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Theory of Constraints and  Project Management: Challenging the Dominant Paradigm Bob Donaldson, VP Strategy, McElroy Translation Company
Setting the Stage:  Technology Pressures ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Typical Project Problems Source:  National survey conducted by The Standish Group Until it's too late No reliable way to measure project status Epidemic Day-to-day chaos & frustrations 30% of projects Canceled before finished 70% of projects Fall short of planned technical content By 189% ,[object Object],Only 44% of all projects finish on schedule or before.   The rest tend to be very late.   On average, projects are 222% longer than planned. ,[object Object],Survey Results (1998)* Challenges & Symptoms
Project or Standard Services or Life Cycle? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Service Delivery Challenges ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Dilbert’s Perspective on Coordination
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
PMBOK – The Current Standard ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Why Projects Fail ,[object Object],[object Object],Do we really understand the difference between project  management  & project  monitoring ?
Typical Project Plan Note the illusion of certainty! Critical Path Local ‘Safety Time’ Embedded Throughout
Typical Plan w/Resource Leveling Illusion of certainty remains Critical Path Local ‘Safety Time’ Embedded Throughout Resource Contention
Multi-Project [Standard Services] Issues Actual Performance? Early Late Expected Performance Early Late ……
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!
Implications for Project Execution ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Dilbert’s Perspective on Project Status
Theory of Constraints – Focus on Throughput Identify Exploit Subordinate Elevate Evaluate Strategic (Corporate) Loop Tactical  (Project) Loop
Tactical Constraints – Single Project ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Theory of Constraints in PMBOK Context ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Back to our Familiar Project Plan Critical Path
Critical Chain Plan w/Buffers Critical Chain
Critical Chain Plan w/Buffers Gating Buffer Constraint Buffers Feeding Buffer Project Buffer Critical Chain
Typical Resource Utilization Plan Adjusted by removing “safety” time …
The Roadrunner … Sprint Capacity Roadrunners have  two speeds … Stopped (but ready for action) and Fast !
Roadrunner Advantages ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Strategic Constraints ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A Few Words on Metrics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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
Resolving the Dilemma GOAL:  Become a  Good Service Company Maintain Consistent Quality Meet Timeliness Expectations Constraint Management Buffer Management Throughput Oriented Metrics
Summary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Further Reading ,[object Object],[object Object],[object Object]
Contact Details ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Theory of Constraints and Project Management: Challenging the Dominant Paradigm

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