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Introduction of Concerto As Information System in Larsen & Toubro

Concerto is a latest technology in the field of project management. It's a product of Realization Inc. Founded in 1999 to help organizations execute projects efficiently and faster. Concerto was introduced in Larsen and Toubro as a project management tool in 2004.

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93 views20 pages

Introduction of Concerto As Information System in Larsen & Toubro

Concerto is a latest technology in the field of project management. It's a product of Realization Inc. Founded in 1999 to help organizations execute projects efficiently and faster. Concerto was introduced in Larsen and Toubro as a project management tool in 2004.

Uploaded by

sanghvitapan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Management Information Systems

Introduction of Concerto as Information System in Larsen & Toubro.


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

2007 Realization Technologies, Inc. All Rights Reserved.

The Information System: Concerto


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 & its kind of business.


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 common Manufacturing 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 an old system.


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 and actual 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 project managers. 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

Critical Chain is the longest chain of resource AND task dependencies in a project
Day 0:
X, 10d X, 10d X, 10d X, 10d 25d

T1

T2

T3
X, 10d

T4 T5

PB

Critical Chain

Y, 10d

Y, 10d

10d

T6

T7

FB

Feeding Chain
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Concepts on which Concerto works: Critical Chain & TOC

Theory of Constraints (TOC) is an overall management 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, and inventory. 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.
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Concepts on which Concerto works: Critical Chain & TOC


"The Goal" itself is to "make money". All other benefits are derived, in one way or another, from that single primary goal. 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 to break the constraint)

Theory of Constraints - FIVE FOCUSING STEPS


(Which will Strengthen the Chain)

1. Identify the Constraint

2. Exploit the Constraint

3. Subordinate everything to the Constraint 4. Elevate the Constraint

5. Repeat for the new Constraint

CCPM in Multi Project Environment


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.

SYSTEM COMPONENTS of CONCERTO


PROJECT PLANNING

Critical Chain Buffering


PIPELINE PLANNING

Windows Client Used by Project Managers Integrated with MS Project

Concerto Database & Server

Pipelining

Windows Client Used by Master Scheduler

EXECUTION

Buffer Management

Web Clients Used by all

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CRITICAL CHAIN PLANNING EXERCISE: NETWORK


Receive customer order Procurement of dished ends

Procurement of Nozzles Procurement of Plates

Manufacture of Nozzles Fabrication of header shells Manufacture of main shell

Fabrication of headers

Machine headers

Engineering

Assemble tubes and tube sheet

Hydro test shell side

Hydro test Tube side

Procurement of Tube Sheet forgings Procurement of Tubes Procurement of Hardware & Gaskets

Machine & Drill Tube Sheets

Final Inspection & Despatch

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CRITICAL CHAIN PLANNING: DETAILED WORKFLOW


Set scheduling parameters

Identify CC

Make decisions and modify data

Analyze CC

NO

Cycle time acceptable?

YES

Accept due dates

Export project

Add project to database


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WORKING WITH MS PROJECT: Project Planning

Concerto window MS Project Window

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Buffer Management: Execution: TASK LIST WITH PRIORITIES


Users see only the tasks they are assigned Provides synchronized priorities and sense of urgency (what to do and how urgently)

Priority Order

These tasks are ready to start today

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SAMPLE TREND CHART

% Buffer Consumed
-10

10

% Chain Complete

What does the direction of the graph tell us?

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BUFFER STATUS

90%

% Buffer Consumed

80%

10% 8% 5% 20% % Chain Complete


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Success: Current scenario in L&T


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 tremendously. 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

Marketing and estimation are able to do what if analysis during 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 individual commitment. 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 shop facility. 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

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 terms of global competition. This is an example of successful Operation and Management Support System.

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Management Information Systems

Thank You

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