Critical chain project management

Critical chain project management (CCPM) is a method of planning and managing projects that emphasizes the resources (people, equipment, physical space) required to execute project tasks. It was developed by Eliyahu M. Goldratt. It differs from more traditional methods that derive from critical path and PERT algorithms, which emphasize task order and rigid scheduling. A critical chain project network strives to keep resources levelled, and requires that they be flexible in start times. Critical chain project management is based on methods and algorithms derived from Theory of Constraints. The idea of CCPM was introduced in 1997 in Eliyahu M. Goldratt's book, Critical Chain. The application of CCPM has been credited with achieving projects 10% to 50% faster and/or cheaper than the traditional methods (i.e., CPM, PERT, Gantt, etc.) developed from 1910 to 1950s. According to studies of traditional project management methods by Standish Group and others as of 1998, only 44% of projects typically finish on time. Projects typically complete at 222% of the duration originally planned, 189% of the original budgeted cost, 70% of projects fall short of their planned scope (technical content delivered), and 30% are cancelled before completion. CCPM tries to improve performance relative to these traditional statistics. With traditional project management methods, 30% of lost time and resources are typically consumed by wasteful techniques such as bad multitasking (in particular task switching), student syndrome, Parkinson's law, in-box delays, and lack of prioritization. In a project plan, the critical chain is the sequence of both precedence- and resource-dependent tasks that prevents a project from being completed in a shorter time, given finite resources. If resources are always available in unlimited quantities, then a project's critical chain is identical to its critical path method. Critical chain is an alternative to critical path analysis. Main features that distinguish critical chain from critical path are: Use of (often implicit) resource dependencies.