Chain Goldratt, Eliyahu M. (1997)

Chain Goldratt, Eliyahu M. (1997) the Critical Chain. New York: North River Press. The Critical Chain by Eliyahu M. Goldratt is a business novel with a specific critical theoretical overview of how to minimize costs in project management. Unlike previous popular methodologies such as critical path management, the theory of the critical chain management stresses a scheduling methodology of just in time starts rather than critical path as-soon-as-possible starts, so that risk can be identified, assessed, and dealt with at every possible juncture of the gain.

The eschewing of task due dates and use of buffers of time protects a project's potential promise and provides an effective way to monitor a project's progress as means to an end. But what are the inventory buffers intrinsic to such a method of project management? Various kinds of buffers used to manage projects began with first aspect of planning in a critical chain environment is a process known as network building, followed by the buffered processes of risk avoidance and risk mitigation.

These are designed with view to responsive scheduling in the former after initial identifying of priorities in the first stage of the chain. Always, throughout the process of the critical chain, protecting the value of a project involves dealing and coping with the uncertainty that will be associated with its delivery. The crucial chain stresses risk management, as risk is intrinsic to any project, rather than risk avoidance.

Common practices to estimate the duration of project activities as well as real reasons that cause project delays include the initial identification and assessment of risks before they present themselves, followed by the need for prospective response development, take the form of avoidance, mitigation, and acceptance, depending on the obstacles that are identified that may arise, and lastly, the prospective for the guidance of response control in the event of risk and possible delays.

According to the author, the role of project management in critical chain theory is to assist in turning uncertain events and efforts into certain outcomes and promises. Thus risk management in its various guises must be present in the scope, schedule, and spending, and management of any given project. Careful management is necessary for such successful project management and for maximizing the value of our project-based efforts.

Above all the management of uncertainty and risk by accepting that spending, scope, scheduling, and management in general may go awry is better than simply ignoring this possibility in today's volatile business climate. Some of the pitfalls, as discussed in the Critical Chain, of using traditional cost accounting to manage project costs and project investments are a failure to appreciate the impact of a multi-project environment on single project success, and thus a minimization of risk.

Also, total risk avoidance can result in projects of too limited a scope that does not do justice to today's business environment. A lack of task dates that are replaced by time buffers are more realistic and elastic, without allowing a project to potentially spiral out of control, in response to today's environment and an individual business' needs. There is an allowance for more speedy.