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23rd International Conference of the

TOC Practitioners Alliance - TOCPA


www.tocpractice.com

21-22 March, 2016, Tennessee, USA

If CCPM is a solution, then


what is the problem?
Ryoma Shiratsuchi & Keita Asaine, Juntos Consulting,
Japan
March, 2016

Ryoma Shiratsuchi
Ryoma Shiratsuchi is the Co-President of Juntos Consulting Inc.,
and has over 10 years of TOC experience as practitioner, trainer
and consultant.
Since 2007, he has been working with >15 companies for
implementing TOC logistical solutions MTO, MTA and CCPM.
In 2008-2011, he was a faculty member of Goldratt Schools, and
participated in writing Goldratt Schools book TOC for Production
Management (2010)
He taught Operations Management and Project Management as a
lecturer at Education & Research Center of Manufacturing, Kyushu
University.
He is also one of the Founding members of TOCPA TOC
Practitioners Alliance.
ryoma.shiratsuchi@juntos-consulting.com

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Dr. Keita Asaine


Dr. Keita Asaine is the Co-President of Juntos Consulting Inc., and
a CEO of Juntos Co. Ltd. He has over 10 years of TOC experience
as practitioner, trainer and consultant.
Keita started his career at Juntos working in the Bridge Design
Department, and gradually engaged in Sales, too.
His engagement with TOC started in 2004 as an internal
consultant. Since 2007, he has been working with many companies
for implementing TOC logistical solutions MTO, MTA and CCPM.
In 2008-2011, he was a faculty member of Goldratt Schools.
He has a Ph.D. in Engineering from Kyushu Institute of Technology
(KIT) in Japan. He teaches TOC Thinking Processes, Production
management and Project management for Masters program at
KIT.
He is also one of the Founding members of TOCPA TOC
Practitioners Alliance.

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Keita.asaine@juntos-consulting.com

23rd International Conference of the TOC Practitioners Alliance - TOCPA

Agenda

Insights into Multitasking


Case #1 Big Single IT Project
Case #2 Mold Manufacturing

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Background
There are some discussions regarding the boundaries of CCPM.
Some practitioners raised issues about applying CCPM into
Requirement Definition phase in IT projects.
Recently, we can see more studies for integrating CCPM and
other methods such as KANBAN.
What is CCPM?

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Back to the Basics

If Injection is a solution then


what is the problem?
Different types of the problem require
different applications of the solution

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Core Problem in Project Environment

Need to show
progress

Switch to another
task while waiting
input/decision/help

Wait time

Multitasking
Task/project duration
takes longer

High WIP

Fixed schedule

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Demand Variability
High WIP makes people multitasking.
High WIP happens when bigger work load (demand) is imposed
on available capacity.
Load (Demand)
Capacity

Time

Demand has variability. It causes load fluctuation even if the load


was leveled in planning.
It is important to reduce demand variability as much as possible.
However, we can not eliminate but have to absorb and manage it.

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

The Role of Project/Feeding Buffers


Project/Feeding Buffers absorb variability INSIDE the project.

Project Buffer
Feeding
Buffer

However, the reality shows that there are more situations


suffering from variability caused by factors OUTSIDE the project.
Inserting Project/Feeding Buffers is NOT enough to immunize
against such disruptions.
It is important to know the source of variability. For that, we have
to understand how multitasking occurs in the environment.

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Four Types of Multitasking


(1) Conflicting works within same phase

(2) Project work vs. Short works

PROJECT/WORKSTREAM 1

PROJECT
Short
work
1

Short
work
2

PROJECT/WORKSTREAM 2

(3) Conflicting works in different phases

(4) Project work vs. Concept work

PROJECT/WORKSTREAM 1

PROJECT 1
Concept work

PROJECT 2

PROJECT/WORKSTREAM 2

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Managing Variability
We can see multitasking as a resulting compromised action
caused by variability.
Flow is characterized by demand and supply. Both of them have
variability. Managing flow requires managing variability.
Variability can be buffered by:
Time
Stock
Capacity
Capacity Buffer is established by limiting WIP (reduce & control).

Note: Capacity Buffer is a real protective capacity. The term used


here is different from the use of the term in multi-project CCPM.

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Agenda

Insights into Multitasking


Case #1 Big Single IT Project
Case #2 Mold Manufacturing

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Big Single IT Project


Project Overview

Project Scope: Re-building IT project for Production area

Combination with Package and Scratch Development

Development team structure:

External venders for Package Development

Internal resources for Scratch Development

Area of implementing CCPM:

From Detail Design (DD) to Integration Test (IT)

Planned project duration was 6 months

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Original Project Plan


Phase
Feature
Workstream A

Detail Design
(DD)

DD: WS-A

Workstream B

Workstream D
Resource X

Coding: WS-A
DD: WS-B

Workstream C

DD: WS-C
DD: WS-D
Task1

Coding
(Coding)

Task2

Coding: WS-B
Coding: WS-C
Coding: WS-D

Unit Test
(UT)

Integration Test
(IT)

UT: WS-A
UT: WS-B
UT: WS-C

Integration
Test
(IT)

UT: WS-D

Task3

Resource Y
Resource Z

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

How Multitasking Occurs?


Need to show progress
Standing idle is BAD

Delayed issue
resolution

Fixed Schedule

Multitasking of
Task Managers

Tasks started too early


(before issues are resolved)
and progressed with
holding problems

Task Managers have


many issues at the
same time
High WIP on TMs

Specification
adjustment occurs
suddenly

Task Managers
immediately try to
resolve issues when
having problems

Problems/issues occur during


execution of tasks
(Specification adjustment, Supporting resources)

Problems/issues occur more and more


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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Solution for Problem

WIP limits (Workstream level & Task level) based on


capacity of Task Managers
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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Workstream Level WIP Reduction


Planning: Reduce Task Mgrs WIP
Resource Concentration

Original Plan
Feature

Phase
Duration

# People

Duration

# People

DD

Workstream A

Coding
Test
DD

Workstream B

Coding
Test

WIP (Task)
on Task Manager

WIP (Workstream)
on Task Manager

Original
High WIP Plan

10 Tasks / TM

1-2 WS / TM

Low WIP Plan

5 Tasks / TM

1 WS / TM

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Workstream Level WIP Reduction


Planning: Convert to Low WIP Plan
Workstream A

DD: WS-A

Workstream B

DD: WS-B

Workstream C
Workstream D

Coding: WS-A

UT: WS-A

Coding: WS-B

DD: WS-C

UT: WS-B

Coding: WS-C

DD: WS-D

UT: WS-C

Coding: WS-D

UT: WS-D
Time

Workstream A

DD:
WS-A

Workstream B

Workstream C

DD:
WS-C

Workstream D

DD:
WS-B

DD:
WS-D

Coding:
WS-A

Coding:
WS-C

Coding:
WS-B

Coding:
WS-D

UT:
WS-A

UT:
WS-C

UT:
WS-B

UT:
WS-D

Time
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Task Level WIP Control


Execution: Dynamic Assignment
DD: WS-A
Task Manager

Resource X

Task1

Task2

Cording: WS-A Cording: WS-A


Task3

Task4
Task2
Task5
Task3 Task6
Task4

Task5

Task6

Resource Y
Resource Z
Resource XX
Resource YY

DD: WS-A
Task Manager

Resource X
Resource Y

Task1

Cording: WS-A
Task2

Task3

Task4

Task5

Task6

Task6

Resource Z
Resource XX
Resource YY

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Results

Original planned project duration: 6 months

Actual project duration: 5 months


(Project cycle time reduced by 17%)

Comments from PMO:


All Task Managers were able to allocate resources based on priority.
Problems/issues were resolved quickly by the managers.
In consequence, waiting time was reduced.
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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Agenda

Insights into Multitasking


Case #1 Big Single IT Project
Case #2 Mold Manufacturing

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Mold Manufacturing
Closed

Open
Fixed side

Moveable side
Molded
item

Assembly
Parts
Processing

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

How Multitasking Occurs?

1st
TRY

Project A

Parts Processing

Project B

Assembly

2nd
TRY

Short works
Adjust
2

Adjust
1

1st
TRY

Parts Processing

Assembly

Assembly

Modify
C

Adjust
1

Repair
D

Short works

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Solution for Problem

WIP limits (Workstream level & Project level) with


dedicated capacity for short works
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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Reduce and Control WIP


3 mechanisms for maintaining Low WIP to avoid multitasking:
Organization Level Divide resources to Project pipeline and Short work pipeline
Project Pipeline
Short Work Pipeline

Project

Short
Work

Project Level Limit WIP by phase, and release projects by one-out & one-in
Parts Processing
Phase
One-in

Assembly Phase

One-out

Workstream Level Reduce workstream WIP in project planning

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Workstream 1

Fixed side

Workstream 2

Moveable side

Workstream 3

Slide etc.

Fixed side

Moveable
side

Slide etc.

23rd International Conference of the TOC Practitioners Alliance - TOCPA

Workstream Level WIP Reduction

Original schedule
(Date-driven)

Resolved resource
Low WIP & resource
contention
concentrated schedule
(but delayed)

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Project Level WIP Reduction


Phase-based Release Control
Project

Parts Processing
One-in
Phase

Assembly Phase
One-in
One-out

Project completed

One-out

OK
Customer
Assessment

FK
1

FK
2

NG
Adjustment

WIQ1

WIQ2
Value

To Short work team

Short
work

One-in

Short work
One-out

Short work completed

FK

WIQ3
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WIP = 5

WIP Work in Process


WIQ Work in Queue

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Managing Short Works

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Results
Before

Target

After

% Var.

(2015/7-12)

Overall Cycle Time

60d

45d

50d

17%

Production Cycle Time

22d

11d

14d

36%

Throughput

4/month

5.3/month

5.3/month

33%

Overall Cycle Time

17%

Production Cycle Time

36%

reduced

60
d

50
d

Days

Throughput

33%

reduced

22
d

14

Days

increased

5.3

# of projects completed per month

The above was achieved although average project size was 26% bigger than baseline.

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Summary
Solution is for solving the problem. Different types of the problem
require different applications of the solution.
CCPM is the solution that addresses the multitasking problem.
There are four types of multitasking that determine the way of
applying CCPM into the environment.
Demand variability causes High WIP situation and makes people
multitasking.
Project/Feeding Buffers are not for absorbing the variability
outside the project. If the organization suffers from it, another
buffer is required.
Capacity Buffer can be established by limiting WIP. It protects the
project performance from the demand variability.

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23rd International Conference of the TOC Practitioners Alliance - TOCPA