondre aux besoins du
29 Energie Nettoyage BP Oil
projet.
30 Energie Engineering FMC Technologies Réduction de 50% du temps alloué pour le test et l'assemblage final

LeTourneau
31 Energie Conception & manufacturing Réduction du design & engineering de 15 à 9 mois, et de la production engineering de 9 à 5 mois
Technologies Inc.
Temps de cycle réduit de 17 à 14 semaines, tant disque les projets terminé à temps ont augmenté de 80% à
32 Energie Engineering Von Ardenne
© Marris Consulting 90%
33 Services Financiers Développement logiciel Confluence UK 95% des projets sont terminés à temps
Salle d'urgence et hôpital patient comme Oxford-Radcliffe L'augmentation des patients dans la salle d'urgence de <70% dans les quatre heures à 100%, tandis que le
34 Santé
un projet Hospitals, UK nombre de patients a augmenté de plus de 25%.
Engineering &
35 Manufacturing Rex Materials Group Baisse du lead time de 6 semaines à 10 jours
manufacturing
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 €)
Le délai de traitement réduit de 25-30%

40 Militaire Maintenance, logistique et test U.S. Air Force (multiple bases)
Plusieurs avions retournés à la force aérienne
U.S. Army Fleet

41 Militaire Maintenance de la flotte de l'armée Réduction de 32% du délai de traitement du CH-47 et 52% du UH-60
Support
U.S. Army, Corpus

42 Militaire Maintenance Augmentation du "Throughput" de 5,4 à 6,3 avions.
Christi
Division de 50% du temps de cycle de réparation,
U.S. Marine Corps
43 Militaire Maintenance & Logistique Augmentation de la livraison à temps de 95%,
(Multiple bases)
Augmentation du pourcentage produit
Augmentation de 83% des projets terminés à temps durant les 12 premières semaines
44 Pharmaceutique Développement produit Dr. Reddy's Laboratories
75% d'augmentation de lancement des nouveaux produits d'une année à une autre
Augmentation des projets terminés de 5 à 8 par trimestre.

45 Pharmaceutique Développement produit P&G Pharmaceuticals
Le taux de projets terminés à temps passe de 55% à 90%

ABB AG, Power

46 Power Engineering Augmentation du "Throughput" de 30% de 300 baies à 430 baies par an
Tech. Division
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
Siemens Generator
51 Power Engineering Passage de 110 à 128 projets terminés, avec une augmentation de 30% du "Throughput"
Engineering
Augmentation de 30% des boitiers par an.

52 Power Engineering Skoda Power
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.
Réduction de 25% en besoin d'heures pour terminer un projet

55 Resource Engineering BHP Billiton
Projets terminés 3 semaines plutôt
56 Semi-conducteur Conception & manufacturing e2V Semiconductors Réduction du temps de cycle de 38 à 23 mois
Harris
57 Semi-conducteur Construction d'usine Démarrage de la production high-tech en 13 mois, au lieu de 54 mois communément en industrie
Semiconductor
Ismeca
58 Semi-conducteur Engineering Réduction de 25% du temps de cycle de 84 jours à 64.
Semiconductor
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
Réduction du temps de cycle par 25%

60 Software Développement logiciel Alna Software
Augmentation des projets achevés de 17%

Réduction du temps de cycle par 2 à 4 mois

61 Software Systèmes de simulation de vol CAE USA
Augmentation de 37 million $ dans le nombre de programme profitable
© Marris
62 Consulting 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
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
Resources for further study Factories, People & Results
Marris Consulting's YouTube Channel

(name: marrisconsulting)
A permanent news website dedicated to CCPM
http://www.scoop.it/t/critical-chain-project-management
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 Warning: this book is incomplete
who "invented" CCPM
since it only covers single project
management. It does not deal with
 Eliyahu Goldratt project portfolios.
 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. © Marris Consulting
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
January 2013
March 2014
For further study:

Rajeev Athavale's "Do-It-Yourself" books
Languages
English
Spanish
French
German
Italian © Marris Consulting
…and soon more!
www.leanpub.com
Available formats: PDF, EPUB (for iPad), MOBI (for Kindle)
Annexes
Trainer's curriculum vitae Factories, People & Results
Philip Marris, Founder and CEO of Marris Consulting

Transformation & Theory Of Constraints expert
28 years of experience, 55 years old, Supply Chain & Manufacturing expert
Bilingual & bicultural English/French
COMPETENCIES MISSIONS / RESULTS
 Transformation programs in industry  R&D & Industrialisation / Engineering / New Product Development:
 Industrial Excellence Expert (manufacturing and product development). – Complete transformation of an Engineering department of 150 people. Reduction in project durations
Recognized expert in Lean, Six Sigma and Theory Of Constraints. Often of over 40%. Improvement in productivity of over 25%. Projects completed on time went from less
combines these ("TLS"). than 30% to over 85%.
 Author of an industrial management bestseller in France: Le Management Par les – New product development and product relooking: reduction of over 45% of average project duration,
Contraintes en gestion industrielle, Editions d'Organisation [1994, 1996, 2000, increase in number of projects completed each year of over 50%.
2nd Edition currently underway). – New product portfolio analysis and development strategy
– Quotation process reengineering: handling speed multiplied by 4.
FORMER POSITIONS
– Organisation handling large Requests For Proposals in a large MRO firm: improvement in the success
 Cap Gemini Ernst & Young / Bossard Consultant: In charge of Manufacturing rate of proposals submitted from 20% to 55%.
Operations for France & Europe (>200 consultants)  Production, Operations & Supply Chain :
 Cap Sogeti Industrie – Worldwide automotive OEM tier 1 supplier: increase in Throughput of 17% in 15 minutes. Savings
 Creative Output: collaborated with E. Goldratt author of The Goal >$400M per year. saved relationship with largest customer.
 Vallourec: Shop floor foreman, Methods Engineer – Large MRO (Maintenance, Renewal & Overhaul) Division of a major European railway operator
 Professor at HEC Management School (Supply Chain & Manufacturing). (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
SECTORS / CLIENTS underway over 2 years after the end of our assignment.
 Over 150 engagements in industry. – Manufacturing flexibility: reduction of over 50% in the production lead time of a steel mill.
 Aeronautical – Labour productivity: furniture manufacturer +35% in 6 weeks, M.R.O: 20% in 9 months,
 Pharmaceuticals manufacturing equipment (assembly) +70%, ...
 Automobile industry: car makers and suppliers – Automotive Supplier (France, 350p.): Increase in the O.E.E. of the bottleneck resource by more than
 Process industry: steel, glass, cardboard, extruded plastic 30%, change from 5x8 shifts to 2x8 while providing the same output.
 World leader in ball bearings – Complete reengineering of the Supply Chain of a steel manufacturer: © Marris Consulting
Long term strategic planning,
 World leader in railway rolling stock M.R.O. Sales & Operations Planning, Scheduling. Implementation of TOC/MPC. Increase in 40 points of the
 Packaging: cardboard, steel, plastic due date performance
 Electrical power systems: world wide leader – 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.
 Furniture manufacturer, Marine engine manufacturer, Armoured vehicles
manufacturer, Electronics: printed circuit boards, … – 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%.
Trainer's curriculum vitae Factories, People & Results
Eric Robin, Managing Consultant

Project Management and Critical Chain Project Management expert
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 MISSIONS / RÉSULTATS
 Project Management (PMI, Critical Chain  Project management:
 Process modeling (ARIS/EPC) – Critical Chain project to improve new products development for a capital goods medium business:
 Strategy of organizations pilot projects, pilot portfolio, deployment, software selection, …
– Critical Chain planning of a production transfer for a pharmaceutical market leader (100 K€ / day of
 Theory of constraints
downtime)
 Requirement engineering and software testing – Critical Chain planning of a simultaneous engineering process for the subsidiary of a large industrial
 Selection and implementation of software packages group (30 engineers, 100 M€)
 Statistic and R language – Fast recovery of a delayed satellite project for one of the major actors in design and production of
 Certifications: ITIL, IREB, ISTQB 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
POSITIONS OCCUPIED
– Definition of project management standards for a construction company
 Independent consultant and Marris Consulting partner – Structuring of a project quality plan for a software editor
 UNILOG: South Region e-business manager – Critical chain training for companies and universities (> 50 sessions)
 Cambridge Technology Partners: CRM project manager  Information systems:
 BNP DB3A: Software team manager for market makers – Selection of PLM package for the subsidiary of a large industrial group
 ATT Dataid: Project manager – Selection and integration of an ERP package for a small aeronautic company (50 employees)
 DEC: Software engineer consultant for the banking sector – Enterprise architecture audit for a large group (300 computer applications)
 Process management:
– Formalization of a simultaneous engineering process
SECTORS/ CLIENTS
– Definition and deployment of a configuration management tool for a software editor (50 developers)
 Capital goods – Balanced scorecard for an SME © Marris Consulting
 Engineering companies: R&D, Buildings, Plants  Others:
 Pharmaceutical – Design of a budget management tool based on throughput accounting
 Software editors – Sales statistical analysis for a software editor
 Market finance – Facilitation of management seminars
Annexes
Marris Consulting Factories, People & Results
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), … © Marris Consulting
 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), …
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.
We are honoured to have been able to help…
Aerospace
Procter & Gamble
Diehl Metering Group
Communications & Sécurité – C4I
GKN
Marris Consulting: Factories, People & Results

 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 Factories, People & Results
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 © Marris Consulting
Paris 75015
France
Tel. +33 (0) 1 71 19 90 40
www.marris-consulting.com

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Critical Chain Project Management

Will you dare to finish all your projects on time?

Paris, May12th 2016

3. The project manager's problems and dilemmas

Training facilitator: Philip Marris, CEO Marris Consulting

Factories, People & Results.

Training facilitator: Eric Robin, Senior Manager

3. The project manager's problems and dilemmas

 Over 5 million copies sold in 26 languages. Mandatory

Focus on improving the system constraints that determine overall performance

It is no longer possible to distribute work equitably:

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

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

The different components of the Theory Of Constraints (TOC)

Theory Of Constraints (TOC)

in the ideas Approach initiated by Eliyahu Goldratt Thinking Processes

Project durations - 39% - 13% - 78 % See annexe for a list of cases.

Throughput + 53% + 14% + 150%

3. The project manager's problems and dilemmas

… but difficult to master

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

Current mode of operation

With project management, time is the key variable

PERT weighted average

PERT formula matches with the median

Low © Marris Consulting

Shorter Possible duration Longer

« Work expands so as to fill

3. The project manager's problems and dilemmas

 First round: single task mode

 Second round: multi-tasking mode

Once you have finished this task,

Multiple projects and bad multi-tasking

Multi-tasking is frequently the main cause of low productivity

Task A Task B Multi-tasking delays all tasks

The switching time

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

© Marris Consulting Project plans contain a lot of local safety buffers

Several behaviors and situations prevent statistical

3. The project manager's problems and dilemmas

 The critical path doesn’t integrate resource constraints

 Levelling is hardly ever done

Critical Chain Planning

Critical Chain Planning

 The Critical Chain is the longest path of dependencies between tasks

Critical Chain Planning

Then, during project execution,

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

Project staggering helps reduce bad multi-tasking

To finish your projects on time, start them later! © Marris Consulting

There are 2 type of constraints in multi-project management

Project 11 Critical Chain

Project 12 Critical Chain

Project 06 Critical Chain

Project 08 Critical Chain

Project 10 Critical Chain

Project 09 Critical Chain

3. The project manager's problems and dilemmas

3. The project manager's problems and dilemmas

Critical Chain Tracking

 Uncompleted work is rescheduled after the status date © Marris Consulting

Project monitoring is much easier with the Fever Chart

cause of delay and prepare 100%