ASSIGNMENT 1: BOOKREVIEW Submitted By: DeepanjanB. : A13567116046Omkar K. Singh : A13567116052Greeshma Falgunan :A13567116063Manjushree Pal : A13567116072Surendra Babu : A13567116085 MBACE&QS Section-A Group-2SubGroup-3 SubmittedTo:AnuritaBhatnagarAssistantProfessor Schoolof ConstructionRICSSBE PART-1:SUMMARYIntroduction”Critical Chain” by EliyahuGoldratt, the foremost theme of the book is to change Goldratt educationalsystem to theoretical and practical way to change the industrialization and worldof business. This book is mainly focusing on problems faced by business peopleabout the completion of project on time and for that problem eradication heexplains how the ‘Theory of Constraints’ can be applied to schedule generation,resources constraints and various other multiple projects. A group of threemembers was organized for intensive research and solving of problems especiallyin technology, social or political strategy.
In this book, the importance ofcritical chain is explained using different situations in the business.Identifying the solution and insertion of buffers, budget over runs, time overruns, bell curved, pert and Gantt techniques, critical path, student syndrome,project buffers, feeding buffers, resources buffers, all these topics werecovered based on the situations explained. The management system in theorganization regarding management blaming is also explained as top managementblames the external factors and low-level management blames the internal factors.Core-ideaIn this book, the writerhas tried to cover critical chain theory from project management. In this bookmost of the concepts from critical chain theory are covered such as Theory of Constraintsprimer, Student syndrome, how time estimates should be scheduled, resources andbottlenecks, resource constraints, cost of money and every concept is explainedwith a real-world example. The writer tries to create a real-life situation andtries to explain the concepts within the given situation.
In short, it’s a bookthat explains critical chain theory with good real-world examples.TheStoryThe story tells us aboutthe problems faced by business school. Richard, the main lead is appointed asassociate professor in the business school, who is trying to get tenure toimprove his quality of life. He is given with the Project Management course toteach to the MBA program students in which some are experienced and havepractical knowledge of work. This is a big task for him and a chance to provehimself.
Richard has bookish knowledge about various concepts of projectmanagement which he shares with his class and ask them to share theirexperience and to relate it with the concepts which he know to find a new andinnovative solution of that problem. This reslts into a concept of ‘CriticalChain’. Richard had a open way of teaching which quite impressed the class.
Richard is also moved by the three students Mark, Ruth, Fred who have joinedthe MBA program to find a solution to the problem in their company about thebig development cycle of their product. ‘Critical Chain’ covers a few importanttopics: time estimation, ways to create safety buffers, ways those buffers canfail, danger of multitasking, importance of optimizing for the lead time. Itfocusses more on traditional project management approaches. It also highlightsthe business schools’ inability to teach relevant management techniques,applicable in the industry.Book-ReviewThe book takes us tovarious steps and real-life examples related to project management and authorhas focused on business as well as academics and tried to answer projectmanagement question arising out of industry. These real-life examples were verybeneficial and very easy to understand the concept. These concepts will really helpin the construction projects if applied on it and can reduce the time and cost ofthe project.
However, in only if one project is their then it is easy to manageproject management constraints but in this book professor and students discovera process to approach critical chain when multiple projects are to be managed.The concepts in the book are potent for big projects only. The information isnot helpful for small projects. But in all, the author makes idea relatable andeasy. PART-2Question:Chapters 1 through 3 of”Critical Chain” by Eliyahu Goldratt introduce the main characters of thisbusiness novel.
Mark, Ruth, and Fred work in new product development and arecharged with shrinking the cycle time. Products at their firm currently haveabout a 6-month life cycle but development of next generation products takesabout 2 years. If this was the cycle time at your construction material firm,what would you suggest to these folks on the newly formed “think tank”?Answer:Considering the manufacturingcompany of a clay brick, the development time is huge and the demand of claybricks are increasing in new projects.
So, the development time needs to bereduced to meet the increase in demand which is emerging now and in the future.Certain changes are needed in the manufacturing process of the clay brick aswith the same speed of manufacturing of bricks, it will be difficult to fulfillthe emerging demand in the future. DiagrammaticRepresentation of Manufacturing of Clay Bricks Few recommendationsconsidering the phases of manufacturing of clay bricks are: -· Proper planning should be done beforemanufacturing. Critical path of the process should be identified and a properbuffer time should be given at the last to complete the process on the plannedcompletion time.· Along with it, critical activities need tobe identified and required crashing of activities must be done in order toreduce the time of that particular activity which will lead to cycle timereduction.
· As we all know about the student syndrome,so it’s obvious that the activity will be started late and the late start ofactivity will lead to late finish of the activity. So, the activity should bestarted at the early start so that it could be finished at the earliest.· The evaporating cloud can be used as thesuppliers will be given advance to supply the material early and they should bealways ready with the raw material to deliver as soon as it is needed whichwill reduce the waiting time when urgent requirement of raw material is needed.Thus, it will be a win-win situation for both the parties.· Adding more number of resources such asbuying more machines so that bulk of bricks are produced at the same timereducing the overall cost of manufacturing the brick and huge number is producewhich will meet the demand of future.
· As only increasing the number of machinewill be a bottleneck, so with the increase in number of machine, more peoplehiring is needed to manage and function of those machines.· In this way the quality of the product canalso be monitored properly at each stage.