Critical Chain Project Management to cope with uncertainty - Revision history

F.labrini: /* 2. Decide how to exploit the project’s constraints */

2015-09-28T22:16:11Z

2. Decide how to exploit the project’s constraints

← Older revision		Revision as of 22:16, 28 September 2015
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	===2. '''Decide how to exploit the project’s constraints'''===		===2. '''Decide how to exploit the project’s constraints'''===
	[[File:Estimate_distribution.PNG\|~~300~~\| thumb\| \|'''Figure6:''' Typical probability distribution for a task with uncertain distribution.]]		[[File:Estimate_distribution.PNG\|400\| thumb\| \|'''Figure6:''' Typical probability distribution for a task with uncertain distribution.]]
	This step can be translated in focusing on the activities of the Critical Chain to ensure efficient performance and no delays. In order to		This step can be translated in focusing on the activities of the Critical Chain to ensure efficient performance and no delays. In order to
	achieve this, the critical factors leading to delays should be identified.		achieve this, the critical factors leading to delays should be identified.

F.labrini: /* 2. Decide how to exploit the project’s constraints */

2015-09-28T22:15:57Z

2. Decide how to exploit the project’s constraints

← Older revision		Revision as of 22:15, 28 September 2015
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	===2. '''Decide how to exploit the project’s constraints'''===		===2. '''Decide how to exploit the project’s constraints'''===
	[[File:Estimate_distribution.PNG\| thumb\| \|'''Figure6:''' Typical probability distribution for a task with uncertain distribution.]]		[[File:Estimate_distribution.PNG\|300\| thumb\| \|'''Figure6:''' Typical probability distribution for a task with uncertain distribution.]]
	This step can be translated in focusing on the activities of the Critical Chain to ensure efficient performance and no delays. In order to		This step can be translated in focusing on the activities of the Critical Chain to ensure efficient performance and no delays. In order to
	achieve this, the critical factors leading to delays should be identified.		achieve this, the critical factors leading to delays should be identified.

F.labrini: /* 3. Subordinate everything else to the above decision */

2015-09-28T22:15:32Z

3. Subordinate everything else to the above decision

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	=== 3. '''Subordinate everything else to the above decision'''===		=== 3. '''Subordinate everything else to the above decision'''===
	[[File:Feeding_bufferOK.PNG\| thumb\| \|'''Figure7:'''Feeding buffer absorbs delay from feeding paths.]]		[[File:Feeding_bufferOK.PNG\|300px\| thumb\| \|'''Figure7:'''Feeding buffer absorbs delay from feeding paths.]]
	Applied to project, it means that all the non-critical activities must not affect or delay any activity on the critical tasks.		Applied to project, it means that all the non-critical activities must not affect or delay any activity on the critical tasks.

F.labrini: /* Planning */

2015-09-28T22:15:11Z

Planning

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	== Critical Chain Method ==		== Critical Chain Method ==
	===Planning===		===Planning===
	[[File:Project_buffer.PNG\|~~250px~~\| thumb\| \|'''Figure 8:''' Transfer of the task level safety to the project level.]]		[[File:Project_buffer.PNG\|400px\| thumb\| \|'''Figure 8:''' Transfer of the task level safety to the project level.]]
	The first step in order to apply CCPM consists in defining an initial schedule taking in consideration task duration estimates and dependencies. In other words, the initial schedule could be also defined as the “infinite capacity schedule” since the resource availability is not considered yet.		The first step in order to apply CCPM consists in defining an initial schedule taking in consideration task duration estimates and dependencies. In other words, the initial schedule could be also defined as the “infinite capacity schedule” since the resource availability is not considered yet.
	Thereafter, the schedule must be adjusted by positioning the tasks according to the capacity and availability of the resources. Because at least some of the resources have limited availability, the resulting schedule is likely to be longer than the schedule obtained with the basic Critical Path Method, as critical activities are delayed while waiting for the resources they require<ref name="Clook"> Raz T., Barnes R., Dvir D., (2003), ''A critical look at critical chain project management'', Project Management Journal, vol. 34</ref>. Then, the longest sequence of activities needed to complete the project taking into account both the interdependencies and resource capacity is defined as the Critical Chain.		Thereafter, the schedule must be adjusted by positioning the tasks according to the capacity and availability of the resources. Because at least some of the resources have limited availability, the resulting schedule is likely to be longer than the schedule obtained with the basic Critical Path Method, as critical activities are delayed while waiting for the resources they require<ref name="Clook"> Raz T., Barnes R., Dvir D., (2003), ''A critical look at critical chain project management'', Project Management Journal, vol. 34</ref>. Then, the longest sequence of activities needed to complete the project taking into account both the interdependencies and resource capacity is defined as the Critical Chain.

F.labrini: /* Control */

2015-09-28T22:14:56Z

Control

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	In CCPM, managing and tracking of project performance is based on buffer consumption: as the project progresses, the manager constantly check how much of the buffer is consumed to protect both the critical chain(FB) and the project due date(PB) from disruption.		In CCPM, managing and tracking of project performance is based on buffer consumption: as the project progresses, the manager constantly check how much of the buffer is consumed to protect both the critical chain(FB) and the project due date(PB) from disruption.
			[[File:Fever_chart.PNG\|400px\| thumb\| \|'''Figure 9:''' Fever chart measuring project performance.]]
	Buffers are supposed to act as transducers that provide vital operational measurement and a proactive warning mechanism. If activity variation consumes a buffer by a certain amount, a warning is raised<ref> Herroelen W., Leus R., (2001), ''On the mertis and pitfalls of critical chain scheduling'', Journal of Operations Management, vol. 19, pp. 559-577</ref>. Then, if the consumption rate is quite high so that the whole buffer could be consumed before the end of the project, corrective actions must be taken.		Buffers are supposed to act as transducers that provide vital operational measurement and a proactive warning mechanism. If activity variation consumes a buffer by a certain amount, a warning is raised<ref> Herroelen W., Leus R., (2001), ''On the mertis and pitfalls of critical chain scheduling'', Journal of Operations Management, vol. 19, pp. 559-577</ref>. Then, if the consumption rate is quite high so that the whole buffer could be consumed before the end of the project, corrective actions must be taken.
	~~[[File:Fever_chart.PNG\|250px\| thumb\| \|'''Figure 9:''' Fever chart measuring project performance.]]~~
	In order to have facilitate the monitoring and evaluation of the buffer consumption, buffers are usually divided in three third, respectively represented as Green zone, Yellow zone, Red zone.		In order to have facilitate the monitoring and evaluation of the buffer consumption, buffers are usually divided in three third, respectively represented as Green zone, Yellow zone, Red zone.
	The level of buffer consumption gives management visible signals:		The level of buffer consumption gives management visible signals:

F.labrini: /* Critical Chain Method */

2015-09-28T22:14:18Z

Critical Chain Method

← Older revision		Revision as of 22:14, 28 September 2015
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	== Critical Chain Method ==		== Critical Chain Method ==
	===Planning===		===Planning===
	[[File:Project_buffer.PNG\| thumb\| \|'''Figure 8:''' Transfer of the task level safety to the project level.]]		[[File:Project_buffer.PNG\|250px\| thumb\| \|'''Figure 8:''' Transfer of the task level safety to the project level.]]
	The first step in order to apply CCPM consists in defining an initial schedule taking in consideration task duration estimates and dependencies. In other words, the initial schedule could be also defined as the “infinite capacity schedule” since the resource availability is not considered yet.		The first step in order to apply CCPM consists in defining an initial schedule taking in consideration task duration estimates and dependencies. In other words, the initial schedule could be also defined as the “infinite capacity schedule” since the resource availability is not considered yet.
	Thereafter, the schedule must be adjusted by positioning the tasks according to the capacity and availability of the resources. Because at least some of the resources have limited availability, the resulting schedule is likely to be longer than the schedule obtained with the basic Critical Path Method, as critical activities are delayed while waiting for the resources they require<ref name="Clook"> Raz T., Barnes R., Dvir D., (2003), ''A critical look at critical chain project management'', Project Management Journal, vol. 34</ref>. Then, the longest sequence of activities needed to complete the project taking into account both the interdependencies and resource capacity is defined as the Critical Chain.		Thereafter, the schedule must be adjusted by positioning the tasks according to the capacity and availability of the resources. Because at least some of the resources have limited availability, the resulting schedule is likely to be longer than the schedule obtained with the basic Critical Path Method, as critical activities are delayed while waiting for the resources they require<ref name="Clook"> Raz T., Barnes R., Dvir D., (2003), ''A critical look at critical chain project management'', Project Management Journal, vol. 34</ref>. Then, the longest sequence of activities needed to complete the project taking into account both the interdependencies and resource capacity is defined as the Critical Chain.
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	In CCPM, managing and tracking of project performance is based on buffer consumption: as the project progresses, the manager constantly check how much of the buffer is consumed to protect both the critical chain(FB) and the project due date(PB) from disruption.		In CCPM, managing and tracking of project performance is based on buffer consumption: as the project progresses, the manager constantly check how much of the buffer is consumed to protect both the critical chain(FB) and the project due date(PB) from disruption.
	Buffers are supposed to act as transducers that provide vital operational measurement and a proactive warning mechanism. If activity variation consumes a buffer by a certain amount, a warning is raised<ref> Herroelen W., Leus R., (2001), ''On the mertis and pitfalls of critical chain scheduling'', Journal of Operations Management, vol. 19, pp. 559-577</ref>. Then, if the consumption rate is quite high so that the whole buffer could be consumed before the end of the project, corrective actions must be taken.		Buffers are supposed to act as transducers that provide vital operational measurement and a proactive warning mechanism. If activity variation consumes a buffer by a certain amount, a warning is raised<ref> Herroelen W., Leus R., (2001), ''On the mertis and pitfalls of critical chain scheduling'', Journal of Operations Management, vol. 19, pp. 559-577</ref>. Then, if the consumption rate is quite high so that the whole buffer could be consumed before the end of the project, corrective actions must be taken.
	[[File:Fever_chart.PNG\| thumb\| \|'''Figure 9:''' Fever chart measuring project performance.]]		[[File:Fever_chart.PNG\|250px\| thumb\| \|'''Figure 9:''' Fever chart measuring project performance.]]
	In order to have facilitate the monitoring and evaluation of the buffer consumption, buffers are usually divided in three third, respectively represented as Green zone, Yellow zone, Red zone.		In order to have facilitate the monitoring and evaluation of the buffer consumption, buffers are usually divided in three third, respectively represented as Green zone, Yellow zone, Red zone.
	The level of buffer consumption gives management visible signals:		The level of buffer consumption gives management visible signals:

F.labrini: /* 2. Decide how to exploit the project’s constraints */

2015-09-28T22:10:24Z

2. Decide how to exploit the project’s constraints

← Older revision		Revision as of 22:10, 28 September 2015
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	CCPM exploits the [https://en.wikipedia.org/wiki/Diversification_%28finance%29 Diversifcation]applied to Project Management by protecting the project from common cause uncertainty of the individual activities. It aggregates the safety times of task in the same path placing a buffers at the end of the path. Buffers appear as activities in the project plan, but have no work assigned to them.		CCPM exploits the [https://en.wikipedia.org/wiki/Diversification_%28finance%29 Diversifcation]applied to Project Management by protecting the project from common cause uncertainty of the individual activities. It aggregates the safety times of task in the same path placing a buffers at the end of the path. Buffers appear as activities in the project plan, but have no work assigned to them.
	The statistical law allows to protect a chain of tasks to the same level of probability with much less total contingency time than you can protect each individual task<ref name=~~’’CCPMPer~~"></ref>.		The statistical law allows to protect a chain of tasks to the same level of probability with much less total contingency time than you can protect each individual task<ref name="CCPMPer"></ref>.
	By aggregating the safety times, the whole estimated duration of a chain of tasks(project) is heavily reduced.		By aggregating the safety times, the whole estimated duration of a chain of tasks(project) is heavily reduced.

F.labrini: /* 2. Decide how to exploit the project’s constraints */

2015-09-28T22:08:23Z

2. Decide how to exploit the project’s constraints

← Older revision		Revision as of 22:08, 28 September 2015
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	''' Exploit statistical law of aggregation '''		''' Exploit statistical law of aggregation '''

	CCPM exploits the ~~statistical law of aggregation~~ by protecting the project from common cause uncertainty		CCPM exploits the [https://en.wikipedia.org/wiki/Diversification_%28finance%29 Diversifcation]applied to Project Management by protecting the project from common cause uncertainty of the individual activities. It aggregates the safety times of task in the same path placing a buffers at the end of the path. Buffers appear as activities in the project plan, but have no work assigned to them.
	of the individual activities in ~~an activity~~ path ~~with~~ buffers at the end of the path. Buffers appear as		The statistical law allows to protect a chain of tasks to the same level of probability with much less total contingency time than you can protect each individual task<ref name=’’CCPMPer"></ref>.
	activities in the project plan, but have no work assigned to them.		By aggregating the safety times, the whole estimated duration of a chain of tasks(project) is heavily reduced.
	The statistical law ~~of aggregation of variances~~ allows to protect a chain of tasks to the same level of probability with much less total contingency time than you can protect each individual task<ref name=~~"CCPMPer~~"></ref>.
	By aggregating the safety times, the whole estimated duration of a chain of tasks(project) is heavily reduced.

	There are three types of buffers:		There are three types of buffers:

F.labrini: /* Suggested resources */

2015-09-28T21:59:51Z

Suggested resources

F.labrini: /* Suggested resources */

2015-09-28T21:59:12Z

Suggested resources

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	- '''Woeppel M., (2005), ‘’Projects in Less Time:: A Synopsis of Critical Chain’’, Pinnacle Strategies'''		- '''Woeppel M., (2005), ‘’Projects in Less Time:: A Synopsis of Critical Chain’’, Pinnacle Strategies'''

	This book helps to understand the Goldratt’s book “Critical Chain”. It follows chapter by chapter the book “Critical Chain”, analyzing it. Then, at the end of each chapter there is a section where the author interprets the content of the chapter and gives his point of view.		This book helps to understand the Goldratt’s book “Critical Chain”. It follows chapter by chapter the book “Critical Chain”, analyzing it. Then, at the end of each chapter there is a section where the author interprets the content of the chapter and gives his point of view.

	- '''Larry P. Leach, (1997), Critical Chain Project Management Improves Project Performance, Advanced Projects Institute'''		- '''Larry P. Leach, (1997), Critical Chain Project Management Improves Project Performance, Advanced Projects Institute'''

	This article describes how the Theory of Constraints is applied to project management, the main features of the CCPM. In the final part resumes all the advantages of the method and list a series of company which successful implemented the CCPM.		This article describes how the Theory of Constraints is applied to project management, the main features of the CCPM. In the final part resumes all the advantages of the method and list a series of company which successful implemented the CCPM.

	- '''Lawrence P. Leach, 2005, Critical chain Project Management, 2ed, Artech House'''		- '''Lawrence P. Leach, 2005, Critical chain Project Management, 2ed, Artech House'''

	Critical Chain Project Management is a book which deeply explains the CCPM. It starts from the TOC, then explains CCPM applied to both single and multi project environments. In addition, it has a chapter about risk management.		Critical Chain Project Management is a book which deeply explains the CCPM. It starts from the TOC, then explains CCPM applied to both single and multi project environments. In addition, it has a chapter about risk management.

	- '''Raz T., Barnes R., Dvir D., (2003), A critical look at critical chain project management, Project Management Journal, vol. 34'''		- '''Raz T., Barnes R., Dvir D., (2003), A critical look at critical chain project management, Project Management Journal, vol. 34'''

	This article analyzes the principles of CCPM with a review of its key elements, followed by a critical analysis of the method. Then the conclusion provide an honest evaluation of the method		This article analyzes the principles of CCPM with a review of its key elements, followed by a critical analysis of the method. Then the conclusion provide an honest evaluation of the method

	- '''Kirpes C, Evaluating the Use of Scheduling Techniques: Critical Chain Project Management’’, Proceedings of the 2014 Industrial and Systems Engineering Research Conference'''		- '''Kirpes C, Evaluating the Use of Scheduling Techniques: Critical Chain Project Management’’, Proceedings of the 2014 Industrial and Systems Engineering Research Conference'''

	The article evaluate the cause that help CCPM to be able to provide successful result in terms of project on time, with the established budget and the proper quality. Furthermore, after having presented advantages and company which adopted the method, it questions why the method is not widely adopted.		The article evaluate the cause that help CCPM to be able to provide successful result in terms of project on time, with the established budget and the proper quality. Furthermore, after having presented advantages and company which adopted the method, it questions why the method is not widely adopted.

	- '''Marris P., (2011), La chaîne critique pour réduire le time to market et accroître la productivité, STP PHARMA PRATIQUES vol.21 N°5'''		- '''Marris P., (2011), La chaîne critique pour réduire le time to market et accroître la productivité, STP PHARMA PRATIQUES vol.21 N°5'''

	The article analyze the CCPM and its main characteristics, with special regards to Drug Development. Moreover, it presents the results of the application of CCPM in many pharmaceuticals companies.		The article analyze the CCPM and its main characteristics, with special regards to Drug Development. Moreover, it presents the results of the application of CCPM in many pharmaceuticals companies.

	= References =		= References =
	<References/>		<References/>

← Older revision		Revision as of 21:59, 28 September 2015
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	This book helps to understand the Goldratt’s book “Critical Chain”. It follows chapter by chapter the book “Critical Chain”, analyzing it. Then, at the end of each chapter there is a section where the author interprets the content of the chapter and gives his point of view.		This book helps to understand the Goldratt’s book “Critical Chain”. It follows chapter by chapter the book “Critical Chain”, analyzing it. Then, at the end of each chapter there is a section where the author interprets the content of the chapter and gives his point of view.

			- '''Larry P. Leach, (1997), Critical Chain Project Management Improves Project Performance, Advanced Projects Institute'''
	- Larry P. Leach, (1997), Critical Chain Project Management Improves Project Performance, Advanced Projects Institute
	This article describes how the Theory of Constraints is applied to project management, the main features of the CCPM. In the final part resumes all the advantages of the method and list a series of company which successful implemented the CCPM.		This article describes how the Theory of Constraints is applied to project management, the main features of the CCPM. In the final part resumes all the advantages of the method and list a series of company which successful implemented the CCPM.
	- Lawrence P. Leach, 2005, Critical chain Project Management, 2ed, Artech House		- '''Lawrence P. Leach, 2005, Critical chain Project Management, 2ed, Artech House'''
	Critical Chain Project Management is a book which deeply explains the CCPM. It starts from the TOC, then explains CCPM applied to both single and multi project environments. In addition, it has a chapter about risk management.		Critical Chain Project Management is a book which deeply explains the CCPM. It starts from the TOC, then explains CCPM applied to both single and multi project environments. In addition, it has a chapter about risk management.
	- Raz T., Barnes R., Dvir D., (2003), A critical look at critical chain project management, Project Management Journal, vol. 34		- '''Raz T., Barnes R., Dvir D., (2003), A critical look at critical chain project management, Project Management Journal, vol. 34'''
	This article analyzes the principles of CCPM with a review of its key elements, followed by a critical analysis of the method. Then the conclusion provide an honest evaluation of the method		This article analyzes the principles of CCPM with a review of its key elements, followed by a critical analysis of the method. Then the conclusion provide an honest evaluation of the method
	- Kirpes C, Evaluating the Use of Scheduling Techniques: Critical Chain Project Management’’, Proceedings of the 2014 Industrial and Systems Engineering Research Conference		- '''Kirpes C, Evaluating the Use of Scheduling Techniques: Critical Chain Project Management’’, Proceedings of the 2014 Industrial and Systems Engineering Research Conference'''
	The article evaluate the cause that help CCPM to be able to provide successful result in terms of project on time, with the established budget and the proper quality. Furthermore, after having presented advantages and company which adopted the method, it questions why the method is not widely adopted.		The article evaluate the cause that help CCPM to be able to provide successful result in terms of project on time, with the established budget and the proper quality. Furthermore, after having presented advantages and company which adopted the method, it questions why the method is not widely adopted.
	- Marris P., (2011), La chaîne critique pour réduire le time to market et accroître la productivité, STP PHARMA PRATIQUES vol.21 N°5		- '''Marris P., (2011), La chaîne critique pour réduire le time to market et accroître la productivité, STP PHARMA PRATIQUES vol.21 N°5'''
	The article analyze the CCPM and its main characteristics, with special regards to Drug Development. Moreover, it presents the results of the application of CCPM in many pharmaceuticals companies.		The article analyze the CCPM and its main characteristics, with special regards to Drug Development. Moreover, it presents the results of the application of CCPM in many pharmaceuticals companies.

	= References =		= References =
	<References/>		<References/>