Project Management Fundamentals: TOC, Critical Chain, and Cost Estimation Methods

Project Management Methodologies and Control Systems

Theory of Constraints (TOC) Stages

The five focusing steps of the Theory of Constraints are:

1. Identify the system constraint.
2. Exploit the system constraint.
3. Subordinate everything else to the constraint.
4. Elevate the constraint.
5. Go back and find new constraints.

Case-Related Constraints Examples

• Market demand in the EU.
• Financial impact on the company.
• Project Management (PM) functioning.
• Stakeholder influences.

Project Completion Checklist

Key steps in describing the completion of a project:

• Finish of all activities.
• Incentives for team members.
• Finished documentation.
• Closing down project systems.
• Review activities and document lessons learned.
• Appraisal and relocation of staff.
• Ensure satisfaction of stakeholders.

Critical Chain Control (CCC)

• The critical chain can be controlled by using buffers.
• These buffers are typically divided into three areas: monitoring closely, planning, and implementation.
• Design the proper length of these buffer parts.

Essential Characteristics of a Control System

1. Define characteristics of importance.
2. Define their limits.
3. Measure the characteristics.
4. Make progress visible.
5. Give feedback on performance.
6. Institute corrective actions.

Process Mapping Checkpoints

Decision go-no go between milestones.

Major Phases in Progress Reporting

• Reflection on definitions in the Project Plan and adaptations made.
• Risk analyses for the next phase concerning finance, planning, and quality.

Cost Estimating Techniques and Elements

Key Elements of Cost Estimation

• Time
• Materials
• Capital equipment
• Indirect expenses
• Overheads (Gastos generales)

Major Cost Estimating Techniques

• Parametric estimating
• Analogous estimating (As... but... comparison)
• Forecasts
• Synthetic estimation
• Estimate based on analysis of generic figures and best practice
• Using learning curve effects
• Wishful thinking (Note: This is generally considered an unreliable method)

Cooperation Forcing in Conflict Resolution

Cooperation forcing is only effective in the short term to solve direct problems. In the long term, this will cause severe problems both individually and within a group. This technique should be minimized to emergency situations.

Cause-Effect-Cause Analysis

Challenges During the Problem-Solving Process

• The problem is complex and difficult to structure.
• People discuss solutions rather than analyzing the problem first.

When to Use Cause-Effect-Cause Analysis

This analysis is appropriate where:

• A trained, literate, and skillful facilitator is available.
• The group is open to consideration of new problem-solving methods.