A Thesis defense

on
IMPROVEMENT OF PROJECT
PERFORMANCE THROUGH THEORY OF
CONSTRAINT; A CASE STUDY OF RURAL
ROAD CONSTRUCTION

Kailash Kumar Moktan

2014/Fall/CM/1013

Supervisor: Anjay Mishra

May,2018 1
Presentation Outline

1. Introduction
2. Statement of the problem
3. Research Questions and Research objectives
4. Significance of the study
5. Scope and Limitation of the study
6. Literature Review
7. Methodology
8. Results and Discussion
9. Conclusions and Recommendations

2
Introduction

Constraint

• A Constraint is a condition, agency or force that impedes

progress on objective or goal (Penneanen and Ballard 2004).

• Constraints should be identified, and described in as much as

possible during the early stage of a project.

• Constraints in construction projects limit their achievement of

high performance.

3
 Introduction

Constraint Contd..

• Identifying the constraints provides the practical steps for

making organizational decisions in which constraints exist.

• If constraints are better understood at the outset, it is believed

that better performance can be assumed.

4
Introduction

Theory of Constraint
• The Theory of Constraints is a methodology for identifying the most
important limiting factor (i.e. Constraint) that stands in the way of
achieving a goal and then systematically improving the constraint
until it is no longer the limiting factor (Lau & Kong 2006).

• Dr. Eliyahu Goldaratt conceived the Theory of Constraint (TOC),

and introduced it to a wide audience through his bestselling 1984
Novel, “The Goal”.

• Theory of constraints (TOC) can be applied to projects to improve

performance.

5
Introduction

•Theory of Constraint

•Goldratt introduce a new approach for project

management, Critical Chain (Jan & Ho 2006.).

•Critical Chain in a project is defined as the longest

sequence of activities from several different paths,
connected by activities performed by common resources.

•Critical Chain Project Management (CCPM) is a

methodology for planning, executing and managing
projects in single and multi-project environments

6
 Statement of the Problem

• The construction issues include workforce considerations,

safety, time constraints, resource constraints and the changing
nature of the work.

• Most of the road construction projects in Nepal, both completed

and ongoing are suffering badly from time and cost overrun and
its consequences.

• Delay has a frightening economic problem, which not only

wastes financial resources but also reduces the pace of
development activities

7
 Statement of the Problem

• To overcome such delay and overrun, effective planning

and scheduling is necessary. For effective planning,
scheduling and control, the identification of constraints in
the system is must.

• constraints should be managed effectively in view of

construction schedule planning and control.

8
 Research Questions

• What are the constraints in project scheduling incase of

rural road construction project?

• How the Theory of Constraints can be applied to the

project scheduling?

• How Critical Chain Project management approach can

improve the overall performance of the project?

9
 Research Objectives
General Objective
• The overall objective of this study is to identify the constraints in
the specified road construction project working environment and
apply the theory of constraints.

Specific objectives
• To identify the constraint i.e. weakest processes in the project
scheduling.

• To apply the Theory of Constraint (TOC) and Critical chain

concepts in road construction project to improve overall
performance.

• To access the application of CCPM approach for effective 10

scheduling.
 Significance of the study

• The reason behind the study is to deal with the project

constraints which can restrict the project performance.

• Introduction of the Theory of Constraints (TOC) approach and

Critical Chain Project Management in road construction.

• To elaborate the scope of Theory of Constraint (TOC) in case of

rural road construction as well as other construction project
management in context of Nepal.

.
11
Scope and Limitation of the study

Scope
• To deal with the different critical constraints and identification of the
critical chain in the proposed scheduling in rural road construction

• Applying the theory of constraint to overcome the drawback

regarding the traditional project scheduling technique which might
help to improve the overall performance of the project.

• Two rural road construction projects were selected which are under
construction by SNRTP, DTO/DoLIDAR.

12
Limitations
• Only Two sample projects are chosen for the application of
TOC and CCPM approach to reschedule the project.

• This study has intention to introduce the concept of Theory

of Constraints and Critical Chain Project Management
approach.

• This study thus may not generalize the voice of whole

approach regarding the Theory of Constraint (TOC) and
Critical Chain Project Management (CCPM).

13
Literature Review
Project Management
• Project management is the application of knowledge, skills, tools, and
techniques to project activities to meet project requirements.

• Project management is accomplished through the use of the processes such

as initiating, planning, executing, controlling and closing (PMBOK Guide)

• “A Project is a one-shot, time-limited, goal-directed, major undertaking,

requiring the commitment of varied skills and resources” (PMBOK
Guide).

• A successful Project Manager must simultaneously manage the four basic

elements of a project: resources, time, cost, and scope. Each element must
be managed effectively (S.Choudhary 2004).
14
Literature Review

Traditional project management planning techniques

• Critical Path method (CPM)

• Programme evaluation and review technique (PERT)

Problems with Traditional Project Management

• Traditional scheduling methods have been criticized for the
fact that they neglect human behavior (Stoop and Wiers 1996).

• CPM/PERT had to be improved to account for uncertainty,

human factors, lack of procedures for multi project
environment, problems related to frequently changing critical
15
path, lost focus, and ineffective monitoring procedures.
Literature Review
• Bad Multitasking
The process of stopping the work before it is completed, in
order to do other some work that is perceived as more urgent or
important, each time the task execution is stopped; there is
immediate loss of efficiency because of the need to remember
details in order to resume the task execution later (Kevin 2007).
• Student Syndrome
When Safety time is added in our estimates. People have the
tendency to wait until urgency (i.e. more trust and less attentive)
similar to the behavior of students that postpone their work until
exam deadlines. (Kalantar 2013).
• Parkinson’s Law
When safety time is added in our estimates, we feel more
comfortable and have no incentive to speed up our work.
Consequently, the work expands to fill the allotted time
(consumption of safety time). (Kalantar 2013).
16
Literature Review
Theory of Constraints (TOC)
• Dr. Eliyahu Goldaratt conceived the Theory of Constraint
(TOC), and introduced it to a wide audience through his
bestselling 1984 Novel, “The Goal”.

• The Theory of Constraints is a methodology for identifying

the most important limiting factor (i.e. Constraint) that stands
in the way of achieving a goal and then systematically
improving the constraint until it is no longer the limiting
factor (Lau & Kong 2006).

• TOC seeks to provide precise and sustained focus on

improving the current constraint until it no longer limit
throughput, at which point the focus moves to the next
constraint. (Jacob & William 2003). 17
Literature Review
The five focusing steps of TOC
Identify the
Constraint
Repeat The Exploit The
Process Constraint

Elevate The Subordinate &

Performance of Synchronize to
Constraint the Constraint

Source:
https://www.learnproduction.com/theory-of-c
18
onstraint
Literature Review
Theory of Constraints Applications

• Manufacturing
• Project Management: This is sometimes called Critical Chain
Project Management (CCPM), which is a method of planning and
managing projects that puts more emphasis on the resources used
to execute project tasks. The solution will tend to keep resources
levelly loaded, but will require them to be flexible in their
scheduling.
• Distribution
• Marketing and sales
• Finance

19
Literature Review
Critical Chain Project Management (CCPM)

• CCPM was developed by Dr Eliyahu Goldratt and was first

introduced to the market in his Theory of Constraints (TOC) book
“Critical Chain”, 1997.

• Critical Chain Project Management (CCPM) is a methodology for

planning, executing and managing projects in single and multi-
project environments.

• CCPM, as an application of TOC to project management, defines a

project as a chain of activities with duration as its core constraints.

20
Literature Review
Critical Chain Project Management (CCPM)

21
METHODOLOGY

22
Research Flowchart

23
Study Area

Dhadingbeshi-Sankosh Tipling Road

Bhimdhunga-Lamidanda Road

24
 Study Area

• Dhadingbesi Sangkosh Tipling road starts from the Dhadingbesi

bazar, the district headquarter of Dhading district and ends at
Kintagphedi Bazar. It passes through Nilkantha Municipality and
the VDCs of Kantunje, Jyamrung, Tripureshwor and Marpak.
The total length of the proposed working section is 30.88 Km

• Bhimdhunga Lamidada Galchhi road starts from the

Bhimdhunga bazar of Kathmandu district which is about 6Km
from Sitapaila of ring road, and ends at Galchhi Bazar of
Dhading district. It passes through Chhatredeurali, Jeewanpur,
Kewalpur and Goganpani VDCs. The total length of the proposed
working section is 11.58 Km from 18+420 to 30+000

25
 Data Collection

Primary Data Collection Secondary Data Collection

• Key informant Interview • Documents and Reports of
• Desk Studies SNRTP program unit and
DTOs.
• Case Studies
• Publications of various
• Questionnaire survey Project management related
researchers.
• Other published and
unpublished literature,
reports and journals.
• Internet and websites.
• Research Books.
26
 RESULTS
AND
DISCUSSION

27
 Constraints of Selected Project

Sankosh-Tipling Road

28
 Constraints of Selected Project

Sankosh-Tipling Road

29
 Constraints of Selected Project

Sankosh-Tipling Road

30
 Constraints of Selected Project

Sankosh-Tipling Road

31
 Constraints of Selected Project

Sankosh-Tipling Road

S-Curve (Dhading Beshi-Sankosh-Tipling Road)

Actual Start Dec 15, 2017

100.00%
90.00%
80.00%
Proposed Work Schedule
70.00%
%completion

60.00%
50.00%
40.00% Actual Progress
30.00%
20.00%
10.00%
0.00%
123456789111111111122222222223333333333444444
0 1 2 3 4 5 6 7 8 9 0 1 2 3Weeks
4567890123456789012345
32
 Constraints of Selected Project

Bhimdhunga-Lamidanda Road

33
 Constraints of Selected Project
Bhimdhunga-Lamidanda Road

• Scarcity of Fuel due to political Hindrances

• Unseasonal Rainfall
• Local Election in Province No.3
• Social issues leading to local disturbances at site
• Torrential rainfall consequently causing massive landslides
at various chainage and management of clearance of slides
• Restriction of District Coordination Committee (DCC) to
collect gravel and boulders from river and quarry sites
• Delay in Relocation of Services (Shifting of Electric Poles)
• Central and Provincial Level Election

34
 Constraints of Selected Project

Bhimdhunga-Lamidanda Road

35
 Constraints of Selected Project

Bhimdhunga-Lamidanda Road
S-Curve (Bhimdhunga-Lamidanda Road)
Actual Start Dec 15, 2017

100.00%

90.00%

80.00%

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
1 4 7 10 13 16 19 22 25 28 31 34 37

36
 Application of Theory of Constraint (TOC)
Sankosh – Tipling Road
Inserting Buffers to protect project deadline

37
 Application of Theory of Constraint (TOC)
Sankosh – Tipling Road
Application of Critical Chain Project Managment

38
 Application of Theory of Constraint (TOC)
Sankosh – Tipling Road
Buffer Penetration Management

33% 33% 33%

The project buffer of 30 weeks is divided into 3 parts,

first 33% part with color code “green” and 2nd part
with color code “Yellow” and remaining part with
“red”. While delay is encountered in critical activities,
the project buffer is consumed.
39
 Application of Theory of Constraint (TOC)
Bhimdhunga-Lamidanda Road
Exploitation of Constraint
•Review of quarry site for possible alternative quarry
location and coordination with district coordination
committee for extracting of materials from near river
bank by stating the project having importance of
connectivity of rural areas and implementing under same
governmental entity (District Technical Office).

•Setting of aggressive plans for completing the major

work processes (sub-grade, sub-base, base and
bituminous works) within specified periods

40
 Application of Theory of Constraint (TOC)
Bhimdhunga-Lamidanda Road
Exploitation of Constraint
•Removal of minor constraints (like economic,
environmental, socio-political issues) which can disturb
to major process implementation
•Provision of full staffing at the constraint processes
with surplus/backups.
•Mobilization of sufficient skilled workers with support
•Setting of Management plan for stock piling of
materials (river bed materials, crusher run materials,
sand, cement, reinforcement bars, bitumen), provision
for labor camp, facilities, health and safety.
•24/7 operation at the constraints (day/night shift).
41
 Application of Theory of Constraint (TOC)
Bhimdhunga-Lamidanda Road
Exploitation of Constraint
•Ensuring availability of gravel materials, bituminous
materials and equipments

•Uninterrupted consumables at constraint

•Rapid material movement before/after the constraint.

Monitoring the progress & improvement over time.

42
 Application of Theory of Constraint (TOC)
Bhimdhunga-Lamidanda Road
Subordination to above exploitation
•Transferring the resources to constraint processes which are
being used by non-constraint processes like earthworks, Stone
masonry works, gabion masonry works and those activities
have available float to complete, so that sufficiency of
resources to sub-grade, sub-base, base and bituminous works
are maintained.
•Backup system of material, manpower and equipment are
generated.
•Immediate problem solving team is formed and set under
alarm condition.

43
 Application of Theory of Constraint (TOC)
Bhimdhunga-Lamidanda Road
Subordination to above exploitation
•User committee members are motivated to solve social,
political and other environmental issues.
•Installing management hotlines and plant alarm at the
constraint.
•Monitoring the work progress to track it at day/night shift.
•Expediting as required to ensure uninterrupted supply to
constraint.
•Educating staff: Constraint first (tooling, maintenance and
material movement).
•Ensuring raw material availability at all times
•Ensuring the uninterrupted supply of resources to constraint at
all times. 44
 Application of Theory of Constraint (TOC)
Bhimdhunga-Lamidanda Road
Elevating the system Constraint

•Estimation of present and future capacity requirements.

•Investment to hire more skilled manpower to expedite the
performance of work processes
•Investment to supplying of quality of material without
interruption.
•Adding extra excavators, dumpers, tractors, rollers, graders
and other construction equipment so that it can be ensured the
equipment availability at all times.
•Establishment of efficient mobile crusher to produce
materials.
•Planning and execution of expansion-number of machine,
operators, spaces etc. 45
 Application of Theory of Constraint (TOC)
Bhimdhunga-Lamidanda Road
Elevating the system Constraint
•Upgrading of existing machine if feasible.
•Supplying of extra material from another source, so that surplus
of material is ensured.
•Purchasing sufficient facilitating materials to workers, so that
working morale of workers can be increased.
•Establishment of well facilitated site camp to operate official
works and worker camps with medical facilities.
•Investment to mobilize local public relation officer to solve
socio-political issues.
•Stocking of sufficient construction materials, fuel and other
required accessories.
•Investment toward the coordination expenses coordinating all
46
the stakeholders.
 Conclusions
and
Recommendations

47
Conclusions
At first, Study was carried out to identify the major constraints
in the road project.

•In this study of Sakosh-Tipling Road Project, the constraint as a

technical constraint i.e. change in design and survey report was
found as major constraint of the project schedule.
•The critical path itself is a constraint to the work schedule, thus
critical activities like mobilization and joint survey, General
works and site clearance, sub-base, base and shoulder works
were the identified constraint in the project schedule.
• It has been found that activities lying in the critical path are
completed only by 66.36% till study date. Thus improvement on
work progresses was required to overcome the delay caused by
constraints.
48
Conclusions
•Similarly, in this study of Bhimdhunga-Lamidanda Road
Project, The constraint as legal constraint caused by restriction
of District Coordination Committee (DCC) to collect gravel and
boulders from river and quarry sites was identified as major
constraint to cause delay.
•The activities lying on critical path such as major work process
Earthwork is completed only 29%, stone masonry work 50%,
Gabion works 50%, & Sub-base, Base/Shoulder and Bituminous
works are not started till the previously agreed date of
completion.
•Thus, application of Theory of constraint (TOC) was
recommended for removing those constraints.

49
Conclusions
-After identifying the constraints,
•In study of Sankosh-Tipling Road project, the Theory of
Constraint (TOC) was applied considering the human behavior
factors like Pakrinson’s Law and Student syndrome to manipulate
the activity time estimate to aggressive time estimate by creating
the time buffers in Critical Chain Project Management (CCPM).
•With application of Critical Chain Project Management (CCPM),
the project was supposed to be finished 30 weeks prior to
originally estimated date of completion if it has ideal condition.
However, several delay factors consume the time buffer like
feeding buffer as well as project buffer can make project delay
rather than ideal condition. But, CCPM ensures by early warning
of time consumption, timely completion of project as intended
date of completion.
50
Conclusions
•In study of Bhimdhunga-Lamidanda Road Project, the
generalized form of Theory of Constraint (TOC) was applied to
overcome the constraints identified.
•Exploitation of constraint was applied for improvement of
internal capacity to accelerate the output of the processes.
•Similarly, Subordination was proposed for assuring the
availability of resources within internal project environment.
•If performance of work process is not improved by managing
and effective utilization of the internal resources, extra resources
were proposed for its addition to constraint i.e. elevating system
constraint. Thus, with application of Theory of Constraint (TOC),
the project was supposed to be finished within intended date of
completion.

51
Recommendations

• Theory of Constraint (TOC) processes are very fruitful to break

the constraint and this is the milestone approach of project
management.
• To have a good understanding of the identified constraints at the
planning stages, it is suggested the project management to have
the constraints documented and to consider these constraints in
the relevant project planning agenda and schedule as well as the
designing of the organizational structure.
• At the implementation stage, the project team should keep track
of the progress and be aware of the constraints they encounter.
The management should ensure that enough resources, which
include money, facilities, staffing and effort, are allocated to
decrease the limitations from the constraints encountered.

52
Recommendations for further study

• The study focuses to identify the constraint and proposes the

application of Theory of constraint in the rural road
construction. Similar type of study can be replicated to find out
different major constraint in different other construction fields.

• Additionally, further research might help to develop the rough

idea of Critical Chain Project Management into a new, truly
superior project management discipline. Here, the most
important research issue should be how to keep the advantage
of buffer management while minimizing resource conflict.
Reviewing the inherent assumptions about human psychology
would also be expected to be of great use in gaining a deeper
understanding of the project management challenge.

53
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THANK YOU!!!

58