16th International Conference of the TOC Practitioners Alliance - TOCPA

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April 23, 2015 Johannesburg, South Africa

16th International Conference of the

TOC Practitioners Alliance - TOCPAwww.tocpractice.com

Production vs Projects

Jaco Laubscher, Realization Africa, South-Africa23rd April, 2015

16th International Conference of the TOC Practitioners Alliance - TOCPA

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Jaco Laubscher

jaco.laubscher@realization.co.zawww.realization.co.za

+27 83 306 7145

Jaco is a Theory of Constraints1 Solutions Application Expert, currently involved with various projects in South and Southern Africa.He has been trained by Realization Inc. as a Critical Chain Implementation Expert.

Jaco has a B.Eng Mechanical Engineering Degree from the University of Pretoria. Having spent 9 years in the Food and Beverage industry, dealing with large and complex multi-discipline projects, Jaco gained extensive experience in Process Engineering, Process Automation, Project Management, Contracting and Contract Management as well as the associated disciplines of System Engineering, Configuration Management, Quality Management and Risk Management.

For the past 9 years Jaco has actively implementing Critical Chain Project Management Systems across a number of industries, ranging from IT, Construction, Maintenance, Repair and Overhaul as well as new product development environments.

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Everything I am presenting here today is my personal opinion, observations and hypothesis.

These opinions, observations and hypothesis are not those of Realization Inc, nor has any of these been incorporated in any of the products or services provided by Realization Inc.

These views have however been shaped during a number of implementations of Realizations technology.

Legal Disclaimer

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A Version of TOC history

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Challenging inconsistencies

Why do I expect to find a pure project environment or a pure production environment and not a mixture/hybrid of the two?When you have a hammer, everything looks like a nail

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Pure Production Environment

Repetitive (have been done before) Touch-time is a small percentage of lead-time Object based Over-production and under-production is possible Stock of finished goods is possible Lead-time can be very short (hours/days) Stock buffers and time buffers is used

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Pure Project Environment

Non-repetitive (Each project is unique) Touch-time is a noticeable percentage of lead-time Could be non-object based (ideas, concepts, designs) Over-production and under-production is not possible,

when a task is completed, it is completed. Stock of finished goods is not possible Lead-time is longer (weeks/months/years) Time buffers is used

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Reality is different

Have projects with repetitive tasks. (Babcock) Have projects with tasks, where touch-time is a small

percentage of the lead time. (Centurion Systems DTP) Have production where touch-time is a large percentage

of total lead-time (SABN) Have logistical elements that needs to be ready for CC-

task as well as non-CC tasks and thus need feeding buffers for all tasks. (Babcock)

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The Goal vs Critical Chain DBR/sDBR vs CCPM

Is this also reality?

Project Buffer

Feeding Buffer

Critical Chain

vs

vs

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A unified view?

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Production-Project Mix

It is a maintenance project using CCPM principles, but instead of as-late-as-possible, we manipulate the feeding buffers so that every chain starts as soon as possible.

Tasks are production task that needs to be completed at a daily certain rate, so daily targets is used to report progress and not remaining duration estimates. Buffers are mostly used for Murphy, rather that task time variability.

Full-kitting is the most important aspect that is required

Buffer

Buffer

Buffer

Buffer

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Production-Project Mix

Overall the development is driven with CCPM.Most departments obtain their priorities in this multi-project environment from the CCPM software.One department is running a job-shop and the project work is only 5% to 10% of their workload.Our solution: When chain get to this department, the task itself becomes a buffer.

Buffer

Buffer

Buffer

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Logistics Project mix

Created tasks with 100% feeding buffer to ensure that the logistical supply is ready when the critical chain task starts, but how do you deal with the some requirement on a non-critical chain task? Implemented full-kit points to solve the problem.

A

B

C

Buffer

3 weeks

3 weeks

Buffer

3 weeks

A

B

C

Buffer

3 weeks

3 weeks

Buffer

FK

FK

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Summary

Reality is, that there is very few pure project environments or pure production environments.

As TOC practitioners, we tend to invent and adapt the principles to find the best solution for the specific environment.

There is a need to capture these solutions and adaptations in order to be a learning organisation.

Validation of adaptations should be part of the process of recording them.

We may actually still be missing some pieces of the puzzle.