Critical Chain Project Management to cope with uncertainty
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Since CCPM applies TOC’s concepts to project management, it is useful to understand the reasoning behind the theory. | Since CCPM applies TOC’s concepts to project management, it is useful to understand the reasoning behind the theory. | ||
| − | TOC is a systems-management philosophy, originally applied to production system, based on the principle that any system must have a constraint that limits its output. If there were no constraints, system output would either rise indefinitely or would fall to zero. Therefore, a constraint( or bottleneck) limits any system with a nonzero output<ref> Lawrence P. Leach, 2005, | + | TOC is a systems-management philosophy, originally applied to production system, based on the principle that any system must have a constraint that limits its output. If there were no constraints, system output would either rise indefinitely or would fall to zero. Therefore, a constraint( or bottleneck) limits any system with a nonzero output<ref> Lawrence P. Leach, 2005, ''Critical chain Project Management'', 2ed, Artech House, ISBN 1-58053-903-3 |
</ref>. | </ref>. | ||
| − | A system’s constraint may be physical (e.g. materials, machines, people, demand level) or managerial<ref> Rahman S., (1998), | + | A system’s constraint may be physical (e.g. materials, machines, people, demand level) or managerial<ref> Rahman S., (1998), ''Theory of Constraints: A review of the philosophy and its applications'', International Journal of Operations and Production Management. 18(4), pp. 336-355)</ref> which hinder the system to achieve better performance. |
=== TOC applied to Project Management === | === TOC applied to Project Management === | ||
Revision as of 20:47, 21 September 2015
Critical Chain Project Management(CCPM) is an approach for managing project, initially developed by M. Goldratt and based on the Theory of Constraints(TOC) applied to project management. It has adquired increased importance since it has been proved to be an effective method to ensure project completed on time, reduction of project completition time, and increased resource productivity. The basics principle are: avoiding multi-tasking, focus on the critical chain tasks, aggregate all safety time to handle uncertainty
This article illustrates the theory behind the method, its application, [a comparison with the critical path method], and its limitation.
Critical Chain Project Management(CCPM) is a method to plan, execute, manage, and control both single and multi projects, which emphasizes the effects of resource allocation and activity duration uncertainty. CCPM is an outgrowth of the Theory of Constraints(TOC) and was introduced in 1997 in Eliyahu M. Goldratt’s book, “Critical Chain”[1] in response to many projects resulted in larger duration, increased cost, and less derivable than expected.
The Critical Chain method mainly differs from the traditional methodology, deriving from Critical Path, in how uncertainty is handled.
Contents |
Theory of Constraints
Since CCPM applies TOC’s concepts to project management, it is useful to understand the reasoning behind the theory.
TOC is a systems-management philosophy, originally applied to production system, based on the principle that any system must have a constraint that limits its output. If there were no constraints, system output would either rise indefinitely or would fall to zero. Therefore, a constraint( or bottleneck) limits any system with a nonzero output[2]. A system’s constraint may be physical (e.g. materials, machines, people, demand level) or managerial[3] which hinder the system to achieve better performance.
TOC applied to Project Management
Undesired effects of traditional approaches
Critical Chain Method
Applications
Procedure
Limitation
References
- ↑ http://www.goldratt.co.uk/resources/critical_chain
- ↑ Lawrence P. Leach, 2005, Critical chain Project Management, 2ed, Artech House, ISBN 1-58053-903-3
- ↑ Rahman S., (1998), Theory of Constraints: A review of the philosophy and its applications, International Journal of Operations and Production Management. 18(4), pp. 336-355)
