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Theory of Constraints TOC in Project Management

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Project Management Presentation on Theory of Constraints...

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Theory of Constraints TOC in Project Management

  1. 1. THEORY OF CONSTRAINTS (TOC) PRESENTED BY: M. JAWAD-UL-HASSAN
  2. 2. DO YOU WANT TO INCREASE YOUR “PROJECT PERFORMANCE”???
  3. 3. DO YOU WANT TO INCREASE YOUR “PROJECT PERFORMANCE”??? Yes Or No
  4. 4. SURELY YES…!!!
  5. 5. BUT HOW???
  6. 6. DIFFERENT APPROACHES ARE THERE…
  7. 7. TOC APPROACH
  8. 8. WHAT ACTUALLY TOC IS? • Multi-systems Methodology • To Assist People & Organization • To Think about their problems • Develop Breakthrough Solution • & Implement those Solutions
  9. 9. TOC EMPHASIZES… • Importance of Defining System goals • Understanding the Global Goal of system • As a Condition for…???
  10. 10. TOC EMPHASIZES… • Importance of Defining goals • Understanding the Global Goal of system • As a Condition for…??? SUCCESS
  11. 11. THE SYSTEM’S GOALS
  12. 12. THE SYSTEM’S GOALS • To Achieve a “GOAL” • A Result or achievement toward which effort is directed
  13. 13. THE SYSTEM’S GOALS
  14. 14. 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)
  15. 15. USING THEORY OF CONSTRAINTS IN PROJECT MANAGEMENT • How we can implement TOC? • What benefits can we take? • All this is Coming to your ways…
  16. 16. LITERATURE• Articles • Journals • Websites • & other Means • & Finally I concluded
  17. 17. TOC IS ABOUT MANAGEMENT…
  18. 18. • 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…
  19. 19. • Average Managers are concerned with methods, opinion and precedents. • Good Managers are concerned with solving Problems TOC IS ABOUT MANAGEMENT…
  20. 20. CONCEPT OF CONSTRAINTS • What keeps your system from doing Better? • Is there something that is constraining your Project from reaching its Goals?
  21. 21. SYSTEMS AS CHAINS • Assume a system to be a chain with a goal of transmitting force from end A to B
  22. 22. SYSTEMS AS CHAINS • Weakest Link The link at which the system fails
  23. 23. STRENGTHENING THE CHAIN • Where should we focus our efforts?
  24. 24. 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?
  25. 25. TOC FIVE FOCUSING STEPS “Which will Strengthen the Chain”
  26. 26. A PRODUCTION EXAMPLE A Simple Production System
  27. 27. STEP-1 Identify the Constraint
  28. 28. STEP-1 IDENTIFY THE CONSTRAINT
  29. 29. STEP-1 IDENTIFY THE CONSTRAINT Step “C” is the Constraint
  30. 30. STEP-2 Exploit the Constraint
  31. 31. STEP-2 DECIDE HOW TO EXPLOIT THE CONSTRAINT
  32. 32. STEP-2 DECIDE HOW TO EXPLOIT THE CONSTRAINT What can we do to get the most out of this constraint without committing to potentially expensive charges?
  33. 33. STEP-3 Subordinate Everything to the Constraint
  34. 34. STEP-3 SUBORDINATE EVERYTHING TO THE CONSTRAINT 18 Units/ Day 23 units/day 17 units/day
  35. 35. STEP-3 SUBORDINATE EVERYTHING TO THE CONSTRAINT 18 Units/ Day 23 units/day 17 units/day Capacity Increased at Step “C”
  36. 36. STEP-4 Elevate the Constraint
  37. 37. STEP-4 ELEVATE THE CONSTRAINT You are here But Why?
  38. 38. STEP-4 ELEVATE THE CONSTRAINT • We are at Stage 4… Means • Step 2 & 3 weren’t Sufficient to eliminate the constraint
  39. 39. STEP-4 ELEVATE THE CONSTRAINT • Elevating the constraint Means • We take whatever action is required to eliminate the constraint
  40. 40. STEP-5 Repeat for the NEW Constraint
  41. 41. STEP-5 REPEAT FOR THE NEW CONSTRAINT • Go Back to Step 1 but Beware of Inertia 18 Units/ Day 23 units/day 17 units/day
  42. 42. STEP-5 REPEAT 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
  43. 43. BE WARE OF INERTIA • Completed Process??? • In Real No…!!!! • Constraints on Next Step…
  44. 44. TOC FIVE FOCUSING STEPS “Which will Strengthen the Chain”
  45. 45. 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
  46. 46. …THANK YOU…

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