Introducing Theory of Constraints in an MPA course

Introducing Theory of Constraints in an MPA course Bruce J. Neubauer Richard C. Gay Albany State University

What is Theory of Constraints? • • • TOC is a management philosophy based on systems thinking introduced by Dr. Eliyahu M. Goldratt. The constraint is what limits throughput or outcome. Challenges some of the core assumptions of scientific management.

What is a constraint? Assembly n Painting Inspection A constraint is what limits throughput of either an industrial or “business” process. Shipping

Identify the constraint. . . A constraint is what limits throughput of either an industrial or “business” process. Activity 7 Activity 8

A logical constraint is what prevents a program from being successful. n Critical success factors and necessary conditions are potential “show stoppers. ” TOC Intermediate Objectives map represented using Transformation Logic. Tree software

Some additional basic terms. . . n n n n Goal Critical Success Factors (CSR) Necessary Conditions (NC) Intermediate Objective (IO) Undesirable Effect (UDE) Causal relationship Feedback loop Root Cause (RD)

Some basic TOC diagrams. . . n n Intermediate Objectives (IO) map Current Reality Tree (CRT) Evaporating Cloud (ED) (Conflict resolution diagram) Future Reality Tree (FRT)

Intermediate Objectives (IO) map. . . n n n Goal(s) Critical Success Factors Necessary Conditions for achievement of Critical Success Factors

Current Reality Tree. . . n n The problem or lack The essential reasons for the problem/lack Undesirable effects Root causes

Evaporating Clouds. . . n n n Conflict resolution diagram Examine assumptions Identify needed “injections” Source: Clark Ching -- More Chilli Please Website http: //www. clarkeching. com

Future Reality Tree. . . n n n The goal achieved The CSF’s The NC’s Positive feedback loops Injections

The MPA course. . . n n PADM 5823 Albany State University Program Development, Management and Evaluation Spring 2009

The class project. . . n n To design a new youth recreation program for Calhoun County, Georgia so as to address multiple needs in the county. To do so using Theory of Constraints and Transformation Logic. Tree modeling software.

The software. . . n Transformation Logic. Tree

Calhoun County. . . n n n In rural Southwest Georgia Limited employment opportunities Limited recreational opportunities About 49% African American and about 49% White Growing Hispanic population Substantial adult rate of illiteracy

Class experiences. . . n n Construction of an Intermediate Objectives diagram was not difficult. Construction of a Current Reality Tree (CRT) was moderately difficult. Construction of Evaporating Clouds was confusing and difficult. Construction of Future Reality Tree (FRT) was difficult.

Suggestions based on experiences. . . n The instructor should first read Dettmer’s two books – q q n n n The Logical Thinking Process Strategic Navigation. Don’t assume that reading books is sufficient. Arrange to use TLT software with Dr. Mark Van Oyen If possible, find a “Jonah” as a resource for the instructor and students

More suggestions. . . n n n Approach this as an experiment. Don’t make it “high stakes” for students. Don’t assume that the models build on one another in a simple mechanical way. Use Evaporating Clouds (if possible) to explore and question assumptions and to identify possible needed injections. Work for enlightenment -- not mastery.

The End n n n Questions? Comments? Personal experiences?