The implementation of theory of constraints in a multiproject environment : an action research approach

Abstract

This study used action research to study the implementation of Critical Chain methodology in a multi-project environment. It used a medium sized company, which is an original equipment manufacturer, but due to the complexity of the equipment each is executed as a project. This creates a multi-project environment.The object of the research was to find the contributing and inhibiting factors to CC implementation. It further sought to discover improvements in business performance due to CC methodology.The study found resistance to change prevented CC implementation. The resistance to change was supported by incorrect application of CC principles and a false sense that CC is contributing to the business. On business performance improvements it was found that order intake improvements of thirty seven per cent year on year and reduction in lead time of projects due to implementation of CC principles. The latter also opened new markets which strategically benefitted the company.