Drum Buffer - Rope Method

Theory
of
Constraints
James Henderson
March 20, 2002

Agenda
Introduction
What is going on in today’s projects?
What is Theory of Constraints?
• Five Focusing Steps
• Thinking Processes
• Critical Chain
• Buffers & Dealing with Uncertainty
• Drum - Buffer - Rope
Who is using TOC today?
Questions & (possibly) some Answers
Closing Remarks
Overview Presentation on TOC

March 20th/JRH
What’s going on in today’s
Projects - Processes - Systems?

March 20th/JRH
Constraints Happen
Whether you are a functional manager over the production of widgets or a
Project Manager over the development and implementation of the next
major whiz bang solution to the market’s needs, you rely on a good
production / process flow or project network to ensure the success.
The problem is that…
“constraints happen”
...and things don’t go according to the plan.
Theory of Constraints (TOC) takes the “systems approach” to overcome

those constraints. TOC focuses on the few critical elements that truly
influence / control the productivity of the system instead of trying to control
all of the elements.

March 20th/JRH
Historical data
Project Type Time Cost
50 new products (new chemical entities, 1.78X 1.61X

compounded products, or alternate dosage
forms) in ethical drug firm
69 new products in proprietary drug laboratory 2.95X 2.11X
20 management information system projects 2.10X 1.95X
34 DOD systems
from “planning estimate” N/A 2.11X
from “development estimate” N/A 1.41X
10 major construction projects N/A 3.93X
10 energy process plants N/A 2.53X

March 20th/JRH
What kinds of things go wrong in projects?
• Usually original due dates are not met.

• Too often resources are not available when needed (even
when promised).
• There is constant pressure to add more projects.
• Necessary things are not available on time (information,
specifications, materials, designs, authorizations, etc.)
• There are fights about priorities between projects.
• There are budget over-runs.
• There is pressure to begin before specs are written.
• There are too many changes… etc. etc. etc.

March 20th/JRH
What is the key to success?
According to Tom Peters… “Velocity”...
...Faster = more market share
...Faster = shorter pay-back period
...Faster = more rapid learning and change
...Faster = smaller target for changes

March 20th/JRH
Profound Knowledge
W. Edwards Deming maintained that real quality improvement

isn’t possible without profound knowledge, according to
Deming, profound knowledge comes from:
An understanding of the theory of knowledge.
Knowledge of variation.
An understanding of psychology.
Appreciation for system.

March 20th/JRH
The System the Project Goes Through is the Company
Raw Investment and Revenue

Material Operating Expenses
Throughput = Revenue - Raw Materials

Net Profit = Throughput - Operating Expense
Return on Investment = Net Profit / Investment

March 20th/JRH
So…What is
Theory of Constraints?

March 20th/JRH
Theory of Constraints
Goldratt contends that systems are analogous to chains, or
networks of chains. Like a chain, the system performance is limited
by the weakest link.
This means that no matter how much effort you put into improving
the processes of a system, only the improvements to the weakest
link will produce any detectable system improvement.
Throughput is limited by the weakest link... the constraint!
(A system might be generally defined as a collection of interrelated, interdependent components or

process that act in concert to turn inputs into some kind of outputs in pursuit of some goal.)

March 20th/JRH
Theory of Constraints - Three Important Concepts
Every system can be modeled as a net of chains
The weakness of the system is the weak link in the chain, the
constraint
A project schedule to get a product rapidly through the system

must account for the constraint
Improving the throughput of the system (company) is the highest

leverage point for improving profitability

March 20th/JRH
Theory of Constraints Covers Many Things
Five
Focusing
Steps
Thinking
Processes
Critical
Chain Drum
Buffer
Rope

March 20th/JRH
Five Focusing Steps?

March 20th/JRH
Theory of Constraints - FIVE FOCUSING STEPS
(Which will Strengthen the Chain)
1. Identify the Constraint
2. Exploit the Constraint
3. Subordinate everything
to the Constraint
4. Elevate the Constraint
5. Repeat for the new

Constraint

March 20th/JRH
Theory of Constraints - FIVE FOCUSING STEPS
1. Identify the System's constraints.
The process is analyzed so that a task or activity that limits the productivity of an entire system can be
identified. A system constraint may be identified by a long queue of work or long processing times.
2. Decide how to exploit the system's constraints.

In this step, decisions must be made on how to modify or redesign the task or activity so that work
can be performed more effectively and efficiently.
3. Subordinate everything else to the above decision. (step 2)

Now, management directs all its efforts to improving the performance of the constraining task or
activity and any other task or activity and any other task or activity that directly affects the constraining
task or activity.
4. Elevate the system's constraint.

In this step, additional capacity is obtained that will increase (elevate) the overall output of the
constraining task or activity. This differs from step 2 in that the added output comes from additional
purchased capacity, such as buying a second machine tool or implementing a new information
technology.
5. If, in the previous step, a constraint has been broken, go back to step 1 but do
not allow inertia to cause a new constraint
This sets up a process of ongoing improvement. As a result of the focusing process, the improvement
of the original constraining task or activity may cause a different task to become a constraining task or
activity. Inertia could blind management from taking steps to improve the system's output now limited
by a new constraint.(1) Overview Presentation on TOC
March 20th/JRH
Thinking Processes?

March 20th/JRH
Theory of Constraints - THINKING PROCESSES
- CATEGORIES OF LEGITIMATE RESERVATION -
Clarity -
If I were reading the issue to someone else would they truly understand?
Entity Existence
Does the entity exist in my reality?
Causality Existence
When I read aloud exactly what I wrote using if...then, does it really make sense to me?
Cause Insufficiency
Are the written causes for an entity sufficient to justify all parts of the entity?
Additional Cause
Is this really the only major cause? If the cause is eliminated, will the effect be almost
eliminated?
Predicted Effect
Do the unavoidable outcomes exist?
Cause Reversal
What if we have things going the wrong way?
Tautology
Tautology is a rare case where there is circular logic. IF A THEN B. IF B THEN A.
(Entity = the issue / problem) Overview Presentation on TOC
March 20th/JRH
Theory of Constraints - THINKING PROCESSES
- SIX LAYERS OF RESISTANCE -
Layer 1
We don't agree on the Problem
Layer 2
We don’t know where to start
Layer 3
We don't see how the proposed solution will solve the Problem(s)
Layer 4
"Yes, but ...", i.e., the proposal looks good on paper, but there are some
negative side effects foreseeable if we implement the solution
Layer 5
It may work, but there are too many, or too difficult, obstacles blocking
implementation
Layer 6
Fear of going at it alone - doesn’t see how to get there.

March 20th/JRH
Critical Chain?

March 20th/JRH
Theory of Constraints - Critical Chain
The Fundamentals of Critical Chain
• Must have a plan that is precedence based
• Estimate schedule duration at ~50% confidence level (vs. 90%)
• Eliminate resource contention
• Use and manage “Buffers” (“Buffers” placed at end of series of

tasks to account for schedule variation)
• Consciously eliminate uncertainty

• Multi-tasking (Focus on one task until complete)

March 20th/JRH
Task Duration Estimates
Task duration estimates must be reduced to the point where:
People doing the work know there is a good chance (but not a
certainty) that they will finish in the allotted time.
Managers and people doing the work know there is an good
chance of finishing late and a good chance of finishing early.
And, people doing the work must know that:
Management is not going to make unrealistic due date

commitments based on these reductions.
These actions give the overall project a higher chance of
success.
There will be no penalty for not finishing within the estimated
time.
March 20th/JRH
What are 50-50 Probability Task Times?
Critical Chain Uses Time “B”
Probability
of Task
Duration
Time
A B Time C
When asked to provide an estimate of when you can have a specific task ready,
what answer do you give?
If everything goes perfectly, there is a slight possibility of finishing within time

A
Even with some surprises (uncertainty), time B is very likely
If a major disaster occurs, time C is likely
March 20th/JRH
The Differences Look Like ...
Critical Path
Critical Chain
Activity A Resource A Resource B Resource C Resource A Resource D
Activity B Resource A Resource C Reschedule

Task
task to
resolve
conflict
Time

March 20th/JRH
Resolves Resource Contention
The critical chain by definition is a set of tasks that determines

project length
❚ considers tasks dependencies

❚ considers resource capacity
distinguished from Critical Path in this way
Project
Completion
10:Design 4:Develop
4:Design 6:Prototype 8:Develop 4:Test

March 20th/JRH
Resolves Resource Contention
The critical chain by definition is a set of tasks that determines

project length
❚ considers tasks dependencies

❚ considers resource capacity
distinguished from Critical Path in this way
Project
Completion
10:Design 4:Develop
4:Design 6:Prototype 8:Develop 4:Test

March 20th/JRH
Buffers
&
Dealing with Uncertainty

March 20th/JRH
Traditionally we protect TASKS from uncertainty by adding

“Safety” to our schedule and by working to “Due Dates”
… So what is the impact of working to Due Dates and Putting
Safety Everywhere?
Believe it or not . . .
 Safety is wasted
 Delays are passed on
 Gains are not
Let me explain...

March 20th/JRH
How the Safety Gets Wasted
Student Syndrome
I have plenty of time, I’ll start tomorrow
Parkinson’s Law
The amount of work done is directly related to the time
allocated …
No early finishes
Bad Multitasking
Doing several things at once takes longer than doing one
thing at a time
We always need to look busy
We always need to make everybody busy (or look busy)
Fire-fighting
March 20th/JRH
Why Eliminate Multi-Tasking?
Multi-tasking extends both task and project completion
Tasks assigned Task A 3 days

to a resource Task B 3 days
Task C 3 days
Should happen: Task A Task B Task C

3 days 3 days 3 days
Could happen: A B C A B C
6 days
Does happen:
A B C A B C
7 days
March 20th/JRH
How long will it take?
If Task A takes 5 days to complete

Task A
If Task B takes 5 days to complete 5 Days
If Task C takes 5 days to complete Task B Task D

5 Days 10 Days
and…
Task C
If Task D takes 10 days to complete
5 Days
How long is the project?

March 20th/JRH
Delays are passed on and Gains are NOT
If Task A finishes in only three days

Is there a benefit to the whole? Task A
X
5 3 Days
If Task C takes eight days to finish
What’s the impact on the whole? Task B Task D
5 Days 10 Days
If Tasks A, B, and C, through some
miracle, all finish in two days?
Task C
Will Task D be ready to start three X
5 8 Days
days early?
Protecting Individual Tasks Provides Little Protection!

March 20th/JRH
Remember, traditionally we protect TASKS from uncertainty with Critical Chain
scheduling, we protect THE ENTIRE PROJECT, not individual tasks
Protect the project from critical chain disruptions

Project Buffer
5:Design 2 Dev
2:Dsn 3:Proto 4: Dev 2:Tst 6.5: Project Buffer
Protect the critical chain from disruptions

Feeding Buffer
5:Design 2: FB 2 Dev
2:Dsn 3:Proto 4: Dev 2:Tst 6.5: Project Buffer
“Buffers” to protect the project are ESSENTIAL elements of the schedule

March 20th/JRH
Using the Buffers to Monitor Project Status
Buffers Provide Focus and Early Warning
BUFFER
WATCH
OK ACT
& PLAN
Remaining
Project Buffer:
20 15 14 8 7 0
Remaining
Feeding Buffer:
8 7 6 4 3 0

March 20th/JRH
BUFFER NEEDED TO PROTECT THE
PRODUCTIVE CAPACITY
Machine
R1 R2 R3 R4 R5
Buffer
Normal Flow of Material from Machine to Machine on a Shop Floor
• R4 is a capacity constraint resource.

• An inventory buffer is provided in front of R4 to protect
the productive capacity of R4, which is a constraint
machine.
• We need to identify the constraint in the project schedule
and protect it against delay in in performance of that
constraint. Overview Presentation on TOC
March 20th/JRH
PROJECT OR COMPLETION
BUFFER
• Project or completion buffer is placed at the end of
the project, i.e. after completion of the last activity
of the project.
• Buffer protect the project from any sort of delays in
completion of the activities in the critical chain
path.
• Project buffer is usually kept as 33% of the critical
chain length.

March 20th/JRH
FEEDING BUFFER
• This buffer is located at a point where the non-

critical chain path tasks meet the critical chain
tasks.
• In critical chain scheduling, the critical chain is
treated as a constraint and is protected against
all uncertainties in the non- critical chain path
tasks.
• Feeding buffer is to protect the Critical Chain
Path activities from delays in the non-critical
chain path activities.
March 20th/JRH
CRITICAL CHAIN PROJECT SCHEDULE
WITH FEEDING AND PROJECT BUFFERS
# A1
FB
Activity Activity # Activity # Activity # Project

#1 2 3 4 buffer
# B1 # B2
FB
FB: Feed Buffer

March 20th/JRH
CRITICAL CHAIN PROJECT SCHEDULE
• In this scheduling methodology, the assigned

duration for various activities is reduced.
• The decreased amount of the time is kept at the
end of the project as a buffer.
• In the event of non-completion of any task or
activity, the Project Buffer starts shrinking and all
concerned can take necessary action to avoid
delays in the particular activity.
• In some cases, the duration of the remaining
activities is reduced to complete the project on
time.
March 20th/JRH
CASE STUDY OF AKM CHEMICALS
AKM Chemicals acquired an order to manufacture

60,000 bottles of DEP oil. The manufacturing
process of the finished DEP oil is as below:
1. Oil is filled in bottles of 50 ml volume.
2. Metal caps are placed on bottles
3. Caps are sealed on the ROPP m/c
4. Labels are pasted on bottles.
5. Bottles are put in the shipper, which is sealed with
tape.
The sales team wanted to commit the delivery time
to the customer.
March 20th/JRH
SOLUTION:
TIME ESTIMATES FOR ACTIVITIES
Department Estimated Time Buffer Final estimated

(Days) time (days)
Research & Development 15 3 18
Purchase (after getting 14 1 15

approval from R & D
Production after acquring 10 2 12

the raw material.)
Logistics 4 1 5
TOTAL 43 7 50

March 20th/JRH
ACTIVITIES IN THE NETWORK TO
MANUFACTURE 60,000 BOTTLES OF DEP oil.
• A. Arranging for the sample of DEP oil, glass bottle
caps, from the various suppliers – 7 days.
• B. Testing the oil, glass and bottle caps in the
laboratory – 3 to 4 days.
• C. Developing the shipper for the bottles – 4 days.
• D. Getting approval from the R&D department on the
oil, glass bottles, bottle caps and other raw material – 2
days
• E. Generating supplier codes in ERP system, and
then raising purchase orders – 2 days

March 20th/JRH
ACTIVITIES IN THE NETWORK TO
MANUFACTURE 60,000 BOTTLES OF DEP oil.
• F. Supplier’s lead time for raw material supply – 10 days.
• G. Arranging for the bottle cap-sealing machine – 10 to 15
days.
• H. Commencing production of the sealed bottles after
acquiring all the raw material – 10 days @ 6,ooo
bottles/day.
• I. After sealing the bottles, sticking labels on them – 10
days@ 6,000 bottles/day.
• J. Organizing transport – 2 days.
• K. Lead time for the truck supplier to send the truck to the
factory – 2 days.

March 20th/JRH
COMMITMENT TIME
Based on the above project duration, the

manufacturing manager further added his
own buffer of 4 days in order to complete
the project and gave 54 days delivery
lead-time to the sales department

March 20th/JRH
NETWORK DIAGRAM
5
G (10-15)
1 2 3 4 6
A (7) B (3-4) C (4) D (2)
E (2)
7 8 9 10 11 12
F (10) H (10) I (10) J (2) K (2)
Critical Chain Path: A – B – C – D – E – F – H – I – J – K

Duration of critical path = 54 days.
March 20th/JRH
SOLUTION:
COMPARISON OF THE PLAN
Department Estimated Buffer Final Actual

Time estimated Time
(Days) time (days) (Days)
Research & Development 15 3 18 16
Arranging for the bottle cap-sealing 0 0 0 6

machine (not on critical path)
Purchase (After getting approval 14 1 15 15

from R&D)
Production after getting the raw 10 2 12 16
material.)
Logistics 4 1 5 7
TOTAL 43 7 50 60
CONSEQUENTLY, THE PROJECT GOT DELAYED BY 10 DAYS,

i.e. 20 PER CENT OF THE TIME. Overview Presentation on TOC
March 20th/JRH
OBSERVATIONS FROM THE CASE STUDY
1. PARAMETERS ON WHICH PROJECTS ARE PLANNED IN
CONVENTIONAL PROJECT MANAGEMENT:
• Activity estimated durations are assumed.
• The activity will take exactly the estimated time.
• Resources are always available.
2. Tasks are not that easy as they appear.
3. Vendors are unreliable.
4. At each and every level, people add their own buffers to the
estimated activity durations.
5. Parkinson’s law worked and expands to fill up the available time.
The samples were received 2 days before schedule date but
the testing started 3 days after getting the samples. This is
called the student’s syndrome.

March 20th/JRH
PERFORMANCE MEASURES FOR
PROJECTS IN CRITICAL CHAIN
PROJECT MANAGEMENT
• Percentage of critical chain completed.
• Ratio of consumption of the completion buffer

and critical chain already complete.
• Rate of consumption of completion buffer.

March 20th/JRH
PERCENTAGE OF CRITICAL
CHAIN COMPLETED
• Completion of the critical chain is the real indicator of
the completion of the project.
EXAMPLE:
• Duration of the critical chain of a project is 98 days
• It has been completed by 48 days of its critical chain.
• Find out the percentage of critical chain completed.
SOLUTION:
The percentage of critical chain completed = 48/98 =
49%
March 20th/JRH
RATIO OF CONSUMPTION OF THE
COMPLETION BUFFER AND CRITICAL
CHAIN ALREADY COMPLETE
EXERCISE
In a project, the length of the critical chain is 130 days, and completion buffer is 48 days.
This project has completed 65 days of the critical chain with a consumption of 31 days of
the project buffer. Find out:
a. The ratio of consumption of the completion buffer.
b. Critical chain already completed.
SOLUTION
a. Consumption of the completion buffer or project buffer = 31/48 = 65%
b. Critical chain completed = 65 / 130 = 50%
c. The ratio of the completion buffer and critical chain already complete is = 0.65 / 0.5 =
130%
ANALYSIS
1. The meaning of 130% is that the rate of consumption of the buffer is higher than the rate
of completion of the critical chain.
2. The remaining activities of the project need to be expedited.
3. Rate of consumption of completion buffer Is not useful for projects of small duration and is
the performance measure for large projects..

March 20th/JRH
MAJOR BENEFITS ACHIEVED USING
CRITICAL CHAIN PROJECT MANAGEMENT
1. It considers the variability and uncertainties of

various activities by adding time buffers.
2. Both, the precedence and resource
dependencies are considered while developing
the schedules.
3. Critical Chain Project Management takes care of
delays in the projects due to human psychology
and student syndrome.
4. Resource constraints are also tackled in Critical
Chain Project Scheduling.
March 20th/JRH
Use the Buffers to Monitor Project Status
% Project Buffer Consumer Project Buffer Status Report
Status Date
Schedule On-Track Develop Contingency Plans Act on Contingency Plan

March 20th/JRH
Drum - Buffer - Rope?

March 20th/JRH
Theory of Constraints - THE DRUM CONCEPT
DRUM BUFFER ROPE
The Drum Concept utilizes a common resource between projects to

act as the drum beat (with some protection - buffer) for
releasing each new project into the environment (pulling the rope).

March 20th/JRH
Theory of Constraints - THE DRUM CONCEPT
(Staggering Projects based on the “Drum Resource”)
The constraint is called “the drum” - it sets the pace & provides
a means to stagger projects & set priorities across projects.
Project 1: 6 :P ro g F e e d in g 3 :H W
2 :C S 3 :E n g 5 :H W 2 :C S P r o je c t
6 :P ro g F e e d in g 3 :H W
Project 2:
2 :C S 3 :E n g 5 :H W 2 :C S P r o je c t
Drum schedule: 5 :H W 3 :H W 5 :H W 3 :H W

March 20th/JRH
Who is using TOC & CCPM?
&
What are the Results?

March 20th/JRH
Who is using TOC & CCPM Today?
Literature Industry
240
No. of
TOC 90
Articles
‘90-’94 ’94-’98
Plus Over 40 books devoted to TOC Plus Others
Computing Tools Government Consulting Firms
Under Secretary of
Defense for
Acquisition Tony Rizzo
AFOTEC
Education Boeing
Int. Schedules Maturity Model
BCA
• IASL
F-22
• Flight Test
• Wing Assy
• 777 AFIT
C-17
• MR&D Chem/SHEA
Plus Others • Flight Test Overview Presentation on TOC
March 20th/JRH
Results
Harris Semiconductor
New technology product - first 8-inch discrete power wafer fab
New raw material, new automated technology
New facility, doubling capacity
Project scope - construction, installation, ramp-up,
Focus on actual delivery of production via the Critical Chain

• Industry norm
✶ Ground-breaking to first silicon - 28-36 months
✶ Time to ramp production - 18 months
• Harris results with Critical Chain
✶ Ground-breaking to first silicon - 13 months
✶ Time to ramp production - 21 days
March 20th/JRH
Results
Israeli Aircraft Industries
Wide-Body Aircraft Directorate Multi-project maintenance operation
History
✶Average visit per aircraft - 3 months
✶Amount of work committed by customers - 2 months
One year after implementing Critical Chain

✶Average visit per aircraft - 2 weeks
✶Amount of work committed by customers - 1 year

March 20th/JRH
Results
Examples of Industry Successes - TOC 2000
 $5M incremental profits on first project
 $11M increased revenue on same first project
 5 weeks schedule reduction on delivery to market
 First to Market
 Competitors Withdrew
 5%-10% savings of revenue

 $37M increase in no. of profitable programs
 2-4 month cycle-time reduction
 $400k per project reduced carrying costs
 Recovered strained customer relationship
 15% capacity increase projected (goal 50%)

 Savings on 1st project paid for full implementation
 Full-deployment planned within 1-yr (150 programs)
 Enhanced visibility into resource requirements
 Enables quick response to replans
AFOTEC
March 20th/JRH
Questions
&
(Possibly) Some Answers

March 20th/JRH
Closing Remarks

March 20th/JRH
How can you Learn More?
By Willian H. Dettmer By Eliyahu M. Goldratt
By Robert C Newbold

March 20th/JRH
THANK YOU!!

March 20th/JRH
BIO
After leaving the United States Air Force in 1988, James joined The Boeing
Company (formally The McDonnell Douglas Corporation). He holds a Bachelor
of Sciences Degree in Business Management, and a Jonah Certification from
the Goldratt Institute (through the University of Washington).
James is a member of the Project Management Institute (PMI), and has

served on the Orange County Chapter’s Corporate Advisory Board for Project
Management Practices. He is currently at work on obtaining his Project
Management Professional certification from the PMI organization.
As Senior Program Manager at the Boeing Company, James has directed and
supported million-dollar projects ranging from re-engineering of development
JAMES processes, to relocating work between company components, to redesigning
HENDERSON products to improve quality, cycle time and cost.
James currently manages the engineering processes for the military air-lifter known as the C-17. In
addition, he oversees internal applications development of technology projects (internal R&D type
projects) for the Aircraft & Missiles Southern California (A&M SoCal) programs, and is the Steering
Team Lead for the A&M SoCal Leadership Development Program.
Recognized for his expertise in Project Management practices, Lean Engineering, System
Engineering, Resource Planning, Design Processes, and Production Engineering, James is a
program advisor for the application of Critical Chain Project Management principles at the Boeing
Company. Utilizing fundamental Project Management techniques, and Constraint Based Project
Management (Theory of Constraints – TOC), James guides program leaders in the development of
comprehensive program plans.

March 20th/JRH

Drum Buffer - Rope Method

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Theory

March 20, 2002

Overview Presentation on TOC

Overview Presentation on TOC

The problem is that…

Theory of Constraints (TOC) takes the “systems approach” to overcome

Overview Presentation on TOC

50 new products (new chemical entities, 1.78X 1.61X

69 new products in proprietary drug laboratory 2.95X 2.11X

20 management information system projects 2.10X 1.95X

10 major construction projects N/A 3.93X

10 energy process plants N/A 2.53X

Overview Presentation on TOC

• Usually original due dates are not met.

Overview Presentation on TOC

According to Tom Peters… “Velocity”...

...Faster = more market share

...Faster = shorter pay-back period

...Faster = more rapid learning and change

...Faster = smaller target for changes

Overview Presentation on TOC

W. Edwards Deming maintained that real quality improvement

An understanding of the theory of knowledge.

Appreciation for system.

Overview Presentation on TOC

Raw Investment and Revenue

Throughput = Revenue - Raw Materials

Overview Presentation on TOC

Overview Presentation on TOC

Throughput is limited by the weakest link... the constraint!

(A system might be generally defined as a collection of interrelated, interdependent components or

Overview Presentation on TOC

Every system can be modeled as a net of chains

A project schedule to get a product rapidly through the system

Improving the throughput of the system (company) is the highest

Overview Presentation on TOC

Overview Presentation on TOC

Overview Presentation on TOC

1. Identify the Constraint

2. Exploit the Constraint

4. Elevate the Constraint

5. Repeat for the new

Overview Presentation on TOC

2. Decide how to exploit the system's constraints.

3. Subordinate everything else to the above decision. (step 2)

4. Elevate the system's constraint.

Overview Presentation on TOC

Overview Presentation on TOC

Overview Presentation on TOC

The Fundamentals of Critical Chain

• Must have a plan that is precedence based

• Estimate schedule duration at ~50% confidence level (vs. 90%)

• Eliminate resource contention

• Use and manage “Buffers” (“Buffers” placed at end of series of

• Consciously eliminate uncertainty

Overview Presentation on TOC

Task duration estimates must be reduced to the point where:

And, people doing the work must know that:

Management is not going to make unrealistic due date