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    Critical Chain Project Management

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    Karthik Balaji
    Critical chain project management (CCPM) is a method that emphasizes resources over task order and scheduling. It was developed by Eliyahu M. Goldratt as an alternative to critical path and PERT methods. CCPM aims to keep resources levelly loaded and flexible by quickly switching tasks. It is based on Theory of Constraints and has been shown to complete projects 10-50% faster or cheaper than traditional methods. Traditional methods typically finish only 44% of projects on time and on budget, while CCPM case studies report 95% on-time completion when applied correctly.

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    Critical Chain Project Management

    Uploaded by

    Karthik Balaji
    116 views1 page
    Critical chain project management (CCPM) is a method that emphasizes resources over task order and scheduling. It was developed by Eliyahu M. Goldratt as an alternative to critical path and PERT methods. CCPM aims to keep resources levelly loaded and flexible by quickly switching tasks. It is based on Theory of Constraints and has been shown to complete projects 10-50% faster or cheaper than traditional methods. Traditional methods typically finish only 44% of projects on time and on budget, while CCPM case studies report 95% on-time completion when applied correctly.

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    Critical Chain Project Management

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    Critical chain project management (CCPM) is a method that emphasizes resources over task order and scheduling. It was developed by Eliyahu M. Goldratt as an alternative to critical path and PERT methods. CCPM aims to keep resources levelly loaded and flexible by quickly switching tasks. It is based on Theory of Constraints and has been shown to complete projects 10-50% faster or cheaper than traditional methods. Traditional methods typically finish only 44% of projects on time and on budget, while CCPM case studies report 95% on-time completion when applied correctly.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    116 views1 page

    Critical Chain Project Management

    Uploaded by

    Karthik Balaji
    Critical chain project management (CCPM) is a method that emphasizes resources over task order and scheduling. It was developed by Eliyahu M. Goldratt as an alternative to critical path and PERT methods. CCPM aims to keep resources levelly loaded and flexible by quickly switching tasks. It is based on Theory of Constraints and has been shown to complete projects 10-50% faster or cheaper than traditional methods. Traditional methods typically finish only 44% of projects on time and on budget, while CCPM case studies report 95% on-time completion when applied correctly.

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    © All Rights Reserved
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    Critical chain project management (CCPM) is a method of planning and managing projects that

    puts the main emphasis on the resources required to execute project tasks. It was developed
    byEliyahu M. Goldratt. This is in contrast to the more traditional critical path and PERT methods,
    which emphasize task order and rigid scheduling. A Critical Chain project network will tend to keep
    the resources levelly loaded, but will require them to be flexible in their start times and to quickly
    switch between tasks and task chains to keep the whole project on schedule.

    Origins
    Critical chain project management is based on methods and algorithms derived from Theory of
    Constraints. The idea of CCPM was introduced in 1997 in Eliyahu M. Goldratt's book, Critical Chain.
    Application of CCPM has been credited with achieving projects 10% to 50% faster and/or cheaper
    than the traditional methods (i.e. CPM, PERT, Gantt, etc.) developed from 1910 to 1950s.
    From numerous studies by Standish Group and others as of 1998 for traditional project management
    methods, only 44% of projects typically finish on time, projects usually complete at 222% of the
    duration originally planned, 189% of the original budgeted cost, 70% of projects fall short of their
    planned scope (technical content delivered), and 30% are cancelled before completion.[citation needed]
    These traditional statistics are mostly avoided through CCPM. Typically, CCPM case studies report
    95% on-time and on-budget completion when CCPM is applied correctly. Mabin and Balderstone,[1] in
    their meta-analysis of seventy-eight published case studies, found that implementing Critical Chain
    resulted in mean reduction in lead-times of 69%, mean reduction of cycle-times of 66%, mean
    improvement in due date performance of 60%, mean reduction in inventory levels of 50% and mean
    increases in revenue / throughput of 68%.

    Details
    With traditional project management methods, 30% of the lost time and resources are typically
    consumed by wasteful techniques such as bad multi-tasking, student syndrome, In-box delays, and
    [2]
    lack of prioritization.
    In project management, the critical chain is the sequence of both precedence- and resourcedependent terminal elements that prevents a project from being completed in a shorter time, given
    finite resources. If resources are always available in unlimited quantities, then a project's critical chain
    is identical to its critical path.
    Critical chain is used as an alternative to critical path analysis. The main features that distinguish the
    critical chain from the critical path are:
    1. The use of (often implicit) resource dependencies. Implicit means that they are not included in
    the project network but have to be identified by looking at the resource requirements.
    2. Lack of search for an optimum solution. This means that a "good enough" solution is enough
    because:
    1. As far as is known, there is no analytical method of finding an absolute optimum
    (i.e. having the overall shortest critical chain).
    2. The inherent uncertainty in estimates is much greater than the difference between the
    optimum and near-optimum ("good enough" solutions).
    3. The identification and insertion of buffers:
    project buffer
    feeding buffers
    resource buffers. (Most of the time it is observed that companies are reluctant to give
    more resources)
    4. Monitoring project progress and health by monitoring the consumption rate of the buffers
    rather than individual task performance to schedule.

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