Theory of Constraints Handbook - James Cox Iii [369]
Three strategic execution processes drive down task times during execution. Without execution processes, even with full top management support, it’s likely that a critical chain strategy will produce disappointing results. All of these processes are highlighted in the project S&T. The processes that are essential to achieve the strategy are as follows:
1. Full Kit—A great deal of project rework occurs because detailed work is started too early—before overall design/definition is complete. Generic full kit points and templates are defined for project types, which are then custom defined for each project. Combine this with the appointment of one of the top executives as a “Full Kit Manager,” and no follow-on work will be allowed to start until the full kit is reached. Unnecessary rework is driven down significantly. In a matter of a few weeks, resource time is freed up and costs (overtime, subcontracting, errors, etc.) are reduced.
2. Daily Task Management—The common practice in project management today is infrequent (weekly or longer interval) reviews of task progress. That is a long time to wait to find out that a task execution has a problem or is waiting for something to progress. Task managers, usually from within a skill set discipline, are given the full-time role of monitoring active project tasks daily. They prepare tasks in advance, ensure issues are resolved, and lend expert assistance to those executing the tasks. Their intuition and experience prevents over-engineering. Their practice of not assigning new work to a resource until a task is completely finished prevents multitasking—one of the biggest wastes of resources.
3. Fast Track Issue Resolution—A top manager is given responsibility to get all project issues resolved within 24 hours that could not be resolved below their level, either by project or task managers. This involvement of top management speeds up projects and brings the right level of executive attention to critical issues delaying projects.
Similar to the manufacturing rapid response S&T, the project S&T includes sales and marketing components to take advantage of the company’s ability to execute projects more quickly and more reliably. A project company that can execute projects 25 percent faster than a few months ago must have a corresponding marketing and sales effort, in order to capitalize on this increased capacity.
The S&T also suggests that some clients are willing to pay premiums for faster project execution, even though the project company may not be willing to guarantee faster delivery. For example, if the project involves maintenance and repair of a very expensive asset (an aircraft or ship), the faster it’s turned around, the less the revenue loss and the fewer the number of aircraft required in a fleet. Once the company has fully implemented CCPM, including its embedded POOGI, it becomes easier to beat the competition consistently on aggressive promise dates without taking risks.
In summary, CCPM processes in executing projects bring a level of cross-functional alignment, speed, and predictability that is very difficult for competitors to copy. Extensive top management support and discipline is essential to make this work. Once implemented, an organization capitalizes on the improved project execution capacity by value-oriented marketing and sales efforts. The impact on the bottom line becomes more and more significant, since some of the same project work can be done at a premium when it’s executed much more quickly. Reading through the entire set of slides in the S&T several times will bring the full picture to light.
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