Critical Chain

This book is actually fiction, although it intended to be used as a instructional manual for implementing a new approach to project management. As a project manager I think the book is very practical and I think his approach would work very well for many projects. However, the theory that Goldratt proposes goes against all of the other commonly used project management tools (Gantt, Critical Path, PERT) that are based on timelines and milestones. The book is written from a common-sense approach (in contrast to the approach used by textbooks) and some of the problems it addresses are: 1. Projects often run over budget but rarely finish under budget 2. Multitasking is actually detrimental to projects 3. Constraints arrise when multiple projects use the same resources 4. The true cost of a project (which Goldratt says is much higher than most think) 5. Negotiations with subcontractors used on a project 6. Net Present Value and payback period are inadequate measurements for the cost of a project Don't be discouraged if you don't understand any of the typical project management jargon. Goldratt does a great job of introducing each concept and describing the basic, underlying concepts. The technical concepts are explained in question-answer form that would be similar to attending a seminar. Lastly, Goldratt uses two types of projects (product development and construction) as examples in this book. However, the concepts and his approach could be applicable to many different types of projects. In my opinion, the determining factor for applicability of Goldratt's approach is the structure of the organization and not the type of project; the less burocratic, the more applicable.

Goldratt has done many valuable things for the practice of Industrial Engineering and Operations Management. To fully appreciate what he is doing, one really should have a background in mathematical programming, but what he has done for project management is truly valuable. He is very intentional in his writing style, and fortunately for the layperson, he leaves the linear programming formulation of what he's describing out of things.It is true that Goldratt's ideas could be stated in twenty pages or so, but he is very wise and intentional in not giving away the answers. None of my professors at Berkeley would give out answers when it is better for students to learn things on their own.At least one of the Goldratt books is tremendously helpful reading before starting the graduate programs in transportation engineering. It presents in a very intuitive way what Carlos Daganzo, Gordon Newell, Adolf May, and other big names in traffic flow theory have explained so explicitly in precise mathematical form. The five step focusing process is very useful in the evaluation of cyclic servers and bottlenecks, the statistical process control techniques are necessary to keep projects, plants, and transit operations on schedule, and the evaporating clouds are tremendously helpful in solving planning problems of conflicts between the environment and improving transportation system performancs, etc.Goldratt's work is so much more valuable than optimization techniques alone could ever be. Goldratt helps spot what is and is not a valid optimization problem. It ingrains the basic results of optimization in the reader's mind, so it can be applied quickly and intuitively. All the benefits of the simplex algorithm with none of the mathematical formulations.And yes, a lot of business school curricula are full of it.Mark McDonaldMS/PhD CandidateUniversity of California, Berkeley

Goldratt has been an especially prolific author in recent years. This is the third of three books; the others are The Goal (1992) and It's Not Luck (1994). As in those earlier works, Goldratt presents his ideas in this volume within the structure of a novel. When doing so, I think he is much less effective as a storyteller than he is introducing and then developing his core concepts about project management. I am among those who are convinced that process management and project management are not mutually exclusive; on the contrary, I believe that effective project management must be integrated within effective process management inorder to improve, for example, cycle time and first pass yield. Moreover, one of the greatest challenges is to identify root causes of barriers to the process and then eliminate them. Another formidable challenge to any organization (regardless of size or nature) is to become and then remain performance-driven, rather than culture-driven. Whatever the "critical chain" may be, its weakest "link" is the limiting factor. One of the worst mistakes made, when problems develop, is to respond to symptoms rather than to root causes. As a result, the weakest "link" is seldom strengthened and perhaps not even identified.In this volume, Goldratt once again examines a fictional context within which there is a cast of characters, a multi-dimensional narrative (or plot), and all manner of disagreements which create conflicts. Never before have executives had more to read and less time for reading. One of this book's most appealing qualities is that it is so easy to read. (The challenge is to make effective applications of TOC in an increasingly more competitive marketplace.) Goldratt is an authority on the business subjects he discusses as well as an excellent teller of tales. That's a rare combination. Once again, he suggests all manner of applications of his Theory of Constraints (TOC). And once again, Goldratt helps the reader to determine how to apply the TOC to her or his own organization. Those who share my high regard for this book are urged to read his other books, The Goal and It's Not Luck; also, to check out David Maister's Practice What You Preach and David Whyte's The Heart Aroused. With all due respect to the core concepts which Goldratt examines so brilliantly in this volume, they are worthless unless and until embraced by everyone involved. Master and Whyte can help managers to achieve that "buy in."

Eli Goldratt continues his application of Theory of Constraints (TOC) to various business processes by focusing on project management with this latest business novella. TOC is a method of creating ongoing improvement in operational processes, as well as a general management philosophy. Goldratt introduced this theory to world in his best-selling book THE GOAL, where he applied the principles to a manufacturing setting.In CRITICAL CHAIN, Goldratt builds upon the teachings found in THE GOAL. He quickly describes of constructs of TOC, while spending more time addressing some specific phenomenon of project management versus process management. This is where the "Aha"s come into play.Goldratt's characters debate and learn why projects often run overdue and over budget, or finish with less completed than originally specified. The characters debate critical path vs. non-critical path tasks, early vs. late start, resource conflicts, safety buffers in each task, negotiating with subcontractors and suppliers, as well as the erroneous progress accounting/measurement techniques that give everyone a false sense of progress toward completion.Each of these topics were useful in challenging the conventional wisdom of project management. Each presented some new techniques for managing projects more aggressively. In my job, I indirectly manage a large number of construction project managers, and this was useful in understanding some of the reasons we struggle to deliver on time and on budget.For those of you looking for the same enlightenment that you probably derived from THE GOAL, you will be mildly disappointed. For those of you who have not yet read THE GOAL, I highly recommend reading it, because it will provide the foundation material (TOC) in much more depth and clarity.For me, TOC completes the loop of operational concepts that I have pondered over my career, namely how to improve processes and improve overall organizational productivity, while eliminating "fire fighting" and bottlenecks in production. CRITICAL CHAIN furthers the progress of this thinking relative to a project vs. a process environment.

This book has lots of practical tips and how-to information for both beginning and experienced project managers. It confirmed my own beliefs that most projects go off course because the managers are looking at and reporting on the wrong information, not to mention wasting time planning projects the wrong way. This book will show you how to do it a better way. I recommend reading "The Goal" first - it will introduce you to the Theory of Constraints.I was pleasantly surprised to see that my own management style, considered successful, embodies a lot of what Dr. Goldratt advises - therefore I feel qualified to state that his ideas REALLY do work!