TOC for Compulink

Author: Dilip Thosar For Compulink December 2008

Theory of Constraints : Use in Software Business

Slide no. 1 July 2, 2012

Why ToC
Desire to Maximize Output working under operational constraints Maximizing output
define the goal Define metrics to measure achievement of goal

Operational constraints
Lead time to procure raw material Additional Investment Budget limits (usually 0) Negative lead time to deliver (Fire to fight)
Author: Dilip Thosar For Compulink December 2008

Theory of Constraints : Use in Software Business

Slide no. 2 July 2, 2012

What is THE GOAL

Absolute output desired : KISS it. UoM it Comparative Index (compare to input) Survival output Operational Metrics
Throughput, Inventory and Operating Expense

Global Optimum not local. Inventory is not throughput

Author: Dilip Thosar For Compulink December 2008

Theory of Constraints : Use in Software Business

Slide no. 3 July 2, 2012

The Constraint
System throughput governed by constraints Bottleneck
the workstation where capacity < demand

In reality: Bottleneck output defines system throughput Key analysis step: Identify the bottleneck

Author: Dilip Thosar For Compulink December 2008

Theory of Constraints : Use in Software Business

Slide no. 4 July 2, 2012

TOC: Its as simple as THAT!

Identify the constraint Exploit the constraint Subordinate everything else Elevate the constraint Go back to step 1
The Dilbert Principle: Anything I dont understand must be easy My corollary: Anything I do understand must also be easy
Author: Dilip Thosar For Compulink December 2008

Theory of Constraints : Use in Software Business

Slide no. 5 July 2, 2012

Some beliefs of the TOC religion

Multitasking is evil Put the bottleneck in the beginning Keep an increasing buffer of resourse over the flow Balance the Flow not the Capacity, to the Demand Real Manufacturing systems have only one or very few bottlenecks at any time.
Author: Dilip Thosar For Compulink December 2008 Slide no. 6 July 2, 2012

Theory of Constraints : Use in Software Business

Real story where ToC helped

The Problem
Sales system with a Global Footprint US global MNC captive India software unit Version ~4.1 implemented. ~4.2 under development with deadline ~Feb Team of 80 packed with schedule for 4.2 22 fires break out in 4.1. Showstoppers Team says impossible to do both 4.1 and 4.2 Egged on, puts up a 3000 man-hours solution Management simply says no to additional manpower and to pushing down deadline of 4.2 to dowse 4.1 fires Stalemate

SoS to ToC Heres the schedule and Skill BoQ for 4.1F 4.1F is 22 parallel projects on same source
Author: Dilip Thosar For Compulink December 2008

Theory of Constraints : Use in Software Business

Slide no. 7 July 2, 2012

Real story where ToC helped

Identify the bottleneck : the Project Lead
Multitalented: VB, SQL, architecture, knowledge of product WIP Inventory piled up before him in SDLC plan for each of 22 4.1F Had about 350 hours of 3000 allotted to him

Exploit the Bottleneck

Transferred all tasks which anyone else could do PL to document the checklist for SQL correctness and optimization, others to use Re-organized the QC to check anything before he saw it Put all his activities as first in the SDLC Also optimized the processes by standard ways. 3000->330 Brought down his time required to 16 hours. Added a buffer 8, and gave him 3 days to spare out of 4.2 TOTALLY into 4.1

Subordinate all else to the Bottleneck

Special Team of 7 juniors given 300 hours (one week) to complete his output. Buffered. Completed the job in 1 week, using only 7 of 80 from 4.1 team and PL for 2 days

Elevate the Bottleneck and repeat from step 1 on next bottleneck

not required at all!

Author: Dilip Thosar For Compulink December 2008

Theory of Constraints : Use in Software Business

Slide no. 8 July 2, 2012