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Critical Chain

Critical Chain. Chapters 4-6. What is a project?. Textbook definition: “ A set of activities aimed to achieve a specific objective and have a clear start, middle and end”. Professor Silver’s definition:

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Critical Chain

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  1. Critical Chain Chapters 4-6

  2. What is a project? Textbook definition: “ A set of activities aimed to achieve a specific objective and have a clear start, middle and end”. Professor Silver’s definition: A complex initiative that needs pictures, diagrams, time charts, or showing sequential or parallel steps in order to manage it.

  3. General Project Problems Regardless of industry or project type, there are three common problems to all projects: • Budget overruns • Time overruns • Compromising content

  4. B.J Von Braun - President of University Saturating demand for new MBAs Overextending capacity Large fixed overhead for business program that might potentially decline Christopher Page – Dean of Business School Demand will not taper off Need investments to maintain talent in the business schools Talent will bring increase reputation and increase demand Conflicts - The Meeting

  5. Meeting Adjourns Agreements: • Ability of graduates to get jobs as indicators of demand • Use of survey tool as measurement BJ VonBraun already has the results – she gets Page to agree to the decision-making conditions, then shares results with him.

  6. Class Example – New Production Facility Built in Malaysia • Sacred cow project for CEO • Project is grossly over budget and significantly late • Payback period pushed from 3 to 5 years, which still seems unrealistic • All use uncertainty as reasons for delay - Upper management blames external environment and lower ranks blames internal sources

  7. Conclusions • Most problems in projects are direct or indirect results of uncertainty • Most individuals add a safety margin to any deadline, usually around 80%

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