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  1. 1. Bringing Discipline to Project Management Shinta Bachir
  2. 2. Eli Goldratt “The Goal, shook up the factory floor. Will Critical Chain do the same for projects?”• The Goal – Introduced the Theory of Constraints• Critical Chain – Applying the TOC framework to managing the development of new products and other products
  3. 3. Focusing on the Constraints• How to boost the performance of any process that involves a series of interdependent steps• Focus on bottlenecks or constraints rather than on breaking the process down and improving the efficiency of each step• Bottlenecks widened by changing policies that may promote efficiency
  4. 4. Focusing on the ConstraintsCritical Chain = Critical Path + Scarce Resources• For smooth flow of critical chain – Use safety buffers – Allow extra time for critical path – Allow extra time for non-critical path that feed into the scarce resources – Tightly schedule the activities of the scarce resource
  5. 5. Focusing on the Constraints• Successful Organizations – Putting emphasis on coordinating and communication – Continual communication and coordination becoming mandatory
  6. 6. Focusing on the Constraints• Elaborate plans should not distract managers from focusing on constraints• Most projects have one/two essential constraints-addressing them most important• Proper use of measurements – Induce the parts to do what is good for the whole – Direct managers to parts that need their attention• Reduce number of milestones as they motivate managers to insert safety time before each milestone
  7. 7. Managing Projects as a Portfolio• Managers cannot isolate and control different projects easily• They need a wider perspective of aggregate project planning• Projects fall short of resources or lose direction due to lack of agreement between senior and junior managers leading to slowing down of project and also failure to kill them• Thus organizations have too many projects compared to available capacity
  8. 8. Putting Flexibility where It Counts• When the degree of change involved is great, managers need to approach projects differently• Projects incorporating discontinuous technologies require managers to apply stringent & individualized criteria for determining how to proceed• Goldratt’s flexible approach may be more easily applied to products that can be frequently modified than to capital intensive or mission- critical products, such as aircraft engines
  9. 9. Conclusion• Process Management: Eliminates variability• Project Management: Accepts variability as each project is unique• Critical chain theory cannot be fully implemented for projects due to high level of uncertainty• In truth, Leadership may be the larger constraint
  10. 10. Thank You