Best Practices of BeingManagement3

Critical Chain Project Management
Delivering projects successfully, the TOC way
Best practices of BeingManagement3

in global companies
April, 2018 1-Day Seminar in India
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Being Co., Ltd. 1
Common Voices from Top-management
Projects begins to delay suddenly, and rush jobs are forced at the end all the time.
The lead time is longer than competitors.
Cost becomes larger than the initial plan.
Communications across the organization is not good.
Pressure under resource shortage is severe.
Worry whether the quality is satisfying with the requirement.
The whole situation and progress is not visible, which prevent
managers from taking quick actions.
Organizational change as “functional base” to “Project base” every several years,
however, it doesn’t seem to be working well.
Cannot afford to do the Mid/long-term technological development because of the full
hands in short-term matters.
Being Co., Ltd. 2
Common Voices from project leaders
Struggling with an ordinal customer’s requirement for the specification change.
Resource contention is in everywhere across projects.
Forced to start the project before the enough preparation is completed.
Overtime working and Holiday working is wide-spreading especially in the Design and
Development division.
Rework occurs frequently.
Forced to correspond to the inquiry and unexpected troubles under the high loaded
situation of project works.
The task priority is recognized differently by members, and everything is said to be as the
highest priority.
Being Co., Ltd. 3
Best practices
Case1. MAZDA(NPD)
Case2. Mitsui Engineering & Shipbuilding(ETO)
Case3. Alpine information Systems(IT)
Case4. BOSCH Packaging Systems(Multi-project)
Case5. SHARP(NPD)
Being Co., Ltd. 4
Keywords for the successful implementation

1. Maximizing “FLOW”
2. Identifying "When Not to do"
3. Local Optima to Global Optima
4. Focusing mechanism to balance FLOW
5. Getting Management involved
Being Co., Ltd.
Confidential 5
Case1. MAZDA
“New product development in powertrain”
Being Co., Ltd. 6
About MAZDA
Company name Mazda Motor Corporation
Founded January 30, 1920
Headquarters 3-1 Shinchi, Fuchu-cho, Aki-gun, Hiroshima 730-8670 Japan
Representative Masamichi Kogai, Representative Director; President and CEO
Main business Manufacture and sales of passenger cars and commercial vehicles
Stock Authorized: 1,200,000,000
Information shares Issued: 599,875,479
shares Number of shareholders: 151,191
Capital ¥258,957,096,762
Employees Unconsolidated Total: 22,121 (Male: 20,129 Female: 1,992) (including
dispatchees)
Consolidated: 48,849
Research and Head Office, Mazda R&D Center (Yokohama), Mazda North American
development Operations (USA), Mazda Motor Europe (Germany), China Engineering
sites Support Center (China)
Production sites Japan: Hiroshima Plant (Head Office, Ujina), Hofu Plant (Nishinoura,
Nakanoseki), Miyoshi Plant
Overseas: China, Thailand, Mexico, Vietnam*1, Malaysia*2, Russia*2
Sales companies Japan: 229, Overseas: 141
Principal Four-wheeled vehicles, gasoline reciprocating engines, diesel engines,

products automatic and manual transmissions for vehicles
Being Co., Ltd. 7
Powertrain Dept. HQ implemented CCPM
for new product development projects
Mazda3 Mazda6
MX-5 CX-5
Being Co., Ltd.
Implementation History
2013-
2007 2008 2009 2010 2011 2012
2014
Step 3
Big Results
-SKYACTIV Technology Project-
Step 2
Turning Point
Step 1
Starting Point
Being Co., Ltd. 9
Step 1
Starting Point -Bottom-up Activity-
Challenge by three champions
• In October 2007, Started implementing CCPM to Powertrain development headquarters
– Working with Champions who promote CCPM activities
• Powertrain planning Dept. General Manager : Mr. Akihiro Kidani
(Currently : General Manager MDI Project Office, MDI : MAZDA Digital Innovation）
• Chief Manager : Mr. Yoshimichi Tanaka （Currently : Tanaka Coaching Office)
• Assistant Manager : Mr. Mitsuo Mimura Mr. Tanaka
– Top management of Powertrain development headquarters worried about their future

• Top management was General Manager : Mr. Fujiwara.
(Currently : Director, Senior Managing Executive Officer,
Oversight of R&D and MDI, In charge of Cost Innovation)
– CCPM promoting members started investigating the possibilities of CCPM
• In December 2007, held CCPM workshop with mainly key persons by Being Co.,Ltd.
– Over 150 attendees
– Many of them felt a possibility in the direction with CCPM
Being Co., Ltd. 10
Step 1 Starting Point -Bottom-up Activity-
Dilemma of Top management
Top management of Powertrain development HQ agreed to the concept of CCPM
Yes But…
= Good! = Having many bad experiences of
KAIZEN activities in the past…
• In the past, experienced a number of KAIZEN activities by Top-down but most of
them ended with half way or became mere facade.
• Didn’t want to repeat the same mistake they have made in the past!
• Desire to make it successful and make it a part of their culture
Decided to go by Bottom-up activities

by Volunteers, instead of Top-down
Being Co., Ltd. 11
Step 1 Starting Point -Bottom-up Activity-
Pilot project of CCPM
• February in 2008, Being Co., Ltd. started providing consulting services for introducing
CCPM by Bottom-up.
– Implementation of CCPM Software “BeingManagement”
– Weekly, CCPM training programs (For Management, for Project manager, for Task Manager)
• Launched with Single project bases until the Middle management and Gemba got a
Reliability of CCPM
• In limited area, in pilot project, the volunteers had activities.
• Expanding the member of volunteers by continuing seminars several times a month.
– Outstanding performance by promoting members
• Bottom-up implementation＝12months - 18months
Continue to Bottom-up Activity
Being Co., Ltd. 12
Step 2
Turning Point -Shortened the Development Duration from 2 years to 1 year-
Applied CCPM to short-term development project
• January in 2009,
• The savior project for CCPM activity appeared,
– Initial plan for the project was 2 years

• Top management requested to make it 1 year.
• Plan：Be conscious of Project Flow.
• Execution : Management understanding progress
by a short cycle.
Speedy actions for recovery by management.
Challenge!
Being Co., Ltd. 13
Step 2 Turning Point -Shortened the Development Duration from 2 years to 1 year-
Results
• Shortened the Development Duration from 2 years to 1 year!
• The project ended in a big success!
• Experienced a successful project which they
had never done before.
Buffer consumption
Success Factors
rate(%)
• Communication across the organization.
• Think together, and Manager’s initiative.
Chain progress rate (%)
Gained a Reliability of CCPM

Being Co., Ltd. 14
Step 3 How they managed Large Projects
Applying CCPM to Large Projects

• The number of tasks became thousands in the projects
• Adopted the idea of “Project Nesting”
• Management in a separate Medium-sized projects and Large-sized project.
• Managed Summary projects and Blanch projects separately
•Summary project： Overall plan, having 100 to 200 tasks
•Blanch projects: Managing sub-projects for each areas
e.g Engine system: Hundreds of tasks

Exhaust system: 100 tasks
Intake system: 100 tasks
Control system: Hundreds of tasks
Being Co., Ltd. 15
Step 3 Big Results -SKYACTIV Technology Project-
From Bottom-up Activity to Top-down Activity
• Pressure from the market

• Pressure from Top management：Release earlier!!
Original ▼Start Goal▼

CX-5 Project
Actual ▼Start Goal▼

CX-5 Project
▼Start Goal▼
Mazda2 Project
▼Start Goal▼ Two additional
Mazda3 Project projects
Big Challenge, Huge Success !!

Being Co., Ltd. 16
Being Co., Ltd. 17
Synchronization with many groups and development members
Periodical update meeting for Large project management
• Established a “CCPM Room” for an intensive discussion to solve
the issues.
• Project leaders from all projects
met every week in this room.
• Sharing project progress and
making prompt decisions for the
required actions to meet due-date.
• Escalate the issues to the
management and solve it within
24 hours in the case where the
project needs support from the top-management.
Being Co., Ltd. 18
Synchronization with many groups and development members
Task Management Meeting in every morning
• Break down the CCPM task to individual tasks
• Stand up meeting in front of the Task board.
• Manage by project team leaders
Being Co., Ltd. 19
Synchronization with Suppliers

• Explaining the concept of CCPM to those suppliers who influences
Project Buffer.
• Negotiating due-date by sharing actual CCPM schedule
• Implemented CCPM to some of the suppliers
Synchronization with other departments

• CCPM hasn’t been applied yet
• Explaining the concept of CCPM and sharing CCPM schedule
• Not missing daily communications
• Executing synchronization of Milestones
Being Co., Ltd. 20
Executive Officer’s Presentation in TOCICO Conference 2013
Being Co., Ltd. 21
Big Results
• All the projects were delivered on time or even earlier to the market.
• CX-5 was successfully released to the market earlier than the initial plan.
• SKYACTIV Winning various awards around the World.
• Bottom line profits were turned into black in 2013 after 4 years continuous
loss.
• Increase Development capacity and productivity.
Opening Keynote in 2013

by Mr. Mitsuo Hitomi, Executive officer
And, applied CCPM to SKYACTIV projects and All projects
Being Co., Ltd. 22
Awarded 2016 TOCICO International POOGI Award,
and won a world car of the year in 2016
Being Co., Ltd. 23
Case2. Mitsui Ship Building
Being Co., Ltd. 24
Background of Shipyard Industry
Being Co., Ltd. 25
Mitsui Engineering & Shipbuilding Co., Ltd.
Being Co., Ltd. 26
Mitsui Engineering & Shipbuilding Co., Ltd.
Being Co., Ltd. 27
Case3. Alpine Information Systems
Being Co., Ltd. 28
Alpine Information Systems
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Being Co., Ltd. 31
Case4. BOSCH Packaging Systems
Being Co., Ltd. 32
Bosch Packaging Systems AG, Beringen, SWITZERLAND
Being Co., Ltd. 33
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Bosch Packaging Technology
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Case5. SHARP
“PM Innovation in Mobile phone development”
Being Co., Ltd. 53
Case in Sharp corporation
Being Co., Ltd.
Confidential 54
Corporate Profile
Company name Sharp Corporation
1 Takumi-cho, Sakai-ku, Sakai City, Osaka 590-8522, Japan

Head Office
+81-72-282-1221
Founder, Tokuji Hayakawa, was awarded a patent for the "Tokubijo" snap buckle (he was 18 years old at
Established the time). On September 15, 1912, he established a small metalworking shop in Matsui-cho, Honjo,
Tokyo
Representative J.W. Tai, President & Chief Executive Officer
5 billion yen /50 million dollars

Capital Stock
(as of March 31, 2017)
Listed market Tokyo Stock Exchange, standard 4834
2,050,639 million yen (consolidated)

Sales 1,577,301 million yen (unconsolidated)
( Fiscal 2016 Financial Results )
Consolidated: 42,861
Japan: 18,439 (Sharp Corporation 13,452 / other Consolidated 4,987)
Employees
Overseas: 24,422 (Consolidated)
(as of June 30, 2017)
Mainly manufacturing and sales of telecommunications equipment, electric and electronic application
Business Domain
equipment, and electronic components.
Being Co., Ltd.
Confidential 55
IoT Communications
IoT Communications
Mobile phones, tablets, electronic dictionaries, calculators,
facsimiles, telephones, network control units.
Personal Communications
Preceding Design Prod. After

Study Planning Dev. Sell-in Support
Communication Robots
<Annual Report2017>
Being Co., Ltd.
Confidential 56
Before project
This project had started before a known acquisition by Foxconn Technology in January, 2016
<Annual Report2016>
Negative spiral
Downturn
Weak Lose Resource

Product appeal Motivation Reduction
Stagnation
Of activities
For Future
Since 2012, Sharp had been struggling with the above

negative spiral in spite of various structural reform measures.
As the same in other business divisions, in Personal

Communication business division, most of their employees
were exhausting with high work load and anxiety for future
under resource reduction and a plenty of corporate
restructuring activities.
Being Co., Ltd. 57
What to change, and What to change to
What to change?: What is the problem we are attempting to address?
What to change to? : What is our solution to problems?
Constraint 1
Shortage of spare time for their preceding study of their
following models within one year
Change Management
＝CCPM（Critical Chain Project Management）
Constraint 2
Unclear “Cause and effect” logic between Top-
management strategy and GENBA activities.
Visualize the logic between strategy and tactics

=S&T tree format
Being Co., Ltd. 58
What to change to
Why we chose CCPM as a solution?

Focused attention on the waiting/holding time caused by Bad Multi-tasking
Others
Longer task time
Waiting for Inputs
Stop working Delayed Delayed response Tend to

Waiting for approvals
response to
Waiting time
in the middle issues to resources rework
Waiting for resources
Bad Multi-tasking by Bad Multi-tasking

Manager/Resources
(Unavoidable)
Resources are Uncertainty
Start other limited Too many WIP tasks
tasks
Too many projects are

released in parallel Actual
Waiting Productive time
time occurs Task can be
started with not
Mindset of “Early start
enough
brings early Fear of “not meeting
preparation
completion” Due date if we don’t
start ASAP” Composition of Project L/T
Being Co., Ltd.
What to change to
3 major elements for reducing Bad Multi-tasking
Pipeline management
Project release control based on virtual drum
Full Kitting
Full Kitting before project/task release in order to avoid
re-works and to accelerate smooth execution.
Buffer management
Project execution with priorities based on buffer consumption,
and building issue escalation/solving system.
Being Co., Ltd. 60
How to cause the change
Being Co., Ltd. 61
Less communication under silos/vertical organization

Restructuring to cross-functional organization
-Too much attention to their own division’s work, which was preventing quick
respond to cross functional issues.
-Restructured organization to project based formation, and transfer the authority to
each project managers
《Before》 Personal Communication Div. 《After》 Personal Communication Div.

Dev A
Dev A
Dev D
Dev D
Dev C
Dev C
Dev B
Dev B
Project
Project
Project Manager
Task Task Task Task
Manager Manager Manager Manager
Task Task Task Task
Manager Manager Manager Manager
Being Co., Ltd. 62
Assigned project manager lead to create the entire plan

-Applied CCPM to a new mobile phone development Project.
Following the initial success in hardware dept., software dept. had joined to implement CCPM.
-Under the leadership in project managers and task managers, everyone had cooperated to
create the entire project plan
-Struggled with creating the entire project plan at the beginning, however, the entire project
picture became visible to everyone.
Entire project plan

In Hardware development Dept.
Being Co., Ltd. 63
Allocating buffer into project plan

-It wasn’t easy to make buffer time in a project plan, because of the required short project due
date and the limited resources.
-However, project leaders encouraged members to challenge it by sharing the entire goal of
the project, which was “Creating preceding study time for next models”.
-In the first project as a trial, they decided to start the project with 50% for task executing time
and other 50% for project buffer. *Purchasing L/T is not included.
Following the trial in Hardware Dept.,

Software Dept. joined this process.
Being Co., Ltd. 64
Buffer management
Brief morning meeting/Daily has started.
How to create value for attending this daily meeting?
Progress report
- Remaining Duration for each tasks had reported by task managers
- Confirming the project status in fever chart and checking critical chain by using penetrating chain
analysis(BM3) among all the project members.
- Escalating issues to project managers or upper authorities if it is required.
- Project managers lead to avoid bad multi-tasking by clarifying priority(Project level/Task level)
Confirming Fever Chart
RDU report
Issue escalation
Penetrating chain analysis
Being Co., Ltd. 65
Delay of issue escalation and problem solving was

preventing project progress and its quality
Issue Escalation
-Covering all bases for smooth issue escalation and quick solving
-Avoid taking all issues on individuals, thus solving quickly small issues in a daily morning meeting.
-Accelerating cross functional issue solving with inexperienced speed
in order to shorten the waiting time for each tasks.
*Especially managers commitment for quick issue solving was essential in the beginning. Issue solving
Escalation to upper
authority
Unsolved issues
Solve it
Requires cross
in a morning Mtg.
functional adjustment
Escalation Daily morning Mtg.
Issue occurs
Being Co., Ltd. 66
Sample image: Issue escalation and solving cycle for more Speed
Daily Daily When necessary
Organizational Issue
Task Manager Mtg. Project issue solving Mtg.
Issue Escalation
Solving Mtg.
Issue Escalation
--------------------- ----------------------
Task Manager Project Manager ----------------------
Assigned resources Task Manager Directors
Project members *Project Manager
RDU Fever Chart

Daily at 8:30AM Multi-project
Delay reasons Penetrating
30 minutes Fever Chart
Issue List Chain Analysis
Issue List
Issue List
Task Solution Solution
Execution Execution Execution
Pipeline management Mtg.

Operational Audit Mtg.
----------------------
Directors
Pipeline Manager
Promotional team member
Every Wednesday at 13:00PM

60 minutes Weekly
Being Co., Ltd. 67
Too much reworking time and quality issue
in downstream process
Full Kitting
- Before CCPM, unsolved issues were left until the downstream process, as a result, there were
many cases of firefighter working in front of the mass-production process.
-In spite of the uncompleted preparation(Full kitting), tasks were executed. This brought more
waiting time and too much reworks.
Ideal Planning Phase Phase A Phase B Production
Spec. change was Needed to recover

bringing many issues Quality requirement
Fire
Before Planning Phase Phase A Phase B Prod.
Fighting
Many issues were Before mass- Vertical mass-production

Need to start as it was
postponed to be solved production, issues have launch required additional
originally scheduled
to downstream to be solved investment
Being Co., Ltd. 68
Start after Full-

Full-Kitting(Enough preparation)
- Setting clear criteria for Full-kitting items of each phases and Go/Not go criteria to next
phase, which was shared among all members.
- Preventing reworks in the downstream and realizing assured quality ahead of schedule in
earlier stage, by completing full-kitting in each phases.
Full-kitting
manager
Approval
By Director
Items Responsible
ToDo Doing Done
Dept.
A Dev. A
B Dev. B
C Dev. C
D Dev. D
Visualized in Whiteboard with sticky notes Checking progress ↑
Being Co., Ltd. 69
Intermediate Results in Sharp
Being Co., Ltd. 70
Constraint 1
Change Management
Shortage of spare time for their preceding study of
＝CCPM（Critical Chain Project Management）
their following models within one year
Build early issue escalation system and accelerate their

speed and capacity to solve project issues.
- Achieved 30% reduction in L/T of their internal mobile phone development within 6 months.
- Acquired spare time from the L/T reduction was allocated to the time for preceding study and
technical research.
Procurement Procurement Production
Acquired Acquired
Internal Task Internal Task Launch Acquired Time
Time Time
Shortened Shortened Shortened
Assigning resources to Assigning resources

preceding study and technical research. to next models
Approximately 1 month Approximately 1 months
Being Co., Ltd. 71
Realized a required quality ahead of initial schedule

- Reduced a vast of additional investment for delay recovery
- Reduced 20% of indicated issues by customer (Software dept.)
*Especially serious findings were dramatically reduced.
- Bug convergence timing was advanced by 25% ( Software dept.)
Number of indicated issues by customer
Convergence rate
Timeline Timeline
The number of indicated issues by Customer Bug convergence timing
(Compared to the same model in the previous fiscal year) (Compared to the same model in the previous fiscal year)
Being Co., Ltd. 72
The second challenge of Pipeline management
Being Co., Ltd. 73
The second challenge – Pipeline management
Restarted challenge of Pipeline management
Holistic approach in pipeline management

- Division manager’s leadership with holistic view had supported them to place
this challenge as an entire division’s mission across departments.
Pipeline simulation with 2 years to the end, and identified

Project start date(Project release date)
- Set the most recent customer milestone(Scheduled product release date) as their
calculation starting point, and did a backward scheduling to decide when to
start.(project start date=Project release date)
Concept work Proposal Proposal Final Product

starts Team starts Due date
Backwords Release date
Preceding Concept Proposal

work Design & Dev. Prod.
Study team
Being Co., Ltd. 74
The second challenge – Pipeline management
Bad multi-
multi-tasking were also in Planning dept.
- Reviewed work process from a “concept work” to “product release” in order to
see resource load.
- Found out that the timing for the release period of
their latest mobile phone model and the one for
preparation of next model proposal was duplicated,
and thus the resources were overloaded.
Sample: Resource load
Business division started to work as one team, and to

cooperate across departments.
Planning
Dept.
- Project members started supporting/working across department
with a holistic mind for more effective work process.
- Bad multi-tasking in Planning dept. had dramatically reduced, Holistic
Flow
and started synchronized with other departments as
Hardware Software
software and hardware department. Dept. Dept.
Being Co., Ltd. 75
Results from the second challenge
Being Co., Ltd. 76
Results from the second challenge
Acquired a spare time for the preceding study of next

mobile phone model within 1 year
- Concept work started proceeding 1.5 month earlier than before.
- Project members started to join in the concept work process.
- 2 months for the technical research/study was secured.
- Project start/release schedule for the next 2 years was clarified by pipeline
simulation.
Mobile phone business division

became a robust one team
through the change in Management!!
Being Co., Ltd. 77
Is the constraint disappeared?
-Voice from the champion in Sharp
<Annual Report2017>
Being Co., Ltd. 78
Management has changed?
Impression by champion in Sharp
“Thanks to this opportunity we had been tackling, we could find out and shared the common
goal among all the related departments, though the mission for each department is different.
This holistic mind set for everyone ahead to our customer is bringing results to the entire
business division.“
“ Realized that management ourselves has to be changed at first in order to accelerate the
cross functional challenges in projects. Strongly believes that it is the first step for the
management innovation.”
“ On the other hand, in reality, there are many other issues to promote holistic business
approach. 1. Silo mentality still exists in reality. 2. We are still on the way up to the goal by
cooperating across organization. 3. We have a confidence to achieve more results by sharing
business purpose and expanding our challenges to wider area of organization.”
Management innovation in Sharp

from silo to Holistic approach is now realizing
Being Co., Ltd. 79
Core team members in Sharp
Tom Goto, Being senior consultant

Implementing Mazda’s CCPM since 2008, and many other as IT, Pharmacy, Construction, etc..
Presented case studies at TOCICO and many other conferences
Being Co., Ltd.
80
Keywords for the successful implementation

1. Maximizing “FLOW”
2. Identifying "When Not to do"
3. Local Optima to Global Optima
4. Focusing mechanism to balance FLOW
5. Getting Management involved
Being Co., Ltd.
Confidential 81

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Best Practices of BeingManagement3

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Critical Chain Project Management

Delivering projects successfully, the TOC way

Best practices of BeingManagement3

April, 2018 1-Day Seminar in India

Keywords for the successful implementation

Principal Four-wheeled vehicles, gasoline reciprocating engines, diesel engines,

– Top management of Powertrain development headquarters worried about their future

Decided to go by Bottom-up activities

Continue to Bottom-up Activity

– Initial plan for the project was 2 years

Chain progress rate (%)

Gained a Reliability of CCPM

Applying CCPM to Large Projects

e.g Engine system: Hundreds of tasks

From Bottom-up Activity to Top-down Activity

• Pressure from the market

Original ▼Start Goal▼

Actual ▼Start Goal▼

Big Challenge, Huge Success !!

Synchronization with Suppliers

Synchronization with other departments

Executive Officer’s Presentation in TOCICO Conference 2013

Opening Keynote in 2013

Case2. Mitsui Ship Building

Case3. Alpine Information Systems

Case4. BOSCH Packaging Systems

Case in Sharp corporation

Company name Sharp Corporation

1 Takumi-cho, Sakai-ku, Sakai City, Osaka 590-8522, Japan

Representative J.W. Tai, President & Chief Executive Officer

5 billion yen /50 million dollars

Listed market Tokyo Stock Exchange, standard 4834

2,050,639 million yen (consolidated)

Preceding Design Prod. After

Weak Lose Resource

Since 2012, Sharp had been struggling with the above

As the same in other business divisions, in Personal

Visualize the logic between strategy and tactics

Why we chose CCPM as a solution?

Stop working Delayed Delayed response Tend to

Bad Multi-tasking by Bad Multi-tasking

Too many projects are

3 major elements for reducing Bad Multi-tasking

Project release control based on virtual drum

How to cause the change

Less communication under silos/vertical organization

《Before》 Personal Communication Div. 《After》 Personal Communication Div.

Assigned project manager lead to create the entire plan

Entire project plan

Allocating buffer into project plan

Following the trial in Hardware Dept.,

Confirming Fever Chart

Penetrating chain analysis

Delay of issue escalation and problem solving was

Escalation Daily morning Mtg.

Daily Daily When necessary

RDU Fever Chart

Pipeline management Mtg.

Every Wednesday at 13:00PM

Ideal Planning Phase Phase A Phase B Production

Spec. change was Needed to recover

Many issues were Before mass- Vertical mass-production

Start after Full-