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Philip Marris briefly explains the problems of managing the capacity of an organization in project environments. How long does it take to write a piece of software code or find a new supplier? All the numbers are wrong. So management work on the principle of hydraulic pressure: the more projects I force into the system the more will come out. As a result the organization goes into multitasking madness and very little work gets finished.

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Transcription
00:00i hope that's one of the advantages i have coming from manufacturing right i did 20 years of
00:04manufacturing before i got into projects in manufacturing you have numbers how long does
00:08it take to drill a hole in the piece of steel 17 seconds how long does it take to do
00:12this whatever
00:13so you can calculate capacities right and have an idea of what you're capable of doing in projects
00:18environments you're trying to work out how long it takes to find a supplier how long it takes to
00:23have a good idea and prove a concept how long is it going to take to write some code you
00:26don't have
00:26a clue on any of those numbers right people are making them up so you don't know the workload
00:32and therefore you don't know the capacity of your system right again top management detests that so
00:38they basically in most cases work on hydraulic pressure that's to say that the more projects
00:43they put into the system they think the more is going to come out right they don't have any idea
00:48what the system is capable of they just think let's just push it in push it in push it in
00:53and therefore
00:53there'll be more work for more people and therefore more will come out in fact that kills the system
00:58it all goes mad uh and then people turn into to multitasking craziness and very very little comes
01:05out of the system because they put too much work into the into the thing there's no flow right there's
01:09no flow um so that's that's why um the uh thing uh goes it goes mad and it's made that
01:18much more
01:18impressive in projects compared to manufacturing because as i say there are no numbers and you can
01:23perfectly have people with twice as much capacity as they need they only have four hours of work
01:28every every day in fact in reality if you if you looked at it coldly but their top management is
01:34making sure everybody's busy so they have to fake work or invent work and they end up inventing work
01:40which is then going to work that is then going to increase the workload on somebody else by they
01:44started something too early uh they didn't have anything to do so they started uh producing something
01:49when there was only a draft specification that sort of stuff and the whole thing goes mad completely mad
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How do you manage your project portfolio?

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