SIP v1 (For Print)
SIP v1 (For Print)
SIP v1 (For Print)
Submitted By
Manasi Sanjay Badhe
Roll No. 61
MMS-II, Batch: 2018-20
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Declaration
I hereby declare that this report submitted in partial fulfillment of the requirement of the award
for the Master of Management Studies to Chetana’s R.K. Institute of Management and Research,
is my original work and not submitted for award of any degree or diploma fellowship or for
similar titles or prizes.
I further certify that I have no objection and grant the rights to Chetana’s R.K. Institute of
Management and Research to publish any chapter/ project if they deem fit in Journals/Magazines
and newspapers etc. without my permission.
Place : Mumbai
Date : 30-10-2019
Roll No. : B - 61
(Affiliated to University of Mumbai & Approved by AICTE, New Delhi)
Certificate
This is to certify that the project titled “Adaptation from Critical Path to
Critical Chain”, submitted by MANASI SANJAY BADHE to Chetana’s R. K.
Institute of Management & Research in partial fulfillment of the requirement of
Master of Management Studies, has been done under the guidance of the
undersigned during the period May 2019 to June 2019.
Date: 30-10-2019
Place: Mumbai
Firstly, I’m grateful to the placement committee of Chetana’s R.K Institute of Management
and Research for arranging the internship programme for us.
During my internship I was mentored by Proprietor Mr. Shashank Kotwal who enlightened me
with all the insights related to my internship. I was also very well helped and guided by him. I
want to thank him for his immense support.
I am very grateful to my Institute mentor Professor Mr. Sandeep Nemlekar for his precious
time, efforts, unconditional support and guidance throughout my internship and making of my
project a success.
I want to thank my Institute Director Dr. Jayshree Bhakay for giving me this opportunity.
I would want to also thank Mumbai University to add summer internships projects to our
curriculum.
Last but not the least I’m thankful to my Institute IT Lab who played a useful role in the
successful completion of the project.
This internship was a great experience and I will never forget these days.
Sincerely,
This report documents the work done during the summer internship with Shashank Kotwal &
Associates under the supervision of Mr. Shashank Kotwal (Proprietor).
The project is based on the Adaptation from Critical Path to Critical Chain. The purpose of
this project aims at two sides: firstly, it provides detailed outline of the problems associated with
conventional Critical Path Project Management and how Critical Chain Project Management has
played a part in reducing those problems.
The first part of the report contains general information about the company.
The second part focuses on the data collected about the CCPM. Along with this, the real-time
project is also scheduled using both CPM and CCPM methods to identify the optimal scheduling
technique using MS project 2010.
It shall also elaborate on the learnings received during internship and knowledge gained from the
project which can be persuaded as an advancement of the current work.
I have tried my best to keep report simple yet practically and theoretically correct.
Table of Contents
Chap. 1 Introduction
2.2 Objectives 12
Chap. 5 Annexures
Bibliography 24
Chapter 1
Introduction
The tasks which were performed during the internship are as follows:
Understanding the concepts of Critical Path Method which is an algorithm for scheduling
a set of project activities and its disadvantages
Understanding the theory of CCPM and how it is useful to avoid the pitfall of traditional
project management.
Shashank Kotwal & Associates provides process driven business. It brings competence which is
built on more than two decades of experience with a variety of engineering industries and diverse
functions. Quality equilibrium is established between management outlook and technical
cognition.
Various services offered at Shashank Kotwal & Associates are as follows:
In Strategy & Business Development, it offers services from Strategy formulation to Execution.
The services are divided into four groups.
1) Strategy Formulation Process:-
Organization’s core values and core purposes are supported by the formulation of
Vision and Mission statement.
Annual Planning Cycle would construct the Senior Manager’s guidance with
strategic purpose of individual business. It translates strategic purpose into
annual Balanced Scorecards and Operational Budgets.
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Strategy development framework for the organization would advice in self-
assessment and analysis of the strategic intent to join long term business plan.
Deployment of Balanced Scorecard of functions with the help of Policy
Deployment.
2) Strategic Analysis Frameworks:-
This includes Value Chain Analysis, Market Positioning, Technology
Forecasting, Scenario Planning, Porter’s Industry Analysis etc.
3) Strategy Planning & Execution:-
This includes Concept Development, Customer Relationship Management(CRM),
Channel Development, Business Development, Mergers & Acquisition, Strategic
tie-ups, Business Case preparation for new product/process, Product Planning.
4) Business Intelligence and Secondary Search:-
Industry networking, Customer insight studies, Industry data collection &
analysis, Competitive Intelligence.
Business Excellence
Quality Engineering
‘Building –in’ Quality is very important in Quality Engineering. Design function has the largest
hold on Product Quality is the base of this exercise.
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cost and duration roughly calculates often exceeded their initial calculations by atleast 40 to 50%
respectively. Critical path based project management was later introduced as a much required
remedy for such unsettled problems.
Critical Path Method (CPM) is a project scheduling method considered to correct the major
problems related with traditional project management techniques. The only purpose of the
CPM, since it’s rising into the project management world, has been to deliver projects within
original cost and time evaluates. In spite of its preference for satisfactory project scheduling, this
project management process disclosed many misbelieves which required to be corrected in order
to get satisfactory results.
The Critical Chain Project Management (CCPM), since its foundation in 1997, has been
considered as a major quantum leap in the project management area. It has modified most of the
problems that were permanent to CPM and other traditional PM methods, in addition to provide
a faster way of completing projects. Furthermore, CCPM appoints buffers to act as protection
against various problems that may emerge during projects execution.
One of the serious problems owing to which the timely completion based on a pre-planned
schedule becomes a non-success in many projects. There are noteworthy restrictions found with
conventional project management methods like Critical Path Method (CPM). It is also inevitable
for the project managers to face unpredictability. Beyond taking into account task relationships
alone between the tasks, it also require a strong planned method in the view of resource
constraints and undetermined conditions in project scheduling in order to obtain vigorous and
authentic project. The limitations in the conventional methods inspired people to develop a new
scheduling technique called Critical Chain Project Management.
CCPM is a method of planning and managing and unreliability in the projects that emphasizes
resources to execute project tasks. Distributing the concept of Theory of constraints (TOC) into
the project management gives productive and structured CCPM.
1.3.1 What are the problems associated with Conventional Scheduling methods?
1. Student Syndrome (assumption of having more time to finish the task)
2. Parkinson’s Law ( expands work to fill allotted time for its completion)
3. Wasting extra safety time
4. Multi-Tasking with same resource
5. Path-merging (Non-critical path merges with Critical Path)
1.3.2 How to solve difficulties in traditional methods?
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CCPM tries to find solution to the problems in conventional method by the following
ways.
1. Eliminating due-dates and milestones
2. Providing practical estimates of 50% level and not a negative approach of 90% level
(Viewing pessimistically that all tasks will finish late)
3. No blaming culture
4. Scheduling non-critical activities as late as possible
Project managers are accountable for the easy execution of projects. They face loads of
problem during the project planning, scheduling and control phase. These problems lessen
the efficiency of project causing unpredicted delays and dispute among the project resources.
Some of the root causes of these problems as mentioned by Dr. Goldratt(1997) are:
Student Syndrome: - People assume that there is enough time to finish the project
and wait until deadline is in close proximity.
Parkinson’s Law: - Work expands to fill the available time for its completion.
Murphy’s Law:- viewpoint that “ anything that can go wrong will go wrong”
Multi-tasking:- Assigning multiple tasks to the same resource
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Larry Leach has described the various improvements that CCPM has introduced over
traditional PM techniques. The use of Critical Chain Scheduling and the use of safety
buffers have got project measurement and control to completely different level. CCPM
has added to the Project Management Body of Knowledge (PMBOK) by forming project
planning and management in a way so as to remove the problems that resulting in poor
project performance.
In project planning phase, project layout is constructed- firstly the sequence of activities
or task in the project and then a network diagram that represents the activities or task.
This is done by following steps:
Identify tasks to be executed in the project
Determine required resources –material, manpower, money etc.
Allot responsibilities for each work
Assign resources to work
Calculate cost and time at different project levels
Develop work performance benchmark
Develop control channels for project members
In Scheduling phase, each task’s duration is estimated and the approximate deadline of
completion is calculated. This phase has following steps:
Identify all the individuals accountable for each task
Calculate approximate duration of each task resources required to finish it
Identify inter-dependencies between tasks
Calculate total project duration, establish critical path, analyze floats
In the project control phase, current progress of the project is estimated against the plan.
If differences are noticed, then the scheduling and allocation of resources decision are
made to revise incomplete part of the project.
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1.6.2 Critical Path Method (CPM)
The critical path method is project scheduling technique introduced in the 1950s by
Morgan R. Walker and James E. Kelley. It is most popular project scheduling technique.
Critical Path gives the sequence of project network activities or task which summarize to
the longest overall duration. Thus gives the shortest time to finish the project. Therefore,
entire project will be delayed even if one task in the critical path is delayed.
CPM uses a Work Breakdown Structure (WBS) where the projects are divided into
individual tasks. These tasks are inter-dependent and the success and timeliness of the
project depends upon how these tasks are sequenced and how the resources are utilized.
Critical Path Analysis (CPA) has following disadvantages:
As the number of activities increases, the critical path becomes complicated. Thus
there may be risk everywhere of making miscalculation due to over faith on the
technique.
People add more safety to each task without considering incentives to finish early.
The focus is mostly on task than on resource dependencies. Resources are ignored
or considered after critical path is identified, hence causes non-critical tasks more
critical.
CPM assumes that project manager and working staff are well familiar with the
task and inter-dependencies. Unfortunately the ability of project team to forecast
the scope schedule and project cost is out of control.
Critical paths are unbalanced and may change during the project execution.
Considering above mentioned problems, CPM has caused to lot of depression. For
many years, project managers and analysts were searching for a reliable method of
project planning and scheduling which was found by Dr. Goldratt in 1997 known as
Critical Chain Project Management.
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There are five focusing steps in TOC:
Steps Objective
Identify Identify the Constraint
Exploit Make improvement to the throughput of the constraint using existing
resources
Subordinate Review all other activities in the process to ensure that they are truly
supporting need of the constraint
Elevate If the constraint still exist, make further actions to eliminate it from the
being the constraint
Repeat Five focusing Cycle is the continuous improvement cycle. Hence, one
constraint is resolved next should be addressed immediately.
As per PMBOK, “Critical Chain method is a schedule network analysis technique that
modifies the project schedule for limited resources.” CCPM represents a project planning
and scheduling technique capable of adjusting the project schedule according to its own
convenience, to facilitate limited resource allocation, without compromising project
deadline or the cost.
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i. Determine the 50% duration estimate of the tasks and find the primary resource
constraints.
ii. Identify the resource conflict and start to resolve them with closest task to the
completion of project date or with the task showing most conflict.
iii. Once all the resource conflicts have been resolved, identify the critical chain as
longest chain of dependent events.
iv. Put Project Buffer at the end of the critical chain.
v. Put feeding buffer wherever non-critical chain tasks try to feed into critical-chain.
vi. Time constraints with the tasks having no predecessors should be modified to “as
late as possible” so that multi-tasking can be avoided.
vii. Use buffer management to control plan. Buffers give information to project
manager about when to plan for recovery and when to take recovery action.
The most common buffer sizing methods are C&PM and RSEM methods.
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1.7.2.1 Cut and Paste Method (C&PM)
Cut & Paste method was developed by Dr. Goldratt and is the simplest method. It is also
known as “50%of the Critical Chain”. In this method, buffer size is calculated as half of
the duration of the longest path in the chain. The resultant number would be used as the
feeding buffer.
The advantage of this method is it simple and easy to implement. Contrary, major
disadvantage of this method is size of the buffer increases with the size of the feeding
chain. This method suffers from oversimplification and should be used carefully.
The main advantage of this method is that generates buffer are neither very large nor very
small in size and not affected by length of the feeding chain.
These color-coded signals are indicators helps in decision making with respect to
resource usage and task performance.
If the buffer goes into green zone then no action to be taken. If buffer goes into yellow
zone then one need to measure the problem and take possible course of action. If buffer
goes into red zone then project manager require to focus on completing the incomplete
tasks in critical chain and find out ways to ensure that buffers do not go into the red zone.
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1.9 Difference from Traditional Project Management
CCPM is different from traditional project management methodology in following ways:
i. Determine the Critical Chain, the longest chain of activities that considers task
and resource dependencies. Unlike critical path, critical chain does not change
during execution of the project.
ii. It utilizes 50% duration estimates and deals with uncertainties in the project
environment.
iii. Buffers are used to control the schedule of the project.
iv. It inspires positive attitude among project managers and team members. It
encourages workers to early completion of tasks and removes multitasking by
allocating 100% of a resource to individual tasks rather than assigning multiple
tasks to the same resource at the same time.
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Chapter 2
Project Details
The paper describes the theory and practice of critical chain project management
(CCPM). CCPM provides considerable step in the continuing development of Project
Management Body of Knowledge. The critical chain is different from critical path by
involving resource dependencies. CCPM enhances the project plan by making sure that it
is feasible and resistant from reasonable common cause variation (uncertainty). It is done
by accumulating uncertainty into buffers at the end of active paths or chains. The project
buffer safeguards the overall project completion on the critical path, and feeding buffers
safeguard the critical chain from path merging. Buffer management increases
measurement and decision making for project control. CCPM implements changes
required in resource behavior, including removal of date-driven activity performance and
multitasking. Overall, CCPM enhances project manager and performer’s focus. Projects
having CCPM has greatly improved schedule record, scope of performance and cost.
In this paper author analyze the Critical Chain (CC) perspective towards managing
projects. The authors conclude the ideology behind the CP and CC method is
different for different mindset for managers and different set of management
practices. The main difference is the application of Theory of Constraints (TOC) in
the CC case. CC focuses on improving the performance of the system by putting
specific policies which are focused on resource management particularly in
multiproject environment that are not clearly not considered in CP.
Priyanka P (2012)
3. Critical Chain Project Management
This paper explains the methodology used for the application of CCPM in Brigade
Exotica. Since 1986 Brigade group’s main focus is in property development. World
Class Organization is the vision of Brigade Group and hence a breakthrough in their
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operation is required. Because of market competition, developing projects obtain
more functions resulting in increasing complexity and uncertainty. To deal with this
uncertainty, to enhance project protection from delays and to increase schedule
performance and reliability, Brigade Exotica determined to jump on the Critical
Chain Project Management (CCPM) approach at its Construction Department.
Meeting project due dates is the vital key element for project based organizations like
Brigade Group for the introduction of a new product on the market successfully. The
first part of this paper explains on the Critical Chain rules and learns how it differs
from conventional project scheduling. The second part explains the elements of
CCPM solution. It also includes a guide for project manager who wants to finish
assigned projects on time, within budget.
To learn the CCPM techniques and its advantages over the conventional CPM method by
comparing both the methods
To differentiate between the CCPM method of scheduling and the conventional CPM of
scheduling with the help of the MS project software in order to ascertain is more reliable
and efficient.
2.3 Methodology
The paper compares CCPM method the traditional CPM through a case study of
construction of a pump house. The data is collected from real-life project. The dates are
slightly modified for convenience. The activities of each task and buffers are figured out
and it is reviewed. The MS project software is used as a scheduling tool in the project.
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Chapter 3
Data Analysis and Findings
In the project planning phase, the duration of each task is estimated and resources are
assigned to them. While planning is critical, it is important to track the actual progress of
the project against the set plan. Baseline is used to compare the estimates against the
actual.
On the initiation of construction related project, a baseline CPM schedule is developed by
construction manager to understand how he wish to organize his resources and execute
the project in timely manner. Once the baseline schedule is published, the construction
manager’s progress can be regularly monitored and evaluated to determine what activities
are critical to complete the project by updating the baseline schedule.
A baseline CPM is important to make sure that the schedule is reflection of project scope
and is compatible with the advised scheduling specifications of the project and the
construction manager’s pre-described plan for executing the project.
Besides, it is essential to understand the importance of properly updating the CPM
schedule to include current scope of work remaining, actual start and finish dates for
activities completed and work sequencing for the balance of the work remaining as of the
observation date.
The simulation software MS Project is used for the purpose of scheduling and identifying
Critical Path. The original project schedule is shown in Fig 2(a) & 2(b).
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Fig. 2(a). Original Schedule
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Fig. 2(b) Gantt Chart
At this stage, before the starting of the project, it is important to understand the critical
tasks that the project manager requires to work with. These tasks are critical as in that a
delay in any of these tasks would ultimately delay the entire project. The critical path for
the project is shown in Fig. 3(a) & 3(b).
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Fig. 3(a). Representation of the tasks and their duration estimates
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Fig. 3(b) Gantt Chart View of the Critical Path (in red)
Fig. 4. Tracking Gantt View of the completed tasks as well as the tasks in progress
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Result & Discussion
As per above studies, it can be stated that the critical path developed in Fig 3(a) & 3(b),
allows project manager to focus on the critical tasks so that it should not cause any
unjustified delays in the project completion date. The duration of the project is 143 days.
The baseline was set for 25th March to compare the progress of the project against
scheduled plan. The summary of the project is given below.
Critical Path Project Management Method does not provide any incentives for early
finishing of tasks. That combined with variety of problems affect the efficiency of
technique. These issues are solved by applying the Critical Chain-based Project
Management Technique.
The identification of Critical Chain begins with determining 50% duration estimates of
the tasks, as shown in Fig. 5(a) & 5(b).
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Fig. 5(a). Critical Chain schedule with 50% activity duration
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Fig. 5(b). Gantt Chart View
All resource conflicts are solved before identifying the critical chain. Critical Chain is
then identified which deals with both task as well as resource dependencies. In the next
step, buffers are inserted wherever needed. Firstly, project buffers are inserted at the end
of the critical chain and after that feeding buffers are inserted where the non-critical tasks
feed into the Critical Chain. The process of buffer sizing has already been discussed in
detail. The Critical chain and necessary buffers are shown in Fig. 6(a) & 6(b).
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Fig. 6(a). Details of Tasks showing buffers
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Fig 6(b). Gantt Chart View displaying the Critical Chain and the Buffers inserted.
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Chapter 4
Conclusions & Recommendations
This paper states the many problems associated with the most commonly used project
management technique i.e. the Critical Path Method (CPM), while also enlighten on the
evolving Critical Chain Project Management (CCPM) technique.
These days, major industrial organizations struggle to achieve a high level profit on their
projects which can be fulfilled by reducing the average duration of the tasks. CPM
provides knowledge of the tasks that may cause a delay in the project completion but the
project is spoiled by several problems. CPM is less focused on the resources and is more
focused on the finishing the project on time. Multi-tasking often lead to over-allocation of
resources has also become a cause in this particular method. Furthermore, student’s
syndrome, Parkinson’s Law, Murphy’s Law etc. prevent the project manager’s ability to
execute the project in a timely and systematic manner.
From the case research analysis presented in this paper, it can be concluded that CCPM
has the following advantages over CPM:
Project duration can be reduced by 20-30%
Project is focused on the both critical as well as non-critical tasks.
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Annexures
Bibliography
The following are the web links and references used for the study of this project
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