This podcast episode discusses critical chain project management (CCPM), an application of the Theory of Constraints (TOC). The interview with Alan Elder, PMP, explores why projects are often late, and how CCPM offers a more effective approach to project scheduling and management. The episode also includes an announcement regarding PMI-approved PDUs for listening to project management podcasts.
According to Alan Elder in the interview, four key areas cause projects to be late:
Parkinson's Law: Work expands to fill the time available. People, given a longer time estimate for a task, will unconsciously take that longer time, even if they could complete it faster.
Student Syndrome: Procrastination; people delay tasks until the last minute, leading to rushed work and potential delays.
Bad Multitasking: Juggling multiple projects simultaneously causes context switching and reduces efficiency, resulting in overall delays. It's only "bad" multitasking if someone is waiting for the output of the task.
Integration: The cumulative probability of dependent tasks failing to complete on time significantly increases the likelihood of project delays. A 90% chance of on-time completion for each task in a sequence results in a much lower probability of overall on-time project completion.
The time it takes a company to convert to critical chain thinking depends heavily on the organization's culture. While the technical conversion (training, schedule adjustment) could be done almost overnight, the cultural shift towards trust and a different approach to accountability takes longer. Some companies might see a shift within a week with the right mindset, while others require pilot projects (which Elder argues are ineffective), and the process can take considerably longer due to resistance to change.
According to Alan Elder, earned value management (EVM) can be used alongside critical chain, but not in the same way it's traditionally used. EVM is best used as a conformance tool for external reporting to stakeholders who require that specific format. However, EVM shouldn't be used for day-to-day project management decisions because it treats all tasks equally, whereas critical chain prioritizes tasks on the critical chain. Internal project management decisions should be based on the critical chain's progress and the utilization of buffers. Essentially, use EVM for external reporting and critical chain for internal management. Some software packages now integrate both systems to streamline reporting.
Alan Elder recommends focusing on books rather than websites, as most websites primarily focus on self-promotion. He suggests starting with Eliyahu Goldratt's Critical Chain, which provides a good understanding of why the method works, followed by Larry Leech's Critical Chain Project Management (2nd edition) for practical implementation steps. For software project management specifically, he recommends Agile Management Using the Theory of Constraints for Software Projects.
