Constraints

Business Performance Improvement using…
Gilb Methods + Goldratt’s Theory of Constraints
& some other stuff.
Chris Dale
Value Driven Planning Seminar 2006
Copyright © Business Transition Technologies Ltd 2006. All Rights Reserved.
www.btt-research.com
1
The Focus on the Project
Go
Ahead
Idea for
Project
Project
Project Outcomes
Onwards…
Copyright © Business Transition Technologies Ltd 2006. All Rights Reserved.
www.btt-research.com
2
Traditional Process
Idea for
Project
Build a
Justification
Business
Case
Project
Results
= Failure
The Weak Link is not necessarily the project !
Onwards…
Copyright © Business Transition Technologies Ltd 2006. All Rights Reserved.
www.btt-research.com
3
Traditional Process
Let’s start again…
Copyright © Business Transition Technologies Ltd 2006. All Rights Reserved.
www.btt-research.com
4
The Beginner’s Guide To Evo
How to do Evo - it’s taken me years to realise this…
+ Positive
‘Good Stuff’
0
- Negative
‘Bad Stuff’
Onwards…
Copyright © Business Transition Technologies Ltd 2006. All Rights Reserved.
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5
The Goals Set
+ 100%
+ 100%
0
- 100%
0
Reduced Administration Burden
0
Improved File Quality
0
Improved File Timeliness
0
- 100%
Improved Availability of Information
Approx £4.8K
per month
Improved Accountability
Improved Management Information
0
0
0
On to the Business Case…
Onwards…
Copyright © Business Transition Technologies Ltd 2006. All Rights Reserved.
www.btt-research.com
6
Corporate Goals
Business Performance
Improvement Aims
0
IE Table
0
Business
0
Case
the
‘Business System’
0
0
0
Onwards…
Copyright © Business Transition Technologies Ltd 2006. All Rights Reserved.
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7
What is the ‘Business System’?
Business Performance
Improvement Aims
0
0
The ‘Business System’
0
0
• Business Processes
• People
• Information Flows
0
• Technology etc
• Management Policies
0
What is blocking the Business System performance?…
Onwards…
Copyright © Business Transition Technologies Ltd 2006. All Rights Reserved.
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8
the Business System Constraints
Business Performance
Improvement Aims
The constraints stand between you and the objectives
Constraint 1
The ‘Business System’
Constraint 2
0
0
0
0
Constraint 3
0
0
The constraints need to perform better…
Onwards…
Copyright © Business Transition Technologies Ltd 2006. All Rights Reserved.
www.btt-research.com
9
How well the Constraints must Perform
Business Performance
Improvement Aims
+100 %
+100 %
0
• Goal Level
0
• Goal Level
0
• Fail Level
• Fail Level
-100%
-100%
0
The ‘Business System’
0
0
0
+100 %
0
• Goal Level
• Fail Level
0
-100%
The plan to deal with all that….
Onwards…
Copyright © Business Transition Technologies Ltd 2006. All Rights Reserved.
www.btt-research.com
10
Business Capabilities & Results
Translating Constraints Improvement… into an Evo Plan
Time scale: 2-4 week cycles/transitions
Onwards…
Copyright © Business Transition Technologies Ltd 2006. All Rights Reserved.
www.btt-research.com
11
The ‘Business Performance Improvement System’
Onwards…
Copyright © Business Transition Technologies Ltd 2006. All Rights Reserved.
www.btt-research.com
12
Copyright © Business Transition Technologies Ltd 2006. All Rights Reserved.
www.btt-research.com
13