Navigate projects safely with buffer traffic lights

Many companies rely on Critical Chain Project Management (CCPM) for adherence to deadlines, short lead times and capacity control, which are critical to success. The focus is not only on the tasks themselves, but also on the dependencies and resources required for them. CCPM uses buffers and focused control to ensure that projects are completed more reliably within the time frame. If the CCPM philosophy is to be actively implemented in the company, specific CCPM functions and a visualization of the information that is crucial for the management and prioritization of projects not only serve to provide clarity, they also have strategic benefits. The CCPM functions and visualization of the CCPM method are not included in the standard scope of classic SAP modules such as the SAP Project System. This is why packaging machine manufacturer Koch Pac-Systeme decided to introduce add-ons that map CCPM in SAP when it switched to SAP.

Koch Pac-Systeme is one of the world's leading manufacturers of packaging machines in the field of blister machines, carton packaging machines and packaging lines. Thanks to their modular design, the special machine manufacturer's packaging technologies enable customized solutions for consumer goods, healthcare products and contact lenses. Today, the technology leader employs around 450 people at its production site in Pfalzgrafenweiler and in service branches worldwide. With more than fifty years of experience, the company has become part of the Uhlmann Group.

Conversion to S/4

This was accompanied by the switch to SAP S/4 Hana in order to navigate projects company-wide with standardized data. „In our old ERP solution, we had integrated functions that allowed us to live the CCPM philosophy. With the transition to SAP, the question arose as to how we could also map CCPM in the new system,“ says Hans-Martin Keppler, responsible for Business Processes and Applications at Koch Pac-Systeme, explaining the situation that led to the search for a suitable add-on provider. This was carried out by an external project manager, who also accompanied the SAP migration. In particular, a graphical capacity utilization per workstation was to be integrated, which was to be distributed over the entire remaining project duration in order to be able to make statements about any backlogs.

„The selection of suitable solutions was not large. With SAP Lean/Critical Project Management and the PS capacity evaluation app, the overall package from Milliarum convinced us,“ says Christoph Mogath, key user at Koch Pac-Systeme, describing the selection process. The decisive factor was the opportunity to visit a reference user and experience the integration of CCPM in SAP with the Milliarum add-ons live on site. „The applications mapped the logic of how we plan and process projects, including the graphical display of worklist lists,“ adds Hans-Martin Keppler.

Traffic light controls project progress

With PS capacity evaluation and SAP Lean/Critical Project Management, project and production managers are always in control of their resources. Like an intelligent traffic light that not only controls the current traffic flow but also prevents delays, the project status is visualized graphically. Green stands for optimally utilized machines and employees: Everything is running to time here. Yellow indicates an emerging over- or under-utilization, where targeted countermeasures can be taken. Red indicates impending bottlenecks or delays. Early identification of the critical chain, visual evaluations based on SAP data and integrated buffer management can not only shorten throughput times, but also significantly increase adherence to deadlines. The CCPM methodology is based on the Theory of Constraints, which assumes that every value chain is determined by at least one limiting element, the bottleneck. By controlling this bottleneck in a targeted manner, the performance and efficiency of the entire chain can be optimized.

„Our solutions provide users with a management tool that enables them to manage their projects stably, efficiently and with maximum transparency,“ says Steffen Wester-Ebbinghaus, Managing Director of Milliarum. Project managers can prioritize quickly, eliminate bottlenecks and make reliable decisions before things come to a standstill. „The worklist is the crucial point for CCPM: with Milliarum, we have implemented a traffic light logic there. Instead of controlling deadlines, we control the flow,“ says Hans-Martin Keppler. The dynamic capacity views were particularly convincing, as the team at Koch Pac-Systeme lacked corresponding graphical representations in the SAP standard.

CCPM brought to life in SAP

To introduce the add-ons, it is necessary to prepare the projects in SAP so that Milliarum can process the data. The Milliarum CCPM solution is fully integrated into the SAP Project System (PS) and SAP Enterprise Resource Planning (ERP) and uses the existing SAP data without redundancy. This means that data is available along the entire value chain and extensions, such as service orders, can be mapped flexibly.

The Milliarum tools access the SAP database for all process steps. This was closely supported by Milliarum on site at Koch Pac-Systeme. The close cooperation between the internal project team, external SAP consultants and Milliarum was crucial to the successful implementation. „It was very good teamwork, which meant that we were able to use the CCPM methodology and the capacity views even after the changeover to S/4 Hana without any setbacks,“ summarizes Hans-Martin Keppler. This offers Koch Pac-Systeme the advantage in project management that the planning works with buffers at the end, so that delivery dates are protected. In this way, throughput times could be reduced.

Projects are managed on the basis of buffer consumption instead of classic deadline milestones with the aim of making optimum use of the overall buffer and
secure the end of the project. This allows project managers to see at a glance where bottlenecks occur and where attention is required. „This is ideal for our project business in special machine construction: you often have to adapt to new situations,“ says Christoph Mogath. This allows you to manage a wide range of trades simultaneously and react dynamically to the progress of the project.

Around 80 users at KochPac-Systeme use PS capacity evaluation and SAP Lean/Critical Project Management. They particularly appreciate the capacity view, which they find flexible, clear and scalable. Individual customization requests were also taken into account. For example, the remaining capacities were allocated to the remaining term and it was possible to make more reliable statements about the project status.

Active projects are always running in the background. The entire project management toolbox is clearly available to those responsible: The date can be changed, tasks extended or deadlines postponed directly on the screen. KochPac systems also initiated the coloring of the buffer traffic light. Today, the appealing graphic display is particularly appreciated. „Milliarum responded very flexibly to our customization requests. These have now paid off,“ says Hans-Martin Keppler. They also appreciate the possibility of mass data changes via the worklist, so that several network operations can be reported back. The SAP standard does not offer this: it is necessary to make confirmations activity by activity. This means that changes can be summarized per project or work center, which significantly reduces manual effort.

Total buffer: course to target date

Before switching to SAP, the company used
at Koch Pac-Systeme has opted for flexible midmarket software. The step into the complex SAP world was a major project. „With Milliarum, we have found a counterpart to our previous solution that maps our requirements for implementing the CCPM methodology in SAP,“ says Hans-Martin Keppler. With the new tools, CCPM is not only understood, but also lived: instead of getting lost in the fog of vague schedules, the traffic light clearly shows where the project stands. Green means: everything is on track. Yellow means: take a close look now. And red means: act together before things become critical. In this way, project management is not a gut feeling, but a data-based decision: transparent, focused and with a clear course towards the target date.
The focus is not on strictly controlling each individual task according to deadline, but on managing the overall buffer that ensures the end of the project. „We are happy that our processes are stable and that we have mastered the changeover to S/4. There is no reason to change anything.“ Koch benefits from the continuous further development of the Milliarum solutions.
There are already plans to implement the SAP UI5 Overview Pages for the CCPM and PS and to provide AI functions. (Source: Milliarum)

Koch Pac systems

Koch Pac-Systeme has been active in the field of blister packaging technologies for over 50 years and employs around
400 employees. The company develops and realizes individual blister machines and packaging lines for applications in the consumer goods, healthcare and contact lens sectors. Customers worldwide use the modular systems both for new developments and for specific packaging requirements. Koch Pac-Systeme also offers services over the entire life cycle of the systems to support stable and efficient operation. The company also develops customized blister packaging systems for special applications where no standard solutions are available.