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Theory of Constraints Handbook - James Cox Iii [755]

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in the project buffer is under the control of the PMO or similar body. However, the budget not under control of the PM can be accessed upon the PM’s petition of the PMO.

31Recall that the buffer burn rate is “the rate is calculated as the ratio of the percent of penetration into the project buffer and the percent of completion of the Critical Chain. A buffer burn rate of 1.0 or less is good.” Sullivan et al (2007, 6). (© TOCICO 2007, used by permission all rights reserved.)

32The Defense Contract Management Agency (2009) of the U. S. Department of Defense has been most active in establishing EVS implementation guidance and project progress metrics.

33For an extended approach to solidifying change, see Rob Newbold’s Chapter 5, “Making Change Stick,” in this volume.

34Similarly, Step 3 is the second layer and so forth until Step 6, which is the fifth layer of resistance.

1http://www.informs.org. (The Warner Robins Air Logistics Center [WRALC] of the U.S. Air Force won the prestigious Franz Edelman Award 2006 for “Streamlining Aircraft Repair and Overhaul at Warner Robins Air Logistics Center.” Also known as the Super Bowl of Operations Research, it was awarded to WRALC for using Critical Chain to reduce the number of C-5 aircraft undergoing repair and overhaul in the depot from 12 to 7 in just 8 months. The replacement value for these aircraft is estimated at $2.37 billion.)

2www.tocico.org. (The Theory of Constraints International Certification Organization [TOCICO] recognized Boeing Integrated Defense Systems on June 7, 2009. Boeing was presented the North American Achievement Award for its demonstrated longevity in the successful use of Theory of Constraints (TOC) tools and significant contribution to the TOC community. This highly coveted award was handed to Mr. Charles Toups, Boeing Vice President.)

3Enterprise-level means the implementation was not restricted to a single project manager or a small project team, but involved multiple departments.

4Multitasking is shuttling between tasks without finishing either, and hurts the quality of work because people lose concentration.

5Buffers are unscheduled blocks of time.

6The TOCICO Dictionary (Sullivan et al., 2007, 6–7). defines buffer burn rate as “The rate at which the project buffer is being consumed in critical chain project management. The rate is calculated as the ratio of the percent of penetration into the project buffer and the percent of completion of the critical chain. A buffer burn rate of 1.0 or less is good. Usage: Some people calculate the burn rate of buffers other than the project buffer. When doing so, use the longest chain of work remaining which feeds into the buffer that is being analyzed. Illustration: If the project buffer is 40% penetrated and the critical chain is only 20% complete, the buffer burn rate is 40/20 = 2.0. The project manager has a warning that there is a problem, and if it continues, it will possibly jeopardize the project due date.” (© TOCICO 2007, used by permission all rights reserved.)

7While managers are an obvious set of stakeholders, depending on the situation, buy-in of an organization’s customers and key suppliers might also be needed.

8A computer-based learning program, available at www.toc-goldratt.com.

9An instructional video by Dr. Eli Goldratt, available at www.toc-goldratt.com.

10Process of ongoing improvement.

11Also known as the process for overcoming the five layers of resistance.

12Maintenance of low WIP is accomplished through Pipeline Planning and Control, which will be discussed later in Step 5.

13Unlike in high volume production, where the Drum-Buffer-Rope (DBR) solution of TOC applies and the drum is a specific resource, in projects the drum is typically a phase.

14A project plan is different from a work breakdown structure (WBS). A project plan is about identifying tasks and precedence relationships among those tasks, whereas a WBS is about subdividing the project into work packages. A task in a project plan can require multiple work packages and vice versa.

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