Critical Chain Project Management Third Edition For a listing of recent titles in the Artech House Project Management Library, turn to the back of this book Critical Chain Project Management Third Edition Lawrence P Leach Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the U.S Library of Congress British Library Cataloguing in Publication Data A catalog record for this book is available from the British Library ISBN-13: 978-1-60807-734-2 Cover design by Vicki Kane © 2014 Artech House All rights reserved Printed and bound in the United States of America No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher All terms mentioned in this book that are known to be trademarks or service marks have been appropriately capitalized Artech House cannot attest to the accuracy of this information Use of a term in this book should not be regarded as affecting the validity of any trademark or service mark 10 Contents Preface xiii Acknowledgments xvii CHAPTER 1 Quick Start 1.1 1.2 1.3 1.4 1.5 1.6 Decide What Your Job Is Use Appropriate Project Delivery Fundamentals Enable Individual Task Focus Develop and Manage to Project Schedules Control WIP at the Organizational Level Summary References 11 12 12 CHAPTER 2 Why Change How You Plan and Deliver Projects? 13 2.1 Project Success 2.2 Defining the Problem 2.2.1 How Good Is the Current Project System? 2.2.2 Some Companies Make a Lot of Money Running Projects 2.3 Root Causes of the Problem 2.3.1 The TOC Method 2.3.2 Project Management Literature 2.3.3 System Approach 2.4 The Human Behavior Problem as Root Cause: Multitasking 2.4.1 Multitasking 2.4.2 Multitasking Effects 2.5 Right Solution 2.5.1 Do More Better 2.5.2 Variation and Uncertainty 2.6 Right Execution 2.7 Success with Critical Chain 2.8 Three New Rules 2.9 Summary References 17 17 17 22 23 23 24 25 26 27 30 36 37 38 41 42 44 45 46 v vi Contents CHAPTER 3 The Synthesis of TOC and PMBOK, Considering Lean and Six Sigma 49 3.1 Improvement Perspectives 3.2 TOC Perspective 3.3 Project Management Body of Knowledge (PMBOK) 3.3.1 Project Integration Management 3.3.2 Project Scope Management 3.3.3 Project Time Management 3.3.4 Project Risk Management 3.3.5 Other PMBOK Guide Knowledge Areas 3.3.6 Rolling-Wave Planning 3.4 Lean 3.5 Agile or Light Project Management 3.6 Kanban 3.7 Quality Focused Improvement 3.8 System of Profound Knowledge 3.8.1 Appreciation for a System 3.8.2 Understanding Variation and Uncertainty 3.8.3 Psychology 3.8.4 Theory of Knowledge 3.9 Theory of Constraints 3.9.1 The Throughput World 3.9.2 The Production Solution 3.9.3 Five Focusing Steps 3.9.4 The Thinking Process 3.10 Change Management 3.11 Synthesis 3.12 Summary References 50 51 51 52 52 52 53 53 53 53 56 58 61 62 63 67 70 73 75 77 79 84 86 88 89 89 90 CHAPTER 4 The Direction of the Solution 4.1 Deciding What to Change 4.1.1 Defining the Project Management System 4.1.2 Project Undesired Effects 4.2 Identify the Constraint 4.3 Exploit the Constraint 4.3.1 Projects Durations Become Longer 4.3.2 Projects Frequently Overrun Schedule 4.3.3 Multitasking 4.3.4 The Core Conflict Leads to Undesired Effects 4.4 Towards Desired Effects 4.4.1 Resolving the Core Conflict 4.5 Solution Feasibility (Evidence) 4.6 Multiproject System 93 93 93 94 95 99 99 101 106 107 109 109 111 113 Contents 4.7 Execution 4.8 Determine What to Change to 4.9 Summary References vii 115 115 115 116 CHAPTER 5 The Complete Single-Project Solution 117 5.1 From System Requirements to System Design 5.1.1 Requirements Matrix 5.1.2 Summary of Single-Project Critical Chain 5.2 Developing the Critical Chain Solution 5.2.1 Identifying the Project Constraint 5.2.2 Exploiting the Constraint 5.2.3 Subordinating Merging Paths 5.2.4 Task Performance 5.2.5 Early Start (Just-in-Case) Versus Late Finish (Just-in-Time) 5.3 Exploiting the Schedule Using Buffer Management 5.4 Features (More or Less) from PMBOK 5.4.1 Project Charter 5.4.2 Project Work Plan 5.4.3 Work Breakdown Structure 5.4.4 Responsibility Assignment 5.4.5 Project Quality Measurement and Control Process 5.4.6 Project Change Control 5.4.7 Project Risk Management 5.4.8 Project Kanban 5.5 Summary References 117 117 120 121 121 125 130 131 132 134 136 137 138 138 138 139 139 140 140 141 142 CHAPTER 6 Starting a New Project 143 6.1 6.2 6.3 6.4 143 143 144 145 145 146 149 149 150 151 153 153 154 159 Project-Initiation Process The Project Charter Stakeholder Endorsement The Work Breakdown Structure (WBS) 6.4.1 TOC Approach to Project Schedule Network Building 6.4.2 The Conventional WBS 6.4.3 Project Organization 6.5 Responsibility Assignment 6.6 Milestone Sequencing 6.7 Work Packages 6.7.1 What Comprises a Project? 6.7.2 Assumptions 6.7.3 Project Schedule Network 6.7.4 Activity Duration Estimate viii Contents 6.7.5 Uncertainty Revisited 6.8 Need for Cost Buffer 6.9 Basis for Cost Estimates 6.10 The Project Work Plan 6.11 Change Control 6.12 Project Closure 6.13 Summary References 161 163 164 164 165 166 166 166 CHAPTER 7 Developing the (Single-Project) Critical Chain Schedule 169 7.1 Process 7.2 Good Enough 7.3 Examples and Practice 7.3.1 Small Example 7.3.2 Large Example 7.3.3 Large Exercise 7.4 Buffer and Threshold Sizing 7.4.1 Statistical Background 7.4.2 Project and Feeding Buffer Size 7.4.3 Buffer Trigger Points 7.5 Cost Buffer Sizing 7.6 Methods to Create the Schedule 7.6.1 Manual 7.6.2 Critical Path Software 7.6.3 Critical Chain Software 7.7 External Constraints 7.8 Reducing Scheduled Time (Dictated End Dates) 7.8.1 Acceleration without Cost Impact (Exploit and Subordinate to the Constraint) 7.8.2 Acceleration with Increased Cost (Elevate the Constraint) 7.9 Preparing for Project Kanban 7.10 Frequently Asked Scheduling Questions 7.11 Summary Reference 169 171 172 172 175 179 180 180 182 184 185 187 187 188 190 190 191 191 192 192 192 195 196 CHAPTER 8 Developing the Multiproject Critical Chain Plan 197 8.1 The Multiproject Constraint 8.2 Improving Throughput at the Multiproject Constraint 8.3 Multiproject Critical Chain Features 8.3.1 Project Priority 8.3.2 Select the Drum Resource 8.3.3 Nonhuman and Virtual Resources 8.3.4 The Drum Schedule (Pipelining the Projects) 8.3.5 The Capacity-Constraint Buffer 197 201 202 202 202 204 204 205 Contents ix 8.3.6 Nonworking Time 8.3.7 The Drum Buffer 8.3.8 Project Schedules 8.4 Another View of a Multiproject Constraint 8.5 Introducing New Projects 8.6 Example 8.6.1 Pipeline 8.6.2 Select the Drum Resource 8.6.3 Decide on the Capacity Constraint Buffer 8.6.4 Pipeline to the Drum Resource 8.7 Practical Pipelining Methods 8.8 Frequently Asked Multiproject Questions 8.9 Summary References 208 209 209 209 210 211 213 214 215 215 216 217 217 218 CHAPTER 9 Execution 219 9.1 Project Roles 9.1.1 Task Manager Role 9.1.2 Project Manager Role 9.1.3 Resource Manager Role 9.1.4 Master Scheduler Role 9.1.5 Senior Management Role 9.2 Schedule Buffer Management 9.2.1 Project Meetings 9.2.2 Task Manager Meetings 9.2.3 Senior Manager Project Meetings 9.2.4 The Buffer Report 9.3 Cost Buffer 9.3.1 Cost Buffer Status 9.3.2 Earned-Value Basics 9.3.3 Cost-Buffer Penetration 9.3.4 The Problem 9.3.5 Labor Costs 9.3.6 Material Costs 9.3.7 Peaceful Coexistence of Buffer Reporting and Earned Value 9.3.8 The Schedule Variance 9.4 Responding to the Buffer Signals 9.4.1 Schedule Buffer Exceeds Yellow Threshold 9.4.2 Cost Buffer Exceeds Yellow Threshold 9.4.3 Schedule Buffer Exceeds Red Threshold 9.4.4 Cost Buffer Exceeds Red Threshold 9.4.5 Schedule or Cost Buffer Exceeds 100% 9.5 Quality Measurement 9.5.1 Basic Quality Measurements 220 220 224 227 229 230 231 231 233 233 233 235 236 236 237 237 238 238 239 240 241 241 241 241 242 242 242 243 312 ���������������� List of Acronyms EV Earned value F&OR Functional and operational requirements FRT Future reality tree NBR Negative branch OPM3 Organizational Project Management Maturity Model PDCA Plan Do Check Act PERT Program Evaluation and Review Technique PMBOK Project Management Body of Knowledge PMI Project Management Institute PMP Project Management Professional PRT Prerequisite tree PV Planned value R&D Research and development RDU Remaining duration RUP Rational Unified Process SEI Software Engineering Institute SIPOC Supplier>Input>Process>Output>Customer SOW Statement of Work SSQ Square root of the sum of the squares SV Schedule variance TOC Theory of Constraints TQM Total quality management TRT Transition tree UDEs Undesired effects WBS Work breakdown structure About the Author Lawrence (Larry) Leach is the principal of Advanced Projects, Inc (API), applying business tools to help clients improve their project delivery system Prior to founding API, he was vice president of several Fortune 500 companies, managing projects up to one billion dollars (US) Leach has an M.S in business management from the University of Idaho and in mechanical engineering from the University of Connecticut Larry is certified by the Project Management Institute as a project management professional (PMP) He has authored papers and books, including Critical Chain Project Management, Second Edition; Lean Project Management: Eight Principles for Success; and Lean Project Leadership, as well as chapters in the Wiley Guide to Project Management and Project Portfolio Management He has taught general management and project management classes for the MBA programs of the University of Phoenix and University of Idaho, for the Project Management Institute’s seminars, and for many private companies 313 Index A Accuracy defined, 162 estimation of, 40 improving of single point estimate, 127 Activities, duration estimate, 159–60 Actual cost, 236 Aggregation, 128–29 Agile methods, 56 Anchoring, 105, 260 Anecdotal data, 19 Assumptions categorizing, 6–7 project, 258–59 project failure list, 25 updating, in work package, 153–54 Availability error, 260 project, 136, 248–49 recovery plan format, 232 reporting, 226 schedule, 241, 242 signals, responding to, 241–42 threshold settings, 185 trigger points, 184–85 updating, 136 Buffer sizing defined, 180 feeding, 182–84 guidelines, 182–84 project, 182–84 statistical background, 180–82 trigger points, 184–85 Business risk, 254 Buy-In: Saving Your Good Idea from Getting Shot Down (Kotter), 292 B C Backwards planning, 145–46 Baldrige criteria, 61–62 Batching, 191 Beliefs, 72 Buffer management schedule, 231–35 schedule exploitation with, 134–36 Buffer reports, 233–35 Buffers adding, 173 capacity constraint (CCB), 199, 205–8, 215 in CCPM, 44 cost, 163–64, 185–86, 235–41, 242 drum, 209 feeding, 131, 178, 193 in implementation, 267–81 milestone, 139 penetration, 135, 226 Capacity constraint buffers (CCBs) CCPM addition of, 199 deciding on, 215 function of, 205 in multiproject Critical Chain, 205–8 Cause-and-effect diagrams, 243 CCPM See Critical Chain Project Management Change control actions, 247–48 defined, 139 functions of, 165 Change management, 88 Checklists, 259 Checksheets, 243 Common-cause variation defined, 69 exploiting statistical laws governing, 128–29 PERT and, 125 Confirmation bias, 261 315 316 Consolidation, 259 Constraints broken, 86 elevating, 86 exploiting, 85, 99–109 exploiting, in developing the Critical Chain solution, 125 external, 190 identifying, 84, 95–99 identifying, in developing the Critical Chain solution, 121–24 multiproject, 197–202 resource, 123, 124 task logic, 124 Contingency, concentrating at end of the path, 110–11 Core conflict concentrating contingency and, 110–11 defined, 107 resolving, 109–11 as underlying conflicts, 108 undesired effects (UDEs) and, 107–9 Cost buffer earned-value basics, 236–37 elements of, 235–36 exceeds 100%, 242 exceeds red threshold, 242 exceeds yellow threshold, 241 execution, 235–41 fever chart, 239 for fluctuations, 186 labor costs, 238 material costs, 238–39 need for, 163–64 penetration, 235, 237 penetration, reduction of, 242 problem, 237–38 in project budget, 238 reporting and earned value, 239–40 schedule variance, 240–41 sizing, 185–86 status, 236 Cost estimates, 164 Cost risks, 254 Cost world, 77, 78, 79 Index Critical chain defined, 10, 122 identifying, 177 as longest path, 98 PMBOK Guide and, 14 Critical Chain (Goldratt), 36, 40, 44, 45, 82, 103 Critical Chain paradigm, 162 Critical Chain process buffers, 112 change control, 23 defined, 10 relay-racer task, 157 schedules, 10 Critical Chain Project Management (CCPM) buffering, 44 common-cause variation, 125–26 evolution of, xiii focus, 44 implementation, 265–94 as industry standard, xiii new rules, 44–45 opportunities, 72 pipelining, 44–45 potential delays and, 130 solutions to problems and opportunities, success with, 42–44 Critical Chain schedule buffer and threshold sizing, 180–85 cost buffer sizing, 185–86 creation methods, 187–90 Critical Chain software creation, 190 Critical Path software creation, 188–90 developing, 169–96 diagnosing unexpected results, 170 examples and practice, 172–80 external constraints, 190 frequently asked questions, 192–95 good enough, 171–72 large example, 175–80 manual creation, 187 in multiproject Critical Chain, 211–12 process, 169–71 project Kanban preparation, 192 scheduled time reduction, 191–92 Index small example, 172–75 to start of chains and project completion, 171 summary, 195–96 Critical Chain software schedule creation with, 190 task placement, 194–95 Critical Chain solution constraint exploitation, 125–30 developing, 121–34 early start versus late start, 132–34 key features of, 120 project constraint identification, 121–24 subordinating merging paths, 130–31 summary of, 120–21 task performance, 131–32 Critical Path Method (CPM) benefits of, 42–43 Critical Chain schedules versus, 10 development of, 95 project scheduling, 122 resources and, 98 schedules, 10, 16 theory use, 21 Critical path schedules illustrated, 95 resource-leveled, 97 Critical Path software, 188–90 Current project system anecdotal data and, 19 project types and, 18–19 quantitative data and, 20–22 questions to ask, 17–18 Current reality tree (CRT), 87 Customers, behavior changes, 275 Cycle time, work in progress (WIP) relationship, 114 D Data-driven performance, elevating, 131–32 Deming, W Edwards, 62–70, 126 Desired effects (UEs) core conflict resolution and, 109–11 defined, 87 towards, 109–11 Destruction of a system, 67 317 Dictated end dates, 191–92 Do-more-better approach, 37–38 Drum buffer, 209 Drum-Buffer-Rope system, 79–80, 81, 231 Drum resources multiple, 217 in multiproject Critical Chain, 202–4 pipelining to, 215–16 selecting, 214–15 selection purpose, 203 three-project demand, 205 Drum schedule, 204–5 Dynamic systems, 66 E Early start schedules, 132–34, 172 Earned value basics, 236–37 buffer reporting and, 239–40 defined, 236 Effective measures, 219 Endorsement, 269–71 Environment, 72 Environmental risks, 254 Evaporating cloud, 101 Execution, 219–50 actions, 219 buffer signal response, 241–42 change control actions, 247–48 cost buffer, 235–41 in direction of the solution, 115 effective measures, 219 frequently asked questions, 248–49 Kanban measurement, 246–47 milestones, 247 Project Manager role in, 225 project roles and, 220–31 quality measurement, 242–46 Resource Manager role in, 228 right, 41 schedule buffer management, 231–35 summary, 250 Task Manager role in, 223 Exploiting constraints, 99–109 core conflict and, 107–9 defined, 85 318 Exploiting constraints (continued) in developing the Critical Chain solution, 125–30 multitasking and, 106–7 project duration and, 99–101 project task estimates, 126–28 resource availability, 129–30 schedule overruns and, 101–5 statistical laws governing common-cause variation, 128–29 External constraints, in Critical Chain schedule development, 190 F Feeding buffers adding, 193 fluctuations and, 131 inserting, 178 sizing, 182–84 Floating milestones, 247 Focus in CCPM, 44 with Kanban, 266–67 task, 7–8, 10 throughput world, 78, 79 Focusing steps broken constraints, 86 defined, 84 illustrated, 85 subordination, 86 system constraints elevation, 86 system constraints exploitation, 85 system constraints identification, 84 See also Theory of Constraints (TOC) Frequently asked questions measurement and control, 248–49 multiproject, 217 schedules, 192–95 Functional and Operational Requirements (F&OR), 52 Future reality tree (FRT), 87 G Gantt charts, 122–23, 176 Glossary, 297–310 Index The Goal (Goldratt), 15, 77, 79, 80, 83, 106–7, 109 Goldratt, Eliyahu, 15, 36, 40–45, 75–83, 103, 106–9, 134 Good enough, 171–72 Granularity, task, 158–59 Guide to the Project Management Body of Knowledge See PMBOK Guide H The Happiness Hypothesis (Haidt), 288 The Haystack Syndrome (Goldratt), 134 Health and safety risks, 254 Heath Brothers’ model, 287–88 Heijunka, 55 High-impact consequences, 262 High risk probability, 261 Histograms, 244 Human behavior problem, 26–36 Human performance peak, 35 Human resource function, 84 I Identifying constraints, 95–99 defined, 84 in developing the Critical Chain solution, 121–24 resource leveling and, 97–98 in single-project solution, 134–36 See also Constraints Implementation beginning with end in mind (vision), 271–73 buffering (Rule 2), 267–81 change to CCPM, 265–94 Charter, 271, 272–73 endorsing, 269–71 example objections, 291–92 example risk management plan, 278 focus with Kanban (Rule 1), 266–67 measure-and-control, 280–81 ongoing improvement, 292–93 organization change theory, 282–91 overview of, 265–66 phase 1, 279 phase 2, 279 phase 3, 280 Index pilot projects and, 291 pipelining (Rule 3), 281–82 process flowchart, 267 progress stall, 281 Project Plan, 273–77 risks, preventing/mitigating, 277 road map, 268 summary, 293–94 Improvement, ongoing, 292–93 Interruption, multitasking and, 36 J Job roles, K Kanban board, 140–41 board display, 59–60 defined, 58 development of, 58 example card, 59 focusing with, 266–67 group boards, measurements, 246–47 personal board illustration, 8, preparing for, 192 recommended form, rules of, 8, 61 in single-project solution, 140–41 as solution, 58 teams, 60 tools, 140 as visual control tool, 59–60 Knowledge, theory of, 73–74 Kotter’s model defined, 283 illustrated, 283 steps, 283–86 L Labor costs, 238 Late finish schedules, 132–34 Law of aggregation, 128–29 Laws of project management, 20 Lean defined, 53 319 in focus to eliminate waste, 54 muda waste types, 55 mura waste reduction, 55 tools, 55–56 LeanKit Kanban, 140 Lean Sigma, 54 Learning, multitasking and, 34 Level of effort (LOE) work, 155 Leverage, system, 66 Little’s law, 114, 207 Low-impact consequences, 262 Low risk probability, 261 M The Machine That Changed the World (Womack, Jones, and Roos), 54 Management Oversight or Risk Tree (MORT), 255 Managing Change in Organizations: A Practice Guide, 282–83 Master Scheduler role, 229 Material costs, 238–39 Measure-and-control implementation, 280–81 Meetings project, 231–32 Senior Management project, 233 Task Manager, 233 Merging paths, subordinating, 130–31 Microsoft Project, 8, 150, 176 Milestones buffers, 139 fixed-date, 247 floating, 247 intermediate, 194 performance, 128 Milestone sequencing defined, 138 in starting new projects, 150–51 Mindfulness, 28–29 Mistakes, multitasking, 33 Moderate-impact consequences, 262 Moderate risk probability, 261 Muda waste, 54, 55 Multiproject constraint, 197–201 another view of, 209–10 throughput improvement at, 201–2 320 Multiproject Critical Chain plan capacity-constraint buffer, 205–8 drum buffer, 209 drum resource selection, 202–4 drum schedule, 204–5 example, 211–16 features, 202–9 frequently asked questions, 217 new project introduction, 210–11 nonhuman and virtual resources, 204 nonworking time, 208–9 pipelining methods, 216 project duration and, 200 project priority, 202 project schedules, 209 summary, 217–18 Multiproject system, 113–15 Multitasking, 27–30 accomplishments and, 32–33 addictive drugs behaviors and, 30 adverse effects, 28 in delaying projects, 106 effects in organizations, 36 in exploiting constraints, 106–7 handling, 192 interruption and, 36 learning and, 34 mindfulness and, 28–29 mistakes, 33 problems related to, 2–3 research-proven effects, 30–36 Stanford study, 29 stress and, 34, 35 task completion time and, 31–32 task performance and, 132 task types and, 29 time wasting and, 32 Mura waste, 54, 55 Muri waste, 54 N National Construction Estimator, 128, 162 New projects change control, 165 cost buffer, 163–64 cost estimates, 164 Index initiation process, 143, 144 milestone sequencing, 150–51 multiproject, introducing, 210–11 project charter, 143–44 project closure, 166 project work plan, 164–65 responsibility assignment, 149–50 stakeholder endorsement, 144–45 starting, 143–66 summary, 166 work breakdown structures (WBSs), 145–49 work packages, 151–63 Newton’s laws, 74 Nonproject work, Nonworking time, 208–9 O Objections, CCPM implementation, 291–92 Ongoing improvement, 292–93 Operant conditioning, 70 Organization change theory Heath Brothers’ model, 287–88 Kotter’s model, 283–86 overview of, 282–83 Prosci’s model, 286–87 resistance to change and, 289–91 system appreciation and, 288–89 time requirement and, 266 P Pareto charts, 243 Parkinson’s law, 102–4 Pilot projects, 291 Pipelines, 199, 213 Pipelining with capacity buffers, 207 in CCPM, 44 to drum resource, 215–16 example, 211–16 to maintain low WIP, 281–82 performing, 211 practical methods, 216 Planned value, 236 Plan scrutiny, 259 PMBOK Guide areas, 51 Index change control, 58 critical chain and, 14 Critical Chain scheduling, critical path definition, 124 defined, features from, 136–41 knowledge areas, 52–53 perspectives, 49–50 probabilistic scheduling approaches, 121–22 processes, 52 project definition, 14 project integration management, 52 project risk management, 53 project scope management, 52 project time management, 52–53 rolling-wave planning, 53 stakeholder endorsement, 144–45 successful project companies and, 22 uncertainty and, 15 PMI Practice Standard for WBSs, 5, 146–47 Practice Guide to Scheduling, 14 Practice Standard for Project Risk Management, 70, 254 Practice Standard for Scheduling, 154 Priority list adherence to, 217 changing, 249 high priority tasks, 249 Probabilistic scheduling approaches, 121–22 Problem current project system and, 17–22 defining, 17–23 human behavior, 26–36 root causes, 23–26 Process behavior charts analysis, 246 defined, 244 early warning and, 246 illustrated, 245 Process management, 243 Production solution, 79–84 Profitability with No Boundaries, 269 Program Evaluation and Review Technique (PERT) common-cause variation and, 125 development of, 51 321 diagrams, 125 resources and, 98 variation and, 15 Program risk, 254 Project buffers cutting, 248–49 monitoring, 225–26 sizing, 182–84 Project charter, 137, 143–44 Project closure, 166 Project delivery fundamentals, 5–7 Project failure lists, 24–25 Project-initiation process, 143, 144 Project integration management, 52 Project-level operational decisions, 225 Project management Agile, 56–58 anecdotal data, 19 company success, 22 immutable laws of, 20 literature, 24–25 PMI/ISO model, 56 quantitative data, 20–22 solutions to problems and opportunities, 36–41 Project Management Institute (PMI), 1, 198, 236 Project Management Offices (PMOs), 149 Project Management Professionals (PMPs), 49, 97, 122 Project management system block box view, 94 defining, 93–94 Project Managers behavior changes, 274 buffer utilization, 226 prediction of, 68 project buffer monitoring, 225–26 in project execution, 225 resource availability and, 129 responsibilities, 224–25 role, 224–27 successful, 22 See also Project roles Project meetings, 231–32 Project network, 139 322 Project organization, 149 Project Plans content scaling, creating, 273–77 defined, 2, 164 elements of, 165 process clarification, small and large projects, use of, 164–65 Project priority, 202 Project requirements, table of, 118–19 Project-risk management See Risk management Project roles Master Scheduler, 229 Project Manager, 224 Resource Manager, 227–29 Senior Management, 230–31 Task Manager, 220–24 Projects change control, 139 control process, 139 defined, 14 duration, 99–101 elements of, 153 first-of-a-kind, 161 goal of, 220 money made by running, 22–23 new see new projects one-of-a-kind, 161 pilot, 291 precursor conditions, 21–22 quality measurement, 139 risk management, 140 schedule overruns, 101–5 staggering, 203 types of, 18–19 uncertainty, 15 value stream, 4, Project schedule network defined, 154 granularity, 158–59 importance of, 154 logic, 155–56 resource loading, 157–58 task elements, 154–55 Project schedules adding tasks to, 40 Index developing, 8–11 factors affecting, 27 function of, managing, 8–11 uncertainty and, 39 using during execution, 11 workflow, Project scope control method, management, 52 organization with WBS, 5–6 Project success conditions for, 17 influences external to project team, 26 influences internal to project team, 25–26 Project teams project buffer monitoring, 136 success and, 25–26 working together, Project time management, 52–53 Project work plans See Project Plans Prosci’s model, 286–87 Psychology availability bias, 72–73 behavior, 70–71 beliefs, 72 environment, 72 operant conditioning, 70 rewards, 71–72 Q Quality measurement basic, 243–44 CCPM, 139 overview of, 242–43 process behavior charts, 244–46 tools, 243–44 Quantitative data, 20–22 Queues, 206 Queuing curve, 82, 207 function of, 81 model, 206–7, 208 R Regulatory risks, 254 Index Relay-racer task, 157, 222 Representativeness error, 260 Requirements matrix, 117–19 Resistance to change, 289–91 Resource assignments in multiproject Critical Chain, 204 small example, 173 Resource availability checking, 198–99 exploiting, 129–30 Resource conflict resolution, 174–75 Resource constraint, 123, 124, 203 Resource leveling critical path, 97, 179 example of, 158 large example, 177 reasons for, 97–98 Resource-loading networks, 157–58 Resource Managers behavior changes, 274 behavior reinforcement, 228–29 in execution, 228 in resource availability, 129 responsibilities, 228 role, 227–29 Resources enabling of, 221 identifying, 203 Responsibility assignment defined, 138 milestone sequencing, 138–39 project network, 139 in project schedule software, 150 in starting new projects, 149–50 work packages, 139 Responsibility matrix, 149–50 Rewards, 71–72 Risk assessment, 256–58 Risk list checklists, 259 consolidation, 259 defined, 258 plan scrutiny, 259 project assumptions, 258–59 Risk management defined, 254 elements of, 53 323 essence of, 260 example CCPM implementation plan, 278 function of, 253 implementation, 277 planning, 263 process, 255–58 risk types, 254 in single-project solution, 140 summary, 263 Risk matrix, 255–56, 257 Risk probability classifying, 259–61 high, 261 low, 261 moderate, 261 Risks events, guidelines for processing, 258 identifying, 258 impact, classifying, 261–62 implementation, preventing/mitigating, 277 mitigation planning, 262 monitoring, 262 planning to control, 262 prevention, 262 types of, 254 Rolling-wave planning, 52 S Scatter diagrams, 244 Schedule buffer exceeds 100%, 242 exceeds red threshold, 241–42 exceeds yellow threshold, 241 penetration, reduction of, 241 Schedule buffer management buffer report, 233–35 project meetings, 231–32 Senior Manager project meetings, 233 Task Manager meetings, 233 Scheduled time acceleration with increased cost, 192 acceleration without cost impact, 191 reducing, 191–92 Schedule overruns anchoring, 105 conflicts underlying, 104 324 Schedule overruns (continued) Parkinson’s law, 102–4 student syndrome, 104–5 Schedule risks, 254 Schedules Critical Chain example, 133 drum, 204–5 early start, 132–34, 172 exploitation with buffer management, 134–36 frequently asked questions, 192–95 late finish, 132–34 in multiproject Critical Chain, 209 Schedule software, 155–56 Scientific method, 73–74 Senior Management behavior changes, 273 project meetings, 233 role, 230–31 Single-project solution buffer management and, 134–36 Critical Chain schedule, 169–96 Critical Chain summary, 120–21 developing, 121–34 early start versus late start, 132–34 features from PMBOK, 136–41 project change control, 139 project charter, 137 project Kanban, 140 project quality measurement and control process, 139 project risk management, 140 project work plan, 138 requirements matrix, 117–19 responsibility assignment, 138–39 subordinating merging paths, 130–31 system requirements to system design, 117–21 task performance, 132–34 work breakdown structures (WBSs), 138 Six Sigma approaches as CCPM complement, 62 defined, 62 improvement perspectives, 50 waste and, 54 Solution feasibility, 111–13 Index Solutions change decision, 93–95 direction of, 93–116 more better, 37–38 new direction and UDEs, 112 production, 79–84 single-project, 117–41 variation/uncertainty and, 38–41 what to change to and, 115 Special-cause variation, 69–70 Stakeholder endorsement, 144–45 Statements of Work (SOW), 52 Stress human performance and, 35 multitasking and, 34 signs and symptoms of, 35 Student syndrome, 104–5 Subcontractors, behavior changes, 274 Subject matter expert (SME), 229 Subordination, merging paths, 130–31 Switch: How to Change Things When Change Is Hard (Heath), 288 Synthesis, 89 System approach, 25–26 System of Profound Knowledge appreciation for a system and, 63–64 defined, 62 elements of, 63 psychology, 70–73 system dynamics, 63–67 theory of knowledge, 73–74 understanding variation and uncertainty, 67–70 Systems appreciation for, 63–67 destruction of, 67 dynamics of, 64–66 elements of, 63 interrelationships and feedback, 64 leverage, 66 unintended consequences, 66–67 T Tampering, 69–70 Task duration reduction, 133 Task estimates Index exploiting, 126–28 milestone performance, 128 optimistic, 127 underestimation, 127 Task focus enabling, 7–8 key features, 10 Task Managers in Kanban application, 224 meetings, 233 in project execution, 223 resource availability and, 129 responsibilities, 220–21 role, 220–24 software view for, 223 task estimation, 221 See also Project roles Task performance data-driven, 131–32 elevating, 131–32 eliminating multitasking and, 132 Tasks adding to project schedule, 40 aggregating, 128 control and, 193–94 elements of, 154–55 granularity, 158–59 performance, 96 performance variation times, 100 relay-racer, 222 scheduling without computer program, 193 status reporting, 221–22 time conflict, 101 titling, 155 Technical risk, 254 Theory of Constraints (TOC), 75–87 backwards planning, 145–46 continuous improvement, 77 defined, 15, 75 focusing steps, 84–86 illustrated, 76 immediate impact of, 82 improvements for production, 125 output limit, 75 perspective, 51 as problem cause, 23–24 thinking process, 86–87 325 throughput world and, 77–79 tools, 55–56 The Theory of Constraints, A Systems Approach to Continuous Improvement (Goldratt), 75–77 Theory of Knowledge, 73–74 Thinking process, 86–87 Throughput defined, 77 effectiveness of increasing, 270 Throughput world defined, 77–78 focus, 78, 79 illustrated, 79 inventory, 78 operating expense, 78 throughput, 77 Total Quality Management (TQM) improvement perspectives, 50 as management fad, 61 practices, 62 Touch time, 16 Toyota Production System (TPS), 53 Trigger points, buffer, 184–85 Types of projects, 18–19 U Uncertainty dealing with, 15 defined, 68 estimation of, 39 in project tasks, 38–41 reducing in project estimates, 40–41 understanding, 67–70 work packages and, 161–63 Undesired effects (UDEs) in change decision, 94–95 core conflict and, 107–9 defined, 94 new solution direction and, 112 thinking process and, 87 types of, 94 V Variation common-cause, 69–70, 125, 128–29 326 Variation (continued) cost buffer and, 240–41 defined, 68 little positive, potential causes, 102–3 in project tasks, 38–41 special-cause, 69–70 understanding, 67–70 Virtual resources, in multiproject Critical Chain, 204 Vision, 271–73 W Waste, types of, 54–55 In What Is This Thing Called Theory of Constraints (Goldratt), 75 WIP See Work in progress Work breakdown structures (WBSs) common framework, 145 conventional, 146–48 defined, 138 to implement CCPM, 275 levels, 147 numbers, 148 project organization and, 149 in project schedule software, 150 project scope organization with, 5–6 Index quality characteristics, 146–47 in starting new projects, 145–49 templates and checklists in creation of, 148 use of, 5, 138 Workflows, Work in progress (WIP) controlling, 11 cycle time relationship, 114 defined, excess, 113 low, pipelining for, 281–82 multiproject system, 113–15 organization-level, 11 reducing, 207 Work packages activity duration estimate, 159–60 assumptions, 153–54 defined, 139, 151–52 documentation design, 152 logic, 152 project elements, 153 project schedule network, 154–59 scope definition, 139 uncertainty and, 161–63 See also New projects .. .Critical Chain Project Management Third Edition For a listing of recent titles in the Artech House Project Management Library, turn to the back of this book Critical Chain Project Management... Developing the Multiproject Critical Chain Plan 197 8.1 The Multiproject Constraint 8.2 Improving Throughput at the Multiproject Constraint 8.3 Multiproject Critical Chain Features 8.3.1 Project Priority... will exceed your goals This third edition of Critical Chain Project Management expands on my integration of the improvement methodologies of professional Project Management, TOC, Lean, and Six