Lazarski, A., „Limitations of the Theory of Constraints and Goldratt concept in optimizing project portfolios”
Unpublished paper for newsletter: ‘ODiTK’, 02/10, 2010
Limitations of the Theory Of Constraints and Goldratt concept in optimizing project portfolios
It is hard to point out the beginning of the project management. But more important than history is current discussion taking place in literature to find the best methodology that would support project portfolios management. Productivity of project portfolio is limited by the constraint, like the speed of the car is mainly limited by the power of its engine. The problem is that constraints tend to be dynamic and “Assets constrained during one time period may be different from assets constrained in another” (Seider, 2006: 43). Therefore if someone would be able to track and manage current constraint then he would be also capable to maximise the throughput of the portfolio. It is said that Theory Of Constraints (TOC) was “Developed primarily by Dr Eliyahu M.Goldratt” (Mabin and Balderstone, 2003: 569). Also in his concept of Critical Chain (CC) Dr. M.Goldratt next to TOC assimilated time buffers method to secure project delivery date as well as to control the efficiency of the dynamic CC (Leach, 2000:118). Despite the above-mentioned advantages most of the TOC applications could be found not in the project portfolio management but in the manufacturing sector (Mabin and Balderstone, 2003: 574).