ApplicationofCCPM(Critical

ChainProjectManagement)to
generategainsforindustrial
customers
ShirishM.Kulkarni,JayantiDas,andAjay
Deshpande
(Presented at Project Management Leadership Conference,
QAI2009)

WHITEPAPER

Version 1.1
July2009

CopyrightNotice
GeometricLimited.Allrightsreserved.
Nopartofthisdocument(whetherinhardcopyorelectronicform)maybereproduced,storedinaretrieval
system,ortransmitted,inanyformorbyany means,electronic,mechanical, photocopying,recording,or
otherwise, to any third party without the written permission of Geometric Limited. Geometric Limited
reservestherighttochangetheinformationcontainedinthisdocumentwithoutpriornotice.
The names or trademarks or registered trademarks used in this document are the sole property of the
respectiveownersandaregoverned/protectedbytherelevanttrademarkandcopyrightlaws.
ThisdocumentisprovidedbyGeometricLimitedforinformationalpurposesonly,withoutrepresentationor
warrantyofanykind,andGeometricLimitedshallnotbeliableforerrorsoromissionswithrespecttothe
document. The information contained herein isprovided on anASIS basis and to the maximum extent
permittedbyapplicablelaw,GeometricLimitedherebydisclaimsallotherwarrantiesandconditions,either
express, implied or statutory, including but not limited to, any (if any) implied warranties, duties or
conditionsofmerchantability,offitnessforaparticularpurpose,ofaccuracyorcompletenessofresponses,
of results, of workmanlike effort, of lack of viruses, and of lack of negligence, all with regard to the
document.
THEREISNOWARRANTYORCONDITIONOFNONINFRINGEMENTOFANYINTELLECTUALPROPERTYRIGHTS
WITH REGARD TO THE DOCUMENT. IN NO EVENT WILL GEOMETRIC LIMITED BE LIABLE TO ANY OTHER
PARTY FOR LOST PROFITS, LOSS OF USE, LOSS OF DATA, OR ANY INCIDENTAL, CONSEQUENTIAL, DIRECT,
INDIRECT, OR SPECIAL DAMAGES WHETHER UNDER CONTRACT, TORT, WARRANTY, OR OTHERWISE,
ARISINGINANYWAYOUTOFTHISDOCUMENT,WHETHERORNOTSUCHPARTYHADADVANCENOTICEOF
THEPOSSIBILITYOFSUCHDAMAGES.

ConfidentialityNotice
Thisdocumentisdisclosedonlytotherecipientpursuanttoaconfidentialityrelationshipunderwhichthe
recipient has confidentiality obligations defined herein after. This document constitutes confidential
informationandcontainsproprietaryinformationbelongingtoGeometricLimited,andtherecipient,byits
receiptofthisdocument,acknowledgesthesame.Therecipientshallusetheconfidentialinformationonly
for the purpose defined abovefor which this document is supplied. The recipientmust obtain Geometric
Limitedswrittenconsentbeforetherecipientdisclosesanyinformationonthecontentsorsubjectmatter
ofthisdocumentorpartthereoftoanythirdpartywhichmayincludeanindividual,firmorcompanyoran
employee or employees of such a firm or company. The recipient acknowledges its obligation to comply
withtheprovisionsofthisconfidentialitynotice.

Contents
Abstract............................................................................................................................... 4
1. Introduction.................................................................................................................. 4
2. NeedforCCPM ............................................................................................................. 5
3. CCPMMethodology ..................................................................................................... 5
3.1. DifferenceswithCriticalPathMethod ............................................................................... 6
3.2. BufferManagementinCCPM............................................................................................. 6
3.3 Sourcesofwastagesinproject ........................................................................................... 7

4. CCPMMethodologyasappliedforIndustrialProjects ................................................ 9
4.1. FivefocusingstepsofTheoryofConstraintusedtodesignthesolution.......................... 9
4.2. PlanningprojectusingCCPMmethodology ....................................................................... 9
4.3. CCPMProjectTrackingBufferManagement.................................................................. 10
4.4. KeyProjectParameters .................................................................................................... 10
4.5. BufferManagement ......................................................................................................... 11
4.6. BufferRecoveryPlan ........................................................................................................ 11
4.7. StrongGateControl.......................................................................................................... 12

5. ApplicationofCCPMtoSoftwareServicesProjects................................................... 12
5.1. WhyChange?.................................................................................................................... 12
5.2. Objective .......................................................................................................................... 13
5.3. Whattochange? .............................................................................................................. 13
5.4. PrerequisitesfortheChange........................................................................................... 14

6. CaseStudiestotheIndustrialCustomers .................................................................. 16
6.1. GainsforIndustrialCustomers: ........................................................................................ 17
6.2. CriticalSuccessFactors..................................................................................................... 18

7. KeyLearning ............................................................................................................... 19
8. AbouttheConference ................................................................................................ 20
PML2009ProjectManagementLeadershipConference2009............................................... 20

9. Conclusion .................................................................................................................. 19
AbouttheAuthor.............................................................................................................. 20
AboutGeometric .............................................................................................................. 21

Abstract
CCPM (Critical Chain Project Management) is a Project Management Methodology based on
TheoryofConstraints(TOC).TOCisanoverallmanagementphilosophyintroducedbyDr.Eliyahu
M.Goldrattinhis1984booktitledTheGoal,whichisgearedtohelporganizationscontinually
achieve their goal. The idea of CCPM was introduced in 1997 in his book, Critical Chain.
Application of CCPM has been credited with achieving projects 10% to 50% faster and/ or
cheaper than the traditional methods (i.e. CPM, PERT, Gantt, etc.) developed from 1910 to
1950's.
Geometric Ltd has been using CCPM methodology and has reaped the resulting benefits both
internally and externally. This paper summarizes the application of this methodology to the
softwareservicesprojectsfortheindustrialcustomers.Thegainsduetotheapplicationofthis
methodologyforbothfixedcostandT&M(timeandmaterial)typeofprojectsarepassedonto
thecustomersintheformofvalueaddordirecttangiblebenefits.Themainaimistobeableto
deliver "more in same" or "more in less" to the demanding industrial customers and hence to
achieve the customer delight/ satisfaction. In the current business context of slowdown, the
customersaredemandingmoreinless(ormoreinsame)CCPMaimsatenablingthisgoalto
beachievedinasystematicmanner.

1. Introduction
Project Management is becoming more and more challenging with the demanding industrials
customers. The current economic situation is forcing the service providers to go up the value
chain by continuously improving to deliver more and more value to the customers. The CCPM
methodology aims at addressing the basic problems in the areas of estimation, planning and
execution of the projects. The approach addresses the issues related with human behavior
systematically. The gains are achieved by removal of buffers and making themavailable at the
appropriate stages of project. The approach is to challenge the resources to continuously do
betterbymeasuringthemandtrackingtheprojectprogresswiththebiggerpicture.CCPMhas
beenusedinGeometricforlast3yearsandhasbeenclearlyshowntoachievethegainswhich
thecustomers are demanding. Thegains are in the formof delivery ahead of time,delivery of
morefeaturesinthesametimeandimprovementofqualityofdeliverables.
This paper aims to discuss the CCPM methodology, its application to the software services
projectsandspecificallytothedemandingindustrialcustomers.

2. NeedforCCPM
In Project Management, we often hear from the Project Managers the following as their pain
points. This is common to all types of projects viz. engineering, construction, software
developmentorproductdevelopment.Eventhoughtheprojectsarediversified,thecomplaints
arebasicallythesame.
1.

Usuallyoriginalduedatesarenotmet

2.

Thereissignificantrework

3.

Toooftenresourcesarenotavailablewhenneeded(evenwhenpromised)

4.

Delaysingettingapprovals

5.

Necessarythingsarenotavailableontime(specifications,designs,authorizations)

6.

Toomanycustomerchanges

7.

Therearefightsaboutprioritiesbetweenprojects

8.

Actualworkissignificantlymorethanwhatwasoriginallyplanned.

9.

Projectsarefullofsurprises

10. Projectscommitmentsarealwayson3dimensionsoftime,contentandbudgets.
11. Dealingwitheachsurpriseputspressureononeofthecommitment
12. Whenweactupontotakecareofonecommitment,theotherstendtogetcompromised
13. Biggeruncertaintybiggerconflict
14. Morecommitmentsbiggerconflict

3. CCPMMethodology
CCPM (Critical Chain Project Management) is a Project Management methodology based on
Theory of Constraints (TOC). It is aimed to deliver projects 10%50% faster compared to
traditional methodologies and achieves these improvements through a process of waste
reduction. The Critical Chain is defined as the longest chain with critical task considering the
resource contention. CCPM technique is used in the key phases of the project i.e. Project
PlanningandProjectMonitoringandControl.

Withtraditionalprojectmanagementmethods,30%ofthelosttimeandresourcesaretypically
consumed by wasteful techniques such as bad multitasking, student syndrome, inbox delays,
andlackofprioritization.Thephenomenonsareexplainedindetailinthefollowingsections.

3.1. DifferenceswithCriticalPathMethod
The critical chain is the sequence of both precedence and resource dependent terminal
elements that prevents a project from being completed in a shorter time, given finite
resources.Ifresourcesarealwaysavailableinunlimitedquantities,thenaproject'scritical
chainisidenticaltoitscriticalpath.
FollowingarethedistinguishingfeaturesbetweenCCPMandCriticalPathMethod.
1. The use of (often implicit) resource dependencies. Implicit means that they are not
includedintheprojectnetworkbuthavetobeidentifiedbylookingattheresource
requirements.
2. Lackofsearchforanoptimumsolution.Thismeansthata"goodenough"solutionis
enoughbecause,
a. Asfarasisknown,thereisnoanalyticalmethodoffindinganabsoluteoptimum
(i.e.havingtheoverallshortestcriticalchain)
b. The inherent uncertainty in estimates is much greater than the difference
betweentheoptimumandnearoptimum("goodenough"solutions)
3. Theidentificationandinsertionofbuffers:
a. Projectbuffer
b. Feedingbuffers
c. Resourcebuffers
4. Monitoring project progress and health by monitoring the consumption rate of the
buffersratherthanindividualtaskperformancetoschedule.

3.2. BufferManagementinCCPM
CCPM uses buffer management instead of earned value management to assess the
performanceofaproject.Someprojectmanagersfeelthattheearnedvaluemanagement
techniqueismisleading,becauseitdoesnotdistinguishprogressontheprojectconstraint
(i.e. on the critical chain) from progress on nonconstraints (i.e. on other paths). Event
chain methodology can be used to determine the size of project, feeding, and resource
buffers.

3.3 Sourcesofwastagesinproject
There are four main reasons as to why the task safety is wasted. These are due to
ParkinsonsLaw,StudentsSyndrome,DesynchronizationandMultitasking.Letuslookat
theeffectsofeachoftheseparameters
1. Studentssyndrome
2. Parkinsonseffect
3. Desynchronization
4. Multitasking
3.3.1

Students syndrome: Start the latest in any activity andhence latedetection of

uncertaintyintheproject
RealisticEstimate(90%)

Effort
8hrday

Time

Onceresourceshaveprovidedasafetaskdeadline,theytendtoplantheirtasks
around this deadline and focus on trying to deliver against the same. Other
urgent work gets the attention rather than the task at hand whose due date is
outtheresomewhere.Remember,safetywasputinnotonlytoprotectagainst
activitiesthatneededurgentattention,butalsouncertainties.Bystartingatask
laterthanoriginallyplanned,wehavewastedthesafetythatwehaveprovided
for in the task, considerably risking the task deadline. This is the effect of
Studentssyndrome
If a resource does manage to complete and deliver his task early of schedule
becauseuncertaintydidnothitthetask,hewillreceivekudos.Achievethistwice
inarowanditislikelythattheresourceswillbesuspectedofoverestimatingthe
task.Insuchascenario,eveniftheresourcefinishesthetaskearly,hedoesnot

report the early finish. In addition to this, we may stillnotbe able to start the
nexttaskduetoaresourcedependencyworkingonsomeothertask.
Thisdelaypropagatesacrosstasksanditseffectisclearlyseenatanintegration
pointwithintheproject.Soinessence,timegainedisnotreportedwhereastime
lostpropagatesandaffecttheProjectschedule.

3.3.2.

ParkinsonsEffect:Workexpandsthetimeavailableforcompletion
1. Longinitialmobilizationtimeforresources,aftergettingtheproject
2. Mosttasksmeetthegatesormissthem;rarelyaretheydoneaheadoftime
3. Continuepolishingthetask(trymoreiterations),becausethemoduleleader
isbusyinurgentfeatures
4. Addmorewhistlestofascinatetheuser
5. Letmetakethechallengetodoitonmyown
6. Followupverycloselywithcustomerforfeedbackclosetoimportantgates

3.3.3.

Desynchronization
Delays accumulate, but gains do not. The delays do not get transferred to the
completionoftheproject.

3.3.4.

Multitasking
Resource is not dedicated for a task till completion. Issues with the priority
handlingforvarioustasks.

Oneoftheotherlargecausesofprojectdelayisduetomultitasking.Multitasking
has2majornegativeimpactsonprojectdeadline

Considerthreetasks.Withoutmultitasking,Task1wouldbefinishedin12days,
Task2in24daysandTask3in36days.WithMultitasking,Task1willfinishin28
days,Task2in32daysandTask3in36days.Hencethereisa16daydelayintask
1 and 8 day delay in delivering Task 2. Hence we will lose the advantage of
deliveringprojectsearly.

4. CCPMMethodologyasappliedforIndustrialProjects
FollowingsectiondescribestheCCPMMethodologyascustomizedtobeappliedtotheindustrial
projectsinGeometric.

4.1. FivefocusingstepsofTheoryofConstraintusedtodesignthesolution
1. Identifythesystemconstraints
2. Decideonhowtoexploittheaboveconstraints
3. Subordinateeverythingelsetotheabovedecisions
4. Elevatethesystemconstraints
5. Checkifconstraintisbroken

4.2. PlanningprojectusingCCPMmethodology
1. Identifyprojectgoal
2. Developprojectnetwork
3. Identifycriticalchain

4. Identifyprojectbuffer
5. Createtheplanwithcriticalchainandprojectbuffer

4.3. CCPMProjectTrackingBufferManagement
1. CCPMdoesbringoutchangesinprojectexecution
2. The completion buffer and feeding buffers provide a robust mechanism to set the
priorities
3. Theprioritiesaresetaccordingtothetypeandthepercentageofbufferconsumed
4. DailytrackingisacriticalsuccessfactorfortrackingofCCPMprojects

4.4. KeyProjectParameters
1. % Longest chain complete: This indicates the progress on the critical chain of the
project.
2. % Buffer penetration: This indicates the % of buffer consumed against the total
projectbuffer
3. Criticalresources:Theresourcegeneratingcontention
a. Identify the most critical resource and ensure his activities are strongly WIP
controlled.
b. Mostly he is the tech lead and is encouraged to devote himself to design and
reviewactivitiesonly.
4. Stopped activities: These are the ones which, if on the critical chain are going to
result the buffer penetration. We must make sure to make resources available for
activitiesoncriticalchain.
5. Dailyactivitytrackingwithfocuson
a. EffortRemaining
b. ResolutionofIssuesfaced
c. Precisetasksassignmenttoindividual
d. VisualControlwithStatusFlash
e. WIPcontrol
f.

Strong Change Management to ensure minimal addition of new tasks to the

commitment
10

g. Alldecisionaresubjectedtoitsimpactoncriticalchain

4.5. BufferManagement
Followingshowsasnapshotofthebuffermanagementchartusedfortrackingtheproject
progress. Thepercentagecritical chain completion andthe buffer penetration is tracked
on a daily basis. This gives a clear picture of the state of the project and the corrective
actions could be decided in the form of the buffer recovery plan. This provides the
managementadashboardfortheprogressoftheproject.

%Buffer

Penetration

%CriticalChainComplete

1. Dailymorningprojectmeetingfortracking
2. AprojectteamneedstoexpediteonlyifitsintheREDzone.
3. ObjectiveshouldbetogetbacktoYELLOWzoneattheearliest.
4. Focusshouldbeonthecriticalchainwherewehavethedelay.

4.6. BufferRecoveryPlan
BufferRecoveryPlanshouldbeupdatedwhentheprojectisinredoryellowzone.
1. If the project state is in green zone, it indicates that project is moving fast on the
longestchain.Thereforenospecificactionisrequired.
2. Iftheprojectstateisinyellow(amber)zone,itindicatesthatthebufferpenetrationis
sameorslightlymorethanthelongestchaincomplete.
3. BufferRecoveryPlanshouldbediscussedinBufferManagementMeetingwhichwill
beparticipatedbytheentireteam.

11

4. The team members should be encouraged to provide solutions to help recover the
buffer.

4.7. StrongGateControl
1. AtaskismarkedascompleteinCCPMwitheffortremainingas0,onlyafteritpassed
thequalitygatecheck.
2. Theseensurenopillingupofincompletetasksandalsoreducethereworkeffort.

5. ApplicationofCCPMtoSoftwareServicesProjects
The following defines the CCPM framework and how its applied for the Software Services
Projects.

5.1. WhyChange?
The change required to address some of the challenges faced in executing industrial
customerprojects.Followingisthelistofchallenges
1. IndustrialCustomersareextremelydemanding
2. Theirstrategiesarecurrentlyaimingatimprovingmarginsbygettingmoreinsame
orevenmoreislessthistranslatesasachallengeforthedeliveryorganizationto
continuouslyimproveineachofthedeliveriesandphasesoftheproject
3. Theydonothavematureunderstandingaboutthesoftwaredevelopmentprocess

12

4. Customersarenotreadytosignofftheintermediateartifactswhicharebaselinefor
thesoftwareprojects(e.g.elaboratedrequirements,designspecifications,testplans
etc)thisbringsinahugeambiguityintheIndustrialProjects,whichgetstranslated
asbuffersintheestimates
5. The specifications are not elaborated in details and get detailed out during the
executionoftheprojectbrininginsurpriseslateintheprojectcycle
6. Originaldeadlinesoftheprojectsaregenerallynotbeingmet
7. Thereissignificantamountofrework
8. Toooftenresourcesarenotavailablewhenneeded(evenwhenpromised)
9. Specifications,designs,authorizationswerenotprovidedfromthestartoftheproject
10. Toomanycustomerchangesduringtheexecutionofprojects
11. Therearefightsabouttheprioritiesbetweentasks

5.2. Objective
1. Vision: Deliver the projects within the constraints of Quality, Time and Cost to the
expectation of the customer and build the operational consistency for continuity of
engagement
2. TacticalGoals:
a. Improve margins for each project ensuring the Quality, Cost and Schedule
parameters
b. Developcompetenciestomanageandexecuteprojectswithinbudget
c. Bringaboutconsistencyofeffortexpendedinexecutionofprojects.

5.3. Whattochange?
ThechangehastobebroughtintothecurrentProjectExecutionEnvironment.Following
aretheareasthatthechangesareinevitable
1. Estimation Process:Ifwelookattheprocessofestimation,wearriveattheproject
deadlinedatewhichisadeterministicdeadlinebylinkingtogetherasetofdependent
taskestimateswhichareprobabilisticinnature.Wethenmonitortheperformanceof
thistaskagainstthemilestoneordeadline
2. Nature of Estimation: Since task estimates are probabilistic in nature, they will
typicallyfollowanormaldistributioncurve.
3. UncertaintyandBuffersinEstimation:

13

a. Estimators give duration estimates that they believe have a high probability of
completingtheworkin,byaddingsafetytimeintheirtaskestimates
b. Thereasonthisisdoneisbecauseoftheneedtocompensateforuncertaintyand
thefearthattheirestimatesmaygetcutduringareviewprocess.Inadditionto
this there are other activities which are currently on the resources desk which
need urgent attention. So in effect all estimates provided have considerable
safety.

5.4. PrerequisitesfortheChange
1. TopManagementbuyinforthechangeintheProjectManagementMethodology
2. TrainingandcompetencybuildingfortheProjectManagers,theleadsandtheteam
3. Creating a winwin vision for teammembers, leads, Project Managers, Senior
Managementandthecustomers
4. ChangeinthethoughtprocessfortheProjectManagement
a. Fromtaskbasedtothebufferbasedtracking
b. Totracktheoverallprojectstatus,insteadofindividualmilestonecompletion
c. Assigningworkassoonaspossibletotheteammembers
d. Tryingtokeepprojectresourcesbusyatalltimes
5. Customerbuyinforthechangeinprojectmanagementactivitiesspecificallyforthe
customermanagedprojects

5.5. ImplementingtheChange:
1. Identifyallthepossibleobstaclesfortheimplementationaheadoftime
2. Gettheteamchargedupwiththemissionofimplementingthechange
3. Addressallsixlayersofresistanceinadvance
LAYER0."We/Idon'thaveaproblem."
Theisaclearresistanceattherootthereisnoproblem,sowhytochange?
LAYER1."Youdon'tunderstandmy/ourproblem(s)."
Maybe,wehavetheproblem,but
LAYER2."...wedon'tagreeonthedirectionofthesolution."

14

"OK,youdounderstandmyproblem(s),butThisisnotasolutionforme
LAYER3."...yoursolutioncan'tpossiblyproducethelevelofresultsyousayitcan."
Fine,thisisoneofthesolutionsforus,butitwillnotproducethedesiredresults
LAYER4."...yourgoodsolutionisgoingtocausesomebadthingstohappen."
Thisisasolutionforourproblem,butitwillresultintofollowingotherproblems.
LAYER5."...therearesomesignificantobstaclesthatpreventtheimplementation."
OKitmightresultintogoodthings,butfollowingarepossibleblockingissuesforhe
implementation
LAYER6.Unverbalizedfear.
Allthatisfine,butIamafraidthatsomethingwillgowrong
4. Implementthechangesinthephasedmannerandkeepacheckonthemeasuresfor
beingsuretomonitorthefeedback

5.6. MeasuringthesuccessoftheChange:
1. IdentifyMeasuresandMetricsasindicatorsforthesuccessofthechange
2. Monitorthemetricsonacontinuousbasis
3. Encouragetheteamtocreatevisualcontrolsforthemetricsforbeingopenaboutthe
currentstateoftheteam
4. Apply immediate corrective action for the measure going outside the control
boundariesdefined

15

6. CaseStudiestotheIndustrialCustomers
CaseAcceleratedIntegrationSolutionDevelopment
The Problem

Product OEM required to demonstrate the use of their PLM products integration with CAD product
a Korean auto major

The Auto major sent a set of 26 usecases for delivery to Geometric

Initial rough estimates were given at 6 months of elapsed time

Detailed estimates made after Geometrics visit to client indicated greater effort required

Customer timelines were fixed @ 4months

The Solution

Use CCPM to compress timelines

Take on as fixed bid and deliver productively in 4 months

Benefits

Scoped Project delivered ahead of schedule and within budget despite complexities
6% additional revenue due to ability to accommodate Change Request in the same timeframe
Productivity gain of time shared with Product partner
Customer confidence in delivery facilitated product license sale and repeat business

Case - Accelerated Furniture software Customization

The Need

Customize the Furniture software for leading furniture manufacturer

Complete development of BOM (Bill of material)
Customized printing functionality
Linking with ERP system

The Solution

Benefits

Reduced Work In progress ( WIP ) and hence reduced Multitasking

Active Task Management
Defined Feature Completion Criteria

Eliminated waste resulted in more time for Integration Testing leading to High Product Quality
No additional efforts close to release.
Delivered 30% more Product functionality
20% reduction in Time Schedules
11% savings in cost

16

Case : Accelerated Development of Feature Rich Product

The Need

Apparel Vertical Product Development for Leading Software PLM Product OEM
Geometric Developed a Solution with a Joint Go To Market Strategy with the OEM for Deployment of the
Solution at Customer Site

The Solution

Reduced Work In progress ( WIP ) and hence reduced Multitasking

Active Task Management

Benefits

Greater effort spent on Integration Testing resulting in High Product Quality

No additional efforts close to release
We delivered 17% more Product functionality
There was a 12% reduction in Time Schedules

6.1. GainsforIndustrialCustomers:
All the above factors contributed a better CSI for the industrial customers and hence the
continuityofthebusinessforthesame.Oneofthecustomershassignedacontractforthe
wholeFY10aheadintime.Theothercustomerwasalwaysinsistingonsmalldurationfixed
cost project, has got convinced to get into a quarterly contract with Geometric. Another
customerhasbeenconsistentlydemandingareducingTCOandGeometriccouldmeetthis
expectation by showing the productivity improvements of 20% and predictability in the
engagement.
Followingchartshowsthegainsachievedforoneoftheproject

FeaturesPlanned[A]
Bugs[B]
OtherEnhancements[C]
TotalWork[D]=[A*5+B+C]
PlannedEffortinPersonMonths
[E]
Productivity[D/E]
ProductivityImprovement

WithoutCCPM
28
345
4
489

WithCCPM
26
540
15
685

76

86

6.43
24%

7.96

ThemainachievementsthroughCCPMaremarkedinthefollowingareas

17

1. Productivity:BetterthroughputfortheAMSengagementMorefeaturesdeliveredto
thecustomerinthesametimeframe
2. Quality:Forthesameamountofworktobedelivered,testingandstabilizationphase
getsmoretimewhichcanimprovethequality
3. Schedule:Projectsdeliveredearly
4. Operational Predictability: Early warnings, Corrections and confidence in
downstreamoperations
5. CSI (Customer Satisfaction Index): Is a direct measure for the feedback about the
deliverables.GeometrichasastandardizedtemplatetoreceivetheCSIforeachofthe
projectduringvariousphasesoftheproject.Coversalltheaspectsbywhichcustomer
can express their opinion about the ongoing or closed project. The CSI for the
engagement

6.2. CriticalSuccessFactors
1. NeedforindepthknowledgeabouttheTOCconceptsattheProjectManagerlevel
2. NeedforthethoroughknowledgeaboutCCPMexecutionmethodology
3. BuyinfromtheTopManagementandfromtheprojectteams
4. Effective use of the internal champions from Delivery/Production teams to drive
execution.Thisensuresscalabilityofimplementation
5. Upfrontdefinitionofgainsmeasures(definethemeasuretocalculatethegains)
6. MappingoftheTeamsgoalstotheIndividualsKRAs(KeyResultAreas)

18

7. KeyLearning
1.

CCPM is a powerful methodology for projects with well defined scope and detailed
specification.ItsImplementationiseasyforfixedpriceprojects.

2.

ForTime&Materialprojects,thevaluehastobebroughtoutbyrunningtheprojectswith
definedscopeandduration.Thishasbeenestablishedeffectivelyintheindustrialprojects
handledinGeometric.

3.

Activetaskmanagementandbuffertrackingarethekeysuccessfactors.Theyprovideearly
warningsignalsabouttheproject.

4.

The involvement of the customer in the whole implementation and hence the regular
demos is an important aspect for the customer to realize the benefits of the approach
tangibly.

5.

The buffer trendline acts as powerful motivator and visual control to seek help or
managementintervention

6.

CCPM methodology works fine if there are no changes in the plan during the project
executionandmilestonesdatesareclearlydefined.

Conclusion
Geometric has customized CCPM methodology for handling the software services projects for
theindustrialcustomersandbuilttoolsforautomatingtheprocessofplanningandtracking.The
gains generated were appreciated by the industrial customers. Geometric benefitted internally
duetothecompetencyandcapabilitygenerated.GeometrichasbeenabletoleveragetheCCPM
methodologyforProjectManagementofthesoftwareservicesprojectsforindustrialcustomers.
Customer Delight has been the key focus area for Geometric and CCPM has proven to be a
definitiveapproachtoachievethesameinastructuredmanner.
OperationalExcellenceisabasictenetofthemanagementstrategyforGeometric.CCPMisable
tobuildthefoundationfortheProjectManagementforachievingthesame.CCPMhelpsreduce
theTCOforthecustomerresultingintocontinuingbusiness.TheBusinessExcellenceismeasured
intheparametersliketoplineandbottomline.CCPMisgearedtoensurethegrowthinthetop
line by the continuation and increase in the revenue and growth in the bottomline with the
improvementinthemargins.

19

AbouttheAuthors
Shirish M. Kulkarni is working as Director Growth Accounts in Geometric and is heading the
Growth Initiatives, Markets and Deliveries in key Accounts. He has about 19 years of industry
experience. He has been driving various process and business improvement initiatives.
Innovation and Process Improvement are his areas of interest. Email:
Shirish.M.Kulkarni@geometricglobal.com

JayantiDasisworkingastheProcessesandProductivityexpertinGeometricandhas10yearsof
experience. She is driving the CCPM initiatives to achieve improvements across projects in
Geometric. She has keen interest in the TOC and is a certified TOC expert. Email:
Jayanti.Das@geometricglobal.com

AjayDeshpandeisworkingasaDeliveryManagerforoneofthestrategicaccountsforGeometric.
Hehasindustryexperienceofabout12yearsandisinstrumentalinthegrowthoftheaccount
from its inception. Ajayhasdelivered value to thecustomer using theCCPM methodology for
various projects. Ajay has a keen interest in the operational excellence and is leading some
specificcompetencyimprovementinitiatives.Email:Ajay.Deshpande@geometricglobal.com

AbouttheConference
PML2009ProjectManagementLeadershipConference2009
The5thAnnualInternationalProjectManagementLeadershipConference[PML2009]isaunique
forumforexchanging,learningandacceleratingimplementationofbestpracticesinthedomain
ofProjectManagement.
The conference is built on the theme of Role of Project/Program Management in achieving
Operational and Business Excellence. PML 2009 aims to highlight the extent to which Project
ManagementprocessesandpracticescanimprovetheToplineandBottomlineinorganizations
andenhanceOrganizationalCompetence,especiallyduringthecurrenteconomicsituations.

20

AboutGeometric
Geometric is a specialist in the domain of engineering solutions, services and technologies. Its
portfolio of Global Engineering services and Digital Technology solutions for Product Lifecycle
Management(PLM)enablescompaniestoformulate,implement,andexecuteglobalengineering
and manufacturing strategies aimed at achieving greater efficiencies in the product realization
lifecycle.
Headquartered in Mumbai, India, Geometric was incorporated in 1994 and is listed on the
BombayandNationalStockExchanges.ThecompanyrecordedconsolidatedrevenuesofRupees
5.98billion(USDollars129.47million)fortheyearendedMarch2009.Itemployscloseto3000
people across 10 global delivery locations in the US, France, Romania, India, and China.
GeometricisassessedatSEICMMILevel5foritssoftwareservicesandISO9001:2000certified
forengineeringoperations.Forfurtherdetails,pleasevisitwww.geometricglobal.com.

21