Project Management beyond critical chain scheduling (Journal Article Presentation)

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MPMD1.1 | Dhiman & Irkin | 2nd Nov 2016 | 0

“Innovation is new perception”, Drucker

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Article Project management applications of the theory of

constraints beyond critical chain scheduling.

International Journal of Project Management, 20(1),

75-80, 2002

Author Steyn, H

Presented by Anubhav Dhiman & Onurhan Irkin

MPMD International Project

Management

Journal Article Presentation

2nd November 2016

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Executive

Summary

Title of Presentation:

Journal Article Presentation on Steyn, H. (2002). Project management applications of the theory of

constraints beyond critical chain scheduling.

Key Message of the Presentation:

‣ Application of Theory Of Constrains to scheduling of a single project to reduce project duration

and simplify project control (Critical Chain)

‣ The importance on product life cycle as opposed to the project life cycle in decision making

‣ Basic principles to application of TOC in concurrent projects: to manage shared resources, cost

management and risk management

Takeaways:

‣ Understanding and appreciation of the Theory of Constraints and its practical applications in the

field of project management

‣ Discussion on the TOC application in other project management areas

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Executive Summary

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Ref: Shuba Kathikeyan, Apex Global

Curriculum Vitae of Prof. Hermanus de Villiers Steyn


http://www.mpm.sdu.edu.cn/Teacher/PDF/20140516111219.PDF

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5Contents

1 Critical Chain - Project Buffer & Feeding Buffer 2

2 Multi-project environment - Maximising the number of concurrent projects 5

3 Managing resources in multi-project environments 7

4 Application of TOC to Project Cost Management & Risk Management 9

5 Conclusion - Ideas & Applications 10

Time (mins)


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6The concept of Critical Chain Taking resource limitations into account along with precedence

Ref: Steyn H. An investigation into the fundamentals of critical chain project management. International Journal of Project Management 19 (2000), 365


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7The concept of Project Buffer Aggregation leads to a reduction in risk

σ Σ = n ×σRef: Steyn H. An investigation into the fundamentals of critical chain project management. International Journal of Project Management 19 (2000), 365

Imp: commitments regarding the completion date are only made at project level.


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8The Concept of Feeding Buffer “JIT-with-buffers” Flexibility in tackling unforeseen changes and improving cashflow




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9Why the emphasis on scheduling?


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10The Project and The Product lifecycle

September 16, 2016 - …

June 29, 2007 - July 15, 2008


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11Contents






Time (mins)


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“The optimum number of new product

development projects assigned concurrently to a

single engineer is two”, Clark & Wheelwright


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form

ance

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14Contents






Time (mins)


15An iterative approach to allocate scarce resources in multiple concurrent projects

1. Identify CCR

2. Schedule sequence of work*

3. Insert CCR buffer before each task**

4. Invest in additional resource

5. Iterate and identify current constraint

CCR

CCR

CCR

CCR

Buffer

CCR

Buffer

CCR

Buffer

Project

Buffer

Project

Buffer

Project 1

Project 2

Ref: Steyn, H. (2002). Project management applications of the theory of constraints beyond critical chain scheduling

* Non-constraints are

subordinated to CCR

** Risk of a resource delaying

the CCR is addressed


17More applications of TOC principle to project management 1. Cost Management


$161

$110 1.1

1.21

1.61*

Snowballing of costs

Planned cost vs Budgeted costPossible Issues

"No blame" culture

n ×σ


n ×σvs

*1.15

18More applications of TOC principle to project management 1. Cost Management


$161

$110 1.1

1.14

1.22*

Snowballing of costs

Planned cost vs Budgeted costPossible Issues

"No blame" culture

n ×σ


n ×σvs

$122

*1+ 5 × 0.1

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20Ideas and Applications for the future


Project Selection

Procurement

Decision Making

Quantitative assessment of the

maximum number of projects an

organisation can do with the

current resources…

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“TOC approach puts together concepts that have

not been put together in the same way before and

is therefore considered an innovation”, Steyn


Project Management beyond critical chain scheduling (Journal Article Presentation)

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