10th International Conference of the

TOC Practitioners Alliance - TOCPA

www.tocpractice.com

Feb 21-22, 2014 Noida, India

Advanced Issues of CCPM

Oded Cohen
TOC Strategic Solutions, Israel
22, February 2014
10th International Conference of the TOC Practitioners Alliance - TOCPA

Oded Cohen
Oded has over 35 years of experience in developing,
teaching and implementing TOC methodology,
solutions and implementation processes working
directly with Dr. Goldratt all over the world. Among the
countries to which Oded brings his expertise are the
USA, Canada, Japan, India, China, the UK, Poland,
Russia, Ukraine, Colombia, Chile, Peru, Turkey and
many others.
Oded has authored multiple TOC
contributed to numerous TOC books.

articles

and

Oded in the is the author of Ever Improve A Guide to

Managing Production the TOC Way, published in June
2010. Oded co-authored the book Deming & Goldratt:
The Theory of Constraints and the System of
Profound Knowledge The Decalogue.
Together with Jelena Fedurko Oded has co-authored
the book Theory of Constraints Fundamentals.
Oded is International Director of TOC Strategic
Solutions Ltd and Founder and Co-President of
TOCPA.

oded.cohen.gs@gmail.com
www.toc-strategicsolutions.com

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Contents
Introduction the U Shape and CCPM
Direction of the solution - Managing Flow the TOC Way
Time Buffers
The General Structure for the CCPM Solution
Advanced topics in Planning
Advanced topics in Execution

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Introduction
Advances issues of CCPM
Practitioners raise practical issues along the lines of:

How to deal with specific situations?

Issues that deal with technicalities as well as managerial and human
interaction
Where do we find the answers?
The beauty of the TOC methodology is that every issue associated with
the solution has its own logical place :
either in the What the knowledge that is captured by the
U-Shape
or in the How - which is captured in the procedures and the
implementation plans.

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The Managerial Challenge

Improve the performance of the system

TARGET LEVEL

PERFORMANCE

TARGET
LEVEL

There is a strong
belief that the
system can
perform better up
to the Target Level

The
GAP

CURRENT
LEVEL

TIME
THE PAST

TODAY

THE FUTURE

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Improvement Solution
High
Performance
Measurements

Improved
performance

What to
Change?
Which
parts of the
system
have to
go!

Current
System
Stopped/
Replaced

Current
System
Stay

Proposed
Solution
New

What to
Change
to?

Future Reality

Current Reality

Low
Performance
Measurements

Which new
parts must
be
introduced

PIVOT
Understanding the problem

Developing the solution

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Understanding the Problem

Current Reality

Core Problem

A
C

A conflict diagram - Core

D
B

Cloud
D

Ensure the project

is on-time
and in full
(according to specs)

Take
corrective actions
that compromise
project budget
commitments

Run projects
successfully

Protect budget
commitments

Do not take
corrective actions
that compromise
project budget
commitments

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The Direction of the Solution:

Use the TOC Pivot to Better
Manage the Flow
PIVOT

TOC

Focus-Flow
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The TOC Pivot

PIVOT

TOC

Managing the TOC Way:

The Basic Assumptions

The Flows within the system
The Constraint
Types of Constraints
Managing through the Constraint
The Five steps of Focusing
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The Flows of a
Commercial Business
PIVOT

TOC

The Goal: To make money now and in the future

Management / Workforce
Decisions
Flow
Information
Flow
Process flow

Goal units

Blocking factor

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What prevents us from

achieving the goal?
PIVOT

TOC

CONSTRAINTS
factors or elements that determine
how much the system can accomplish

Lift

The
GAP

Block

THE PAST

TODAY

THE FUTURE

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The TOC Pivot

Managing Constraints
Lift

The
GAP

PIVOT

TOC
Block
THE PAST

TODAY

THE FUTURE

What is the constraint of the project management?

When does the system create value for the goal of making more
money?

The shorter is the time to complete the project the better!

At the completion of the project Throughput is generated
and money invested is starting to be returned!
Conclusion: Projects have the TIME constraint.
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Managing Production Flow

the TOC Way
Flow is characterized as dependent activities (tasks)
coupled with statistical fluctuations
The TOC Way for managing Flow is by using Buffers for
Planning and Buffer Management for controlling and
monitoring the Execution of the plans.
A TOC Buffer A mechanism to absorb statistical
fluctuations as well as to provide management with early
signals that the process is in danger of going out of
control (and hence are under threat of not achieving the
goal/purpose of the system).
Please note contingency is not a TOC Buffer!
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Buffer Management
Buffer Management a mechanism that informs management
about the true status of the flow though the continued update of
the buffer situation as compared with the plan.
Buffers are used during the execution are used for:
1. Setting up the priorities for assigning resources to perform
jobs
2. Prompting recovery actions to ensure enough buffers for the
rest of the flow
3. Proper sizing of the buffers through Dynamic Buffer
Management or managing PLT Production Lead Time
4. Identifying reoccurring problems in the flow and eliminate
them

Buffer management is always oriented to the future.

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TOC Direction of Solution

CCPM
The TIME constraint of the project is
presented through the Critical
Chain the longest chain of
dependent activities. Managing
the project through the CC is
geared to finish the project in a
safe and quick way

TOC direction
of solution

Future Reality

Critical Chain Project Management:

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Managing the FLOW

Management / Workforce
Project Buffer
Information
Flow
Decisions
Flow

Production/Operation Buffer

% Chain Complete

1
Information
Flow
Process flow

FG
Buffers

Goal units
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Time Buffer For CCPM

A Buffer that it measuring units of time
The time buffer is added at the end of a chain of tasks.
Project Buffer at the end of the Critical Chain
Feeding Buffer at the end of a chain that integrated into the
critical chain
Project Buffer - PB

Feeding Buffer - FB

G10 B10
W16

FB

M16

M16
Buffer
Consumption

Over 100%

C20

Project Buffer

Buffer
Consumption
Full
Buffer

Full Buffer

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The general structure of a TOC

Solutions for Managing Projects

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The General Structure of

TOC CCPM Solution
Strategy:
The Project is On Time, In Full & Within Budget
Tactics: Project Organization is on CCPM

Setting up the System

Mindset:
Customer orders
are the
Prime Driver
the Drum

Planning
Project Planning

Execution Control
Project Execution
Control

Injections 2-4

Injections 5-9

Injection 1
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Injection Flower
The Solution Design

What

Inj Injection
(essence)
UDE
Undesirab
le Effect

DE

DE
Desired
Effect
NBR
Negative
Branch
Reservati
on

Inj
Procedures &
Implementation Plan

How
IP
Implementation
Plan

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Understanding the Injection

Current Reality

UDE
UDE

TOC Injections

Existing Feature

Existing
Procedure

PIVOT

Future Reality

Low Performance

CCPM

TOC
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Overview of the TOC Solution

for Project Management
CCPM

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TOC Solution for

Single Project Management
Tactics:
The Project organization implements Critical Chain project management

Setting Up
Mindset:
Customer orders
are the
Prime Driver
the Drum

Planning
Planning
Injections 2-4

Execution Control
Execution Control
Injections 5-9

Commitment & Measurements

CCPM-Injection 1
Achievement of the delivery commitments is
established as a Prime Measurement for
managing project environment
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TOC Solution for

Single Project Management
Tactics:
The Project organization implements Critical Chain project management

Mindset:
Customer orders
are the
Prime Driver
the Drum
Injection 1

Planning
Injections 2-4

Execution
Control
Injections 5-9

Project Plan
CCPM- Injection 2

Critical Chain
CCPM-Injection 3

Buffers
CCPM -Injection 4

Project Planning Diagrams are in place

with tasks resourced and estimated for
duration (while estimates of durations
are challenging but achievable)

Critical Chain is
determined through
resolving resource
contention

Buffers are inserted

in strategic points

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Managing the Project Planning

The TOC way
What does it mean?
Managing Projects through CCPM means that project
managers handle the planning phase of the project
in a different way (to what they have done until
now)
Improved
There are three parts to the planning
performance
procedure containing:

Parts that stay untouched

Parts that are removed (*)

Current
Proposed

New parts that are introduced Current

System
Solution
System

Stopped/
Replaced

Stay

New

(*) Procedures the formal and the informal ways that are used during
planning
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Managing the Project Planning

The TOC way
Parts that have to be removed
Project Management is about managing
the flow of the project and bringing it
to the successful completion (time,
money and specifications)

Improved
performance

Current
System
Stopped
/Replace
d

Current
System
Stay

Proposed
Solution
New

The specs are the responsibility of the task performers

and their organization (under the resource manager
or subcontractor)
The money aspect is subject to the internal processes and
procedures of the company (SOP).
The TOC way suggest that the project manager should
focus on the time aspect of the project.
Hence the project plan should be devoted only to
managing the time!
10th International Conference of the TOC Practitioners Alliance - TOCPA

Project Planning the TOC way

Parts that have to be removed/stopped
The project plan is not for:
Planning resource load
Budgeting
Controlling the pay to subcontractors
It is just for managing TIME!

Improved
performance

Current
System
Stopped
/Replace
d

Current
System
Stay

Proposed
Solution
New

Therefore:
Task duration is the estimation elapsed time from start to
completion.
Task duration not less than 1 day and not more than 5% of
the project length.
Project plan is not To Do List every task is for concrete
deliverable.
Number of tasks in the project should be less than 300.
No fractional resource, no team, no specific resource just
skills, enough capacity for the majority of resources
Few CCR if at all!
10th International Conference of the TOC Practitioners Alliance - TOCPA

Managing the Project Planning

The TOC way
Criteria for a Good Project Plan

1.

Providing financial benefit by the successful

completion of the project on time, within budget
and according to the promised specification the
project generates Throughput for the contractor of
the project.
Injection 1

2.

Realistic the plan does not contain conditions that

are known to be unrealistic (such as resource loading
over 100% of available capacity).
Injections 2-3

3.

Immunized against disruptions (Murphy and

uncertainty).
Injection 4
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Managing the Project

Planning the TOC way
The quality of the Project Plan:
The quality of the project plan is critical for the
implementation of the planning phase.
In reality any mistake in the planning is caught at the
execution phase. However, correcting the mistake are
expensive.
The plan must reflect the views of the key stakeholders of
the project.
Technically the project should go through rigorous
check to ensure the structure is sound and is ready for
identifying Critical Chain and applying the Buffers.
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Project Planning
Example

CC Pulse project evaluation

Before planning phase
CC Pulse evaluates the
project network.
Problems highlighted in
red text must be fixed
before next step
.
Problems highlighted in
bold text are
recommended to be
fixed.

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Planning Injections 2-4

Planning Injections are NEW features of project management
Injection 2 Project Diagrams
New specifications
Existing project plans are subject
to rigorous logical checking and
ambitious time estimations.

Low
Performance

UDE
UDE

TOC
Injections

Existing
Feature

Existing
Procedure
PIVOT

TOC

TOC Direction of
solution

Injection 3 Critical Chain

New concept
Replacing critical path of the
traditional project management
with Critical Chain removing
resource contention.
Injection 4 Buffers
New concept
Conscious and open provision for
additional time to protect from
uncertainty.

10th International Conference of the TOC Practitioners Alliance - TOCPA

TOC Solution for

Single Project Management
Tactics: The Project organization implements Critical Chain project
management
Mindset:
Customer orders
are the Prime Driver
the Drum
Injection 1

Planning

Execution Control

Injections 2-4

Injections 5-9

Report & priority

Look ahead

Recovery

POOGI

CCRs

CCPM-Injection 5

CCPMInjection 6

CCPMInjection 7

CCPMInjection 8

CCPMInjection 9

Resource
availability is
monitored in
anticipation of
a new planned
task

BM for
recovery
actions is in
place

Buffer
penetration
reasons are
reviewed
periodically
for POOGI

Resources
are
monitored
as potential
Critical
Resources

Tasks are performed

according to the
status of their
corresponding buffers
through using Buffer
Management

10th International Conference of the TOC Practitioners Alliance - TOCPA

Managing the Project Execution

The TOC way
1.

Criteria for a Good Execution Control

Priority the process of assigning resources should
be linked to the overall importance of the project
and its own progress.
Injections 5-6

2.

Recovery the execution processes direct

management in taking actions that bring projects to
be back on course for on-time completion.
Injection 7

3.

POOGI - the system provides statistics to enable

management to continually learn and improve
planning and execution control.
Injections 8-9
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Execution Control Injections 5-9

Execution Control Injections are NEW features of project management
Injection 5 Resource assignment based on
buffer penetration New concept

Low
Performance

Priority is given according to the predicted completion of

the project as compared to the status of the other projects.

UDE
UDE

Injection 6 Monitoring resource availability New Concept

Feature

Project managers get early warning about the coming tasks to

ensure that the tasks can start without delays.

TOC
Injections

Existing

Existing
Procedure

PIVOT

TOC

TOC Direction
of solution

Injection 7 Recovery actions early enough New concept

Managers in the project get assessments of the project completion and prompt to take special
unplanned actions (affordable and not expensive) to reduce the risk of the project not
completing on time.

Injection 8 Statistics for continuous improvement New concept

A formal method to facilitate systemic learning through the use of statistics on blockages to
point management to areas that can improve future projects.

Injection 9 Critical resources New approach

Once certain resources are identified to be obstructing the flow of projects,
a special attention is given to properly utilizing and managing them.
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TOC Detailed Solution Design

High Performance
Measurements

Low Performance
Measurements
Criteria for good solutions:

- Improve performance
measurements of the function
- Improve performance of other
functions
- Improve the company bottom-line

UDE UDE
UDE

DE
DE

DE

UDE

DE

UDE

DE
DE
NBRs

C
A

TOC Injections

PIVOT
TOC

Future Reality

Current Reality

UDE

TOC direction
of solution

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