Throughput #8
You know the saying: When one door closes, another opens.
Do you (like many manufacturers) need to open new doors in this time of tariffs?
This typically means retooling or developing new products for new clients in new markets.
And that means more and faster projects to manage.
So how can you be more efficient to take quick advantage of opportunities?
At Montera, we recommend Critical Chain Project Management (CCPM), a Theory of Constraints approach to deliver projects better, faster and for lower cost.
Which brings us to the question: Why Critical Chain instead of Critical Path?
Critical Chain vs Critical Path
CCPM is unique in that the “critical chain” is the longest sequence of tasks AND resource dependencies through a project network.
CCPM also removes the safety often embedded in each task and puts it as a project buffer at the end of the project network. This allows better management of task execution variability to improve project flow.
A task that’s delayed uses up some of this buffer, but doesn’t delay the entire project.
A task that finishes early recovers some project buffer.
Like a shock absorber, the buffer enables gains to offset losses to minimize or eliminate the impact.
As a result, with CCPM, projects are more likely to be completed on time, avoiding cost overruns.
Better use of project resources
Three rules govern CCPM:
- Stagger project release to reduce inefficient multitasking.
- Buffer project networks to better handle project uncertainties.
- Prioritize project and task execution based on critical chain task completion versus buffer consumption.
This approach optimizes and synchronizes your use of project resources.
By delivering more projects faster, you increase your capacity (our clients increase capacity by as much as 50%) and you increase your speed to market.
As project throughput goes up, so does business profitability.
But what about Agile?
Now, you may be thinking:
We use Agile so we don’t need CCPM.
We do sprints so don’t we don’t need CCPM.
But here’s the thing:
Agile and CCPM are not substitutes for each other – they are actually complementary.
While Agile focuses on tasks and milestones, CCPM allows you to plan, manage and monitor the overall portfolio of projects to deliver everything on TIME, on BUDGET and within SCOPE.
CCPM gives you more tools and flexibility, with less micromanaging, to deliver results.
See our blog for more on CCPM, and how to implement it with our Roadrunner Px software. Please reach out with any questions.
Thanks for reading!
— Jack Warchalowski, Montera CEO
[email protected]
Connect with me on LinkedIn
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