project management beyond critical chain scheduling (journal article presentation)
TRANSCRIPT
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“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
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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
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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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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9Why the emphasis on scheduling?
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© J
ames
Bar
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, The
Ver
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10The Project and The Product lifecycle
September 16, 2016 - …
June 29, 2007 - July 15, 2008
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© G
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Executive
Summary
11Contents
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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“The optimum number of new product
development projects assigned concurrently to a
single engineer is two”, Clark & Wheelwright
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© A
lexi
Fal
son,
Per
form
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Dri
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© G
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Executive
Summary
14Contents
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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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
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© G
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Executive
Summary
16Contents
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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17More applications of TOC principle to project management 1. Cost Management
Ref: Steyn, H. (2002). Project management applications of the theory of constraints beyond critical chain scheduling
$161
$110 1.1
1.21
1.61*
Snowballing of costs
Planned cost vs Budgeted costPossible Issues
"No blame" culture
n ×σ
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n ×σvs
*1.15
18More applications of TOC principle to project management 1. Cost Management
Ref: Steyn, H. (2002). Project management applications of the theory of constraints beyond critical chain scheduling
$161
$110 1.1
1.14
1.22*
Snowballing of costs
Planned cost vs Budgeted costPossible Issues
"No blame" culture
n ×σ
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n ×σvs
$122
*1+ 5 × 0.1
© G
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Executive
Summary
19Contents
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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20Ideas and Applications for the future
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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
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Thank you for your attention!
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