Opening SLide

BAMS 522

Prensentation...................

Outline

Motivation and Overview

How to do Critical Chain Management

Some Examples

Definition

Critical Chain Project Management (CCPM) is a methodology for planning, executing and
managing projects in single and multiproject environments.

History

Critical Chain Project Management was developed by Dr Eli Goldratt and was first introduced to the market in his Theory of Constraints book “Critical Chain” in 1997

Motivation

It was developed in response to many projects being dogged by poor performance manifested in

•  longer than expected  durations
•  frequently missed deadlines
•  increased costs in excess  of budget
•  and substantially less  deliverables than originally  promised

Problems With Traditional Project Management

When planning for an upcoming project, estimates for task duration are required. In order for the plan to be treated as realistic, much time is spent ensuring that the estimates are accurate. Accurate estimates give us increased probability and high confidence in task completing on time.

This leads to the following:

• Localized Risk Management
• Student Syndrome
• Parkinsons Law
• Multi-Tasking

Localized Risk Management

In order for the project to be completed on time, each of the individual tasks need to be completed with a certain degree of confidence.

This leads to resources giving a "safe" estimate rather than 50% confidence level.

Student Syndrome

People do not start to work full fledge until the deadline is near

Happens mostly to students.

Parkinsons Law

Delay or Pacing the completion of the task.

Multi-Tasking

Management forces people to work on more than one task at a time.

Multi-Tasking Activity

Other Problems

Resources do not report tasks if they are finished early

Delays are passed on to the entire project however benefits from tasks finishing early are rarely passed 

Traditional Techniques such as CPM do not address the issue of embedded safety

Critical Chain

The Critical Chain is defined as the longest chain of dependent tasks

In this case, dependent refers to resources and resource contention across projects as well as dependencies of the tasks themselves.

Estimations

To reduce the behaviours and time wasting associated with having too much embedded safety, Critical Chain Project Management recommends that task estimates are cut half the length of a "normal" duration.

Safety

Critical Chain Project Management uses safety "Buffers" to manage the impact of variation and uncertainty around the projects. The safety at a task level is aggregated and moved to strategic points in the project flow.

Benefits of CCPM

THree Types OF Buffers

• Project Buffer
• Feeding Buffer
• Resource Buffer

Project Buffer

A project buffer is inserted at the end of the project network between the last task and completion date. Any delays on the longest chain of dependant tasks will consume some of the buffer but will leave the completion date unchanged.

Feeding Buffers

Delays on paths of tasks feeding into the longest chain can impact the project by delaying a subsequent task on the Critical Chain. To protect against this, feeding buffers are inserted between the last task on a feeding path and the Critical Chain.

Resource Buffer

Resource buffers can be set alongside of the Critical Chain to ensure that the appropriate people and skills are available to work on the Critical Chain tasks as soon as needed.

Key Concepts

• Priorities

• Completion

• Buffer Management

• Remaining Duration

Priorities

All resources on a project are given clear and aligned priorities relating to the "health" of the Critical Chain relative to its associated buffer and hence the project as a whole.

A resource with more than one task open should normally be assigned to complete the task that will jeopardise the Critical Chain.

Completion

When there is work available it should be progressed at the fastest possible speed.

Tasks are not left partially complete to remove the temptation to multi-task.

Buffer Management

The amount each buffer is consumed relative to the project progress tells us how badly the delays are effecting our committed delivery date

If the variation throughout the project is uniform then the project should consume its project buffer at the rate tasks are completed.

Remaining Duration

Tasks are monitored on their remaining duration, not their percentage complete.

Resources report upon tasks in progress based on the number of days they estimate until the task will be complete.

Critical Chain

• Goes till the start of the project buffer

• Takes the resources contentions into account

Critical Path

• Goes from the start to the end

• More subjective towards milestones and deadlines

Crtical Chain Vs Path