theory of constraints toc in project management
DESCRIPTION
Project Management Presentation on Theory of Constraints...TRANSCRIPT
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…