Traditional Measures in Finance and Accounting, Problems, Literature Review, and TOC Measures (Chapter 13 of Theory of Constraints Handbook)

This is an individual chapter of Theory of Constraints Handbook. Designed for those fairly new to Critical Chain concepts, this chapter compares traditional (critical path) project management with the Critical Chain approach. The rationale for the Critical Chain approach is presented, along with its key elements. A seven-step process for scheduling a complete project is demonstrated with a simple example, including where, in what order and in what size, buffers should be established. To the extent possible, resource contention is eliminated as a project is scheduled. Communications then play an essential role in insuring that Critical Chain tasks are not delayed. Innovative work policies minimize ineffective and inefficient multi-tasking. In a multiproject environment, project priorities are established and entry of new projects into the system are appropriately sequenced. The chapter also addresses project operational control through buffer management, project budgeting, reporting project progress externally, and how Critical Chain might be implemented using a Critical Chain implementation empowerment model.