My takeaways from Breakthrough Project Management conference

Paris, October 17th, 2016. Ian Heptinstall, co-author of “The Executive Guide to Breakthrough Project Management, Capital & Construction Projects on-time in less time, on budget at lower cost without compromise” (full title), was there to deliver his conference on the subject.

Before you turn away thinking this has nothing to do with my industry, you should ask yourself if yours too struggles to deliver on time, in full, on budget. If yes, the ideas shared in this conference should be of interest, whatever your trade is.

Ian’s claim is to introduce a way to deliver in less time and less budget, without compromising on scope, quality and risks, no longer trading off.

The conference

The time indications are related to the video

Many project managers do not realize their projects go wrong, but several studies show that most (capex) projects do not fulfil their requirements (2:26). Ian goes through the major reasons at macro and micro level for projects to miss all their targets. Three issues are found at the heart of the problem (8:10); the way to contract, the way to plan and the way to execute.

Ian, together with co-author Robert Bolton, believe they’ve found an easy, repeatable and sustainable way to overcome these issues. The shift from traditional project management to Breakthrough Project Management is presented from 10:00.

Among the things to change is the methodology shift to Critical Chain Project Management (CCPM) briefly introduced at 14:32. The project’s monitoring Fever Chart is explained at 22:20. The proven CCPM methodology will face a major obstacle: the way of contracting and purchase (26:06).

The new way to consider contracting is introduced at 29:16 and starts with the issues related to fixed pricing. For instance, complex problems involving high-tech or some new technology are tricky to estimate in terms of costs. Second, buyers want to have fixed prices. Contractors subcontract and ask for fixed prices as well. The buyer is usually the winner on the expenses of the contractor.

Instead of a hierarchy of contractors, the new approach promotes alliancing, i.e. putting stakeholders in a single team aligned onto a common goal and paid in the same way: “cost-fixed-variable” (34:17). Cost are expenses to be covered, without markup. The fees are fixed and variable and not related to costs. The only way for the partners to make more money once the project is started is to get the variable fees, thus have a successful project. What the success is made of is left to the client to decide: time, quality, safety.. This changes the team members behaviors.

The characteristics of project alliances are summarized at 37:45. Project alliancing does not mean the bidding is not competitively sourced (39:10).

The conference summary is presented at 39:50.

My takeaways

The whole conference is presented in a lively way, with some funny and true everyday’s examples of the ridiculous requirements or expectations in traditional project management. It makes the conference anything but boring!

Being knowledgeable about Critical Chain Project Management (CCPM), it is not the CCPM discovery that raised my interest, but the simple way Ian presented it. It is consistent with the book’s aim: being an executive guide, thus give concise necessary insight and explanation, without boring the audience.

Alliancing was new to me and raised my interest, reminding the issues I’ve seen with the usual hierarchical buyer-supplier relationship.

Finally, I’ve found the whole conference (content and presentation) worth a post to promote it. I hope it will do.

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The Executive Guide to Breakthrough Project Management – Book Review

The Executive Guide to Breakthrough Project Management is about combining Critical Chain Project Management and “alliancing” or collaborative contracting for a win-win efficient way to manage huge (or small) construction projects.

Soon when reading the guide, it becomes obvious that what the authors describe as efficient in construction and capex projects can be used in many other trades.

Watch the author’s conference

TOC, Lean and aviation MRO

In a previous post, “CCPM helps shorten aircrafts MRO”, I explained the benefits of Critical Chain Project Management (CCPM) for reducing the aircraft downtime during their mandatory and scheduled MRO.

If CCPM is great and helps a lot meeting the challenge, it will not squeeze out every potential improvement, thus time reduction, on its own.

As I explained in my post Critical Chain and Lean Engineering, a promising pair, “What CCPM per se does not is discriminate added-value tasks and non added value, the wasteful tasks listed in a project in a Lean thinking way.

Conversely, if wasteful tasks remain in the project network, chance are they will be scheduled and add their load (and duration) to the project.

That’s why in aviation MRO (as well as in other businesses), Critical Chain Project Management will not be used as a stand alone but in conjunction with other approaches, like Lean and Six Sigma.

Lean mainly will help to discriminate value-added from non value-added tasks, especially those on the Critical Chain, making them high priorities to optimize, reduce or eliminate.

We did not differently when we started with our client Embraer and while in their service center, I placed Philip Marris in front of the camcorders to present, in situ, two books related to TOC, Critical Chain and Lean in aviation MRO (aircraft Maintenance, Repair and Overhaul).


Note: Critical Chain Project Management is part of the Theory of Constraints Body of Knowledge, hence the title of this post where “TOC” is referring to CCPM.


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CCPM helps shorten aircraft MRO

Facts

Aircrafts have to undergo periodic Maintenance, Repair and Overhaul (MRO). This is mandatory in order to insure the aircraft’s airworthiness and overall safety. During these inspections and repairs, the aircrafts are grounded.

For the owners and operators, the shorter the turnaround time*, the better. An aircraft is a huge investment and the ROI is only when it can be used in service.

*the time the aircraft is grounded, usually counted in weeks for longer in-depth inspections.

Yet aircraft operational availability is not only a question of Return On Investment, think about relief and the lives saved by medivacs or military forces brought closer to their spot during a crisis.

When an aircraft comes in for its scheduled maintenance, according to the type of inspection (ranging from Check A to Check D, according the depth and importance of inspection, the amount of time or usage…  (see Wikipedia)

The process is scheduled like a project as many tasks can’t be done prior to some others, e.g. access some hydraulic pipes before stripping the surrounding frame.

It is therefore common to use Project Management tools and techniques to organize, carry-out and monitor the whole process.

The challenge

Shortening the turnaround time is therefore a challenge for the service centers, not only to please and retain their customers, but also to attract new ones in order to grow their business and improve their profitability.

Of course the challenge is to be met while remaining compliant to the severe regulations and specific constraints, taking no chances with quality nor safety.

Furthermore, “findings” – unexpected defects of potential issues found once the aircraft is under inspection – or sudden customers requirements may add unscheduled workload.

In the traditional project management way, each task is estimated for its duration and a cautious (and generous) margin of time added. The service centers want to keep their committed due date, even if findings or any other random events (parts shortages, supplies problems…) arise.

It is therefore no surprise that major Checks ground an aircraft for weeks.

The new approach

It wasn’t long before some service centers spotted the improvement potential (turnaround time reduction) with Critical Chain Project Management (CCPM). Delta TechOps, Lufthansa Technik, US Navy and Air Force, French SiAé are cases I’m aware of.

Compared to traditional Critical Path Method (CPM), Critical Chain Project Management takes the resources’ limited capacities into account at once and has a completely different approach regarding margin of time. In short, all margins are shortened based on a statistical rationale and a share of it put into a global protective time buffer.

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CCPM provides also a simple but very effective visual indicator to monitor both project’s achievement and protective buffer consumption, thus indicating instantly when the project may be late. This robust and early warning allows project managers to focus on a very limited number of issues instead of trying to control every single task.

This allows also the mechanics to work in a quieter atmosphere, an important additional benefit in a trade that considers human stress as a major risk for quality.

CCPM has proven great for consistently meeting due dates and often shortening a whole project duration compared to its original estimations.

Our client testimony

I was fortunate to be involved in Embraer’s Business Jets Service Center’s project to reduce turnaround time in Paris (Le-Bourget) and pleased to produce a series of videos of their testimonies about their achievement.

In this video, Sébastien Albouy, Director of Embraer Executive Jets Services center in Paris Le Bourget executive airport, explains how Critical Chain Project Management helped to drastically shorten the aircraft turnaround time, thus increasing aircraft availability and the center’s capacity.


>Related: TOC, Lean and aviation MRO


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Critical Chain and Lean Engineering, a promising pair

Critical Chain Project Management (CCPM) has proven its effectiveness to terminate projects on time and even quite often before estimated finish date.

In development, engineering or Maintenance Repair & Overhaul (MRO), using CCPM can give a significant competitive advantage.

It can outperform slower competitors, earn premium for faster achievement and/or allow multiplying projects within similar timeframe and often with same resources.

CCPM is the perfect companion for Lean Engineering, giving the means to win the race-to-market and multiplying new product launches.

True Lean Engineering is something long to develop and “install”, it’s about learning and developing a reusable knowledge base as well as turning engineers into Lean thinkers.

Terminating projects earlier and multiplying them offers the learning opportunities to test and gather knowledge.

CCPM is therefore a good Lean Engineering “forerunner” giving a competitive advantage faster than the sole Lean Engineering initiative.

What CCPM per se does not is discriminate added-value tasks and non added value, the wasteful tasks listed in a project in a Lean thinking way.

Of course, when CCPM takes care about the capacity constrained resources, it invites to check the content of the tasks and scrutinize the proper use of those precious resources, thus calling for Lean-minded scrutiny.

CCPM acts then as a focusing tool for Lean-minded analysis and improvement.

These two, Critical Chain Project Management and Lean Engineering, seem to make a fine, promising pair.
Something to consider.


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Introduction to Critical Chain Project Management

Welcome to my introduction to Critical Chain Project Management (CCPM)!

Critical Chain Project Management is a “new” approach to Project Management, with connections to the Theory of Constraints.

While in the 1980s the production management changed from mainly local unit cost control to a holistic approach that encourages flow (Lean), the project management has not significantly changed* since the introduction of the Critical Path Method  in the 1950s (PERT: USA 1954 Polaris program) and despite its recognized weaknesses regarding reliability and meeting deadlines.

*Agile, Lean IT have brought improvements but the Critical Path Method is still the main model.

In the 1990s, Eli Goldratt, author of the famous business novel the Goal, revisited project management with a Theory of Constraints point of view.

In short, he proposed to shift from a task-focused management to a resources-focused management, taking into account their availability and capacity conflicts. To distinguish the new Critical Path from the previous one, he called it the Critical Chain.

The Critical Chain is the longest path taking into account the resources load levelling.

Critical Chain Project Management (CCPM) reviews also how tasks durations are estimated and proposes to set up a global buffer to protect the project achievement on due date instead of protecting every single task.

Here is a brief overview introducing CCPM


another one:

Here is a second video that gets you a bit deeper into CCPM concept

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