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TOC = Theory of Constraints

Critical ChainProjects with Floating Objectives

Double-level management of Programs and Portfolios

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Individual work

• Who will be the first?

• And with the right answer?

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1 min

2 min

5 min

10 min

max 2 personson the bridge

In what order the wayfarers have to go to reach next bank in the shortest time interval? End: All of them are

on the next bank.

The Quickest Pass Over an Old Bridge

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Flow is a criterion according to which the one place within the possible solution space is chosen, which is “most retarding”.

Effective investments – quick benefit.

Flow

Theory of Constraint

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Theory of Constraints (TOC)

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Theory of Constraints (TOC)

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Theory of Constraints (TOC)

What is the second step ?

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Theory of Constraints (TOC)

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Theory of Constraints (TOC)

What is the third step ?

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Theory of Constraints (TOC)

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Theory of Constraints (TOC)

What is the fourth step ?

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Theory of Constraints (TOC)

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Theory of Constraints (TOC)

What is the fifth step ?

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Theory of Constraints (TOC)

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Flow is a criterion according to which the one place within the possible solution space is chosen, which is “most retarding”.

Effective investments – quick benefit.

Flow

TOC – think of it over this picture

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What is the most retarding “place” within PPPM?

Brainstorming

Discussion

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PPPMorganization

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Principles of TOC based PPPM

• The agent focuses on the very one task, he/she/it is running.

• The agent reports accomplishing of the task and hands over “the baton”.

• Actions start not before the constraint permits it.

• “Rope and Drum” principle. Work rhythm.

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Rope and Drum Principle(explanation on funnel and cord)

PUSH

PULL !!!

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Rope and Drum Principle

• The work must not be pushed through a team of agents !

• The work must be pulled through a team of agents !

• The work must be done in a regular rhythm !

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Project 1

Project 3

Project 2

Project 4

This oneNOW!

This oneNOW!

This oneNOW!

This oneNOW!

Multitasking and priorities

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CO-ORDINATE !

RESOURCES

PRODUCTS

MONEY

TIME

What projects in one group mutually shares? What are they pass on?

Decide on priorities

What to do with a situation: one project affects the other projects?

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REDUCE MULTITASKINGOF CRITICAL RESOURCES!!

Remember the Discussion:

• What is a constraint in a Program or Portfolio of Projects?– What makes the greatest troubles?– What constraints to realize the project in

shorter time and for less money?

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Discussion

• What other is a constraint in a Program or Portfolio of Projects?

• Do you think “milestones” will help us ?!?• Do you know what consequences follow from

milestones setting ?• Do you know what is a “critical path” ? (If not,

then learn !!)• Is the critical path enough for planning and

realization of projects within a Program or Portfolio ?

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Portfolio Team

ST STST

Manager ofPortfolio

SC

Projectmanager

PT ST

Projectmanager

PT ST

Projectmanager

PT ST

Double-level management – MILE(Management In Large Extent)

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Critical ChainACTIVITY / PRODUCT dependences

RESOURCE dependences

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Critical Chain

• Critical Chain is such sequence of depended activities from various projects of a program or a portfolio, which constraints to finish a project or a set of projects early, with the same set of resources.

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Project/ Composite Activity/Action