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|TOCICO Thinking Processes Annotated Bibliography By James F. Cox III|
Listed below is an annotated bibliography of the presentations on the TOC thinking processes made at the annual TOCICO International Conference (2003-2013) and TOCICO webinars (2010-2013).
This presentation discusses the scope of medical errors and compares the number of deaths from medical errors (98,000) to traffic deaths (43,000), deaths from cancer (42,500), and deaths from AIDS (16,500). Patient case studies are described illustrating the causes of medical errors. The thinking processes (TP) are used to analyze this medical errors case; to develop a solution to prevent the errors; and to establish consensus among medical professionals. Several undesirable effects (UDEs) were surfaced related to the medical errors; the three-cloud approach was used to build a generic core conflict cloud. This cloud was comprised of objective (A) To provide high quality (e.g. timely and safely) care for each patient; (B) Respect autonomy of each professional to maximize their activities; (D) Work independently and have the responsible physician manage patients; (C) Reduce risk of medical errors and check the status during the process; and (D’) Work as a team based on standardized processes. The current reality tree was built connecting all UDEs. The assumptions of the core conflict cloud were surfaced and injections identified. The future reality tree was constructed to achieve the desirable effects based on the injections.
Arai, H. (2009). Myths about product registration of medical devices in Japan. TOCICO International Conference: 7th Annual Worldwide Gathering of TOC Professionals, Tokyo, JP, Goldratt Marketing Group.
Due to its rapidly aging population, Japan has been a very attractive market to medical device manufacturers. This presentation introduces organizational efforts for improving its performance using the concepts of TOC, such as critical chain project management (CCPM) and the thinking processes (TP). Internal touch-time to register a product has been shortened by about 30-70% in a multiple projects environment with less people and without compromising compliance.
The Viable Vision (VV) strategy and tactic (S&T) trees are both powerful and insightful, but present apparent divergence with previous well-established TOC processes, in particular the thinking processes and the five focusing steps. This presentation closes these gaps and presents the inner structure of the VV S&Ts and how they should be understood both in terms of modifications and in terms of execution.
Baptista, H. (2009). Weaving together the thinking processes and the strategy and tactic trees. TOCICO International Conference: 7th Annual Worldwide Gathering of TOC Professionals, Tokyo, JP, Goldratt Marketing Group.
This presentation was given by Guilherme Almeida. In the past few years strategy and tactic trees (S&T) re-emerged as a powerful tool to guide large projects like Viable Vision (VV) ones. The cause-and-effect logic is apparent in the S&Ts, but it is not clear how the S&Ts relate to the thinking processes (TP). This presentation maps the logic and communication used in the TP and the S&Ts to their roots and reconnects these two thinking tools. The presentation covers where the TP intersects with the S&Ts and where they don’t, what the boundaries and applicability of each are and how they should be used in concert.
Baptista, H. (2012). Three layers of cause and effect. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
The TOC thinking processes (TP) capture and communicate effectively a number of instances of cause-and-effect logic, but sometimes even a sound logic TP diagram may not capture nor communicate a good enough model of reality. In this presentation besides the causality layer two other layers of assumptions that underpin cause-and-effect thinking as well as practical examples of their use are presented. Then the consequences for the form and use of TP tools are explored.
Baptista, H. (2013). Three layers of cause and effect (Encore). TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
The TOC thinking processes (TP) capture and communicate effectively a number of instances of cause-and- effect logic, but sometimes even a sound logical TP diagram may neither capture nor communicate a good enough model of reality. In this presentation besides the causality layer two other layers of assumptions that underpin cause-and-effect thinking as well as practical examples of their use will be presented. Then the consequences for the form and use of TP tools will be explored.
Baptista, H. (March 19th, 2010). Weaving together the thinking processes and the strategy and tactics trees. TOCICO Webinar Series. TOCICO, Theory of Constraints International Certification Organization.
In the past few years Strategy and Tactic trees (S&Ts) re-emerged as a powerful tool to guide large projects like Viable Vision ones. The cause-and-effect logic is apparent on the S&Ts, but it is not clear how do the S&Ts relate to the thinking processes (TP). This presentation maps the logic and communication used in the TP and the S&Ts to their roots and reconnects these two thinking tools. The presentation will cover where the TP intersect with the S&Ts and where they don’t, what are the boundaries and applicability of each and how they should be used in concert.
Barnard, A. (2003). Insights and updates on the theory of constraints thinking processes. TOCICO International Conference: 1st Annual Worldwide Gathering of TOC Professionals, Cambridge, England, Goldratt Marketing Group.
The objective of this presentation is to share some insights for further development on simplifying and possibly improving some of the key TOC thinking processes (TP) tools used to enhance our ability to construct and communicate solutions that solve problems… The presentation is organized to provide: 1. An executive overview of the TOC describing how the TP simplifies complexity by providing the processes and insights to find the few leverage points that govern performance for building the necessary levers (holistic rules) to improve the system as a whole. 2. The Viable Vision is applying the TOC five-focusing steps to the boardroom and using the TP to overcome situations where the company is stuck… 3. Strategy & tactics (S&T) tree can be used to expose inherent conflicts, to identify the problems that block exploitation and/or elevation as the starting UDEs to improve speed and reliability of the analysis. Five types of assumptions can be used to check S&T logic: 1. Assumption of group sufficiency –missing link. 2. Assumption of part sufficiency – weakest link. 3. Assumption of part necessity – conflict condition. 4. Assumption of best alternative – best practice considering limitations. 5. Assumption of sequence – focus/priority condition. The causes of these erroneous assumptions are due to a lack of understanding of the system not understanding the governing laws and its system constraint.
Barnard, A. (2007). Doing MORE with LESS in LESS TIME within the public sector in Africa. TOCICO International Conference: 5th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NV, Goldratt Marketing Group.
The simplified TOC TP roadmap is used to find and overcome limiting paradigms/rules. This presentation describes each step of the simplified TP process: Step 1. Why change. Step 2. What to change. Step 3 To what to change. Step 4. How to cause the change. Step 5. How to measure and create POOGI. In step 1 the five focusing steps and thinking processes are used in identifying the inherent potential or performance gap. In step 2 insights are gained by defining UDE’s as unresolved conflicts. In step 3 four simple ways to break any conflict with a win: win solution are given. The application of the approach to a public sector case study on solid waste management and water supply management in four locations is provided.
Barnard, A. (2013). Strategy and tactic (basics workshop). TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
The introduction by Dr. Eli Goldratt in 2002 (Goldratt 2002) of a 'new' TOC-based Thinking Process (TP) called a 'Strategic & Tactics' tree (S&T) is being viewed by more and more executives and managers, as one of the most important breakthroughs in ensuring that holistic business or organization strategies are defined, properly validated, communicated and implemented to achieve harmony within organizations. The S&T can for the first time provide us with a practical process and logical structure for defining and communicating all the necessary and sufficient changes as well as the sequence of implementation of these changes to achieve more goal units for the organization. It not only answers the question WHAT and HOW, but as importantly the WHY. This Basics Workshop provides attendees with an introduction to Strategy & Tactic trees, how to create and use these to communicate changes within an organization and also how organizations can use these to address the common engines of disharmony within organizations that waste their scarcest resource – management attention. The workshop includes a real-life example and new developments to significantly simplify the process to create and validate S&Ts.
Bergland, S. and Z. Bar-El (2008). Breaking the market constraint - The speed to invent. TOCICO International Conference: 6th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
This presentation describes breaking a market constraint using the thinking processes and TRIZ. The customer doesn’t want a product or service but a solution to their problem. The solution must provide a win-win for the customer and the supplier. Your company must construct an unrefusable offer (URO). Five steps in constructing a URO using the thinking process are: 1. Determine the core conflict responsible for some/many of the market’s significant problems. 2. Determine what changes your organization must make internally to solve the market’s core problem; 3. Construct a solution, an offer your organization can provide to resolve that core conflict; 4. Develop an implementation plan that addresses the obstacles blocking the implementation of the solution; 5. Learn how to sell the URO to the market, as well as to your own organization. TRIZ is described including Anticipatory Failure Determination, Directed Evolution, Inventive Problem Solving, and Control of Intellectual Property. The use of S-curve analysis and TRIZ is discussed with examples illustrating innovative solutions. The TP can then be used to understand the undesirable effects of the customer that your organization can impact to create a competitive advantage.
Systems theory is a collection of models and approaches that distill a wide variety of observed phenomena into what is hoped is a coherent, integrated framework. Necessity requires that all modeling collapse some dimensions in order to focus attention to particular concerns. Thus, all of our systems approaches are necessarily incomplete.
Chaudhari, C. (2013). Application of TOC in the live animal farming’ industry. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
Five focusing steps, and several TOC solutions / processes are widely used in various industries for improving the performance of a system. However TOC solutions are not implemented / developed widely in the industry that deals with ‘live animal farming’. These environments are much more complex than any other environments as it deals with ‘live animals’. Some of unique characteristics of this environment makes it challenging to manage i.e. inventory of live animals can’t be held for too long as it consumes food (truly variable cost (TVC) goes up), mortalities reduces potential throughput, sales price of products vary on a daily basis like other commodity, etc. When the authors could not develop a good solution using the ‘five focusing steps’ implementation in ‘live chicken farms’, they applied the ‘thinking processes’ (TP) to develop TOC-based solutions. Implementation of the solutions in a chicken farm environment delivered good results in very short time. The process was further converted into a standard guideline/process for analyzing other ‘live animals farming’ environments. Processes were tested to develop solutions for ‘cow farming’, ‘calf growing’ and ‘pig farming’ environments. With the help of some relevant companies, solutions for ‘cow farming’ and ‘calf growing’ environments were practically tested.
Choi, W. (2009). Using TOC thinking tools to write a logical argumentative composition. TOCICO International Conference: 7th Annual Worldwide Gathering of TOC Professionals, Tokyo, JP, Goldratt Marketing Group.
While there are numerous applications of TOC thinking processes (TP) in the business sector and other non-business sectors such as education field, it is very hard to locate the application of TP in writing a rigorous composition. It is not the technical skill of expression but the thinking capacity that is the most important ingredient for writing a good logical argumentative composition. In order to write a good argumentative composition, the framework of the logical development based on the critical thinking should be designed first. This presentation describes such an approach.
While there are numerous applications of TOC thinking processes (TP) in the business sector and other non-business sectors such as the education field, it is very hard to locate the application of TOC TP in writing a rigorous composition. It is not the technical skill of expression but the thinking capacity that is the most important ingredient for writing a good logical argumentative composition. Explicit analysis of the issue should be made thoroughly and the foundation for the argument should be provided to communicate the idea to the others effectively. In order to write a good argumentative composition, the framework of the logical development based on the critical thinking should be designed first. In this presentation, it will be shown how the TOC TP can be effectively used to build up the framework of the logical argumentation. The process of using the TOC TP for writing an argumentative composition will be introduced along with a standard template of the use of the TOC TP. Experiences with this template and its extensions will be shared in this presentation.
This presentation describes a project of TOC for Education in Malaysia describing what to change, what to change to and how to cause the change, the project 100 clouds and the analysis, findings, and implications of the project. This history of TOCfE in Malaysia is provided. The project 100 clouds is described. The goal of the project was to give students the problem solving skills they needed. 100 students ages 13-14 from three schools were taught the evaporating cloud tool and constructed one cloud a day for 100 days. A post-test was given to the students that completed the assignment to see if they internalized the use of the evaporating cloud in their problem-solving skills. Some students did not complete the assignment, others did not take the post test, some that completed the 100 clouds did not internalize the issue of the tool, etc. The results are presented for each grouping. The primary conclusion was that most children that completed the assignment learned to use the cloud in their lives.
This presentation describes the use of the letter U to link the parts of a TOC analysis and solution together. The left side of the U-shape represents the problem with the top being the poor performance measures, the middle representing the undesirable effects analysis and the bottom left being the core problem (using the evaporating cloud). The middle of the bottom of the U-shape represents the pivot point from the current reality on the left side to the desired or future reality on the right side of the U-shape. This left side is devoted to an understanding the problem (what to change) while the right side of the U-shape is devoted to the solution (what to change to). Opposite the core problem on the left side of the U-shape is TOC direction of the solution; opposite the UDE analysis of the current situation (current reality tree) is the elements of the solution (future reality tree); and opposite the poor performance on the left side is the high or desired performance on the right top of the U-shape.
Consulting, G. (2009). The strategy & tactic tree: Consumer goods MTS > MTA; Viable Vision implementations. First European TOCICO Regional Conference, Amsterdam, The Netherlands, Goldratt Marketing Group.
The consumer goods strategy and tactics tree (S&T) is presented through level 5. The build, sustain, and capitalize stages are provided with the decisive competitive edges. Each panel is provided giving the necessary assumptions, strategy, parallel assumptions, tactics and sufficiency assumption.
The retailers strategy and tactics tree is presented through level 4. The build, sustain, and capitalize stages are provided with the decisive competitive edges. Each panel is provided giving the necessary assumptions, strategy, parallel assumptions, tactics and sufficiency assumption.
This presentation describes Dixie Iron Works journey in Theory of Constraints. Founded in 1933 in Alice, Texas, the TOC journey started in 1992. Dixie Works was declined as a Viable Vision client. Dixie Iron Works is in the oil field business making high pressure plug valve (small valve $800) and high pressure well pumps ($250,000) with 158 employees never having a layoff. Facilities are also in Canada and one coming up in Mexico. In three weeks of implementation we got rid of all work-in-process shelves. Last year had a 48% growth in revenue with a 141% growth in profit. Sales buy-in was instrumental in this significant growth. Prior to the last year or so we had only drum buffer rope (DBR) implemented and did not leverage it to the market.
de Almeida, G. V., et al. (2012). Two sides of the same coin – a sharper look on two organizational cultures. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
The TOC thinking processes (TP) capture and communicate effectively a number of instances of cause-and-effect logic, but sometimes even a sound logic TP diagram may not capture nor communicate a good enough model of reality. In this presentation besides the causality layer two other layers of assumptions that underpin cause-and-effect thinking as well as practical examples of their use are presented. Then the consequences for the form and use of TP tools are explored.
Caesar is a medium-sized information technology (IT) company based in The Netherlands. From 1995 when Caesar was founded until 2001 Caesar grew steadily. Following an operational excellence strategy Caesar was able to deliver high quality IT specialists for very competitive prices. This strategy however proved to be recession-prone. The recession of 2001 – 2002 hit the company hard. Looking for a way to build a stronger competitive edge Caesar embarked on a journey with Eli Goldratt in 2004. The ambitious target was to build an IT company that would deliver all its projects on time (with the right scope and for a fixed fee). At that moment (and many years before and after it) project performance of IT companies was poor: typically 60-70% of IT projects fail to deliver the right scope on time and within budget. In 2004 Caesar did not outperform the market average. In the first six months of 2005 we implemented a new way of working. The core improvement implemented in this period was critical chain project management (CCPM). Although this proved a necessary component it was not sufficient to reach the goal. A major cause for project failure – at least in IT projects – is uncontrolled scope creep. Applying critical chain allows for some scope creep to be absorbed but we found that an extra injection was necessary: a scope management process that would minimize scope changes to only the most crucial. We developed PDSM – problem driven scope management – using the TOC thinking processes (TP) at the initiation phase of each project to define the basis for the project scope. With a clear problem definition we found that we could effectively manage the project scope during the execution of the project. So much so that we can guarantee customers that we will solve their problem on time and for a fixed fee. The guarantee includes a penalty for late delivery. This unique approach was named Time Value. In the first months of operation this combination of CC and PDSM gave us very promising results: our DDP in 2005 was 80%. As we took on more projects and more complex projects we found a number of other process improvements (mainly from the lean / agile) were necessary to maintain a high DDP. Using the TP in our own organization to understand the problems and develop and implement solutions, we have been able to constantly improve our performance. In the last three years this has resulted in 95%+ due date performance on our IT projects.
The panel consists of Michael Demere (moderator), his wife, an engineer several years removed from college, a college student and a high school student. Their insights into attending the Odyssey course, their experiences using the thinking process tools, the value of the tools, etc. are discussed.
Dettmer, B. (2008). Changing the status quo - Boyd's OODA loop and the constraint management model for strategy development and deployment. TOCICO International Conference: 6th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
The presentation describes: 1. Why apathy (or resistance to change) occurs; 2. The cognitive side of change; 3. A change strategy (blueprint). Why do most clients think you did a great job in presenting then nothing happens? Logic is not enough; you must overcome emotion, behavior and motivation. These are likely to outweigh your logic. Efrat’s cloud of A Happiness B Satisfaction D Initiate change C Security and D’ Resist change is discussed. Mental maps, technology adoption life cycle, risk aversion verses risk takers, paradigms, etc. are described and how they might fit with Efrat’s cloud. A change implementation model is described.
Dettmer, B. (2008). Intermediate objectives map: The cornerstone of the thinking process. TOCICO International Conference: 6th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
This presentation discusses a little used tool in the theory of constraints thinking processes (TP), the intermediate objectives ((IO) map. Shortcomings of the future reality tree and evaporating cloud lead to the investigation of the use of the IO Map to overcome these shortcomings. The presentation discusses the TP background, the role of a goal and necessary conditions, functions of the IO map, and a practical exercise. The original TP tools and their sequence in use was current reality tree, evaporating cloud (EC), future reality tree (FRT), prerequisite tree (PRT), and transition tree (TRT). While the current reality tree (CRT) was the first and most critical step as this represented the identification of the core problem several problems existed: ponderous, too complex; too many undesirable effects and difficulty in reaching a single core problem. The process needs focus to avoid vague undesirable effects (UDEs) unrelated to the goal. The process should include: 1. Define the system in question; 2. Articulate the goal of the system; 3. Determine the critical success factors (a few instrumental terminal outcomes); 4. Define supporting necessary conditions (usually high-level, functional in nature). The IO map consists of a hierarchy from goal to critical success factors to necessary conditions to…. The benefits of an IO map are discussed. System boundaries are illustrated; span of control and sphere of influence are discussed. A simple IO map for a manufacturer is provided. The IO map may be used to identify the UDEs that should be used in the CRT. This will help eliminate trivial UDEs and simplify the CRT.
Eckerman, D. (2005). Breaking through In a sixty year culture at LeTourneau, Inc. using TOC. TOCICO International Conference: 3rd Annual Worldwide Gathering of TOC Professionals, Barcelona, Spain, Goldratt Marketing Group.
LeTrourneau (LT) is headquartered in Longview, Texas with manufacturing locations in Longview, and Houston TX and Vicksburg, MS and with dealer locations worldwide. Markets served include controls, drive systems, intermodal mining, drilling, forestry, marine, and steel. LT characteristics include: 1. Product leadership makes the largest products in the world. Jack-up rig sells from 150 million to 300 million dollars. It is delivered as a kit valued at about 40 million then is built with about a million man-hours as a 1 to 3 year project. 2. Make steel from scrap making thick plates 2-10 inches. 3. Build front-end loaders 7000-75000 parts works 8 years with over 90% uptime. 4. Have produced most of these products for over 50 years. We have only been in the drilling market for five year. We are heavily vertically integrated which is unusual for heavy equipment manufacturers. Typical UDEs include long lead times, high WIP, high obsolete inventory, very low inventory turns, low on-time delivery, high overtime and expediting, exiting markets due to pricing competition, poor cash flow, and low ROI. Total reliance was placed on GAAP for decision making for product pricing, transfer pricing, sourcing, capital expenditure, product profitability, etc. In 2000 we implemented drum buffer rope (DBR), installed MAPICS finite capacity planning module causing on-time delivery to increase from 10 to 75%. In 2004, Constraint Management Group (CMG) worked with LT providing the Jonah program. In 2005 we implemented TOC company-wide. The core conflict was A Maximize LeTrourneau ROI with B Meet LeTourneau’s customer and market requirements and opportunities requiring D Focus and act on company performance and the other requirements C Maximize margins and metrics under my control requiring D’ Focus and act on local performance. The primary injection was simple correct signals between business groups (BGs) and resources that maximize company throughput, net profit and ROI. The planning and control dilemma existed also. One strategic point was selected for each BG and component group. When we turned on the buffers we found we were working on green items (early items) when we had a lot of items in red (almost late). Steel Group implementation results showed previously poor financial performance to extremely profitable and included productivity increased 25%, WIP inventory decreased 25%, cycle time decreased 64% (14 to 5 weeks), on-time delivery increased from 50 to 90%, and plate inventory held decreased 2.6 million dollars.
Eekenulv, S. (2013). Integrating LTP and requirements engineering modelling for effective software development. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
When combined with the best of UML & SysML the LTP can create a natural extension to the working requirements engineer. For this to happen we must be able to integrate them and challenge the common product focus of most software engineering projects. We need to discover and explore the real needs and goals of the relevant stakeholders. One of the problems in software development is the confusion regarding stakeholders and 'systems'. The lack of real understanding of 'the real system' (the area of work and its context) has created an unhealthy focus on the 'automatic system', towards which all use cases are written and on which most models has their focus. LTP can highlight some of the flaws in the current ways of working in software development. We need a visual logical representation to be able to decide what should be reused and what we must develop. This knowledge of real needs, ideas, driving forces, expectations and causality beliefs must be distributed to a set of requirements constructs (functional requirements, quality requirements, constraints, business rules, etc…) to effectively communicate relevant information to both stakeholders and development teams.
This presentation describes a survey of what customers are saying about ERP, the core problem of ERP and the direction of solution. The supply chain strategy group brainstormed their ERP customers’ undesirable effects (UDEs) then surveyed a representative sample of their customers to determine their validity. The 19 UDEs included: software was way too expensive to maintain; we hardly realize the value in the system, before we have to start upgrading it again; we don’t get good enough business insight out of all the money spent on our ERP solution; our ERP system cannot keep up with the pace of change in our business and industry; we cannot ad3quately leverage our investment and instead have to buy additional software modules: etc. The evaporating cloud (EC) core conflict of the customer is A Successful IT strategy B The IT must support flexible and emerging business models the action D Adopt more industry-specific complexity but on the other requirement the software vendor must find ways to C Reduce cost of ownership which requires actions to D’ Remove complexity. The cloud and the associated assumptions plus a current reality tree are provided. The injection breaking the generic cloud is to build an architecture that will permit more mix-and-match without the requirement for full upgrades.
Fedurko, J. (2013). Looking into UDE clouds – How to get them right. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
Among the different cloud types, the UDE cloud is most challenging and demanding as it requires the biggest number of skills and has the highest degree of responsibility as it seeks to solve a system, rather than an individual, problem. The major role and contribution of the UDE cloud is to unfold a manager’s understanding of their reality and to guide their thinking to allow them to take conscious actions that will significantly improve the performance of their systems. At the same time mistakes in UDE clouds could throw the whole system into actions that can be harmful. The key processes of working with UDE clouds are: • identifying and wording several UDEs; • constructing each individual UDE cloud in such a way that it will manifest its respective UDE and be logically sound; • consolidating UDE clouds to identify a more generic cloud; • revealing assumptions justifying logical connections; • challenging assumptions and finding a solution through designing an injection/ set of injections. Every process is a demanding logical work. In this master class we will look into two areas: 1) while building an UDE cloud o difficulties to determine what is in box B, which leads to a common mistake of a mirror reflection between an UDE and boxes B and/or D; o difficulties in wording C as a system’s Need; 2) while consolidating o difficulties in finding a common aspect among the consolidated entities. Inability to overcome these difficulties in a quick and effective way leads UDE cloud users to become frustrated and discouraged when they feel that they are unable to consolidate, or that building UDE clouds did not add to their understanding of their reality. In the master class we will look into examples of common mistakes, and offer concrete techniques to help with both building a good UDE cloud and the consolidating process.
Fedurko, J. (Jan. 10th, 2013). Typical mistakes in surfacing assumptions in the cloud and how to correct them – Working with examples. TOCICO Webinar Series. TOCICO, Theory of Constraints International Certification Organization.
The quality of the solution to break the cloud depends on the quality of assumptions that should be surfaced under the logical connections in the cloud in the search of the one(s) that can be challenged and negated. This in effect makes the cloud 'raw material' for finding assumptions, which in their turn become 'raw material' for finding a solution. In the webinar we will look at typical mistakes in surfacing assumptions and will work with examples to see how to develop good quality assumptions and how to improve the ones that have already been suggested but do not qualify as 'good quality'.
The thinking processes (TP) are a powerful set of methods for improving your critical thinking skills. The tool set consists of generic processes for addressing what to change, what to change to and how to cause the change. This webinar provides an overview of each of the TP tools: the evaporating cloud, current reality tree, future reality tree, negative branch reservations, prerequisite tree, transition tree, strategy and tactic trees, the plus and minus-minus buy-in processes, and the four viewpoints of change.
Gilani, R. (2003). Increasing cash for manufacturing organizations through theory of constraints. TOCICO International Conference: 1st Annual Worldwide Gathering of TOC Professionals, Cambridge, England, Goldratt Marketing Group.
This presentation describes situations where cash is the constraint and actions that will eliminate that constraint. Some cash draining practices of cash starved organizations are purchasing more than immediate requirements to take advantage of quantity discount; combining supplies to get freight advantage; producing more than immediate requirements for better capacity utilization; not selling obsolete material below purchase price / book value. Exploiting a cash constraint means rotating the cash faster: reduce cash to cash cycle time; reduce cash collection time (Receivables); reduce manufacturing lead time (not processing time), and thereby WIP, and FG inventory; reduce supplier lead time, and thereby RM inventory. Do not waste idle cash in the form of surplus / obsolete material and equipment. Exploiting the cash constraint means shrinking collection time, raw materials lead time, shrinking manufacturing lead time. Exploiting the cash constraint also means selling surplus / obsolete materials.
Eli discusses Odyssey course, S&T tree, the ability to separate levels of importance in a discussion, better relations with our parents, etc. He describes the uses the TP to examine every facet of our life. He also describes the use of the CRT to predict economic downturns. What is our role? We start with a typifying effect. What is the typifying effect of our economy for last 20 years? The lifetimes of products in more and more industries are shrinking rapidly. If the lifetime of the product shrinks (and shrinks) and the development time is the longest factor in the time then there must come a time when development time exceeds lifetime. The only thing a company can do is to shrink the development time. An example is PCs.
Goldratt discusses writing the introduction (chapter 1) of the Theory of Constraints Handbook. What is TOC? Focus: do what should be done and don’t do what shouldn’t be done. Throughput accounting was developed about 1981. In about 1985 other environments wanted a solution. Bottleneck was used. Critical path was developed in 1958. The critical chain was developed about 1986. The constraint was the critical chain which represents the time it took to complete the longest path of dependent activities based on technological sequence and resource dependencies. The name theory of constraints was formulated based on this understanding of a different (project versus production) environment. In retailing, the constraint was the shelf space. The five focusing steps (5FS) process originated in 1987. New questions were asked in new environments. New opportunities opened. Everyone is taking what we developed and copying what we did but they didn't think to understand the differences. Therefore their solution didn’t work. When you look at reality and where you want or think you should be you are looking at gaps. Once you acknowledge the interdependencies of the gaps you recognize what you call problems are undesirable effects of underlying core problems. Most of the solutions you have been recommending are solutions for UDEs not for the real problem. How do we answer the questions of identifying, exploiting, subordinating, etc.? What we find is you are really using the scientific approach but no one had verbalized how to do it. We spent three years to verbalize the scientific approach. Our solution was the thinking processes (TP). Toyota had developed the five Whys? The current reality made it easier to find the core problem because it was easier to dive down from five UDEs rather than one. From 1989 to 1992 we checked and rechecked the TP. The more powerful the solution the more it changes reality. Many new challenges appear. With improvement in operations, the constraint moves elsewhere. When we don’t have an answer to a problem we try to pretend the problem doesn’t exist. Hitachi Tools from Toyota results of implementing TOC in their job shop were highlighted. This implementation represented the opposite of focusing. This tremendous change created a decisive competitive edge (DCE is defined as a company able to satisfy a client’s significant need in a manner that no else can satisfy it.). Hitachi did not use the DCE. The constraint was in the market. They have the biggest mafia offer ever: Hitachi inventory gets three times the number of inventory turns on their items than competitors. Hitachi did the direct opposite of focusing. The DCE created a need for a new sales process which brings the client to realize that one of his DCEs is blocked by me and my competitors. Holistic implementation became necessary (the 4X4) therefore the strategy and tactics (S&T) tree was vital. The process on ongoing improvement and the evolution of red and green curves are discussed. The organizer of the body of knowledge is the S&T tree which moves down from the objective to what actions must be done and what actions must not be done.
Goldratt asks if the audience wants him to evaluate MLIT’s use of critical chain with contractors. Many in the audience wanted the truth. Eli’s staff wanted politeness. Eli decides to be critical of MLIT’s use of critical chain. Project managers should have seen a 25% reduction in project lead time. If you think that by using critical chain software you are doing critical chain then you are wrong. Do you believe by the government committing to one day response to contractors' questions and taking one week is not critical chain. Some responses should be given immediately and others are not so important. What are the criteria for evaluation of the response? If the project will be delayed because of the response delay then answer immediately; it is important. If the delay has no importance in its relationship to the project completion times, then why the rush? There are three important steps in projects. First, choose the right project. Second, design the project correctly. Third, execute the project correctly. For the first question, the thinking processes (analyze the situation to determine the real need—that is that the project meets that need) are used. For the second question, the design of the project, the tool is the S&T tree, how do you start with an objective and end up with a project network. The whole logic is spelled out. How can you use the gemba experience if others don’t know why you have designed the project in the way you have designed it. For the execution you start with the PERT then end up with reality. Your biggest waste (according to Ohno) is overproduction. In project management the biggest waste is buffering each task. Critical chain says to take this local buffering and protect the whole project. By aggregation of local buffers the variability goes down hence project lead time must go down by 25%. If you don’t report on it then you do not use critical chain.
This presentation discusses the speed of change in reality and the need to change our patterns of behavior (based on the old environment) to match the new environment. We almost always change our patterns when the change is bad but almost never change our patterns based on positive changes. We must dive deeper into the assumptions related to our existing pattern of behavior and determine if they are still valid. Goldratt describes six changes in the environment and their impact on the old pattern and the need for a new pattern. Some of the changes are: 1. The speed of getting results (time to get client signed up). 2. The speed of client results in seeing improvement (many clients see a doubling of sales in less than six months today (was 1-2 years). 3. The change in how we conduct the global practice (clients must now come to Israel--aggregation at the top of distribution). 4. The time to teach a consultant where we trust him (was 3 years now with S&T 3 weeks of training interspersed with visiting the appropriate site, validating the assumptions, changing the assumptions to meet the company environment and auditing the site. 5. The perception of the value that the client can get in the future for consultant (clients left because they felt they got most of the benefits already) We now sell the process. 6. What's happening in the market (we generated most of our leads in the past. Now people are coming to us asking to be a client.) We must recognize that we never KNOW. We must always recognize: Never say I know. We must also recognize that people are good. Never blame someone else. We have three things: our intuition, inherent simplicity and freedom of choice.
Goldratt, R. (2003). Solutions for sales: Logistics and requirements. TOCICO International Conference: 1st Annual Worldwide Gathering of TOC Professionals, Cambridge, England, Goldratt Marketing Group.
This presentation describes a three-day workshop. Three to five team presentations are worked on in the workshop with at least one participant for each presentation group being knowledgeable about the client. Each participant works on an offer to a specific prospect with whom a meeting is scheduled. The content of the workshop includes 1. What is a sale (characteristics of a major sale; practical approach to major sales; and the sales cycle)? 2. Analysis of the current status (Identifying a prospect; Analyzing the prospect’s problems; Communicating the prospect’s problems; and Building the bridge from the problem to the solution). 3. Presenting the offer. 4. Obtaining commitment. Each point is outlined in detail. The sales cloud is presented: A Close the sale B Avoid objections D Not present the product and its qualities at the initial stage B Raise the prospect’s interest. D’ Present the product and its qualities at the initial stage. The solution is therefore before presenting the product an agreement must be reached about the problem and its magnitude. Each step in the process is described: Introduction, Analysis of the current situation, Present the offer; and Obtain commitment. Forms are provided for estimating the impact of the problem on the organization, building a generic cloud, etc. The procedures for each step are listed.
This presentation provides some guidelines and examples that can help in effectively dealing with implementation issues such as a person (CEO, sales team, etc.) knows what actions to take and in spite of this doesn’t take the actions. The presentation provides the logic tools to dive deeper to provide an understanding of why the person or department resists and doesn’t take the action and validates the cause of inaction. Simple questions and examples are provided to illustrate the concepts.
This presentation provides an overview of the content of the theory of constraints thinking processes examination.
The TOC thinking processes (TP) are essential for developing new solutions and implementing proven solutions. Yet, too many TOC experts avoid them because they seem too hard to use or are too time consuming. It doesn’t have to be this way, especially for the TOC expert. Dr. Holt has taught over 500 Jonahs and has created some simple insights that dramatically reduce the time and mental stress associated with the TP. Come learn fast CRTs, fast FRTs and fast TTs. Rejuvenate your three-cloud approach and sharpen your categories of legitimate reservation.
Holt, S. and E. Schragenheim (2012). Hyde Park session - Managing complex systems - TOC, agile and Cynefin. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
The Cynefin framework is used to describe systems as simple and complex. In the simple domain cause and effect is perfectly clear. In a complicated domain sense what is happening, analyze the situation and respond.. In the complex domain, there is an answer but you can't determine it by analysis. We must probe, experiment, etc. (emerging practice). In the chaotic domain, you don't know if there is an answer you have to act. In the disorder domain you don't understand where you are. Inherent simplicity identifies that core process that allows us to manage the system. Make the box bigger. Can breakthrough solutions be developed with the thinking processes (TP)?
Humpert, D. (2013). V.I.P. Mortgage, Inc.: A case study. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
This case study covers a three-year period of consulting work with this middle-sized independent mortgage company from the introduction of TOC as a management framework in March 2010 to the present. The environment of a mortgage company cannot be classified as traditional operations (suitable for a DBR solution) nor as a project environment (suitable for a CCPM solution). V.I.P. Mortgage worked with Aligned Consulting Services to develop a TOC solution for the mortgage industry. V.I.P. Mortgage used the classic TOC thinking processes (TP) as the whole system intervention. The company successfully adapted its mortgage automation system to support a buffer-managed, flow-focused operations system. The company developed its performance management system to encourage behaviors that facilitate flow. The TOC-based solution has profoundly influenced every sales, operational, financial, and human resources system in the company. While applying TOC, V.I.P. Mortgage grew from 50 to over 260 employees during a period of turmoil and upheaval in the home mortgage industry, achieving its long-term goal in 2012 of exceeding $1 billion in loan volume. In this context, this case demonstrates that TOC is more than a process of ongoing improvement; it can be framed as an organization theory to grow successful companies.
Hutchinson, M. (2011). The application of the TOC-TP in developing a comprehensive school improvement plan, and empowering middle school peer mediators and at-risk students in foster homes. TOCICO International Conference: 9th Annual Worldwide Gathering of TOC Professionals, Palisades, NY, Goldratt Marketing Group.
Schools are under fire to improve the academic performance of all students and are often forced to implement programs developed by outside organizations. One school made the decision to look within and to involve the entire local school stakeholder community in their staff development process, to take an honest, look at what the organization must change to achieve its goal of preparing its students for life in the 21st century.
Inozu, B. (2011). Implementing constraints management with lean / six sigma: Lessons learned at Anadolu Medical Center. TOCICO International Conference: 9th Annual Worldwide Gathering of TOC Professionals, Palisades, NY, Goldratt Marketing Group.
The first twelve months of deploying a continuous performance improvement program, called Super, at Anadolu Medical Center in Turkey is discussed. The 201-bed hospital has begun implementing lean and six sigma with constraints management in an integrated manner. Examples are provided from improvement project selection that incorporates the thinking processes (TP), addressing policy constraints in the outpatient appointment process, the magnetic resonance imaging (MRI) repair and maintenance preparing process, the the operating room (OR) process, and the inpatient medication order process, as well as results of a pilot study on dynamic replenishment for medical supplies.
Jacob, D. (2013). Breaking the code of cause and effect -- Improving the logic of your branches and trees. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
Writing sufficiency logic can be challenging. It can be the key to making your point in buy in, or gaining alignment on a negative branch and finding the way to trim it easily, or building an entire tree. This session transfers skills in writing sufficiency logic by: • Understanding when an intermediate step in the branch is needed • Identifying when other entities are needed for the 'logical and' • Identifying what assumptions these additional entities need to clarify. Using hands on example, the participant learns the techniques to create a framework for a branch, identifying if the framework is detailed enough for sufficiency, assessing the need for clarifying assumptions, writing those assumptions clearly on the first pass. Those experienced in the thinking processes or new to them can write better branches immediately.
Keith, M. and M. Eby (2013). Using TOC-TP to convert operational risk assessment into competitive advantage for financial services firms. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
This presentation will demonstrate the use of an operational risk assessment and the change matrix conflict cloud to identify the focal point (root cause) of a financial services firm’s risk profile, identifying and challenging an underlying erroneous assumption. The process followed will be presented, and a case study examined. Participants will learn how to use an operational risk assessment and the change matrix conflict cloud to identify the focal point (root cause) of the firm’s risk profile. Participants will examine and explore the reasons that the problems / risks exist, determine the convergence to a core problem, and the effect of 'raising the goal.' Also, participants will learn how to align the resolution of the core conflict with the firm’s value proposition to the market and how to run small batch / fast cycle times to test the value assumptions.
Alex Knight describes his first meeting with Dr. Eli Goldratt at a senior-level seminar. He then describes the experiences he has had in different environments (healthcare, legal, universities). TOC (Eli) is using the question, "Why?" very effectively. Managing complex systems, such as the healthcare industry, involves managing health and social environment systems. What we did to improve the system: We took what the theory (related to production) said and did it! The chain of activities in the health and social care system is explained. The patients that stay the longest in any part of the system are not the sickest, but the patients who had the most delays in the process. The healthcare evaporating cloud is presented and discussed. The cloud is (A) Run an effective healthcare system; (B) Medics/managers are required to give the best (appropriate) medical treatment to those they are now treating; (D) Medics/ managers should act only upon medical considerations; (C) Medics/managers are required to treat all patients in a more timely manner; (D’) Medics/managers should act more and more within budget considerations. Medical technology is improving rapidly and as it improves the costs of buying and operating the new equipment is increasing significantly. The costs of running a hospital are defined and discussed. The truly variable cost is about 20%, while 60-70% of hospital costs are related to medical staffing. If you try to save money, then you reduce Throughput. Achieving a breakthrough in healthcare consists of five elements: achieving consensus, operational breakthroughs, finance and measures, market breakthroughs and sustainability.
Using a prerequisite tree, this presentation develops a process by which conflicts can be voluntarily resolved. The actions required of the mediator and of the participants, and the logic of why the process works, are covered. This is a tested and successful TOC application.
Mabin, V. (2013). The thinking processes basics workshop. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
Despite its well-known origins in production, popularized through The Goal, Theory of Constraints (TOC) is far more than a production philosophy – it can be applied to many other areas. As each new problem or environment was tackled, Dr Goldratt and his colleagues developed new solutions. But along with these new solutions, they also thought about how they thought about the problems, and how they went about devising solutions. The thinking processes (TP) are a distillation of their approach to problem solving and decision making – a codification of their thinking about their thinking. The result is a set of tools we can use ourselves to solve problems in our own lives, regardless of how complex or everyday they may be. This workshop will provide an overview of the thinking processes, its component TP tools and logic rules that are used to create TP logic diagrams to represent situations and their resolution. We will describe the original set of tools/diagrams, including the current reality tree and evaporating cloud, as well as more recent additions. We will explain how they are created and used, and how they fit together to answer the key questions of change: why change, what to change, to what to change, how to cause and how to sustain the change. We will explain the two types of logic used in the diagrams, namely necessity and sufficiency logic. We will outline the set of logic rules, referred to as the ‘Categories of Legitimate Reservation’, which help us scrutinize the logic statements in order to construct robust trees as well as scrutinize others’ diagrams.
This presentation describes and logically proves and shows comparable simulations of the new replenishment concept. By using a feedback loop we rapidly adjust the stock holding (buffers) to be in line with the needs as they are developed. The presentation uses thinking processes diagrams and live simulation runs.
Moura, E. (2012). Using TOC-TP as a guide to integrate lean, six sigma, process management and TOC solutions for business improvement. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
The author presents a proven method that uses TOC’s Thinking Processes (TP) from undesirable effects (UDEs) to strategy and tactics (S&T) trees to prioritize and integrate strategic business improvement initiatives such as lean, six sigma, process management and specific TOC solutions. Real implementation examples are presented.
Nagarkatte, U. P. and D. Movasseghi (2007). TOC initiative at Medgar Evers College to reduce student attrition: A progress report. TOCICO International Conference: 5th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NV, Goldratt Marketing Group.
This presentation provides the background of Medgar Evers College and of TOC being used there; the TOC thinking processes (TP) roadmap, unique features of the college scene; acceptance of departmental guidelines and TOC across the college; next steps and a summary. Medgar Evers College is part of City University of New York (CUNY) (one of two state universities of NY); the college is one of 20 units of CUNY and has three schools (Liberal Arts and Education; Business; Science Health and Technology); offers two and four year programs. For over 30 years the college had tried to address its attrition problem. In 1998 the faculty senate identified 24 academic and non-academic issues causing attrition and suggested one action for each issue. TOC was then applied to the 24 issues. In 2001 a federal grant was awarded to study attrition. Three faculty members attended a Jonah course and studied the problems. This presentation is about implementing TOC to improve retention. The full TP were applied to analyze and solve the problem.
Oltman, T. (2011). Breaking the vicious cycle to achieve bottom line results. TOCICO International Conference: 9th Annual Worldwide Gathering of TOC Professionals, Palisades, NY, Goldratt Marketing Group.
This presentation discusses the pressures we face as we try to execute projects and how our reactions to these pressures lead us into the vicious cycle. The vicious cycle is a cause-and-effect loop where negative effects cause more negative effects; the effects build on each other creating a downward spiral of ineffectiveness and limited productivity and undesirable outcomes.
Padhi, M. R. and P. B. Panda (2010). Tata Refractories Ltd - Early gains through TOC implementation. TOCICO International Conference: 8th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
The goal of this presentation is to highlight the paradigm shift in thinking processes that enables a win:win:win situation for every stakeholder. After the implementation of TOC we realized that there is harmony in any system and that there is no conflict. The early gains in terms of financial and operational numbers are excellent: 15% increase in sales of Dolomite business line, 14% increase in sales in High Alumina business line and 3% increase in FCP business line. Throughput has increased to 24% from 20%. More than 100% plant capacity is used in Dolomite and High Alumina business line. On-time in full is achieved to average of 85% from 25% from 25%
Pescara, F. (2013). The link between the S&T trees and the traditional TP analysis: A rigorous approach. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
How to build a logically consistent strategy and tactics (S&T) tree? How to scrutinize, validate or criticize a S&T built by others in order to improve its logical consistency? What are the links between the entities of an S&T tree and the traditional TP? The rigorous definition of the assumptions contained in the STEPs (and of the sub categories to which they belong) allows us to build logical models that may be subjected to the filter of the 'Categories of Legitimate Reservations', and thanks to that to improve the logical consistency of the S&T subject to the scrutinizing process. The presentation explores the connections between the traditional analysis carried out with the Thinking Processes and the verbalization of the entities of S&T trees.
This presentation describes the use of the thinking processes (TP) logic diagrams for determining and managing the required change and to discuss their use in implementing performance improvements within a governmental service organization. Key learning points include: (1) Establishing improvement measures in a cost-center subsystem; (2) Quantifying performance in a non-profit environment; (3) Appreciating the importance of avoiding political correctness in stating the core conflict; and (4) Using a systematic approach to the development of a strategic injection that will invalidate multiple assumptions underlying the core conflict. Benefits to attendees include: (1) Discuss issues associated with the global performance measurements (T, I, and OE) in a public sector organization; (2) Learn how to overcome pitfalls in using the TOC TP in a governmental service-oriented subsystem; (3) Discover how the TP have enabled public sector managers to use ‘out-of-the-box’ thinking to overcome their system constraint.
Reid, R. (2005). Applying the TOC thinking processes (TP) in a healthcare organization. TOCICO International Conference: 3rd Annual Worldwide Gathering of TOC Professionals, Barcelona, Spain, Goldratt Marketing Group.
James Holt made the presentation for Richard Reed. He added his comments to the overheads. The purposes of this presentation are to provide a framework for analysis of a system; background of the organization being studied; what to change: the UDEs, conflict clouds, core conflict cloud (CCC) and current reality tree (CRT); to what to change, the tabular analysis, strategic injection (Inj.) and future reality tree (FRT) and some management implications. The case study is the Planned Parenthood of New Mexico (PPNM), which performs medical services including annual exams, sexually transmitted diseases (STD) testing and treatment, pregnancy testing, abortion, tubal ligation, vasectomy, etc. to 21,943 patients in 2004. They also provide educational services. The presentation focuses on what to change and what to change to. The goal, and four necessary conditions (quality medical services, safe and secure work environment, remain financially solvent and maintain PPFA accreditation) are discussed. The prerequisites for each requirement are provided. UDEs include: long wait times for some patients; clinic financial viability is threatened; many personnel (clinicians, support staff and clinic managers) are highly stressed; clinic staff turnover is higher than desired; some patients leave the clinics dissatisfied; and the physical appearance of some clinic facilities is shabby. The storylines for the first five UDEs were converted to evaporating clouds (ECs) with assumptions then to a core conflict cloud with assumptions. The CRT is provided. Injections to the core conflict cloud are provided. James provided his assumptions: There is no way to improve the patient per hour rate; we cannot improve the patient show-up rate; the quality of service is equal to the time with the doctor; there is nothing we can do to improve our processes. Richard’s two strategic injections are: The PPNM clinics’ managers and clinicians align their personal as well as their professional goals with the new overall clinic goal of a balanced approach of delivering quality medical services while maintaining financial viability; and The PPNM clinics have a new appointment scheduling system that satisfies most needs of managers, clinicians, support staff, and patients alike.
Reid, R. and T. Shoemaker (2009). Challenges and opportunities in applying the TOC thinking processes (TP) in public sector organizations. 1st Annual North American Regional TOCICO Conference, Tacoma, WA, Goldratt Marketing Group.
The thinking processes (TP) provide a framework for understanding managerial dilemmas, identifying strategic direction, and implementing organizational improvements. Learn about unique public sector ‘work-arounds’, TP pitfalls in a service-oriented subsystem, and ‘out-of-the-box’ thinking by public sector managers. Insights gained in application of the TP in a US city water department, African solid waste management, and municipal services in the Philippines are presented.
Ronen, B. (2007). Upgrading the TOC BOK: Focused methodologies for the financial industry. TOCICO International Conference: 5th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NV, Goldratt Marketing Group.
This presentation reviews the problems of traditional strategy from a TOC perspective then offers solutions using the thinking processes and applications. The role of the CEO to provide vision and the Bungee Effect are described. Forbes Magazine author thought: In the majority of company strategy cases strategic planning is good but also in the majority of companies execution is bad (Bungee Effect). Recognize that the author is viewing strategy from a traditional viewpoint as what is taught in business schools, executive programs and by consultants (not TOC strategy).Goldratt's It’s Not Luck example is provided for discussion. The traditional strategy and tactics (S&T) for a successful company are examined using the thinking processes (TP). At the lower levels we see that tactics clash within and across functions thus creating chronic conflicts among policies, measures, and behaviors within the organization. Chronic conflicts for making money, having secure and satisfying environment for employees, and satisfying the market are discussed. An example with results is provided of implementing a Viable Vision (VV) project with a mid-sized Chinese kitchen products producer.
In our search for inherent simplicity we suddenly have a body of knowledge growing immensely to do that. The miscommunication of data: we have the system or reality I am trying to describe, predict, etc. I collect data and run statistics and provide a data summary as the description of reality. My boss creates a picture of the understanding of others in the organization of my description. Four different data sets are shown to produce the same statistics. What are the system implications of miscommunication (an unintended gap between my goal and the understanding of the system)? The gap between reality and perceived reality can cause bad actions. The Challenger disaster is discussed. The cloud concerning message variation (short versus long) is provided. A is Improve system, B Ensure everybody has all information necessary to make a good decision. This requires D Provide a large and detailed report. The other requirement is B Recognize time and resource constraints of people in the organization which requires D’ Provide an executive summary. The conflict is then between D Provide a large and detailed report and D’ Provide an executive summary. Effect-cause-effect logic and the cloud have proven powerful and easy to use thinking processes (TP) to simplify communications in business and personal life.
Sawai, N. (2012). Flow of our visit: How to accelerate our implementation during consultant absence. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
Although, consultants can spend only limited time with clients, they have to achieve results faster and, more importantly to maintain the results. This presentation introduces the powerful know-how to solve the consultant dilemma in the TOC way and contains how to keep our customer’s focus; provides a powerful tool to clarify the causality and to connect past, now and future; addresses how to execute a daily audit and team implementation; and shows how to keep the holistic management approach.
In this session we discuss what derails implementations, how to prevent derailers, how to recognize a potential derailer, and how to correct them. Corrective action includes utilizing strategy and tactics (S&T) trees, thinking processes (TP), and open discussion so that the participants learn from each other as well.
Schragenheim, E. (2003). The holistic approach learning from experience: A personal and managerial feedback loop. TOCICO International Conference: 1st Annual Worldwide Gathering of TOC Professionals, Cambridge, England, Goldratt Marketing Group.
This presentation describes a number of undesirable effects (UDEs) associated with not learning from previous events such as people making serious or costly mistakes: people are unable to pinpoint the flawed paradigm; when significant change occurs people operate under the wrong or old paradigms; etc. Learning the right lesson from a specific event is critical so a control system must be able to quickly identify and correct faulty paradigms within the organization. We conduct a thinking processes (TP) analysis with the objective of identifying the flawed paradigm. The author describes a paradigm in TOC terms as a small cause-and-effect tree. The existence of a flawed paradigm might be a exhibited as a gap in expectation or performance (a surprise). The gap can be treated as the DD' of an evaporating cloud (EC). In the current reality tree (CRT) the cause of the gap is hypothesized and validated. The differences between the typical TP analysis using many UDEs and this type of analysis using one UDE are discussed. The flawed paradigm is identified and analyzed using the cloud and the future reality tree. The full seven-step learning from experience process is outlined and some implementations are provided. A fictional case is provided to illustrate the process.
Schragenheim, E. (2011). The role of the transition period in implementing a change. TOCICO International Conference: 9th Annual Worldwide Gathering of TOC Professionals, Palisades, NY, Goldratt Marketing Group.
From the start of implementing a change until the change is working satisfactorily there is a certain period of time where the reality is not the same as it used to be, but also not the same as it is going to be. This is what characterizes the transition period. There are two different aspects of dealing with the instability of the organization going through a significant change, like in most of the TOC implementations. There is a need to develop temporary procedures of work in order to cross a certain gap between the reality of today and the reality of tomorrow. During the transition period, mistakes and misunderstanding are quite expected. Identifying undesirable effects (UDEs) in a very fast way and quickly reacting to them is highly desirable. Dealing with both parts requires a detailed analysis of the special cause-and-effect relationships that would take place during the transition period. Also, in order to be able to identify new UDEs a list of expectations needs to be clearly outlined before the kickoff of the implementation.
Schragenheim, E. (2013). Learning from ONE event. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
Learning from one event is an organizational methodology to inquire into single events that might point to a threat to the organization. The methodology is based on the thinking processes (TP), but uses them in a somewhat different way. This application was developed by Eli Schragenheim and Dr. Avner Passal. The idea is to identify a mismatch between the organizational accepted paradigms and reality, and to help in identifying the flawed paradigm, update it and implement changes according to the new learned lessons. This methodology is especially required for TOC implementations, because when some basic paradigms change then there is a real threat that some 'forgotten' paradigms are not in line with the new understanding. This methodology has been applied in government.
Schragenheim, E., moderator (2012). Panel discussion: Standing on the shoulders of giants process. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
This presentation discusses the results of the four facilitated sessions to identify problems, inconsistencies, or missing components in a given field using the standing on the shoulders of giants (SOSG) process. The sessions were supply chain, critical chain, distribution, and thinking processes.
This presentation logically demonstrates how the Socratic questions of the TOC thinking processes (TP) systematically bridge from a learners' prior knowledge to the desired new knowledge and that can also be leveraged to make the lesson of assured value to the learner. Case studies from staff/leadership development trainings, k-12 classrooms and home schooling as well as an experiential on-site activity validate the solution. Benefits to attendees include: participants have a deeper understanding of the obstacles that inhibit effective learning; participants experience the simplicity of effective teaching pedagogy; and participants have more justified confidence in their ability to effectively teach others.
Suerken, K., et al. (2012). Standing on the shoulders of TOC to impact an ENTIRE NATION. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
Following a full TP analysis, Yuji and his GG team launched an initiative in 2009 to teach the people of Japan to think clearly in 20 years. Yuji attributes the initial, impressive success to first teaching adults to think clearly about ‘how to teach TOC. Content included the summary analysis and prerequisite assumptions to ensure ongoing tactics as well as: insights on why TOC for Education (TOCfE) is so effective in teaching TOC-- even to learners who have disparate backgrounds and prior knowledge; powerful, documented concrete results and testimonials; and convincing evidence that it is possible to systematically BUILD A DREAM.
Suerken, K., et al. (2012). Panel discussion - TOC applied to national concerns. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
Government concerns include: poverty, lack of education, crime and corruption, and lack of economic growth. Others include health issues. Some prioritize; other link causally. We need an economy that is continually generating surpluses. Each person is inspirational. The first question: is where can we help most? There is a need to translate tools to the specific government environment. One must understand the unique constraints of government (advanced planning documents, budgeting process, etc.). Win-win contracts with consultants are views as getting paid on what you save the government. Education goal is to get TOC the main way in education. Networking is required to spread TOC. Encourage everyone to teach others. Rules of playing the game are difference in government. Challenging fundamental assumptions is required to develop win-win solutions. Check the objective, think about actions, and then people think about money. We have the capability to teach people to think clearly. We don't understand exponential growth: the rule of 70 and doubling the time. Suppose a city is growing at 7%. It takes (70/7 =) 10 years for the population to double.
Surace, R., Moderator and J. Thompson (2012). Hyde Park session - Contradiction analysis. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
The conflict is of having a coffee pot in my office or not. I am the designer and interruptions can cost us millions of dollars. A brief history of the thinking processes (TP) was given. A contradiction carries the DNA of a deep seated core conflict therefore contradictions must also carry fragments of the assumptions of that deeper core conflict. Therefore it is possible to follow the train of assumptions and discover the core conflict. Look at conflicts between finance and operations. If you have quarterly bonuses then make bonuses based on finance instead of customer needs, operations capabilities, etc. By interrogating the assumptions we can dive deeper into our understanding of the environment.
The presentation describes the use of the thinking processes (TP) to recreate trust and mutual commitment; the processes and projects management model; and experienced-based versus TOC-based decision making in a family-owned bottler in Brazil. The bottler had a severe cash shortage problem. The strategic direction was provided by Dettmer’s strategic navigation model. The use of the TP of the strategy and tactics tree, the current reality tree, the future reality tree, prerequisite tree, etc. is described. The evaporating cloud was used extensively to understand the chronic conflict of the franchisor and the bottling company. Assumptions and injections were provided and supporting injections surfaced. Throughput accounting and sales and marketing solutions were implemented.
Taylor, B. (2012). Hyde Park session: Problem and solution for TOCICO webinar: The 12 questions. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
This presentation identifies the erroneous assumption as that you have to be educated to use the thinking processes (TP). If there is a simple method that solves most problems they will be used. 1. What is the problem from your point of view? 2. How is the problem undesirable or bad? 3. In what way is the problem undesirable? 4. Is there some specific action or situation resulting from the problem? 5. Why do you put up with the problem? (entity B) 6. Is there some action or situation that is the direct cause of the problem? 7. Why does that action or situation exist? 8. Is the problem related to the conflict or dilemma? 9. What is the conflict or dilemma? 10. What are the injections? 11. What are the obstacles? 12. What are the negative branches? Two groups of assumptions for each arrow in the cloud are the positives of changing and the negatives of not changing.
Uga, A. and Y. Kishira (2013). TOC for mental health in an organization with proof of concept in a major Japanese company. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
Mental health issues are ubiquitous among various workplaces around the world; Japan is not an exception. Depression among employees has been recognized as a serious problem to be tackled in many major corporations. A significant number of 'self-help' books have been sold, while mental healthcare has become a growing concern in corporations in recent years. Mental health counselors have been taking in clients year after year, trying to resolve their issues on an individual basis. Yet, we have not seen a significant improvement. There must be a wrong assumption in dealing with the issue.
This presentation discussed a 10-step process for successfully implementing a Viable Vision (VV) for healthcare. The steps are: 1. Delimit the boundaries of the system within our span of control but within the context of the larger system. 2. Agree upon the goal of the system. 3. Agree upon performance measurements for the system. 4. Develop a VV for the organization using the RRR (reliability and rapid response) transformational strategy and tactic (S&T) tree. 5. Get an insight into your system and its current performance by using the systems dynamics model. 6. Identify gaps between the VV and current performance. Write these down as un-desirable effects (UDEs). 7. Identify core conflicts and injections to the core conflicts that are causing the gaps or UDEs. Use injections to change UDEs to DEs (desirable effects) and develop the future reality tree (FRT). 8. Validate injections on the system dynamics model to see the effect. 9. Develop the prerequisite tree and the transition tree to implement the super injections on our road to the VV. 10. Continuously improve system performance and measure with the system dynamics model. This process was discussed in some detail based on its application to Adirondack Oral and Maxillofacial Surgery clinic.
Unlike for-profit organizations with a clear goal of improving economic value now and into the future, the stakeholders of a health system, such as government, private industry and healthcare providers have conflicting interests. All stakeholders in the healthcare system, including consumers of healthcare seem to agree that the current performance of the healthcare system is undesirable. In the US, the conflict between two opposing ways to solve the healthcare system-wide problems has reached the highest sociopolitical level with proposals, such as Obama care and Free Market healthcare. The theory of constraints thinking processes (TP) could provide win-win solutions to eliminate all of the current healthcare system’s un-desirable effects (UDEs). The TP could be utilized as an effective tool for aligning the conflicting positions to achieve one clear goal and the necessary conditions for a flourishing healthcare system: availability of affordable, high quality of care for all US citizens, and an environment that provides incentives for innovations and continuous improvements.
Wilson, P. (2013). An exploration of the fundamental and inherent simplicity of all TOC applications. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
As in the physical sciences, it’s a fundamental TOC assumption that there is an inherent simplicity in every complex system. Dr. Goldratt said that our ability to reliably predict the system outcome with the minimum level of inputs is a measure of the complexity of a system. With a better understanding of a system’s fundamental elements and their inter-connectedness, we can achieve greater reduction of the degrees of freedom of that system. By reducing the degrees of freedom, we increase our ability to leverage the system. In other words, when we uncover a more fundamental structure of a system and tie the system entities together better, we simplify it and this allows us to exploit and even elevate it. An indication that our TOC toolset is still too complex is exemplified when recalling Dr Goldratt often saying that it seemed to be out of sheer genius or luck that we gain the insight necessary to break clouds. With this presentation I will take a step in uncovering the fundamental elements and integration of all TOC applications in general, but will primarily focus on a few core thinking processes applications. I will also define how all rational systems have both a tangible and an intangible dimension and will reveal how they are interdependent.
Winiarek, M. (2013). TOC thinking processes for children: How we do it in Poland. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
We teach TOC thinking processes (TP) to very small children and their parents and teachers at same time. Many adults think that teaching smartness can start only when children can write and read. Also many adults think that children have to be taught by parents or teachers to acquire some wisdom. Having in mind the latest discoveries in the human brain and human ability to learn, we created a package for children in age 5-9 to teach them TOC tools that develop children’s natural abilities that lead to smart thinking and wise decisions-- beginning in the kindergarten.
TOC for inter-personal and outer-personal relationships is improved by understanding and using the four categories of injections. In this session four generic categories of injections are introduced by sharing examples of how to work with the four categories to break conflicts and to offer insights into how the categories can be used in the ambitious target process. The four categories of injections are: 1. Physical injections, 2. Emotional injections, 3. Mental injections, 4. Perceptional injections. Benefits to attendees include: 1. Develop the skill of finding injections and resolve conflicts. 2. Awareness of the intuitive way of finding injections and what can be added to it in order to have more options. 3. Better understanding of how to use TOC for themselves and their relationships.
Healthcare around the world is facing increasing capacity challenges and turning to the industrial world for help. TOC is gaining traction in the global healthcare market. What needs to be done to prepare the people who make up the majority of the ‘process units’ for the changes TOC can bring? How can our industrial applications sustain a process of ongoing improvement (POOGI) in a sector that is so important to all of us?
Youngman, K. (2011). The systemic cloud A map board for mapping any territory. TOCICO International Conference: 9th Annual Worldwide Gathering of TOC Professionals, Palisades, NY, Goldratt Marketing Group.
The generic cloud or systemic cloud is the premier tool within theory of constraints – and by no accident. It is the map board onto which we can map any territory. Yet few people understand the reason why it works, or know how to apply the fundamental rules around such a mapping to enable the rapid and complete analysis of a given situation.
Youngman, K. (2012). The systemic cloud and the layers of resistance: Hiding in plain sight. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
There are four, and only four, fundamental classes of resistance to improvement and they are; the positive and negative of the problem, and the positive and negative of the solution. We know this as the 4-views of buy-in or the alligator and the mermaid change matrix. Our traditional layers of resistance; whether five, six, nine, or more layers, are subdivisions of just three of these fundamental classes. There is one class, the positive of the problem that we have hardly cared to understand at all and doesn’t appear in any of the traditional layers of resistance. This is very important. These four classes have a symmetry that allows them to be mapped onto the systemic cloud, as pairs, in a very particular and productive way. We know that the layers of resistance must exist if indeed a cloud exists – otherwise there would be no cloud – and now we know where to map them. They have always been there; simply hiding in plain sight. This broadening of the thinking processes adds tremendous utility to the cloud and our problem-solving process. It is applicable to all theory of constraints philosophy and methodology. We can now succinctly present a complete analysis of any given situation on a single A4 or A3 page.
This presentation shows how the six sigma methodology can be dramatically improved by integrating the TOC thinking processes (TP). Key learning points include: 1. How the TP is perfectly suited to fill the gaps in the six sigma methodology. 2. Where Seagate inserted the TP tools into the DMAIC (Define, Measure, Analyze, Improve, Control) and DFSS (Design for six sigma) training. 3. Which methodology was used to teach students how to develop the trees? 4. Actual examples of training material, including an in-class case study and break out session that were developed to give students the opportunity to get hands-on experience with the trees to accelerate the learning curve. 5. Change management required to integrate the TP into six sigma. 6. Key benefits resulting from the use of the TP in six sigma. Benefits to attendees include: 1. Learn where and how to integrate the TP into six sigma’s DMAIC and DFSS methodology. 2. Learn which approach to developing the TP resulted in the greatest student comprehension. 3. Tangible results achieved from integrating the TP with six sigma.
This presentation shows how to simplify complexity in one example; how to explore the potential of this process; etc. An information technology (IT) project is used. The project is out of control; where do we cut; what do we cut; etc. Four dilemmas were identified: pooling similar requirements; fight redundancies; quality of requirements and internal development versus not internal development. The fourth dilemma (internal development) was put in a current reality tree (CRT). The CRT was based on the evaporating cloud (EC) turned 90 degrees with assumptions added. In order to insure that the development team is working at full capacity we applied critical chain project management. This decision-making process of using the EC (CRT) and FRT for preparing and substantiating decisions was quite effective.