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Five tools for managing projects

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A short course about five tools for managing projects
Kanban, WIP, Theory of Constraints, milestones, and remaining cost

Veröffentlicht in: Business
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Five tools for managing projects

  1. 1. 1 Copyright 2017 John Goodpasture All Rights Reserved Essentials of Project Management Five tools for Managing Produced by Square Peg Consulting, LLC www.sqpegconsulting.com
  2. 2. Five Tools for managing 2 Copyright 2017 John Goodpasture All Rights Reserved WIP Kanban Milestones Theory of constraints Remaining cost
  3. 3. Backlog-to-WIP and DONE 3 Copyright 2017 John Goodpasture All Rights Reserved Backlog • Master TO DO list: All stuff you need to do for business and client, by affinity Increment • A subset of Master “TO DO” WIP • Stuff you are working on (doing), typically less than the whole increment DONECompleted stuff
  4. 4. An example 4 Copyright 2017 John Goodpasture All Rights Reserved Backlog Increment WIP • Some database tasks DONECompleted database tasks 1. Business databases 2. Client deliverables 3. Project closeout Database increment Related database debris
  5. 5. Simplest WIP model 5 Copyright 2017 John Goodpasture All Rights Reserved To Do Doing Done Three STAGES
  6. 6. My favorite 6 Copyright 2017 John Goodpasture All Rights Reserved Backlog (increment) Narrative, outline, design Construction Validation, verification Done
  7. 7. It’s a Kanban Kanban: • Successor stage pulls from predecessor stage • Capacity limited at each stage • As stage capacity becomes free (by doing), capacity is filled from predecessor stage 7 Copyright 2017 John Goodpasture All Rights Reserved Stage 1 Stage 2 Stage 3 …
  8. 8. Kanban board 8 Copyright 2017 John Goodpasture All Rights Reserved • Each card color is represents a common affinity grouping of stories • Each card with the same color is an individual story (requirement, to-do, or task) within that affinity group • Note: Cards may not progress in “number” order; progress and promotion between stages is governed by project demands
  9. 9. Stages operate on stories For example • Narrative: Design, develop an outline • Construction: Gather data • Construction: Apply data to a narrative or to the outline • …. 9 Copyright 2017 John Goodpasture All Rights Reserved Narrative Construction Validation …
  10. 10. Debt in the backlog 10 Copyright 2017 John Goodpasture All Rights Reserved Debt: unfinished WIP Incomplete reports; drafts or appendices not finalized Tests not complete Incomplete validations or verifications Left over when the increment is DONE Punch list for later Adds to the Backlog
  11. 11. Theory of constraints* What is a constraint? • Limitation on throughput What’s throughput? • Stuff, outcomes, that are valuable to business or client • That which is value-add to the business value proposition • Debris is not throughput; it’s overhead 11 Copyright 2017 John Goodpasture All Rights Reserved * “The Goal” Dr. Eliyahu M. Goldratt
  12. 12. Subordinate to the constraint • Once a stage is full, there’s no advantage to keep piling up WIP inventory at earlier stages – “Efficiency” of widgets/hour at earlier stages is meaningless • To clear the constraint, subordinate all resource allocations to the priority of working on the constraint – All hands on deck rule 12 Copyright 2017 John Goodpasture All Rights Reserved
  13. 13. More capable constraints • Add similar resources (parallelism)* • Re-organize methodology at the constraint • Re-tool or re-train • Avoid constraint by going a different direction 13 Copyright 2017 John Goodpasture All Rights Reserved *Brooks Law: “Adding resources to a late task will make it later” Dr. Fred Brooks Author: Mythical Manmonth
  14. 14. Managing with milestones Milestone: • Measurable, discernible event • Evident to business and client • Usually zero-duration point-in-time, but not always • Valuable to business and client 14 Copyright 2017 John Goodpasture All Rights Reserved
  15. 15. Backward planning • Establish the client’s most valuable milestone – May not be the project ending • Buffer the client’s most valuable milestone (to protect it’s integrity) • Set the earliest start milestone • Narrative reduction in between 15 Copyright 2017 John Goodpasture All Rights Reserved
  16. 16. Backward planning sequence • Establish the client’s most valuable milestone – May not be the project ending • Buffer the client’s most valuable milestone (to protect it’s integrity) • Set the earliest start milestone • Narrative reduction in between 16 Copyright 2017 John Goodpasture All Rights Reserved Backlog Buffer Backlog Most valuable End Start “White space”
  17. 17. No-o-o! • Latest start is procrastination • Uses buffer without value-add 17 Copyright 2017 John Goodpasture All Rights Reserved BacklogBuffer Backlog Most valuable End Latest Start “White space” Start
  18. 18. Milestone merge • Independent streams of stuff comes together for integration • A&B depends on the success of A and the success of B 18 Copyright 2017 John Goodpasture All Rights Reserved “DONE” A “DONE” B Merge of results, A & B
  19. 19. Merge confidence Do the math • IF: confidence* in A is 70%, and B 90% • THEN: merged confidence in A&B is 63% – 70% of 90% – It’s a lot worse if there are three or more merges 19 Copyright 2017 John Goodpasture All Rights Reserved *Confidence: An event will happen at a predicted time, or sooner, with a % confidence. The event could be later by 100 - % confidence. How much later? Unpredictable, as a practical matter
  20. 20. Merge bias • A&B depends on the success of A and the success of B • IF: confidence* in A is 80%, and B 90% • THEN: merged confidence in A&B is 72% • THUS: to restore confidence to 70%, or 90%, SHIFT RIGHT 20 Copyright 2017 John Goodpasture All Rights Reserved “DONE” A “DONE” B Bias of A & B at the merge point to shift right Higher confidence with more time provided by shift right
  21. 21. Merge bias fix • IF: confidence* in A is 100% due to buffer, and B 90% • THEN: merged confidence in A&B is 90% – 100% of 90% 21 Copyright 2017 John Goodpasture All Rights Reserved “DONE” A “DONE” B 100% confidence Buffer THUS: to maintain confidence, buffer at least one milestone Confidence at merge is confidence of B
  22. 22. Cost Management Cost Management Concepts Commentary Earned Value: How much does it cost to earn* $1 of value? Remaining Cost How much to finish? Throughput value Only the value-add 22 Copyright 2017 John Goodpasture All Rights Reserved * aka: deliver
  23. 23. Cost Management Cost Management Concepts Commentary Earned Value: How much does it cost to earn $1 of value? • The objective Value of an object, in $, is established as a budget • When that object is DONE, it’s value has been “Earned” • Actual cost may be different • “Efficiency” of cost management: • $Value Earned per $Actual Cost Remaining Cost How much to finish? Throughput value Only the value-add 23 Copyright 2017 John Goodpasture All Rights Reserved
  24. 24. Cost Management Cost Management Concepts Commentary Earned Value: How much does it cost to earn $1 of value? Remaining Cost How much to finish? • Forecast cost of what’s left to be done • Budgeted value of stuff not done, adjusted for cost efficiency (to date) Throughput value Only the value-add 24 Copyright 2017 John Goodpasture All Rights Reserved
  25. 25. Cost Management Cost Management Concepts Commentary Earned Value: How much does it cost to earn $1 of value? Remaining Cost How much to finish? Throughput value Only the value-add • Value of the client’s deliverables less value of project inputs (parts, data, etc), ignoring in-direct or overhead costs • Essentially: cost efficiency of “cost of goods sold” • Value-add of the project “transformation” 25 Copyright 2017 John Goodpasture All Rights Reserved
  26. 26. Five Tools Learning points Learning Point take away Commentary All projects have WIP Stuff you’re going to do; are doing; and have done Kanban pulls stuff in A capacity management tool so that WIP does not overwhelm Theory of Constraints Keep the constraint “full”; but not “fuller” than its capacity Milestones Aim for the most valuable milestone; beware merging milestones—shift right! Cost management Did you deliver a dollar of value for a dollar of cost? 26 Copyright 2017 John Goodpasture All Rights Reserved
  27. 27. Five Tools: For discussion In this presentation, “quality” has been the silent partner. It’s presumed that quality is a constant, no matter the WIP, constraints, milestones, and value to be earned. For discussion: Is this presumption true, or practical? Can quality be constant, regardless of the other variables? Are there no compromises? Is it zero-defects everywhere? 27 Copyright 2017 John Goodpasture All Rights Reserved

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