Critical Chain Project Management

337 Pages·2000·0.85 MB·English

by  Lawrence P. Leach

Critical Chain Project Management
Critical Chain Project Management
Lawrence P. Leach
Artech House
Boston • London
LibraryofCongressCataloging-in-PublicationData
Leach,LawrenceP.
Criticalchainprojectmanagement/LawrenceP.Leach.
p. cm.—(ArtechHouseprofessionaldevelopmentlibrary)
Includesbibliographicalreferencesandindex.
ISBN1-58053-074-5(alk.paper)
1.Industrialprojectmanagement. I.Title. II.Series.
T56.8L34 2000
658.4’04—dc21 99-058090
CIP
BritishLibraryCataloguinginPublicationData
Leach,LawrenceP.
Criticalchainprojectmanagement.—(ArtechHouse
professionaldevelopmentlibrary)
1.Industrialprojectmanagement
I.Title
658.4’04
ISBN 1-58053-074-5
CoverdesignbyIgorValdman
©2000ARTECHHOUSE,INC.
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markshavebeenappropriatelycapitalized.ArtechHousecannotattesttotheaccu-
racyofthisinformation.Useofaterminthisbookshouldnotberegardedas
affectingthevalidityofanytrademarkorservicemark.
InternationalStandardBookNumber:1-58053-074-5
LibraryofCongressCatalogCardNumber:99-058090
10987654321
Contents
Preface xv
1 Beginatthebeginning 1
1.1 Projectsuccess 3
1.2 Definingtheproblem 4
1.2.1 Howgoodisthecurrentprojectsystem? 5
1.2.2 Theprojectmanagementbusiness 11
1.2.3 Causeoftheproblem 12
1.2.4 Rightsolution 16
1.2.5 Rightexecution 22
1.3 Successwithcriticalchain 23
1.4 Summary 26
References 27
2 ThesynthesisofTQM,TOC,andPMBOK(cid:212) 29
2.1 PMBOK(cid:212) 31
2.1.1 Projectintegrationmanagement 32
2.1.2 Projectscopemanagement 32
v
vi CriticalChainProjectManagement
2.1.3 Projecttimemanagement 33
2.1.4 Projectriskmanagement 34
2.1.5 OtherPMBOK(cid:212) areas 34
2.2 TQM 34
2.2.1 Appreciationforasystem 37
2.2.2 Understandingvariationanduncertainty 43
2.2.3 Psychology 46
2.2.4 Theoryofknowledge 50
2.3 TOC 52
2.3.1 Thethroughputworld 56
2.3.2 Theproductionsolution 58
2.3.3 Fivefocusingsteps 63
2.3.4 Thethinkingprocess 67
2.3.5 Resistancetochange 70
2.4 Summary 71
References 73
3 Thedirectionofthesolution 75
3.1 Decidingwhattochange 75
3.1.1 Definingtheprojectmanagementsystem 76
3.1.2 Projectfailureastheundesiredeffect 76
3.2 Towardacoredilemma 78
3.2.1 Longerandlongerprojectduration 78
3.2.2 Projectsfrequentlyoverrunschedule 81
3.2.3 Multitasking 85
3.2.4 CoreconflictleadingtoUDEs 87
3.3 Towarddesiredeffects 90
3.3.1 Resolvingthecoreconflict 90
3.3.2 Theresourceconstraint 92
Contents vii
3.4 Solutionfeasibility(evidence) 95
3.5 Determiningwhattochangeto 97
3.6 Summary 98
References 99
4 Thecompletesingle-projectsolution 101
4.1 Fromsystemrequirementstosystemdesign 101
4.1.1 Requirementsmatrix 101
4.1.2 Summaryofsingle-projectcriticalchain 104
4.2 Developingthecriticalchainsolution 106
4.2.1 Identifyingtheprojectconstraint 106
4.2.2 Exploitingtheconstraint 109
4.2.3 Subordinatingmergingpaths 113
4.2.4 Taskperformance 115
4.2.5 Earlystartversuslatefinish 116
4.3 Exploitingtheplanusingbuffermanagement 117
4.4 Features(moreorless)fromPMBOK(cid:212) 120
4.4.1 Projectcharter 121
4.4.2 Projectworkplan 121
4.4.3 Projectmeasurementandcontrolprocess 122
4.4.4 Projectchangecontrol 123
4.4.5 Projectriskmanagement 123
4.5 Summary 123
References 124
5 Startinganewproject 125
5.1 Projectinitiationprocess 125
5.2 Theprojectcharter 126
5.3 Stakeholderendorsement 127
viii CriticalChainProjectManagement
5.4 Theworkbreakdownstructure 127
5.5 Responsibilityassignment 130
5.6 Milestonesequencing 131
5.7 Workpackages 133
5.7.1 Assumptions 134
5.7.2 Projectlogic 135
5.7.3 Howmanytasks? 137
5.7.4 Activitydurationestimate 138
5.7.5 Uncertaintyrevisited 139
5.7.6 Costbuffer 141
5.7.7 Basisforcostestimates 143
5.8 Theprojectworkplan 144
5.9 Aplanningandcontrolpolicy 145
5.10 Changemanagement 147
5.11 Projectclosure 148
5.12 Summary 148
References 149
6 Developingthe(single-project)criticalchainplan 151
6.1 Theprocess 151
6.2 The“goodenough”concept 153
6.3 Examplesandpractice 154
6.3.1 Smallexample 154
6.3.2 Largeexample 159
6.3.3 Largeexercise 164
6.4 Bufferandthresholdsizing 164
6.4.1 Statisticalbackground 167
6.4.2 Projectbuffersize 168
6.4.3 Feedingbuffersize 169
6.4.4 Buffertriggerpoints 169
Contents ix
6.4.5 Resourcebuffersize 170
6.5 Costbuffer 170
6.6 Methodstocreatetheplan 171
6.6.1 Manualmethod 171
6.6.2 Criticalpathsoftware 172
6.6.3 Criticalchainsoftware 174
6.7 Externalconstraints 174
6.8 Reducingplannedtime(a.k.a.dictatedenddates) 175
6.8.1 Accelerationwithoutcostimpact(exploitand
subordinatetotheconstraint) 175
6.8.2 Accelerationwithincreasedrawmaterialcost(elevate
theconstraint) 176
6.9 Enterprisewideresourceplanning 176
6.10 Frequentlyaskedquestions 177
6.11 Summary 180
7 Developingtheenterprisemultiprojectcritical
chainplan 183
7.1 Identifyingthemultiprojectconstraint 183
7.2 Exploitingthemultiprojectconstraint 189
7.3 Featuresofmultiprojectcriticalchains 190
7.3.1 Projectpriority 190
7.3.2 Selectingthedrumresource 191
7.3.3 Thedrumschedule 193
7.3.4 Thecapacityconstraintbuffer 194
7.3.5 Thedrumbuffer 194
7.3.6 Projectschedules 195
7.4 Introducingnewprojectstotheenterprise 195
7.5 Summary 197
x CriticalChainProjectManagement
8 Measurementandcontrol 199
8.1 Buffermanagement 201
8.1.1 Statusreporting 201
8.1.2 Thebufferreport 202
8.1.3 Resourceuseofbufferreports 204
8.2 Thecostbuffer 205
8.2.1 Costbufferpenetration 206
8.3 Qualitymeasurement 208
8.4 Responsestobuffersignals 209
8.4.1 Schedulebufferexceedsfirstthird 209
8.4.2 Costbufferexceedsfirstthird 210
8.4.3 Dollar-daysqualityincreasing 211
8.4.4 Schedulebufferexceedssecondthird 211
8.4.5 Costbufferexceedssecondthird 211
8.5 Thecostworld 211
8.6 Changecontrolactions 214
8.7 Summary 215
References 216
9 Implementingthechangetocriticalchain 217
9.1 Implementationmodel 218
9.2 Visionoftheend 223
9.3 Implementationtheory 224
9.3.1 Theruleof3-4-3 224
9.3.2 Appreciationforasystem 226
9.3.3 Resistancetochange 228
9.3.4 Psychology 230
9.3.5 Paradigmlock 232
Contents xi
9.4 Goldratt’sresistancemodel 239
9.4.1 Overcominglayers1,2,and3 239
9.4.2 Overcominglayer4 239
9.4.3 Overcominglayer5 241
9.4.4 Overcominglayer6 241
9.5 Topilotornottopilot? 242
9.6 Planthechange 244
9.6.1 Endorsetheimplementationproject 244
9.6.2 Chartertheimplementationproject 245
9.6.3 Createtheimplementationprojectworkplan 245
9.6.4 Plantopreventormitigateimplementationrisks 250
9.7 Moveahead! 251
9.8 Measureandcontrolimplementation 253
9.9 Whatifimplementationprogressstalls? 255
9.10 Summary 255
References 256
10 Projectriskmanagement 257
10.1 Definingprojectriskmanagement 259
10.2 Riskmanagementprocess 259
10.2.1 Theriskmatrix 260
10.2.2 Incorporatingriskassessmentintotheprojectprocess 262
10.3 Identifyingrisks 262
10.3.1 Risklist 262
10.3.2 Classifyingriskprobability 264
10.3.3 Classifyingriskimpact 267
10.4 Planningtocontrolrisks 268
10.4.1 Riskmonitoring 268
10.4.2 Prevention 268