Critical chain project management (CCPM) - Revision history

Tkokotas at 15:26, 18 December 2018

2018-12-18T15:26:36Z

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			''Developed by Mathilde Søndenaa''


	Critical Chain Project Management (CCPM) is a method of planning, executing and managing projects that are using the uncertainty as a possibility rather than as a threat. The methodology was developed by Dr. Eliyahu M. Goldratt in 1997. Goldratt´s Theory of Constraints (TOC), and the following book called "Critical chain", was the root for this method. This theory consists of a collection of methods and algorithms to describe supply chain management. An objection is to streamline the transfer of ingredients from the factory all the way through the distribution chain where that particular product is put onto market. The reason why Goldratt came up with this method was because projects often got delayed, there were increases in costs during the project and the deliverables were often less than first promised. Normal process of project planning, with a project team, what tasks to be accomplished, and what sequence, must be defined before the method becomes useful. The main principle with the CCPM is to strip off the risk of starting the project late or finish it early, and instead put some extra time into a buffer.		Critical Chain Project Management (CCPM) is a method of planning, executing and managing projects that are using the uncertainty as a possibility rather than as a threat. The methodology was developed by Dr. Eliyahu M. Goldratt in 1997. Goldratt´s Theory of Constraints (TOC), and the following book called "Critical chain", was the root for this method. This theory consists of a collection of methods and algorithms to describe supply chain management. An objection is to streamline the transfer of ingredients from the factory all the way through the distribution chain where that particular product is put onto market. The reason why Goldratt came up with this method was because projects often got delayed, there were increases in costs during the project and the deliverables were often less than first promised. Normal process of project planning, with a project team, what tasks to be accomplished, and what sequence, must be defined before the method becomes useful. The main principle with the CCPM is to strip off the risk of starting the project late or finish it early, and instead put some extra time into a buffer.

Tkokotas at 13:20, 10 November 2018

2018-11-10T13:20:07Z

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	* Newbold, R. (2011) Critical Chain Project Management (Internet video) Available from: https://www.youtube.com/watch?v=7Xf-waj23P8 (Seen 10.09.15).		* Newbold, R. (2011) Critical Chain Project Management (Internet video) Available from: https://www.youtube.com/watch?v=7Xf-waj23P8 (Seen 10.09.15).
	** A video made by Rob Newbold for ProChain Sollutions. The video take a look at the CCPM method, with a special look at the methodological basis. Deadline management and multitasking is the main principles included in the video, and how the handling of this affects a project.		** A video made by Rob Newbold for ProChain Sollutions. The video take a look at the CCPM method, with a special look at the methodological basis. Deadline management and multitasking is the main principles included in the video, and how the handling of this affects a project.


			[[Category:Project Management]][[Category:Complexity]][[Category:Actions]][[Category:Critical Chain Theory]]

Mathilso: /* Conclusion */

2015-09-28T18:26:35Z

Conclusion

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	When using the CCPM method behaviour changes makes the most significant difference, which can be both an advantage and a disadvantage. When people in the organization are set to this specific change it can work out nicely. If only a few of the people in the organization miss out on the change, it can prevent the significant difference.		When using the CCPM method behaviour changes makes the most significant difference, which can be both an advantage and a disadvantage. When people in the organization are set to this specific change it can work out nicely. If only a few of the people in the organization miss out on the change, it can prevent the significant difference.

	If an organization don´t have effective project planning and controlling processes, run a relatively large number of quite similar projects in a matrix environment where the main concern is to meet the deadlines, Critical Chain Project Management can be a good method.		If an organization don´t have effective project planning and controlling processes, run a relatively large number of quite similar projects in a matrix environment, where the main concern is to meet the deadlines, Critical Chain Project Management can be a good method. The limitations and costs followed by the CCPM implementation should carefully be weighted against the potential to contributing to a long-term business success for an organization. <ref name = "csb"> [http://www.csb.uncw.edu/people/rosenl/classes/OPS100/A%20Critical%20Look%20at%20Critical%20Chain%20Project%20Management.pdf] Raz, T., Barnes, R. & Dvir, D. (2003) A Critical Look at Critical Chain Project Management, Project Management Journal (Internet), Available from: http://www.csb.uncw.edu/people/rosenl/classes/OPS100/A%20Critical%20Look%20at%20Critical%20Chain%20Project%20Management.pdf (Read: 18.09.15). </ref>

	== References ==		== References ==

Mathilso: /* Creating a CCPM schedule */

2015-09-28T17:30:29Z

Creating a CCPM schedule

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	During step 2 the duration of the project buffer is calculated. As mentioned, the project buffer is protecting the critical path, which in this example is activity A and C, with a duration of 13 days together in the CCPM schedule. 50 % probability gives a project buffer duration of 6,5 days. This is calculated by dividing 13 by 2. The project buffer appears as a part of the critical path.		During step 2 the duration of the project buffer is calculated. As mentioned, the project buffer is protecting the critical path, which in this example is activity A and C, with a duration of 13 days together in the CCPM schedule. 50 % probability gives a project buffer duration of 6,5 days. This is calculated by dividing 13 by 2. The project buffer appears as a part of the critical path.
	The feeder buffer(s) duration are calculated in step 3. The feeder buffer protects the non-critical path, which will usually be multiple, but in this example there is only one (activity B). It is important to know that the buffer protects the entire path, and not each task, so it is added in the end of every non-critical path, and not after every task. The feeder buffer(s) are usually also set to 50 % of the path. In this example B has a duration of 9 days in the CCPM schedule, which gives a feeder buffer duration of 4,5 days. In this example this will give a new critical path to the project. The rule here is to set the feeder buffer(s) to 50 % of the path unless it creates a new critical path, like for this example. Then the duration of the feeder buffer must be reduced until it won´t give a critical path through the network. In this example the feeder buffer must be reduced to only one day. <ref> [https://www.youtube.com/watch?v=t803JLLoi38] Bryant and Stratton College (2012) Critical chain example (Internet video) Available from: https://www.youtube.com/watch?v=t803JLLoi38 (Seen 16.09.15).</ref>		The feeder buffer(s) duration are calculated in step 3. The feeder buffer protects the non-critical path, which will usually be multiple, but in this example there is only one (activity B). It is important to know that the buffer protects the entire path, and not each task, so it is added in the end of every non-critical path, and not after every task. The feeder buffer(s) are usually also set to 50 % of the path. In this example B has a duration of 9 days in the CCPM schedule, which gives a feeder buffer duration of 4,5 days. In this example this will give a new critical path to the project. The rule here is to set the feeder buffer(s) to 50 % of the path unless it creates a new critical path, like for this example. Then the duration of the feeder buffer must be reduced until it won´t give a critical path through the network. In this example the feeder buffer must be reduced to only one day. <ref> [https://www.youtube.com/watch?v=t803JLLoi38] Bryant and Stratton College (2012) Critical chain example (Internet video) Available from: https://www.youtube.com/watch?v=t803JLLoi38 (Seen 16.09.15).</ref>


	[[File:5.png\|1200px\|thumb\|center\|Figure 4: Shows the result of the example presented above, https://www.youtube.com/watch?v=t803JLLoi38]]		[[File:5.png\|1200px\|thumb\|center\|Figure 4: Shows the result of the example presented above, https://www.youtube.com/watch?v=t803JLLoi38]]

Mathilso: /* Creating a CCPM schedule */

2015-09-28T17:30:18Z

Creating a CCPM schedule

← Older revision		Revision as of 17:30, 28 September 2015
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	During step 2 the duration of the project buffer is calculated. As mentioned, the project buffer is protecting the critical path, which in this example is activity A and C, with a duration of 13 days together in the CCPM schedule. 50 % probability gives a project buffer duration of 6,5 days. This is calculated by dividing 13 by 2. The project buffer appears as a part of the critical path.		During step 2 the duration of the project buffer is calculated. As mentioned, the project buffer is protecting the critical path, which in this example is activity A and C, with a duration of 13 days together in the CCPM schedule. 50 % probability gives a project buffer duration of 6,5 days. This is calculated by dividing 13 by 2. The project buffer appears as a part of the critical path.
	The feeder buffer(s) duration are calculated in step 3. The feeder buffer protects the non-critical path, which will usually be multiple, but in this example there is only one (activity B). It is important to know that the buffer protects the entire path, and not each task, so it is added in the end of every non-critical path, and not after every task. The feeder buffer(s) are usually also set to 50 % of the path. In this example B has a duration of 9 days in the CCPM schedule, which gives a feeder buffer duration of 4,5 days. In this example this will give a new critical path to the project. The rule here is to set the feeder buffer(s) to 50 % of the path unless it creates a new critical path, like for this example. Then the duration of the feeder buffer must be reduced until it won´t give a critical path through the network. In this example the feeder buffer must be reduced to only one day. <ref> [https://www.youtube.com/watch?v=t803JLLoi38] Bryant and Stratton College (2012) Critical chain example (Internet video) Available from: https://www.youtube.com/watch?v=t803JLLoi38 (Seen 16.09.15).</ref>		The feeder buffer(s) duration are calculated in step 3. The feeder buffer protects the non-critical path, which will usually be multiple, but in this example there is only one (activity B). It is important to know that the buffer protects the entire path, and not each task, so it is added in the end of every non-critical path, and not after every task. The feeder buffer(s) are usually also set to 50 % of the path. In this example B has a duration of 9 days in the CCPM schedule, which gives a feeder buffer duration of 4,5 days. In this example this will give a new critical path to the project. The rule here is to set the feeder buffer(s) to 50 % of the path unless it creates a new critical path, like for this example. Then the duration of the feeder buffer must be reduced until it won´t give a critical path through the network. In this example the feeder buffer must be reduced to only one day. <ref> [https://www.youtube.com/watch?v=t803JLLoi38] Bryant and Stratton College (2012) Critical chain example (Internet video) Available from: https://www.youtube.com/watch?v=t803JLLoi38 (Seen 16.09.15).</ref>

	[[File:5.png\|1200px\|thumb\|center\|Figure 4: Shows the result of the example presented above, https://www.youtube.com/watch?v=t803JLLoi38]]		[[File:5.png\|1200px\|thumb\|center\|Figure 4: Shows the result of the example presented above, https://www.youtube.com/watch?v=t803JLLoi38]]

Mathilso: /* Limitations */

2015-09-28T17:29:15Z

Limitations

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	Disadvantages of using Critical Chain Project Management method is mainly to adapt the team to the changes the use of this method requires. Additionally, the method require commitment from project team, from the project manager and from the stakeholders. There can be a lot of setbacks if the team doesn´t know the method and see the finish line. The methodology defines the activity duration as the major factor affecting the ability to complete the project in time. External pressure, internal politics and distorting estimates to win the project is also relevant to finish before deadline, and should also be addressed. <ref name = "csb"> [http://www.csb.uncw.edu/people/rosenl/classes/OPS100/A%20Critical%20Look%20at%20Critical%20Chain%20Project%20Management.pdf] Raz, T., Barnes, R. & Dvir, D. (2003) A Critical Look at Critical Chain Project Management, Project Management Journal (Internet), Available from: http://www.csb.uncw.edu/people/rosenl/classes/OPS100/A%20Critical%20Look%20at%20Critical%20Chain%20Project%20Management.pdf (Read: 18.09.15). </ref> The methodology is nor supported by any major planning packages.		Disadvantages of using Critical Chain Project Management method is mainly to adapt the team to the changes the use of this method requires. Additionally, the method require commitment from project team, from the project manager and from the stakeholders. There can be a lot of setbacks if the team doesn´t know the method and see the finish line. The methodology defines the activity duration as the major factor affecting the ability to complete the project in time. External pressure, internal politics and distorting estimates to win the project is also relevant to finish before deadline, and should also be addressed. <ref name = "csb"> [http://www.csb.uncw.edu/people/rosenl/classes/OPS100/A%20Critical%20Look%20at%20Critical%20Chain%20Project%20Management.pdf] Raz, T., Barnes, R. & Dvir, D. (2003) A Critical Look at Critical Chain Project Management, Project Management Journal (Internet), Available from: http://www.csb.uncw.edu/people/rosenl/classes/OPS100/A%20Critical%20Look%20at%20Critical%20Chain%20Project%20Management.pdf (Read: 18.09.15). </ref> The methodology is nor supported by any major planning packages.

	CCPM has got a lot of positive feedback, but the feedback is often from organizations who started out with weak, or non existing project management methodology. The methodology has been out for only a short period of time, therefor it is hard to assess any long-term benefits. <ref name = "csb"> [http://www.csb.uncw.edu/people/rosenl/classes/OPS100/A%20Critical%20Look%20at%20Critical%20Chain%20Project%20Management.pdf] Raz, T., Barnes, R. & Dvir, D. (2003) A Critical Look at Critical Chain Project Management, Project Management Journal (Internet), Available from: http://www.csb.uncw.edu/people/rosenl/classes/OPS100/A%20Critical%20Look%20at%20Critical%20Chain%20Project%20Management.pdf (Read: 18.09.15). </ref>		The methodology suggest reducing the duration of a project with a certain percent, for example 50 %, as used in the example above. This approach can be problematic because the necessary percent is depending on the chosen safety time, and not all people overestimate by the same amount. There are variations based on personality, job experience, nature of the task, workload or other reasons.

			The CCPM has got a lot of positive feedback, but the feedback is often from organizations who started out with weak, or non existing project management methodology. The methodology has been out for only a short period of time, therefor it is hard to assess any long-term benefits. <ref name = "csb"> [http://www.csb.uncw.edu/people/rosenl/classes/OPS100/A%20Critical%20Look%20at%20Critical%20Chain%20Project%20Management.pdf] Raz, T., Barnes, R. & Dvir, D. (2003) A Critical Look at Critical Chain Project Management, Project Management Journal (Internet), Available from: http://www.csb.uncw.edu/people/rosenl/classes/OPS100/A%20Critical%20Look%20at%20Critical%20Chain%20Project%20Management.pdf (Read: 18.09.15). </ref>

	==Conclusion==		==Conclusion==

Mathilso: /* Clear, stable priorities */

2015-09-28T16:49:59Z

Clear, stable priorities

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	=== Clear, stable priorities ===		=== Clear, stable priorities ===
	Clear, stable priorities allows us to focus, specially on the few things that are important, and is therefor also required when using the CCPM method. The main focus here is to avoid multitasking. It is preferred that if one person is needed for two different tasks, he finishes the first one before starting the next task. The critical chain is the longest chain of tasks taking in to account resource limitation. This can be used to define the expected lower limit for the possible lead time of a project. To complete the critical chain schedule, the project buffer is added in the end. The multitasking will most likely also be reduced by using task lists that reveal which tasks is the most critical. If one resource is needed for two projects, and the projects are planned to go at the same time, the CCPM method recommend to start one of the projects after the other one is finished. The method determines that by pushing out the second project things will go more quickly, because then multitasking is reduced.		Clear, stable priorities allows us to focus, specially on the few things that are important, and is therefor also required when using the CCPM method. The main focus here is to avoid bad multitasking. It is preferred that if one person is needed for two different tasks, he finishes the first one before starting the next task. The critical chain is the longest chain of tasks taking in to account resource limitation. This can be used to define the expected lower limit for the possible lead time of a project. To complete the critical chain schedule, the project buffer is added in the end. The multitasking will most likely also be reduced by using task lists that reveal which tasks is the most critical. If one resource is needed for two projects, and the projects are planned to go at the same time, the CCPM method recommend to start one of the projects after the other one is finished. The method determines that by pushing out the second project things will go more quickly, because then multitasking is reduced.

	===Relay race culture===		===Relay race culture===

Mathilso: /* Relative global urgency */

2015-09-28T16:48:08Z

Relative global urgency

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	===Relative global urgency===		===Relative global urgency===
	The first is relative global urgency, which means that urgency should apply both for the entire portfolio and for each individual task~~, is required to follow when using the CCPM method~~. The method gives less time for each task in the project, program or portfolio, and then it is added a buffer-box in the end. If there is any delay the project will overlap the buffer time. The buffer consumption tells if the project is in schedule, and if not, how delayed it is. The manager´s focus should be where the buffer consumption is at it´s highest, usually called the red projects. In the other areas (green and yellow) he/she is usually not needed.		The first is relative global urgency, which means that urgency should apply both for the entire portfolio and for each individual task. The method gives less time for each task in the project, program or portfolio, and then it is added a buffer-box in the end. If there is any delay the project will overlap the buffer time. The buffer consumption tells if the project is on schedule, and if not, how delayed it is. The manager´s focus should be where the buffer consumption is at it´s highest, usually called the red projects (as shown in figure 2). In the other areas (green and yellow) he/she is usually not needed.

	=== Clear, stable priorities ===		=== Clear, stable priorities ===

Mathilso: /* Theory of Constraints */

2015-09-28T16:36:01Z

Theory of Constraints

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	* Improved capacity		* Improved capacity
	* Reduced lead time		* Reduced lead time
	* Reduced inventory <ref> [http://www.leanproduction.com/theory-of-constraints.html] </ref>		* Reduced inventory <ref> [http://www.leanproduction.com/theory-of-constraints.html] Lean Production (2010) Theory of Constraints (Internet) Available from: http://www.leanproduction.com/theory-of-constraints.html (Read: 19.09.15)</ref>

	== Methodological basis ==		== Methodological basis ==

Mathilso: /* Core principles */

2015-09-28T16:29:45Z

Core principles

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	== Core principles ==		== Core principles ==
	[[File:2.~~png~~\|390px\|thumb\|right\|Figure 2: Buffer consumption with green, yellow and red projects., https://www.youtube.com/watch?v=7Xf-waj23P8]]		[[File:10.jpg\|390px\|thumb\|right\|Figure 2: Buffer consumption with green, yellow and red projects., https://www.youtube.com/watch?v=7Xf-waj23P8]]
	The main goal using Critical Chain Project Management is to speed up the project with up to 30 %, increase the predictability above 90 % and increase the productivity. This is done manly by reducing stress, errors and wasted time. <ref name = "video1"> [https://www.youtube.com/watch?v=7Xf-waj23P8] Newbold, R. (2011) Critical Chain Project Management (Internet video) Available from: https://www.youtube.com/watch?v=7Xf-waj23P8 (Seen 10.09.15).</ref>		The main goal using Critical Chain Project Management is to speed up the project with up to 30 %, increase the predictability above 90 % and increase the productivity. This is done manly by reducing stress, errors and wasted time. <ref name = "video1"> [https://www.youtube.com/watch?v=7Xf-waj23P8] Newbold, R. (2011) Critical Chain Project Management (Internet video) Available from: https://www.youtube.com/watch?v=7Xf-waj23P8 (Seen 10.09.15).</ref>