IN THIS ISSUE


Case Study - ABB Power Technologies

Resource Management in Multi Project Organizations, Part 1

New Customers

CASE STUDY

ABB Power Technologies

Submitted by John Tripp, Goldratt-TOC Ltd

ABB Power Technologies have been using TOC as a driver in their improvement processes in three business units with an annual turnover of around 18 billion US dollars. A number of areas that run projects have been using Critical Chain to improve the performance. These applications have been in: individual major improvement projects, major infrastructure equipment make-to-order businesses, in product development and R&D.

John Tripp of Goldratt-TOC Ltd has been directing this process and recommended that the critical chain implementation be supported by Realization's Concerto multi-project critical chain software, because it is the best available software system for a multi-site, multi-project environment.

So far, Critical Chain and Concerto have been a great success. Senior ABB managers are seeing significant improvements in productivity, in project management, in predictability and visibility. Customer and sales people are impressed by the clarity that Concerto brings to complex and high variability environments. In one of the applications, productivity has increased by more than 25%, orders have grown significantly and with virtually no increase in resources, and all customers have been supplied on time. In fact, it was due to this implementation and the improvement project that the 2004 Olympic Games were able to replace urgently needed equipment that would have stopped the games in record time. The process has led to commensurate bottom line results.

The success in the three early and very diverse applications has lead the Power Technology business area to conclude that Concerto should be considered as a main support system in a number of key make-to-order businesses. There are now a number of key business units in Europe, Asia and the US investigating this approach.

back to top

 
FEATURE ARTICLE

Resource Management in Multi Project Organizations
Part 1: Tactics for Increasing Resource Effectiveness

by Dr. Ajai Kapoor

Resource Managers (or functional managers) in multi project organizations are primarily responsible for:

  • Resource Effectiveness: doing work in a timely and effective manner, to maximize project speed and throughput
  • Professional Development and Satisfaction: Provide ample opportunities and options to technical resources for professional development
  • Capacity Management: Maintain the right levels of capacity, which in a growth environment requires minimizing the time between hiring resources and making them productive

 

The above picture classifies the time spent while working on projects. There is time spent doing the work. There is time spent on INTERRUPTIONS (waiting for issues to be resolved, decisions to be made, priorities to be clarified; multi-tasking on other higher priority work...). Finally, there is time consumed by PARKNSON’S LAW (work expands to fill the time available).

In this article we discuss the tactics that Resource Managers can use to contain Interruptions and Parkinson’s Law, thus increasing resource effectiveness. Some of these may also help with professional development and capacity management, items that we will discuss in detail in a follow-on article.

  1. Task management
  2. Issue resolution
    • Cross-functional coordination
    • Dedicated resources for troubleshooting
    • Dedicated resources for coordination
  3. Resource pooling

Task Management

In order to have the high throughput, the following mode of execution is ideal:

  • High focus on one task at a time in execution
  • Pro-active and early identification of issues
  • High quality work with scope that is subordinated to project needs

The people who can ensure that the organization displays this behavior are frontline managers, or Task Managers. It is up to Resource Managers to establish a good task management process. The process needs to protect people from micro-management while allowing the work to proceed at a fast pace. Using the task management process as a way to transfer experience and mentor new employees also minimizes the time between a resource being hired and being productive.

Issue Resolution

In most organizations, issue resolution – especially when it involves many people or senior managers – can become a bottleneck. Project environments are riddled with unknowns, whether it is uncertainty of scope change, technical uncertainty of work, or uncertainty about problems from vendors and customers that cannot be anticipated. The pace of issue resolution and decision-making effectively dictates the productivity of all the resources. If decision-making and issue resolution are effective and fast, the interruptions to work will be fewer and people more focused. When this pace is slow the number of interruptions increase and time is lost waiting and also in the lost sense of urgency.

It is a Resource Manager's job to ensure that the roles and responsibilities in the organization are set-up to increase the pace of decision making. There are many ways to exploit this precious capacity. Some of these are described below.

  • In some situations cross-functional participation is required to resolve issues. There are delays caused because the right set of people are not all available at the same time. Scheduling conflicts can easily delay decisions by weeks. An effective tactic in these cases is to create regular and frequent meetings of the right people who are available to review issues and make decisions as needed. The change from scheduling these people's time in advance for specific issues to being able to walk into a room where they are holding office hours at regular times can significantly accelerate the pace of decision making.

  • In many situations, there are troubleshooting experts who can resolve difficult issues. Typically, these people are assigned to projects just like any other resources. Informally though, other people access their time to resolve issues causing them to be overloaded and delaying the issue resolution process across the organization. Taking these experts off specific projects and getting them proactively involved in all projects can dramatically increase throughput.

  • Creating an organization-wide point of contact to triage support needs coming in from the outside helps isolate the key resources from interruptions and work that is urgent, but can be handled by other less skilled resources. Task Managers can be such people.


Resource Pooling

We know that in planning, pipelining of projects (staggering project starts based on the most limiting resources) will minimize peaks and valleys in workload. However, even if the plan might have resources and work perfectly matched, in execution the uncertainties can quickly cause resources and workload to get out of synch. Such non-instantaneous availability of resources can create long delays in projects.

There are two ways of dealing with the situation: either earmark enough excess capacity to each project, or pool resources across projects. Pooling of resources can provide surge capacity at much lower costs, and also stimulates professional development by allowing people to work on multiple projects simultaneously. The key to making resource pooling work is to ensure that the project-specific knowledge and expertise can still be maintained.

back to top

 
   
NEW CUSTOMERS

We welcome the following organizations to an ever expanding community of Realization’s customers:

Medtronic Therapy Delivery Systems
This division of Medtronic, the world leader in life-saving technologies including the pacemaker, will use Realization's system to run and accelerate its new product development.

PowerDsine
PowerDsine is a leader of the fast-growing Power over Ethernet (PoE) technology that allows power to be transmitted over the same network cable as data. PowerDsine has been a pioneer in the development of the Power over Ethernet market place from its inception. www.powerdsine.com

Thermal Care
Thermal Care, Inc. manufactures process cooling equipment for industry worldwide. Skillfully engineered temperature controllers, portable and central chillers, cooling towers and pump/reservoirs, provide Thermal Care customers with a wide range of process cooling solutions from off-the-shelf models to integrated, customized systems. www.thermalcare.com

back to top

 
 
Read Past Issues

Have Feedback?
Send comments to feedback@realization.com

Visit us on the web at www.realization.com