Critical-Chain Approach - Revision history

SigridEikemoThorgaard: /* Critical Chain Project Management */

2023-02-19T17:31:07Z

Critical Chain Project Management

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	The approach of CCPM exploits the three types of buffers to monitor and control the project time performance. The monitoring process is based on buffer consumptions and is divided into three zones, OK (green zone), Watch and Plan (yellow zone) and Act (red zone), see figure 5.		The approach of CCPM exploits the three types of buffers to monitor and control the project time performance. The monitoring process is based on buffer consumptions and is divided into three zones, OK (green zone), Watch and Plan (yellow zone) and Act (red zone), see figure 5.
	When the buffer consumption begins to decrease and move towards the second zone (Watch and Plan), signals are set off in order to seek corrective actions. However, this warning mechanism is not used to its full potential unless the buffer consumption is compared with the actual progress of the project. As an example, if the project is 75% complete and the buffer consumption is 50%, there is nothing to worry about. Conversely, if the project is only 25% complete and the buffer consumption is 50%, appropriate and immediate actions must be taken <ref name=gray> Gray, C. F., & Larson, E. W. (2011). ‘’Project Management, The Managerial Process.’’ McGraw-Hill/Irwin, NY</ref>.		When the buffer consumption begins to decrease and move towards the second zone (Watch and Plan), signals are set off in order to seek corrective actions. However, this warning mechanism is not used to its full potential unless the buffer consumption is compared with the actual progress of the project. As an example, if the project is 75% complete and the buffer consumption is 50%, there is nothing to worry about. Conversely, if the project is only 25% complete and the buffer consumption is 50%, appropriate and immediate actions must be taken <ref name=gray> Gray, C. F., & Larson, E. W. (2011). ‘’Project Management, The Managerial Process.’’ McGraw-Hill/Irwin, NY</ref>.


	=Traditional approaches=		=Traditional approaches=

Tkokotas at 12:56, 18 December 2018

2018-12-18T12:56:52Z

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			''Developed by Gudrún Thóra Reynisdóttir''


	'''Critical Chain Project Management (CCPM)''' is a methodology for planning, executing and managing projects. The focus is on the project schedule and to reduce project changes and cost overruns by taking into account resource allocations and time uncertainties of activities.		'''Critical Chain Project Management (CCPM)''' is a methodology for planning, executing and managing projects. The focus is on the project schedule and to reduce project changes and cost overruns by taking into account resource allocations and time uncertainties of activities.

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2016-09-25T14:02:31Z

Annotated Bibliography

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	'''Abreu, A., & Correia, F.(2011) ''An overview of Critical Chain applied to Project Management.'', 4th International Conference on Manufacturing Engineering, Quality and Production Systems, Meqaps – Proceedings, 261-267'''<ref name=abreu> Abreu, A., & Correia, F.(2011) ''An overview of Critical Chain applied to Project Management.'', 4th International Conference on Manufacturing Engineering, Quality and Production Systems, Meqaps – Proceedings, 261-267 </ref>		'''Abreu, A., & Correia, F.(2011) ''An overview of Critical Chain applied to Project Management.'', 4th International Conference on Manufacturing Engineering, Quality and Production Systems, Meqaps – Proceedings, 261-267'''<ref name=abreu> Abreu, A., & Correia, F.(2011) ''An overview of Critical Chain applied to Project Management.'', 4th International Conference on Manufacturing Engineering, Quality and Production Systems, Meqaps – Proceedings, 261-267 </ref>

	The focus point of the article is the characteristics of the Critical Chain approach and use of the Theory of Constraints (TOC) to project management. The article contains an interesting discussion about various advantages and disadvantages of the CCPM approach compared to traditional project scheduling methods. The article walks the reader through the foundations of ~~the~~ TOC, undesired ~~issued~~ related to more traditional project scheduling methods and how to use the CCPM approach to overcome these issues. The CCPM is a new and interesting approach used to reengineer a project schedule in order to match the reality of how people work, something every project manager should be aware of.		The focus point of the article is the characteristics of the Critical Chain approach and the use of the Theory of Constraints (TOC) to project management. The article contains an interesting discussion about various advantages and disadvantages of the CCPM approach compared to traditional project scheduling methods. The article walks the reader through the foundations of TOC, undesired issues related to more traditional project scheduling methods and how to use the CCPM approach to overcome these issues. The CCPM is a new and interesting approach used to reengineer a project schedule in order to match the reality of how people work, something every project manager should be aware of.

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2016-09-25T13:55:07Z

Benefits

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	As mentioned earlier, the CCPM method helps overcome, Parkinson’s Law, student syndrome and self-protection due to less slack in the chain. With less slack in the chain and use of resource buffers, productivity will increase which protects the chain from the undesired effects of dropped baton <ref name=gray> Gray, C. F., & Larson, E. W. (2011). ''Project Management, The Managerial Process.'' McGraw-Hill/Irwin, NY</ref>. Furthermore, by avoiding multitasking, the WIP level in the system is reduced, which can speed up work completion <ref name=pinnacle> Pinnacle Strategies. (2016). ''Critical Chain and Critical Path, Can they coexist?'' Retrieved on 16 September 2016 from http://3escp33iuwsj485tugc1mb91.wpengine.netdna-cdn.com/wp-content/uploads/bsk-pdf-manager/2016/02/CPM-and-CCPM-a-Compare-and-Contrast-Pinnacle-Strategies.pdf</ref>.		As mentioned earlier, the CCPM method helps overcome, Parkinson’s Law, student syndrome and self-protection due to less slack in the chain. With less slack in the chain and use of resource buffers, productivity will increase which protects the chain from the undesired effects of dropped baton <ref name=gray> Gray, C. F., & Larson, E. W. (2011). ''Project Management, The Managerial Process.'' McGraw-Hill/Irwin, NY</ref>. Furthermore, by avoiding multitasking, the WIP level in the system is reduced, which can speed up work completion <ref name=pinnacle> Pinnacle Strategies. (2016). ''Critical Chain and Critical Path, Can they coexist?'' Retrieved on 16 September 2016 from http://3escp33iuwsj485tugc1mb91.wpengine.netdna-cdn.com/wp-content/uploads/bsk-pdf-manager/2016/02/CPM-and-CCPM-a-Compare-and-Contrast-Pinnacle-Strategies.pdf</ref>.

	CCPM does not schedule to specific dates, which can reduce the work of re-planning during the execution stage. This allows the project manager to focus on managing variations in activity durations. With less re-planning the project manager, project workers and other stakeholders have a better overview of the progress. In addition, monitoring buffer consumption can help stakeholders see whether the project is on time or not <ref name=pinnacle> Pinnacle Strategies. (2016). ''Critical Chain and Critical Path, Can they coexist?'' Retrieved on 16 September 2016 from http://3escp33iuwsj485tugc1mb91.wpengine.netdna-cdn.com/wp-content/uploads/bsk-pdf-manager/2016/02/CPM-and-CCPM-a-Compare-and-Contrast-Pinnacle-Strategies.pdf</ref>. The use of buffers and buffer monitoring techniques clearly identifies risk associated with each task and its impact on the project completion. This helps management identify when they must take action and what actions to take <ref name=rand> Rand, G.K.(2000) ''Critical chain: the theory of constraints applied to project management'', International Journal of Project Management 18(3), 173-177</ref>.		CCPM does not schedule to specific dates, which can reduce the work of re-planning during the execution stage. This allows the project manager to focus on managing variations in activity durations. With less re-planning the project manager, project workers and other stakeholders have a better overview of the progress. In addition, monitoring buffer consumption can help stakeholders to see whether the project is on time or not <ref name=pinnacle> Pinnacle Strategies. (2016). ''Critical Chain and Critical Path, Can they coexist?'' Retrieved on 16 September 2016 from http://3escp33iuwsj485tugc1mb91.wpengine.netdna-cdn.com/wp-content/uploads/bsk-pdf-manager/2016/02/CPM-and-CCPM-a-Compare-and-Contrast-Pinnacle-Strategies.pdf</ref>. The use of buffers and buffer monitoring techniques clearly identifies risk associated with each task and its impact on the project completion. This helps management identify when they must take action and what actions to take <ref name=rand> Rand, G.K.(2000) ''Critical chain: the theory of constraints applied to project management'', International Journal of Project Management 18(3), 173-177</ref>.

	=Criticism and limitations=		=Criticism and limitations=

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2016-09-25T13:54:19Z

Benefits

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	As mentioned earlier, the CCPM method helps overcome, Parkinson’s Law, student syndrome and self-protection due to less slack in the chain. With less slack in the chain and use of resource buffers, productivity will increase which protects the chain from the undesired effects of dropped baton <ref name=gray> Gray, C. F., & Larson, E. W. (2011). ''Project Management, The Managerial Process.'' McGraw-Hill/Irwin, NY</ref>. Furthermore, by avoiding multitasking, the WIP level in the system is reduced, which can speed up work completion <ref name=pinnacle> Pinnacle Strategies. (2016). ''Critical Chain and Critical Path, Can they coexist?'' Retrieved on 16 September 2016 from http://3escp33iuwsj485tugc1mb91.wpengine.netdna-cdn.com/wp-content/uploads/bsk-pdf-manager/2016/02/CPM-and-CCPM-a-Compare-and-Contrast-Pinnacle-Strategies.pdf</ref>.		As mentioned earlier, the CCPM method helps overcome, Parkinson’s Law, student syndrome and self-protection due to less slack in the chain. With less slack in the chain and use of resource buffers, productivity will increase which protects the chain from the undesired effects of dropped baton <ref name=gray> Gray, C. F., & Larson, E. W. (2011). ''Project Management, The Managerial Process.'' McGraw-Hill/Irwin, NY</ref>. Furthermore, by avoiding multitasking, the WIP level in the system is reduced, which can speed up work completion <ref name=pinnacle> Pinnacle Strategies. (2016). ''Critical Chain and Critical Path, Can they coexist?'' Retrieved on 16 September 2016 from http://3escp33iuwsj485tugc1mb91.wpengine.netdna-cdn.com/wp-content/uploads/bsk-pdf-manager/2016/02/CPM-and-CCPM-a-Compare-and-Contrast-Pinnacle-Strategies.pdf</ref>.

	CCPM does not schedule to specific dates, which can reduce the work of re-planning during the execution stage. This allows the project manager to focus on managing variations in activity durations. With less re-planning the project manager, project workers and other stakeholders have a better overview of the progress. In addition, monitoring buffer consumption ~~helps~~ stakeholders see whether the project is on time or not <ref name=pinnacle> Pinnacle Strategies. (2016). ''Critical Chain and Critical Path, Can they coexist?'' Retrieved on 16 September 2016 from http://3escp33iuwsj485tugc1mb91.wpengine.netdna-cdn.com/wp-content/uploads/bsk-pdf-manager/2016/02/CPM-and-CCPM-a-Compare-and-Contrast-Pinnacle-Strategies.pdf</ref>. The use of buffers and buffer monitoring techniques clearly identifies risk associated with each task and its impact on the project completion. This helps management identify when they must take action and what actions to take <ref name=rand> Rand, G.K.(2000) ''Critical chain: the theory of constraints applied to project management'', International Journal of Project Management 18(3), 173-177</ref>.		CCPM does not schedule to specific dates, which can reduce the work of re-planning during the execution stage. This allows the project manager to focus on managing variations in activity durations. With less re-planning the project manager, project workers and other stakeholders have a better overview of the progress. In addition, monitoring buffer consumption can help stakeholders see whether the project is on time or not <ref name=pinnacle> Pinnacle Strategies. (2016). ''Critical Chain and Critical Path, Can they coexist?'' Retrieved on 16 September 2016 from http://3escp33iuwsj485tugc1mb91.wpengine.netdna-cdn.com/wp-content/uploads/bsk-pdf-manager/2016/02/CPM-and-CCPM-a-Compare-and-Contrast-Pinnacle-Strategies.pdf</ref>. The use of buffers and buffer monitoring techniques clearly identifies risk associated with each task and its impact on the project completion. This helps management identify when they must take action and what actions to take <ref name=rand> Rand, G.K.(2000) ''Critical chain: the theory of constraints applied to project management'', International Journal of Project Management 18(3), 173-177</ref>.

	=Criticism and limitations=		=Criticism and limitations=

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2016-09-25T13:53:48Z

Benefits

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	As mentioned earlier, the CCPM method helps overcome, Parkinson’s Law, student syndrome and self-protection due to less slack in the chain. With less slack in the chain and use of resource buffers, productivity will increase which protects the chain from the undesired effects of dropped baton <ref name=gray> Gray, C. F., & Larson, E. W. (2011). ''Project Management, The Managerial Process.'' McGraw-Hill/Irwin, NY</ref>. Furthermore, by avoiding multitasking, the WIP level in the system is reduced, which can speed up work completion <ref name=pinnacle> Pinnacle Strategies. (2016). ''Critical Chain and Critical Path, Can they coexist?'' Retrieved on 16 September 2016 from http://3escp33iuwsj485tugc1mb91.wpengine.netdna-cdn.com/wp-content/uploads/bsk-pdf-manager/2016/02/CPM-and-CCPM-a-Compare-and-Contrast-Pinnacle-Strategies.pdf</ref>.		As mentioned earlier, the CCPM method helps overcome, Parkinson’s Law, student syndrome and self-protection due to less slack in the chain. With less slack in the chain and use of resource buffers, productivity will increase which protects the chain from the undesired effects of dropped baton <ref name=gray> Gray, C. F., & Larson, E. W. (2011). ''Project Management, The Managerial Process.'' McGraw-Hill/Irwin, NY</ref>. Furthermore, by avoiding multitasking, the WIP level in the system is reduced, which can speed up work completion <ref name=pinnacle> Pinnacle Strategies. (2016). ''Critical Chain and Critical Path, Can they coexist?'' Retrieved on 16 September 2016 from http://3escp33iuwsj485tugc1mb91.wpengine.netdna-cdn.com/wp-content/uploads/bsk-pdf-manager/2016/02/CPM-and-CCPM-a-Compare-and-Contrast-Pinnacle-Strategies.pdf</ref>.

	CCPM does not schedule to specific dates, which can reduce the work of re-planning during the execution stage. This allows the project manager to focus on managing variations in activity durations. With less re-planning the project manager, project workers and other stakeholders have a better overview of the progress. In addition, ~~looking at~~ buffer consumption helps stakeholders to see whether the project is on time or not <ref name=pinnacle> Pinnacle Strategies. (2016). ''Critical Chain and Critical Path, Can they coexist?'' Retrieved on 16 September 2016 from http://3escp33iuwsj485tugc1mb91.wpengine.netdna-cdn.com/wp-content/uploads/bsk-pdf-manager/2016/02/CPM-and-CCPM-a-Compare-and-Contrast-Pinnacle-Strategies.pdf</ref>. The use of buffers and buffer monitoring techniques clearly identifies risk associated with each task and its impact on the project completion. This helps management identify when they must take action and what actions to take <ref name=rand> Rand, G.K.(2000) ''Critical chain: the theory of constraints applied to project management'', International Journal of Project Management 18(3), 173-177</ref>.		CCPM does not schedule to specific dates, which can reduce the work of re-planning during the execution stage. This allows the project manager to focus on managing variations in activity durations. With less re-planning the project manager, project workers and other stakeholders have a better overview of the progress. In addition, monitoring buffer consumption helps stakeholders see whether the project is on time or not <ref name=pinnacle> Pinnacle Strategies. (2016). ''Critical Chain and Critical Path, Can they coexist?'' Retrieved on 16 September 2016 from http://3escp33iuwsj485tugc1mb91.wpengine.netdna-cdn.com/wp-content/uploads/bsk-pdf-manager/2016/02/CPM-and-CCPM-a-Compare-and-Contrast-Pinnacle-Strategies.pdf</ref>. The use of buffers and buffer monitoring techniques clearly identifies risk associated with each task and its impact on the project completion. This helps management identify when they must take action and what actions to take <ref name=rand> Rand, G.K.(2000) ''Critical chain: the theory of constraints applied to project management'', International Journal of Project Management 18(3), 173-177</ref>.

	=Criticism and limitations=		=Criticism and limitations=

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2016-09-25T13:52:33Z

Benefits

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	As mentioned earlier, the CCPM method helps overcome, Parkinson’s Law, student syndrome and self-protection due to less slack in the chain. With less slack in the chain and use of resource buffers, productivity will increase which protects the chain from the undesired effects of dropped baton <ref name=gray> Gray, C. F., & Larson, E. W. (2011). ''Project Management, The Managerial Process.'' McGraw-Hill/Irwin, NY</ref>. Furthermore, by avoiding multitasking, the WIP level in the system is reduced, which can speed up work completion <ref name=pinnacle> Pinnacle Strategies. (2016). ''Critical Chain and Critical Path, Can they coexist?'' Retrieved on 16 September 2016 from http://3escp33iuwsj485tugc1mb91.wpengine.netdna-cdn.com/wp-content/uploads/bsk-pdf-manager/2016/02/CPM-and-CCPM-a-Compare-and-Contrast-Pinnacle-Strategies.pdf</ref>.		As mentioned earlier, the CCPM method helps overcome, Parkinson’s Law, student syndrome and self-protection due to less slack in the chain. With less slack in the chain and use of resource buffers, productivity will increase which protects the chain from the undesired effects of dropped baton <ref name=gray> Gray, C. F., & Larson, E. W. (2011). ''Project Management, The Managerial Process.'' McGraw-Hill/Irwin, NY</ref>. Furthermore, by avoiding multitasking, the WIP level in the system is reduced, which can speed up work completion <ref name=pinnacle> Pinnacle Strategies. (2016). ''Critical Chain and Critical Path, Can they coexist?'' Retrieved on 16 September 2016 from http://3escp33iuwsj485tugc1mb91.wpengine.netdna-cdn.com/wp-content/uploads/bsk-pdf-manager/2016/02/CPM-and-CCPM-a-Compare-and-Contrast-Pinnacle-Strategies.pdf</ref>.

	CCPM does not schedule to specific dates, which can ~~reduced~~ the work of re-planning during the execution stage. This allows the project manager to focus on managing variations in activity durations. With less re-planning the project manager, project workers and other stakeholders have a better overview of the progress. In addition, looking at buffer consumption helps stakeholders to see whether the project is on time or not <ref name=pinnacle> Pinnacle Strategies. (2016). ''Critical Chain and Critical Path, Can they coexist?'' Retrieved on 16 September 2016 from http://3escp33iuwsj485tugc1mb91.wpengine.netdna-cdn.com/wp-content/uploads/bsk-pdf-manager/2016/02/CPM-and-CCPM-a-Compare-and-Contrast-Pinnacle-Strategies.pdf</ref>. The use of buffers and buffer monitoring techniques clearly identifies risk associated with each task and its impact on the project completion. This helps management identify when they must take action and what actions to take <ref name=rand> Rand, G.K.(2000) ''Critical chain: the theory of constraints applied to project management'', International Journal of Project Management 18(3), 173-177</ref>.		CCPM does not schedule to specific dates, which can reduce the work of re-planning during the execution stage. This allows the project manager to focus on managing variations in activity durations. With less re-planning the project manager, project workers and other stakeholders have a better overview of the progress. In addition, looking at buffer consumption helps stakeholders to see whether the project is on time or not <ref name=pinnacle> Pinnacle Strategies. (2016). ''Critical Chain and Critical Path, Can they coexist?'' Retrieved on 16 September 2016 from http://3escp33iuwsj485tugc1mb91.wpengine.netdna-cdn.com/wp-content/uploads/bsk-pdf-manager/2016/02/CPM-and-CCPM-a-Compare-and-Contrast-Pinnacle-Strategies.pdf</ref>. The use of buffers and buffer monitoring techniques clearly identifies risk associated with each task and its impact on the project completion. This helps management identify when they must take action and what actions to take <ref name=rand> Rand, G.K.(2000) ''Critical chain: the theory of constraints applied to project management'', International Journal of Project Management 18(3), 173-177</ref>.

	=Criticism and limitations=		=Criticism and limitations=

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2016-09-25T13:50:18Z

Benefits

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	=Benefits =		=Benefits =

	The CCPM approach modifies the project schedule in order to take into account limited resources by mixing deterministic and probabilistic approaches. The method aims to shorten project durations with better activity prioritization and efficient resource management, where availability of resources is taken into account. The most important advantage of this method is the ability to deliver projects on time or even before due date. The approach has a strong record of increasing the performance and ~~reduces~~ the time durations. Good examples are:		The CCPM approach modifies the project schedule in order to take into account limited resources by mixing deterministic and probabilistic approaches. The method aims to shorten project durations with better activity prioritization and efficient resource management, where availability of resources is taken into account. The most important advantage of this method is the ability to deliver projects on time or even before due date. The approach has a strong record of increasing the performance and reducing the time durations. Good examples are:
	• Harris Semiconductor built a new automated wafer fabrication facility in less than 13 months by using the approach of CCPM, while the standard industry for such a facility is 26-36 months		• Harris Semiconductor built a new automated wafer fabrication facility in less than 13 months by using the approach of CCPM, while the standard industry for such a facility is 26-36 months
	• The Israeli aircraft industry used CCPM techniques in order to reduce the maintenance work on aircrafts from two months to two weeks <ref name=gray> Gray, C. F., & Larson, E. W. (2011). ''Project Management, The Managerial Process.'' McGraw-Hill/Irwin, NY</ref>.		• The Israeli aircraft industry used CCPM techniques in order to reduce the maintenance work on aircrafts from two months to two weeks <ref name=gray> Gray, C. F., & Larson, E. W. (2011). ''Project Management, The Managerial Process.'' McGraw-Hill/Irwin, NY</ref>.

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2016-09-25T13:48:29Z

Traditional Scheduling vs. CCPM Scheduling - Example

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	The corresponding Gantt chart is shown in Figure 9B. When using the traditional method, the non-critical activities were scheduled to start immediately after activity A, which is the earliest start date for those activities. Now they are scheduled later in the project and a three-day feeding buffer has been added at the end of each of the non-critical activities. This is done in order to absorb any delays that might occur. Finally, the project is estimated to take 27 days with a project buffer of 10 days instead of 50 days as the traditional method estimated.		The corresponding Gantt chart is shown in Figure 9B. When using the traditional method, the non-critical activities were scheduled to start immediately after activity A, which is the earliest start date for those activities. Now they are scheduled later in the project and a three-day feeding buffer has been added at the end of each of the non-critical activities. This is done in order to absorb any delays that might occur. Finally, the project is estimated to take 27 days with a project buffer of 10 days instead of 50 days as the traditional method estimated.

	This example is good way to explain the difference between buffers and slack in projects. Slack is spare time of non-critical activities in the schedule. Buffers, on the other hand, are time blocks reserved for any unpredictable act that might occur, and if they are ~~note~~ needed subsequent project activities can proceed on schedule <ref name=gray> Gray, C. F., & Larson, E. W. (2011). ''Project Management, The Managerial Process.'' McGraw-Hill/Irwin, NY</ref>.		This example is good way to explain the difference between buffers and slack in projects. Slack is spare time of non-critical activities in the schedule. Buffers, on the other hand, are time blocks reserved for any unpredictable act that might occur, and if they are not needed subsequent project activities can proceed on schedule <ref name=gray> Gray, C. F., & Larson, E. W. (2011). ''Project Management, The Managerial Process.'' McGraw-Hill/Irwin, NY</ref>.

	=Benefits =		=Benefits =

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2016-09-25T13:44:59Z

Traditional Scheduling vs. CCPM Scheduling - Example

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	</ul></div>		</ul></div>

	Applying the CCPM approach to the same project, will lead another result. Figure 9A, shows the CCPM network, and notice that the estimated durations for activities are now representing the 50/50 chance rule. Two other observations are that the activities in the critical chain are all technically linked and both feeding buffers and a project buffer have been added to the network.		Applying the CCPM approach to the same project, will lead to another result. Figure 9A, shows the CCPM network, and notice that the estimated durations for activities are now representing the 50/50 chance rule. Two other observations are that the activities in the critical chain are all technically linked and both feeding buffers and a project buffer have been added to the network.

	<div><ul>		<div><ul>