Theory of Constraints and sustainability

Let me start by explaining what Theory of Constraints (TOC) is all about.

The TOC is a methodology developed by Eli Goldratt, where the constraints - bottlenecks - of the system are first identified and then the performance of the system is optimized based on those constraints. In the field of operations or production it would mean that the system has to be operated based on the slowest or bottleneck step of the process, i.e. the step having the smallest output capacity. The bottleneck step has to able to work in its maximum capacity, because it is the limiting resource for the whole system.

In project environment a single project TOC solution is known as Critical Chain Project Management (CCPM). The limiting constraint for the project performance is so called Critical Chain, which is the longest chain of dependent tasks, when both resource and task dependencies are considered. Resource dependencies in CCPM solution arise from the fact that resources perform one task at a time before moving to other tasks.

So, how does sustainability factor in? From the sustainability point of view a limiting resource or factor is often one of the natural resources or then emissions that need to be restricted. The rest of the system or the project has to be optimized so that the highest possible benefits are achieved when the system is running or project is finished. It involves rigorous analysis and planning at the initiation phase of the project, because often alternative ways to reach the project's objectives have to be identified by questioning the typical methods or ways of working.

A so called Logical Framework Approach (LFA), also widely known as Goal Oriented Project Planning (GOPP) or Objectives Oriented Project Planning (OOPP), which is mainly used for the design, monitoring and evaluation of international development projects, can be useful when analysing how the goals of project can be met. The logic behind the Logical Framework states that activities, when implemented, deliver outputs, which in turn achieve the purpose of the project and finally the overall goal will be reached, if assumptions at each step hold.

As an example let's think about an international development project, where the long-term goal of the project would be to develop the local communities and increase the co-operation between different local organizations and companies. Purpose of the project could be to increase the knowledge and capabilities of local actors. Outputs leading to the purpose would be the trained and educated local representatives. Activities leading to the outputs could be different local or international training programs. If one of the limiting constraints for the project were greenhouse gas emissions, then some alternative ways of implementing local training programs would need to be considered. Instead of trainers flying over even the initial training could be provided through virtual classrooms. Of course for them to be effective it could mean quite high investments for the training tools upfront. If, however, as often is the case, these tools would be useful in other training programs within the same project or in the future projects, the investment could be shared with all these initiatives.

Results of TOC (Theory of Constraints) implementations are often significant. Examples can be found on AGI - Goldratt Institute's website.