Project Management: A Comprehensive Guide to the Critical Chain Method

This presentation provides a comprehensive overview of the Critical Chain Method (CCM) in project management. It begins with an introduction to CCM, its historical background, and its origins in the theory of constraints. The presentation details the advantages of CCM, such as increased efficiency, better resource allocation, and timely project completion, while also acknowledging its disadvantages, like the need for team commitment and potential internal challenges. A key aspect is the comparison of CCM with the Critical Path Method (CPM), highlighting the differences in buffer management and task prioritization. The presentation argues for the superiority of CCM, explaining how it enhances resource availability and reduces schedule risks. Finally, it provides two real-world examples of CCM implementation in construction and IT projects, demonstrating its practical application and effectiveness in various scenarios. The presentation includes references to academic sources to support the claims and arguments.

Introduction
 This presentation focuses on the critical chain method used in project
management. The historical background of how this method was originated,
the merits and demerits of critical chain method, comparison of critical
chain method with critical path method, the most efficient method and few
examples of critical chain method is illustrated in this presentation.

Critical chain method
 Critical chain method puts activities together in a chain and allocating
minimum time for each activities.
 Creates buffers for dealing with unavailability of resources thus shielding
the project from slipping.
 It assists the project manager in managing and planning the schedule of
the project through eliminating dearth of resources.
 This method is based on the availability of resources and uncertainties.

Critical chain method
 The buffers used are of four types:
 Project buffer: shields the task from missing the deadline without changing
the end date (Zhang, Song & Díaz, 2016).
 Feeding buffer: added between the final project in a non-critical chain and
critical chain which ensures that any delay occurring in the non-critical chain
does not have any influence on the critical chain (Iranmanesh, Mansourian
& Kouchaki, 2016).

Critical chain method
 Resource buffer: this is added in the critical chain for ensuring adequate
availability of resources throughout the task.
 Capacity buffer: this buffer provides emergency resources for any
unpredictable budget issues occurring during the project.

Background of critical chain
method
 Critical chain method was originated in year 1997 by Dr. Eliyahu M. Goldratt
for dealing with the failure of incompletion of tasks within the time frame
and budget.
 This method was first incorporated by Dr. Goldratt in the theory of
constraints in which he aimed to fix bottlenecks for enhancing workflow
(Leach, 2014).

Background of critical chain
method
 Traditional methods of project management failed to complete the project
on time and within the estimated budget therefore this critical chain method
was developed to enhance the performance and timely completion of
projects.

Advantages of critical chain
method
Critical chain method is one of the most important project incorporated by
modern day business as it provides a numerous advantages such as:
 The method makes people more attentive to their work which as a result
increases the efficiency and productivity of the team.
 The method eliminates maladministration of floats (Peng & Huang, 2014).
 It helps to complete the task within the estimated budget and sometimes
even much lower than the budget.

Advantages of critical chain
method
 It facilitates in completion of the project within the limited time frame (Peng
& Huang, 2014).
 This method enhances speedy completion of the projects (Zhang & Liang,
2018).
 It facilitates in overcoming the syndrome of working extra hard when the
deadline approaches.

Disadvantages of critical chain
method
 The critical chain project helps the team to adjust to the changes caused by
the method. While doing so it will need commitment from the team
members, team leader and stakeholders. Setbacks can occur within the
team if they are not familiar with the method and does not see the finish
line.

Disadvantages of critical chain
method
 Internal politics, external pressure and twisting estimates for finishing the
project are essential to completing the project within the assigned deadline.
However the critical chain method does not address these factors and it
does not support any other planning package either.
 The late start projects have a scheduled deadline as-late-as possible.
Hence the projects does possess a negative slackening value, thereby all
these projects are critical. It can lead to a negative time estimate which
might negatively impact the deadline of those projects (Ghaffari & Emsley,
2015).

Figure – 1.1
Source – created by author

Critical Path Method vs. Critical Chain
Method
 Critical path method
Task 1 Task 2 Task
3
 Critical chain method
Task 1 Task 2 Task 3
Task
Buffer
Task
Buffer
Task
Buffer
Project Buffer
Figure – 1.2
Source – created by author