Theory of Constraints TOC in Project Management
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Theory of Constraints TOC in Project Management
- 1. THEORY OF CONSTRAINTS (TOC) PRESENTED BY: M. JAWAD-UL-HASSAN
- 2. DO YOU WANT TO INCREASE YOUR “PROJECT PERFORMANCE”???
- 3. DO YOU WANT TO INCREASE YOUR “PROJECT PERFORMANCE”??? Yes Or No
- 5. BUT HOW???
- 6. DIFFERENT APPROACHES ARE THERE…
- 7. TOC APPROACH
- 8. WHAT ACTUALLY TOC IS? • Multi-systems Methodology • To Assist People & Organization • To Think about their problems • Develop Breakthrough Solution • & Implement those Solutions
- 9. TOC EMPHASIZES… • Importance of Defining System goals • Understanding the Global Goal of system • As a Condition for…???
- 10. TOC EMPHASIZES… • Importance of Defining goals • Understanding the Global Goal of system • As a Condition for…??? SUCCESS
- 12. THE SYSTEM’S GOALS • To Achieve a “GOAL” • A Result or achievement toward which effort is directed
- 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. 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. LITERATURE• Articles • Journals • Websites • & other Means • & Finally I concluded
- 17. TOC IS ABOUT MANAGEMENT…
- 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. • Average Managers are concerned with methods, opinion and precedents. • Good Managers are concerned with solving Problems TOC IS ABOUT MANAGEMENT…
- 20. CONCEPT OF CONSTRAINTS • What keeps your system from doing Better? • Is there something that is constraining your Project from reaching its Goals?
- 21. SYSTEMS AS CHAINS • Assume a system to be a chain with a goal of transmitting force from end A to B
- 22. SYSTEMS AS CHAINS • Weakest Link The link at which the system fails
- 23. STRENGTHENING THE CHAIN • Where should we focus our efforts?
- 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. TOC FIVE FOCUSING STEPS “Which will Strengthen the Chain”
- 26. A PRODUCTION EXAMPLE A Simple Production System
- 29. STEP-1 IDENTIFY THE CONSTRAINT Step “C” is the Constraint
- 31. STEP-2 DECIDE HOW TO EXPLOIT THE CONSTRAINT
- 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. STEP-3 Subordinate Everything to the Constraint
- 34. STEP-3 SUBORDINATE EVERYTHING TO THE CONSTRAINT 18 Units/ Day 23 units/day 17 units/day
- 35. STEP-3 SUBORDINATE EVERYTHING TO THE CONSTRAINT 18 Units/ Day 23 units/day 17 units/day Capacity Increased at Step “C”
- 37. STEP-4 ELEVATE THE CONSTRAINT You are here But Why?
- 38. STEP-4 ELEVATE THE CONSTRAINT • We are at Stage 4… Means • Step 2 & 3 weren’t Sufficient to eliminate the constraint
- 39. STEP-4 ELEVATE THE CONSTRAINT • Elevating the constraint Means • We take whatever action is required to eliminate the constraint
- 40. STEP-5 Repeat for the NEW Constraint
- 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. 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. BE WARE OF INERTIA • Completed Process??? • In Real No…!!!! • Constraints on Next Step…
- 44. TOC FIVE FOCUSING STEPS “Which will Strengthen the Chain”
- 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. …THANK YOU…
Editor's Notes
- Suppose you are a Project Manager and you started working on Project….Here is the question for you….Do you want to increase your “Project Performance”?
- Yes or No ???Raise your hands who says yes I want to increase my Project performance…
- Surely as Seen everybody wants to increase the performance of the project….Because Whenever performance is good you will lead towards Success…And Everybody wants to achieve Success from thick and thin…
- As mentioned everyone wants to increase the performance and to achieve Success…But There is a very big Question… How you will increase performance…?How you will lead towards Success…?
- To increase performance and to achieve Success we have different approaches…Some of are mentioned here in the slide…Like Just in Time Approach Similarly Kaizen Approach, Total Quality Management & TOC i-e. Theory of Constraints etc…
- The Topic which is assigned to me by Sir Waseem was TOC that is Theory of Constraints…So I will explain TOC Approach in front of you people…
- Now What actually Theory of Constraint is???TOC is a Multi-systems Methodology to assist people and organization to think about their problems develop their solution and then after developing solutions implement those solutions.That what TOC actually is…
- TOC Emphasizes on “The importance of defining and understanding the global goal of the system as a condition for WHAT????”There is a condition in the application of TOC…Now what is that Condition????
- The condition for application of TOC is SUCCESS….When you understand the global goal of the system….There is a condition SUCCESS…
- THE SYSTEM GOALS…First of all let me clear in front of your people Why do Systems Exist????
- System exists to achieve a GOAL… Now that Goal must be realisticNumber 2… System is a result or achievement toward which effort is directed…. Means how we put effort to achieve Goal…
- Now when we talk about Goals there is another question that comes in our mind that….Who Gets to decide What the Goals should be????
- Number 1… Leader is responsible for the GoalNumber 2… Everyone may be considered as a leader of something (Whole Organization or it can be a Person from department or a unit… so everyone can be considered as a leader….
- Now How TOC can be used in Project Management…This was my topic….In coming slide I will explain to you people that how we can implement TOC???& What benefits can we take by implementing TOC…All this is what I am going to explain infront of you people…
- For my topic I studied different articles, Journals, Websites and other information which I got from Sir Waseem and my other colleauges…By studying all that I concluded my topic which I will tell in the end of presentation….Lets move towards next slide…
- TOC is all about Management….Like in this picture you are seeing that these person in meeting is managing something with proper discussion…TOC is about management…
- There arises three important questions for a Manager…1st What is the Ultimate Goal??? Means what way he wants to achieve in coming years which organization to compete and how….Secondly Where does He / She actually stand on order to reach towards the goal?? Here he has to compare the performance actual and predicted by measuring the performance he will be able to know where actually he stands what he has to do further in order to achieve organizational Goals….Thirdly what is the magnitude and direction of change needed to move from the status Quo and where he wants to be… How change can be adopted in his organization all this and above mentioned questions are most important to every manager in an organization…Lets move towards next slide…
- Now there are two types of managers as shown in picture one picture is average manager and another one having good manager is shown….Average managers are concern with methods and opinions etc… they just relates what are the methods are? And what are His opinion in management…Then there comes Good manager who are just concerned with solving the problem… There must be good managers in a good organization then organization will lead towards success just due to good managers…
- Let me tell you about Constraint..What the constraint is???Whenever you do work…. There is something which keeps you from reaching your Goal…Is there any thing that is constraining your project???I will explain this concept by giving you a personal example by looking our self…Suppose you are going to meet your girlfriend and you given her time to meet her 11 AM in the morning. You are thinking to come via van but there is CNG Strike that day…. Now you have to reach on time to meet your girlfriend…. But you are not able to go earlier just due to CNG STRIKE.. CNG STRIKE is therefore a constraint for you which is stopping you to reach on time.. Hope you would be clear about the concept of constraint… Lets move further towards next slides…
- Now assume system as a CHAIN….And you are at “A” place and wants to reach towards the point “B” that is the Goal for you….You see here there is CHAIN you can take this as a work first work by combing other and similarly by combining other you will reach towards your GOAL… but you can see there is the weak point in the centre I will explain this point in coming slide
- This is the Weakest link….At Point 4 you can see the weakest link…This is the constraint which stops you or create hurdles in your way to reach at Point “B” which is your Goal…
- Now where we should focus??We must focus on the weakest link…We must have to strong the weakest link so that we can reach our goals..If we are not able to make the weakest link strong then we cannot achieve our goals so we have to remove the hurdles in order to achieve our goals…
- There are some basic questions for managers….What is the desired Standard of performance? That is your system goalsWhat to Change?? Means where is the constraint???What to Change to??? What we should do for the constraint???How to cause the changes? How can we implement the change??
- TOC has Five focusing Steps that strengthen the Chain…Five focusing steps are mentioned here in the slide…First we have to identify the constraintThen exploit the constraintThen subordinate everything to the constraintElevate the constraintAnd in the end prevent inertia from becoming the constraint…
- Let me give you an example of a production…First there is input and after some process of production we got output…There are 5 Machines who producing different number of units per day… machine “A” produces 10 units per day and similarly “B” produces 20 units per day as shown in this slide…
- In five steps first we have to identify the constraint…
- In identification of constraint first we have to check where is the constraint…
- Step “C” having the low production which is the constraint in the whole production process… step “C” only produces 6 units per day that is the constraint…
- Then there comes step 2 which is the Exploitation of the Constraint…
- Then we have to decide how to exploit the constraint?
- What can we do to get the rid of this constraint?? Without being charging high expenses this is all about management as I discussed earlier in the slide TOC is about Management so here there must be efficient management who get rid from this constraint…
- Then comes Step 3Subordination everything to the constraint…
- Then we have to subordinate everything to the constraint…
- Hence capacity increased at step “C”…By subordinating everything to the constraint capacity is increased as showing in this slide….
- Then comes Step 4Elevate the Constraint
- First thing We Are Here but Why???Suppose let me ask you a question you are in 4th Semester but Why???Because when we clear this we will go to 5th semester… We cant get degree until we clear our 7 Semesters.
- Same is the case here… we are at step 4 its mean the previous 3 steps were not sufficient to remove the constraint… that’s why we are at step 4….
- Elevating constraint means we take whatever action is required to eliminate the constraint…From thick to think take action to get rid of the constraint you have….
- Then comes Step-5…Repeat for the new Constraint…
- Firstly we have constraint there at Stage “C”
- Now when the constraint is removed be ware of inertia…Constraint is shifted to another place that is in market….
- We have to beware of inertia…You think we have completed the process???In real we have not cleared the process….Constraint is transferred to another place… so beware of inertia…
- These were the FIVE Focusing steps of TOC that I explained in front of you people….
- In Conclusion we can say that…First of all Understanding the system is mandatory to improving it…Then any system has a goal…Then leader is responsible for the goalTheory of constraint is about Leadership & Management….Every system has at least one constraint…If we are not able to extract constraint then system can not improve…And improvement is a Long Term and Continuous Improvement..