“Reacting to Local Delays Destroys Project Speed Kills Program Productivity” – Realization Technologies. Safety Engine™ Concentrates on Managing Project Uncertainties

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According to Realization Technologies whose multi-project management software is used at over 50 leading organizations, local delays are inevitable in project management.

SILICON VALLEY – February 26, 2003 –project management software is used at over 50 leading organizations, such as Pharmacia, LSI Logic and Medtronic, local delays are inevitable in project management. Although the uncertainties of local delays are to be expected in projects, companies nonetheless continually react, trying to create new rules and ways to standardize them.

“While the irritation caused by sporadic delays is experienced by many of us, reacting to them wreaks havoc on organizational speed and productivity,” relates Sanjeev Gupta, Realization Technologies CEO. “Since all program activities are connected—through resource, project and strategic dependencies—delays in one area affect the global outcome.”

According to Gupta, as managers and teams using traditional, older project management software react to local delays, they affect the availability of work and resources everywhere else. Quickly, carefully drawn plans are rendered obsolete and activities become de-synchronized. Work is completed locally but then sits downstream at integration points because other related work is missing. Everyone works frantically, firefighting to recover local delays, yet overall programs do not move forward. That’s because complex, time-lagged dependencies hide the impact of local delays because they show up later in time, in seemingly unrelated areas.

“As delays during execution mushroom, every activity appears to be critical and management reacts to each and every one,” Gupta continues. “Before a person has finished one task, he or she is pulled onto another. Such multi-tasking or thrashing is estimated to reduce productivity by 20 to 80 percent. Traditional project management is of no help. It merely tracks project status and reports resource load. While producing oceans of data, it does not prevent delays.”

Instead of continually reacting to the delays and other uncertainties of any major multi-project program, they must be managed, Gupta argues. Concerto software, he stresses, does that by inserting blocks of unscheduled time, called buffers, into the plan. These buffers weaken the cascading effect of uncertainties by absorbing and lessoning their shocks. As uncertainties create delays in execution, the buffer gets used. The software’s Safety Engine™ then calculates how much of the unscheduled time is still available for future uncertainties and sets forward-looking priorities for everyone, including managers.

As a result of using this approach, Safety Engine users are completing more than 90 percent of their projects on time, accomplishing more projects with more scope in each project and providing managers with increased control.

Using the Safety Engine, Pharmacia improved due-date delivery by 88 percent. Now, 90 percent of projects are completed on-time. At NACCO Material Handling Group, the Counterbalance Development Center reduced the planned project length on its first program by 20 percent. Plus, management estimates that they produced 40 percent more lift truck features by this milestone.

“Managing the adverse effects of uncertainties, including local delays, is key to today’s project management world,” Gupta emphasizes. “Older project management is useless for doing this, forcing managers to react to local uncertainties, which only leads to vicious, wasteful cycles of late, over-budget and under-scope programs.”

About Realization Technologies, Inc.

Realization Technologies, Inc. (formerly Speed to Market) provides premium project management software, specifically designed to manage uncertainties in projects. Its 65-plus customers around the world include leading organizations such as LSI Logic, Medtronic, NASA, Pharmacia, the U.S. Air Force, and the U.S. Navy, who now deliver over 80 percent of their projects on time without compromising scope, budgets or lead times. Realization is headquartered at 2 North First Street, San Jose, CA 95113. Website is http://www.realization.com.

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For more information, contact:

Sanjeev Gupta/Shailesh Sood            

REALIZATION TECHNOLOGIES

408-271-1711

or

Tom Brigham

BRIGHAM SCULLY

818-716-9021

tbrigham@brighamscully.com

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Shailesh Sood