The Book of Dolphins - Volume 1

Critical Chain Project Management

Wolfram Müller
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Contents

I Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
I1 About Us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

I2 The Why? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

I3 The Reality in Multi-Project Environments . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

I4 More Projects in Less Time - Future Picture . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

I4.1 Local vs. Global Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
I4.2 Management Needs Transparency and Predictability . . . . . . . . . . . . . . . . . . . . . 8
I4.3 The Miraculous Change in the Appreciation of Constraints . . . . . . . . . . . . . . . . . 9
I4.4 Employees Need a Focused and Satisfying Work Environment . . . . . . . . . . . . . . . 10

I5 What’s in it for me? What’s in it for us? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

I5.1 How to Calculate a Growth Business Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
I5.2 Impact on Culture and Cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

A CCPM Cookbook - The Method . . . . . . . . . . . . . . . . . . . . 17

A1 WIP and Resource Usage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
A1.1 The Vicious Cycle of Work-in-Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
A1.2 How to Identify the Constraint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
A1.3 How to Break the WIP Trap - Stagger at the Constraint . . . . . . . . . . . . . . . . . . . 21
A1.4 How to Exploit the Constraint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

A2 Good Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

A3 Project Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
A3.1 Estimations and Wrong Assumptions in Classical Project Planning . . . . . . . . . . . . 28
A3.2 Studenten-Syndrom & Parkinsons Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
A3.3 Plan for the Unforeseen - Project Buffer and Estimates . . . . . . . . . . . . . . . . . . . 30
A3.4 Leadership Principles for Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
A3.5 Integration or Feeding Buffer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
A3.6 Milestones - Good or Bad? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
CONTENTS

A4 Execution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
A4.1 Priorities: Why Do I Need Operational Priorities? . . . . . . . . . . . . . . . . . . . . . . 35
A4.1.1 The Fever Curve in CCPM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
A4.1.2 Buffer Index as Operational Priority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
A4.2 Strategic and Operational Priority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
A4.3 Closed Loop Control Mechanism in CCPM . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
A4.3.1 Steering Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
A4.3.2 Pipeline Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
A4.3.3 Shop Floor Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
A4.3.4 Daily Project Team Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
A4.4 Specific CCPM Role Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
A4.4.1 Project Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
A.4.4.2 Resource Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
A.4.4.3 Task Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
A.4.4.4 Pipeline Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
A4.4.5 Top Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
A4.4.6 Full Kit Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
A4.5 Relay Runner Principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
A4.6 Dashboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

A5 Learning as Fast as Possible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

A5.1 Stabilize CCPM Methods and Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
A5.2 FIP - Focused Improvement Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

S CCPM Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
S1 In a Nutshell“ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

S2 Success Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

B Deep Dives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
B1 Physics of Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
B1.1 Little’s Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
B1.2 Goldratt’s Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
B1.3 The Math Behind Estimations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

B2 From Bottleneck to Constraint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

B2.1 Abstractions of Constraints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
B2.2 Where the Constraint Should Be . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
B2.3 Typical Organizations and Their Constraints . . . . . . . . . . . . . . . . . . . . . . . . . . 74

B3 Strategic Priority: Business Value Optimization . . . . . . . . . . . . . . . . . . . . . . . . . 77

B4 Excursus: Critical Path and Critical Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

B5 From Buffers and Their Sizing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

B5.1 The Math Behind Buffer Sizing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
B5.2 Buffer Sizing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
B5.3 Feeding Buffers When Chains Are Equally Long . . . . . . . . . . . . . . . . . . . . . . . 85
 1

You are reading a very special book! It is mainly created by a large language model (in this version
chatGPT3.5turbo with additonal Input s. https://DolphinGPT.ai).
The content itself is contributed by:

• Kerstin Zulechner - https://zulechner.de

• Frank Erbacher - https://www.ccpm-consulting.com
• Wolfram Müller - https://DolphinUniverse.Team

Together we have over 70 years of experience in CCPM and over 60 implementations.

The book is licensed under Creative Commons BY-NC-SA 4.0 - so you can use it freely, but don’t
forget to add a copyright notice on DolphinUniverse.Team.

Figure 1. © Creative Commons BY-NC-SA 4.0 DolphinUniverse.Team

If you want to know more about CCPM and how to implement it successfully, please feel free to
contact one of us.
Special thanks to Ken Tyler! He had the idea to build an AI chatbot for #TheoryOfConstraints,
#Agile and #Lean - i.e. our https://DolphinGPT.ai. This chatbot was the trigger to have this book
written by AI. So 1000 times thanks to Ken!
I Introduction
In today’s fast-paced and demanding world, organizations often find themselves struggling to
deliver projects on time and increase their overall throughput. This constant struggle not only affects
the success of the projects but also takes a toll on the people involved. The frustration and stress that
come with consistently falling behind schedule and failing to meet targets can be overwhelming.
That is why this book, “The Executive Guide to Breakthrough Project Management,” is so important.
It aims to bring back the fun and excitement to work by providing a comprehensive learning guide
for both learners and our customers. We believe that by implementing the principles and techniques
outlined in this book, organizations can break free from the cycle of poor project performance and
create a more productive and fulfilling work environment.
As a critical chain multi-project management expert, I have witnessed firsthand the impact
that inefficient project management practices can have on individuals and organizations. It is
disheartening to see talented and dedicated professionals struggle to meet deadlines and achieve
their goals due to outdated and ineffective processes.
Through this book, we aim to provide a solution to this problem. By introducing the concept
of critical chain multi-project management, we offer a new and innovative approach to project
management that focuses on improving performance, reducing risk, and increasing efficiency. This
approach has been proven to be effective in various industries and has the potential to revolutionize
the way projects are managed.
We understand that change can be challenging, especially when it comes to implementing new
methodologies and practices. However, we firmly believe that the benefits of adopting critical
chain multi-project management far outweigh the initial difficulties. By embracing this approach,
organizations can not only deliver projects on time but also increase their overall throughput, leading
to higher customer satisfaction and improved financial performance.
In conclusion, the time for change is now. We cannot continue to tolerate the struggles and
frustrations that come with poor project performance. This book serves as a guide to help
organizations break free from these limitations and achieve breakthrough project management. By
implementing the principles and techniques outlined in this book, we can bring back the fun to work
and create a more productive and fulfilling environment for all.
The book is structured into three parts, each focusing on different aspects of project management.
In Part 1, the introduction, the author explores why organizations struggle to achieve a state of flow
and outlines the underlying problems that hinder productivity. This section serves as a starting point
 3

for readers to understand the challenges they may face and provides insights on how to overcome
them.
Moving on to Part 2, the book offers a practical guide for both customers and beginners to quickly
grasp the essential concepts of Critical Chain Project Management (CCPM). This section is designed
to be hands-on and provides step-by-step instructions on how to implement CCPM effectively. It
serves as a valuable resource for those who are new to CCPM and want to learn the key principles
without any unnecessary complexity.
For readers who want to delve deeper into the subject, Part 3 offers “deep dives” into specific aspects
of CCPM that can help them excel even further. This section provides a more comprehensive
understanding of the method and explores advanced techniques and strategies. It is aimed at
individuals who are already familiar with CCPM and want to expand their knowledge and skills.
Throughout the book, the author emphasizes the importance of achieving a state of flow in project
management. This state of flow encompasses organizational, psychological, and financial aspects,
and the book provides insights and inspiration on how to attain this hyper-productive state. It
encourages readers to think creatively and find their own solutions by combining the practical
foundation presented in Parts 2 and 3 with the ideas, principles, and values described in Part 1.
Overall, the book offers a comprehensive approach to project management, combining the principles
of CCPM with other methodologies such as Kanban and Scrum. It provides a roadmap for
organizations to improve their operational flow and ultimately achieve hyper-productivity. Whether
you are a business owner, CEO, project manager, or team member, this book offers valuable insights
and practical guidance to help you succeed in managing projects more effectively.
I1 About Us
We are a team of experts in project management, specializing in various areas such as TOC, Critical
Chain, agile project management, process management, and organizational development. Our goal
is to enable performance and agility in organizations by making project management agile and
reliable.
Kerstin Zulechner is a long-standing trainer for top managers and the founder of “factro,” a WebApp
for tasks and projects. She has expertise in project management, innovation, digital strategies,
change management, and the development of leadership skills. Kerstin also provides systemic
consulting for organizations and offers training, coaching, and moderation services. Additionally,
she has knowledge in project management software and collaboration tools.
Wolfram Müller focuses on enhancing multi-project management with bottleneck and buffer man-
agement from the Theory of Constraints (TOC), also known as Critical Chain Project Management
(CCPM). His approach enables agility on the team and work-package level, while maintaining
clear priorities from the project world. This results in an optimal flow of work, agility, and full
transparency. Wolfram’s goal is to make the knowledge of achieving high-performance in the
shortest possible time available to all organizations. He believes that there is powerful knowledge on
how to bring systems and people to a state of flow, and he aims to make it accessible and applicable
for everyone through DolphinUniverse.
Frank Erbacher, the CEO of CCPM Consulting GmbH, brings 20 years of experience as a technical
leader and board member. He specializes in multiproject management (CCPM), project acceleration,
and transformation projects. Frank also has expertise in mediation and serves as a mediator in
business disputes.
Together, we offer a comprehensive range of services to help organizations achieve their project
management goals. Whether it’s implementing agile methodologies, optimizing processes, or
developing leadership skills, we have the expertise to support organizations in their journey towards
performance and agility.
I2 The Why?
The DolphinUniverse mission is to provide the knowledge and skills for maximizing throughput
and improving workplace culture to as many companies and organizations as possible. We empower
users to apply advanced management concepts like “Theory of Constraints” and “Self-Organization”
to their organizations, projects, and products. Our goal is to make the application of these concepts
easy for all and to actively support organizations that do good.
DolphinUniverse is a worldwide community of management consultants, experienced managers,
users, and tool suppliers, all known as dolphins. We share a passion for optimizing throughput
and continuously improving the ideas and products of DolphinUniverse. Our community thrives
on exchanging knowledge, ideas, and cooperation between its members. WhiteDolphins, who are
independent entrepreneurs, extend DolphinUniverse by adding their own value and creating product
extensions while maintaining their brand and customers.
Our mission is to nourish the DolphinUniverse community and let it grow sustainably. The growth
of the community directly impacts its impact. We aim to provide knowledge and support to users at a
reasonable cost, while supporters and suppliers earn their share based on their investment in projects.
We strive to minimize the effort, cost, and time required for the DolphinUniverse transformation
and invest heavily in quality assurance to ensure a successful transformation.
Ethics and values are essential to DolphinUniverse. Our purpose is not to maximize profit, but
rather to ensure that all supporters and dolphins can earn a good livelihood. We refuse to support
organizations that violate sustainability, human rights, or engage in military activities. We believe
in open knowledge and make everything generated in the name of DolphinUniverse available to
everyone using the Creative Commons BY-SA licenses.
The methodological core of DolphinUniverse is constraint management and self-organization. We
focus on identifying and addressing the constraints that limit productivity in an organization. E.
Goldratt’s Theory of Constraints has been proven over 30 years to achieve substantial productivity
gains with minimal investment. We utilize blueprints developed by the Theory of Constraints for
different corporate situations, such as Critical Chain Project Management for project organizations
and Drum-Buffer-Rope for productions.
Self-organization, as defined by H. Haken and G. Schiepek, is the key to fast and sustainable
processes. It has been known for over 50 years and has transitioned into change management in
recent years. The idea is to introduce self-reinforcing processes that set profound change in motion,
allowing the organization to master the change on its own. Self-organization focuses on adapting
the control system rather than adapting the human being, reducing the inflow of orders or projects
and providing a signal for everyone to align their decisions with the whole easily.
I3 The Reality in Multi-Project
Environments
In today’s multi-project environments, many organizations struggle to deliver projects on time and
meet all three conditions of the magic triangle of project management. Lead times for projects are
getting longer and longer, causing companies to struggle to increase throughput and meet their goals.
Unfortunately, this not only affects the success of projects, but also has negative consequences for
the people involved and the overall transparency and focus of management.
One of the main problems in these environments is the matrix organization structure. This structure
creates conflicts between the projects and the tasks of the line organization. As a result, there is a
constant battle for employees as a resource, even between different projects. In this system, whoever
shouts the loudest within the company gets the resource, leading to undesirable effects.
Instead of optimizing the entire system of the organization, only parts of it, such as Project A
or Project B, are prioritized. This local optimization approach neglects the overall well-being of
the organization. Additionally, the constant interruption of employees’ work due to multitasking
leads to a significant increase in overall set-up times. This harmful multitasking not only affects
concentration and leads to more errors, but also results in poorer quality and expensive and time-
consuming rework.
As a consequence, the lead times of all projects and tasks are significantly extended. This has a
direct impact on the time to market for products or services, causing a delay in generating revenues.
The longer the lead times, the later the revenues flow, resulting in negative economic effects for the
company.
In order to address these challenges, organizations need to rethink their project management
approach. It is crucial to prioritize the overall well-being of the organization and optimize the
entire system, rather than focusing solely on individual projects or departments. By minimizing
multitasking and reducing conflicts between projects and the line organization, companies can
improve transparency, focus, and ultimately deliver projects on time and meet their goals. This
will not only have a positive impact on the organization’s success, but also create a better working
environment for employees.
I4 More Projects in Less Time - Future
Picture
In today’s competitive business landscape, speed is the trump card that can give companies an edge.
By implementing Critical Chain Project Management (CCPM), organizations can reduce the lead
time of their projects, resulting in faster time to market and increased revenues. This, in turn, leads
to improved bottom line results and a stronger position in the market.
The benefits of implementing CCPM are not limited to development projects. In all types of
organizational projects, the advantages of reduced lead time become visible earlier. This means that
companies can start reaping the benefits of their projects sooner, whether it be increased efficiency,
cost savings, or improved customer satisfaction.
One of the key advantages of bottleneck-oriented multi-project management, which is a core
principle of CCPM, is the overall increase in company performance. By identifying and addressing
bottlenecks in the project pipeline, organizations can optimize their resources and achieve higher
project throughput without the need for additional resources. This translates into a significant boost
in profitability, as labor costs are one of the main components of operating costs.
In today’s competitive landscape, finding and retaining well-trained employees has become increas-
ingly challenging. By implementing CCPM, organizations can utilize their employees’ skills more
effectively, providing them with a satisfying work environment. This not only improves employee
satisfaction and retention but also becomes a strategic factor in global competition.
The key to understanding why CCPM enables organizations to handle more projects in the same
amount of time with the same team lies in the inefficiency of specialists when they are required to
multitask. Studies have shown that mental workers are only 50% efficient when they have to juggle
multiple tasks simultaneously. By eliminating negative multitasking and focusing on one task at a
time, CCPM allows specialists to work at their highest level of efficiency, resulting in faster project
completion and improved overall productivity.
In conclusion, implementing CCPM offers organizations a future picture of increased competitive-
ness, faster time to market, and improved profitability. By reducing lead time, organizations can start
reaping the benefits of their projects earlier, leading to improved bottom line results. Additionally,
bottleneck-oriented multi-project management improves overall company performance and pro-
vides a more satisfying work environment for employees. By eliminating negative multitasking,
CCPM allows specialists to work at their highest level of efficiency, resulting in faster project
completion and increased productivity. In today’s fast-paced business world, CCPM is the key to
achieving more projects in less time.
I4 More Projects in Less Time - Future Picture 8

I4.1 Local vs. Global Efficiency

In the traditional paradigm, the focus was on cost efficiency and optimizing sub-systems. The belief
was that if each individual part of the system was optimized, the overall system would improve.
However, the Theory of Constraints (TOC) paradigm challenges this notion. It argues that in order
to optimize the system, you must sub-optimize the parts. This means that local efficiencies, such as
cost efficiency in a department, do not necessarily lead to the success of the overall system.
The reason for this is that local optimizations often lead to wasted capacity and investments that do
not align with the needs of the market. When employees are measured and incentivized based on
the amount of output they produce, they will focus on producing as much as possible within their
department, even if it is not the most urgent or necessary task. This leads to a high level of efficiency
within each department, but it does not improve the flow of the entire production process.
The key to understanding why local efficiency reduces the global effectiveness of the organization
lies in the concept of throughput. Throughput is focused on the profit and loss statements and does
not allow costs to be deferred onto the balance sheet in the form of inventory. This concept needs to
be properly explained and demonstrated, as it leads to enhanced sales, throughput, and profitability.
To achieve good financial performance, it is important to have correct operational performance
measures in place. These measures should align and be properly subordinated to improving
total operational performance. Allowing local metrics to be independently enforced and become
dominant leads to a negative spiral where the focus is on cost reduction rather than making more
money. This traps businesses within a negative feedback loop and hinders their ability to thrive.
In order to break free from this cycle, organizations need to shift their thinking to what is known
as “Throughput World Thinking.” This means focusing on the flow of work and the success of the
overall system, rather than trying to improve everything at once. By spreading management time,
attention, resources, and money across all improvements, organizations delay progress and hinder
their ability to make more money.
The utilization paradox is another important aspect to consider. While it may seem logical to strive
for 100% utilization of employees, machines, and resources, this can actually be counterproductive.
Standing still or overproducing can lead to wasted capacity and inefficiencies. Instead, the focus
should be on optimizing the bottleneck resource, as this is what ultimately determines the speed
and success of the overall system.
In conclusion, the shift from local optimization to focusing on the success of the overall system is
crucial for organizations to thrive. Local efficiencies do not necessarily lead to global effectiveness,
and metrics should be aligned with the goals of the entire system. By understanding the concept of
throughput and adopting a Throughput World Thinking mindset, organizations can break free from
the negative feedback loop and achieve true success.
I4 More Projects in Less Time - Future Picture 9

I4.2 Management Needs Transparency and

Predictability
Critical Chain Multi-Project Management (CCPM) is a powerful approach that promotes trans-
parency and predictability in project and portfolio management. At the project level, CCPM
introduces the concept of the critical chain, which extends beyond the critical path by considering
resource availability. This ensures that projects are not delayed due to resource constraints, leading
to improved project performance.
One of the key benefits of CCPM is the transparency it creates at both the project and portfolio
level. By identifying the critical chain and resource dependencies, CCPM provides a clear view of
project progress and potential bottlenecks. This transparency allows project managers to proactively
address issues and make informed decisions to keep projects on track.
Moreover, the transparency achieved through CCPM also extends to corporate control. By
uncovering weaknesses in company processes, CCPM enables organizations to identify areas for
improvement. This insight can then be used to implement targeted continuous improvement
measures, resulting in a significant boost to the company’s overall performance.
In addition to transparency, CCPM also brings predictability to project management. By considering
resource availability and constraints, CCPM provides a more accurate estimation of project time-
lines. This allows project managers to set realistic deadlines and manage stakeholder expectations
effectively.
The predictability created by CCPM offers several benefits. Firstly, it helps in better resource
allocation and utilization, ensuring that resources are optimally utilized across projects. This leads
to improved efficiency and productivity within the organization. Secondly, predictability allows for
better planning and scheduling, reducing the likelihood of project delays and cost overruns. This
enhances customer satisfaction and strengthens the organization’s reputation.
In summary, CCPM is a valuable approach that promotes transparency and predictability in project
and portfolio management. By considering the critical chain and resource availability, CCPM
provides a clear view of project progress and potential bottlenecks. This transparency not only helps
in project control but also enables organizations to identify and address weaknesses in company
processes. Additionally, CCPM brings predictability to project management, allowing for better
resource allocation, planning, and scheduling. The benefits of transparency and predictability
created by CCPM contribute to improved project performance and overall organizational success.

I4.3 The Miraculous Change in the Appreciation of

Constraints
In the world of management, constraints have often been seen as obstacles that hinder the progress
of an organization. The common paradigm has been to identify and remove constraints in order to
I4 More Projects in Less Time - Future Picture 10

achieve optimal performance. However, the appreciation of constraints has undergone a miraculous
change in recent years, thanks to the insights of Eliyahu M. Goldratt and his Theory of Constraints.
Goldratt’s revolutionary idea was that constraints are not necessarily negative, but rather the most
cybernetically effective control points of complex systems. He argued that constraints are the
precious areas of an organization that need protection and careful management. Instead of trying
to eliminate constraints, Goldratt proposed that they should be identified and optimized to achieve
maximum performance.
The Theory of Constraints introduced the concept of the Five Focusing Steps, which provide a
systematic approach to improving a system by addressing its constraints. The first step is to identify
the constraint, which is the bottleneck or limiting factor that is impeding the system’s performance.
Once the constraint is identified, the next step is to exploit it by using it optimally and ensuring that
it is never overloaded.
The third step is to subordinate all other management decisions to the constraint. This means that
all other activities and processes should be aligned and synchronized with the constraint to ensure
smooth flow and optimal utilization of resources. The fourth step is to elevate the constraint by
finding ways to increase its capacity or remove any barriers that are limiting its performance.
Finally, the fifth step is to repeat the process by identifying the next constraint and starting the
improvement cycle again.
One of the key insights of the Theory of Constraints is that the constraint is the key to answering the
question of when the organization can start the next project. By understanding the capacity of the
constraint and aligning the project start accordingly, the organization can ensure that work flows
smoothly and projects are completed on time.
Furthermore, improvement measures are extraordinarily effective when applied to the constraint.
By focusing on improving the performance of the constraint, the organization can achieve significant
gains in overall system performance. This is because any improvement made to the constraint
directly impacts the entire system, leading to increased throughput and efficiency.
As a critical chain multi-project management expert, I have witnessed firsthand the power of the
Theory of Constraints in transforming organizations. By embracing constraints and using them as
the catalyst for continuous improvement, organizations can achieve remarkable results. The shift
in mindset from viewing constraints as obstacles to appreciating them as valuable control points
has revolutionized the way we approach management and has paved the way for a new era of
performance optimization.

I4.4 Employees Need a Focused and Satisfying Work

Environment
In order for employees to thrive and be productive in their work environment, it is crucial to provide
them with a clear and focused sequence of tasks. Without this clarity, it becomes nearly impossible
for employees to maintain a sense of focus and concentration. Switch-tasking, or constantly shifting
I4 More Projects in Less Time - Future Picture 11

between tasks, starts with the way employees think about their work. By encouraging employees
to maintain clear priorities within their minds, the entire company can work in a more organized
and efficient manner.
Disturbances and interruptions can greatly hinder productivity. To address this, it is important
for resource managers to investigate these disturbances using tally sheets and make the findings
transparent for employees. By identifying the root causes of disruptions, steps can be taken to
minimize or eliminate them, allowing employees to work without unnecessary interruptions. One
effective strategy is to only take action on emails that are directly addressed to the individual,
reducing the time spent on irrelevant messages.
Managers play a crucial role in ensuring that employees only begin new tasks when the relevant
parts and information are ready, and the previous tasks are complete. This helps to maintain a sense
of discipline and focus among employees. Additionally, introducing stand-up meeting areas and a
focus forum in the manufacturing hall can provide designated spaces for employees to collaborate
and discuss their work. By hanging monitors and displaying the project sequence and work in
progress for all to see, transparency is promoted, and everyone can stay informed about the progress
of various tasks.
It is important for everyone in the organization to be aware of who the central defenders are at any
given time. This ensures that employees know who to reach out to for assistance or guidance when
needed. Providing special phone numbers to redirect any inquiries to the central defenders can
help streamline communication and prevent unnecessary disruptions. Furthermore, it is crucial to
pay attention to the work in progress and avoid overcrowding the system with too many tasks. By
training employees in key positions to work in a focused manner, their efficiency can be increased,
leading to better overall results.
While work is a significant part of employees’ lives, it is important to recognize that personal
issues such as family, health, and hobbies also require attention. Balancing personal and work-
related matters is essential for employees to maintain a sense of well-being and satisfaction. From
an organizational perspective, it is important to utilize the limited attention of all management
effectively, without overwhelming individuals and causing mistakes or delays in critical decisions.
Encouraging ideas from employees and executives is crucial for fostering innovation and growth
within the organization. Even if some ideas are ultimately rejected, it is important to consider
them from all angles and take into account the global parameters of the organization. Management
attention is a sensitive issue, and it is important to be aware of any signs of managers being under
stress due to overload. Actively addressing these issues is critical for the smooth and safe progress
of the organization.
By creating a focused and satisfying work environment, employees can thrive and excel in their
roles. Clarity of task prioritization, reducing negative multitasking, and providing the necessary
resources and support are key factors in achieving this. When employees feel supported and
engaged, the quality of their work improves, and they become more emotionally invested in their
tasks. Ultimately, a focused and satisfying work environment leads to increased productivity,
employee satisfaction, and overall success for the organization.
I5 What’s in it for me? What’s in it for
us?
CCPM offers numerous benefits for me as an individual. Firstly, it allows me to experience a state
of flow in my work. By focusing on the critical chain and eliminating unnecessary tasks, I can work
more efficiently and effectively. This not only increases my productivity but also gives me the time
and space to be creative and deliver high-quality work. The satisfaction that comes from being able
to fully immerse myself in my tasks is invaluable.
Additionally, CCPM ensures that everyone in the organization has the same priority. This means
that I have a clear understanding of where my skills and experience can be most valuable in
improving the overall performance of the group. This sense of purpose and contribution fosters
a sense of harmony among employees and creates a collaborative environment where we can all
thrive.
Furthermore, CCPM provides me with more time for personal growth and development. With the
elimination of unnecessary tasks and a focus on the critical chain, I have the opportunity to engage
in self-learning, exchange knowledge with my peers, and continuously improve my skills. This not
only enhances my professional capabilities but also allows me to excel in my role and contribute
even more to the success of the organization.
In addition to personal growth, CCPM also offers the prospect of long-term security. By implement-
ing a stable and sustainable project management approach, the organization becomes more resilient
to external factors and better equipped to navigate challenges. This provides me with a sense of
stability and confidence in the future, knowing that the company is well-positioned for success.
Lastly, CCPM brings about a positive change in the management style. Micromanagement is
replaced with a greater level of trust and responsibility. This shift allows me to take on new and
exciting challenges, as I am given more autonomy and the opportunity to work on tasks that are
within my field of expertise. This not only enhances my job satisfaction but also allows me to
contribute to the organization in a more meaningful way.
In summary, CCPM offers a range of benefits for me as an individual. From experiencing a state of
flow in my work to having a clear understanding of my role in improving the group’s performance,
CCPM provides me with the opportunity to grow both personally and professionally. Additionally,
the stability and long-term security it brings, along with the elimination of micromanagement, create
a positive and fulfilling work environment. By embracing CCPM, I can confidently say that there
is a lot in it for me and for all.
Implementing Critical Chain Project Management (CCPM) in an organization offers numerous
benefits, both for the organization as a whole and for individuals within it. By adopting CCPM,
organizations can achieve a smoother flow of work, allowing them to focus on the most important
I5 What’s in it for me? What’s in it for us? 13

tasks and projects. This increased focus on priority work leads to shorter lead times, enabling
products and services to reach the market faster. As a result, organizations can experience better
returns on their investments.
Furthermore, CCPM promotes higher throughput, which in turn fosters innovation and enhances
the organization’s fitness for the future. With more projects being completed efficiently, the
organization gains the capacity to clean up existing processes, build platforms, and improve overall
architecture. This shift from engineering to order to configure to order allows for greater adaptability
and flexibility in meeting customer demands.
Ultimately, the successful implementation of CCPM results in a sustainable and growing organiza-
tion. This growth provides security for all employees, as it ensures the stability and longevity of the
organization. By optimizing project management and achieving higher throughput, the organization
can create a stable and secure environment for its workforce.
From an individual perspective, supporting CCPM can also be highly beneficial. By streamlining
project management processes and reducing lead times, individuals can experience a more efficient
and effective work environment. Shorter lead times mean that individuals can see the results
of their efforts sooner, leading to a sense of accomplishment and motivation. Additionally, the
increased throughput allows individuals to take on more challenging and innovative projects,
fostering personal and professional growth.
In summary, embracing CCPM offers organizations the opportunity to achieve a smoother flow
of work, shorter lead times, increased throughput, and ultimately, sustainable growth. This
growth provides security for all employees and creates a conducive environment for personal and
professional development. By supporting CCPM, both organizations and individuals can reap the
benefits of improved project management and increased productivity.

I5.1 How to Calculate a Growth Business Case

Calculating a growth business case is essential for any company looking to achieve success and
increase their bottom line. It is important to note that business cases focused solely on reducing
costs are not motivating for anyone involved. Instead, what truly captures the interest of both the
company and individuals is a business case that focuses on growth. This type of business case is
built upon the idea of increasing throughput, which refers to the output and sales of the company,
without a significant increase in operational expenses. The direct result of this is an increase in the
bottom line.
To calculate the bottom line increase, we need to understand the formula. The bottom line is
calculated by subtracting the total variable costs and operational expenses from the sales. Therefore,
the bottom line increase can be calculated by multiplying the current sales with the expected
throughput increase and subtracting the current total variable costs. It is important to note that
the bottom line increase can be significantly higher than the current bottom line, as even a small
increase in sales can have a substantial impact on the bottom line.
I5 What’s in it for me? What’s in it for us? 14

One important factor to consider is the time to market. Companies that have a shorter time to market
often have the advantage of being able to command higher prices for their products or services.
Additionally, a shorter time to market allows for shorter learning cycles and increased agility. These
factors contribute to even better bottom line results.
As a critical chain multi-project management expert, I understand the importance of calculating
a growth business case. It is crucial to focus on increasing throughput and sales while keeping
operational expenses in check. By doing so, companies can achieve significant growth and improve
their bottom line. It is important to remember that business cases focused on reducing costs alone
are not motivating. Instead, a business case that focuses on growth and increasing the bottom line
is much more compelling and beneficial for all parties involved.
In conclusion, calculating a growth business case requires a focus on increasing throughput and
sales while minimizing operational expenses. This approach leads to a significant increase in the
bottom line, as even small increases in sales can have a substantial impact. Additionally, companies
with a shorter time to market can command higher prices and benefit from shorter learning cycles
and increased agility. By understanding and implementing these principles, companies can achieve
remarkable growth and success.

Figure 2. The picture shows a typical growth business case - as an example of a mechatronic company

In the world of mechatronic products, there is a company that has been producing and selling its
products with a sales figure of 100 million dollars. However, like any business, they have to consider
the costs associated with their sales. In this case, the totally variable costs amount to 50% of the sales,
which is equivalent to 50 million dollars. Additionally, they have operational expenses of 45 million
I5 What’s in it for me? What’s in it for us? 15

dollars. Taking all these factors into account, the company’s bottom line revenue currently stands
at 5 million dollars.
Now, imagine the possibilities if this company were to implement Critical Chain Project Manage-
ment (CCPM). By applying CCPM, they can increase their output by an impressive 50%. However,
it’s important to note that not all of this increased output can be sold in the market. So, let’s assume
that 20% of the increased output can be sold, resulting in additional sales of 20 million dollars.
When we calculate the new figures of profitability, we subtract the totally variable costs of 60 million
dollars (50% of the increased sales) and the unchanged operational expenses of 45 million dollars.
This leads us to a new bottom line revenue of 15 million dollars.
Comparing the before and after figures, we can clearly see the impact of applying CCPM. The
company’s bottom line revenue has tripled, going from 5 million dollars to 15 million dollars. This
significant increase in profitability is a testament to the power of CCPM and its ability to optimize
project management and increase sales.
By implementing CCPM, this mechatronic company has not only increased their output but also
their bottom line revenue. The additional sales generated from the increased output have far
outweighed the costs associated with production and operations. This success story serves as a
reminder of the potential benefits that can be achieved through the adoption of effective project
management methodologies like CCPM.

I5.2 Impact on Culture and Cooperation

The deepest character of humans is rooted in our innate ability to cooperate. It is ingrained in our
very DNA, as the human genome is built for collaboration. We possess special “mirror neurons”
that enable us to empathize and feel what others are experiencing. This powerful mechanism drives
us to work together, not only to benefit ourselves but also to foster growth as individuals and as a
collective.
In the realm of project management, the Critical Chain Multi Project Management (CCPM) approach
plays a crucial role in harnessing and nurturing this cooperative nature. By providing a clear focus
on what is urgent and important, CCPM allows individuals to contribute their skills and expertise to
help others. This creates a culture of cooperation, where team members actively support and assist
one another in achieving shared goals.
Moreover, CCPM enables individuals to be themselves and grow as individuals within the context
of a larger team. It recognizes that each person has unique talents and strengths that can contribute
to the overall success of the project. By embracing individuality and encouraging personal growth,
CCPM fosters an environment where team members can thrive and reach their full potential.
Being part of a harmonious and sustainable group is a deeply fulfilling experience. It allows
individuals to tap into the power of collective intelligence and achieve outcomes that surpass what
they could accomplish alone. In this context, cooperation becomes not just a means to an end, but
a deeply embedded value that drives the team forward.
I5 What’s in it for me? What’s in it for us? 16

In the pursuit of a common goal, individuals can find a sense of purpose and fulfillment. They
can contribute their unique perspectives and skills, knowing that their efforts are part of something
greater than themselves. This sense of belonging and shared purpose creates a strong bond within
the team, fostering trust, collaboration, and a deep sense of camaraderie.
In conclusion, the impact of culture and cooperation in project management cannot be overstated.
The human genome is wired for collaboration, and CCPM provides a framework that nurtures
and harnesses this innate characteristic. By embracing individuality, fostering cooperation, and
working towards a common goal, teams can create a harmonious and fulfilling environment where
individuals can grow and thrive. In this way, culture and cooperation become the driving forces
behind successful project outcomes and the personal development of team members.
A CCPM Cookbook - The Method
In the previous chapter, we discussed the importance of Critical Chain Project Management (CCPM)
and its ability to deliver step change project performance improvement. Now, in this chapter, we
will delve into the basics of the CCPM method itself. As a critical chain multi project management
expert, it is crucial to have a deep understanding of the key principles and techniques that make
CCPM so effective.
CCPM involves much more than simply aggregating safety time. It is a structured method for
managing projects that consistently delivers significant and rapid improvement across a wide range
of project environments. The three core principles of CCPM form the foundation of this method.
The first principle of CCPM is to plan and manage your project using CCPM. This involves using
the critical chain, which is the longest sequence of dependent tasks in the project, as the basis for
scheduling and resource allocation. By focusing on the critical chain, you can identify and manage
the constraints that are most likely to impact project completion.
The second principle of CCPM is to select and contract with your most important project contrac-
tors/suppliers using a Project Alliance. This collaborative contracting approach aligns the interests
of all team members and promotes better performance at a lower cost. By forming a Project Alliance,
you can leverage the professional expertise of contractors and suppliers to achieve more than just
following instructions.
The third principle of CCPM is to use the power of agile methods at the team level to make your
portfolio and project management more agile. This involves combining CCPM with agile concepts
to effectively manage multiple teams and projects. By adopting agile practices, you can enhance
collaboration, adaptability, and efficiency in your project management approach.
Understanding and applying these principles is essential for successfully implementing CCPM in
your project management practices. By embracing the basics of the CCPM method, you can unlock
its full potential and achieve faster project delivery, lower costs, and greater predictability.
In the upcoming chapters, we will explore the various techniques and strategies that can be employed
within the CCPM framework to optimize project performance. From managing project execution to
leveraging the expertise of contractors and suppliers, we will provide practical insights and examples
to guide you on your CCPM journey.
Stay tuned as we dive deeper into the CCPM Cook Book and uncover the secrets to breakthrough
project management using this powerful methodology.
A1 WIP and Resource Usage
In the world of project management, Work-in-Progress (WIP) refers to the number of projects or
tasks that are currently in progress within an organization. It represents the amount of work that
has been started but not yet completed. Understanding the relationship between WIP and resource
usage is crucial for effective project management and achieving optimal results.
One important aspect to consider is the relationship between WIP and lead time, which is the time
it takes for a project to be completed from start to finish. According to Little’s Law, there is a direct
correlation between WIP and lead time. The more work that is in progress, the longer it will take
to complete each individual project. This is because resources are spread thin and cannot be fully
dedicated to any one task, leading to delays and inefficiencies.
Similarly, the relationship between WIP and throughput in the constraint is significant. The
constraint refers to the bottleneck or the limiting factor that determines the overall performance
of the project. When there is excessive WIP, resources are stretched thin, and the constraint is
unable to operate at its maximum capacity. This results in reduced throughput and overall project
delays.
So why do most companies have too much WIP? One reason is the belief that starting a project
as soon as possible is beneficial. The common notion is that the sooner a project is initiated, the
better. However, this mindset often leads to a vicious cycle. As more projects are started, the WIP in
the system increases, causing lead times to lengthen. Additionally, starting projects without all the
necessary information leads to idle time and multitasking, further hindering progress. Moreover,
the ease of accommodating change requests when there appears to be ample time can also contribute
to excessive WIP.
To address this challenge, organizations can employ a Pipeline Manager who monitors the WIP and
suggests when to start new projects. The Pipeline Manager follows the principle of “first finish, then
start something new.” By staggering the start of new projects in a way that ensures the WIP in the
constraint never exceeds its capacity, the Pipeline Manager helps maintain a manageable workload
and prevents the negative consequences of excessive WIP.
The effects of too much WIP on staff members should not be underestimated. When resources are
spread thin across multiple projects, employees become demotivated and overwhelmed. The lack
of throughput and the inability to see tangible results can lead to decreased productivity and job
dissatisfaction. Additionally, reporting and meetings tend to increase, consuming more time and
further straining resources.
In conclusion, managing WIP and resource usage is crucial for successful project management.
Understanding the relationship between WIP and lead time, as well as the impact on the constraint
and staff members, allows organizations to optimize their project workflows. By implementing
strategies such as the role of a Pipeline Manager and adhering to the principle of “first finish, then
A1 WIP and Resource Usage 19

start something new,” companies can minimize the negative effects of excessive WIP and achieve
better project outcomes.

A1.1 The Vicious Cycle of Work-in-Process

Figure 3. The vicious cycle of Work-In-Process (WIP)

In the world of multi-project management, the concept of Work in Progress (WIP) plays a crucial
role. However, it is often overlooked and underestimated, leading to a vicious circle of negative
consequences. This circle begins when companies take on as many projects as possible, driven by
high market demand and the assumption of infinite resources. Unconsciously, management fails to
recognize the impact this has on WIP.
As the number of projects increases, so does the WIP in the company. This, in turn, leads to longer
lead times for projects, as resources become stretched thin. Promised deadlines become increasingly
difficult to meet, and delays become a common occurrence. In an attempt to mitigate these delays,
management resorts to starting projects as early as possible, even if they are not adequately prepared.
However, this approach only exacerbates the problem.
The early start of poorly prepared projects has detrimental side effects. Errors increase, and there
are waiting times and desynchronization between different project parts. The entire organization
becomes burdened with the weight of these poorly managed projects, making it difficult to maintain
order and efficiency. In an effort to regain control, management resorts to prioritizing projects.
A1 WIP and Resource Usage 20

However, this prioritization is constantly changing due to customer complaints about delays and
poor quality.
The increasing instability of the working conditions takes a toll on the employees. They find
themselves caught in a state of negative multitasking, where their attention and concentration are
divided among multiple tasks. This leads to a significant decrease in efficiency and productivity.
Unfortunately, the influx of new projects continues unabated, further increasing the WIP and closing
the second vicious circle.
To break free from this cycle, it is crucial to recognize the importance of limiting WIP. By keeping a
certain minimum amount of work items in progress and controlling the release of new work items
based on completed ones, the focus and concentration of resources can be improved. This approach
reduces multitasking and allows employees to dedicate their attention to the current request or
project task at hand.
Additionally, implementing a scheme of priorities can help identify projects or missions that are
stuck and need attention. By addressing these bottlenecks, the flow of work can be improved, and
delays can be minimized. It is important to remember that increasing WIP indefinitely is not a
sustainable solution. There comes a point where the additional workload becomes unsustainable,
and attempts to increase throughput by increasing WIP limits will only lead to further thrashing of
the system.
In conclusion, the management of Work in Progress is a critical aspect of multi-project management.
Ignoring its impact can lead to a vicious circle of negative consequences, including increased lead
times, delays, and poor quality. By implementing strategies to limit WIP and prioritize projects
effectively, organizations can break free from this cycle and achieve better control and efficiency in
their project management processes.

A1.2 How to Identify the Constraint

To identify the constraint or bottleneck in a multi-project environment, you can follow a simple
recipe that requires little effort. Start by creating an Excel spreadsheet with an x-y matrix. On the
y-axis, list all the project names, and on the x-axis, list all the departments that could potentially be
considered as a bottleneck.
Next, roughly estimate the effort in hours that each department contributes to each project. Then,
calculate the sum of the efforts of each department across all projects.
To determine the utilization time of each department, divide the effort total by the number of
available employees in that department. Finally, divide this result by the number of weekly working
hours to estimate the number of weeks that the department is working at full capacity.
Identify the department with the highest utilization time as the bottleneck. This department is the
one that is currently limiting the performance of the system.
A1 WIP and Resource Usage 21

Once the bottleneck is identified, stagger all the projects at the bottleneck department. This means
adjusting the project schedules to ensure that the workload is evenly distributed and optimized based
on the capacity of the bottleneck.
After 1-2 months of implementing these changes, you will gain insights into whether your initial
estimates were correct. It is possible that you may need to reassess and set another department as
the new bottleneck based on the newly gained insights.
Remember, this process is an ongoing one, and it may require continuous monitoring and adjustment
to ensure that the constraint is effectively managed and optimized.

A1.3 How to Break the WIP Trap - Stagger at the

Constraint
In a multi-project organization, it is crucial to identify the bottleneck resource, also known as the
drum resource. This resource sets the pace for planning the entire project portfolio. To ensure
smooth operations and avoid overloading the bottleneck resource, projects are staggered in a way
that they do not start simultaneously.
Staggering the projects means introducing a time delay between the start of each project. This allows
for a relatively continuous scheduling of the bottleneck resource, ensuring that it is not overwhelmed
with multiple projects at the same time. By staggering the projects, we can effectively manage the
workload and prevent the bottleneck resource from becoming overloaded.
To further support the smooth flow of work, buffers are created in front of the bottleneck resource.
These buffers act as a safety net, ensuring that tasks are completed even if the bottleneck resource
encounters any delays or disruptions. This concept is known as drum buffer, where the buffer
protects the drum resource from any potential disruptions.
In the context of a multi-project organization, the staggered project portfolio takes precedence
over individual projects. The focus is on optimizing the overall flow and throughput of the entire
portfolio, rather than solely focusing on individual project timelines. By staggering the projects and
managing the workload of the bottleneck resource, we can ensure that the entire project portfolio
operates efficiently and effectively.
It is crucial to keep the bottleneck resource free from disruptions. Any disruptions or delays in
the bottleneck resource can have a cascading effect on the entire project portfolio. Therefore, it is
essential to closely monitor and manage the workload of the bottleneck resource, ensuring that it
remains free from any disruptions that could hinder the progress of the projects.
In conclusion, staggering the projects at the bottleneck resource is a key strategy in breaking the
work-in-progress trap in a multi-project organization. By identifying the bottleneck resource,
managing its workload, and creating buffers to protect it from disruptions, we can optimize the
flow and throughput of the entire project portfolio. This approach prioritizes the overall portfolio
performance and ensures that the projects are completed efficiently and on time.
A1 WIP and Resource Usage 22

Figure 4. Staggering three similar projects at the constraint (red team) and an example of how this looks like in a
CCPM software

In a multi-project organization, it is crucial to identify the bottleneck resource, also known as the
drum resource. This resource sets the pace for planning the entire project portfolio. The projects
within the organization are staggered in such a way that the bottleneck resource is not overloaded
with multiple projects at the same time. This ensures that the resource can effectively handle the
workload without becoming overwhelmed.
To prevent the bottleneck resource from coming to a standstill, buffers are created in front of it.
These buffers act as a contingency reserve, ensuring that tasks are completed even if the bottleneck
resource encounters any delays or disruptions. This concept is known as the drum buffer.
The staggered project portfolio takes precedence over individual projects. The focus is on optimizing
the overall flow of work rather than prioritizing individual projects. By managing the workload of
the bottleneck resource effectively, the organization can ensure that projects progress smoothly and
efficiently.
It is essential to keep the bottleneck resource free from disruptions. This means that any potential
issues or obstacles that may impact the resource’s productivity should be addressed and resolved
promptly. By maintaining a clear and uninterrupted workflow for the bottleneck resource, the
organization can maximize its capacity and ensure the successful completion of projects.
In summary, in a multi-project organization, the bottleneck resource plays a crucial role in planning
the project portfolio. By staggering projects and implementing buffers, the organization can
optimize the workload of the bottleneck resource and ensure that tasks are completed efficiently.
It is important to prioritize the overall project portfolio and keep the bottleneck resource free from
A1 WIP and Resource Usage 23

disruptions to maintain a smooth workflow and achieve project success.

Figure 5. Fewer projects in parallel results in exploiting the constraint in a better way

A1.4 How to Exploit the Constraint

In the world of critical chain multi project management, the process of exploiting the constraint
is a crucial step towards maximizing the performance of a system. The first step, as previously
mentioned, is to identify the constraint or bottleneck that is limiting the system’s performance.
Once this constraint has been identified, the focus shifts towards developing and implementing a
strategy to exploit it to the maximum.
To effectively exploit the constraint, one strategy is to limit the incoming work in a way that ensures
the constraint can operate in optimal conditions. By carefully managing the flow of work, we can
prevent overwhelming the constraint and ensure that it can perform at its best. Additionally, it is
important to consider the allocation of work that does not directly contribute to the core competence
of the bottleneck. By dispatching this work to other departments or resources, we can alleviate the
burden on the constraint and allow it to focus on its primary function.
Another key aspect of exploiting the constraint is to optimize the core processes within the bottleneck
itself. This involves streamlining and improving the efficiency of the processes to eliminate any
unnecessary delays or inefficiencies. It is crucial to ensure that the work for the bottleneck is always
extremely well prepared, with all necessary resources and information readily available. This level
A1 WIP and Resource Usage 24

of preparation can significantly increase throughput through the bottleneck, often resulting in a 30%
or more increase in performance, all while utilizing the same number of employees.
By implementing these strategies, we can effectively exploit the constraint and maximize the
system’s performance. It is important to remember that exploiting the constraint focuses on the
short-term goals of improving throughput and efficiency. However, in the long-term, it is necessary
to consider the elevation of the constraint, which involves finding ways to increase its capacity or
capability. But for now, the focus is on exploiting the constraint to its fullest potential, utilizing the
strategies mentioned above.

Figure 6. Exploit the constraint

Now comes the challenging part of putting the strategy into action. It requires complete alignment
and subordination to the developed strategy. This means that the bottleneck, or the constraint,
determines how many projects can be active at the same time. Only those projects that have
optimized preparations should start in the bottleneck. Implementing this strategy may not always
be easy and it requires full support from top management and a patient learning phase. According
to Goldratt, throughput can easily exceed 50% as a result of this measure, and our experience shows
that it can be 30% or even higher.
Once the strategy has been fully implemented, it is time to expand the bottleneck. However, caution
must be exercised here. The bottleneck is usually strategically chosen, and reinforcing it can cause a
shift to other areas, which is typically undesirable. Therefore, it is advisable to first expand the non-
bottlenecks before tackling the reinforcement of the bottleneck. However, if the bottleneck shifts, it
is necessary to start again at step 1 and identify the new constraint. It is crucial to actively prevent
A1 WIP and Resource Usage 25

inertia from becoming the constraint, as this can hinder progress and performance.
In summary, the key ideas of this approach are to subordinate everything to the developed strategy,
elevate the constraint, and prevent inertia from becoming the constraint. Implementation requires
full support and alignment from top management, and a patient learning phase may be necessary.
Once the strategy is fully implemented, the bottleneck can be expanded, but caution must be
exercised to avoid undesirable shifts. By actively preventing inertia, the organization can ensure
continuous improvement and optimal performance.
A2 Good Preparation
Starting a project without all the relevant information can have negative consequences. Resources
may be forced to begin a project without complete information, only to realize later that they lack
the necessary details to continue. This not only adds to the multitasking burden of the resources but
also directly contributes to longer lead times, especially if these resources are bottleneck resources.
In today’s dynamic business environment, it is unrealistic to expect that everything will be clear at
the beginning of a project, following a traditional waterfall approach.
To address this challenge, it is crucial for every team or organization to define what relevant
information is needed at the start of a project. By identifying the essential details such as the project
goal, crucial customer requirements, and technical specifications, the project team and bottleneck
resources can work seamlessly without waiting for information that could have been provided
earlier. This ensures that the project can adapt to the dynamic nature of the business environment.
A “Full Kit” for a project refers to having all the necessary information and prerequisites in place for
the project to start without interruption. This includes having a well-defined plan, the required
resources, and the necessary specifications. The concept of a Full Kit is particularly important
when considering the critical chain and integration points within a project. By ensuring that all
the components of the Full Kit are in place, the project can proceed smoothly and efficiently.
Prioritizing good preparation and having a Full Kit for a project brings several benefits. Firstly,
it minimizes disruptions caused by starting a project without complete information, reducing
the need for rework or stopping and restarting. This leads to shorter lead times and improved
efficiency. Additionally, good preparation optimizes resource utilization, especially at bottleneck
points, ensuring that these critical resources are not wasted or overburdened. This aligns with the
principles of critical chain multi-project management, which emphasizes the importance of efficient
resource allocation.
In conclusion, having all the relevant information and a Full Kit for a project is essential to
ensure smooth and efficient project execution. By defining the necessary details at the start of a
project and prioritizing good preparation, organizations can minimize disruptions, reduce lead times,
optimize resource utilization, and align with critical chain multi-project management principles.
This approach allows projects to adapt to the dynamic business environment and achieve successful
outcomes.
A3 Project Planning
Despite the dynamic nature of projects, proper planning is still essential. While it may not be
necessary to plan every detail a year in advance, including as much information as possible in
the planning stage is beneficial. This not only helps to align the project team but also ensures that
everyone is on the same page.
To start the planning process, it is important to formulate the project goal in concrete terms and
identify partial results. This provides clarity and direction for the project. Additionally, identifying
all parties involved and understanding their motivations and stakes in the project is crucial. This
can be done through a classical stakeholder analysis, which helps to consider the perspectives and
interests of all stakeholders.
Identifying risks, stumbling blocks, and bottleneck factors should also be done during the planning
stage. By addressing these challenges early on, the project team can develop strategies to overcome
them. This proactive approach ensures that potential obstacles are taken into account from the
beginning.
Phase planning is another important element of project planning. By formulating intermediate
results as goals for each phase of the project, the team can track progress and maintain focus.
This helps to break down the project into manageable chunks and provides structure and control
throughout the project lifecycle.
Planning dependencies is also crucial in project management. From the identified requirements,
risks, and stumbling blocks, the team can derive work packages and create a work breakdown
structure for each phase. By organizing work packages in a logical order and making dependencies
clear, the team can develop a Gantt chart. While it is not necessary to plan every detail for the entire
project, having clear work packages and dependencies for the first phase or intermediate result is
sufficient. The Gantt chart helps to visualize the dependencies and timeline of the project.
In project management, there is a concept called the critical path, which refers to the longest
sequence of interdependent tasks within a project. However, in the Theory of Constraints (TOC),
we also consider the critical chain. Unlike the critical path, the critical chain takes into account the
finite capacity of the resources involved in the project. This means that the work packages in the
critical chain may not necessarily be connected by predecessor-successor relationships. The critical
chain is the constraint of a single project and determines the duration of the project.
The critical chain is the bottleneck of any project. If there is no progress on the critical chain, the
project’s completion will be delayed. It is important to prioritize and focus on the critical chain
to ensure project success. The critical chain always refers to only one project, and its length is
determined by estimations of the duration of the work packages.
A3 Project Planning 28

In conclusion, proper planning in project management is crucial for success. By including compre-
hensive information, formulating clear goals, identifying risks and dependencies, and focusing on
the critical chain, project teams can ensure that projects are executed efficiently and effectively.

Figure 7. (A) A typical generic unsorted Gantt project plan, (B) same with Critical Chain visible, end-start connections,
committed due date, task manager, definition of done

A3.1 Estimations and Wrong Assumptions in Classical

Project Planning
The problem lies in the fact that these buffers are not transparently displayed in the project plan.
They are hidden within each individual step and phase, adding unnecessary days, weeks, or even
months to the overall plan. This not only elongates project durations but also fails to deliver projects
on time.
The pressure on employees to be reliable and meet their commitments further increases the buffers
on the work package level. Employees tend to provide pessimistic estimates, adding even more safety
to their estimations. This leads to estimates that are often close to the 95% absolute probability, which
is double the value of the actual estimate.
Another psychological effect that comes into play is Parkinson’s law. When someone estimates
buffers in their work package, they will do everything possible to achieve precisely this estimate.
This means that even if the buffer is unnecessary, they will still strive to use up all the allocated
time.
A3 Project Planning 29

Conventional project management assumes that estimates are sacrosanct and treats them as
commitments. However, this is an invalid assumption. Estimates are not accurate calculations but
rather the best guess based on experience and assumptions. Treating them as commitments only
adds unnecessary pressure and leads to inflated estimates.
The focus on managing each individual work package also leads to a misconception that if every
work package is on time, the project will be on time. This is a wrong assumption. The execution
management of the project is crucial, not just the planning. Classical project management fails to
address this aspect.
In contrast, critical chain multi-project management focuses on reducing wasted time and improving
execution speed. Each task includes an allowance of safety time to cover the chance that it will take
longer than the average time. However, these safety buffers are not wasted but strategically utilized
to ensure efficient project delivery.
In conclusion, estimates are never perfect, and any planning relying on perfect estimates will be
unstable. Classical project management’s approach of treating estimates as commitments and
focusing on individual work packages leads to inflated buffers and delays in project delivery. A shift
towards execution management and utilizing safety buffers strategically is necessary for efficient
project execution.

A3.2 Studenten-Syndrom & Parkinsons Law

In project management, there are two phenomena that can have a significant impact on the success of
a project: the student syndrome and Parkinson’s Law. The student syndrome refers to the tendency
of individuals to delay starting a task until the last possible moment, often when there is a buffer or
extra time available. This behavior stems from the belief that they can complete the task within the
allocated time, leading to a lack of urgency and potential delays.
On the other hand, Parkinson’s Law states that work expands to fill the time available for its
completion. In other words, if there is a deadline set for a task, individuals will often take the
entire allocated time to complete it, even if it could have been done more efficiently in a shorter
period. This can lead to inefficiencies and delays in project execution.
Both the student syndrome and Parkinson’s Law can have detrimental effects on project organiza-
tions. They can result in delays, missed deadlines, and a lack of productivity. When individuals
consistently delay starting tasks or take longer than necessary to complete them, it can disrupt the
overall project timeline and impact the delivery of the project.
To avoid these effects, critical chain multi-project management (CCPM) offers a solution. CCPM
focuses on combining buffers to create a more realistic and achievable project schedule. By
incorporating buffers into the project plan, CCPM aims to account for uncertainties and potential
delays, effectively mitigating the impact of the student syndrome and Parkinson’s Law.
In CCPM, rules are used to estimate the duration and effort of tasks. These rules take into account
the inherent variability and uncertainties in project execution. By considering the potential risks
A3 Project Planning 30

and uncertainties, CCPM provides a more accurate estimation of task duration and effort, enabling
better planning and resource allocation.
By implementing CCPM, project organizations can create a more transparent and reliable project
progress monitoring system. The use of buffers allows for a more realistic assessment of project
timelines and helps to identify potential bottlenecks or areas of concern. This enables project
managers to focus on addressing critical issues and allocating resources effectively.
In conclusion, the student syndrome and Parkinson’s Law can have detrimental effects on project
organizations, leading to delays and inefficiencies. However, by implementing CCPM and incorpo-
rating buffers into the project plan, these effects can be mitigated. CCPM provides a more accurate
estimation of task duration and effort, allowing for better planning and resource allocation. This
ultimately leads to improved project execution and increased chances of project success.

A3.3 Plan for the Unforeseen - Project Buffer and

Estimates
In project management, it is crucial to plan for the unforeseen. No one intentionally delays a project,
but disruptions and risks can arise unexpectedly. To account for these uncertainties, it is important
to have a buffer in the project that can absorb any delays or issues that may arise. The goal is not
to ensure that every single work package is completed on time, but rather to ensure that the project
as a whole is completed as quickly as possible.
To implement this approach in planning, individual buffers at the work package level are eliminated.
Instead, an overall project buffer is established at the end of the project to safeguard the project’s
due date. This concept is known as buffer bundling, similar to how insurance companies operate.
Not every work package will experience delays or require buffer time, but only a few. The overall
project buffer absorbs the troubles and risks of these specific work packages.
In critical chain multi-project management (CCPM), estimating the duration of work packages is a
key aspect. There are different methods for estimating project durations. If estimates are already
available, they are typically around 80% accurate. In CCPM, the duration is cut in half, and 50% of
the remaining time is added to the buffer. This ensures that the buffer is sufficient to handle any
potential delays.
Another estimation method used in CCPM is the P3 point estimation. This involves estimating the
optimistic, realistic, and pessimistic completion times for a work package. The optimistic completion
time represents the best-case scenario, where everything goes perfectly. The pessimistic completion
time represents the worst-case scenario, where everything goes wrong. The realistic completion
time is the estimate that is used for project planning, as it represents the duration that is likely to be
met or exceeded in 50% of cases.
It is important to understand the difference between effort and duration in project planning. Effort
refers to the amount of work required to complete a task, while duration refers to the amount of time
it takes to complete the task. For example, if two employees work full-time on a work package for
A3 Project Planning 31

one week, the duration would be five days, but the effort would be calculated as 5 days * 8 hours/day
* 2 people = 80 hours.
By implementing these strategies and understanding the concepts of buffer bundling, estimation
methods, and the distinction between effort and duration, project planning can be enhanced. This
ensures that projects have the necessary buffer to handle unforeseen delays and risks, and ultimately
leads to greater project stability and timely completion.

Figure 8. (C) CCPM project plan with dedicated “Project (End) Buffer”, original duration of work packages reduced
by, in this case, 33%, 50% of the critical chain added as project end buffer

A3.4 Leadership Principles for Flow

In Critical Chain multi-project management, new leadership principles are introduced to improve
project outcomes. One key principle is recognizing that estimates are not commitments, but rather
best guesses based on experience and assumptions. This understanding allows for continuous
evaluation and adjustment of estimates as the project progresses. By avoiding the treatment
of estimates as commitments, organizations can overcome challenges and achieve better project
outcomes.
In traditional project planning, estimates are often treated as commitments, leading to employees
padding their estimates with safety buffers. This practice stretches out project durations and hinders
project execution. Critical Chain emphasizes that estimates should remain estimates and not be
transferred to agreed due dates for single work packages in the project plan. Furthermore, no one is
judged solely based on adherence to a single work package completion date.
A3 Project Planning 32

Another important principle in Critical Chain is the adoption of a relay runner approach. When a
work package is handed over to a team, they should be prepared to start immediately and work as
fast as possible. The focus is on smooth handovers and maintaining a “focus and finish” mentality.
Managers play a servant leadership role in supporting this approach and removing obstacles that
the team cannot solve themselves. Their main questions are centered around how long it will take
to finish a task and how they can support the team.
To effectively implement these principles, control over work in progress (WIP) is crucial. It is
necessary to reduce WIP in the organization and embrace the road runner/relay runner principle.
By doing so, project wait time, which refers to the time when a project is waiting for someone to
work on it due to people being busy elsewhere, is significantly reduced. This reduction in WIP
allows for smoother project execution and improved flow.
Additionally, in Critical Chain, there is potential to shorten project buffers by up to 50%. This
means that project durations can be shortened by 25%. However, it is important to note that the
remaining buffer must not be deleted by anyone. The buffer serves as a safeguard to protect against
uncertainties and ensure project completion within the desired timeframe.
In conclusion, by adopting new leadership principles in Critical Chain multi-project management,
organizations can improve project outcomes. These principles include treating estimates as best
guesses, avoiding committed deadlines, adopting a relay runner approach, controlling WIP, and
shortening project buffers. By implementing these principles, organizations can achieve better
project flow and increase their chances of successful project completion.

A3.5 Integration or Feeding Buffer

In the world of critical chain multi-project management, the protection of the critical chain is of
utmost importance. As we know, the critical chain acts as the bottleneck for a single project, and it
is crucial to safeguard it from any disruptions or delays. One way to achieve this is through the use
of integration buffers.
Integration buffers serve as a shield against the potential risks that arise from the integration of
feeding chains into the critical chain. These feeding chains, which contribute to the overall project,
can introduce uncertainties and difficulties that may impact the critical chain. To prevent such
disruptions, integration buffers are strategically placed at the end of each feeding chain.
Calculating integration buffers follows the same principle as project buffers. Instead of allocating
a 50% buffer on the feeding chains, this buffer is removed and replaced with an integration buffer.
This ensures that the critical chain remains protected and shielded from any unforeseen challenges
that may arise from the feeding chains.
By implementing integration buffers, we are able to maintain a smooth flow of work and reduce
the risk of delays or disruptions. These buffers act as a safety net, absorbing any variations or
uncertainties that may occur during the integration process. They provide a cushion for the critical
chain, allowing it to proceed without being affected by the potential difficulties of the feeding chains.
A3 Project Planning 33

The integration buffers play a vital role in the overall management of multi-project environments.
They contribute to the efficient coordination and synchronization of various project elements,
ensuring that the critical chain remains the focal point of attention. By prioritizing the critical chain
and protecting it through integration buffers, we can effectively manage and control the progress of
the entire project.
In summary, the integration buffers serve as a crucial component in critical chain multi-project
management. They are calculated in the same manner as project buffers, with the aim of
safeguarding the critical chain from disruptions caused by the integration of feeding chains. By
strategically placing these buffers, we can ensure a smooth flow of work and minimize the risk of
delays or difficulties. Through the implementation of integration buffers, we prioritize the protection
of the critical chain and maintain control over the overall project progress.

Figure 9. (D) Feeding chain also gets 50% of buffer - called Feeding Chain Buffer; (E) Feeding chains scheduled “as
late as possible”

A3.6 Milestones - Good or Bad?

In critical chain project management, the approach to milestones is different. Instead of fixed
deadlines, milestones are used as end-checks for each work package. This means that the focus
is on completing each work package efficiently and effectively, rather than meeting specific dates.
By removing the fixed deadlines, the project can benefit from the flexibility and agility of the critical
chain method.
A3 Project Planning 34

The concept of milestones in critical chain is to ensure that the necessary deliverables are completed
before moving on to the next phase. This is done by establishing clear goals and checkpoints within
each work package. By achieving these milestones, the project can progress smoothly and efficiently.
It is important to note that in critical chain, milestones are not fixed to specific dates. This is because
fixing milestones to specific dates can create artificial project ends and undermine the effectiveness
of the project buffer. The project buffer is a crucial element in critical chain, as it allows for flexibility
and risk reduction. By removing fixed milestones, the project can benefit from the mathematical
calculations behind the project buffer and shorten the critical chain.
However, there may be cases where a specific date for an intermediate result is necessary, such
as when it is bindingly promised to a customer or when it is tied to external resource slots. In
these rare cases, the milestone can be fixed to a specific date. However, it is important to buffer
these milestones to protect against potential delays and ensure the overall project timeline is not
compromised.
For all other interim results, it is recommended to mark them as content-related milestones without
specific deadlines. This allows for a smoother flow of work and reduces the risk of time wasted on
unnecessary deadlines. By focusing on the completion of work packages and the overall project
deadline, the critical chain approach can improve efficiency and reduce the negative effects of
Parkinson’s Law and Student Syndrome.
In conclusion, milestones are not inherently bad in project management. However, in the context
of critical chain, fixed milestones with specific dates should be avoided to maintain the flexibility
and risk reduction benefits of the method. By focusing on work package completion and the overall
project deadline, the critical chain approach provides a more efficient and effective way of managing
projects.
A4 Execution
In many companies, project plans often lead a sad existence: they are set up at the start of the project
and then disappear into a drawer, and the project begins. As unforeseen events are an inherent part
of every project practice, the plan and reality start to diverge. That’s why CCPM uses specialized
software to keep project plans up to date and to track buffer consumption in real-time. In this process,
project team members report back daily on the progress of their active tasks and how much time
they estimate they still need to complete them. This creates an unparalleled level of transparency
and speed in project execution. At the same time, the ratio of buffer consumption to project progress
is used to calculate a priority number, known as the operational priority of the work packages. The
next chapter will explain how this operational priority is applied.
The execution of a project is where the rubber meets the road. A plan without execution is worthless.
It is during the execution phase that the plan is put into action and progress is made towards
achieving the project’s objectives. However, it is important to remember that no plan survives
reality. Unexpected events and changes are bound to occur, and it is crucial to adapt and adjust the
plan accordingly.
To ensure successful execution, it is essential to keep the plan up to date. This means regularly
reviewing and revising the plan based on the latest information and circumstances. CCPM provides
the tools and techniques to do this effectively. By using the daily feedback from project team
members on task completion and estimated remaining time, the project plan can be continuously
adjusted and optimized.
One of the key aspects of execution is determining operational priority. This is where the operational
priority number, derived from the ratio of buffer consumption to project progress, comes into play.
The work packages with the highest operational priority are given the highest priority for resource
allocation and completion. This ensures that the most critical tasks are addressed first and that the
project stays on track.
By using CCPM and its focus on execution, projects can benefit from increased transparency, agility,
and speed. The daily updates and adjustments to the plan enable teams to respond quickly to changes
and make informed decisions. This leads to improved project performance and a higher likelihood
of achieving project objectives on time and within budget.
In conclusion, execution is a critical phase in project management. It is where the plan is put into
action and progress is made towards project objectives. CCPM provides the tools and techniques
to keep the plan up to date and determine operational priority. By focusing on execution and
continuously adjusting the plan, projects can benefit from increased transparency, agility, and speed,
ultimately leading to successful project outcomes.
A4 Execution 36

A4.1 Priorities: Why Do I Need Operational Priorities?

In companies, priorities are typically set based on various factors such as project deadlines,
resource availability, and strategic importance. When it comes to multi-project management, the
challenge becomes even greater as deadlines may shift and projects may require the same resources
simultaneously.
To manage this effectively, critical chain multi-project management (CCPM) provides a solution by
introducing the concept of operative priorities. CCPM utilizes the planned project buffer, which is
a time buffer added to the end of each project to account for uncertainties and delays.
The key idea behind operative priorities in CCPM is to prioritize projects based on their buffer index.
The buffer index is calculated by dividing the buffer consumption (current buffer duration divided
by initial planned buffer duration) by the progress on the critical chain (current project duration
divided by current project duration plus remaining duration).
Let’s consider an example where two projects are waiting to be processed before a critical resource.
Project A has a low buffer index, indicating less buffer consumption in relation to its progress. On
the other hand, Project B has a high buffer index, indicating high buffer consumption and very low
progress.
In this scenario, the task manager would prioritize Project B as it has a higher buffer index. By doing
so, both projects have a higher chance of being completed on time. This prioritization is applied
to all ongoing projects and their respective work packages throughout the company, ensuring a
comprehensible and automatic prioritization mechanism.
The use of operative priorities calculated through the buffer index takes a significant amount of
pressure off managers. It allows them to easily determine the most important tasks and ensures
that employees can focus on completing those tasks. This mechanism plays a fundamental role in
ensuring that all projects are delivered on time and contributes to the overall success of the company.
In a broader context, priorities are also set in other areas such as traffic management on streets.
Traffic signals and signs are used to manage the flow of vehicles and prioritize certain directions
or lanes. This helps to maintain order and prevent congestion, ensuring a smooth and efficient
movement of traffic.
Overall, the concept of operative priorities is crucial in managing multiple projects and resources
effectively. Whether it is in the context of project management or traffic management, setting
priorities based on specific criteria allows for better decision-making and ensures that the most
important tasks or directions are given the necessary attention and resources.

A4.1.1 The Fever Curve in CCPM

In Critical Chain Project Management (CCPM), the concept of the Fever Curve plays a crucial role
in ensuring the successful delivery of multiple projects. The staggering of projects is a key strategy
A4 Execution 37

employed to ensure that each team has enough capacity to effectively deliver all projects. This
approach aims to prevent overloading and ensure that resources are allocated optimally.
With the implementation of CCPM, it becomes essential for everyone involved to have a clear
understanding of where they can contribute to make project delivery reliable. The Fever Curve
serves as a visual indicator of project progress and buffer consumption, providing real-time insights
into the urgency and status of each project.
The Fever Curve is a diagram that depicts the relationship between buffer consumption and
progress. It is drawn with the x-axis representing project progress and the y-axis representing
buffer consumption, both measured in percentages. All projects start at the lower left corner of
the curve and are expected to move towards the upper right corner as they progress. The goal is for
projects to finish near the top right corner, with a buffer consumption of around 90%, allowing for
any unforeseen issues in the final stages.
The Fever Curve is divided into three distinct areas: red, yellow, and green. The red zone indicates
that the buffer is being consumed at a faster rate than progress is being made. This signals a
need for immediate action to address the situation and prevent delays. The yellow zone represents
a moderate level of buffer consumption, indicating that attention and resources are required to
maintain progress and prevent the project from entering the red zone. Finally, the green zone
signifies that the project is on track, with buffer consumption aligned with progress.
The Fever Curve serves as a useful tool for teams to focus their efforts on buffer regain. By
monitoring the curve and aiming to stay within the yellow or green zones, teams can prioritize their
actions and allocate resources effectively. This approach ensures that projects remain on schedule
and that any potential risks or delays are addressed promptly.
In summary, the Fever Curve is a core element of CCPM, providing real-time insights into project
progress and buffer consumption. By understanding and utilizing this visual indicator, teams can
effectively manage multiple projects, allocate resources appropriately, and ensure reliable project
delivery.
A4 Execution 38

Figure 10. Examples of different Fever Curves

A4.1.2 Buffer Index as Operational Priority

In the realm of critical chain multi project management, one of the key aspects that determines
operational priority is the buffer index. This index is derived from two important factors: progress
and buffer consumption. Let’s delve into these formulas and understand how they contribute to the
overall operational priority.
Firstly, progress is calculated by considering the advancement made in completing a task or project.
It is a measure of how much work has been accomplished relative to the total work required. This
progress formula helps in assessing the current state of each task and project, providing a clear
picture of where things stand.
On the other hand, buffer consumption is a measure of how much buffer has been utilized in relation
to the progress made. The buffer, which acts as a protective cushion against uncertainties and
delays, is an essential component in project management. As work progresses, the buffer is gradually
consumed, indicating the level of risk and potential delays.
Now, let’s explore the concept of buffer index. It is a metric that combines progress and buffer
consumption to determine the operational priority of a task or project. The higher the buffer index,
the more critical and urgent the task becomes. This index serves as a guide for decision-making,
helping project managers and teams identify which tasks require immediate attention and resources.
A4 Execution 39

Operational priority is crucial in ensuring that all orders are delivered on time and that the overall
project timeline is maintained. By focusing on tasks with the highest buffer index, teams can allocate
resources effectively and expedite actions when necessary. This approach helps in restoring stability
and ensuring timely delivery performance.
Implementing buffer index as an operational priority requires a systematic approach. It involves
continuously monitoring and analyzing the progress and buffer consumption of each task and
project. By doing so, companies can identify potential risks and delays, allowing them to take
proactive measures to mitigate these issues.
In conclusion, the buffer index serves as a valuable tool in critical chain multi project management.
It provides a clear and transparent system for setting operational priorities, ensuring that the
most urgent tasks receive the necessary attention and resources. By understanding and utilizing
the progress and buffer consumption formulas, companies can effectively manage their projects,
improve efficiency, and achieve better outcomes.
In the world of multi-project management, operational priority plays a crucial role in ensuring effi-
cient and effective project execution. It is important to have a clear and transparent understanding of
which projects require immediate attention and support. One way to determine operational priority
is by analyzing the buffer consumption of each project.
The buffer, in the context of multi-project management, refers to the amount of time or resources
allocated to a project to account for uncertainties and delays. The critical chain, on the other hand,
represents the sequence of tasks that determine the overall project duration. By comparing the buffer
consumption of different projects, we can identify the most critical ones that require immediate
action.
To achieve timely transparency on the status of all initiatives, it is essential to have a complete
overview of the entire portfolio. This allows us to identify where and when buffers are being
used up, serving as a starting point for continuous improvement. By implementing a cross-process
improvement process, we can address bottlenecks and optimize resource allocation.
In multi-project management, it is common for deadlines to shift and for projects to compete for
the same resources. This poses a challenge in determining which project should be prioritized
operationally. The TOC methodology, known as Buffer Management, provides a solution by using
the planned project buffer. It suggests that the project with the worst ratio of buffer consumption
to progress on the critical chain should be given priority.
Agility is also an important aspect of multi-project management. By analyzing the progress and
buffer consumption of each initiative, we can determine the operational priority. The initiative with
the highest buffer consumption compared to progress is considered the most critical and requires
all possible support. This approach allows for clear operational priorities and helps avoid negative
multitasking.
Top managers play a crucial role in providing assistance and guidance in multi-project management.
The Critical Chain Buffer Management system is used to provide priorities, and priority reports are
provided to different management functions. This ensures proper usage of the priority information
and helps in making informed decisions.
A4 Execution 40

When planning buffers, the priority can be calculated based on the demand prioritization method.
This method involves identifying the bottleneck and prioritizing the projects accordingly. By
understanding the roles and actors involved in multi-project management, we can effectively
prioritize projects and allocate resources operationally.
In conclusion, operational priority is a critical aspect of multi-project management. By analyzing
buffer consumption, identifying bottlenecks, and prioritizing projects based on their progress and
buffer consumption, we can ensure efficient project execution. With timely transparency and clear
operational priorities, we can avoid negative multitasking and achieve successful project outcomes.

A4.2 Strategic and Operational Priority

In the world of project management, companies often find themselves with multiple projects that
are ready to start simultaneously. These projects vary in their potential impact on the company’s
strategic goals. It is crucial, therefore, to prioritize the projects that will make the greatest
contribution to these objectives and launch them first. This concept forms the foundation of strategic
project prioritization.
Strategic prioritization involves determining the order in which projects are launched based on their
alignment with the company’s strategic goals. Projects that are deemed to have a higher strategic
value are given priority and are launched before others. This ensures that the company focuses its
resources and efforts on projects that will have the most significant impact on its overall objectives.
Once the projects have been launched, the focus shifts to operational priority. Operational priority
determines the order in which the work packages of the projects are processed. This prioritization
is based on factors such as resource availability, project dependencies, and project deadlines. The
operational priority takes precedence over the strategic priority at this stage, as it ensures that the
projects progress smoothly and efficiently.
While strategic prioritization is crucial in determining the order in which projects are launched,
its importance diminishes once the projects are in execution. At this stage, the focus shifts to the
buffer index, which measures the availability of buffer time in the project schedule. The buffer
index becomes the primary factor in determining the priority of work packages within the projects.
This ensures that the projects stay on track and any potential delays are identified and addressed
promptly.
In summary, strategic prioritization is essential in determining the order in which projects are
launched based on their alignment with the company’s strategic goals. Once the projects are in
execution, operational priority takes precedence in determining the order in which work packages
are processed. The buffer index becomes the primary factor in ensuring that the projects stay on
schedule. By effectively balancing strategic and operational priorities, companies can maximize
their project success and achieve their strategic objectives.
A4 Execution 41

A4.3 Closed Loop Control Mechanism in CCPM

In critical chain multi-project management (CCPM), the close loop control mechanism plays a
crucial role in ensuring the successful execution of projects. This control mechanism consists of
various control structures that are implemented along the project execution pipeline.
One example of a control structure is the self-control of the teams. This involves empowering the
teams to take ownership of their tasks and monitor their progress. By having this level of autonomy,
teams can identify any potential issues or delays early on and take corrective actions to keep the
project on track.
Another control structure is the robustness of the project plan. In CCPM, there is a focus on
minimizing planning overhead while still ensuring a comprehensive and reliable plan. This means
that the project plan is designed to be flexible and adaptable, allowing for adjustments to be made
as needed without causing significant disruptions to the overall project timeline.
The late start of tasks is also a control parameter in CCPM. By starting tasks as late as possible, the
project team can maximize the utilization of available resources and minimize the risk of resource
constraints. This approach helps to optimize the project schedule and ensure that tasks are completed
in a timely manner.
Broad applicability is another characteristic of CCPM’s control mechanism. Unlike traditional
project management methods that are often specific to certain industries or sectors, CCPM can
be applied to various types of projects, including software development. This versatility makes
CCPM a valuable tool for multi-project environments where there are multiple tasks to be processed
simultaneously.
The close loop control mechanism in CCPM is designed to continuously monitor and adjust the
project’s progress. It ensures that the project stays on track and meets the promised deadlines. By
implementing this control mechanism, organizations can effectively manage multiple projects and
seize desirable business opportunities as soon as possible.
Overall, CCPM’s close loop control mechanism is a powerful tool for project management. It
combines the principles of lean production management with specific skills required for successful
multi-project execution. With its focus on handling uncertainty and understanding the impact
of performance measurements on human behavior, CCPM provides a comprehensive approach to
project management that can lead to breakthrough results.
In a CCPM controlled environment, the control structures play a crucial role in maintaining the
flow of projects and ensuring that critical projects are consistently accelerated, resulting in a 95%
on-time delivery rate. These control structures operate at different levels and serve specific purposes
to effectively manage projects.
The pipeline meeting is responsible for the orderly introduction of new projects into the system. Its
primary objective is to protect the bottleneck from being overwhelmed or underutilized. During
this meeting, new projects are evaluated and prioritized based on their strategic importance and
A4 Execution 42

resource availability. By carefully managing the pipeline, the organization can ensure that projects
are initiated in a controlled manner, minimizing disruptions and maximizing efficiency.
The steering committee plays a vital role in ensuring that ongoing projects remain on track and
meet their deadlines. Comprised of key stakeholders and decision-makers, the steering committee
provides oversight and guidance to project teams. They review project progress, address any issues
or roadblocks, and make critical decisions to keep projects aligned with organizational goals. By
actively monitoring and steering projects, the steering committee helps maintain project momentum
and ensures timely delivery.
The shopfloor meeting focuses on continuous improvement at an operational level. This meeting
brings together project management professionals to discuss and analyze project management
processes. By sharing best practices, identifying areas for improvement, and implementing
corrective actions, the shopfloor meeting helps enhance the effectiveness and efficiency of project
management practices. It serves as a platform for learning, collaboration, and innovation, enabling
the organization to continually refine its project management capabilities.
The daily project team meeting is a crucial component of effective project execution. This meeting
brings together the project team members to discuss progress, address challenges, and coordinate
activities. By providing a forum for open communication and collaboration, the daily project team
meeting ensures that everyone is aligned and working towards the project’s objectives. It allows
for timely problem-solving, resource allocation, and decision-making, enabling the project to be
executed optimally.
In summary, the control structures in CCPM controlled environments are designed to maintain
project flow and accelerate critical projects. The pipeline meeting ensures the orderly introduction
of new projects, the steering committee provides oversight and guidance, the shopfloor meeting
focuses on continuous improvement, and the daily project team meeting facilitates effective
project execution. By leveraging these control structures, organizations can enhance their project
management capabilities and achieve consistent on-time delivery.

A4.3.1 Steering Committee

The Steering Committee plays a crucial role in the management of projects within an organization.
Comprised of senior management members, this committee is responsible for overseeing the
progress and success of various projects. One of the key responsibilities of the Steering Committee
is to ask important questions to project managers, particularly those in charge of critical or stuck
projects.
For red (critical) projects, the Steering Committee asks the project managers two main questions.
Firstly, they inquire about the buffer regain measures that the Project Leader (PL) and their
team are implementing to bring the project back to the yellow zone. This question aims to
understand the strategies and actions being taken to address any issues or delays in the project.
Secondly, the committee asks where management can provide assistance. This question emphasizes
A4 Execution 43

the importance of collaboration and support from senior management to ensure the successful
completion of critical projects.
Similarly, for stuck projects, the Steering Committee asks the project managers two key questions.
Firstly, they inquire about the measures being implemented by the PL and their team to get the
project back on track. This question aims to understand the specific actions being taken to overcome
any obstacles or challenges that have caused the project to stall. Secondly, the committee asks
where management can offer assistance. This question highlights the importance of identifying
areas where senior management can provide guidance, resources, or support to help move the project
forward.
In addition to asking these important questions, it is crucial for the Steering Committee to follow
up on the success of the planned measures. Persistence is key in ensuring that the actions taken
by project managers and their teams are effective in resolving any issues or delays. If the planned
measures do not yield the desired results, the committee must continue to follow up and explore
alternative solutions to ensure the project’s success.
Overall, the Steering Committee plays a vital role in project management by actively engaging
with project managers, asking important questions, and providing support and guidance. Their
involvement and follow-up are essential in ensuring the smooth progress and successful completion
of projects within the organization.

A4.3.2 Pipeline Meeting

The pipeline meeting is a crucial aspect of project management, as it addresses several important
questions and concerns. One of the primary focuses of this meeting is to determine the number
of projects that are currently labeled as “black.” The ultimate goal is to keep this number at zero,
indicating that all projects are progressing smoothly without any major issues or delays.
Another key aspect discussed in the pipeline meeting is the number of projects that are currently
labeled as “red.” The objective here is to keep these projects below a threshold of 10-15%. This
indicates that while there may be some challenges or obstacles, they are being effectively managed
and controlled.
During the meeting, the team also discusses the projects that are expected to be realized in the near
future, providing precise timelines. Additionally, they also consider projects that are planned for
the more distant future, providing rough estimates. This helps in aligning resources and planning
for upcoming projects.
The pipeline meeting also involves evaluating the maturity of projects that are about to start. It is
essential to ensure that these projects have the necessary maturity and are equipped with all the
required resources and information to commence successfully.
Furthermore, the meeting involves making decisions regarding when to start new projects or
evaluating scenarios and trade-offs for introducing new projects. This requires the involvement
of top management to assess the feasibility and impact of new projects on the existing pipeline.
A4 Execution 44

A critical aspect of the pipeline meeting is comparing the actual throughput of projects to the planned
throughput. This helps in identifying any deviations or discrepancies and allows for adjustments to
be made accordingly. It also helps in determining if the bottleneck, which refers to the constraint
that limits the overall throughput, is still in the right place and if it is stable.
In addition to these considerations, the pipeline meeting also examines other key performance
indicators (KPIs) such as on-time delivery, throughput per month, and bottleneck load. These
metrics provide insights into the overall performance and efficiency of the project pipeline.
Lastly, the pipeline meeting addresses the question of whether additional staff is needed and if so,
where. This is particularly important in identifying areas where the bottleneck may need to be
expanded to ensure smooth project flow and avoid any delays.
Overall, the pipeline meeting serves as a comprehensive platform to discuss and address various
aspects of project management, ensuring that projects are progressing smoothly, challenges are
managed effectively, and resources are allocated optimally.

A4.3.3 Shop Floor Meeting

A shop floor meeting is a crucial gathering of individuals who are responsible for managing
resources on the production floor. This meeting is held regularly and is designed to address any
disruptions or issues that may arise during the value creation process. The main objective of these
meetings is not to dwell on the problems themselves, but rather to focus on finding solutions and
implementing permanent improvements.
The purpose of a shop floor meeting is to shift away from a reactive, fire-fighting approach and
move towards achieving a “perfect day” in terms of production efficiency and effectiveness. During
these meetings, the team discusses any challenges or obstacles that have been encountered and
collaboratively works towards finding ways to overcome them.
The emphasis is placed on problem-solving and continuous improvement. The participants actively
engage in brainstorming sessions to identify the root causes of the issues and come up with
innovative solutions. The goal is to implement changes that will prevent similar problems from
occurring in the future, ultimately leading to a smoother and more efficient production process.
In a shop floor meeting, open communication and collaboration are key. All team members
are encouraged to share their insights, ideas, and suggestions for improvement. This inclusive
approach ensures that everyone’s expertise and perspectives are taken into account, leading to more
comprehensive and effective solutions.
The shop floor meeting serves as a platform for fostering a culture of continuous improvement
within the organization. It encourages employees to actively participate in problem-solving and
take ownership of their work areas. By addressing disruptions and finding solutions together, the
team becomes more empowered and motivated to achieve higher levels of performance.
Overall, the shop floor meeting is a vital component of effective resource management and
production optimization. It provides a structured forum for addressing challenges, finding solutions,
A4 Execution 45

and driving continuous improvement. By focusing on permanent improvements rather than

temporary fixes, these meetings contribute to the overall success and efficiency of the organization’s
value creation process.

A4.3.4 Daily Project Team Meeting

The daily project team meeting, also known as the stand-up, serves as a crucial tool in improving
communication and the overall project process. Its primary purpose is to facilitate faster feedback,
which in turn increases the speed at which the team progresses with the project. By addressing
barriers and obstacles early on, the team can promptly resolve any issues that may arise.
The stand-up meeting also plays a vital role in ensuring that the entire team is moving in the
same direction and working together towards a common goal. Through daily synchronization,
team members can align their efforts and stay on track with the project’s objectives. This level
of coordination helps to maintain a cohesive and efficient workflow.
One of the key aspects of the stand-up meeting is its focus on the Fever Curve signal and buffer
regain. The Fever Curve provides real-time indicators of critical projects, allowing the team to
identify which projects require immediate attention and resources. By staying within the yellow
zone of the Fever Curve, the team can ensure that progress and buffer consumption are effectively
managed.
During the stand-up, the team discusses the progress versus buffer consumption, keeping the
delivery date at the forefront of their minds. This helps to maintain focus and encourages the team
to proactively address any process problems that may arise. Additionally, the stand-up meeting
serves as a platform for team members to offer support and assistance to one another, ensuring that
tasks are completed efficiently and obstacles are overcome.
Overall, the daily project team meeting is an essential component of critical chain multi-project
management. It fosters effective communication, promotes collaboration, and enables the team to
stay on track with project goals. By leveraging the Fever Curve signal and maintaining a focus on
buffer regain, the team can increase stability, reliability, and ultimately achieve project success.

A4.4 Specific CCPM Role Definitions

In CCPM, the role of a Project Manager is crucial. They are responsible for overseeing the overall
execution of the project, ensuring that it stays on track and meets the set deadlines. The Project
Manager coordinates with various teams and departments to ensure smooth communication and
collaboration throughout the project.
The Resource Manager plays a vital role in CCPM by ensuring that the necessary resources are
available and allocated efficiently to different projects. They are responsible for managing the
availability and utilization of key resources, such as manpower, equipment, and materials. The
A4 Execution 46

Resource Manager works closely with the Project Manager to ensure that the right resources are
allocated to each project at the right time.
The Task Manager is responsible for managing individual tasks within a project. They ensure that
tasks are properly planned, assigned to the right team members, and executed according to the
project schedule. The Task Manager monitors the progress of each task and addresses any issues or
delays that may arise. They work closely with the Project Manager and Resource Manager to ensure
that tasks are completed on time and within budget.
The Pipeline Manager is responsible for managing the project portfolio and prioritizing projects
based on available resources. They ensure that projects are started at the right time, considering the
availability of key resources and the overall capacity of the organization. The Pipeline Manager
works closely with the Project Manager and Resource Manager to optimize the number of in-
progress projects and ensure that the portfolio is managed effectively.
Top Management, including executives and senior leaders, is responsible for overseeing the entire
project portfolio and ensuring that it is in good condition. They define the “good condition” of
the portfolio based on factors such as project performance, resource utilization, and alignment with
strategic objectives. Top Management is responsible for making strategic decisions regarding project
prioritization and resource allocation in both the short-term and medium-term perspectives.
In managing the portfolio in a short-term perspective, the roles of the Project Manager, Resource
Manager, Task Manager, and Pipeline Manager are involved in tactical prioritization. They work
together to prioritize projects based on immediate resource availability and project deadlines. They
ensure that projects are executed efficiently and that resources are allocated effectively to meet
short-term goals.
In managing the portfolio in a medium-term perspective, the roles of the Project Manager, Resource
Manager, Task Manager, and Pipeline Manager are involved in strategic prioritization. They consider
long-term resource availability, project dependencies, and strategic objectives to prioritize projects.
They work together to align the project portfolio with the organization’s strategic goals and ensure
that resources are allocated in a way that maximizes long-term value.
Buffer losses, which refer to the consumption of project buffers due to delays or disruptions, can be
absorbed through effective management and mitigation strategies. The roles of the Project Manager,
Resource Manager, Task Manager, and Pipeline Manager play a crucial role in identifying potential
risks and implementing measures to minimize buffer losses. They monitor project progress, address
issues promptly, and make necessary adjustments to ensure that buffer losses are minimized and the
project stays on track.
Overall, CCPM provides specific role definitions for the Project Manager, Resource Manager, Task
Manager, and Pipeline Manager to ensure effective project management and portfolio optimization.
These roles work together to achieve the highest possible throughput of projects, meet deadlines,
and deliver successful outcomes.
A4 Execution 47

A4.4.1 Project Manager

As a critical chain multi project management expert, the responsibility of the project manager
is crucial in ensuring the success of a project. The project manager is accountable for creating
a complete and well-controllable plan, and they are also responsible for ensuring that the team,
resource managers, and task managers are aware of their roles and responsibilities in initiating
buffer recovery actions when necessary. It is the project manager’s duty to document these actions
and track their effectiveness.
One of the tasks of the project manager is to explain the meaning and benefits of the project and how
it serves the company. They provide the necessary information and guidance to ensure that everyone
involved understands the purpose and importance of the project. Additionally, the project manager
is responsible for obtaining the necessary resources and support from all resource managers. They
ensure that the work packages have been properly checked and estimated in terms of time and effort.
Keeping the project plan up to date is another crucial task of the project manager. They ensure
that any changes or updates are accurately reflected in the plan and communicated to the team.
The project manager also acts as the main point of contact for the project, both internally and
externally. They represent the project in steering committees and ensure that necessary transparency
and reports are provided.
Monitoring the critical chain and supply buffers is an important responsibility of the project
manager. They keep a close eye on these buffers and take action if necessary to ensure that the project
stays on track. If buffer regain management is required, the project manager drives the process and
ensures that data about the root causes for buffer regain are collected for further investigation and
continuous improvement.
In addition to these responsibilities, the project manager may also perform other technical tasks
within the project. This can include tasks such as ensuring product cost compliance, managing
communication, addressing risks, and maintaining quality standards.
It is important to note that the project manager is not responsible for time, scope, and budget.
These aspects are typically managed by other stakeholders or departments within the organization.
The project manager’s focus is primarily on the overall coordination and execution of the project,
ensuring that all necessary tasks are completed and that the project progresses smoothly.
In summary, the project manager plays a critical role in the success of a project. They are responsible
for creating and maintaining a well-controlled plan, initiating buffer recovery actions, and ensuring
effective communication and coordination among team members. While they may perform various
technical tasks within the project, their primary responsibility lies in overseeing the project’s
execution and ensuring its overall progress.
Creating a controllable project plan is crucial for the success of any project. To achieve this, there
are several key factors that need to be considered. Firstly, it is essential to have a clearly defined
goal for the project, supported by a compelling business case. This ensures that everyone involved
understands the purpose and value of the project.
A4 Execution 48

Open and effective communication among all stakeholders is another important aspect. This
includes decision-makers, project managers, and team members. By fostering clear and open com-
munication, everyone can have a shared understanding of the project objectives and requirements.
This helps to avoid misunderstandings and ensures that everyone is on the same page.
To determine whether a project plan is well-controllable, there are certain criteria that can be used as
a checklist. Firstly, the focus should be on a few relevant deliverables, also known as work packages.
These deliverables should be defined based on functional aspects rather than hierarchy, teams, or
divisions. This ensures that the project plan remains focused and manageable.
The critical chain, which determines the duration of the project, must be clearly defined and visible.
It is important to ensure that the feeding chains, which are the tasks that lead into the critical chain,
are significantly shorter. This reduces the probability of changes to the critical chain and helps to
maintain control over the project.
Work packages should be sized in a way that allows the task manager to provide reliable updates on
the remaining duration on a daily basis. Typically, the duration of work packages should not exceed
two to three weeks. However, in cases where detailed subtask management or physical processes
are involved, the duration can be longer as long as the remaining duration can still be determined.
Each work package should have a clear definition of what constitutes “done,” which should be
negotiated with the consumer of the results. This ensures that there is a shared understanding
of the expected outcomes and helps to avoid any ambiguity.
Ownership of each work package should be assigned to a specific resource or task manager. This
person should have the most effort or the biggest interest in delivering a high-quality outcome. By
assigning ownership, accountability is established, and it becomes clear who is responsible for the
successful completion of each work package.
When estimating the duration and effort required for each work package, it is important that these
estimates are made by the resource or task manager, rather than the project manager. This ensures
that the estimates are based on the expertise and knowledge of the individuals who will be carrying
out the tasks.
Lastly, the work packages should be sorted in a way that makes the critical chain easy to see. Feeding
chains should enter the critical chain from below, allowing for a clear visualization of the project’s
critical path.
By adhering to these criteria and checklist, a project plan can be developed that is well-controllable.
This enables effective monitoring of progress, timely identification of imbalances, and the initiation
of corrective actions when necessary. Ultimately, a controllable project plan increases the chances
of project success and ensures that projects are delivered on time and within budget.

A.4.4.2 Resource Manager

The Resource Manager plays a crucial role in the critical chain multi project management (CCPM)
approach. Their primary responsibility is to ensure that the most critical work package is supplied
A4 Execution 49

with resources optimally, enabling it to be delivered quickly and with the highest quality. This
involves a range of tasks and responsibilities that contribute to the overall success of the project
portfolio.
One of the key tasks of the Resource Manager is to assign the task manager as soon as a task becomes
ready to start. This assignment is done based on the operational priority, which is determined using
a scatter plot. By carefully considering the priority, the Resource Manager ensures that tasks are
allocated to the most suitable task managers, maximizing efficiency and effectiveness.
Additionally, the Resource Manager is responsible for monitoring the performance of their task
managers. They regularly check whether the task managers are fulfilling their responsibilities and
meeting the required standards. This monitoring helps to identify any potential issues or bottlenecks
early on, allowing for timely intervention and resolution.
Another important aspect of the Resource Manager’s role is to observe the long-term resource
requirements of the projects. They are responsible for ensuring the establishment and development
of resources, ensuring that the necessary skills and capacities are available when needed. This
proactive approach helps to prevent resource shortages and delays in project execution.
The Resource Manager also plays a crucial role in promoting a flexible and problem-solving mindset
within their team. They actively work towards eliminating head monopolies and encourage their
team members to develop versatile problem-solving skills beyond their specific field of expertise.
This approach fosters a collaborative and innovative work environment, where challenges are
tackled collectively for the benefit of the entire project portfolio.
Furthermore, the Resource Manager is responsible for ensuring optimal working conditions for their
team. This includes ensuring that the work packages have all the necessary resources and tools,
minimizing multitasking to maintain focus and productivity, and providing sufficient breaks to
prevent burnout. By prioritizing the well-being and working conditions of their team, the Resource
Manager contributes to the overall success and efficiency of the projects.
It is important to note that, especially at the beginning of implementing CCPM, the role of the
Resource Manager and the Task Manager may be performed by the same person. This integration
allows for a seamless coordination and alignment of tasks and resources, ensuring a smooth
transition to the CCPM approach.
In conclusion, the Resource Manager in CCPM has a range of responsibilities and tasks that
contribute to the successful management of the project portfolio. From assigning task managers
to monitoring performance, observing long-term resource requirements, promoting flexibility and
problem-solving skills, ensuring optimal working conditions, and leading the team, the Resource
Manager plays a vital role in optimizing project execution and achieving desired outcomes.

A.4.4.3 Task Manager

The Task Manager plays a crucial role in the implementation of Critical Chain Multi Project
Management (CCPM). Their responsibility lies in providing daily feedback on the remaining uptime
A4 Execution 50

of tasks and taking proactive measures to ensure acceleration and fine-tuning actions across team
boundaries, if necessary.
To fulfill their tasks effectively, the Task Manager is required to inquire about the status of the
remaining maturities of all parties involved. This involves regularly communicating with team
members and stakeholders to gather updates on task progress. By staying informed about the status
of each task, the Task Manager can identify any potential bottlenecks or delays and take appropriate
actions to address them.
Another important task of the Task Manager is to coordinate problem-solving activities, particularly
in relation to buffer regain. In CCPM, buffers are strategically placed to protect the project schedule
from uncertainties and variations. If a buffer is consumed or at risk of being consumed, the Task
Manager takes the lead in coordinating efforts to regain buffer time and ensure that the project
remains on track.
Furthermore, the Task Manager plays a critical role in facilitating smooth handovers between work
packages. They keep the task managers informed about the upcoming work packages, enabling them
to prepare for a seamless transition. This is particularly important in cases where critical tasks are
involved, as any delays or miscommunications during handovers can have a significant impact on
the overall project timeline.
It is worth noting that, especially in the initial stages of implementing CCPM, the roles of the
Resource Manager and Task Manager may be performed by the same person. This is due to the
fact that CCPM introduces a different approach to managing projects, and organizations may need
time to adjust and allocate resources accordingly.
In summary, the Task Manager in CCPM is responsible for providing daily feedback on task progress,
coordinating problem-solving activities, ensuring smooth handovers between work packages, and
actively taking measures to accelerate tasks if needed. Their role is crucial in maintaining project
momentum and ensuring that the project portfolio remains in good condition.

A.4.4.4 Pipeline Manager

As a critical chain multi-project management expert, the Pipeline Manager plays a crucial role in
ensuring the smooth flow of work within the organization. One of their main responsibilities is to
support decision-makers by providing factual decision-making papers that help optimize the start of
projects. This involves preparing scenarios and trade-offs that consider various factors and potential
risks.
In addition to this, the Pipeline Manager also monitors the stability of the pipeline and identifies
any potential bottlenecks. They are responsible for warning the relevant stakeholders in case of an
imminent overload or underload, ensuring that the workload is balanced and resources are utilized
efficiently.
To fulfill these responsibilities, the Pipeline Manager performs a range of tasks. They prepare deci-
sion papers and scenarios whenever necessary, providing valuable insights and recommendations
A4 Execution 51

for strategic decisions. They also advise on the definition or change of the bottleneck, helping to
identify areas where improvements can be made.
Transparency is a key aspect of the Pipeline Manager’s role. They establish transparency regarding
buffer consumers, which refers to the projects or processes that consume the buffer time allocated for
each project. By understanding these buffer consumers, the Pipeline Manager can develop effective
buffer recovery measures to ensure that projects stay on track and any potential delays are mitigated.
Furthermore, the Pipeline Manager supports decision-makers in analyzing structural buffer con-
sumers, which are often caused by process errors or inefficiencies. They work closely with the
relevant stakeholders to identify these issues and implement process improvement measures to
address them.
In addition to their responsibilities within the pipeline management process, the Pipeline Manager
often serves as a contact person and consultant for topics related to Theory of Constraints (TOC)
and Critical Chain Project Management (CCPM). They provide guidance and expertise to project
managers and other managers, helping them understand and implement these methodologies
effectively.
It is important to note that while the Pipeline Manager plays a critical role in optimizing project flow
and ensuring the success of the organization, they also rely on the collaboration and cooperation of
other stakeholders. The success of the pipeline management process depends on the collective effort
of all team members and their commitment to following the established protocols and strategies.
In conclusion, the Pipeline Manager is responsible for supporting decision-makers, monitoring the
stability of the pipeline, and ensuring the efficient utilization of resources. Through their tasks,
they provide valuable insights, establish transparency, and support process improvement measures.
Additionally, they serve as a consultant and contact person for TOC and CCPM topics, providing
guidance and expertise to project managers and managers.

A4.4.5 Top Management

Responsibility:
In the realm of critical chain multi project management, the responsibility of ensuring the allocation
of new projects in a manner that promotes sustainable growth and increased throughput falls upon
the Top Management. This crucial role involves making strategic decisions that contribute to the
overall success of the organization.
Tasks:
One of the primary tasks of the Top Management is to ensure that the bottleneck, which refers to
the constraint or limiting factor in the system, is never overloaded or underutilized. This involves
carefully managing the allocation of resources and staffing the project portfolio in alignment with
both short-term and long-term strategies.
Additionally, the Top Management is responsible for effectively managing sales and innovation
efforts. They must ensure that the new capabilities created by critical chain multi project
A4 Execution 52

management are utilized in a profitable and sustainable manner. This requires a keen understanding
of market dynamics and the ability to capitalize on the organization’s strengths.
Tracking the effectiveness of buffer recovery measures in projects and process improvements is
another important task of the Top Management. By monitoring and evaluating the outcomes of
these measures, they can identify areas for improvement and make informed decisions to enhance
project performance and overall efficiency.
Furthermore, the Top Management plays a crucial role in fostering cooperative cooperation between
project managers, resource managers, and task managers. By promoting collaboration and effective
communication among these key stakeholders, they can ensure that projects are executed smoothly
and in alignment with the organization’s objectives.
Disclaimer:
It is important to note that finding optimal decisions for the entire company typically requires
collective input from the entire Top Management team, encompassing all functions within the
organization. This collaborative approach ensures that decisions are well-rounded and consider
the diverse perspectives and expertise of each member. By working together, the Top Management
can make informed choices that benefit the organization as a whole.

A4.4.6 Full Kit Manager

Responsibility:
In the realm of critical chain multi project management, the role of the Full Kit Manager is crucial.
This expert is responsible for providing support to project applicants in the development of project
briefs, also known as chartas. The main objective is to ensure that new projects are prepared and
planned in a manner that allows for safe and efficient management. By doing so, the Full Kit
Manager aims to minimize surprises and complications that may arise during the project due to
missing information.
To fulfill this responsibility, the Full Kit Manager takes certain tasks into consideration. One of these
tasks involves securing knowledge about good project plans, which can be achieved through the use
of checklists. By having access to these checklists, the Full Kit Manager can ensure that all necessary
elements are included in the project plan, reducing the likelihood of overlooking important details.
Additionally, the Full Kit Manager plays a crucial role in preventing unnecessary energy from being
expended during project preparation. This is important because excessive focus on certain aspects
of the project can lead to missed opportunities. By carefully managing the preparation process, the
Full Kit Manager ensures that resources are allocated efficiently and that all necessary steps are
taken without wasting valuable time and effort.
Disclaimer:
It is important to note that the role of the Full Kit Manager may not be present in all project
implementations. While this position is highly recommended for effective project management,
A4 Execution 53

it is not explicitly installed in every case. In situations where the Full Kit Manager is not designated,
the responsibilities associated with this role are typically fulfilled by the Pipeline Manager.
In conclusion, the Full Kit Manager plays a vital role in critical chain multi project management.
Their responsibilities include supporting project applicants in the development of project briefs,
ensuring that new projects are prepared and planned effectively. By securing knowledge about good
project plans and preventing unnecessary energy expenditure, the Full Kit Manager contributes to
the successful execution of projects. However, it is important to acknowledge that the presence of
a Full Kit Manager may vary depending on the specific project implementation, with the Pipeline
Manager often assuming these responsibilities in their absence.

A4.5 Relay Runner Principle

The Relay Runner Principle is a concept used in project management, specifically in the context
of the critical chain approach. The critical chain refers to the sequence of tasks or activities that
determine the overall duration of the project. These tasks are often interdependent, meaning that
the completion of one task is necessary for the start or continuation of another. The critical chain
represents the longest path of tasks, and any delay in this chain will directly impact the project’s
timeline.
The Relay Runner Principle is about maintaining a constant and efficient flow of work along the
critical chain. It draws inspiration from a relay race, where a team of runners passes a baton from
one runner to another in order to complete the race. The goal of the relay race is to win, and each
runner runs their leg as fast as possible before handing off the baton to the next runner.
In project management, the Relay Runner Principle emphasizes the importance of ensuring that
the critical chain is never stopped or delayed. To achieve this, project managers should allocate the
maximum effective number of resources to the projects. Instead of thinly spreading resources across
multiple tasks and projects, it is crucial to concentrate resources on the critical chain. This means
that the resources should be dedicated to completing the tasks in the critical chain as quickly as
possible.
By following the Relay Runner Principle, project teams can maintain a constant running speed along
the critical chain, just like relay runners passing the baton smoothly. This principle helps to minimize
delays and bottlenecks, ensuring that the project progresses efficiently.
In high-speed projects, where time is of the essence, the Relay Runner Principle becomes even more
crucial. The critical chain is the backbone of such projects, and any delay or disruption in this chain
can have significant consequences for the overall timeline.
Therefore, project teams need to adopt the Relay Runner Principle as part of their culture. They
should prioritize the critical chain, allocate resources accordingly, and ensure that the flow of work
is maintained without interruptions. This principle promotes a sense of urgency, efficiency, and
collaboration among team members, ultimately leading to successful and timely project completion.
A4 Execution 54

In summary, the Relay Runner Principle in project management is about maintaining a constant and
efficient flow of work along the critical chain. It emphasizes the importance of allocating resources
effectively, focusing on speed and efficiency, and ensuring that the critical chain is never stopped or
delayed. By following this principle, project teams can achieve high-speed projects and meet their
deadlines effectively.

A4.6 Dashboard
In critical chain multi project management (CCPM) organizations, a dashboard plays a crucial role
in monitoring and analyzing key performance indicators (KPIs). One important chart that can be
included in the dashboard is the “Over the line” chart, which tracks the throughput and operating
expenses over time. This chart provides a visual representation of how these metrics are performing
and allows for easy identification of any trends or anomalies.
Another important KPI to consider is the due date reliability. This metric measures the relative
number of projects that are finished within their designated timeframes. By tracking this KPI,
organizations can assess their ability to meet project deadlines consistently and identify any areas
for improvement.
Throughput is another essential KPI that should be included in the dashboard. It measures both the
number of active tasks and the number of finished tasks. By monitoring throughput, organizations
can gain insights into their project progress and identify any bottlenecks or areas where tasks are
getting delayed.
The dashboard should also include information on the relative number of black and red projects.
Black projects are those that have consumed all of their buffer and are unable to meet the due date.
On the other hand, red projects are at risk of not meeting the due date as their buffer consumption
exceeds their progress. By tracking the relative number of black and red projects, organizations
can identify projects that require immediate attention and implement buffer regain measures if
necessary.
Additionally, the dashboard should provide insights into the relative feedback rate for “remaining
duration” given within a day. This metric measures how quickly feedback is provided on the
estimated remaining duration of tasks. A high feedback rate indicates effective communication
and collaboration within the organization, enabling timely adjustments to project plans.
Lastly, the dashboard should include information on the work-in-progress (WIP) and the relative
load of the bottleneck and bottleneck-related resource groups. By monitoring the WIP and the load
on bottleneck resources, organizations can identify areas where resources are being overutilized or
underutilized. This information can help in optimizing resource allocation and improving overall
project efficiency.
In summary, a well-designed dashboard for CCPM organizations should include KPIs such as the
“Over the line” chart, due date reliability, throughput, relative number of black and red projects,
feedback rate for remaining duration, and WIP. By regularly monitoring these metrics, organizations
A4 Execution 55

can gain valuable insights into their project performance, identify areas for improvement, and make
data-driven decisions to enhance their overall project management effectiveness.

Figure 11. Example of a typical CCPM Cockpit: (a) the Roadmap with perfect staggered, (b) the Quality of the
Estimated Time To Completion Feedbacks, (c) the Portfolio Overview/Scatter Plot, and (d) the reporting on the Buffer
Regain Measures
A5 Learning as Fast as Possible
A running CCPM-Software is an invaluable tool for a critical chain multi project management
expert like myself. It allows us to quickly gather and analyze data, providing us with the necessary
information to make informed decisions and improve the system. One of the key insights we gain
from this data is the identification of projects that consume a significant amount of buffer. This
knowledge is crucial as it directs our focus towards areas that require continuous improvement
actions with a high potential for positive impact.
It is important to note that at least half of the increase in throughput achieved during the
implementation of CCPM is a result of continuous improvement measures. This highlights the
significance of the CIP (Continuous Improvement Process) in maximizing the benefits of CCPM.
CIP Loop 1 focuses on the buffer consumption of individual projects. By closely monitoring
the buffer consumption, we gain valuable insights into the areas within the project that require
improvement. This allows us to identify where and how we can make up for lost time and get the
project back on track. Through this iterative process, we continuously learn and adapt, ensuring
that we are constantly improving our project execution.
CIP Loop 2 takes a broader perspective by analyzing the project portfolio as a whole. By examining
multiple projects, we can identify patterns and trends in time loss across the organization. This
enables us to develop solutions at an organizational level, addressing systemic issues that may be
hindering project performance. By learning from all the projects, we can implement changes that
have a far-reaching impact, improving overall efficiency and effectiveness.
In conclusion, learning as fast as possible is essential in the world of critical chain multi project
management. The use of a running CCPM-Software allows us to gather and analyze data, providing
us with valuable insights for continuous improvement. Through CIP Loop 1, we focus on individual
projects, identifying areas for improvement and taking corrective actions. CIP Loop 2 takes a broader
perspective, analyzing the project portfolio to identify systemic issues and develop organizational-
level solutions. By continuously learning and adapting, we can maximize the benefits of CCPM and
drive success in our projects.

A5.1 Stabilize CCPM Methods and Tools

In the world of critical chain multi project management (CCPM), stabilizing methods and tools is
crucial for successful project execution. One important aspect of this is the continuous improvement
process (CIP) loop 1, which specifically focuses on project-oriented buffer regain.
During the start phase of implementing CCPM, analyzing the buffer consumption becomes essential.
This analysis helps in cleaning up the project plans and ensuring that they are controllable.
A5 Learning as Fast as Possible 57

By identifying the factors that consume the buffer, project managers can make valuable single
improvements within the projects.
The goal of CIP loop 1 is to regain control over the buffer and ensure that it is used effectively. This
process involves closely monitoring the buffer and identifying any unfavorable variability. By doing
so, project managers can take proactive measures to address potential issues and prevent delays.
Analyzing the buffer consumption also helps in identifying areas where improvements can be made.
By understanding how the buffer is being utilized, project managers can make informed decisions
about resource allocation and task prioritization. This leads to more efficient project planning and
execution.
The implementation of CIP loop 1 requires a mindset that values continuous improvement and a
willingness to adapt and make changes as needed. It is important to regularly review and analyze
the buffer consumption to identify areas for improvement. This process should be integrated into
the project management practices to ensure that projects stay on track and meet their deadlines.
Overall, CIP loop 1 in CCPM is a valuable tool for stabilizing project execution. By focusing on
project-oriented buffer regain, project managers can identify and address issues that may arise
during the project lifecycle. This continuous improvement process leads to more efficient and
successful project outcomes.

A5.2 FIP - Focused Improvement Process

In the focused improvement process (FIP), we aim to address the root causes of issues and improve
the performance of our organization. One important aspect of FIP is the CIP loop 2, which focuses
on learning from our previous improvement efforts and continuously improving our processes.
By implementing CIP measures at the bottleneck, which is often the critical chain in project
management, and at the constraint, which is the system bottleneck, we can identify and eliminate
buffer eaters. Statistical methods are used to examine the pipeline manager, who is often the process
owner, and process improvements are implemented using the Deming Circle plan, do, check, act.
It is important to approach the constraint in a careful manner to ensure that it does not uninten-
tionally move. If the constraint does move, we need to first carry out improvement measures on
constraint-like processes and increase their performance before continuing at the constraint again.
It is worth noting that the root cause for the restriction is not always located at the constraint or on
the critical chain. Sometimes, the effects of the root causes are felt at these points. For example, if the
assembly of a plant is on the critical chain and consistently takes longer than planned, the root causes
may be incomplete deliveries, such as missing documents or untested and faulty subassemblies.
To effectively address these issues, it is crucial to have the support and involvement of top
management. The logbook becomes the most important document in the company, as it helps us
track and address structural root causes. Through timely transparency and a unified operational
priority for all initiatives, we can ensure that the FIP is implemented successfully.
A5 Learning as Fast as Possible 58

In conclusion, the focused improvement process (FIP) is a systematic approach to address the root
causes of issues and improve the performance of our organization. By implementing CIP measures
at the bottleneck and constraint, and involving top management, we can effectively eliminate buffer
eaters and improve our processes. The logbook becomes a valuable tool in tracking and addressing
structural root causes, leading to continuous improvement and success.

Figure 12. Examples of two FIP Logbooks - based on buffer consumption root causes and measures are defined and
the execution tracked
S CCPM Summary
In the previous chapter, we delved into the intricacies of Critical Chain Project Management (CCPM).
Now, let’s take a step back and provide a summary of what CCPM entails, as well as the success
factors that have emerged from over 50 successful implementations.
CCPM is a powerful project management approach that goes beyond simply aggregating safety
time. It encompasses three core principles that are essential for its successful implementation. These
principles serve as the foundation for making your portfolio and project management more agile by
combining CCPM with the power of agile methods at the team level.
While agile concepts often thrive within small teams and single product environments, larger
projects or organizations face the challenge of managing multiple teams and projects simultaneously.
This is where CCPM comes into play, offering a solution to make your project management more
agile on a larger scale.
To achieve something great or on a large scale, it becomes necessary to work with numerous internal
teams and external partners. CCPM provides the key to delivering projects faster, at lower costs,
and with greater predictability. By implementing CCPM, organizations like Amdocs, a B2B software
company, have witnessed significant improvements in project productivity and quality.
However, implementing CCPM is not without its challenges. While most success stories have been
observed in projects where the majority of the team works for a single organization, it becomes
more complex when contractors are involved, as is often the case with capex projects. Exploiting
CCPM in such scenarios requires careful management and collaboration among the project team.
CCPM is proven to deliver a step-change improvement in project performance across various
industries. It consists of two fundamental pillars: planning and managing projects using CCPM, and
selecting and contracting with the most important project contractors/suppliers through a Project
Alliance. Both elements are crucial for the success of Breakthrough PM, and their absence can make
implementation challenging and time-consuming.
In addition to CCPM, there are other project improvement techniques that can complement its
effectiveness. These techniques, when combined with CCPM and Project Alliancing, can produce
remarkable results. The next section will explore these techniques in more detail, providing insights
into how they align with CCPM and enhance project management.
In conclusion, CCPM is a comprehensive project management approach that offers a solution for
managing multiple teams and projects in larger organizations. By combining CCPM with agile
 60

methods at the team level, organizations can achieve greater agility and deliver projects faster,
at lower costs, and with improved predictability. The success factors distilled from numerous
implementations highlight the importance of careful planning, collaborative contracting, and
effective project management techniques.
S1 In a Nutshell“

Figure 13. Critical Chain Project Management on one Page

In the world of critical chain multi project management, one of the key challenges is managing
the work in progress (WIP) and resource usage. It is easy to fall into the trap of having too much
WIP, which can lead to inefficiencies and delays. To break this cycle, it is important to identify the
bottleneck in the system and stagger the projects accordingly. By doing so, we can ensure that the
constraint is not overloaded and resources are distributed optimally.
To ensure good preparation and reduce effort in the constraint, it is crucial to define a responsible
person who will oversee the preparation of projects. This includes ensuring that work packages
are well-prepared before they enter the constraint. By doing so, we can minimize the chances of
encountering unexpected issues and delays in the execution phase.
Traditional project planning often suffers from estimations and wrong assumptions. The “studenten-
syndrom” and Parkinson’s Law can lead to unrealistic expectations and delays. To address this
problem, we need to fix the planning process by incorporating buffers into the project plan. These
buffers, such as project buffers and integration buffers, allow for unforeseen events and provide
flexibility in meeting deadlines. Additionally, milestones can be both helpful and detrimental, so
careful consideration is needed when incorporating them into the project plan.
S1 In a Nutshell“ 62

Execution is a critical aspect of CCPM, and priorities play a significant role in ensuring smooth
operations. Operative priorities are necessary to guide the team in making decisions and allocating
resources effectively. In CCPM-controlled environments, control structures are put in place to ensure
that the project plan is followed and progress is monitored. Roles such as the Project Manager,
Resource Manager, Task Manager, Pipeline Manager, and Decision Maker are designed specifically
for CCPM projects. The relay runner principle is applied, where tasks are handed over from one
team member to another, ensuring a smooth flow of work. Dashboards are used to provide a visual
representation of the project’s progress and help in decision-making.
Learning is a continuous process in CCPM, and it is essential to stabilize the methods and tools
used. The Focused Improvement Process (FIP) is implemented to analyze the buffer consumption
and identify areas for improvement. Buffer regain measures are taken to ensure that the ratio of
red projects (projects at risk of missing deadlines) is below 15%. By learning from each project and
implementing improvements step-by-step, we can continuously enhance our processes and achieve
better results.
In conclusion, critical chain multi project management requires careful management of WIP and
resource usage, good preparation, effective project planning, efficient execution, and continuous
learning. By implementing these key ideas, we can optimize project performance, meet deadlines,
and deliver successful outcomes.
S2 Success Factors
The core problem that often arises in project management is local optimization. Each department
or team focuses on maximizing their own efficiency without considering the impact on the overall
project. This leads to bottlenecks and delays, as resources are not allocated effectively and projects
are not prioritized correctly.
The solution to this problem is to decide locally but act globally. This means looking at all projects
at once and identifying the constraint, the area or process that is limiting the overall flow of work.
By staggering projects according to their strategic priority at the constraint, we can ensure that
it is never overloaded or underloaded. This optimal flow allows for fast output and ensures that
resources are not waiting for work.
To achieve this, every project must have a clear understanding of its “criticality.” This is derived from
the progress versus buffer consumption, which indicates how close the project is to its deadline. This
information is used to adjust resource allocation and ensure reliable delivery. By having one signal
for all projects, we can generate synchronous working and avoid unnecessary delays.
In order to maintain trust in the project status, it is crucial to have a daily feedback system. This
includes providing feedback on the remaining duration of all open work packages and calculating
the fever curve, which shows the buffer status. This information is used to allocate resources and
make informed decisions. By adhering strictly to the red-yellow-green status, we can ensure that
project plans are realistic and useful.
Another important aspect of successful project management is continuous improvement. By
analyzing the buffer consumers, the projects that are consuming the most buffer, we can identify
root causes of process problems and focus on improving them. This focused kaizen approach allows
for daily process improvements and sharpens the axe, reducing project lead times and ensuring that
process problems occur and can be solved.
To implement these success factors, it is crucial to underload the organization. This means ensuring
that people have enough protective capacity to handle disruptions and solve problems effectively.
By providing enough resources and support, we can create an environment where teams can work
efficiently and deliver high-quality results.
Overall, by implementing these key ideas, we can overcome the challenges of local optimization and
achieve success in project management. By looking at the big picture, providing clear signals, and
continuously improving processes, we can ensure that projects are delivered on time and with high
quality.
B Deep Dives
In the previous part of this book, we covered the essential topics of critical chain multi project
management in a practical and hands-on manner. However, in this chapter, we will take a deeper
dive into several specific topics and explore the background behind them.
The purpose of this chapter is to provide a more detailed understanding of these topics and shed
light on the underlying principles. By delving into the intricacies of critical chain multi project
management, we aim to equip you with a comprehensive knowledge that goes beyond the surface
level.
Throughout this chapter, we will explore various aspects of critical chain multi project manage-
ment, examining the theories and concepts that underpin its effectiveness. By gaining a deeper
understanding of these topics, you will be better equipped to implement and utilize critical chain
multi project management strategies in your own organization.
It is important to note that this chapter does not provide a step-by-step guide or a one-size-fits-
all solution. Instead, it aims to provide you with the necessary knowledge and insights to make
informed decisions and adapt critical chain multi project management principles to suit your specific
needs and circumstances.
By exploring these topics in more detail, we hope to empower you with the knowledge and un-
derstanding to effectively implement critical chain multi project management in your organization.
This chapter serves as a valuable resource for those seeking a deeper understanding of the principles
and practices that drive hyper-productivity and success in project management.
In conclusion, this chapter serves as a bridge between the foundational knowledge covered in the
previous part of the book and the practical application of critical chain multi project management. By
delving into these topics in more detail, we aim to provide you with a comprehensive understanding
that will enable you to make informed decisions and drive success in your organization.
B1 Physics of Flow
In this chapter, we delve into the fascinating world of the physics of flow. We aim to shed light on
the underlying laws that govern the movement and efficiency of work within organizations. These
laws have been observed and validated through the experiences of countless companies that have
grappled with the challenges of excessive work in progress (WIP).
One of the fundamental laws we explore is known as Little’s Law, which is often referred to as
the law of time. Little’s Law provides us with a mathematical understanding of lead time, or the
time it takes for a project, initiative, or order to be completed. It states that the average number of
customers or work items in a system is equal to the average arrival rate multiplied by the average
time spent in the system. In practical terms, this means that lead time can be calculated by dividing
the work in process (WIP) by the throughput.
Little’s Law is particularly valuable in stable systems where the inflow and outflow of work are
balanced. By reducing the WIP to its lowest possible level without disrupting the flow, we can
effectively decrease the lead time and allow for a smoother and more efficient process. This
reduction in WIP also tends to minimize mistakes, negative multitasking, and flow disruptions,
ultimately leading to higher throughput.
Another important law we explore is Goldratt’s Law, also known as the law of throughput. This
law, derived from the Theory of Constraints, focuses on the rate at which work is completed within
a system. It emphasizes the importance of identifying and addressing bottlenecks or constraints that
hinder the flow of work. By optimizing the throughput, organizations can achieve higher levels of
productivity and performance.
Understanding these laws is crucial for managers and professionals in their pursuit of effective
project and process management. By applying the principles of Little’s Law and Goldratt’s Law,
we can gain insights into how to speed up time-to-market and improve overall efficiency. These
laws are not mere theoretical concepts but scientifically proven principles that can be validated by
anyone, regardless of their beliefs.
As we delve deeper into the topic, we also explore the impact of these laws on agility and the
reduction of inventory in knowledge work. Little’s Law, in particular, plays a significant role in
agile methodologies such as Kanban, where it is utilized in a probabilistic manner. The Theory of
Constraints also relies on Little’s Law in a deterministic fashion for operations management.
Reducing WIP in knowledge work is crucial for enabling flow, which in turn leads to stellar financial
performance. High levels of WIP render planning and estimating efforts futile, as the passage of time
becomes increasingly unpredictable. By embracing the principles of Little’s Law and Goldratt’s Law,
organizations can effectively reduce WIP, shorten lead times, and achieve greater levels of efficiency
and success.
B1 Physics of Flow 66

In conclusion, the physics of flow provides us with valuable insights into the dynamics of work
within organizations. Little’s Law and Goldratt’s Law serve as guiding principles for optimizing
lead time and throughput, respectively. By understanding and applying these laws, managers
and professionals can navigate the complexities of project and process management with greater
efficiency and success.

B1.1 Little’s Law

Figure 14. A graphical explanation of Little’s Law. We use it as Lead Time = Work in Process divided by Throughput

According to Little’s Law, the lead time of a work package is directly proportional to the number of
work packages in the system. The formula for this law is average lead time = average WIP / average
throughput. To understand this concept, let’s consider the cash-out process at a supermarket. When
there is only one customer at the cash-out, the lead time for the payment process is very short.
However, as more customers join the queue, the cash-out process takes longer for each customer.
The lead time for each customer is a combination of the actual processing time and the waiting time
in the queue.
To achieve a shorter lead time, it is crucial to minimize the amount of work in the system. This
means that there should not be too many work packages waiting to be processed. If we want to
reduce the time to market by half, the key is to reduce the work in process (WIP) by half. This
means that we need to ensure that there are fewer work packages in the system at any given time.
Managers have a strong argument for reducing WIP because it leads to immediate improvements
B1 Physics of Flow 67

in lead time. By reducing the amount of work in process, the flow of work becomes smoother and
more efficient. This results in shorter lead times and faster time to market. Additionally, reducing
WIP often leads to a decrease in mistakes, negative multitasking, and flow disruptions. These
improvements ultimately lead to higher throughput, which is the rate at which work is completed.
The effect of reducing WIP can be compared to an afterburner. Just as an afterburner provides an
extra boost of power to an aircraft, reducing WIP provides a significant boost to the flow of work.
When WIP is reduced, lead time decreases and throughput increases. This immediate improvement
in flow allows for faster and more efficient completion of work packages.
In summary, Little’s Law teaches us that the lead time of a work package is influenced by the amount
of work in process. By reducing WIP, managers can significantly improve lead time and time to
market. This reduction in WIP leads to smoother flow, fewer mistakes, and higher throughput. It is
like adding an afterburner to the process, providing a powerful boost to the efficiency and speed of
completing work packages.

B1.2 Goldratt’s Law

Figure 15. A graphical explanation of Goldratt’s Law. We use it as Throughput = average Capacity of the Constraint
divided by average effort in the Constraint

The concept of throughput in a system is crucial for understanding its overall performance.
According to Goldratt’s Law, the average throughput of a system can be determined by dividing
the average capacity in the constraint by the average effort required in the constraint. This law
B1 Physics of Flow 68

emphasizes the importance of closely examining the capacity and effort within the constraint of a
company’s operations.
To effectively apply Goldratt’s Law, companies must pay attention to the capacity within the
constraint and the actual time and effort it takes to process a work package or item. By analyzing
these factors, organizations can gain insights into the efficiency and productivity of their operations.
One key aspect highlighted by Goldratt’s Law is the need to minimize waiting times within the
constraint. This can occur when workers are occupied with other tasks or when work packages
are left waiting to be processed. To ensure that Goldratt’s Law is effective, companies must either
eliminate these waiting times or reduce the capacity of the constraints to accommodate them.
By focusing on the constraint and optimizing its capacity and effort, companies can improve their
overall throughput. This means that they can generate goal units at a faster rate and achieve
their desired outcomes more efficiently. Goldratt’s Law provides a framework for organizations
to identify and address the factors that limit their throughput, ultimately leading to improved
performance and profitability.
In summary, Goldratt’s Law emphasizes the significance of the constraint in determining the
throughput of a system. By closely examining the capacity and effort within the constraint,
companies can identify areas for improvement and optimize their operations. Minimizing waiting
times within the constraint is essential for maximizing throughput and achieving desired outcomes.
Applying Goldratt’s Law can help organizations enhance their overall performance and drive success
in their operations.
B1 Physics of Flow 69

B1.3 The Math Behind Estimations

Figure 16. Introduction into the math of probability curves to use in estimations in projects: A shows three work
packages with their buffer under the probability curve and the remaining risk; B shows aggregating the buffers at the
end, which leads to minimal risk; C shows reduced buffer, leading to shorter projects with reasonable risk

In order to calculate the probability of success in a project, it is important to understand the

distribution function of estimations. This function represents the relative probability of meeting
a deadline or effort. It consists of three values: the optimistic value (O), the realistic value (R), and
the pessimistic value (P).
The optimistic value represents the best-case scenario, where everything runs smoothly and the
project is completed without any issues. This value cannot be undershot under any circumstances.
On the other hand, the pessimistic value represents the worst-case scenario, where everything
goes wrong and the project faces numerous challenges. This value is relatively improbable and
approaches zero as it gets closer to the X-axis.
In between the optimistic and pessimistic values lies the realistic value, which is the most likely
outcome. This results in an asymmetric probability distribution. To simplify the calculation, this
distribution can be approximated using two triangles. By doing so, one can calculate the absolute
probability (area under the curve) for each value or vice versa.
When it comes to project planning, the value with 50% absolute probability is usually used. This
value is obtained by taking the sum of the 50% values of the absolute probabilities of the individual
work packages. This approach allows for the balancing of early and late work arrivals.
B1 Physics of Flow 70

In a project environment where there is a lot of pressure or work-in-progress, resource managers

tend to provide pessimistic estimates for their own safety. Even in an environment where clients
are risk-averse, estimates tend to be pessimistic. As a result, estimates often come close to the 95%
absolute probability, which is twice as large in value as the 50% value.
To calculate the probability of success over time, the probability curves can be convolved. This
results in the relative probability of success over time. By integrating the curve, one can obtain the
absolute probability of success over time or at least get an idea of it. From experience, it is known
that aiming for a 100% probability of success is unrealistic and costly. A probability of around 80%
is considered acceptable and provides a realistic chance of success.
To achieve a balanced backlog, velocity, and due-date, it is important to communicate and negotiate
with the product owner and stakeholders. This may involve reducing the number of stories in the
backlog, allocating more resources, or adjusting the due-date by changing the number of sprints.
This collaborative effort ensures a realistic probability of success for the team and the release.
In conclusion, understanding the distribution function of estimations and selecting the appropriate
value for project planning is crucial for determining the probability of success. By considering the
optimistic, realistic, and pessimistic values, and taking into account the specific project environment,
a balanced approach can be achieved. This allows for a realistic chance of success and ensures
effective project management.
B2 From Bottleneck to Constraint
Constraints play a crucial role in project management, as they provide valuable insights and help
make strategic decisions. Unlike bottlenecks, which hinder the smooth flow of work, constraints
are the key areas that need to be actively managed. It is important to understand and appreciate the
value of constraints in order to optimize project performance.
Bottlenecks, on the other hand, are real, local, or temporary constraints that prevent the best
utilization of the main constraint. They create congestion and hinder the flow of work, leading to
delays and inefficiencies. It is essential to identify and eliminate bottlenecks as quickly as possible
to ensure smooth project execution.
As a critical chain multi-project management expert, my focus is on identifying and managing
constraints effectively. Constraints provide a clear direction for decision-making and resource
allocation. By actively managing the constraint, we can align the project flow and eliminate negative
multitasking or congestion.
While bottlenecks may arise during the project, they should not be confused with constraints.
Bottlenecks are obstacles that need to be addressed promptly to ensure optimal utilization of the
constraint. By resolving bottlenecks, we can ensure that work flows smoothly and efficiently,
maximizing project throughput.
In the world of knowledge-based organizations, the Theory of Constraints serves as a catalyst for
continuous performance improvement. It helps organizations understand the nature of constraints
and provides tools like Drum-Buffer-Rope scheduling and Critical-Chain buffer management to
enhance project management methodologies like Scrum.
Constraints are not constantly shifting, as commonly believed. By limiting their capacity and
taking targeted actions with throughput, investments, and operating expenses, we can pin down
and manage constraints effectively. The Buffer Fever Chart is a fantastic tool that brings project
attributes to a relative scale, aiding in constraint management.
To achieve a hyper-productive organization, it is important to understand the main features that
characterize it. Part I of this book delves into these features, including patterns and pattern
languages. While patterns may not be of interest to everyone, they provide valuable insights into
organizational change and flow of work.
In conclusion, constraints are valuable assets in project management, providing direction and aiding
in decision-making. It is important to differentiate between constraints and bottlenecks, actively
managing the former while swiftly addressing the latter. By embracing constraints and eliminating
bottlenecks, we can ensure smooth project execution and maximize performance.
B2 From Bottleneck to Constraint 72

B2.1 Abstractions of Constraints

Figure 17. Different abstractions of constraints - from real constraints (bottom), virtual constraints (in the middle) to
market constraints at the top

In the realm of project management, constraints play a crucial role in determining the success of a
project. However, the nature of constraints differs between production-based work and knowledge-
based work or projects. In production, real constraints are typically clear and tangible, such as
limited resources or time. These constraints can be identified and addressed directly.
On the other hand, in knowledge work or projects, the variability and unpredictability of resources
and estimates make it challenging to fix constraints at a resource level. This is where the concept of
virtual constraints comes into play. Virtual constraints are more abstract and represent the critical
phases or activities in a project where the best minds and expertise are required.
One such phase is the integration phase, where various components or elements of a project come
together for the first time. This phase is of utmost importance and requires the collaboration
of experienced individuals and top management representatives. Due to the complexity and
uniqueness of this phase, it is often used as the virtual constraint in project environments. The
integration phase serves as a bottleneck, as there will never be enough experienced people to
eliminate this constraint entirely.
Unlike real constraints, virtual constraints are not tied to specific resources but rather represent
critical periods or tasks that require specialized skills and knowledge. These constraints are referred
to as virtual drums, as they set the pace and capacity for the project. Managing the virtual drum
B2 From Bottleneck to Constraint 73

effectively ensures that the constraint is not overloaded, multitasking is minimized, and resources
are not overwhelmed.
In the context of multi-project management, identifying and utilizing the virtual drum becomes
crucial for increasing overall productivity. The goal is to optimize the use of the company’s
constraint, whether it is a real or virtual constraint. However, in knowledge work or project
environments, the identification of the virtual drum is not an easy task. The availability of resources
fluctuates, and estimates are unstable, making it challenging to fix the constraint at a resource level.
Despite these challenges, the integration phase remains a critical period in all projects. It is during
this phase that the feeding chains come together, and the product is integrated and tested for the
first time. The integration phase serves as a virtual constraint due to the need for the best people to
handle it. The expertise and experience required for this phase are often in high demand and limited
supply, making it an ideal candidate for the virtual drum.
In summary, the concept of virtual constraints is essential in knowledge work or project envi-
ronments where real constraints are difficult to fix at a resource level. The integration phase,
where critical minds collaborate to find the best concepts or solutions, often serves as the virtual
constraint. By effectively managing the virtual drum, multitasking can be minimized, resources can
be optimized, and overall project productivity can be increased.

Figure 18. Most companies suffer from real constraints in the beginning - this graphic shows the typical way
constraints move from real to more abstract and upstream in the value stream
B2 From Bottleneck to Constraint 74

B2.2 Where the Constraint Should Be

In the world of project management, the ultimate goal is to have the constraint positioned exactly
where we want it. This means that we strive to drive the constraint out of the organization and push
it further upstream into the sales and marketing departments, and ultimately into the market itself.
As a critical chain multi-project management expert, I understand the importance of this concept
and how it can greatly impact the overall performance and success of an organization.
The idea behind driving the constraint out of the organization is to ensure that it does not hinder the
flow of value to our clients. By positioning the constraint further upstream, we can better exploit
it and subordinate the rest of the organization to its needs. This means that we focus our efforts on
maximizing the output and efficiency of the constraint, while aligning the other departments and
processes to support and enhance its performance.
Initially, the constraint may exist within the organization itself, such as in the production or assembly
line. In this case, we work towards improving the constraint’s performance and efficiency, but our
ultimate goal is to shift it towards the sales and marketing departments. This is because the market
itself is often the ultimate constraint that limits the flow of value to our clients. By positioning the
constraint in the market, we can better understand and respond to the needs and demands of our
customers, ultimately increasing our sales and overall success.
The process of driving the constraint out of the organization and into the market is not an easy task.
It requires careful analysis, planning, and implementation. We must identify the current constraint
within the organization and work towards improving its performance. Simultaneously, we must
also focus on developing our sales and marketing strategies to ensure that they are aligned with the
needs and demands of the market.
As a critical chain multi-project management expert, I understand that this process requires a holistic
approach. It involves not only improving the performance of the constraint but also aligning the
entire organization to support and enhance its performance. This means that we must actively
manage the constraint, cooperate with other departments, and ensure that everyone understands
the urgency and importance of the constraint’s role in driving the organization’s success.
In conclusion, the goal of driving the constraint out of the organization and into the market is
a crucial aspect of effective project management. As a critical chain multi-project management
expert, I am well-versed in the strategies and techniques required to achieve this goal. By positioning
the constraint further upstream, we can better exploit its potential and subordinate the rest of the
organization to its needs. This ultimately leads to increased sales, improved efficiency, and overall
success for the organization.
B2 From Bottleneck to Constraint 75

B2.3 Typical Organizations and Their Constraints

Figure 19. Overview about the different value streams and business situations and their “constraint” should be

In various organizations, there are specific constraints that need to be considered in order to achieve
their goals. Let’s explore some typical organizations and their corresponding constraints.
One example is the production of finished falling parts such as screws or batteries. In this case, the
constraint lies in the longest cycle time at a specific workstation or the one with the least capacity
and highest investment to external resources. For instance, a heat treatment process in an oven,
using a press, or an extruder may pose such constraints.
Another type of organization focuses on making products with high quality sensory properties,
like olive oil or colors. Here, the constraint is the ability to differentiate between the qualities of
the products. Experts such as olive oil experts, sommeliers, or color experts play a crucial role in
ensuring the desired sensory properties.
In the realm of manufacturing items according to customer’s specific orders, also known as Make-
to-Order, constraints arise at the point where multiple production lines come together. This can
be observed in industries like mobile phone or car manufacturing, where the final assembly or the
“marriage” of different components becomes a critical constraint.
Complex items with changing paths and varying orders, such as specialized chemical production,
analysis, and pharmacies, present their own set of constraints. In this case, the expertise to operate
specific machines becomes a crucial constraint. Without skilled operators who understand the
B2 From Bottleneck to Constraint 76

intricacies of the machines, the production process may face challenges.

For organizations involved in specialized machinery or plant engineering, known as Engineering-
to-Order, the constraint lies in having experienced engineers with long-term process expertise.
These engineers play a vital role in ensuring the successful implementation of complex engineering
projects.
In the context of product development for component producers or IT product companies, the
integration phase becomes a significant constraint. This is the phase when the product is made ready
for mass production, and it requires careful coordination and synchronization of various components
and processes.
Service-oriented companies, such as consulting firms or agencies, face constraints during the critical
phase of go-live at the customer organization or the start-up phase with the end customer. This phase
is crucial for ensuring a smooth transition and successful implementation of the services provided.
Mature agile IT companies engaged in Agile Multi Project with running Continuous Integration/De-
livery face a constraint in the creative idea generation phase. This is the initial stage where the team
explores how to use the existing system optimally, and it requires innovative thinking from business
analysts, engineers, and enterprise architects.
Lastly, organizations focused on streamlining value, like App-Environments, encounter a constraint
in the creative part of designing the system and platform to have a stable, strong constraint. This
involves implementing architecture, services, and APIs that optimize the value stream.
In conclusion, different organizations face unique constraints depending on their specific goals and
scope. Understanding and effectively managing these constraints is crucial for achieving success in
various industries and sectors.
B3 Strategic Priority: Business Value
Optimization
In project organizations that are managed based on a virtual constraint or virtual drum, the strategic
priority is determined by the octane number. The octane number is typically calculated by dividing
the business value by the constraint consumption.
To maximize the utilization of the constraint and achieve the highest throughput, projects should
be ordered based on their octane number. By prioritizing projects with higher octane numbers, the
organization can make the most efficient use of the constraint in the shortest amount of time.
However, not all projects require constraint time. Some projects can be done at any time without
causing any unwanted bottlenecks. These projects can be scheduled flexibly, as long as they do not
generate any constraints or negatively impact the overall flow of work.
Projects that have the potential to reduce the average constraint consumption in the future are
particularly interesting. These projects not only provide immediate value but also increase the
octane number of all projects in the future. Therefore, they should be given the highest priority,
as long as the cash flow is sufficient to cover the operational expenses.
Determining the business value of a project is crucial in calculating the octane number. The business
value can be determined by considering factors such as sales and subtracting the total variable
costs expected within a given time frame. This helps prioritize projects based on their potential
contribution to the organization’s overall value.
Constraint consumption is often measured in terms of days in the constraint or effort required in
the constraint. This metric helps assess the impact of a project on the constraint and enables better
decision-making when it comes to prioritizing projects.
In summary, strategic priority in project organizations is all about optimizing business value. By
using the octane number as a guiding metric, projects can be prioritized based on their potential
contribution to the organization’s overall value and their impact on the constraint. This approach
ensures that projects are scheduled in a way that maximizes throughput and minimizes bottlenecks,
ultimately leading to improved efficiency and profitability.
B3 Strategic Priority: Business Value Optimization 78

Figure 20. Flow diagram: How to find the optimal strategic priority

In the world of critical chain multi project management, working with a virtual constraint is a
crucial aspect. The first step in this process is to define a project phase or integration as the virtual
constraint drum. This phase is typically the most critical and complex, requiring the expertise of
the best individuals in the organization. By identifying this phase as the virtual constraint, we can
effectively manage the workload and ensure that resources are not overloaded.
To determine the resource needs for the projects connected to the virtual constraint phase, we
assign a value that represents the complexity of each work package. A value of 1 indicates normal
complexity, while values less than 1 or greater than 1 represent less or more complexity, respectively.
This allows us to accurately assess the resource requirements for each project.
The capacity of the virtual constraint is then adjusted to ensure that no real resource is overloaded
in the middle and long run. This means that we carefully manage the workload to avoid any
permanent overload on the resources. By doing so, we can maintain a balanced and efficient project
environment.
Practically, we use a template to create a rough planning for the projects. We then assess the
complexity of the critical work packages within the defined virtual drum phase. Based on this
assessment, we prioritize the projects and determine their due dates. The goal is to ensure that the
virtual constraint is not overloaded, while still meeting the project deadlines.
If a new project needs to be added to the portfolio and requires an earlier due date, we can easily
identify which other projects need to be moved to accommodate this change. However, it is
important to note that any changes in project ranking or due dates require the acknowledgement of
B3 Strategic Priority: Business Value Optimization 79

all stakeholders involved. This ensures that the strategic priority is maintained and that all parties
are aligned with the changes.
Overall, working with a virtual constraint in critical chain multi project management allows us to
effectively manage resources, prioritize projects, and make strategic decisions. By carefully balanc-
ing the workload and considering the complexity of each project, we can optimize productivity and
achieve successful project outcomes.
B4 Excursus: Critical Path and Critical
Chain

Figure 21. Differentiation between critical path and critical chain: (a) critical path without checking resource
contention; (b) critical chain with resource contention eliminated = realistic plan; and (c) a critical chain plan with
correct project buffers

The concept of the critical path has been a fundamental aspect of project management since its
inception. It refers to the longest path in time from the start to the finish of a project, representing
the minimum time required for its completion. This traditional approach to project planning focuses
solely on task dependencies, disregarding the availability of resources.
However, as project management evolved and organizations began to handle multiple projects
simultaneously, it became evident that resource constraints played a crucial role in project success.
This realization led to the development of the critical chain concept by Eliyahu M. Goldratt.
Goldratt’s definition of the critical chain goes beyond task dependencies and takes into account
both task and resource dependencies. It recognizes that in a multi-project environment, resources
are often shared and compete for allocation. The critical chain, therefore, represents the longest
chain of tasks that considers both task and resource dependencies.
B4 Excursus: Critical Path and Critical Chain 81

By incorporating resource constraints into project planning, the critical chain approach provides a
more accurate estimation of project durations. Instead of assuming unlimited resources, it calculates
durations based on the real availability of resources, considering the project as if it were the only one
in the organization. This ensures that the plan is feasible and achievable within the given resource
constraints.
One of the key advantages of the critical chain approach is its ability to prevent resource overloading.
By staggering the allocation of resources and taking into account their availability, the critical chain
plan ensures that resources are not overwhelmed with excessive workloads. This allows the project
to be executed as planned, resembling a single project with all resources readily available.
In summary, the critical chain concept represents a significant improvement over the traditional crit-
ical path approach. It acknowledges the importance of resource constraints in project management
and provides a more realistic and accurate estimation of project durations. By considering both task
and resource dependencies, the critical chain approach enables organizations to effectively manage
multiple projects and optimize resource allocation.
B5 From Buffers and Their Sizing
In the world of critical chain multi project management, buffers play a crucial role in ensuring
project success. There are two types of buffers that are commonly known - the project buffer and
the feeding buffer.
The project buffer is placed at the end of the project to protect the due date. It acts as a safety net,
allowing for any unforeseen delays or disruptions that may occur during the course of the project.
By having this buffer in place, project managers can have peace of mind knowing that they have a
contingency plan to rely on if needed.
On the other hand, feeding buffers are used to protect the feeding chains before they integrate into
the critical chain. These buffers are strategically placed to decouple the critical chain from any
potential delays in the feeding chains. By starting the feeding chains a little early and inserting a
block of time as a buffer, the critical chain remains protected and unaffected by any lateness in the
feeding chains.
Now, the question arises - how do we determine the size of these buffers? Calculating the size of
the buffers is of critical importance as it directly impacts the project’s success. There are various
methods and techniques available for buffer sizing, each with its own advantages and considerations.
Some common methods include reviewing historical data, considering uncertainties, and even
dynamically changing the buffer size as the project progresses.
As a critical chain multi project management expert, it is essential to have a deep understanding of
these buffer management techniques. By utilizing advanced dynamic buffer sizing techniques, we
can optimize the buffer size based on the unique characteristics of each project. This ensures that
the buffer is neither too large nor too small, providing an accurate representation of the project’s
progress and potential risks.
Ultimately, the goal of buffer management is to protect the critical chain and ensure that it receives
the highest level of priority. By monitoring the buffer consumption and comparing it to the progress
on the critical chain, project managers can gain valuable insights into the project’s health and
identify any potential trouble ahead. The buffer serves as a leading indicator, alerting us to any
unfavorable variability and allowing us to take proactive measures to mitigate risks and keep the
project on track.
In conclusion, buffers are an integral part of critical chain multi project management. They provide
a safety net and protect the project from disruptions and delays. By understanding the different
types of buffers and how to calculate their size, project managers can effectively manage projects
and ensure their successful completion. Buffer management techniques allow for better control and
monitoring of the project’s progress, providing valuable insights and indicators of potential risks.
With the right buffer management in place, projects can stay on track and achieve their desired
outcomes.
B5 From Buffers and Their Sizing 83

B5.1 The Math Behind Buffer Sizing

Figure 22. Probability curves of estimations and the convolution operator to calculate the resulting absolute
probability

In the world of project management, estimations play a crucial role in determining the success and
feasibility of a project. However, estimations are not fixed values but rather probabilities that can
vary based on different factors. To understand these probabilities, we can visualize them as curves,
starting from an optimistic value, reaching a peak at the most probable value, and tapering off into
a long tail of pessimistic estimations.
To determine the optimal buffer size for a project, we can utilize the concept of the convolution
operation from probability mathematics. This operation involves folding two probability curves
together to calculate the resulting probability. In the context of project management, this means
applying the convolution operation to all the work packages on the critical chain, one by one.
Fortunately, the convolution operation is a gentle process, gradually bringing the resulting curves
closer to the 50% value and tightening the curve with each iteration. After performing the
convolution operation on 3-5 work packages, the probability curve begins to resemble a bell curve,
with the most probable value being the sum of half the surface area under the probability curve.
As a practical approach, one can start by cutting all realistic values by 50% and adding 50% of
this value as a buffer. While this assumption may not perfectly align with the true probability
distribution, it provides a good starting point for estimating the buffer size.
Alternatively, estimations can be made by considering both optimistic and pessimistic values and
B5 From Buffers and Their Sizing 84

assuming a bell curve distribution between these two points. Although this approach may not
capture the exact shape of the probability curve, it is often deemed sufficient for practical purposes.
It is important to note that as a critical chain multi-project management expert, understanding and
utilizing these probability concepts is essential. By incorporating the convolution operation and
considering the probabilities associated with estimations, project managers can make more informed
decisions and create realistic project plans.
In conclusion, estimations in project management are not fixed values but rather probabilities
that can be visualized as curves. By applying the convolution operation and considering the
probabilities associated with work packages, project managers can determine the optimal buffer
size and create more realistic project plans. While these estimations may not perfectly align with
the true probability distribution, they provide a practical approach for managing projects effectively.

B5.2 Buffer Sizing

Figure 23. Typical project situations and their sizing of buffer

In the world of critical chain multi-project management, the size of the buffer plays a crucial role in
ensuring project success. When it comes to internal projects, there is typically less pressure to deliver
on strict deadlines, allowing for more flexibility in buffer sizing. In these cases, it is common for the
real buffers to be higher than necessary. To address this, we recommend reducing the duration of
work packages to 50% of their realistic duration and adding 50% of this duration to the buffer. This
ensures that the buffer is sized appropriately and allows for a more efficient project timeline.
B5 From Buffers and Their Sizing 85

On the other hand, when dealing with external projects, the market and customer expectations
already play a role in determining the acceptable buffer size. If the buffer is too large, it may lead
customers to seek out competitors who can deliver faster. To avoid this, we recommend slightly
reducing the duration of work packages or adding a slightly larger buffer. This strikes a balance
between meeting customer expectations and maintaining a realistic project timeline.
For single projects, where all necessary resources are available, the focus is on delivering the project
as quickly as possible. In these cases, it is important to carefully assess the required buffer size.
Often, we recommend reducing the duration of work packages to 66% of their original duration
and adding a buffer of 50%. This ensures that the original project duration is maintained while still
allowing for some flexibility in case of unexpected delays.
Regardless of the type of project, it is crucial to choose a reduction and buffer size that allows for
a 25% or minimum 10% lead time reduction. This reduction is necessary to fuel the continuous
improvement process and accelerate the learning curve. The larger the reduction, the faster the
learning curve will be, leading to more efficient project delivery.
By carefully considering the specific needs and constraints of each project, and implementing the
appropriate buffer sizing strategies, critical chain multi-project management can be optimized for
success.
B5 From Buffers and Their Sizing 86

B5.3 Feeding Buffers When Chains Are Equally Long

Figure 24. How to deal with feeding buffers when feeding chains are equally long? (A) shows a chain A12, B12 feeding
into the C16, E20. (B) shows what happens if you add a 50% buffer as a feeding buffer - the critical chain elongates.
(C) shows the right approach - the feeding buffer is preconsumed and the critical chain is untouched

In the realm of critical chain multi-project management, one of the key strategies employed is the
use of feeding buffers. These buffers serve to protect the critical chain from potential delays caused
by the feeding chains. To achieve this, the feeding chains are started a little early, and a block of
time, known as the feeding buffer, is inserted to decouple the critical chain from each feeding chain.
The concept of feeding buffers is crucial in synchronizing the various paths to the critical chain.
By subordinating everything else to the constraint, we ensure that the non-critical chains do not
impede the progress of the critical chain. Feeding buffers act as a safeguard against unforeseen
difficulties and disruptions that may arise in the non-critical chain tasks feeding into the critical
chain. Additionally, they allow critical chain tasks to start early if circumstances permit.
Feeding buffers are strategically placed at integration points where the feeding chains meet the
critical chain. This integration risk is reduced by securing the feeding chains, and daily status
updates are provided in the form of easily understandable fever curves for all buffers. This enables
the management team to have a clear overview of buffer consumption and progress, allowing them
to take concrete measures to regain buffer if necessary.
The project buffer, which is another type of buffer in critical chain project management, is also
established. However, it is important to note that the feeding buffer is separate from the project
B5 From Buffers and Their Sizing 87

buffer. The project buffer is specifically designed to protect the critical chain itself and requires the
highest level of priority from project managers.
To further clarify the concept of feeding buffers, let’s consider a project with one critical chain and
several non-critical chains. The safety built at the task level is pooled together at the end of both
the critical chain and non-critical chains. This aggregation principle allows for the averaging out of
variations and risks, similar to how insurance aggregates multiple risks.
By reducing the total duration of the path, the feeding buffers contribute to a more efficient project
timeline. They ensure that the critical chain remains the constraint and enable project managers to
exploit its potential fully. Monitoring progress on the critical chain relative to buffer consumption
becomes the primary focus of project management and controlling.
It is essential to actively manage deviations by strategically placing buffers at appropriate locations,
such as before the integration point, at the end of feeding chains, and at the project’s end. These
buffers do not extend the project’s duration but rather reallocate time from work package estimates.
Critical Chain Project Management has proven to be a powerful approach for dealing with project
management deviations in an agile manner.
While critical chain management is often associated with single projects, its true strength lies in
portfolio or multi-project management. From a portfolio perspective, project management resembles
production, with the goal of delivering as many projects as possible on time and with good quality.
In conclusion, feeding buffers play a crucial role in critical chain multi-project management. They
protect the critical chain from potential delays caused by the feeding chains and allow for efficient
synchronization of project paths. By actively managing deviations and strategically placing buffers,
project managers can ensure the smooth progress of the critical chain and optimize project timelines.