Critical Chain Project Management - Revision history

Tkokotas at 12:04, 20 December 2018

2018-12-20T12:04:20Z

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			''Developed by Marc Dose''


	<!-- Introduction -->		<!-- Introduction -->
	[[File:CCPM_figure1.png\|thumb\|alt=Example alt text\|Figure 1 - Comparison of conventional Schedule and CCPM Schedule.<ref name=CriticalLook> ''Raz, Tzvi, R. Barnes, and D. Dvir. "A Critical Look At Critical Chain Project Management.” Project Management Journal 34.4 (2004): 24-32. '' </ref>]]		[[File:CCPM_figure1.png\|thumb\|alt=Example alt text\|Figure 1 - Comparison of conventional Schedule and CCPM Schedule.<ref name=CriticalLook> ''Raz, Tzvi, R. Barnes, and D. Dvir. "A Critical Look At Critical Chain Project Management.” Project Management Journal 34.4 (2004): 24-32. '' </ref>]]

Tkokotas at 16:31, 27 November 2018

2018-11-27T16:31:32Z

← Older revision		Revision as of 16:31, 27 November 2018
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	<References/>		<References/>

	[[Category: Project Management]] [[Category: Uncertainty]] [[Category: Human Behaviour]]		[[Category: Project Management]] [[Category: Uncertainty]] [[Category: Human Behaviour]][[Category: Critical Chain Theory]]

Cruijff: /* Discussion */

2014-12-01T22:58:43Z

Discussion

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	The TOC terminology is presenting the constraining resource as the key element to tackle appropriately. However at any given point in time, ideally there could be a multitude of constraining resources which each leads to a different schedule. In addition at different points in time, it will be various resources exhibiting constraining behavior. This would mean conflicting schedule and an overall conflict with the steady state view. It is proposed that steady state isn’t realistic in most project environments, which means that the applicability of CCPM can be questioned.<ref name=CriticalLook/> This is also a factor when looking at the approach to multitasking. CCPM is trying to achieve improved performance by limiting each resource to one task. How plausible this is in modern organisations is still undecided and other studies have shown a positive effect of the matrix organisation with up to 3 tasks given to a single resource. There is value in alerting resources to important opportunities for early-start of tasks in the critical chain activities, but the benefits of CCPM are seen more as a supplement rather than a substitute for traditional methods.<ref name=CriticalLook/>		The TOC terminology is presenting the constraining resource as the key element to tackle appropriately. However at any given point in time, ideally there could be a multitude of constraining resources which each leads to a different schedule. In addition at different points in time, it will be various resources exhibiting constraining behavior. This would mean conflicting schedule and an overall conflict with the steady state view. It is proposed that steady state isn’t realistic in most project environments, which means that the applicability of CCPM can be questioned.<ref name=CriticalLook/> This is also a factor when looking at the approach to multitasking. CCPM is trying to achieve improved performance by limiting each resource to one task. How plausible this is in modern organisations is still undecided and other studies have shown a positive effect of the matrix organisation with up to 3 tasks given to a single resource. There is value in alerting resources to important opportunities for early-start of tasks in the critical chain activities, but the benefits of CCPM are seen more as a supplement rather than a substitute for traditional methods.<ref name=CriticalLook/>

	The criticism, published in the Project Management Journal<ref name=CriticalLook/>, entered the sphere along with other articles pointing out the same flaws/concerns about CCPM. Other articles focused on a balanced discussion of merits and pitfalls<ref name=Merits/>, while some focused on the proposed novelty of the methodology.<ref name=Paradigm’> ''Lechler, Thomas G., Boaz Ronen, and Edward A. Stohr. "Critical chain: a new project management paradigm or old wine in new bottles?." Engineering Management Journal 17.4 (2005): 45.’’ </ref> <ref name=Steyn1/> A direct critical review of the main critical article pointed out amongst other arguments, the statistics mentioned earlier from the "hallmark of TOC literature"<ref name=Hallmark/>.<ref name=Review> “http://public.wsu.edu/~engrmgmt/holt/em530/ButtonEM540ResearchPaper.pdf”. </ref> Others have found that CCPM offers discipline to project management role and is well fitting for individual projects, but fail to add substantial value to portfolios of projects.<ref name=Steyn1/>		The criticism, published in the Project Management Journal<ref name=CriticalLook/>, entered the sphere along with other articles pointing out the same flaws/concerns about CCPM. Other articles focused on a balanced discussion of merits and pitfalls<ref name=Merits/>, while some focused on the proposed novelty of the methodology.<ref name=Paradigm’> ''Lechler, Thomas G., Boaz Ronen, and Edward A. Stohr. "Critical chain: a new project management paradigm or old wine in new bottles?." Engineering Management Journal 17.4 (2005): 45.’’ </ref> <ref name=Steyn1/> A direct critical review of the main critical article pointed out amongst other arguments, the statistics mentioned earlier from the "hallmark of TOC literature"<ref name=Hallmark/>.<ref name=Review> “http://public.wsu.edu/~engrmgmt/holt/em530/ButtonEM540ResearchPaper.pdf”. </ref> Others have found that CCPM offers discipline to the project management role and is well fitting for individual projects, but fail to add substantial value to portfolios of projects.<ref name=Steyn1/>

	= References =		= References =

Cruijff: /* Discussion */

2014-12-01T22:58:19Z

Discussion

← Older revision		Revision as of 22:58, 1 December 2014
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	The TOC terminology is presenting the constraining resource as the key element to tackle appropriately. However at any given point in time, ideally there could be a multitude of constraining resources which each leads to a different schedule. In addition at different points in time, it will be various resources exhibiting constraining behavior. This would mean conflicting schedule and an overall conflict with the steady state view. It is proposed that steady state isn’t realistic in most project environments, which means that the applicability of CCPM can be questioned.<ref name=CriticalLook/> This is also a factor when looking at the approach to multitasking. CCPM is trying to achieve improved performance by limiting each resource to one task. How plausible this is in modern organisations is still undecided and other studies have shown a positive effect of the matrix organisation with up to 3 tasks given to a single resource. There is value in alerting resources to important opportunities for early-start of tasks in the critical chain activities, but the benefits of CCPM are seen more as a supplement rather than a substitute for traditional methods.<ref name=CriticalLook/>		The TOC terminology is presenting the constraining resource as the key element to tackle appropriately. However at any given point in time, ideally there could be a multitude of constraining resources which each leads to a different schedule. In addition at different points in time, it will be various resources exhibiting constraining behavior. This would mean conflicting schedule and an overall conflict with the steady state view. It is proposed that steady state isn’t realistic in most project environments, which means that the applicability of CCPM can be questioned.<ref name=CriticalLook/> This is also a factor when looking at the approach to multitasking. CCPM is trying to achieve improved performance by limiting each resource to one task. How plausible this is in modern organisations is still undecided and other studies have shown a positive effect of the matrix organisation with up to 3 tasks given to a single resource. There is value in alerting resources to important opportunities for early-start of tasks in the critical chain activities, but the benefits of CCPM are seen more as a supplement rather than a substitute for traditional methods.<ref name=CriticalLook/>

	The criticism, published in the Project Management Journal<ref name=CriticalLook/>, entered the sphere along with other articles pointing out the same flaws/concerns about CCPM. Other articles focused on a balanced discussion of merits and pitfalls<ref name=Merits/>, while some focused on the proposed novelty of the methodology.<ref name=Paradigm’> ''Lechler, Thomas G., Boaz Ronen, and Edward A. Stohr. "Critical chain: a new project management paradigm or old wine in new bottles?." Engineering Management Journal 17.4 (2005): 45.’’ </ref> <ref name=Steyn1/> A direct critical review of the main critical article pointed out amongst other arguments, the statistics mentioned earlier from the "hallmark of TOC literature"<ref name=Hallmark/>.<ref name=Review> “http://public.wsu.edu/~engrmgmt/holt/em530/ButtonEM540ResearchPaper.pdf”. </ref>		The criticism, published in the Project Management Journal<ref name=CriticalLook/>, entered the sphere along with other articles pointing out the same flaws/concerns about CCPM. Other articles focused on a balanced discussion of merits and pitfalls<ref name=Merits/>, while some focused on the proposed novelty of the methodology.<ref name=Paradigm’> ''Lechler, Thomas G., Boaz Ronen, and Edward A. Stohr. "Critical chain: a new project management paradigm or old wine in new bottles?." Engineering Management Journal 17.4 (2005): 45.’’ </ref> <ref name=Steyn1/> A direct critical review of the main critical article pointed out amongst other arguments, the statistics mentioned earlier from the "hallmark of TOC literature"<ref name=Hallmark/>.<ref name=Review> “http://public.wsu.edu/~engrmgmt/holt/em530/ButtonEM540ResearchPaper.pdf”. </ref> Others have found that CCPM offers discipline to project management role and is well fitting for individual projects, but fail to add substantial value to portfolios of projects.<ref name=Steyn1/>

	= References =		= References =

Cruijff: /* Theory of Constraints */

2014-12-01T22:52:41Z

Theory of Constraints

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	# Elevate the system's constraint(s).		# Elevate the system's constraint(s).
	# If, in the previous steps, a constraint has been broken, go back to step 1, and do not allow inertia to cause a system's constraint.		# If, in the previous steps, a constraint has been broken, go back to step 1, and do not allow inertia to cause a system's constraint.

			A constraint in the system is a part that constrains the overall objetive of that system. A typical example is bottlenecks commonly found in production systems.<ref name=GKRand/>

	The benefits of applying TOC varies from project to project. A review of the use in the industry show a clear positive effect for the companies involved. The results of 82 companies, ranging in size and industry, were aggregated and analysed. The results are shown in figure 2 and 3. Lead-Times, Cycle-Times and Inventory Levels were reduced by respectively 70%, 65% and 49%. Meanwhile were Due-Date-Performance, Revenue/Throughput and the Combined Financial Variable increased by respectively 44%, 63% and 76%.<ref name=Hallmark> ''Mabin, Victoria, J., and Steven J. Balderstone. The World of the Theory of Constraints: A Review of the International Literature. Boca Raton, FL: St. Lucie Press, 2000.'' </ref> The conclusion in this review was clear recommendation of TOC principles even applied to various degrees. Over 100 cases showed no failures or disappointing results.<ref name=Hallmark/>		The benefits of applying TOC varies from project to project. A review of the use in the industry show a clear positive effect for the companies involved. The results of 82 companies, ranging in size and industry, were aggregated and analysed. The results are shown in figure 2 and 3. Lead-Times, Cycle-Times and Inventory Levels were reduced by respectively 70%, 65% and 49%. Meanwhile were Due-Date-Performance, Revenue/Throughput and the Combined Financial Variable increased by respectively 44%, 63% and 76%.<ref name=Hallmark> ''Mabin, Victoria, J., and Steven J. Balderstone. The World of the Theory of Constraints: A Review of the International Literature. Boca Raton, FL: St. Lucie Press, 2000.'' </ref> The conclusion in this review was clear recommendation of TOC principles even applied to various degrees. Over 100 cases showed no failures or disappointing results.<ref name=Hallmark/>

Cruijff at 22:38, 1 December 2014

2014-12-01T22:38:06Z

← Older revision		Revision as of 22:38, 1 December 2014
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	== Monitoring ==		== Monitoring ==
	Proponents of Critical Chain Project Management typically deem monitoring as the greatest advantage of using the method. Tasks will inevitably vary in duration from the opening 50% estimate, which in turn removes the reason to force tasks to complete “on time”. Monitoring the buffers created during the planning stage will give a more useful result by utilizing chart or graphs that shows how much the buffer has been used as a function of the project completion. If buffer usage is little to none, the project must be on target. If buffer usage is exceeding the pace of the project, leaving insufficient amounts at the end, corrective actions must be taken to recover or stear the project on right course.<ref name=GKRand/> Similarly if buffer usage are surely done faster than project progress, ultimately resulting in late completion, relevant measures must be taken.<ref name=Goldratt/>		Proponents of Critical Chain Project Management typically deem monitoring as the greatest advantage of using the method. Tasks will inevitably vary in duration from the opening 50% estimate, which in turn removes the reason to force tasks to complete “on time”. Monitoring the buffers created during the planning stage will give a more useful result by utilizing chart or graphs that shows how much the buffer has been used as a function of the project completion. If buffer usage is little to none, the project must be on target. If buffer usage is exceeding the pace of the project, leaving insufficient amounts at the end, corrective actions must be taken to recover or stear the project on right course.<ref name=GKRand/> Similarly if buffer usage are surely done faster than project progress, ultimately resulting in late completion, relevant measures must be taken.<ref name=Goldratt/>

	~~= Industry experience =~~

	= Discussion =		= Discussion =

Cruijff: /* History */

2014-12-01T22:33:14Z

History

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	= History =		= History =
	CCPM was developed by Eliyahu M. Goldratt and introduced in 1997 in his book, Critical Chain.<ref name=Goldratt> ''Goldratt, Eliyahu M. Critical chain. Great Barrington, MA: North River Press, 1997.'' </ref> Critical Chain Project Management is facilitated through algorithms and methods based on the principles of the Theory of Constraints.<ref name=GKRand /> The theory is outlined in the following segment.		CCPM was developed by Eliyahu M. Goldratt and introduced in 1997 in his book, Critical Chain.<ref name=Goldratt> ''Goldratt, Eliyahu M. Critical chain. Great Barrington, MA: North River Press, 1997.'' </ref> Critical Chain Project Management is facilitated through algorithms and methods based on the principles of the Theory of Constraints.<ref name=GKRand /> The theory of Constraints is outlined in the following segment.

	Proponents of CCPM have attested that the benefits over PERT and/or CRM is that application of the Theory of Constraints focuses on how upper management are handling human behavior while envisioning the project network and in managing it afterwards, in constrast to dealing solely with specific technical aspects as the before mentioned methods.<ref name=GKRand/>		Proponents of CCPM have attested that the benefits over PERT and/or CRM is that application of the Theory of Constraints focuses on how upper management are handling human behavior while envisioning the project network and in managing it afterwards, in constrast to dealing solely with specific technical aspects as the before mentioned methods.<ref name=GKRand/>

Cruijff at 22:32, 1 December 2014

2014-12-01T22:32:36Z

← Older revision		Revision as of 22:32, 1 December 2014
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	<!-- Introduction -->		<!-- Introduction -->
	[[File:CCPM_figure1.png\|thumb\|alt=Example alt text\|Figure 1: Comparison of conventional Schedule and CCPM Schedule.<ref name=CriticalLook> ''Raz, Tzvi, R. Barnes, and D. Dvir. "A Critical Look At Critical Chain Project Management.” Project Management Journal 34.4 (2004): 24-32. '' </ref>]]		[[File:CCPM_figure1.png\|thumb\|alt=Example alt text\|Figure 1 - Comparison of conventional Schedule and CCPM Schedule.<ref name=CriticalLook> ''Raz, Tzvi, R. Barnes, and D. Dvir. "A Critical Look At Critical Chain Project Management.” Project Management Journal 34.4 (2004): 24-32. '' </ref>]]
	Critical Chain Project Management (CCPM) is a method of managing projects, where the attention is focused on the resources needed to execute various project tasks. In comparison to traditional project management methods that have its origins in critical path and PERT algorithms, where the emphasis is put on the order of tasks and strict schedules. <ref name=GKRand> ''Rand, Graham K. "Critical chain: the theory of constraints applied to project management." International Journal of Project Management 18.3 (2000): 173-177.'' </ref> The typical critical chain project network attempt to keep resources levelly loaded, but requires that they are flexible in start times. Additionally a quick switch between tasks and task chains is desirable to make sure the project is on schedule. A simplified comparison between traditional project management planning and Critical Chain Project Management is shown in figure 1.		Critical Chain Project Management (CCPM) is a method of managing projects, where the attention is focused on the resources needed to execute various project tasks. In comparison to traditional project management methods that have its origins in critical path and PERT algorithms, where the emphasis is put on the order of tasks and strict schedules. <ref name=GKRand> ''Rand, Graham K. "Critical chain: the theory of constraints applied to project management." International Journal of Project Management 18.3 (2000): 173-177.'' </ref> The typical critical chain project network attempt to keep resources levelly loaded, but requires that they are flexible in start times. Additionally a quick switch between tasks and task chains is desirable to make sure the project is on schedule. A simplified comparison between traditional project management planning and Critical Chain Project Management is shown in figure 1.

Cruijff: /* Theory of Constraints */

2014-12-01T22:28:31Z

Theory of Constraints

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	The benefits of applying TOC varies from project to project. A review of the use in the industry show a clear positive effect for the companies involved. The results of 82 companies, ranging in size and industry, were aggregated and analysed. The results are shown in figure 2 and 3. Lead-Times, Cycle-Times and Inventory Levels were reduced by respectively 70%, 65% and 49%. Meanwhile were Due-Date-Performance, Revenue/Throughput and the Combined Financial Variable increased by respectively 44%, 63% and 76%.<ref name=Hallmark> ''Mabin, Victoria, J., and Steven J. Balderstone. The World of the Theory of Constraints: A Review of the International Literature. Boca Raton, FL: St. Lucie Press, 2000.'' </ref> The conclusion in this review was clear recommendation of TOC principles even applied to various degrees. Over 100 cases showed no failures or disappointing results.<ref name=Hallmark/>		The benefits of applying TOC varies from project to project. A review of the use in the industry show a clear positive effect for the companies involved. The results of 82 companies, ranging in size and industry, were aggregated and analysed. The results are shown in figure 2 and 3. Lead-Times, Cycle-Times and Inventory Levels were reduced by respectively 70%, 65% and 49%. Meanwhile were Due-Date-Performance, Revenue/Throughput and the Combined Financial Variable increased by respectively 44%, 63% and 76%.<ref name=Hallmark> ''Mabin, Victoria, J., and Steven J. Balderstone. The World of the Theory of Constraints: A Review of the International Literature. Boca Raton, FL: St. Lucie Press, 2000.'' </ref> The conclusion in this review was clear recommendation of TOC principles even applied to various degrees. Over 100 cases showed no failures or disappointing results.<ref name=Hallmark/>

	[[File:CritChain_Industry_Increase.png\|300px\|~~left~~\|thumb\| Figure 2 - Reported changes in operational and financial performance, resulting from the application of TOC. (More is better) <ref name=Hallmark/>]] [[File:CritChain_Industry_Decrease.png\|300px\|~~right~~\|thumb\| Figure 3 - Reported changes in operational and financial performance, resulting from the application of TOC. (Less is better) <ref name=Hallmark/>]]		{\|style="margin: 0 auto;"
			\| [[File:CritChain_Industry_Increase.png\|300px\|upright\|thumb\| Figure 2 - Reported changes in operational and financial performance, resulting from the application of TOC. (More is better) <ref name=Hallmark/>]]
			\| [[File:CritChain_Industry_Decrease.png\|300px\|upright\|thumb\| Figure 3 - Reported changes in operational and financial performance, resulting from the application of TOC. (Less is better) <ref name=Hallmark/>]]
			\|}

	= Concept =		= Concept =

Cruijff: /* Theory of Constraints */

2014-12-01T22:26:20Z

Theory of Constraints

← Older revision		Revision as of 22:26, 1 December 2014
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	The benefits of applying TOC varies from project to project. A review of the use in the industry show a clear positive effect for the companies involved. The results of 82 companies, ranging in size and industry, were aggregated and analysed. The results are shown in figure 2 and 3. Lead-Times, Cycle-Times and Inventory Levels were reduced by respectively 70%, 65% and 49%. Meanwhile were Due-Date-Performance, Revenue/Throughput and the Combined Financial Variable increased by respectively 44%, 63% and 76%.<ref name=Hallmark> ''Mabin, Victoria, J., and Steven J. Balderstone. The World of the Theory of Constraints: A Review of the International Literature. Boca Raton, FL: St. Lucie Press, 2000.'' </ref> The conclusion in this review was clear recommendation of TOC principles even applied to various degrees. Over 100 cases showed no failures or disappointing results.<ref name=Hallmark/>		The benefits of applying TOC varies from project to project. A review of the use in the industry show a clear positive effect for the companies involved. The results of 82 companies, ranging in size and industry, were aggregated and analysed. The results are shown in figure 2 and 3. Lead-Times, Cycle-Times and Inventory Levels were reduced by respectively 70%, 65% and 49%. Meanwhile were Due-Date-Performance, Revenue/Throughput and the Combined Financial Variable increased by respectively 44%, 63% and 76%.<ref name=Hallmark> ''Mabin, Victoria, J., and Steven J. Balderstone. The World of the Theory of Constraints: A Review of the International Literature. Boca Raton, FL: St. Lucie Press, 2000.'' </ref> The conclusion in this review was clear recommendation of TOC principles even applied to various degrees. Over 100 cases showed no failures or disappointing results.<ref name=Hallmark/>

	[[File:CritChain_Industry_Increase.png\|300px\|~~center~~\|thumb\| Figure 2 - Reported changes in operational and financial performance, resulting from the application of TOC. (More is better) <ref name=Hallmark/>]] [[File:CritChain_Industry_Decrease.png\|300px\|~~center~~\|thumb\| Figure 3 - Reported changes in operational and financial performance, resulting from the application of TOC. (Less is better) <ref name=Hallmark/>]]		[[File:CritChain_Industry_Increase.png\|300px\|left\|thumb\| Figure 2 - Reported changes in operational and financial performance, resulting from the application of TOC. (More is better) <ref name=Hallmark/>]] [[File:CritChain_Industry_Decrease.png\|300px\|right\|thumb\| Figure 3 - Reported changes in operational and financial performance, resulting from the application of TOC. (Less is better) <ref name=Hallmark/>]]

	= Concept =		= Concept =