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Critical Chain Project Management and Project Alliancing

As part of the TOCPA conference (Theory Of Constraints Practitioners Alliance) which took place in March 2018 in Paris, Ian Heptinstall presents the combination of Critical Chain Project Management and the Project Alliancing

Ian Heptinstall presented the approach combining Critical Chain Project Management (CCPM) and the Project Alliancing, in particular for investment and construction projects.

 

According to Ian, with projects where the majority of the work is done by third parties - such as capex projects - the JPAC itself is not enough to guarantee success. CCPM assumes a collaborative project team, where there are no barriers to sharing buffers to cover the uncertainty and variability of time and costs, and improving project flow is in the interest of all. However, with the purchasing and contracting strategies in effect in this area, this assumption is not valid. The predominant use of fixed price contracts and contradictory contracts makes the use of the Critical Chain extremely difficult.

 

But there is an alternative, described during the conference: a business approach to forming a truly collaborative project team, known as the Project Alliance. Using the Project Alliancing to train the project team opens the way to the exploitation of the CCPM project, which in turn will help ensure the realization of the project:

- On time in less time

- In the budget at lower cost

- Without having to compromise on the perimeter or the quality.