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Critical Chain Concepts and Application

GROUP # 4 Sanjib Kumar Sahoo Sovesh Kumar Jena Umesh Kumar Singh Manoj Patnaik U208050 U208051 U208058 U408024

Suppose there are 4 activities in series each taking 10 hours. To keep it simple, each task has the same probability distribution of completion

What are the chances that all the tasks 1, 2, 3 and 4 will all get delayed? Very remote What are the chances that 1, 2, 3 and 4 will all happen early? Nearly impossible What are the chances that some tasks will get delayed and some will happen early and at the beginning of the project we do not have a clue which one will happen early and which one will happen late? Most Likely.

We Tend to Put Safety in Each Task Task Estimate Inflation

Putting Safety Everywhere Lengthens Project Time What happens to this safety?

Paradox ?
Whats happening to all that built in safety? If half of the tasks usually finish early and half of the tasks finish late, shouldnt the safety time even out? Lets examine what happens to all that safety.

The Student Syndrome


First fight for safety time. When you get it, you have enough time, so why hurry. When do we sit down to do it?
Self Imposed Overtime

Normal level of effort

Assigned

Due Date
6

Working to Due Dates Reduces Safety in Each Task We often plan work late knowing the time available and average time it takes Student Syndrome... Many times Murphy strikes and tasks take longer than average Many times scheduled due dates are missed
7

. . . Parkinson's Law strikes!

Work expands to fill (and often exceed) the time allowed

Ever heard of Multi-Tasking??


Too Many Balls In The Air At Once!

Lets take advantage of good statistics. If we finish early, we can move on to the next task. Dont waste Safety Allocated.
Before: 85% Estimate
1 2 3 4 5 6 7 8 9
Completion Distribution

10

Buffer

After: 50% Estimate


Completion Distribution

Due Date

1 2 3 4 5 6 7 8 9 10

Buffer

Due Date

Notice, we are only changing the schedule. Actual work distributions are the same. If we finish early, we can capture 10 the advantage.

Putting Critical Chain and Better Variability Protection Together


Project can be delayed in two ways:
Delay on Critical Chain
Project Buffer protects Critical Chain

Delay on a path that feeds the Critical Chain


Feeding Buffers protect these paths Same concept as Project Buffer
A1=3
B1=2

A2=7 B2=3
FB=1

B3=6

C1=4
Sep 5, 2002

C2=8

FB=5

D1=4

PB = 8

Southern AZ TOC Specialists

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Project Management

Traditional Project Network

A1 1 week B1 2 weeks C1 1 week

A2 2 weeks

A3 3 weeks B2 3 weeks D1 1 week D2 2 weeks


Resources

C2 1 week

C3 2 weeks

Project Management Sample Exam Answer Key


TOC Fundamentals

Traditional Project Network Critical Path


A1 1 week B1 2 weeks C1 1 week C2 1 week A2 2 weeks B2 3 weeks C3 2 weeks A3 3 weeks D1 1 week D2 2 weeks Total LT = 9 wks

Critical Chain Project Network No Buffers


A1 1 week B1 2 weeks A2 2 weeks B2 3 weeks C1 1 week C2 1 week C3 2 weeks A3 3 weeks D1 1 week Total LT = 10 wks D2 2 weeks

Critical Chain Project Network With Buffers


A1 A2 FB wk 1 week B1 1 week B2 1 weeks C3 1 weeks A3 1 weeks FB .75wk FB 1week
13
2004 TOCICO. All rights reserved.

Total LT = 7.5 wks D1 wk D2 1 week PB 2.5 weeks

C1 C2 wk wk

Part C TOC Logistical Applications


Critical Chain Project Management Rules
Traditional Project Network with Critical Path
A-14 D-20 B-10 C-16 E-20 C-16
LT = 60 days

Critical Chain Project Network 1. Resolve Resource contention 2. Identify Critical Chain 3. Insert Project Buffer (50% of 50% of Critical Chain LT) 4. Insert Feeding Buffers (50% of 50% of Feeding Path)
A-14 D-20
A-7 B-5
FB-6

B-10 D-20 C-16 C-8 E-10

C-16 E-20 C-16


LT = 72 days

PB-18

LT = 54 days

D-10

C-8

Network Diagram Upload in Concerto

Determining a Projects Status


Have you ever been 90% finished with a project only to find the last 10% took as much time as the first 90%? How do you currently measure a projects status?
% of tasks completed % of critical path completed

What do we need to know the status of a project?


When project is due How much progress has been made How much spare time remains in the project

Sep 5, 2002

Southern AZ TOC Specialists

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PROJECT REVIEW BUFFER PENETRATION

The Furnace slow heating job took more time than planned

Project Buffer consumption

The TOC Multi-Project Management Method (A System-Wide Approach To Projects)

1. Prioritize 2. Plan via Critical Chain Method 3. Prevent Overloads (Stagger The Projects) 4. Measure the buffers 5. Manage by the buffers

Difficulties.
Culture of the organization. Mindset / experience and approach of the Project Manager. System / frequency of review. Syndication of stakeholders / contractors. Updation of the progress of activities. Monitoring of Project Buffer penetration and re-allocation.

THANK YOU

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