||Framework for Adapting Critical Chain Methodology to Construction Project Management
||Department of Civil Engineering
||Gabriela Elizabeth Andrade Lam
critical path method
construction project management
For long time, the construction industry has handled project management under the well-known Critical Path Method (CPM), which was designed to be a comprehensive and easy-to-follow scheduling tool. CPM along with Gantt charts has developed to a point where most construction projects plans are based on it. However, despite of the widespread use of the CPM, construction projects still face the same problematic that has affected them for long time: delays.
Critical Chain Project Management (CCPM) addresses delays by the means of considering the variability and uncertainty due to the human behavior, against the CPM precepts which considers the manpower productivity to be fixed values, ignoring the fact that human behavior is what impacts –mostly in bad ways- the project performance. Currently, CCPM theory focuses only in time issues and it is intended to be applied to any kind of project. But in order to make this methodology more practical and comprehensive for construction project management, this research presents a framework to adapt CCPM to the scenario of construction, by considering the conditions involved in the planning stage from the point of view of a general contractor, and encouraging subcontractors to adopt the methodology by the incorporation of a bonus system, which works within the project budget constraints, and a penalty system as well, to avoid delays. A case study will be used to show the guidelines described in this framework, to produce a smoother and more practical transition from the CPM to CCPM in construction projects.
TABLE OF CONTENTS III
LIST OF TABLES VI
LIST OF FIGURES VII
CHAPTER 1 INTRODUCTION 1
1.1 Research background and overview 1
1.2 Motivation of research 2
1.3 Research objectives 3
1.4 Research procedure 4
1.5 Thesis structure 5
CHAPTER 2 LITERATURE REVIEW 7
2.1 Problem Statement 7
2.2 Current scheduling techniques used in construction management 9
2.2.1 Gantt Charts 9
2.2.2 Critical Path Method (CPM) 10
2.3 Critical Chain Project Management (CCPM) 13
2.4 Cost Management in Construction 16
2.5 Summary of the Literature Review 17
CHAPTER 3 RESEARCH METHODOLOGY 19
3.1 Definition of Critical Chain Project Management 19
3.2 Basic factors underlying the theory 19
3.3 Scheduling Process 22
CHAPTER 4 PROPOSED FRAMEWORK 25
4.1 Scope definition and limitations 25
4.2 Research Assumptions 26
4.3 Initial Requirements 27
4.3.1 Defining the goal 28
4.3.2 Work Breakdown Structure as a basis for subcontracting 31
4.4 Shifting from CPM to CCPM: key issues and possible difficulties 33
4.5 Addressing the difficulties faced with human resource 37
4.6 Proposed Strategy: The time-cost trade-off 38
4.6.1 Cost Allocation 41
4.6.2 Bonus System as a tool for adapting Critical Chain 47
4.6.3 Bonus Component 1: the trade-off 48
4.6.4 Project and feeding buffers sizing 55
4.6.5 Bonus Component 2 59
4.6.6 Penalty System 62
4.7 Critical Chain Scheduling Process 62
CHAPTER 5 CASE STUDY 64
5.1 Introduction 64
5.2 Case Study Description 65
5.2.1 Project Scope 66
5.2.2 Budget 67
5.2.3 Time and CPM Schedule 68
5.2.4 Subcontracts division 69
5.3 Bonus Sum for component 1 70
5.4 CPM activities duration per subcontract 70
5.5 Bonus component 1: Time-cost trade-off analysis 72
5.6 Creating the CCPM Schedule 76
5.7 Bonus Component 2 81
5.8 Penalty rate 81
5.9 Results Verification 82
CHAPTER 6 CONCLUSION AND SUGGESTIONS 84
6.1 Conclusions 84
6.2 Future Research 86
Appendix 1: Initial Work Breakdown Structure 92
Appendix 2: Case Study Critical Path Schedule (CPM) 96
Appendix 3: Case study’s lists of activities per subcontract with their original durations (CPM Schedule) 98
Appendix 4: Case study’s lists of reduced durations of activities per subcontract 101
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