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Critical Chain Scheduling

Introduction
Critical chain project management (CCPM) is based on methods and algorithms derived from Theory of
Constraints. The idea of CCPM was introduced in 1997 in Eliyahu M. Goldratt's book, Critical Chain. Its
use in the construction industry is rare but more numerous in manufacturing. Scheduling using CCPM is
called Critical Chain Scheduling where the focus on resources rather than time as in Critical Path Method
(CPM) scheduling.
Requirements for a Critical Chain approach towards Project Management
1.
2.
3.

Focus on resource dependency rather than task dependency.

Resources are leveled, i.e. the resources should be equally loaded.
There are inherent time contingencies (or time buffers) in each activity. These time buffers have
to be removed and aggregated into relevant feeder and project buffers.

Important terms
Critical Chain. The critical chain is the longest (time-wise) chain of activities that use the same resource
from start to finish. There is usually only one critical chain in a schedule. Multiple critical chain paths can
appear in a schedule. Activities that part of the critical chain are called critical chain activities while
those that are otherwise, are labeled non-critical chain activities.
Feeding Chain. The feeding chain (feeder chain) is any path of activities that merges into the critical
chain. The activities in a feeding chain are called non-critical activities or feeding chain activities. There
are one or more feeding chains in a schedule.
Project Buffer.The Project Buffer is the range of time over a project delivery is expected to be
completed. It gives the project implementer contingency time to cover for delays throughout the projects.
There is one project buffer in a schedule. It is intended to protect the project from exceeding the finish
deadline. The project buffer is inserted between the second last activity of the project network and the
project finish milestone.The project buffer is typically recommended to be half the duration of the project
duration (Herroelen and Leus, 2005). This is said to result in a project that is shorter than the duration of a
traditional CPM scheduled project.
Feeding buffer (aka feeder buffer). The feeding buffer is contingency time for non-critical chain
activities. The location of the feeding buffer is at the point where the feeding chain merges with the
critical chain. Hence, the feeding buffer will be an activity inserted between the last activity of the feeding
chain and the activity of the critical chain to which the feeding chain merges with. A feeding buffer is
usedto protect the critical chain against any delays in the relevant feeding chain. The feeding buffer is
usually recommended to be half the duration of the longest feeding chain (Herroelen and Leus, 2005).
Resource buffer. A resource buffer acts as a warning signal when a shift in resources will occur on the
critical chain. Resource buffers can be set within the critical chain to ensure that the renewable resources
are available to work on the critical chain activities as soon as they are needed. Consequently, a resource
buffer warning signal is added each time an activity needs a renewable resource that is not used by the
previous activity.

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How to MANUALLY create a Critical Chain Schedule

1. Generate the construction schedule using the CPM approach.
a) Each activity is scheduled as late as possible. See additional note.
2. Identify and determine the contingency time hidden for each activity.For practicality, assume a
maximum 50% time contingency in each activity. (Remember time contingency is up to you)
3. Identify and determine the reasonable estimation for each activitys duration.
4. Remove the safety contingency for each activity based on step 2 and step 3.
5. Check for over-allocation of resources. Add a resource buffer if there is over-allocation of a
resource between two activities.
6. Identify the Critical Chain as the longest chain of similar-resource dependent events for the
feasible schedule that was identified in step 4.
7. Determine the amount of buffer time for the overall project and for non-critical chain activities
8. Put in a project buffer activity between the last activity of the Critical Chainand the End
Milestone using FS relationship
9. Add the feeding buffer activities in whenever a non-Critical Chain merges into the Critical
Chain.
10. Add the resource buffers to ensure the activitieshave contingency resource availability.
Recalculate the schedule (scheduling from finish date while using as late as possible constraint).
11. Check to see if the schedule has errors, meet the project deadline and budget.
12. Return the step 5 to modify the schedule if there are errors and the time and budget requirements
are not met. Adjust the durations and costs assigned to each activity.
13. Give the schedule a baseline status when you are happy with the Critical Chain schedule.
How to create a COMPUTERISED Critical Chain Schedule on MS Project
The steps for making a critical chain schedule on this software are similar to manual scheduling described
earlier.
1. Plan the construction schedule using the CPM approach.
a) Use the As Late as Possible constraints in the software so that all activities are critical
b) Schedule from the finish date and NOT from the start date as in CPM scheduling
If you want an easier life, buy Critical Chain Project Scheduling software that integrates with MS Project
such as Pro Chain.
Tracking the Critical Chain Schedule
In theory, a project using Critical Chain Scheduling is monitored by measuring the consumption rate of
the time buffers rather than taking notice of the progress of the individual activities and their overall
impact on the finish date. However, this does not mean that Earned Value Analysis cannot be used for
monitoring a Critical Chain schedule.
1. In MS Project

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a) If an activity uses more time than it is allocated, do not increase the duration of the activity.
Instead, reduce the duration of either the relevant feeding buffer activity or the project buffer
activity.
b) Take care to identify those activities that are late are concurrent so as not to double count the
reduction of duration of buffer activity
2. In MS Excel
a) Generate a Fever Chart to monitor usage of buffer time. The Fever Chart is a picture of how
project status has changed over time. The dimensions are Project Buffer % consumed versus
% Project Complete essentially, 100 (current Critical Chain length) / (original Critical
Chain length). Each point on the Fever Chart represents a schedule update.
b) Generate the BCWS and BCWP S-curves so that Earned Value Analysis can be done.

Implement buffer
recovery Zone
Plan buffer
recovery Zone

Cumulative
buffer time
consumption
line

No action
needed Zone

Figure 1: Fever Chart for monitoring Critical Chain scheduled project. Note that unlike the EVA S-Curve,
the cumulative buffer consumption line may dip because activities may finish ahead of time. This allows
an increase in the relevant buffer.
Comparison of Scheduling Methods
To authors knowledge, Critical Chain Scheduling (CCS) is not used in Malaysia yet. However, as further
improvements are made to this scheduling method, the possibility that it will find use in Malaysia is
always there(See the section on Criticisms of CCS). Thus, a project manager may have to decide on the
most suitable scheduling method for his project. The table below provides a comparison of the CCS with
two scheduling methods that have been used in Malaysia.

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No Issue

Critical Chain
Scheduling

Critical Path Method

Line of Balance

Focus

Activity, activity logic

and scheduling

2
3

Important items
Tracking focus

Dependency of activities to
the resources involved in
executing the project
Critical chain
Usage of buffer time

Tracking tools

EVA

Main advantage

Fever Diagram
EVA
Consider human psychology
of time management
Less stressful project
participants

Construction rates and logic

due to a chosen numbers of
resources
Repetitive activities
Productivity of workers
(Productive if no delay)
Progress Diagram
EVA
Easy to use and understand
Suited for repetitive projects
Optimum resource usage

Critical Path
Delay of critical activities

Amount of allowable
delay for each activity is
known

Criticisms of Critical Chain Scheduling

PMBOK 5th Edition recommends the time management knowledge area to include Critical Chain
Scheduling(CCS). However, the Construction Extension to the PMBOK Guide (2007) does not mention
the use of Critical Chain Scheduling. The push to Industrialised Building Systems by Construction
Industry Development Board Malaysia (CIDB Malaysia) arguably makes the knowledge of CCS
important. Many IBS components are manufactured in factories where the CCS can potentially be used.
Triestschs (2005) analyzed the Goldratts Theory of Constraints (TOC) on which Critical Chain
Schedulingis founded. He posited that PERT/CPM had elements of Goldratts Theory of Constraints
(TOC) even before Goldratt publicized this theory. Hence, Critical Chain Scheduling is actually an
assembly of pre-existing concepts and not thoroughly original.Many of the innovative approaches in CCS
have actually been proposed earlier than the introduction of CCS. However Tretsch felt that there are
opportunities to improving existing project scheduling methods that arose from the introduction of CCS.
Thus, CCS research is posited to be able to contribute greatly to the advancement of project
management.Current studies (circa 2011) on critical chain scheduling indicate there is an academic-held
view that the determination of the sizes of the project and feeding buffers is problematic. Critical chain
scheduling is accused of having an oversimplified view of scheduling practice because it is not
compatible with real scheduling and re-schedulingissues (Herroelen and Leus, 2001; Herroelen, Leus, and
Demeulemeester, 2002).
References
Herroelen, W. and Leus, R. (2001). On the merits and pitfalls of critical chain scheduling. Journal of Operations Management,
19, 559-577.
Herroelen, W., Leus, R. and Demeulemeester, E. (2002). Critical Chain Project Scheduling: Do not oversimplify. Project
Management Journal, December issue, 48-60.
Herroelen, W. and Leus, R. (2005). Identification and illumination of popular misconceptions about project scheduling and time
buffering in a resource-constrained environment. Journal of the Operational Research Society, 56, 102-109.
Newbold, R. (2010). Critical Chain White Paper: Scheduling for success with Critical Chain. ProChain. Accessed 29 Sept 2010
at http://www.prochain.com/pm/articles/SchedulingForSuccess_WhitePaper.pdf
Trietsch, D (2005). Why a Critical Path By Any Other Name Would Smell Less Sweet? Towards a Holistic Approach to
PERT/CPM. Project Management Journal, 36(1), 27-36.

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Vanhoucke, M (2012). Critical Chain/Buffer Management: Adding buffers to a project schedule. PM Knowledge Centre website.
Accessed 01 June 2013 at http://www.pmknowledgecenter.com/dynamic_scheduling/risk/critical-chainbuffermanagement-adding-buffers-project-schedule.

a. Create a Critical Chain Schedule manually using the following information

Activity

A (start)
B
C
D
E
F
G
H
I
J
K
L
M
N (finish)

Precedence
activity
(finish-to-start
relationship)
none
A
B
C
D
A
F
G
G
I
H, J
K
E, L
M

Duration

Resources

0
8
10
6
12
10
10
6
8
16
10
6
12
0

None
Steelworker
Steelworker, Welder
Steelworker, Welder
Steelworker, Welder
Mason
Mason
Wireman
Mason
Mason
Mason, Wireman
Mason
Mason, Welder
None

b. Use MS Project to create a Critical Chain schedule using the above information.

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MANUAL PRODUCTION OF A CPM SCHEDULE WITH AS LATE AS POSSIBLE

CONSTRAINT (ALL ACTIVITIES ARE CRITICAL)
Duration
Earliest start

Earliest finish
z

Activity
name

Latest finish
Latest start

This note shows the way to manually calculate a schedule using the As Late As Possible constraint. Thus
all activities will use their latest start dates and latest finish dates. This means that all activities will be
critical. However, some sequences of activities will have float. To enable these sequences to be critical,
the float is removed from the end of such a sequence. It is then replaced at the front of the sequence so
that the float is preceded by a critical activity. This critical activity was originally directly connected to
the first activity of the sequence. Now the critical activity is connected separated with the first activity
of the sequence by the float.
The method of manually calculating of such a schedule consists of a forward pass and a backward pass.
Forward pass
1. Activity A
a) Start by putting activity A with earliest start date 0 and earliest finish date 0.
b) Take activity F and give earliest start date 1.
c) Note that duration of activity F is 10
d) Using the formula y = z + (x-1), calculate activity Fs earliest finish date. Thus
y = 1 + (10-1);
thus y=10
2. Activity G
a) Now turn your attention to activity G.
b) The earliest start date of activity G will one day after the earliest finish date of F 10th day.
So G starts on the 11th day.
c) So put activity Gs earliest start date as 11.
d) Note that duration of activity G is 10
e) Using the formula y = z + (x-1), calculate activity Fs earliest finish date. Thus
y = 11 + (10-1); thus y=20

3. Activity H, I and J
a) Do the same calculation as in activity G and activity A to determine the earliest start date and
earliest finish date for activities H, I and J. These three activities should refer to the relevant
predecessor activity.
b) The predecessor activity for activity H is activity G
c) The predecessor activity for activity I is activity G
d) The predecessor activity for activity J is activity I

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4. Activity K
a) To determine the earliest start date of activity K, there are two choices to consider.
b) The choices are the earliest finish dates of activities H and J.
c) Choose the activity which has the larger value of earliest finish date.
d) In this case, this would be activity Js earliest finish date i.e the 44th day
e) The earliest start date of activity K will one day after the earliest finish date of J 44th day.
So K starts on the 45th day.
f) So put activity Ks earliest start date as 45.
g) Note that duration of activity K is 10
h) Using the formula y = z + (x-1), calculate activity Fs earliest finish date. Thus
y = 45 + (10-1); thus y=54
5. Activity L
a) Do the same steps as for activity G but by referring the predecessor activity of activity L.
b) The predecessor activity of activity L is activity K
6. Activity B
a) Take activity B and give earliest start date 1
b) Note that duration of activity B is 8
c) Using the formula y = z + (x-1), calculate activity Bs earliest finish date. Thus
y = 1 + (8-1); thus y=8
7. Activity C
a) Now turn your attention to activity C.
b) The earliest start date of activity C will one day after the earliest finish date of activity B 8th
day. So activity C starts on the 9th day.
c) So put activity Cs earliest start date as 9.
d) Note that duration of activity C is 10
e) Using the formula y = z + (x-1), calculate activity Cs earliest finish date. Thus
y = 9 + (10-1); thus y=18
8. Activities D and E
a) Do the same calculation as in activity C to determine the earliest start date and earliest finish
date for activities D and E. These two activities should refer to the relevant predecessor
activity.
b) The predecessor activity for activity D is activity C
c) The predecessor activity for activity E is activity D
9. Activity M
a) Activity M faces the same type of decision making regarding the earliest start and finish dates
as that of activity K.
b) To determine the earliest start date of activity M, there are two choices to consider.
c) The choices are the earliest finish dates of activities E and L.

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d) Choose the activity which has the larger value of earliest finish date.
e) In this case, this would be activity Ls earliest finish date i.e the 60th day
f) The earliest start date of activity M will one day after the earliest finish date of L 60th day.
So M starts on the 61st day.
g) So put activity Ms earliest start date as 61.
h) Note that duration of activity K is 12
i) Using the formula y = z + (x-1), calculate activity Fs earliest finish date. Thus
y = 61 + (12-1); thus y=72
10. Activity N
a) Activity N is a finish milestone activity and thus has no duration
b) The predecessor activity is activity M.
c) Thus, the earliest start date of this milestone activity would be the earliest finish date of
activity M which is the 72nd day.
d) Hence, put in the earliest start date and earliest finish date as 72
Figure 1 shows the outcome of the forward pass.

Figure 1: Forward pass outcome

Backward Pass
There are two purposes of the backward pass
I.
To transfer the position of the float from the end of a sequence to the front of the sequence.
Thus the sequence becomes critical. This involves the recalculation of the earliest start and
finish dates of the activities in the sequences concerned.
II.
To enter in the latest start and finish dates of all the activities

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There activities concerned for step I of the backward pass are the activity H and the sequence of activities
B, C, D and E.
11. Activity H
a) Erase the earliest start and finish dates of activity H.
b) The successor activity of activity H is activity K.
c) The earliest finish date of activity H is one day before the earliest start date of activity K (i.e
the 45th day).
d) Hence, the earliest finish date of activity H is the 44th day.
e) Write in 44 as the earliest finish date of activity H.
f) The duration of activity H is 6.
g) Using the formula y = z - (x -1), calculate activity Hs earliest start date. Thus
h) y = 44 - (6-1); thus y= 37
i) Write in 37 as the earliest start date of activity H.
j) The result is that activity H is now critical and the float duration is now before activity H.
12. Activity E
a) Activity E is the last activity of the sequence of activities B,C,D and E
b) Erase the earliest start and finish dates of activity E.
c) The successor activity of activity E is activity M.
d) The earliest finish date of activity E is one day before the earliest start date of activity M (i.e
the 61st day).
e) Hence, the earliest finish date of activity E is the 60th day.
f) Write in 60 as the earliest finish date of activity E.
g) The duration of activity E is 12.
h) Using the formula y = z - (x -1), calculate activity Es earliest start date. Thus
i) y = 60 - (12-1); thus y= 49
j) Write 49 as the earliest start date of activity E.
13. Activity D
a) Erase the earliest start and finish dates of activity D.
b) The successor activity of activity D is activity E.
c) The earliest finish date of activity D is one day before the earliest start date of activity E (i.e
the 49thday).
d) Hence, the earliest finish date of activity D is the 48th day.
e) Write in 48 as the earliest finish date of activity D.
f) The duration of activity D is 6.
g) Using the formula y = z - (x -1), calculate activity Ds earliest start date. Thus
y = 48 - (6-1); thus y= 43 .
h) Write 43 as the earliest start date of activity D.

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14. Activities B and C

a) Do the same calculation as in activity D to determine the earliest start date and earliest finish
date for activities B and C. These two activities should refer to the relevant successor
activity.
b) The successor activity for activity C is activity D
c) The successor activity for activity B is activity C
d) Once the new earliest start date and earliest finish dates for activities B and C have been
written in, the float will be before activity B rather than after activity E.
The final steps are relevant to purpose number II. This involves the writing in of the latest start and finish
dates of the activities. For an activity to be critical, three conditions must be met.
a. the earliest start date must be equal the latest start date of the activity
b. the earliest finish date must be equal the latest finish date of the activity
c. the float must before the activity that has float
Hence, fill in the number of the earliest start date in the latest start date box of every activity
Also fill in the number of the earliest finish date in the the latest finish date box of every activity,
Figure 2 shows the outcome of the backward pass

Figure 2: Backward pass outcome

Conclusion
The critical chain schedule needs the scheduler to construct a CPM schedule with a late as possible
constraint. As it can be seen it is a tedious job. Hence it is recommended that the job be done using a
project scheduling software such as MS Project.

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