Putting the Pipelining Rule into Practice

In this minute we outline how to apply the Pipelining Rule to multi-project environments. The Pipelining Rule is to concentrate resources on a few projects (or work streams). Its benefits are fewer shortages of resources, more attention from experts and managers to resolve problems and faster completion. It also allows you to do more projects with the same resources as work flows faster with fewer interruptions. This rule is typically put into practice in two steps:

STEP 1: Transition to Low WIP

• Temporarily freeze 25% of the projects (by workload), both in the overall pipeline and in “system integration and testing” (SI&T) phase.
• Accelerate remaining projects using a simple priority process, e.g. project due-dates.
• Deploy any remaining resources on “Full Kitting” (preparing for execution) the frozen projects.
• As in-process projects are completed, unfreeze the frozen projects one by one.
• Avoid paralysis by analysis. The goal is to start getting results within 3 weeks.

STEP 2: Establish a Pipelining Process

• Set targets for cycle time by project type, this ensures that projects are planned with concentrated resources.
• Decide on the pacing resource. The pacing resource determines the rate at which projects can be completed (and started) in execution. Typically the overall throughput is determined by the rate of project completion in the SI&T phase, because of the considerable effort spent in synchronizing resources and resolving problems as they are found. It is possible, in very few cases, that an upstream resource or phase is a constraint and should be the pacing resource rather than SI&T.
• Establish a management meeting for setting project priorities and committing due-dates. Typically a dedicated “Master Scheduler” or “Pipeline Analyst” is required for providing analytical support.
• Close the loop with a resource planning process that ensures that enough of all the other resources are available. This may require creating additional resource flexibility in the organization to support the execution of the pipeline plan.

An excellent resource for understanding the details of pipelining is Session 1 of the Goldratt Webcast on Project Management. Please visit www.toc-goldratt.com.
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Implementing the Buffering Rule (Project Planning)

While it is obvious that project plans are needed to provide execution priorities and early warning signals, many organizations struggle with creating useful and manageable project plans. This minute answers the frequently asked questions about project planning under the new rules.

What comprises an execution ready-project plan?

A complete project plan contains the following data:

• Tasks, Task Duration and Resource Type/ Resource Units needed for the task.
• Checklist below the tasks (optional)
• Dependencies between tasks
• Task Managers
• Buffers (feeding buffers; contractual milestone buffers and project buffers)
• Resource Types and the Maximum Units of a Resource Type available to the project
• Project-end and Contractual Milestone Dates

How much detail is required in the plans?

Too many tasks in a project plan induce multitasking, make analysis of plans and buffer consumption difficult and generally lead to loss of control. Not enough detail on the other hand encourages unnecessary safeties and Parkinson’s Law and also leads to loss of control.

Based on our experience in a wide range of projects, more than 300 tasks in a complex project (a task that takes less than 2% of the project’s lead-time would have a very good reason to be in the plan) and less than 10 tasks for a simple project (a task that takes more than 5% of a project’s lead time must also have a very good reason) are not recommended. If this thumb rule yields tasks that are too long (and thus not useful for Task Managers), then you can use subprojects to zoom into detailed tasks rather than adding tasks to the main project.

What is process of creating good plans?

1. (In multi project situation) derive cycle time targets based on throughput goals.
2. Communicate to all the managers that people will not be measured in execution against the task estimates used in planning.
3. Assemble a team of project manager and (representative) task managers and conduct a workshop to get their buy-in into the three rules.
4. Create basic project plans (without buffers)*.
5. Convert basic project plans into buffered project plans (stagger tasks based on resource availability and insert buffers in the required places).
6. Challenge and refine assumptions (data) whenever the calculated project cycle time does not match the expected/ desired result.
7. Share the final project plan with all the task managers so that they understand their tasks as well as the overall plan.

*In repetitive environments, the basic project plans can be stored as templates for future reference.

Points to Remember

• A project plan is not a time reporting or effort tracking mechanism. The purpose of a project plan is to provide execution priorities and early warning signals.
• A project plan is not a technical manual or a reminder list. A task represents a chunk of work. It should not be broken down to several tasks just because it requires different resources for different durations of time. However it should be broken down for chosen key resource-types; tasks should be defined so that these key resource types are required for most of the task time.
• Don’t model noise like “lead and lag” relationships between tasks for fractional resources. In the uncertain world of projects, reality will often override such sophistication.
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Implementing Buffer Management (Prioritizing and Managing Tasks)

As we discussed before, absence of task level priorities is a major shortcoming in traditional project management. Now that we can issue clear, uniform and stable task priorities using Rule 3 (tasks consuming the most buffer get the highest priority), what is the management process around them? This is the subject of this minute.

1. Remaining Duration Report

During execution, Task Managers provide daily estimates of how much longer it will take to finish their tasks-in-progress. With this simple information, we can calculate the ratio of buffer consumed for a chain of tasks compared to the work completed in that chain. This ratio is then used to calculate task priorities and provide Task Managers a report of all current and upcoming tasks in order of priority.

(Tendencies to procrastinate and not report early finishes are also curbed. When the buffer consumption ratio is high and visible to everyone, it reminds Task Managers to make and report progress.)

2. Resource Assignment

Task Managers assign resources to current tasks in order of priority. If resources are not enough to handle even the red tasks (tasks that have crossed the threshold of acceptable buffer consumption), overtime and other such decisions are implemented.

3. Task Preparation

After taking care of current tasks on their plate, Task Managers turn their attention to upcoming tasks. They make sure that all necessary preparations like getting approvals, drawings, materials etc. are made so that tasks can be executed without interruption when they arrive.

4. Quick Issue Resolution

By interacting with resources for Remaining Duration updates, Task Managers discover unexpected problems quickly. They now have a chance to resolve them in a timely manner on an ongoing basis instead of fighting fires towards the end.

5. Reminder: Don’t Pressurize Resources to Meet Planning Estimates

Otherwise you will soon be back to square one.

Implementing and reinforcing good Task Management is the key to sustained improvements in project performance!
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