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

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Publisher Description

This is an individual chapter of Theory of Constraints Handbook. Developed for those relatively new to Critical Chain concepts, this chapter compares conventional (critical course) project management with the Critical Chain strategy. The reasoning for the Critical Chain strategy is presented, together with its crucial elements. A seven-step procedure for setting up a total project is demonstrated with a basic example, consisting of where, in what order and in what size, buffers must be developed. To the degree possible, resource contention is eliminated as a task is arranged. Communications then play a necessary role in guaranteeing that Critical Chain jobs are not delayed. Innovative work policies lessen ineffective and inefficient multi-tasking. In a multiproject environment, project top priorities are developed and entry of new jobs into the system are appropriately sequenced. The chapter likewise addresses project operational control through buffer management, project budgeting, reporting project progress externally, and how Critical Chain might be executed making use of a Critical Chain execution empowerment design.

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