MASARYK UNIVERSITY
FACULTY OF ECONOMICS AND ADMINISTRATION
ESF:MPH_AOMA OPERATIONS MANAGEMENT
SEMINAR WORK
UTILIZATION (APPLICATION) OF THE THEORY
OF CONSTRAINTS (TOC) AND CRITICAL CHAIN
(CC) AS A PROJECT MANAGEMENT
METHODOLOGY BASED ON TOC PRINCIPLES.
DARIA BOROVKO
Brno
2011
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Content
Content ....................................................................................................................................... 2
1. How would you apply CC and TOC tools for the planning of your own dissertation (writing
the dissertation is in fact a project)? Can you name the project risks? Do you know how to
diminish (reduce) these risk factors (to avoid obstacles)? ......................................................... 3
2. How would you persuade Your new (in the future, after you start to work) colleagues, that
CC project management methodology might be suitable for the project management? Can
you define basic CC benefits?.................................................................................................... 8
3. What kind of effects do you expect by possible using buffers (time buffers) during the
working out of your thesis (dissertation)? Can you explain what is the buffer?........................ 9
4. Can you specify by use of Thinking Process Tools. Your personal bottleneck as far as
studying processes or writing a work or working on assigned school tasks (by other tutors) is
concerned? Try to use CRT – Current Reality Tree and create a list of Undesirable Effects
(named by You)........................................................................................................................ 11
5. State clearly your suggestions to improve your dissertation writing (project management
question) and related benefits................................................................................................... 12
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1. How would you apply CC and TOC tools for the planning of your own
dissertation (writing the dissertation is in fact a project)? Can you name
the project risks? Do you know how to diminish (reduce) these risk
factors (to avoid obstacles)?
Before starting applying Theory of Constraints and Critical Chain Management methods to
planning of my diploma I would like accumulate to some basic information about these
methods that will help me in practice.
First of all Theory of Constraints where introduced by Eliyahu M. Goldratt in his book The
Goal in 1984. The theory is based on idiom "A chain is no stronger than its weakest link". It
means that the rate of goal achievement in organizations and projects is limited at least by one
constraint in their process.
This constraint is usually called Bottleneck. Bottleneck is an element in system that is more
limited than other elements. Therefore as the any process depends on the cooperation of
independent elements linked together, this weak point determines the strength of the system
and achievement of the process goal.
To increase system efficiency means to deal with problem of bottlenecks. That applies
consistent focus on bottleneck and increasing flow through it. That can be made with finding
of different links between system elements and changing workload as well.
The application of the Theory of Constraints takes two preparatory and five main steps:
Preparatory steps:
1. Identify the Goal of the System/Organization
2. Establish a way to measure progress to Goal
Main steps:
1. Identify the system’s constraint.
2. Exploit the system’s constraint.
3. Subordinate everything else to the above decision.
4. Elevate the system’s constraint.
5. If a constraint is broken (that is, relieved or improved), go back to Step 1.
On the other hand Critical Chain Management in simple view is application of the Theory of
Constraints to a project. It is method of planning and managing projects with stress on
resourcing project activities. The aim of Critical Chain Management is optimize project
duration taking into account individual task structural and resource dependency, uncertainty
risk and possible variations.
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Planning of diploma writing using Theory of Constraints method
For planning my diploma writing for Master’s degree I will use basic steps of Theory of
Constraints.
Preparatory steps:
1. Identify the Goal of the diploma writing
My goal is to write a diploma of high quality and within time frame.
2. Establish a way to measure progress to Goal
For measuring goal the following characteristics can be used:
o Quality of work. Measured by grade I will get.
o Timeliness. Ability to finish diploma on time.
o Intensity of work. Workload on week and month basis.
o Smoothness of work process. Variation of workload in different time and stages of
writing diploma.
Main steps:
1. Identify the process constraint.
For identifying process constraint first I need to make approximate work plan for writing
diploma.
The work plan includes the following activities:
1. Field of interest identification
2. Finding leader for diploma
3. Idea identification within field of interest
4. Identifying approximate content of diploma
5. Finding sources. Theory part
6. Gathering information. Theory part
7. Writing theory part
8. Finding sources. Practice part
9. Gathering information. Practice part
10. Writing practice part
11. Writing Introduction and conclusion
12. Preparing list of sources
13. Preparing supplements
14. Revision
While analyzing presented activities the following constraints can be found:
7. Writing theory part
10. Writing practice part
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These activities are more possible to cause delay. It’s hard to predict duration of time needed
for performing them and there are many risks and external factors that can influence their
fulfillment.
2, 3. Suggestions for exploiting and subordinating process constrain of diploma writing are
the following:
o Ensure that resources at the constraint are available and used for maximum and
efficiently (in diploma writing example the resources are time, literature, other needed
information)
o Use buffers after bottlenecks to protect process from breakdown and lengthening (time
reserves will be used in diploma writing plan)
4. To elevate constraint I can:
o Increase constraints capacity and efficiency (means work hard and don’t digress on
other things when performing constraint activities. It’s not possible to increase
capacity of workforce due to fact that I’m the only one who can write it)
Critical Chain Management
For constructing Critical Path for diploma project firstly I need to determine technology that
will include dependence of tasks and resources needed for task implementation.
Task Resources Time resources Prerequisites
1. Field of interest identification – 1 week/8hours –
2.Finding leader for diploma – 2 weeks/8hours 1
3.Idea identification within field of
interest
With leader 1 week/8hours 1,2
4.Identifying approximate content
of diploma
With leader 2 weeks/8hours 3
5. Finding sources. Theory part Library, internet 2 weeks/8hours 4
6. Processing information. Theory
part
Books, internet 4 weeks/8hours 5
7. Writing theory part Gathered
information.
Books, Internet
6 weeks/8hours 50% of 6
done
8. Finding sources. Practice part Company, internet 4 weeks/8hours 4,6
9. Processing information. Practice
part
Company, internet 4 weeks/8hours 8
10. Writing practice part Gathered information 8 weeks/8hours 50% of 6
done, not in
parallel with 7
11. Writing Introduction and
conclusion
– 2 weeks/8hours 7, 10
12.Preparing list of sources Gathered information 1 week/8hours 7, 10
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13. Preparing supplements Supplements 1 week/8hours 7, 10
14. Revision Diploma 1 week/8hours 10, 11, 12, 13
Total 39 weeks/8hours
Figure 1. Schedule of tasks
The Gantt chart was constructed on basis of critical path method is presented in Figure 2.
As working day consists only of 8 hours, Gantt chart in figure 2 should be converted
according to time capacity. The adapted Gantt chart of diploma writing is presented in Figure
3.
Possible risks
According to ISO 31000 (2009) /ISO Guide 73 risk is the ‘effect of uncertainty on
objectives’. In another words it’s a possibility that result will not be equal.
In diploma writing process the following risks can occur:
o Employment risk – will make time resources less
o Availability of sources risk – if sources will not be available at library, in company
o Possibility that diploma files will be lost or duplicated wrong
The risks can be diminished in the following ways:
o Time buffers
o Beforehand planning meetings’ schedule and issues to be discussed
o Checking and revising diploma files while writing
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process stage/time 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
1. Field of interest identification
2. Finding leader for diploma
3 .Idea identification within field of interest
4 .Identifying approximate content of diploma
5. Finding sources. Theory part
6. Processing information. Theory part
7. Writing theory part
8. Finding sources. Practice part
9. Processing information. Practice part
10. Writing practice part
11. Writing Introduction and conclusion
12. Preparing list of sources
13. Preparing supplements
14. Revision
Figure 2. Gantt chart
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39
1. 8
2. 8 8
3. 8
4. 8 8
5. 8 8
6. 8 8 8 4 4
7. 4 4 8 4 4 4 4 4 4 8
8. 8 4 4 4 4 4 4
9. 8 8 8 4 4
10. 4 4 8 8 8 8 8 8 8
11. 8 8
12. 4 4
13. 4 4
14. 8
Figure 3. Adapted Gantt Chart
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2. How would you persuade Your new (in the future, after you start to
work) colleagues, that CC project management methodology might be
suitable for the project management? Can you define basic CC benefits?
There are numerous benefits of implementing of Critical Chain. I’ll identify only some of
them, that from my point of view are important.
Critical Chain management:
1. Gives a ‘big picture’ of the project.
Critical Chain provides consistent outlook on the inter project and emphasizes project
progress. Therefore problems are easily and quickly identified and solved. It gives vision of
priorities and don’t let people get confused.
2. Identifies most probable task durations
On one hand task duration isn’t too long, which according to Parkinson’s Law “Work expands
to fill (and often exceed) the time allowed” causes inefficiency of work process. On the other
hand schedule isn’t too intense that usually causes employees’ stress and as a result lower
quality.
3. Implicates control on critical resources and task schedule
Managers continuously focus on bottlenecks so preventing problems from occurring and
resolving conflicts with users and providers of resources. Tasks start when they need to be
started – as soon as predecessors are finished, and finished as soon as possible.
4. Protects project consistency with buffers.
Project completion is secured with buffers which locate at bottlenecks or in the end. Therefore
if some unfavourable event happens during task realization which extends implementation
time, buffer serves as a reserve to prevent following tasks starting later.
5. Reduces multi-tasking.
Preventing multi-tasking is implemented by setting priorities for all tasks. That gives
employees direction on which tasks are critical and which are not, in a word, what to do first
and what next. It reduces costs and implementation due to possibility to consentrate on
performing one task at a time.
After the benefits presented earlier, it’s evident that Critical Chain is a suitable method for project
management. Moreover it’s one of the best methods to use because it reduces duration of the
project, lower project costs and improves quality of the final result.
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3. What kind of effects do you expect by possible using buffers (time
buffers) during the working out of your thesis (dissertation)? Can you
explain what is the buffer?
Buffer is a designed reserve of time applied to project schedule.
It protects project from predictable and unpredictable risks and serves to keep real due date of
project equal to planned. Also buffers are using to assist bottlenecks of the process with
additional time for their completion. Buffers are very important for success of the projects.
For my diploma I’ve decided to use 1 week buffers after bottlenecks (activities 7 and 10).
That will lengthen project for 2 weeks but will protect from expected delays in performing
these tasks. The Final Gantt chart with buffers is presented on Figure 4.
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41
1. 8
2. 8 8
3. 8
4. 8 8
5. 8 8
6. 8 8 8 4 4
7. 4 4 8 4 4 4 4 4 4 8 B
8. 8 4 4 4 4 4 4
9. 8 8 8 4 4
10. 4 4 8 8 8 8 8 8 8 B
11. 8 8
12. 4 4
13. 4 4
14. 8
Figure 4. Final Gantt chart with buffers
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4. Can you specify by use of Thinking Process Tools. Your personal
bottleneck as far as studying processes or writing a work or working on
assigned school tasks (by other tutors) is concerned? Try to use CRT –
Current Reality Tree and create a list of Undesirable Effects (named by
You).
Thinking process is a part of Theory of Constraints and enables focused improvement of a
system.
Current Reality Tree measures current state and presents the network of cause-effect relation
between undesirable effects. It helps to analyze current state of system and find the core
problem.
First, I’ll make a list of undesirable effects (UDE):
1. I have not enough time
2. I can’t plan my time
3. I can’t do things on time
4. I have student syndrome (I start fully work only when it’s last moment before
deadline)
5. I’m busy doing other things than writing diploma (they can be also important)
6. I can’t concentrate
7. I have low quality of work (diploma)
Using these undesirable affects Current reality tree can be constructed:
Figure 5. Current reality tree
2. I can’t plan
my time
4. I have student
syndrome
6. I can’t concentrate
1. I have not
enough time
3. I can’t do
things on time
7. Low quality of
diploma
5. I’m busy doing
other things than
diploma
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Evaporating Cloud Tree is aimed to find and solve conflicts.
Figure 6. Evaporating Cloud Tree
5. State clearly your suggestions to improve your dissertation writing
(project management question) and related benefits.
Some of improvements were already presented earlier while applying Theory of Constraints
and Critical Chain tools:
o First of all after identifying bottlenecks to which I should pay more close attention
while planning and writing diploma.
o Second, a plan (Gantt chart) for diploma writing process was created using Critical
Chain tools.
o Third, to protect project from possible risks I’ve used buffers that were included in
Final Gantt chart after bottlenecks.
While analyzing list of undesirable effects, Current Reality Tree and Evaporating Cloud Tree
I’ve came to a conclusion that injections to improve current situation will be needed.
Therefore, a Future Reality Tree should be constructed to reflect these improvements.
Future Reality Tree is used to solve problems uncovered in Current Reality Tree and conflict
of Evaporating Cloud Tree by breakthrough idea (injection) and shows possible future state of
the system possible after introducing improvement measures.
Prerequisite
Write diploma
Prerequisite
Don’t write rite diploma
Necessary condition
Have written quality
diploma by due date
Necessary condition
Have time for other
important things
Live harmonically Conflict
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Figure 7. Future Reality Tree
Injection 1. Applying time management techniques
Time-management aims to control time spent on activities to increase efficiency. It includes
range of tools, techniques and skills for managing time and special activities, such as
planning, setting goals, prioritizing, organizing, scheduling, analysis of time spent, monitoring
etc. This tools can be helpful to me to organize my time and not be stressed about its shortage.
Injection 2. Self-improvement
For improving process of writing diploma (as well as other aspects of my life) a continuous
work on my weaknesses, comprehension of my mistakes and enhancement of my strengths is
needed. It includes struggling with student syndrome and laziness as well.
Benefits
All mentioned above improvements can bring numerous benefits. The main for me are:
1. High quality of end result
2. Smooth process
3. Elimination of stress factor
4. Prioritized time organization, that allocates time for other important things in my life
than studying
5. Harmonious time distribution
2. I can plan my
time
4. Student Syndrome
is minimized
6. I’m relaxed and can
concentrate
1. I have enough
time for writing
3. I do things
on time
7. High quality of
diploma
5. Other duties
don’t impact
writing process
Injection 1. Applying time
management techniques
Injection 2. Self-
improvement