Project Management

Please login or join to subscribe to this thread

Critical Chain: Have you used this method in your projects?

linkedin twitter facebook   Estimating  
avatar
Karthik Ramamurthy Author, Say YES to Project Success| Founder KeyResultz Chennai, Tamilnadu, Tamilnadu, India
The Critical Chain is a path-breaking theory advanced by the Theory of Constraints (TOC) author Eliyahu Goldratt. It offers breakthrough project performance by cutting down on both buffers and avoiding the "Student Syndrome".
Have you read the book? If so, have you used some of these concepts in your projects?
If so, what was your experience?
Please share your knowledge for the benefit of our PM community here.
Sort By:
< 1 2 >
avatar
James McPherson Vice President| Main Sail LLC Nags Head, Nc, United States
A few thoughts for the group based on reading the above comments and ten years of using Critical Chain concepts in a lot of different kinds of projects.

My Experience has been that if you use the three rules of Critical Chain.
1. Task Buffering: Don’t turn estimates into commitments. Shorten project plans and include buffers.
2. Pipelining: Stagger project starts around resource availability.
3. Buffer Management: Follow task priorities, don’t waste buffers. But consuming all of the buffer is OK.

You can deliver projects on time or early with the planned scope and within budget more often than using traditional project management.

Things you cannot change include
1.Human nature; this is why you buffer tasks and use buffer management as your control mechanism.
2. The unknown problems and interruptions you will encounter. This is what the feeding and project buffers are for.

Things you can change include
1. Having people focus on fewer things (this is especially important for the highest priority tasks) VS doing several things at once and delaying all of the completions.
2. Removing the Parkinsons Law from the tasks. This is actually one of the benefits of doing task buffering, AKA using the mean time of the task estimate.

I teach that there are three parts to every task, The work, the interruptions and the Parkinsons law. You have to do some work or it shouldn't be a task, you never know how much interruptions and delays you will have, but the one thing you can do up front in planning is you can reduce the Parkinsons law at the very beginning through using the three rules

The normal management mechanisms for managing issues that arise don't change, it will still take a management decision on what is most important, where to apply additional resources, when overtime is required, what tasks can be started sooner etc...
Because there is no magic solution to getting work completed, it still is work.

But Critical Chain tools and techniques can provide management with the visibility and predictability they require to reduce stress and accomplish the mission.

Hope this helps someone.
...
1 reply by Karthik Ramamurthy
Feb 11, 2019 9:34 AM
Karthik Ramamurthy
...
@James McPherson: Thanks a million for adding terrific points which add excellent value to this discussion.
I've alo seen the importance of trying to do everything possible to have as much of required resources as possible ready before a task or activity can start. In an ideal world, we would want everything available, but that is not possible in the real world!
This allows for minimization of interruptions or delays once a critical resource has started working on it.
I hope you will continue to contribute your rich knowledge for the benefit of our vibrant community here!
avatar
James Porter Sr. Project Planner| Hitachi Rail STS USA Glenshaw, Pa, United States
Good input there, James M. Especially agree with having people focus on fewer things! Very common for the most critical resources to be the ones pulled off, interrupted, etc. Must protect your key resources to the extent possible. (But that's not always possible I realize.)
...
1 reply by Karthik Ramamurthy
Feb 11, 2019 9:37 AM
Karthik Ramamurthy
...
Exellent point, James! I've first-hand used this technique, and know for sure that it is effective!
avatar
James McPherson Vice President| Main Sail LLC Nags Head, Nc, United States
In many cases we see that the resources most in demand across all of the available work cause delays in completions on much of the work this in turn creates a ripple effect of late task completions. Unfortunately in traditional project management these delays often do not become visible or elavtaed in importance until the final third of the project at which time heroic efforts and more investment of time and money are required to salvage the deliverables. This usually results in the well known over budget and late scenarios we often have to deal with.
Using CCPM tools and techniques we can usually see these delays and impacts in real time as they occur allowing us to use our management tools to deal with them earlier and with more success. Or in the best case scenario, to entirely avoid them through use of the three rules of Critical Chain.
avatar
Karthik Ramamurthy Author, Say YES to Project Success| Founder KeyResultz Chennai, Tamilnadu, Tamilnadu, India
Jan 27, 2016 1:39 PM
Replying to James McPherson
...
A few thoughts for the group based on reading the above comments and ten years of using Critical Chain concepts in a lot of different kinds of projects.

My Experience has been that if you use the three rules of Critical Chain.
1. Task Buffering: Don’t turn estimates into commitments. Shorten project plans and include buffers.
2. Pipelining: Stagger project starts around resource availability.
3. Buffer Management: Follow task priorities, don’t waste buffers. But consuming all of the buffer is OK.

You can deliver projects on time or early with the planned scope and within budget more often than using traditional project management.

Things you cannot change include
1.Human nature; this is why you buffer tasks and use buffer management as your control mechanism.
2. The unknown problems and interruptions you will encounter. This is what the feeding and project buffers are for.

Things you can change include
1. Having people focus on fewer things (this is especially important for the highest priority tasks) VS doing several things at once and delaying all of the completions.
2. Removing the Parkinsons Law from the tasks. This is actually one of the benefits of doing task buffering, AKA using the mean time of the task estimate.

I teach that there are three parts to every task, The work, the interruptions and the Parkinsons law. You have to do some work or it shouldn't be a task, you never know how much interruptions and delays you will have, but the one thing you can do up front in planning is you can reduce the Parkinsons law at the very beginning through using the three rules

The normal management mechanisms for managing issues that arise don't change, it will still take a management decision on what is most important, where to apply additional resources, when overtime is required, what tasks can be started sooner etc...
Because there is no magic solution to getting work completed, it still is work.

But Critical Chain tools and techniques can provide management with the visibility and predictability they require to reduce stress and accomplish the mission.

Hope this helps someone.
@James McPherson: Thanks a million for adding terrific points which add excellent value to this discussion.
I've alo seen the importance of trying to do everything possible to have as much of required resources as possible ready before a task or activity can start. In an ideal world, we would want everything available, but that is not possible in the real world!
This allows for minimization of interruptions or delays once a critical resource has started working on it.
I hope you will continue to contribute your rich knowledge for the benefit of our vibrant community here!
avatar
Karthik Ramamurthy Author, Say YES to Project Success| Founder KeyResultz Chennai, Tamilnadu, Tamilnadu, India
Jan 28, 2016 6:51 AM
Replying to James Porter
...
Good input there, James M. Especially agree with having people focus on fewer things! Very common for the most critical resources to be the ones pulled off, interrupted, etc. Must protect your key resources to the extent possible. (But that's not always possible I realize.)
Exellent point, James! I've first-hand used this technique, and know for sure that it is effective!
avatar
Karthik Ramamurthy Author, Say YES to Project Success| Founder KeyResultz Chennai, Tamilnadu, Tamilnadu, India
Nov 01, 2015 4:05 PM
Replying to Sergio Luis Conte
...
Critical Chain is nothing new for people who were trained in operation research which is the basement for TOC. I have the opportunity to use Critical Chain and I have the opportunity to be trained for Mr. Goldratt. And I am involved on implementing Critical Chain. The best advise I can give to people who like to use it is: Critical Chain demands a cultural change in all stakeholders mainly in project manager. Read and understand Critical Chain and you will understand why the cultural change.
Wow, Sergio Luis Conte!
That must have indeed been an amazing, once-in-a-lifetime opportunity, being trained in TOC by the grat man himself!
I completely agree that achieving success in applying Critical Chain requires a pradigm shift in the way Project Managers think about Project Management.
...
1 reply by Sergio Luis Conte
Feb 11, 2019 10:00 AM
Sergio Luis Conte
...
Well, at this time, there is no other person to make the training because it was at the very beginning.
avatar
Karthik Ramamurthy Author, Say YES to Project Success| Founder KeyResultz Chennai, Tamilnadu, Tamilnadu, India
Nov 01, 2015 5:34 PM
Replying to Stéphane Parent
...
I have read Mr. Goldratt''s seminal work. What he makes explicit in the critical chain methodology is what most experienced project managers know: those who estimate lie.

Most people who are asked to provide estimate are usually not accountable for the accuracy of their estimate. (I worked with one company who actually gave a superior performance rating to those people whose estimates were alwways withing /- 10%).
As long as individual contributors are assessed for being under budget and on schedule, these conservative estimates will continue.

As a critical chain project manager, you understand that this is part of the game. You then expose the play by cutting the estimate back by 50%, ay, and allocating the cut amount to the buffer.

Of course, you also need to make sure the resource is dedicated to the task. (Part of the lie is because people get pulled in multiple directions.).

Hold your estimators accountable but make sure they are fully allocated to their activities.
Excellent points, Stephane!
Thanks a million for adding great value to this discussion by sharing knowledge from real experience.
It does make sense to cut from estimates and add to the buffer. However, at the same time, it takes a lot of people skills to convince resources that the job can be done in half the time.
And that, despite excellent performance, if something unforseen happens to delay the activity, you will be there to protect your resources.
Also, even whe the resource is dedicated to the task, we need to make every effort to make sure that when a task is scheduled to start, we have almost everything required to complete it.
avatar
Sergio Luis Conte Helping to create solutions for everyone| Worldwide based Organizations Buenos Aires, Argentina
Feb 11, 2019 9:45 AM
Replying to Karthik Ramamurthy
...
Wow, Sergio Luis Conte!
That must have indeed been an amazing, once-in-a-lifetime opportunity, being trained in TOC by the grat man himself!
I completely agree that achieving success in applying Critical Chain requires a pradigm shift in the way Project Managers think about Project Management.
Well, at this time, there is no other person to make the training because it was at the very beginning.
avatar
Karthik Ramamurthy Author, Say YES to Project Success| Founder KeyResultz Chennai, Tamilnadu, Tamilnadu, India
Nov 04, 2015 7:08 PM
Replying to Ricardo do_Rego_Barros
...
Cultural change is really the greatest challenge a PM is to face when adopting Critical Chain approach. Not only to get the overestimated cuts, dimensioning buffers and making them understood to customers and teams but to get work package owners to report correctly remaining work durations and to get rid of the planned start dates to really start work as predecessors are concluded.
@Ricardo do_Rego_Barros: Great points which add real value to our discussion on Critical Chain!
Cultural change also becomes very important for other key stakeholders such as vedors.
After all, in several projects, vendors may have to complete significant work.
If they are not convinced, they will not accept terms at reduced timelines!
In some cases, incentive clauses may have to be put in to convince them. If the incentives are far lesser than the gains to be had through shortened timelines, they easily pay for themselves!
avatar
Karthik Ramamurthy Author, Say YES to Project Success| Founder KeyResultz Chennai, Tamilnadu, Tamilnadu, India
Nov 05, 2015 4:30 PM
Replying to Luke Panezich
...
Am still trying to see how using this technique will improve the process. Take an estimate of 8d to complete an activity or 18mo to complete a project. Half goes to the buffer. Come day 4 or month 9 and if the estimate was within a definitive range to start, it will still consumes the buffer. At the end, the actual was 8d or 18mo /- the definitive range of the estimate.
Great question, Luke!
I see that there are already some excellent responses!
Please do keep contributing for the benefit of our vibrant community here!
< 1 2 >

Please login or join to reply

Content ID:
ADVERTISEMENTS

"A closed mind is like a closed book; just a block of wood."

- Chinese Proverb

ADVERTISEMENT

Sponsors