Copyright © 2015 Amy David, Purdue University
Critical Chain Project Management
MGMT562
Mengshi Lu
2
Reminder and Announcement
•Individual Assignment 2 is due Wednesday before
class
–Submit both Word/pdf summary and Excel file with a
working @RISK model
•Group Assignment 3 is due next Monday before
class
– Based on the Turner Construction Co. case
– To be discussed in class
3
Agenda
•Limitations of CPM/PERT
–Human behaviors in estimating
–Human behaviors in execution
–Resource conflicts
•Managing the critical chain
•Midterm feedback
4
Introduction
•Critical Chain seeks to overcome practical
limitations of CPM/PERT.
•Focuses on resources more heavily than
task times.
•Popularized by Eliyahu Goldratt in 1997.
5
CPM/PERT Isn’t Enough
•Why are so many projects late?
6
Human Behavior in Estimating
Contingencies at
every level
Anticipation of
push-back
Desire to complete
task on time
Why do people add contingency?
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