Critical Chain Project Management -- Table of Contents -- Preface xi -- Acknowledgments xiii -- 1 Begin in the Beginning 1 -- 1.1 Project Success 2 -- 1.2 Defining the Problem 4 -- 1.2.1 How Good Is the Current Project System? 4 -- 1.2.2 But Some Companies Make a Lot of Money Running Projects 9 -- 1.2.3 Problem Cause, or Better Defining the Problem 10 -- 1.2.4 Right Solution 13 -- 1.2.5 Right Execution 17 -- 1.3 Success with Critical-Chain Project Management 18 -- 1.4 Honeywell DAS [16] 19 -- 1.5 Lucent Technologies [17] 20 -- 1.6 Israeli Aircraft Industry 20 -- 1.7 U.S. Navy Shipyards 20 -- 1.8 Summary 20 -- References 21 -- 2 TOC, PMBOKŽ, Lean and Six Sigma 23 -- 2.1 Project Management Body of Knowledge (PMBOKŽ) 24 -- 2.1.1 Project Integration Management 25 -- 2.1.2 Project Scope Management 25 -- 2.1.3 Project Time Management 26 -- 2.1.4 Project-Risk Management 26 -- 2.1.5 Other PMBOKŽ Areas 26 -- 2.1.6 Organizational Project Maturity Model 26 -- 2.2 Lean 27 -- 2.3 Agile, or Light, Project Management 29 -- 2.4 Six Sigma 31 -- 2.5 System of Profound Knowledge 32 -- 2.5.1 Appreciation for a System 33 -- 2.5.2 Understanding Variation and Uncertainty 37 -- 2.5.3 Psychology 40 -- 2.5.4 Theory of Knowledge 43 -- 2.6 Theory of Constraints 44 -- 2.6.1 The Throughput World 47 -- 2.6.2 The Production Solution 48 -- 2.6.3 Five Focusing Steps 52 -- 2.6.4 The Thinking Process -- 2.7 Change Management 57 -- 2.8 The Grand Synthesis 58 -- 2.9 Summary 59 -- References 59 -- 3 The Direction of the Solution 61 -- 3.1 Deciding What to Change 61 -- 3.1.1 Defining the Project-Management System 61 -- 3.1.2 Project Failure as the Undesired Effects 61 -- 3.2 Identify the Constraint 62 -- 3.3 Exploit the Constraint 66 -- 3.3.1 Projects™ Durations Get Longer and Longer 66 -- 3.3.2 Projects Frequently Overrun Schedule 68 -- 3.3.3 Multitasking 72.

3.3.4 The Core Conflict Leads to Undesired Effects 73 -- 3.4 Toward Desired Effects 74 -- 3.4.1 Resolving the Core Conflict 74 -- 3.5 Solution Feasibility (Evidence) 77 -- 3.6 Determine What to Change To 79 -- 3.7 Summary 79 -- References 80 -- 4 The Complete Single-Project Solution 81 -- 4.1 From System Requirements to System Design 81 -- 4.1.1 Requirements Matrix 81 -- 4.1.2 Summary of Single-Project Critical Chain 83 -- 4.2 Developing the Critical-Chain Solution 84 -- 4.2.1 Identifying the Project Constraint 84 -- 4.2.2 Exploiting the Constraint 86 -- 4.2.3 Subordinating Merging Paths 95 -- 4.2.4 Task Performance 97 -- 4.2.5 Early Start versus Late Finish 99 -- 4.3 Exploiting the Plan Using Buffer Management 100 -- 4.4 Features (More or Less) from PMBOKŽ 102 -- 4.4.1 Project Charter 102 -- 4.4.2 Project Work Plan 102 -- 4.4.3 Project Measurement and Control Process 104 -- 4.4.4 Project Change Control 104 -- 4.4.5 Project-Risk Management 104 -- 4.5 Summary 104 -- References 105 -- 5 Starting a New Project 107 -- 5.1 Project-Initiation Process 107 -- 5.2 The Project Charter 108 -- 5.3 Stakeholder Endorsement 108 -- 5.4 The Work Breakdown Structure (WBS) 109 -- 5.4.1 TOC Approaches 109 -- 5.4.2 The Conventional WBS 110 -- 5.4.3 Project Organization 111 -- 5.5 Responsibility Assignment 112 -- 5.6 Milestone Sequencing 112 -- 5.7 Work Packages 113 -- 5.7.1 Assumptions 114 -- 5.7.2 Project Network 115 -- 5.7.3 Activity Duration Estimate 120 -- 5.7.4 Uncertainty Revisited 120 -- 5.8 Need for Cost Buffer 123 -- 5.9 Basis for Cost Estimates 124 -- 5.10 The Project Work Plan 124 -- 5.11 Change Management 125 -- 5.12 Project Closure 125 -- 5.13 Summary 125 -- References 126 -- 6 Developing the (Single-Project) Critical-Chain Plan 127 -- 6.1 Process 127 -- 6.2 Good Enough 128 -- 6.3 Examples and Practice 128 -- 6.3.1 Small Example 128.

6.3.2 Large Example 131 -- 6.3.3 Large Exercise 134 -- 6.4 Buffer and Threshold Sizing 135 -- 6.4.1 Statistical Background 135 -- 6.4.2 Project and Feeding Buffer Size 137 -- 6.4.3 Buffer Trigger Points 138 -- 6.4.4 Resource Buffers 139 -- 6.5 Cost Buffer Sizing 140 -- 6.6 Methods to Create the Plan 141 -- 6.6.1 Manual 141 -- 6.6.2 Critical-Path Software 142 -- 6.6.3 Critical-Chain Software 143 -- 6.7 External Constraints 143 -- 6.8 Reducing Planned Time (a.k.a. Dictated End Dates) 144 -- 6.8.1 Acceleration without Cost Impact (Exploit and Subordinate 6.8.1 to the Constraint) 144 -- 6.8.2 Acceleration with Increased Raw Material Cost (Elevate the 6.8.2 Constraint) 144 -- 6.9 Enterprise Wide Resource Planning 145 -- 6.10 Frequently Asked Planning Questions 145 -- 6.11 Key Points 148 -- 7 Developing the Multiproject Critical-Chain Plan 149 -- 7.1 Identify the Multiproject Constraint 149 -- 7.2 Exploit the Multiproject Constraint 153 -- 7.3 Multiproject Critical-Chain Features 154 -- 7.3.1 Project Priority 154 -- 7.3.2 Select the Drum Resource 154 -- 7.3.3 The Drum Schedule (a.k.a. Pipelining the Projects) 156 -- 7.3.4 The Capacity-Constraint Buffer 157 -- 7.3.5 The Drum Buffer 159 -- 7.3.6 Project Schedules 160 -- 7.4 Another View of a Multiproject Constraint 160 -- 7.5 Introducing New Projects 161 -- 7.6 Frequently Asked Multiproject Questions 162 -- 7.7 Summary 162 -- 8 Measuring and Controlling to the Plan 165 -- 8.1 Project Roles 166 -- 8.1.1 Task Manager Role 166 -- 8.1.2 Project Manager Role 167 -- 8.1.3 Resource Manager Role 170 -- 8.2 Buffer Management 171 -- 8.2.1 Project Meetings 171 -- 8.2.2 The Buffer Report 172 -- 8.3 Cost Buffer 174 -- 8.3.1 Cost Buffer Status 174 -- 8.3.2 Earned-Value Basics 175 -- 8.3.3 Cost-Buffer Penetration 175 -- 8.3.4 The Problem 176 -- 8.3.5 Labor Costs 176 -- 8.3.6 Material Costs 177.

8.3.7 Peaceful Coexistence of Buffer Reporting and Earned Value 178 -- 8.3.8 The So-called Schedule Variance 179 -- 8.4 Quality Measurement 179 -- 8.5 Responding to the Buffer Signals 180 -- 8.5.1 Schedule Buffer Exceeds Yellow Threshold 180 -- 8.5.2 Cost Buffer Exceeds Yellow Threshold 180 -- 8.5.3 Dollar Days™ Quality Increasing 181 -- 8.5.4 Schedule Buffer Exceeds Red Threshold 181 -- 8.5.5 Cost Buffer Exceeds Red Threshold 182 -- 8.5.6 Schedule or Cost Buffer Exceeds 100% 182 -- 8.6 Milestones 182 -- 8.7 Change-Control Actions 182 -- 8.8 Frequently Asked Measurement-and-Control Questions 183 -- 8.9 Summary 184 -- References 185 -- 9 Implementing the Change to CCPM 187 -- 9.1 Implementation Model 187 -- 9.1.1 Endorse the Implementation Project 188 -- 9.1.2 Charter the Implementation Project 188 -- 9.1.3 Begin with the End in Mind (Vision) 188 -- 9.1.4 Create the Implementation Project Work Plan 190 -- 9.1.5 Plan to Prevent or Mitigate Implementation Risks 193 -- 9.1.6 Just Do It! or Fake It Until You Make It 195 -- 9.1.7 Measure-and-Control Implementation 197 -- 9.1.8 What if Implementation Progress Stalls? 198 -- 9.2 Organization Change Theory 198 -- 9.2.1 Seven S Model 199 -- 9.2.2 3-4-3 200 -- 9.2.3 Appreciation for a System 202 -- 9.2.4 Resistance to Change 203 -- 9.2.5 Paradigm Lock 204 -- 9.3 Goldratt™s Resistance Model 205 -- 9.4 To Pilot or Not to Pilot? 206 -- 9.5 Example Objections 207 -- 9.6 Key Points 208 -- References 208 -- 10 Project-Risk Management 209 -- 10.1 Defining Project-Risk Management 210 -- 10.2 Risk-Management Process 210 -- 10.2.1 The Risk Matrix 211 -- 10.2.2 Incorporating Risk Assessment into the Project Process 213 -- 10.3 Identifying Risks 214 -- 10.3.1 Risk List 214 -- 10.3.2 Classifying Risk Probability 215 -- 10.3.3 Classifying Risk Impact 217 -- 10.4 Planning to Control Risks 217 -- 10.4.1 Risk Monitoring 217.

10.4.2 Prevention 217 -- 10.4.3 Mitigation Planning 217 -- 10.5 Key Points 218 -- References 218 -- 11 The Theory of Constraints Thinking Process Applied to Project Management 219 -- 11.1 Synthesizing the Principles 219 -- 11.2 Applying Goldratt™s Thinking Process to Project Management 220 -- 11.3 Current Reality Tree 222 -- 11.3.1 Policies, Measures, and Behavior 225 -- 11.3.2 Feedback Loops 225 -- 11.3.3 Scrutiny 226 -- 11.3.4 Buy-in 227 -- 11.4 Future Reality Tree 227 -- 11.4.1 Desired Effects 227 -- 11.4.2 Injections 227 -- 11.4.3 The FRT as a Guide for Change 229 -- 11.4.4 Feedback Loops 230 -- 11.4.5 Unintended Consequences (a.k.a. Negative Branches) 230 -- 11.5 Prerequisite Tree 233 -- 11.6 Transition Tree 233 -- 11.7 The Multiproject Process 235 -- 11.7.1 Multiproject CRT Additions 235 -- 11.7.2 Multiproject FRT Additions 236 -- 11.7.3 Multiproject PRT Additions 236 -- 11.8 Future Directions 237 -- 11.9 Summary 238 -- 11.10 Conclusion 239 -- References 239 -- Glossary 241 -- List of Acronyms 251 -- About the Author 253 -- Index 255.