Proactive Management of Project Schedule

Proactive Managementof Project Schedule

Shimon ZeiermanRafael Advanced Systems Ltd.

BackgroundBackground

The Critical Chain Method which is based on the Theory of Constraints (TOC) offers us the Project Buffer – A powerful schedule management tool which is able to help us to complete product design or manufacture while meeting schedule and budget goals, in a risky and uncertain environment.

Implementation of the method in the planning and execution phases faces some difficulties:

•Adding a buffer into the work plan while keeping deadlines intact creates a “non-realistic” schedule which loses team confidence,•Choosing a Buffer smaller than needed as a “compromise” between the need for buffer and the available time nullifies its benefits,•Consuming buffer time in early stages further reduces confidence in the tool,•The Red/Yellow/Green method to manage buffer penetration is hard to implement, it is very difficult to return the buffer to a green state after it has gone red,•There is no general directive on how to change the buffer with time, which is especially crucial towards the end of the project.

Uncertainties and Risks in Development and Uncertainties and Risks in Development and Production Production

• Technical:• Is the design feasible at all?• Will we achieve performance goals promised?

• Programmatic:• Uncertainties in time to be allocated to each task.• Uncertainties in availability of resources on time (workers, labs etc.).

• Budgetary:• Uncertainty in the effort needed to accomplish each task and task.• Uncertainty in the stability of currency exchange rates or market price.

Main issue: The information related to uncertainties, risks Main issue: The information related to uncertainties, risks and their consequences is of a probabilistic natureand their consequences is of a probabilistic nature

• It may happen that part of the risks will materialize while others will not.• Risks will materialize in various and unplanned instances during project life span.

Principles suggested:

• Incorporating a single project buffer into project schedule.

• The buffer represents an allocation of time to cope with the effect of all uncertainties and risks in the project.

• Incorporating a single buffer compensates for the lack of reliable and detailed information about the variance of each task of the project plan.

• The use of a single buffer enables the project planner to draw a border line between the basic logical plan of the project and the possible impact of risks and uncertainties materialization.

Method suggested: Use a single bufferMethod suggested: Use a single buffer

Activity DescriptionWhoJanuaryFebruaryMarch

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Tasks

Goal: Finish on Mar-15

-Prepare Test Specimen

--Purchase material--Prepare specimen

--Prepare Test Plan

--Test in Field-- Analyze and Summarize

- Project Buffer

- Plan and Perform Tests

30% ProjectBuffer

30% Project Buffer

Team A

Team B

Team B

Team BBoth

Logical PlanLogical Plan RiskBufferRisk

Buffer

• Allocate time for the whole project, from start (ARO) to finish.• Allocate time buffer in proportion to the level of all risks and uncertainties,

technical, programmatic and budgetary.• Recommended value, in case of lack of further information: 20% of project

time frame.• But not less than 10% (in order to be able to utilize the benefits of the buffer)• When risk and uncertainty level is high, consider a buffer of up to 40%-50%.

• Allocate time for each of the project’s tasks. Expect objections from staff!• Discuss reservations made by those who carry out the task due to the short time

allocated to their task.• Look for resolution, new and creative solutions which enable shortening execution

time (with no penalty to project quality or cost).• Solutions will be mainly found by separation of variables, parallelizing activities and

methodological risk analysis.

The schedule should conform to project goal, even in those cases where The schedule should conform to project goal, even in those cases where there was no resolution to reservations – While working on the project, there was no resolution to reservations – While working on the project,

more opportunities and new ideas will be available to the planner.more opportunities and new ideas will be available to the planner.

Schedule planning – The proactive waySchedule planning – The proactive way

Reaction to slip in schedule:Reaction to slip in schedule:•Ineffective reactions:Ineffective reactions:

• Delay schedule• “Linearly” penetrate into time buffer• Shorten buffer time

Proactive management of scheduleProactive management of schedule


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Tasks




--Prepare Test Plan


- Project Buffer


Team A

Team B

Team B

Team BBoth

30% ProjectBuffer

30% Project Buffer

30% ProjectBuffer

30% Project Buffer

Delay Schedule

30% ProjectBuffer

30% Project Buffer

Penetrate buffer

15% PB

15% PB

Shorten Buffer

Reaction to slip in schedule:Reaction to slip in schedule:•Ineffective reactions:Ineffective reactions:

• Delay schedule• “Linearly” penetrate into time buffer• Shorten buffer time

•Effective reactions: Proactive management of schedule and bufferEffective reactions: Proactive management of schedule and buffer• Reschedule project Reschedule project keeping planned finish date intactkeeping planned finish date intact• KeepKeep buffer size constant in terms of buffer size constant in terms of percentagepercentage out of time out of time

remaining from time-now till project finishremaining from time-now till project finish• Shorten Shorten time allocated for activities left and time allocated for activities left and resolve resolve

rreservations made by those who carry our the taskeservations made by those who carry our the task• Shortening buffer time is permitted only if risks are lowered Shortening buffer time is permitted only if risks are lowered

and uncertainty level is reduced.and uncertainty level is reduced.

Proactive management of scheduleProactive management of schedule


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Tasks




--Prepare Test Plan


- Project Buffer


Team A

Team B

Team B

Team BBoth

30% ProjectBuffer

30% Project Buffer

30% ProjBuffer

30% Proj Buffer

No change

in %Buffer

No change

in %Buffer

No change in logic.

Task shorten

No change in logic.

Task shorten

Project replanned from time-

now till finish

Project replanned from time-

now till finish

Resolve reservations

Resolve reservations

Case StudyCase Study


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MeetingsTasks

Kick Off


-Samples Preparation

--Supply Material to Site B--Make Samples

--Preliminary Test Plan

--Final Test Plan --Cycle I (Lab Test)

--Test Results Evaluation--Cycle II (Lab & Field Test)

-Testing

Team A

Team B

Team B

Team B

Team B

Both

Team B


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MeetingsTasks

Kick Off







--Project Buffer

-Testing

Status FPRStatus

40% Project Buffer 40% Project Buffer

Team A

Team B

Team B

Team B

Team B

Both

Team B


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MeetingsTasks

Kick Off







--Project Buffer

-Testing

Status FPRStatus

Jan14 Jan27

40% Project Buffer 40% Project Buffer40%

ProjectBuffer

40% Project Buffer

Team A

Team B

Team B

Team B

Team B

Both

Team B


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MeetingsTasks

Kick Off







--Project Buffer

-Testing

Status FPRStatus

Jan27

Team A

Team B

Team B

Team B

Team B

Both

Team B

40% ProjectBuffer

40% Project Buffer

Buffer size kept 40% of time remained to project finish

Time allocated for Team B was reduced by half

Finish date doesn’t change In spite of delay in raw material supply


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MeetingsTasks

Kick Off







--Project Buffer

-Testing

Team A

Team B

Team B

Team B

Team B

Both

Team B

Status FPRStatus

Jan27

40% ProjectBuffer

40% Project Buffer

Ideas raised:•Adding a second lab (contact with an external lab has been initiated)•Re-check and shorten test plan (third of test found not necessary)


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MeetingsTasks

Kick Off







--Project Buffer

-Testing

Team A

Team B

Team B

Team B

Team B

Both

Team B

Status FPRStatus

Jan27

40% ProjectBuffer

40% Project Buffer

Feb 8

Unexpected delay while clearing from customs. Shipment arrive Feb 14

Uncertainties have their own life…


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MeetingsTasks

Kick Off







--Project Buffer

-Testing

Team A

Team B

Team B

Team B

Team B

Both

Team B

Status FPRStatus

40% ProjectBuffer

40% Project Buffer

Feb 8

150Kg

25% PB

25% PB

Feb 14


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MeetingsTasks

Kick Off







--Project Buffer

-Testing

Team A

Team B

Team B

Team B

Team B

Both

Team B

Status FPRStatus

150Kg

25% PB

25% PB

Feb 14

Finish date doesn’t change In spite of delays accumulated till now

Risk level dropped, buffer size reduced to 25% of time to project finish

• Further risks and uncertainties were not materialized, test Further risks and uncertainties were not materialized, test results were obtained a few days before required date.results were obtained a few days before required date.

• Managing task by Team A was done using classical methods and Managing task by Team A was done using classical methods and did not meet required schedule.did not meet required schedule.

• Proactive management by Team B created the atmosphere Proactive management by Team B created the atmosphere suitable for a teamwork aimed at getting solutions to the suitable for a teamwork aimed at getting solutions to the various problems as well as the delays created by the task taken various problems as well as the delays created by the task taken care of by Team A.care of by Team A.

EpilogueEpilogue

• A proactive approach to the planning and controlling of projects A proactive approach to the planning and controlling of projects using a single project buffer was presented.using a single project buffer was presented.

• AA key to this approach is keeping the buffer at the same level in key to this approach is keeping the buffer at the same level in terms of percentage of time that remains until project finishes, terms of percentage of time that remains until project finishes, and in accordance to the remaining risk and uncertainty level.and in accordance to the remaining risk and uncertainty level.

• The approach relies on further important keys for success:The approach relies on further important keys for success:

• Building a simple and stable logic plan for the projectBuilding a simple and stable logic plan for the project

• Constant search for solutions for the time constraint and Constant search for solutions for the time constraint and lack of resources.lack of resources.

• Team work and cooperationTeam work and cooperation

SummarySummary

Thank YouThank You

Proactive Management of Project Schedule

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