theory of constraints toc in project management

THEORY OFCONSTRAINTS

(TOC)

PRESENTED BY:M. JAWAD-UL-HASSAN

DO YOU WANT TO INCREASE YOUR“PROJECT PERFORMANCE”???

DO YOU WANT TO INCREASE YOUR“PROJECT PERFORMANCE”???

ÞYes

OrÞNo

SURELY YES…!!!

BUT HOW???

DIFFERENT APPROACHES ARE THERE…

TOC APPROACH

WHAT ACTUALLY TOC IS?

• Multi-systems Methodology

• To Assist People & Organization

• To Think about their problems

• Develop Breakthrough Solution

• & Implement those Solutions

TOC EMPHASIZES…

• Importance of Defining System goals

• Understanding the Global Goal of system

• As a Condition for…???

TOC EMPHASIZES…

• Importance of Defining goals

• Understanding the Global Goal of system

• As a Condition for…???

Þ SUCCESS

THE SYSTEM’S GOALS

THE SYSTEM’S GOALS

• To Achieve a “GOAL”

• A Result or achievement toward which effort is directed

THE SYSTEM’S GOALS

THE SYSTEM’S GOALS

• The leader is responsible for the Goal

• Everyone may be considered as a leader of something (Whole Org, or a unit)

USING THEORY OF CONSTRAINTS IN PROJECT

MANAGEMENT• How we can implement TOC?

• What benefits can we take?

• All this is Coming to your ways…

LITERATURE• Articles

• Journals

• Websites

• & other Means

• & Finally I concluded

TOC IS ABOUT MANAGEMENT…

• The three important Questions for a Manager…

1. What is the Ultimate Goal?

2. Where does He / She Stand in relation to the Goal?

3. The Magnitude and direction of the change needed to move from the status Quo to Where He or She Wants to be (The Goal)?

TOC IS ABOUT MANAGEMENT…

• Average Managers are concerned with methods, opinion and precedents.

• Good Managers are concerned with solving Problems

TOC IS ABOUT MANAGEMENT…

CONCEPT OF CONSTRAINTS

• What keeps your system from doing Better?

• Is there something that is constraining your Project from reaching its Goals?

SYSTEMS AS CHAINS

• Assume a system to be a chain with a goal of transmitting force from end A to B

SYSTEMS AS CHAINS

• Weakest LinkThe link at which the system fails

STRENGTHENING THE CHAIN

• Where should we focus our efforts?

BASIC QUESTIONS FOR MANAGERS

• What’s the desired Standard of performance?• System’s Goal

• What to Change?• Where is the constraint?

• What to Change to?• What should we do for the constraint?

• How to cause the changes?• How do we implement the change?

TOC FIVE FOCUSING STEPS

“Which will Strengthen the Chain”

A PRODUCTION EXAMPLE

A Simple Production System

STEP-1

Identify the Constraint

STEP-1IDENTIFY THE CONSTRAINT

STEP-1IDENTIFY THE CONSTRAINT

Step “C” is the Constraint

STEP-2

Exploit the Constraint

STEP-2DECIDE HOW TO EXPLOIT THE CONSTRAINT

STEP-2DECIDE HOW TO EXPLOIT THE CONSTRAINT

What can we do to get the most out of this constraint without committing to potentially expensive charges?

STEP-3

Subordinate Everything to the Constraint

STEP-3SUBORDINATE EVERYTHING TO THE CONSTRAINT

18 Units/

Day

23 units/day

17 units/day

STEP-3SUBORDINATE EVERYTHING TO THE CONSTRAINT

18 Units/

Day

23 units/day

17 units/day

Capacity Increased at Step “C”

STEP-4

Elevate the Constraint

STEP-4ELEVATE THE CONSTRAINT

You are hereBut

Why?

STEP-4ELEVATE THE CONSTRAINT

• We are at Stage 4…

Means

• Step 2 & 3 weren’t Sufficient to eliminate the constraint

STEP-4ELEVATE THE CONSTRAINT

• Elevating the constraint

Means

• We take whatever action is required to eliminate the constraint

STEP-5

Repeat for the NEW Constraint

STEP-5REPEAT FOR THE NEW CONSTRAINT

• Go Back to Step 1 but Beware of Inertia

18 Units/

Day

23 units/day

17 units/day

STEP-5REPEAT FOR THE NEW CONSTRAINT

• Go Back to Step 1 but Beware of Inertia

23 units/day

17 units/day

• Constraint Shifted to another place - Market

BE WARE OF INERTIA

• Completed Process???

• In Real No…!!!!

• Constraints on Next Step…

TOC FIVE FOCUSING STEPS

“Which will Strengthen the Chain”

THEORY OF CONSTRAINTS “A SUMMARY”

• Understanding the system is mandatory to improving it

• Any System has a Goal

• The Leader is responsible for the Goal

• Theory of Constraint is about Leadership & Management

• Every System has at least one constraint

• If you don’t impact the constraint then there is no effect on the system’s improvement

• Improvement is a Long Term and Continuous Process

…THANK YOU…