About this Presentation
The purpose of this presentation is to propose the development and use of cost buffers in critical chain (CC) environments. The presentation’s organization is an overview of earned value management systems (EVMS), measurement types, EVMS problems, EVMS in a critical chain environment and cost buffers. Earned value assumes that good global optima are achieved by focusing on local optima. It summarizes over time how we plan to spend money (PMB = performance measurement baseline). There are 32 items as part of EVMS. Cost Performance Index (CPI) and Schedule Performance Index (SPI) are discussed. Measurement types include performance, operational and conformance. EVMS is a conformance measurement. EVMS problems are described. There are ways of reporting EV under critical chain but you don’t use it to make decisions. Would it not be better to develop a measurement useful in critical chain? Cost buffers. Three methods of calculating cost buffers are presented. The advantages and disadvantages are discussed. These are being investigated to replace the two indices and be in line with critical chain use in the Department of Defense.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
The speaker proposes the development and use of cost buffers in the critical chain environment within the U.S. Department of Defense.
The speaker discusses the problems with earned value and how it can lead to inaccurate project management.
The speaker proposes replacing cost and performance index (CPI and SPI) with project buffer and cost buffer in critical chain for more accurate project management.
Instructor(s)
Kenneth Francis
Ms Alka Wadhwa
Alka Wadhwa is an experienced consultant and process improvement expert with over 24 years of expertise in the Theory of Constraints (TOC), Lean Six Sigma, and organizational performance optimization. She has successfully led projects in healthcare, financial services, and manufacturing, driving significant improvements such as a 67% boost in hospital operations and a 140% increase in outpatient visits.
Previously, Alka Wadhwa spent 17+ years at GE Global Research Center, where she led initiatives to enhance various GE businesses through advanced technologies, process redesign, and system optimization. Founder of Better Solutions Consulting, LLC, she specializes in using TOC, Six Sigma, and data analytics to streamline operations and build high-performance teams.
Her work has earned her multiple accolades, including the Empire State Award of Excellence in healthcare.
Dr Gary Wadhwa
Dr. Gary Wadhwa is a Board Certified Oral & Maxillofacial Surgeon with extensive experience in the field. He completed his Oral & Maxillofacial Surgery training at Montefiore Hospital, Albert Einstein College of Medicine in Bronx, NY, and has served as an Attending at prestigious institutions like St. Peters Hospitals, Ellis Hospital, and Beth Israel Hospital in NY. With a career spanning over two decades, he was the former CEO and President of a group specialty practice in NY from 1994 to 2015. Dr. Wadhwa holds an MBA from UT at Knoxville, TN, and has undergone additional training in System Dynamics at MIT, Health System Management at Harvard Business School, and Entrepreneurship and healthcare innovations at Columbia Business School. Committed to expanding access to Oral & Maxillofacial Surgery care, he is currently engaged in a meaningful project to provide healthcare services to underserved populations in inner city and rural areas through non-profit Community Health Centers.