book review on

Critical
Chain

A business novel by Eliyahu M. Goldratt

By
Rising Mercury

Problems haunting project managers

Why do projects run behind the

Though
we factor-in so much of safety during plann
schedule?
Why do projects run over budget ?
Though we live in the cost world

The
Solution
blend project management with TOC

Project
Theory of
Enables us to manage Projects
nables us to manage costs and protect throughput Critical
Chain Project
Management
Constraints

Management
by
Eliyahu M Goldratt ( 1947
2011)

Focus on the right things

What we really want?

To Finish project on
time

Not to finish a task on

time

What is the real moto behind doing a

Not to Save Money
To Make Money
project?
Do we consider resource constraints
Not
Completingenough
tasks
early
? just multitasking

Critical Chain Project

Management
Core
Concepts

DOWN ACTIVITY DURATIONS (work expands to its duration)

ule project with aggressive duration estimates. Avoid safety buffers in individual

CCPM insists in choosing aggressive durations for activities

Probability

50% Chances

We usually tend to choose duration with 80% to 9

probability for activity completion

80% Chances
90% Chances
30%
Chances
Time

Safety / Buffer

How to develop a Critical Chain for

resource constrained critical path
a project

Let
ake
ut
Add
us
down
a resources
resource
consider
activity
feasible
a simple
durations
latest
project
start schedule
Duration
1
2

1
2

Activity

1
0

9
6

START

3
5

D
3
2

B,E

4
6

6
B,E

1
2

7
C

Critical Chain
3
2

END

STEP
:Exploit the
TEP
1 : 2Identify
theconstraint
constraint

Use buffers
protection
againstchain
risk of our project
onstraint
in our for
project
is the Critical
1

11
0

0
STAR
T
START

B1
B
3
3

3
3F
F

TOC
IN
1
4
FB
D
4
EXECUTION
4
6
6

2
2

A,E
A,E

RB
2
2

5
5
B,E
B,E

6
B,E

Critical Chain
2

6
B,E 1
1

7
C

7
C

8
FB

8
E

0
0
EN
Project
Buffer
D

END

BUFFE
Buffers act as status indicators for project.
RS
Project Buffer Placed between last activity and project dead line.
Protects project against odds

Safebuffer
zone
Feeding
Placed at merging points between critical chain and feeding chains.
Protects feeding chains against odds
Resource buffer Placed alongside of the critical chain
Ensures Alert
timely availability of critical resources
BUFFER
Buffer acts as protection

Take action

START

FB

RB

A,E
3

Project
END
Buffer

B,E
1

B,E

E
FB

The
extent
consumption
indicates the health of the project
Critical
Chain of their
Feeding
Chains
F

TOC IN
EXECUTION

EP
TEP34: :Subordinate
Eliminate the
everything
constraint
else
from
to system
the critical chain
1

Continuous
EN
8
2
6
Improvement
D
A chain is only as strong as its weakest
l
B

START

FB

Project
Buffer

RB

A,E

B,E
1

FB

GO BACK TO STEP ONE

All feeding chains are completely subordinated to critical chain

Application of learnings from the book

Cultivate relay racing approach for quicker results

Get rid of students syndrome

Avoid multitasking, its a time killer

Work on bottle necks to achieve results

Application of learnings from the book

10

Think out of box. Question common practices.

When you are in hole, stop digging

Focus on what you do

Throughput is what matters in the end

Thank you