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|TOCICO Project Management Annotated Bibliography By James F. Cox III|
Listed below is an annotated bibliography of the presentations on the use of TOC in project management made at the annual TOCICO International Conference (2003-2013) and TOCICO webinars (2010-2013).
Adams, G. (2008). Delta Air Lines: Meeting challenges in engine maintenance. TOCICO International Conference: 6th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
In 2005, Delta Air Lines filed for bankruptcy. Prior to its merger with North West Airlines, Delta was a $17 billion sales revenue airline with approximately 50,000 employees. After merger in 2008 Delta was a $35 billion top line revenue airline with the same number of maintenance, repair, and overhaul (MRO) employees. As part of the bankruptcy plan, engine maintenance was required to reduce cost and inventory while, at the same time, increase productivity. In 2002 the MRO had revenues of $77 million and in 2008 the revenues were $470. The requirements for survival aligned very well with Theory of Constraints- -more specifically, critical chain and drum-buffer-rope. The summary of changes includes: create plans with buffers in critical chain and in drum buffer rope; control the work-in-process inventories by controlling release; manage using the buffers, and use exception management. TOC concepts implemented in 2006 were to focus on constraints and improve overall engine maintenance performance using continuous improvement as the growth strategy. Six sigma and lean had previously been implemented. TOC concepts have given a clear understanding of where to apply six sigma and lean methods to achieve true bottom-line results.
Agarwal, M. (2005). Managing EPC projects. TOCICO International Conference: 3rd Annual Worldwide Gathering of TOC Professionals, Barcelona, Spain, Goldratt Marketing Group.
This presentation is about managing engineering procurement and construction (EPC) projects using TOC. The EPC challenge (like a power plant) and critical chain, the components of the solution and summary and questions are discussed. A mega project like a power plant or new steel plant may have many EPC projects. The value proposition is attractive to the client. The EPC company must drive down costs (usually a fixed price contract). Each EPC package involves many stakeholders and has many suppliers each working in a multi-project environment. Significant multi-tasking exists within and across projects.
Anderson, D. J. (2004). TOC software engineering solution with lean & six sigma solution. TOCICO International Conference: 2nd Annual Worldwide Gathering of TOC Professionals, Miami, FL, Goldratt Marketing Group.
This presentation seeks to explain the TOC solution of critical chain project management (CCPM) for use in modern software engineering. Key learning points include: 1. How to use drum buffer rope (DBR) with software engineering; 2. How to use throughput accounting (TA) with software engineering; 3. Understanding useful variation in software engineering; 4. Provide a TOC enabled maturity model for software organizations; 5. Identifying what’s fundamentally wrong with the SEI CMMI and SW-CMM; 6. The integration points of a TOC software solution with six sigma, Deming, and Toyota Production System (TPS) principles and lean thinking. Benefits to attendees: 1. Benefits of applying DBR, CCPM and TA to technology development; 2. Contrast of the TOC approach with traditional approaches; 2. Benefits of using lean cumulative flow diagrams for the DBR solution.
Aoki, N. (2006). Critical chain for inpatient management of patients with diabetes mellitis. TOCICO International Conference: 4th Annual Worldwide Gathering of TOC Professionals, Miami, FL, Goldratt Marketing Group.
This presentation describes the application of the theory of constraints (TOC) critical chain project management (CCPM) application to design a resource allocation and scheduling system for healthcare professionals. Diabetes is used as a case example as a project. CCPM provides a good solution to create a concrete schedule for each professional which maximizes resource utilization and reduces extra waste. Quality indicators were examined. A prototype information system is being implemented based on CCPM concepts.
Arai, H. (2009). Myths about product registration of medical devices in Japan. TOCICO International Conference: 7th Annual Worldwide Gathering of TOC Professionals, Tokyo, JP, Goldratt Marketing Group.
Due to its rapidly aging population, Japan has been a very attractive market to medical device manufacturers. This presentation introduces organizational efforts for improving its performance using the concepts of TOC, such as critical chain project management (CCPM) and the thinking processes (TP). Internal touch-time to register a product has been shortened by about 30-70% in a multiple projects environment with less people and without compromising compliance.
Asaine, K. (2009). Public works and CCPM. TOCICO International Conference: 7th Annual Worldwide Gathering of TOC Professionals, Tokyo, JP, Goldratt Marketing Group.
The presentation objective is to describe insights into the development of public works projects in Japan with critical chain project management (CCPM). The issue is focused on how to implement and synchronize CCPM with the One-day Response Project, where the government must respond to contractors' queries within one day of receipt.
Bacharach, G. and U. Techi (2013). Introducing multi-project management using TOC standards. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
In the near future the world will face a lot of challenges. One challenge will be that business will be governed by projects and only those companies will be successful that are able to deal with their projects in a proper way. The presentation 'Introducing multi-project management using TOC standards' shows how to implement 'multi-project management' within an organization using the TOC mindset. In summary while introducing multi-project management you have to take account of 1. The introduction of multi-project management is a change process inside an organization. 2. This project should satisfy the general criteria for a meaningful and accepted change. 3. Multi-project management should be introduced by using the following process model: a. Reach a consensus with top management on introducing multi-project management. b. Get quick-wins quickly. c. Reduce the workload and multitasking. d. Introduce the principle of good preparation ('full kit'). e. Re-plan projects and project portfolios. Introduce project controlling and execution management. f. Involve customers and suppliers. g. After introducing multi-project management successfully an organization has to start with a process of on-going improvement (POOGI) immediately, if it wants to stay successful. If this process of ongoing improvement came to an end using the current resources, a company has to think about expanding those resources.
Bradley, J. and K. Francis (2005). Financial measurements and cost buffers in projects. TOCICO International Conference: 3rd Annual Worldwide Gathering of TOC Professionals, Barcelona, Spain, Goldratt Marketing Group.
The purpose of this presentation is to propose the development and use of cost buffers in critical chain (CC) environments. The presentation’s organization is an overview of earned value management systems (EVMS), measurement types, EVMS problems, EVMS in a critical chain environment and cost buffers. Earned value assumes that good global optima are achieved by focusing on local optima. It summarizes over time how we plan to spend money (PMB = performance measurement baseline). There are 32 items as part of EVMS. Cost Performance Index (CPI) and Schedule Performance Index (SPI) are discussed. Measurement types include performance, operational and conformance. EVMS is a conformance measurement. EVMS problems are described. There are ways of reporting EV under critical chain but you don’t use it to make decisions. Would it not be better to develop a measurement useful in critical chain? Cost buffers. Three methods of calculating cost buffers are presented. The advantages and disadvantages are discussed. These are being investigated to replace the two indices and be in line with critical chain use in the Department of Defense.
Brasil, A., et al. (2012). Competitive advantage through critical chain. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
This presentation discusses the implementation goal: transforming the system of portfolio management and commercial aviation projects in the company's competitive advantage, with the following results: 1. Reduce the average cycle of implementation of projects; 2. Increase the amount of projects delivered in a given period, for the same quantity and quality of resources; 3. Contribute to the achievement of 100% delivery of customer projects within agreed in hiring (kept the same conditions of the time of recruitment); 4. Improve the quality of life of those involved. The design of the system was made in 2009. In 2010 and 2011 we had consistent results with the objective established. Today, we are in studies to start a new cycle of improvement for another level of results.
Brasil, A. V. (2013). CCPM: Turning the invisible into visible for decisions. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
'Timing' in projects is as important as 'time' is. For one single project to be a success, many dimensions need to be in harmony. The multi-project environment, therefore, seems to be much more complex. There are dimensions where things and / or references move continuously. There are dimensions where things and / or references move discretely. Sometimes, dimensions are mixed and the decision process is seen as easier. After decisions are made and implemented, nature shows the effects. Mixed dimensions make difficult to understand and identify root causes and interrelationship 'routings' governing development system. When results are not as expected, we cannot expect that the actions taken to correct them or to improve the system are the right ones. Normally there are many hidden conflicts in legacy systems created for administration of projects development systems. During critical chain project management (CCPM) implementation, some of these conflicts arise. Understanding the different dimensions is essential to harmonizing perceptions, decisions, language, solutions, measurements, phases and criteria. Then, the deployment of a process of on-going improvement (POOGI) can be chirurgical if CCPM is already implemented or very precise for a new or bigger application or implementation. Harmonizing and the right timing need to be inherently simple but are not necessarily easy.
Brunner, M. D. (2009). Implementation of Lean+ and Theory of Constraints- Boeing fleet support engineering-airframe. 1st Annual North American Regional TOCICO Conference, Tacoma, WA, Goldratt Marketing Group.
This presentation describes the implementation of critical chain (CC) in Boeing. The presenter describes his first use of CC which was quite successful. He then describes its use on another project. Fleet support engineering includes service bulletins and maintenance manuals, airplane on ground (AOG) support, daily repair design and approval, and aging aircraft support. Rapid response is critical. The situation in 2007 was described as a crisis mode with being behind on everything, having dissatisfied customers, deteriorating morale, pending initiatives on the horizon, etc. The reservations to the strategy and changes made are discussed. The results of implementing CC in this arena are provided. Principles and practices for working together are provided.
Buters, F. J. (2009). Strategy & tactics for managing multi-projects. First European TOCICO Regional Conference, Amsterdam, The Netherlands, Goldratt Marketing Group.
This presentation provides a brief history of critical chain (CC), a discussion of the structure and definitions of the strategy and tactics (S&T) tree and what I can do when I go back to my company to start on theory of constraints project management. The S&T helps you implement critical chain holistically with decisive competitive edges of reliability and doing projects faster. The build, capitalize and sustain stages are discussed. The first actions must provide significant results to get and maintain management attention. We do an explicit learning program on CC so that it is integrated into the organization culture. This is the introduction to three different case studies.
Cerveny, J. F. (2005). TOCICO project management exam review workshop. TOCICO International Conference: 3rd Annual Worldwide Gathering of TOC Professionals, Barcelona, Spain, Goldratt Marketing Group.
This presentation provides an overview of the content of the critical chain project management examination.
Chim, W. K. (2013). CUSUM chart application in CCPM buffer management. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
Buffer management is a vital component in TOC critical chain project management (CCPM). The fever chart is one of the most common tools in managing buffer consumption. One important aspect of the fever chart is that the yellow and red zones are set based on experience and process knowledge. However, there is difficulties in identifying if a task entered the red zone has really significantly consumed more buffers versus other tasks. In this workshop, statistical process control (SPC) of buffers is briefly discussed. Shewhart charts of burn rate and project buffer consumption rate (PBCR) are presented. The relationship between the fever chart, burn rate and PBCR is discussed. Finally, this workshop demonstratse basic principles of the CUSUM chart and also how to construct a CUSUM chart in monitoring buffer consumption to identify a small drift in mean buffer consumption.
de Laat, L. (2009). Using TOC to deliver IT projects on time, all the time. First European TOCICO Regional Conference, Amsterdam, The Netherlands, Goldratt Marketing Group.
Caesar is a medium-sized information technology (IT) company based in The Netherlands. From 1995 when Caesar was founded until 2001 Caesar grew steadily. Following an operational excellence strategy Caesar was able to deliver high quality IT specialists for very competitive prices. This strategy however proved to be recession-prone. The recession of 2001 – 2002 hit the company hard. Looking for a way to build a stronger competitive edge Caesar embarked on a journey with Eli Goldratt in 2004. The ambitious target was to build an IT company that would deliver all its projects on time (with the right scope and for a fixed fee). At that moment (and many years before and after it) project performance of IT companies was poor: typically 60-70% of IT projects fail to deliver the right scope on time and within budget. In 2004 Caesar did not outperform the market average. In the first six months of 2005 we implemented a new way of working. The core improvement implemented in this period was critical chain project management (CCPM). Although this proved a necessary component it was not sufficient to reach the goal. A major cause for project failure – at least in IT projects – is uncontrolled scope creep. Applying critical chain allows for some scope creep to be absorbed but we found that an extra injection was necessary: a scope management process that would minimize scope changes to only the most crucial. We developed PDSM – problem driven scope management – using the TOC thinking processes (TP) at the initiation phase of each project to define the basis for the project scope. With a clear problem definition we found that we could effectively manage the project scope during the execution of the project. So much so that we can guarantee customers that we will solve their problem on time and for a fixed fee. The guarantee includes a penalty for late delivery. This unique approach was named Time Value. In the first months of operation this combination of CC and PDSM gave us very promising results: our DDP in 2005 was 80%. As we took on more projects and more complex projects we found a number of other process improvements (mainly from the lean / agile) were necessary to maintain a high DDP. Using the TP in our own organization to understand the problems and develop and implement solutions, we have been able to constantly improve our performance. In the last three years this has resulted in 95%+ due date performance on our IT projects.
Deuras, S. (2010). Multiplying profits and increasing profitability through CCPM in large engineering and construction projects company TRF, India. TOCICO International Conference: 8th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
This presentation describes a case of quantum improvements through deployment of TOC critical chain project management (CCPM). BMHS undertakes large turnkey projects for putting up a material handling plant for power plants – right from design, procurement, site construction, commissioning and hand over.
Ferguson, L. A. (Dec. 5th, 2012). Introduction to project management. TOCICO Webinar Series. TOCICO, Theory of Constraints International Certification Organization.
Dr. Lisa Anne Ferguson facilitates a series of 'Zero to Sixty' webinars for those wanting to learn the fundamentals or basics of TOC critical chain project management. These webinars would also be a good review of those topics for those familiar with TOC.
Furbeck, R. (2009). TOC in large projects. 1st Annual North American Regional TOCICO Conference, Tacoma, WA, Goldratt Marketing Group.
At the edge of our capabilities, there exists a class of projects that are so large and complex that they challenge our concepts of planning and management. These projects require the coordination of a large number of interdependent agents working on an even greater number of interdependent tasks. Examples of this class of projects include large-scale initiatives for the creation of communications, transportation, and energy infrastructure, the development of defense systems and platforms, and the synthesis of multiple breakthrough technologies in research and development programs to solve important problems.
Goldratt, E. M. (2009). MLIT presentation. Win-Win-Win Public Work International Conference, Tokyo, JP, Goldratt Marketing Group.
Goldratt asks if the audience wants him to evaluate MLIT’s use of critical chain with contractors. Many in the audience wanted the truth. Eli’s staff wanted politeness. Eli decides to be critical of MLIT’s use of critical chain. Project managers should have seen a 25% reduction in project lead time. If you think that by using critical chain software you are doing critical chain then you are wrong. Do you believe by the government committing to one day response to contractors' questions and taking one week is not critical chain. Some responses should be given immediately and others are not so important. What are the criteria for evaluation of the response? If the project will be delayed because of the response delay then answer immediately; it is important. If the delay has no importance in its relationship to the project completion times, then why the rush? There are three important steps in projects. First, choose the right project. Second, design the project correctly. Third, execute the project correctly. For the first question, the thinking processes (analyze the situation to determine the real need—that is that the project meets that need) are used. For the second question, the design of the project, the tool is the S&T tree, how do you start with an objective and end up with a project network. The whole logic is spelled out. How can you use the gemba experience if others don’t know why you have designed the project in the way you have designed it. For the execution you start with the PERT then end up with reality. Your biggest waste (according to Ohno) is overproduction. In project management the biggest waste is buffering each task. Critical chain says to take this local buffering and protect the whole project. By aggregation of local buffers the variability goes down hence project lead time must go down by 25%. If you don’t report on it then you do not use critical chain.
Goldratt, E. M. (2009). Standing on the shoulders of giants. 1st Annual North American Regional TOCICO Conference, Tacoma, WA, Goldratt Marketing Group.
This presentation discusses Newton’s quote of standing on the shoulders of giants. Eli discusses Eli Whitney’s contribution of standardization of parts for guns moving from a few hundred guns to thousands of rifles per month; Henry Ford's invention of the flow line; and Taiichi Ohno’s invention of the kanban system. These allowed the ability for an organization to focus on flow. The flow principles are derived from studying their contributions. These flow concepts are: 1. Improving flow (or equivalently lead time) is a primary objective of operations. 2.This primary objective should be translated into a practical mechanism that guides the operation when not to produce (prevent overproduction). 3. Local efficiencies must be abolished. 4. A focusing process to balance flow must be in place. The focus of Ohno was on flow not quality, not cross-training, not cost, ... Choose one, ignore the others. If you achieve this one then you achieve all the others. Each concept is discussed in great detail with respect to both Ford and Ohno. Drum buffer rope (DBR) and buffer management (BM) are then compared and contrasted with Ford’s and Ohno’s contributions with respect to the four flow concepts. The application and misapplication of DBR and time buffers in make to availability (stock buffers) and critical chain (time buffers) are discussed. The application of these concepts to sales is discussed. Decisive competitive edges and the strategy and tactics trees are also discussed.
Granot, M. (2007). The changes to the CCPM BOK. TOCICO International Conference: 5th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NV, Goldratt Marketing Group.
This presentation describes the situation of implementing the project management strategy and tactics tree in a Viable Vision company. It was noted that a gap existed between what was done and the steps in level 5 of the tree. Some elements are missing and others require modification. For a TOC implementation to be successful the first actions must result in immediate substantial benefits therefore the first action should be to freeze projects to reduce bad multitasking. The sequence of changes in critical chain are presented and described. Virtual drum, full kitting, staggering, integration, and buffer management are discussed.
Gupta, S. (2005). Critical chain: Successes, failures, and lessons learned. TOCICO International Conference: 3rd Annual Worldwide Gathering of TOC Professionals, Barcelona, Spain, Goldratt Marketing Group.
This presentation starts with a history of critical chain (CC) from Goldratt’s novel in 1997 to the HBR article by Elton and Roe in 1998 to the book, The Definitive Guide to Project Management, in 2003. The statistics of critical chain implementations at Realization are provided based on 150+ implementations: 35% produced stellar results (> 25% increase in speed and throughput); 35% have produced only marginal results (projects finish on time; 5-10% increase in speed and throughput); 15% failed to take hold (despite initial success) and 15% failed to even take off. The before-and-after results for seventeen implementations are provided. Areas of difficulty include buy-in of the changes and establishing the mechanics. Lessons learned include: implement the three rules. No more no less (pipelining, buffering, and buffer management); use the following eight-step implementation plan; use solution design based on project configuration (basic pipeline, stage-gate, A projects, V projects, etc.) templates; create aggressive plans without getting mired in task-level estimates; top management has to play an active role; lean has its drawbacks but also provides benefits; and forge the new system while the iron is hot (results should begin in 2 to 3 months).
Hitomi, M. (2013). Technology breakthrough by operational breakthrough. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
Many of Japanese companies are facing the dilemma to fulfill corporate social responsibility by securing employment versus to deliver new innovative products by investing more money for new product development. Mazda, the major employer in Hiroshima and often used as a miniature case of Japan's struggle, was facing the following challenges: -Keep employment to fulfill corporate social responsibility in local community -Huge pressure to move out from Japan to cope with intense Yen appreciation -Keep Mazda spirit to deliver innovative cars -Cost reduction without compromising high performance with eco-friendly gas mileage. With four straight years of negative financial performance and a plummeting share price, Mazda had to come up with a way to deliver car innovation without increasing costs while keeping employment. Started with bottom up initiatives and later supported by a top-down commitment, the company utilized TOC’s critical chain project management (CCPM) to develop an innovative, new technological advance which it called 'SKYACTIV.' Not only was Mazda able to cut its car development time in half, but it produced a lighter and stronger chassis and, using new technology, the ability to extract a significantly greater amount of energy from its fuel. As a result, the mileage is competitive with hybrid cars without any compromise in performance and far less cost. Among the key performance indicators (KPI's) for Mazda are a huge jump in sales and consequent rise to number one in market share in many global markets, a return to profitability, and increased motivation and collaboration within the company. Moreover, the company has won numerous industry awards for its technological breakthroughs. Above all, nothing more than makes all happy is people's harmony - motivation and collaboration. The company’s key learning: There is no limit for technology breakthrough. There is no limit for operational breakthrough. 'Even the sky is not the limit.'
Holt, J. R. (2011). Visual project management: Seeing how to get things done. TOCICO International Conference: 9th Annual Worldwide Gathering of TOC Professionals, Palisades, NY, Goldratt Marketing Group.
When effective management of many small projects is the bottleneck, Visual Management provides a quick and easy way to effectively track small and larger projects in both single and multiple environments. This method of simplified-critical chain project management (S-CCPM) is easy enough to manage projects on a cell phone yet robust enough to track resources loading and guide release of new work. With a visual management method, everyone can see the status of all work and agree on the actions needed to benefit the organization as a whole.
Holt, J. R. (2013). Project and multi-projects management basics workshop. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
This workshop is an introduction to project management the TOC way. We discuss the nature of projects and the nature of tasks, the impact of interdependency and variability on human behavior and the core conflict of projects. Critical chain project management (CCPM) scheduling and buffer management are introduced for both single and multi-project environments. The workshop is intended to prepare the attendee to take the TOCICO on-line basics critical chain project management exam, in advance of the TOCICO fundamentals exam.
Holt, J. R. (2013). Simplified critical chain project management: Visual project management. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
If we are not doing mass production, then we are doing projects. Yet, 90% of organizations doing projects do not use project management tools. Project management tools are just too much trouble for most projects. Visual Project Management is a simplified approach to critical chain project management (CCPM) that relaxes many project management tools, simplifies reporting and tracks projects using buffer management. Simplified critical chain project management (SCCPM) presents individual and multiple projects in such a way that management, workers and customers all agree with needed management actions. By using Visual Project Management, users learn to become better project managers.
Holt, S. (2007). TOC case study: The application of critical chain project management to the design of large commercial aircraft at Boeing Commercial Airplanes. TOCICO International Conference: 5th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NV, Goldratt Marketing Group.
This presentation is a case study of the Boeing 777 airframe projects (777-300ER and 777-200LR) using large scale multi-project critical chain in Engineering Product Development. Planning and execution of the work includes: Create the plan (Apply templates to work statements, no dates); commit the plan (Assign completion dates to projects, adjust resources); and manage to the plan (Use resource histograms and fever charts for daily management; drawing due date system to check weekly commitments; and earned value to show monthly progress). The results of each project (consisting of 10,000 projects each) are presented.
Hutchin, T. (Feb. 23rd, 2011). CCPM – Coaching dimension insights. TOCICO Webinar Series. TOCICO, Theory of Constraints International Certification Organization.
Critical chain project management (CCPM), from the earliest beginnings to one of the major shifts in project management over the last forty years, represents a paradigm shift in project management and one that is still being explored. CCPM is not just about managing projects or about managing programmes. CCPM is a business methodology that challenges the way you do business, the way you manage people, the way you engage with clients and suppliers – it is a systemic way of managing in the project environment if not THE way to manage! There are software systems, training systems, implementation systems all designed to help you implement and manage according to CCPM principles BUT despite all the success that has been achieved there are still three areas to be addressed: 1. The people dimension. a. This is about developing internal people to maintain and sustain the progress – always challenging the status quo, never satisfied with 'now' and looking to what must be done tomorrow, this is a leadership role rather than a management one. We have too many managers and not enough leaders. Leaders are people who can inspire, who can encourage, who can help to draw out of those around hidden potential, leadership is a necessary condition for any organisation and that includes project driven ones. b. It is also about managing the change process – this is where coaching comes in – working with each individual, sitting alongside, helping them to overcome the barriers they perceive will prevent them from moving forward. This is about helping those involved to see just how the changes will affect them, and allow them to be what they wanted to be in the first place – good project managers, good resource managers, good engineers and so on. This is about releasing the potential within each person and using that potential to gain significant economic advantage and secure jobs into the future. 2. The metric dimension. a. It is an old cliché but if the measures don’t change neither will much else – and still many people even within successful CCPM organisations have not thought through the metric changes required So a short part about the importance of changing the metrics for any chance of a successful implementation, 3. Sustaining the progress. a. The technology does not sustain progress, people do, so invest in the people, recruit the best when needed, train them, coach them, allow them to make mistakes, and above all train and coach them to make really informed choices.
Jacob, D. (2012). Goldilocks and the three buffers (project management). TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
The session objective is to transfer the skills to properly immunize projects in all types of project environment, including high variability environments. Key learnings are the identification of the four types of variability to be addressed by buffers; why your task sizing process and software may steer you to undersize your buffer; and how to determine if your buffer size is too small. The audience should leave with the skills to capture the variability their buffers should address; when to intervene on challenging the right task times; and an algorithm to check if your buffer is too small.
Jacob, D. and B. Mendenhall (2008). Project management in a lean world. TOCICO International Conference: 6th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
The objectives of this presentation are for the audience to: understand why applying lean / six sigma (LSS) to project management (PM) is difficult; translating LSS elements to project management environments; and PM techniques incorporating LSS. The presentation describes the background of lean, six sigma, and lean six sigma in addition to the obstacles of applying LSS to PM; translating LSS into the project environment; and updating traditional project management for LSS. Numerous basic terms of lean (lean, lean thinking, waste, muda, value added, business value added, non-value added, categories of waste, and the building blocks of lean) are defined. Numerous basic terms of six sigma (six sigma, six sigma thinking, DMAIC phase steps, etc.) are defined. Today LSS is an integrated approach but it doesn’t translate into the project environment directly. Lean in multi-projects means the right quantity of projects at the right time with the correct content as quickly as possible to meet each project’s commitments. That definition translates to the individual project, the task priorities and the task management levels. The differences between activity and productivity are discussed as is the definition of productivity in the traditional project management environment. We need to look at productivity from the task instead of the resource.
Jaeck, P. (2011). The project factory. TOCICO International Conference: 9th Annual Worldwide Gathering of TOC Professionals, Palisades, NY, Goldratt Marketing Group.
The goal of the presentation is to show how the staggering of the projects was organized in a $500 million revenue oil service company and how the critical chain project management (CCPM) methodology allowed us to achieve 92% of the projects on time and within budget. The key learning points are based on case studies relating to two real information technology (IT) projects. The presentation focuses on the roadblocks we overcame with our suppliers and how the CCPM allowed us to keep the projects on track.
Jha, B. (2007). Tata Steel: An update on Viable Vision: Discovery & learning. TOCICO International Conference: 5th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NV, Goldratt Marketing Group.
This presentation discusses the calculation of the Tata Steel organization’s profits attributed to the Viable Vision. The financial impact and training requirements are presented. The reduction in TRD (throughput rupee days) is provided for a year’s period in aggregate and separated into three different processes (cold and hot rolled, longs and tubes, and wires). The detailed strategy and tactics (S&T) tree for Tata Steel VV implementation is provided through level 3. The decisive competitive edges (CE) are: 2.1 Distributors CE; 2.2. Reliability CE; 2.3 Rapid CE; and 2.4 VMI CE. The detailed steps with necessary assumption, strategy, parallel assumption, tactic, and sufficiency assumptions are provided. A model for maximizing the throughput from the mines which includes flow, mine life and value is provided. The use of buffer management is illustrated. Major objectives, actions and achievements are provided. The use and results of critical chain in maintenance and sustenance projects are discussed.
Kapoor, A. (2005). Critical chain: Resource management. TOCICO International Conference: 3rd Annual Worldwide Gathering of TOC Professionals, Barcelona, Spain, Goldratt Marketing Group.
This presentation describes the role of resource management in critical chain (CC) environments. The assumption that there is not enough capacity to manage projects in the face of all the uncertainty is exposed as a false assumption in traditional project management. Traditional resource management examines how should portfolio commitments be reconciled when projects are delayed; where should capacity be added; and how should project budgets be reconciled with resource allocation. Critical chain resource management focuses on plugging execution losses by examining the total time taken which includes work content, interruptions (changing priorities, wait times for queues, changing requirements, decisions not made in a timely manner, support of existing products, etc.) and Parkinson’s Law (sense of urgency more towards the milestone, most completions of work items reported on or after estimated time, quality standards encourage polishing, resources work ahead of critical decisions having to rework later, etc.). To plug these losses resource managers need task level priorities across project to minimize interruptions and the impact of task delays on buffers to minimize the Parkinson’s Law. Actions have to be done on a day-to-day basis. The constraint in project organizations is capacity needed to manage and support projects. The primary exploitation strategy is to reduce cycle time of projects and to recognize that task level priorities are essential to streamline the support and management processes. In selecting the drum for CC the load and capacity data do not show the real constraints but setting up the pipeline model requires the selection of a virtual drum. Once the pipeline is complete, resource load to capacity data is invaluable to proactively plan for temporary resource overloads and buffer recovery actions and input-output reports are the basis for making decisions about overtime, outsourcing, and movement of resources. Resource management must ensure protective capacity sometimes using project specific knowledge.
Kapoor, A. and J. R. Holt (2012). Standing on the shoulders of giants expert session: Improving / expanding CCPM. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
This presentation and facilitated session discuss critical chain project management (CCPM) using the standing on the shoulders of giants (SOSG) process. The successes, scope, single project (constraint is time) and multiproject (constraint is staggering resource), etc. of CCPM are described. Capacity needed to manage uncertainty is a true constraint. The focus in all project environments is to cut cycle time which can be translated into additional throughput. Some environments where CCPM may not work as a standard solution were provided: projects with tens of thousands of tasks with dependencies, date driven milestones throughout the project, R&D projects with iterations and decision points, marketing campaigns with changes based on feedback, projects where slithers of time are required across many projects, etc. Groups presented other project environments where CCPM is difficult. Group discussions on how to use CCPM in these environments were facilitated.
Kasichainula, R., et al. (2013). Implementation of CCPM in the pharmaceutical industry. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
In this paper, I take you through the journey of the critical chain project management (CCPM) implementation in our company (Dr. Reddy’s Laboratories Limited). CCPM is implemented as part of Viable Vision initiative rolled out in 2008 with the help of Goldratt Consulting (GC). During the initial interactions, it was found that • Many projects are under development and there are always some projects on hold due to resources non-availability / changes in business priorities. Some products are under development for years together with diluted efforts. • Many projects are stuck during execution due to logistics / resources / technical issues. • Due date performance and cycle time are not measured wrt original start date and original due date but to continually adjusted revisions. • Throughput is inconsistent and skewed to the end of the financial year. After going through the TOC critical chain workshops with senior members of the organization, the team was convinced to take up the goal • To implement and instutionalize a procedure for managing the product development. • To significantly improve and sustain the due date performance (DDP), cycle time and productivity performance. GC has customized the project management strategy & tactic (S&T) tree as a guideline for the implementation in Global Generics and PSAI • CCPM implementation is done in a phased manner with the support of a dedicated facilitation team from Dr. Reddy’s and GC consultants. Learning of each phase implementation is used in subsequent phase implementation.
Kendall, G. (2004). Executive sufficiency for a critical chain implementation, executive guide to project portfolio management. TOCICO International Conference: 2nd Annual Worldwide Gathering of TOC Professionals, Miami, FL, Goldratt Marketing Group.
The objectives of this presentation are to: Have participants understand why multi-project critical chain implementations fail and the project portfolio management and executive governance model that is necessary for a lasting, high impact, organization-wide critical chain implementation. Benefits to attendees include: 1. Learning how to recognize the red flags related to executive behavior within multi-project critical chain implementations. 2. Exposure to the 8 step project portfolio management process that sets the stage for successful critical chain / multi-project governance. 3. Understanding how to use an assessment on the front-end of a multi-project critical chain implementation to build executive understanding and buy-in.
Kettell, K. (2004). CCPM success factors at Naval Sea Systems. TOCICO International Conference: 2nd Annual Worldwide Gathering of TOC Professionals, Miami, FL, Goldratt Marketing Group.
This presentation shows how critical chain project management (CCPM) has provided a powerful yet simple process for improving the FMB project management team’s awareness and knowledge of ongoing work activity status and the ability to adapt and capitalize on short-fused schedule changes. Benefits to attendees include: 1. Understand the value of implementation for a highly complex multi-project environment; 2. Understand performance measures used to enhance throughput in a not-for-profit, government agency; 3. Understand the five key success factors for their own implementations.
Khatib, H. (2013). Should the critical chain move while the project is in execution? TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
We have been working with various clients on implementing critical chain project management (CCPM) for project planning and execution. In the planning phase of a project, a critical chain (CC) is set using the longest chain of linked tasks and resources. Typically, in execution, the CC is designed to stay where it was initially planned and % Chain Complete is always measured based on that CC. However, in many cases, a delay on a feeding chain can cause more project buffer consumption than that of the CC. In these cases, to create more accurate measures driving priorities to the right tasks, it is required to move the CC to the current, longer than the original CC, feeding chain tasks.
Kishira, Y. and D. Updegrove (2007). Creating a public works revolution in Japan. TOCICO International Conference: 5th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NV, Goldratt Marketing Group.
This presentation discusses the Japanese business culture, kaizen (improvement), TOC in Japan (2003), Japan’s public works construction dilemma (moving from spiraling costs, unhappy public, and late projects costs lives), a prerequisite tree for changing the construction industry (moving to customers believe that critical chain (CC) is worth trying to more and more customers adopt critical chain). The first critical chain implementation and its results and the one-day response project for government are discussed. The CC is a win-win-win for citizens, public works office and contractors. TOC and Wa (harmony) are discussed.
Knight, A. (2012). TOC in healthcare: Broadening the shoulders of our giant. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, IL, Theory of Constraints International Certification Organization.
Healthcare is accelerating towards a crisis of affordability. The likely outcome is deterioration in both access and quality of care. It is time to make explicit how and why a TOC-focused approach is the only option. This presentation establishes: 1. The conceptual similarities and differences between what was so dramatically improved by TOC production and project management approaches and the impact of these approaches on the healthcare environment. 2. The broader conditions under which TOC has been successful in healthcare, its applications and the boundaries of its applicability. 3. New knowledge to accelerate the impact of TOC in healthcare around the world is the core of the presentation.
Masuda, K., et al. (2013). Holistic management in a pharmaceutical company. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
It takes about 10-15 years to launch the new drug medicines after pharmaceutical companies discover the promising compounds. This means that pharmaceutical companies tend to accept the dilemma of not releasing new products immediately even though there are promising active agents at hand. Pharmaceutical companies also tend to have a large stock of inventory because the shortage of products supporting good health is not permitted. Senju Pharmaceutical Co., Ltd. (based in Japan) is faced with the same problems as other drug companies. Since 2012, we have started a holistic management with TOC to pursue 'harmony' and to build a 'well-muscled' operation. Through the company-wide TOC implementation, timelines of R&D projects were shortened aggressively, and delays of the schedule were recovered in close coordination and cooperation. The stocks of raw materials and products were kept at a low level by making win-win relationships with partners. Work itself became a learning environment and is helping our staff grow rapidly. The staff within and outside the company has begun to perform in harmony with each other. Although our challenge has just begun, we would like to share small successes which would lead to a large change in the pharmaceutical industry by this holistic approach.
Mays, G. and G. Adams (2007). A case study: The change and challenge in engine maintenance. TOCICO International Conference: 5th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NV, Goldratt Marketing Group.
This presentation describes a case study of the change and challenge in engine maintenance. The history of the airline industry environment with deregulation and high oil prices is discussed. The characteristics of Delta Air Lines and the Maintenance / Repair / Overhaul facility (MRO, Technical Operations) are provided. Customer revenue growth has increased significantly as insourcing growth has been 440% per year for five years. This complex maintenance operation has been simplified using TOC, drum buffer rope (DBR) and Continuous Improvement (CI). The flow and challenges faced and throughput prior to TOC are discussed. A causal loop diagram of the flows and stocks is provided. A macro view of engine disassembly piece part repair and engine assembly is discussed. Critical chain (CC) is used in disassembly and assembly while DBR is used in piece part repair. A summary of changes, lessons learned, and results are provided. A history of continuous improvement included CI teams, high performance workplace, six sigma, lean enterprise, and theory of constraints. TOC concepts have provided a clear understanding of where to apply six sigma and lean methods to achieve true bottom line results. Changes to metrics focus on alignment operations with business goals.
Mohanty, S. (2007). Plant shutdown in record time at Tata Metaliks. TOCICO International Conference: 5th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NV, Goldratt Marketing Group.
This presentation describes a plant shutdown using critical chain project management (CCPM). Tata Metaliks is the largest producer of pig iron in the world, mini-blast furnaces are used to produce pig iron, very low throughput (high variable expenses) and business performance are sensitive to the health of the furnace. Background of the shutdown includes: blast furnace shutdown is done once every 5-7 years, and usually involves relining the shell, overhauling …, duration varies 1.5 to 3 months, a day down is very high throughput, shutdown is 24 X 7, and preparations start 6-12 months before shutdown. Challenges of the environment, associated conflicts, delays and associated actions, issues with contractors, etc. are caused by the core issues of incomplete preparedness, milestone monitoring, and too many work-fronts in parallel during the shutdown period. Using critical chain (CC) the shutdown was completed in a record 23 days versus the plan of 28 days (typically shutdowns varied from 45 to 60 days), 87% of initial budget; extra scope was 25% and peak production of the facility was reached in 10 days. The paradigm changes are described.
Mohanty, S. (2012). Managing new product development projects in auto components industry. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
The presentation discusses the core problem and direction of the solution for the new product development of tier 1 / tier 2 suppliers in automotive industries whose primary job is to develop and supply new components for the original equipment manufacturers (OEMs). The goal of the presentation is to derive the core problem of the tier 1 / tier 2 suppliers for their new product development team and establish a direction of solution, which can help them to improve their delivery performance of new products at a faster rate. The new product development management of the tier 1 / tier 2 suppliers is a challenging environment where critical chain project management (CCPM) rules cannot be directly implemented on the projects. The definition of what is a project holds key to the solution. The logical entity of the projects on which the role of work in process (WIP), full kitting, planning and execution can be implemented is defined as independent work packets. Once the work packets are defined and CCPM rules are applied on these project entities, the output of the new product development (NPD) team increases substantially, leading to a drastic reduction in lead times and timely delivery of the overall projects. The presentation establishes that the current problems faced by the NPD team of tier 1 and tier 2 suppliers are related to the ways OEMs are currently managing their development projects. The interaction between the single multi-project environment of the OEMs and the multi-project environment of the suppliers, as well as ineffective concurrent engineering model followed by the OEMs play havoc on the suppliers are discussed. They are forced to live in a situation with a huge number of unfinished projects, rampant changes of priorities, unexpected iterations and heavy reworks in their system. The direction of the solution is to break each of the NPD projects into logically independent work packets (a portion of the whole project which can be started and finished without any interruptions from the OEMs) and to implement the CCPM rules, e.g., low WIP, full-kit, planning and execution on those work packets to increase its output. A case study is also presented where the output increased by 8 times within 3 years of implementation.
Mordoch, A. (2013). The journey starts with chaos: The organizational maturity model for projects management environments. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
Three learning objectives: a) How to set up the objectives for a critical chain (CC) implementation in a project management (PM) environment? b) PM environment is a complicated one. Focusing on the time dimension is extremely important but this is just the beginning for an ambitious implementation. There is much more than just time. c) The TOC body of knowledge could and should be pushed beyond its current limitations. Three questions are answered: a) How can one estimate the maturity stage of his organization? b) How can one know what is the entropy measure in his organization and, as a result, what are the implementation efforts needed to be invested? c) The model assumes a specific sequence of stages. How important is it to follow the suggested sequence? Can it be that for a specific organization there is a need for a different sequence?
Muller, W. (2013). Agile + critical chain = Agile enterprise. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
Agile project management gets broad propagation. Its extreme lightweight steering has advantages – but are local optimizations and do not use the full potential. On the other hand critical chain is a full-blown project steering – but sometimes e.g. in sub-projects agile methods can be absolutely sufficient. So critical chain doesn’t use the benefits of the agile methods. The presentation shows a two-phase approach to first make the agile methods compatible to critical chain and in the second step to improve the agile methods itself. All this is based on the thinking processes (TP) of the TOC and ideas based on drum-buffer-rope. The approach is validated in real projects and real teams’ part of a worldwide active internet provider. As a result, agile methods can be used to steer sub-projects more lightweight. With small adjustments it’s possible to get some buffer at the end to initially control the WIP. With the buffer at the end you can use progress-buffer-consumption monitoring. That makes agile compatible with CCPM. You do not need protection of sprints any more, therefore continuous flow is possible. The focus moves to reduce the inventory of open tasks. Maximum throughput and minimum lead time are now realistic and reachable.
Nargotra, V. and H. Chawla (2007). Adapting CCMP to the Indian context. TOCICO International Conference: 5th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NV, Goldratt Marketing Group.
This presentation describes the significant growth in India’s economy highlighting the 10% growth in gross domestic product and the manufacturing sector. The India status of project management is discussed with respect to due date performance (99% of projects late), cost overruns (expected cost overrun of 20%) and scope. The large number of very large projects is discussed as is the lack of managerial experience in project planning and execution. A case study of a client is discussed where the company is building a Greenfield paper mill (estimated cost $20 million) and lessons learned from this project are presented. A paper machine project flow diagram, project management competence, the opportunity for critical chain, challenges faced in Indian context (cash flow management, for example) unstructured processes, project realities, managing supplier and contractor relationships, use of templates (task update, issue resolution, cash flow, vender management, procurement) are described.
Newbold, R. C. (2009). Making critical chain stick. TOCICO International Conference: 7th Annual Worldwide Gathering of TOC Professionals, Tokyo, JP, Goldratt Marketing Group.
Change efforts are sales efforts, and both can be painful and slow. Even the best technologies, like critical chain, frequently fail to take root or decline after initial successes. Rob shows why common approaches to change omit crucial requirements for long-term success. He explains the cycle of results model and gives practical examples to show how it has been applied to both sell and maintain critical chain implementations in some of the largest companies in the world.
Newbold, R. C. (2013). Get rid of feeding buffers. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
Feeding buffers have been a standard and little-questioned part of the critical chain (CC) approach since the beginning. However, their application in practice can be difficult and confusing. Feeding buffers can create holes in the critical chain; their sizing and analysis is often problematic; and the target for feeding buffer protection – the critical chain – can change in time and makeup, rendering the original feeding buffers irrelevant. Some CC implementers have come up with complicated ways of getting around these problems, adding to the difficulty of the CC approach; others remove feeding buffers entirely, thus removing needed protection. The author argues that by estimating merge bias and determining task gating without using explicit feeding buffers, the buffers themselves can then be eliminated. The resulting schedules are more intuitive, more robust, and easier to analyze than traditional CC schedules.
Oltman, T. (2011). Breaking the vicious cycle to achieve bottom line results. TOCICO International Conference: 9th Annual Worldwide Gathering of TOC Professionals, Palisades, NY, Goldratt Marketing Group.
This presentation discusses the pressures we face as we try to execute projects and how our reactions to these pressures lead us into the vicious cycle. The vicious cycle is a cause-and-effect loop where negative effects cause more negative effects; the effects build on each other creating a downward spiral of ineffectiveness and limited productivity and undesirable outcomes.
Price, J. (2012). CCPM maturity model. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
There have been many critical chain project management (CCPM) implementations within The Boeing Company and several have received company-wide acceptance and encouragement for the results achieved thus far. Despite great initial results, sustained throughput improvements have been modest and there is still a substantial amount of bad behaviors occurring. It is apparent that The Boeing Company needs a method to maintain and improve their CCPM maturity. The following document establishes a capability maturity model, Capability Maturity Model®, Carnegie Mellon) representation of a CCPM project execution management process. Additionally, this presentation provides an analysis to support a capability maturity assessment of a Customer Support Engineering organization. The analysis represents 24 months of project data produced by teams within the organization which are dedicated to using the outlined project execution management process.
Rafai, S. and J. Low (2009). Techniques when task safeties are underestimated. 1st Annual North American Regional TOCICO Conference, Tacoma, WA, Goldratt Marketing Group.
A major component of critical chain project management (CCPM) is pooling and consolidating task safety estimates that include more cushion than is really needed. What if some task time estimates are much less than they should be, not more? How then can we make CCPM work?
Reary, B. (2009). Behavior unchanged: How regional conflicts might be avoided. 1st Annual North American Regional TOCICO Conference, Tacoma, WA, Goldratt Marketing Group.
In the TOC Project Management Insights (2003), Eli Goldratt points out that critical chain helps us to better manage projects, but it does not help us design a project network or prioritize projects. Similarly, in regional conflicts, we may lose sight of the big picture in our haste to achieve success in execution (managing the project). But the safety assumption prevents us from pursuing a win-win solution in the beginning when the opportunities for conflict resolution can be greatest.
Richards, R. and H. Robinson (2010). Short-duration-task critical chain project management. TOCICO International Conference: 8th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
This presentation provides an introduction to the issues and solutions of short-duration-task critical chain project management (CCPM). Short-duration-task CCPM deals with projects in which a significant portion of the activities has durations of minutes or hours, and where status updates are needed on sub-day intervals. In addition, how to deal with the injection of new tasks or whole projects is addressed. Application areas include certain healthcare and manufacturing applications.
Ricketts, J. (2010). Reaching the goal. TOCICO International Conference: 8th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
Services account for over two-thirds of economic activity today. Reaching the Goal adapts TOC applications for use in professional, scientific, and technical services (PSTS). This presentation explains why services have unique requirements and how drum-buffer-rope, replenishment, critical chain, and throughput accounting have been adapted to work in services enterprises providing highly customized services.
Robinson, T. (2009). Implementation of CCPM at Nationale Nederlanden - Group Life. First European TOCICO Regional Conference, Amsterdam, The Netherlands, Goldratt Marketing Group.
The theory of constraints critical chain project management (CCPM) as a method to improve and to accelerate project delivery can't be seen in isolation. This method only will succeed when senior management endorses the approach and when the individual employee understands the behavioral consequences. At senior management level a sound governance process is a precondition for a successful outcome of implementing CCPM. After all, priority setting is key and that must start at the top level of the organization. The people who work day-to-day in a CCPM environment might have to change their attitude and their usual practices. New values and goals must be introduced and this change process needs to be guided. This presentation addresses two topics that are preconditions for implementing CCPM: governance and the individual change process. The story is based on a CCPM implementation in a multi-project information technology (IT) environment.
Ronen, B. (2007). Value creation approach to project management: Doing much more with much less. TOCICO International Conference: 5th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NV, Goldratt Marketing Group.
This presentation discusses the value creation to project management beyond critical chain. Question 1: If we reduce time to market by 10% using existing resources this will increase the value of the firm by approximately 100% (assuming we are facing a resource constraint and the development is the constraint). What is the impact? Question 2: If we eliminate 10% of the features, we add almost 100% the value of the company. We assume the development resource is the constraint. What percent of the development is wasted? Over 70% of development is wasted. We have a garbage plant of 70% where department efforts do not add value to the company. The goal of the company is to increase its shareholders’ value as measured by discounted cash flow. A value driver (financial and managerial) is any performance variable that can significantly increase shareholders’ value. The six value drivers for project management are the project goal, strategic gating, 25 / 25 process, tactical gating, complexity reduction, and complete kit concept.
Rucinskaite, M. (2012). Implementing CCPM solution in Guaranty Fund of Department of Enterprise Bankruptcy Management. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
The Guaranty Fund at the Department of Enterprise Bankruptcy Management under the Lithuanian Ministry of Economy was created in order to ensure payments of delayed or unpaid salaries to the workers of bankrupt companies. Therefore this Fund plays a very important social role – quite often after a person loses his job. The Fund pays money which the company owed to this person. So it is very important to ensure the application processing time to be as fast as possible. At the beginning of 2009 Guaranty Fund faced some real challenges including a backlog of old applications for funds and long processing times; a drastic increase in bankruptcies and new applications (more than double); and a reduction of governmental spending (not possible to increase in staff).
Scheinkopf, L. (August 23rd, 2012). Linear high touch time: A new TOC application. TOCICO Webinar Series. TOCICO, Theory of Constraints International Certification Organization.
When companies manage their production according to drum-buffer-rope (DBR), and their projects according to critical chain project management (CCPM), they improve performance –they improve the flow of the goods or services they provide, and in the process become much better at meeting the commitments they make to their clients, and significantly increase their productivity. However, there are many companies that have operations that are considered 'production,' but have some characteristics that could be characterized as 'more projects than production' – for example, instead of touch time which is negligible relative to the lead time, their touch time comprises 20% or more of the lead time. Or, they have operations that are considered 'projects', but have some characteristics that could be characterized as 'more production than projects' – for example, instead of a highly complex 'A' type flow structure to build what they sell, they have a much simpler, more linear type of process.
Schragenheim, A., et al. (2008). The software ramp. TOCICO International Conference: 6th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
This presentation presents the learnings and conclusions discovered during the TOC software implementation involved in Viable Vision (VV) and non-Viable Vision projects. The software, Inherent Simplicity, has had over sixty TOC implementations. There is at least one paradigm shift involved in each project. The presentation discusses the different players who need to buy-in for a successful project; shows how software can speed results significantly; and describes common pitfalls in TOC project and software implementations. The buy-in of the owner, the information technology (IT) department and the user is different for each person but getting each party's buy-in is essential for project success. Examples are provided of pitfalls, benefits, common myths, etc.
Schragenheim, E. (2009). New technology and new product value assessment. First European TOCICO Regional Conference, Amsterdam, The Netherlands, Goldratt Marketing Group.
Multi-project environments pose three large problem categories: 1. How to choose the next project? 2. How to decide what features should be included in a project? 3. How to finish the project on time, on budget and within specifications? TOC has developed critical chain project management (CCPM) for the third category. There is currently no robust process to deal with the other two categories. The topic at hand addresses an issue that is relevant to the first two categories when the suggested project is for developing a new technology or developing a product / service that does not currently exist. Back in 2000, when engaged in writing Necessary But Not Sufficient, Dr. Eli Goldratt developed the six questions for evaluating new technology. This presentation discusses those questions and their ramifications for both development and marketing. Several leading examples are used, notably from the reality of information technology (IT) dealing with potential users on new requirements for the software. Two key insights: 1. For a new technology / product / service to have value it must eliminate (or significantly reduce) an existing barrier / obstacle. 2. When people are confronted with a barrier, and there is a real need to overcome it, they find ways to bypass the barrier. That way is characterized by a process and possibly also a set of policies and behaviors. The economic value of the new technology, meaning how much would people be prepared to pay for the new product, depends on the value of being able to ignore the bypasses as well as the worth of achieving things that the bypass cannot achieve. Examples and key insights are provided.
Schragenheim, E. (March 2nd, 2013). Discussing the boundaries of CCPM. TOCICO Webinar Series. TOCICO, Theory of Constraints International Certification Organization.
The boundaries of critical chain project management include: * The key assumptions behind critical chain project management (CCPM) . * How planning and execution in the TOC Way fits the CCPM methodology? * What type of projects require changes to the CCPM methodology? * The difficult issue of capacity management in multi-projects. * Performance measurements in projects.
Schragenheim, E., moderator (2012). Panel discussion: Standing on the shoulders of giants process. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
This presentation discusses the results of the four facilitated sessions to identify problems, inconsistencies, or missing components in a given field using the standing on the shoulders of giants (SOSG) process. The sessions were supply chain, critical chain, distribution, and thinking processes.
Smits, P. (2009). Using critical chain project management to drive innovation in a general hospital. First European TOCICO Regional Conference, Amsterdam, The Netherlands, Goldratt Marketing Group.
This presentation is about managing a 600-bed general hospital in The Netherlands on a day-to-day basis which is enough of a challenge as is. On top, in early 2008, the Maasstad Ziekenhuis hospital (www.maasstadziekenhuis.nl), turned out to have no less than 180 active projects! Active may be a bit of an overstatement, since some projects were well planned and managed; however, quite a few were unclear and often struggling or even dormant. In fact, we were facing all the well-known undesirable effects of project management: lead times of projects were long (often > 1 year); due date performance was poor (if a clear due date was defined at all); and task and project priorities were unclear. Having viewed Eli Goldratt’s webcast on critical chain project management (CCPM), Maasstad Ziekenhuis – in cooperation with TOC Resultants (www.toc-resultants.com) decided to implement project management basics and CCPM on top of that. Today, the hospital board is actively involved in selecting, planning and monitoring the execution of supra-departmental projects with the following results: the number of concurrent projects was reduced by 40%; average project lead time was reduced from > 1 year to < 8 months; and > 90 % of projects are finished on time, within scope and budget. Currently, our focus is on securing the CCPM knowledge and processes in our organization and rolling CCPM out to intra-departmental projects. This initiative should be finished by the end of 2009.
Stemberger, M. (2009). Against the odds; TOC in a private equity world. First European TOCICO Regional Conference, Amsterdam, The Netherlands, Goldratt Marketing Group.
This presentation is about how TOC enabled us to succeed in acquiring and integrating an Ikea first-tier supplier’s operations (in spite of difficult economic times). The company was heading fast towards a cliff... due date performance (DDP) was appalling, working capital (WC) sky high, warehouses filled with all the wrong materials and components, customers were looking for alternative suppliers (to us), batch sizes were large, cash flow poor, in-fighting and turf protection, nobody (within the company) knew the company's overall performance... The results included: DDP increased; customer satisfaction increased (we managed to retain the biggest customer, Ikea); existing customers awarded us with more business (also Ikea); hidden capacities were revealed: availability (of machine capacity, warehouse storage and manpower) increased; internal lead times decreased; batch sizes decreased, set-ups increased (even though everyone thought we were mad and wasting capacity); inventory decreased; WC was no longer a problem, the warehouse was under control; precious cash flow was freed (where none was available anywhere!); and ROI increased. We developed and implemented a four-stage project acquisition approach using critical chain project management (CCPM) principles.
Stenger, F. and F. Leponce (2013). IEE CCPM implementation. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
Since the 2008 crisis the automotive industry increases their pressure on costs in development and production. IEE could win additional projects as some competitors left the market during the crisis. To contain the cost IEE decided to use CCPM to manage the increased quantity of customer projects with the current development staff. From statistical evaluations IEE learned that the main problem in project management was not being in time. The strict regulations for program management in the automotive industry ensured that in all cases a product was available for Start of Production (SOP). To ensure that the SOP is always kept several risks must be taken. Not all development tasks are finished in time. Especially several product validation tests were finished after SOP. This could lead to late changes or even changes after SOP of the car. CCPM as well as TOC in production is handled as part of a full Viable Vision implementation at IEE.
Taylor, B. (2011). Construtora Veloso - Brazil prototyping an application of the unified field theory of management. TOCICO International Conference: 9th Annual Worldwide Gathering of TOC Professionals, Palisades, NY, Goldratt Marketing Group.
The construction boom in Brazil is creating raw materials, labor and management shortages. These shortages are thwarting the Brazilian government’s efforts to apply billions of reais available in government funding available in the CAIXA ECONÓMICA FEDERAL in providing subsidized housing to millions of families. By creating a total TOC construction company, Construrora Veloso in Curitiba, Brazil is able to use critical chain and other TOC tools to rapidly increase the capability to expand subsidized housing by delivering low-cost homes.
Ujigawa, K. (2012). A new buffer management approach to CCPM. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
Critical chain project management (CCPM) can help more people and can be available in the broader world. Buffer management (BM) is better able to synchronize with our intuition, even in software development. In the new software development environment (NSD), the new buffer management approach: is more likely to realize and share the sense of speed for each and every project among the people involved; will seamlessly escort the people to the conventional CCPM; and can be smoothly shifted to the conventional CCPM according to the product lifecycle.
Ujigawa, K. (2013). Velocity-based buffer management (VBBM): A new buffer management practice to maximize the flow of the system in complex (as defined by the Cynefin Framework) environments. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
Critical chain project management (CCPM) has provided significant contributions to the success of projects in various project environments. However, there are still large gaps between the current reality and our ambition in 'complex' environments such as software development for new products and major upgrades. Therefore, from the standing on the shoulders of giants (SOSG) process, a new buffer management practice, 'Velocity-based buffer management' (VBBM), was developed to fill in the gaps. Through this presentation, my experimental knowledge for performing VBBM are shared with you. If you find anything you agree with the following, I encourage you to participate in this presentation, and please help to improve this knowledge together. Let’s get on the shoulders of CCPM! 1. You believe in the power of CCPM and are interested in agile method as well. 2. In your environment, you can determine 'what should be done' relatively easily. However, estimating 'how long' is extremely difficult. 3. Sometimes, your / your client’s projects become 'foggy', when they are brand new or major upgrade projects. 4. You have some projects that are out of the pipeline. In other words, there are some projects that are managed with other measurement, instead of buffer status. 5. You want to manage your projects, more intuitively based on CCPM. 6. You believe that there is more room, for maximizing the flow of your system yet.
Updegrove, D. (2013). Unlocking the secrets of critical chain success and sustainability. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
It is empirically clear that many critical chain (and other TOC) implementations fail either from the beginning or after a period of time as short as one or two years. This includes some implementations that were initially extremely effective, published successes. The purpose of this workshop is to provide insights into how to avoid this outcome and greatly enhance the chances of not only success, but long-term sustainability with ever-increasing results. Areas of focus include crucial preparatory steps that are not well documented in the existing literature, the hidden power of the projects company S&T tree (even for functional implementations), and the way to spread true cultural change through the implementing organization. Finally, three simple questions are proposed for each implementation step that create a world of difference for the prospects of phenomenal success and sustainability of the critical chain implementation. For those who might now specialize in critical chain, much of the material is also applicable to all TOC implementations and strategy and tactics (S&T) trees.
Walsh, D. P. (2013). Critical chain thinking: Adding the 3rd dimension upgrade workshop. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
The development of project management thinking and new techniques has at times been slow and deliberate. Perhaps, this is in part, due to the fatalistic feeling that the very nature of project environments contributes to the willingness to accept the status quo. The pyramids and sphinx’s were certainly projects yet how they were built remains as mysterious as the artifacts themselves. Millenniums would go by before Henry Gantt developed the Gantt technique in the 1920’s. In the late 1930’s operations research efforts contributed significantly to better understanding the relationship between task dependencies and the impact of constrained resources that led to the concept of critical path. Then in the late 1950’s The US Navy in collaboration with Booz & Allen developed the Program Evaluation, & Review Technique (PERT). Starting in the 1960’s the emphasis shifted to taking advantage of computers to improve project management. There were many contributors, such as John Fondhal at Stanford University, developing the algorithms that were to become the foundation for the project management software tools that are prevalent today. These tools offered new features to plan, schedule and execute, however, the thinking captured in the algorithms for the most part were not new. It wasn’t until 1997 when Eliyahu Goldratt published the Critical Chain introducing the critical chain technique as an alternative to the critical path did we have the next major change in project management thinking.
Walsh, D. P. and D. Updegrove (2012). Point-counter point discussion - Feeding buffer - Yes or no. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
The discussion is on feeding buffers in critical chain (CC). Fever charts for project buffers are useful though there is not much emphasis on feeding buffers today. We don't seem to use the information derived from them. It depends on the environment: in maintenance, repair and overhaul (MRO) it is like manufacturing so we ignore the feeding buffer. In research and development (R&D) we watch the feeding buffer closely. Feeding buffers set priorities for tasks and insure full kitting is available when needed on the critical chain.
Watt, A. (2011). A new breakthrough tool for reducing changes in projects by 50%. TOCICO International Conference: 9th Annual Worldwide Gathering of TOC Professionals, Palisades, NY, Goldratt Marketing Group.
(Goal)Share is a new tool for reducing changes in projects by 50%. Three phases of projects are: choosing projects, project content, and execution. Critical chain project management (CCPM) only deals with execution- the furthest phase from the core problem. The process to reducing project changes is: define problem (UDE: changes); direction of solution (using the strategy and tactics (S&T) tree to capture project content); development of the tool with three very different businesses; 5 simple questions & one easy-to-use tool; and how to…and pitfalls to avoid.
Woeppel, M. (2009). Projects in less time. 1st Annual North American Regional TOCICO Conference, Tacoma, WA, Goldratt Marketing Group.
If your company is like many, you continue to experience failure delivering projects to schedule, budget, and scope. Critical chain project management (CCPM) enables you to deliver projects in less time, all the time with an improved quality of life for the project team. This presentation describes the core concepts of the CCPM method as it applies to three main areas of projects: execution, planning and project portfolio management.
Yadav, B. (2012). What do we mean by 'everything else remaining equal'? TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification OrganizationBeginning: Consider a company which has two lines of business - one is a made-to-stock (MTS) and the other is a projects environment. Question: is there a sufficient market for these products? The answer was YES. This was further verified by the data available. Solution: Implement solution for make to availability (MTA) and critical chain project management (CCPM) for the respective businesses. Journey: Once the implementation started and progressed, which happened at a fairly good speed, quite a few facts started emerging – these were coming up as the focus was on ‘flow’. These were essentially assumptions which, if not checked and validated in favor of the implementation, could completely derail the implementation. These are: 1. Availability of good technical resources within (and outside) the organization leading to difficulty of hiring specialized technical skilled resource. 2. Alignment of person to role (example: a good technical resource was doing the job of purchasing!). 3. Quality issues due to technical process adherence. The rejections due to these quality issues led to – high re-work, an increase in customer complaints, loss of sales, loss of production capacity at the constraint, etc. 4. Company’s product technology is outdated compared to competition. 5. Company’s vendor base is small and scattered and largely opportunistic (resorting to diverting capacity for more profitable orders). 6. Customer’s payment policies – little advance and the rest of the payment on credit (sometimes 6-9 months after dispatch!) leading to serious cash flow issues. In addition, 10% of the payment is made 365 days after installation! 7. The industry faces seasonality – orders were almost finalized during Nov-Dec and all deliveries were expected by March. This created the famous feast and famine syndrome in all its glory. So while the material and information flow issues were resolved, the company’s excess capacity was revealed (to the extent of nearly 30%). This translated into more order execution capability. However, due to the commercial policies and receivables of past projects, the company was not able to generate enough cash. This was compounded with the seasonality syndrome. While effective pipelining of orders helped, but the sheer volume of business in the second half of the year stretched the company’s borrowing limits. Result: The implementation of the entire solution was done keeping all the strategy and tactics (S&T) principles in mind. The operational improvements achieved did not result in expected sales growth. On exploring the causes it seemed that they were essentially pertaining to the key assumptions under S&T tree 2.1 Strategy A decisive competitive edge is gained by the market knowing that the company’s availability is remarkably high, when all other parameters remain the same.