A risk-oriented buffer allocation model based on critical chain project management

Abstract

In this study, a multi-attribute buffer sizing method is proposed aimed at maximizing the robustness of the buffered schedule generated. The project attributes concerning the network complexity, flexibility criteria, criticality index and robustness measures are considered through the buffer sizing process. The methodology presented is based on the critical chain buffer management methodology, yet innovative metrics are presented to deal with the uncertainties associated with the critical and non-critical chains. The buffer sizing method proposed eliminates the previous limitations and attempts to economically determine the size of the feeding and project buffers. Additionally, a risk analysis is performed to examine the effects of external factors on buffer sizes. The weaknesses of the existing buffer sizing approaches were overcome in the critical chain project management, and a novel buffer sizing method was established based on internal and external risk aspects. A simulation experiment is conducted in order to prove the effectiveness of the method proposed. The computational results of implementing the method on a real case study specify that the method proposed generates more stable project plans at a lower cost, compared with those generated using traditional buffer sizing methods.