Theory of Constraints/Critical Chain Project
NAVSEA Newsroom
By Portsmouth Naval Shipyard Public Affairs Office
PORTSMOUTH, N.H.- NAVSEA has embarked on a plan to utilize a "Theory of Constraints" (TOC) project management methodology, called Critical Chain Project Management (CCPM), for all naval shipyards. The goal of the initiative is to reduce the cost of scheduled availabilities to recapitalize the fleet, support surge capacity, and support the "One Shipyard" initiative. CCPM is intended to reduce total cost by increasing the throughput at each shipyard. This article explains the fundamentals of TOC/CCPM and Portsmouth Naval Shipyard's transformation plan.
The Theory of Constraints was first introduced by Eliyahu Goldratt in his book, The Goal, in 1984. A five step process (shown below) is introduced to improve overall productivity:
1. Identify the constraint - the bottleneck to a process; 2. Decide how to exploit the constraint, e.g., work two shifts; 3. Subordinate everything else - use helping hands from other trades; 4. Elevate the system's constraint - hire more workers, cross train, restructure; 5. Go back to step one.
This methodology intentionally challenges the status quo. Previously it was thought that if every task was optimized individually, the optimum efficiency for the Shipyard would be achieved. Instead TOC focused on the optimum synchronization of all resources by finding and clearing log jams in the process.
An Example
An example from the first CCPM pilot availability at Portsmouth Naval Shipyard (NR-1) can be used to illustrate this method. Electrical work was noted to be backlogged for switchboard energization. Production work in this space was identified as the constraint. The constraint was elevated by assigning electrical personnel to this space 24 hours a day, seven days a week. Other resources were subordinated to those working in the area to ensure that work never stopped. The priority of the work was elevated by bringing in another foreman and more skilled workers.
Critical Chain Project Management
Critical Chain Project Management moves the TOC theory forward with the premise that managing resources among multiple projects is necessary to implement TOC. This theory integrates resource limitations into traditional critical path management (CPM). The Shipyard's current scheduling system (PSS) utilizes a CPM system that does not integrate the resource limitations. By contrast, Theory of Constraints and Critical Chain Project Management puts forward more than a scheduling resource management system. Its goal is to improve efficiency by reducing delays and achieving "relay racer mentality" with the critical chain work.
One Shipyard
All four Naval shipyards have purchased CCPM scheduling software call "Concerto" to perform the production tasks of a submarine availability. This tool will eventually be integrated into other shipyard systems such as the Advanced Industrial Management (AIM) System and the Performance Measurement and Control (PMC) System.
The NR-1 project team has identified many constructive CCPM improvements necessary for further implementation at the Shipyard. Following NR-1, Norfolk Naval Shipyard was the first shipyard to manage a large overhaul using CCPM and has created many written guidelines for the process. The USS Boise (SSN 764) DMP project team has streamlined weekly meetings with management focused on only the most critical tasks.
The recent completion of USS Louisville (SSN 724) at Pearl Harbor Naval Shipyard used CCPM to reduce overtime and increase work accomplished. PNS will carry the lessons learned from these projects implementing CCPM on USS Montpelier (SSN 765). Following Montpelier, work on USS Pittsburgh (SSN 720) will be executed with CCPM. The Shipyard has established a goal to shift overall project management to CCPM next spring.
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