DOUBLING THROUGHPUT WITH OPTIMIZED CYCLE-TIME FLOW (OCF) STRATEGY

Despite the availability of advanced managerial tools and technologies for project planning and control, projects failing to meet schedules and budget targets remains a common phenomenon. We argue that a root cause for these failures is the absence of strategic planning. Optimized Cycle-time Flow (OCF) is a strategy developed by Intel Inc., that enables teams to plan portfolios of projects subject to resource constraints and the principles of flow, while avoiding the pitfalls of the planning fallacy and unnecessary time-extensions. This paper presents a thorough exploration of OCF through a case study in a typical installation project, one of the first OCF implementations. Practical applications of the principles of OCF are explored through analysis of construction plans and interviews with key personnel. The paper provides supplementary observations and validation of empirical findings regarding the effectiveness of OCF. The multi-project environment and the sense of urgency to reduce time-to-market are recognized as a catalyzer for OCF. The case study highlights the importance of critical production thinking as manifested in the first two OCF principles: “Plan and Integrate Strategically” and “Plan Tactical Targets”.