Critical Chain Project Management, Second Edition

281 Pages·2004·1.64 MB·English

by  Lawrence P. Leach

Critical Chain
Project Management
Second Edition
ForalistingofrecenttitlesintheArtechHouseEffectiveProject
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Critical Chain
Project Management
Second Edition
Lawrence P. Leach
artechhouse.com
LibraryofCongressCataloging-in-PublicationData
Leach,LawrenceP.
Criticalchainprojectmanagement/LawrenceP.Leach.—2nded.
p.cm.—(ArtechHouseeffectiveprojectmanagementlibrary)
Includesbibliographicalreferencesandindex.
ISBN1-58053-903-3(alk.paper)
1.Projectmanagement. I.Title.II.Series.
T56.8.L342004
658.5—dc22
2004046244
BritishLibraryCataloguinginPublicationData
Leach,LawrenceP.
Criticalchainprojectmanagement.—2nded.—(ArtechHouseprojectmanagementlibrary)
1.Projectmanagement
I.Title
658.4′04
ISBN 1-58053-903-3
CoverdesignbyGaryRagaglia
©2005ARTECHHOUSE,INC.
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InternationalStandardBookNumber:1-58053-903-3
LibraryofCongressCatalogCardNumber:2004046244
10987654321
Contents
Preface xi
Acknowledgments xiii
CHAPTER 1
Begin in the Beginning 1
1.1 ProjectSuccess 2
1.2 DefiningtheProblem 4
1.2.1 HowGoodIstheCurrentProjectSystem? 4
1.2.2 ButSomeCompaniesMakeaLotofMoneyRunningProjects 9
1.2.3 ProblemCause,orBetterDefiningtheProblem 10
1.2.4 RightSolution 13
1.2.5 RightExecution 17
1.3 SuccesswithCritical-ChainProjectManagement 18
1.4 HoneywellDAS[16] 19
1.5 LucentTechnologies[17] 20
1.6 IsraeliAircraftIndustry 20
1.7 U.S.NavyShipyards 20
1.8 Summary 20
References 21
CHAPTER 2
TOC, PMBOK™, Lean and Six Sigma 23
2.1 ProjectManagementBodyofKnowledge(PMBOK™) 24
2.1.1 ProjectIntegrationManagement 25
2.1.2 ProjectScopeManagement 25
2.1.3 ProjectTimeManagement 26
2.1.4 Project-RiskManagement 26
2.1.5 OtherPMBOK™Areas 26
2.1.6 OrganizationalProjectMaturityModel 26
2.2 Lean 27
2.3 Agile,orLight,ProjectManagement 29
2.4 SixSigma 31
2.5 SystemofProfoundKnowledge 32
2.5.1 AppreciationforaSystem 33
2.5.2 UnderstandingVariationandUncertainty 37
2.5.3 Psychology 40
v
vi Contents
2.5.4 TheoryofKnowledge 43
2.6 TheoryofConstraints 44
2.6.1 TheThroughputWorld 47
2.6.2 TheProductionSolution 48
2.6.3 FiveFocusingSteps 52
2.7 ChangeManagement 57
2.8 TheGrandSynthesis 58
2.9 Summary 59
References 59
CHAPTER 3
The Direction of the Solution 61
3.1 DecidingWhattoChange 61
3.1.1 DefiningtheProject-ManagementSystem 61
3.1.2 ProjectFailureastheUndesiredEffects 61
3.2 IdentifytheConstraint 62
3.3 ExploittheConstraint 66
3.3.1 Projects’DurationsGetLongerandLonger 66
3.3.2 ProjectsFrequentlyOverrunSchedule 68
3.3.3 Multitasking 72
3.3.4 TheCoreConflictLeadstoUndesiredEffects 73
3.4 TowardDesiredEffects 74
3.4.1 ResolvingtheCoreConflict 74
3.5 SolutionFeasibility(Evidence) 77
3.6 DetermineWhattoChangeTo 79
3.7 Summary 79
References 80
CHAPTER 4
The Complete Single-Project Solution 81
4.1 FromSystemRequirementstoSystemDesign 81
4.1.1 RequirementsMatrix 81
4.1.2 SummaryofSingle-ProjectCriticalChain 83
4.2 DevelopingtheCritical-ChainSolution 84
4.2.1 IdentifyingtheProjectConstraint 84
4.2.2 ExploitingtheConstraint 86
4.2.3 SubordinatingMergingPaths 95
4.2.4 TaskPerformance 97
4.2.5 EarlyStartversusLateFinish 99
4.3 ExploitingthePlanUsingBufferManagement 100
4.4 Features(MoreorLess)fromPMBOK™ 102
4.4.1 ProjectCharter 102
4.4.2 ProjectWorkPlan 102
4.4.3 ProjectMeasurementandControlProcess 104
4.4.4 ProjectChangeControl 104
4.4.5 Project-RiskManagement 104
4.5 Summary 104
Contents vii
References 105
CHAPTER 5
Starting a New Project 107
5.1 Project-InitiationProcess 107
5.2 TheProjectCharter 108
5.3 StakeholderEndorsement 108
5.4 TheWorkBreakdownStructure(WBS) 109
5.4.1 TOCApproaches 109
5.4.2 TheConventionalWBS 110
5.4.3 ProjectOrganization 111
5.5 ResponsibilityAssignment 112
5.6 MilestoneSequencing 112
5.7 WorkPackages 113
5.7.1 Assumptions 114
5.7.2 ProjectNetwork 115
5.7.3 ActivityDurationEstimate 120
5.7.4 UncertaintyRevisited 120
5.8 NeedforCostBuffer 123
5.9 BasisforCostEstimates 124
5.10 TheProjectWorkPlan 124
5.11 ChangeManagement 125
5.12 ProjectClosure 125
5.13 Summary 125
References 126
CHAPTER 6
Developing the (Single-Project) Critical-Chain Plan 127
6.1 Process 127
6.2 GoodEnough 128
6.3 ExamplesandPractice 128
6.3.1SmallExample 128
6.3.2 LargeExample 131
6.3.3 LargeExercise 134
6.4 BufferandThresholdSizing 135
6.4.1 StatisticalBackground 135
6.4.2 ProjectandFeedingBufferSize 137
6.4.3 BufferTriggerPoints 138
6.4.4 ResourceBuffers 139
6.5 CostBufferSizing 140
6.6 MethodstoCreatethePlan 141
6.6.1 Manual 141
6.6.2 Critical-PathSoftware 142
6.6.3 Critical-ChainSoftware 143
6.7 ExternalConstraints 143
6.8 ReducingPlannedTime(a.k.a.DictatedEndDates) 144
viii Contents
6.8.1 AccelerationwithoutCostImpact(ExploitandSubordinate
6.8.1 totheConstraint) 144
6.8.2 AccelerationwithIncreasedRawMaterialCost(Elevatethe
6.8.2 Constraint) 144
6.9 EnterpriseWideResourcePlanning 145
6.10 FrequentlyAskedPlanningQuestions 145
6.11 KeyPoints 148
CHAPTER 7
Developing the Multiproject Critical-Chain Plan 149
7.1 IdentifytheMultiprojectConstraint 149
7.2 ExploittheMultiprojectConstraint 153
7.3 MultiprojectCritical-ChainFeatures 154
7.3.1 ProjectPriority 154
7.3.2 SelecttheDrumResource 154
7.3.3 TheDrumSchedule(a.k.a.PipeliningtheProjects) 156
7.3.4 TheCapacity-ConstraintBuffer 157
7.3.5 TheDrumBuffer 159
7.3.6 ProjectSchedules 160
7.4 AnotherViewofaMultiprojectConstraint 160
7.5 IntroducingNewProjects 161
7.6 FrequentlyAskedMultiprojectQuestions 162
7.7 Summary 162
CHAPTER 8
Measuring and Controlling to the Plan 165
8.1 ProjectRoles 166
8.1.1 TaskManagerRole 166
8.1.2 ProjectManagerRole 167
8.1.3 ResourceManagerRole 170
8.2 BufferManagement 171
8.2.1 ProjectMeetings 171
8.2.2 TheBufferReport 172
8.3 CostBuffer 174
8.3.1 CostBufferStatus 174
8.3.2 Earned-ValueBasics 175
8.3.3 Cost-BufferPenetration 175
8.3.4 TheProblem 176
8.3.5 LaborCosts 176
8.3.6 MaterialCosts 177
8.3.7 PeacefulCoexistenceofBufferReportingandEarnedValue 178
8.3.8 TheSo-calledScheduleVariance 179
8.4 QualityMeasurement 179
8.5 RespondingtotheBufferSignals 180
8.5.1 ScheduleBufferExceedsYellowThreshold 180
8.5.2 CostBufferExceedsYellowThreshold 180
8.5.3 DollarDays’QualityIncreasing 181
Contents ix
8.5.4 ScheduleBufferExceedsRedThreshold 181
8.5.5 CostBufferExceedsRedThreshold 182
8.5.6 ScheduleorCostBufferExceeds100% 182
8.6 Milestones 182
8.7 Change-ControlActions 182
8.8 FrequentlyAskedMeasurement-and-ControlQuestions 183
8.9 Summary 184
References 185
CHAPTER 9
Implementing the Change to CCPM 187
9.1 ImplementationModel 187
9.1.1 EndorsetheImplementationProject 188
9.1.2 ChartertheImplementationProject 188
9.1.3 BeginwiththeEndinMind(Vision) 188
9.1.4 CreatetheImplementationProjectWorkPlan 190
9.1.5 PlantoPreventorMitigateImplementationRisks 193
9.1.6 JustDoIt!orFakeItUntilYouMakeIt 195
9.1.7 Measure-and-ControlImplementation 197
9.1.8 WhatifImplementationProgressStalls? 198
9.2 OrganizationChangeTheory 198
9.2.1 SevenSModel 199
9.2.2 3–4–3 200
9.2.3 AppreciationforaSystem 202
9.2.4 ResistancetoChange 203
9.2.5 ParadigmLock 204
9.3 Goldratt’sResistanceModel 205
9.4 ToPilotorNottoPilot? 206
9.5 ExampleObjections 207
9.6 KeyPoints 208
References 208
CHAPTER 10
Project-Risk Management 209
10.1 DefiningProject-RiskManagement 210
10.2 Risk-ManagementProcess 210
10.2.1 TheRiskMatrix 211
10.2.2 IncorporatingRiskAssessmentintotheProjectProcess 213
10.3 IdentifyingRisks 214
10.3.1 RiskList 214
10.3.2 ClassifyingRiskProbability 215
10.3.3 ClassifyingRiskImpact 217
10.4 PlanningtoControlRisks 217
10.4.1 RiskMonitoring 217
10.4.2 Prevention 217
10.4.3 MitigationPlanning 217
10.5 KeyPoints 218