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IS 556 Enterprise Project Management


IS 556 Enterprise Project Management. 1. IS 556 -Spring 2008. Lecture 2 Apr 7, ... some tasks overrun, some tasks underrun, the distribution of the sum is not as ... – PowerPoint PPT presentation

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Title: IS 556 Enterprise Project Management

IS 556 Enterprise Project Management

  • Critical Chain Project Management Other
    FrameworksLeach - Chapter 2

Multiple Perspectives on Project System
Executeprojects effectively
Continually improve every PROCESS
Theory of Constraints
Identifies system constraintsWorks to improve
  • Project Management Book of Knowledge
  • Framework that defines the areas that require
    management attention.
  • 9 knowledge areas
  • 5 types of processes
  • It does not tell what areas need more attention
    than others under what circumstances so theres
    a tremendous amount of managerial attention spent
    on items that may not need it

PMBOK and Critical Chain
  • Of the 9 knowledge areas, CCPM impacts the
    following ones in bold.
  • Integration
  • Scope
  • Time
  • Cost
  • Quality
  • Human Resources
  • Communications
  • Risk (no common-cause special-cause
  • Procurement

TOC Theory of Constraints
  • Looks at individual project tasks logically as
    the operation of a system for producing the
    result or output of the tasks.
  • Determines
  • What to change
  • What to change to
  • How to cause the change
  • 5 focusing steps provide the steps to implement
    the improvement process
  • Identify the constraint
  • Exploit the constraint
  • Subordinate everything else to the constraint
  • Elevate the constraint
  • Do NOT let inertia prevent further improvement

TOC system o/p limited by constraint
TOC Theory of Constraints
  • Must first identify the system constraint (core
    conflict) leading to the undesired effects of
    present project system (or current theory). Core
    conflict identifies what to change.
  • TOC leads to a new system design or what to

Change Management
  • Necessary to implement the degree of behavior
    change necessary to achieve the results promised
    by CCPM.

  • Critical Chain Project Management Direction the
    Solution Should Take Leach - Chapter 3

Defining the PM System
When you look at the PM System this way it
becomes obvious that the undesired effects
area direct result of what weare doing.
Thus, we need to look to see if theres a
underlying conflict or dilemma common to
projects. So, we must find the dilemma.
The black-box view of the PM System which
processes Inputs to produce Outputs
that satisfy the
system goal
Identifying the Dilemma (PM Constraint)
  • Goal of projects is to get done fast. Why?
  • Pouring money into project from inception
  • Getting benefits out of project only on
  • Most projects plan their schedules using the
    critical path method which has been around for
    over 40 years.

Critical Path Method (CPM) Schedule
Note we have 2 people (resources) working on
project -- 1 startsworking on tasks 1,3, 5 at
same time. Because resources are
splittingactivities and the dependencies make
completion almost impossible.
CPM Actual Task Performance
Note that date is now Sept 13th over a month
later. Because all3 beginning tasks of 1 are
done simultaneously, each takes 3 timeslonger
because each duration on original assumed 100
CPM- Resource Leveled Schedule
Resource leveling rescheduling activities so
resource limits not exceeded
The software had only tasks 5 and 6 in the
critical path becausethe Critical Path is NOT
determined after resource leveling. The CP
isdefined as having no slack because it is the
longest path to completion.
Critical Chain longest path after resource
The critical chain consists of both the time and
the person (resource)constraint.
Exploit the Constraint
  • To have a successful project, every task on the
    critical path completes on schedule.
  • To do that, we must plan every task to include a
    contingency (difference between a 50 probable
    estimate and a 90 probable estimate) because of
    the uncertainty present.
  • Therefore, every task estimate will include this
    contingency but it is buried in the task
  • But, that leads to reallllllly long estimates so
    the PM cuts out what is assumed to be
    contingencywhich leads to the EVAPORATING CLOUD
    for this dilemma.

1st Conflict ?Task Time Conflict
3 typical reasons given for projects overruns-1-
group responsible for the late part of the
project was sloppy -2- people always
underestimate how long it will take -3-
management set arbitrary dates
Several Syndromes in Action
  • Murphys Law
  • What can go wrong, will go wrong, does go wrong
  • Parkinsons Law
  • Work expands to fill the time scheduled.
  • Students Syndrome
  • No matter how much time committed to project,
    effort expands as urgency increases.
  • This leads to the 2nd conflict

2nd Conflict Successful Completion Rewards
The answer is to do extra checks and improve the
quality of the task I am doing.
Typical Work Pattern
Yet, if this is true then why do most PM
literature recommend the useof the early-start
schedule. The team knows that theres slack.
HMMMMCan you guess what really happens?
  • So, everyone starts projects as the earliest
    possible date leading to working on several tasks
  • So if you start 3 tasks at the same time and each
    task takes 1 week then, at best the three tasks
    will all take 3 weeks to complete. This assumes
    that there is no time lost for task switching.
  • This leads to the 3rd conflict.

3rd Conflict The Multitasking Conflict
Multitasking delays all projects. Also justifies
using longer task times in future plans
Resolving Core Conflict
  • Because you cannot make predictions about a
    single instance of a statistical events,
    concentrate the uncertainty for many tasks of a
    project at end of the project.
  • Concentrate contingency in the buffer leads to 2
  • 1st SHORTER PLAN because when we take out the
    task buffers and put at the end of the path, they
    add up to the square root of the sum of the
    squares of the amount removed --- some tasks
    overrun, some tasks underrun, the distribution of
    the sum is not as large as the sum of the
    individual variations because some cancel out!!

Contingency (Buffers) at end of Project
The key part of the solution is to use average
task completiontimes in the plan and to add an
aggregated buffer at the end of the plan for
overall project contingency.
  • Hmwk wk 2 on COL

Hmwk wk2 Due Session 3
  • In Leach text section 2.5.3 Rewards are
    discussed. Based on what Leach says and any
    other sources you have, answer the following
    questions with its label.
  • Name and describe one common reward/punishment
    used by project managers on individuals.
  • What project member behavior rewards from having
    that reward/punishment.
  • In your opinion, how successful is the
    reward/punishment at keeping the entire project
    on schedule. In other words, is the project
    schedule really affected by the use of that
    reward/punishment? Why?
  • Ideal length 1.0 page for all 3 answers

Next Session
  • Chapters 4-6 of Leach