introduction of concerto as information system in larsen & toubro

8/6/2019 Introduction of Concerto as Information System in Larsen & Toubro

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2007 Realization Technologies, Inc. All Rights Reserved. 1

Introduction of Concerto as Information

System in Larsen & Toubro.

By : Group 9Swarup Saha 80118110095Nikhil Rathod 80118110092Tapan Sangvi 80118110097Shashank Saraf 80118110098SANJAY Khambe 80118110048


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The Information System: Concerto

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A project planning software

Its a latest technology in the field of project management.

Used globally to efficiently manage projects.

Its a product of Realization Inc.

Realization was founded in 1999 to help organizations around

the world execute projects efficiently and faster so that they

can more fully realize their potential.

Works in multi project environment.

This system is based on Dr.E M Goldratts Theory of

Constrain principle. Realizations system was bourn out of book called Critical

Chain by Dr. E.M Goldratt.


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Case Study: Introducing Concerto in L&T

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Concerto was introduced in Larsen & Toubro as a project

management tool in 2004. Larsen & Toubro Heavy Engg div introduced this. L&T HED designs and manufacture customized products for

Oil and Gas Industry. Every project its manufactures is unique in nature.

It has unique project start date : ZERO DATE And an unique Contractual Delivery Date :CDD L&T HED has three manufacturing centre: Powai, Baroda &

Surat. It has more than six SBUs with separate order booking

All the orders are executed in these three commonManufacturing Center. Clash of priority, non availability of resources, Improper scheduling of projects in multi project environment. Resulting into delay in all the projects and LD


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Change Management: Introduction of the new IS into anold system.

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A very new concept in project management.

Old systems were running through decades. No proper training and clear road map for implementation. Faces huge flack at the beginning. People reluctant to use this tool effectively because of

ignorance.

No synchronization between planning through concerto andactual working schedule in shop.

But top management was adamant to implement this at any

cost . This created a catchy or chaotic situation in the production

shops resulting in to various conflicts among projectmanagers. It took almost 5-6 years to implement this across various

production centers with a centralized Concerto Planning

Server.


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Two Concepts on which Concerto works: Critical Chain &TOC

Day 0:

Critical Chain is the longest chain ofresource AND taskdependencies in a project

T1 T2 T3

T5

T4 PB

T7T6 FB

X, 10d X, 10d X, 10d X, 10d

X, 10d

10dY, 10dY, 10d

25d

Critical Chain

Feeding Chain


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Concepts on which Concerto works: Critical Chain & TOC

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Theory of Constraints (TOC) is an overallmanagement philosophy introduced by Dr.

Eliyahu M. Goldratt in his 1984 book titled The Goal,

The underlying premise of Theory of Constraints is that

organizations can be measured and controlled by variations

on three measures: throughput, operational expense, andinventory.

Throughput is the rate at which the system generates money

through sales.

Inventory is all the money that the system has invested in

purchasing things which it intends to sell.

Operational expense is all the money the system spends in

order to turn inventory into throughput."The Goal" itself is to

"make money". All other benefits are derived, in one way or

another, from that single primary goal.
http://en.wikipedia.org/wiki/Management_philosophyhttp://en.wikipedia.org/wiki/Eliyahu_M._Goldratthttp://en.wikipedia.org/wiki/The_Goal_(novel)http://en.wikipedia.org/wiki/The_Goal_(novel)http://en.wikipedia.org/wiki/Eliyahu_M._Goldratthttp://en.wikipedia.org/wiki/Management_philosophy


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Concepts on which Concerto works: Critical Chain & TOC

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"The Goal" itself is to "make money". All other benefits are

derived, in one way or another, from that single primarygoal.

The five focusing steps

Goal achievement is limited by at least one constraining

process. Assuming the goal of the organization has been

articulated the steps are:

Identify the constraint (the resource that prevents the

organization from obtaining more of the goal): DRUM

RESOURCE

Decide how to exploit the constraint (get the most capacity

out of the constrained process)

Subordinate all other processes to above decision (align the

whole system or organization to support the decision made

above)

Elevate the constraint (make other major changes needed tobreak the constraint)


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Critical Chain Project Management: CCPM

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A very new concept in project management.

Old systems were running through decades. No proper training and clear road map for implementation. Faces huge flack at the beginning. People reluctant to use this tool effectively because of

ignorance.

No synchronization between planning through concerto andactual working schedule in shop.

But top management was adamant to implement this at any

cost . This created a catchy or chaotic situation in the production

shops resulting in to various conflicts among projectmanagers. It took almost 5-6 years to implement this across various

production centers with a centralized Concerto Planning

Server.


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1. Identify the Constraint

2. Exploit the Constraint

3. Subordinate everything

to the Constraint

4. Elevate the Constraint

5. Repeat for the new

Constraint

Theory of Constraints - FIVE FOCUSING STEPSTheory of Constraints - FIVE FOCUSING STEPS

(Which will Strengthen the Chain)


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CCPM in Multi Project Environment

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The goal is to protect the Critical Chain of each project by

suitably and efficiently allocating Drum Resources( constraints ) to each of the critical paths of different projects.

In L&T the Drum resources are the Rolling Machines, Skoda,

Vertical boring Machine or sometimes cranes or welding

machine.

These resources are to be allocated in such a fashion that

Critical Chain of all the projects are protected.


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SYSTEM COMPONENTS of CONCERTO

Critical Chain

Buffering

Pipelining

BufferManagement

PROJECT

PLANNING

ConcertoDatabase& Server

Windows Client Used by Project Managers Integrated with MS Project

Windows Client Used by Master Scheduler

Web Clients Used by all

PIPELINE

PLANNING

EXECUTION


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WORKING WITH MS PROJECT: Project Planning

Concerto window

MS Project Window


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CRITICAL CHAIN PLANNING EXERCISE: NETWORK

Procurement of

Nozzles

Procurement of

Plates

Procurement of

Tube Sheet

forgings

Procurement of

dished ends

Manufacture of

Nozzles

Manufacture of

main shell

Machine & Drill

Tube Sheets

Fabrication of

header shells

Procurement of

Hardware &

Gaskets

Engineering

Machine headers

Hydro test Tube

side

Fabrication of

headers

Assemble tubes

and tube sheet

Hydro test shell

side

Procurement ofTubes

Final Inspection

& Despatch

Receive customer

order


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Buffer Management: Execution: TASK LIST WITHPRIORITIES

Users see only the tasks they are assigned

Provides synchronized priorities and sense of urgency (what to do and how urgently)

These tasks

are ready to

start today

Priority

Order


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REPORTING ESCALATED/BLOCKED TASKS


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SAMPLE TREND CHART

% Chain Complete

%

BufferC

onsumed

-10 0 10

What does the direction of the graph tell us?


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% Chain Complete

%

Buff

erC

onsume

d

90%

80%

5%

10%

BUFFER STATUS

20%

8%


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Success: Current scenario in L&T

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Though the initial hiccups, this information system is a grand

success in L&T

All the projects are executed scientifically, and the Delivery

Index has improved phenomenon ally.

There is less conflicts among project managers. Only

centralized server decides priority of a task in a particular

resource.

The manufacturing shops now work with a specific target and

purpose.

Instead of delaying all the project simultaneously, Concerto

gives guide lines to finish first priority and then move on to the

next.


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Success: Current scenario in L&T

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Marketing and estimation are able to do what if analysisduring bidding of a project to get the expected delivery date

of the project before committing to customer.

Customer rely more on the reported generated by concerto

projecting the progress of his project rather than individualcommitment.

Gives a clear guideline whether company will bid certain

project or taking into account the existing work load.

All the SBUs of L&T get equal priority to a certain shopfacility. Completely unbiased.

Efficient project Progress Review tool for Shop floor & PMG.

Action points are easily identified. Top management review.


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Conclusion: The success story of an IS

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It is a big investment for the company. Lots of road blocks.

But ultimately paying back the company in big ways.

This cutting edge technology has changed the work

environment and taken the company into next level in termsof global competition. This is an example of successful Operation and Management

Support System.


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Thank You

introduction of concerto as information system in larsen & toubro

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