1. Theory of Constraints and Project Management: Challenging the Dominant Paradigm Bob Donaldson, VP Strategy, McElroy Translation Company

6. Dilbert’s Perspective on Coordination

7. Service Delivery Dilemma GOAL: Become a Good Service Company Source: TOC Resultants: www.toc-resultants.com Maintain Consistent Quality Meet Timeliness Expectations Work to Standard Processes Work Flexibly

10. Typical Project Plan Note the illusion of certainty! Critical Path Local ‘Safety Time’ Embedded Throughout

11. Typical Plan w/Resource Leveling Illusion of certainty remains Critical Path Local ‘Safety Time’ Embedded Throughout Resource Contention

12. Multi-Project [Standard Services] Issues Actual Performance? Early Late Expected Performance Early Late ……

13. Parkinson’s Law 1 C. Northcote Parkinson; The Economist, Nov. 1955 Work expands to fill the time available for its completion 1 The root problem is “Safety” time!

15. Dilbert’s Perspective on Project Status

16. Theory of Constraints – Focus on Throughput Identify Exploit Subordinate Elevate Evaluate Strategic (Corporate) Loop Tactical (Project) Loop

19. Back to our Familiar Project Plan Critical Path

20. Critical Chain Plan w/Buffers Critical Chain

21. Critical Chain Plan w/Buffers Gating Buffer Constraint Buffers Feeding Buffer Project Buffer Critical Chain

22. Typical Resource Utilization Plan Adjusted by removing “safety” time …

23. The Roadrunner … Sprint Capacity Roadrunners have two speeds … Stopped (but ready for action) and Fast !

27. Performance Metrics w/Buffers Source: http://www.dbrmfg.co.nz Throughput Dollar Days Late Throughput Dollar Days Late Near-the-end Middle Beginning End Track Feeding Buffer End Time 0  Buffer Checking Time Constraint Buffer End Time 0  Buffer Checking Time Tracking Zone

28. Resolving the Dilemma GOAL: Become a Good Service Company Maintain Consistent Quality Meet Timeliness Expectations Constraint Management Buffer Management Throughput Oriented Metrics