Theory Of Constraints Handbook - Theory of Constraints Handbook Part 149
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Theory of Constraints Handbook Part 149

18Get a TOC Tip of the day at www.twitter.com/TOCExpert 19See www.MafiaOffers.com and www.MafiaOfferBootCamp.com 20See www.MafiaOffers.com and www.MafiaOfferBootCamp.com 21See Chapters 18, 25, and 34 on Strategy and Tactics trees.

22Goldratt Consulting, June 26, 2006, Vendor Management Inventory S&T.

23See Chapter 9 for more information on S-DBR.

24See www.VelocitySchedulingSystem.com based on S-DBR for highly custom job shops.

25The TOC Replenishment Solution is also called Demand-Pull and more information can be found in Chapter 11.

26Goldratt Consulting, November 2008, Reliable Rapid Replenishment S&T.

27See Chapter 9 for more information on S-DBR.

28See www.VelocitySchedulingSystem.com based on S-DBR for highly custom job shops.

29Throughput Per Shelf (TPS) is a measure of return on shelf space.

30Goldratt Consulting, November 12, 2007, Consumer Goods S&T.

31See Chapter 9 for more information on S-DBR.

32See www.VelocitySchedulingSystem.com based on S-DBR for highly custom job shops.

33The TOC Replenishment Solution is also called Demand-Pull and more information can be found in Chapter 11.

34Goldratt Consulting, June 21, 2007, Projects S&T.

35More information on the TOC CCPM solution can be found in Section II.

36See www.ProjectVelocitySytem.com based on CCPM for service and project based companies.

37Goldratt Consulting, May 25, 2006, Pay Per Click S&T.

38See Chapter 9 for more information on S-DBR.

39See www.VelocitySchedulingSystem.com based on S-DBR for highly custom job shops.

40See www.ProjectVelocitySytem.com based on CCPM for service and project based companies.

41More information on the TOC CCPM solution can be found in Section II.

42See Chapter 13 for more on totally variable costs. Typically, they would be the raw material costs of the equipment.

43See Chapter 9 for more information on S-DBR.

44See www.VelocitySchedulingSystem.com based on S-DBR for highly custom job shops.

45The TOC Replenishment Solution is also called Demand-Pull and more information can be found in Chapter 11.

46See www.ProjectVelocitySytem.com based on CCPM for service and project based companies.

47More information on the TOC CCPM solution can be found in Chapters 3, 4, and 5.

48See www.MafiaOffers.com and www.MafiaOfferBootCamp.com.

49Based on experience from the over 70 companies that have completed a Mafia Offer Boot Camp. See www.MafiaOffers.com and www.MafiaOfferBootCamp.com.

1Attributed variously to Henri Poincare, James Maxwell, and Kurt Lewin.

2Cox, Blackstone, and Schleier (2003, 4761) developed their Business System Model to describe the system prior to implementing TOC; Lockamy and Cox (1994, 11) address "What is the Goal?" and "How is it measured?

3Why change and establishing a POOGI are addressed by Barnard in Chapter 15; sustainability of change is addressed by Newbold in Chapter 5.

4Note that for the analysis by Kim et al. (2008), work contained in books was excluded due to the inherent difficulty of identifying individual examples mentioned in books. However, books comprise a major component of the TOC literature, being almost equal in number to the number of papers surveyed in Kim et al. Up until 1998, there were approximately 28 books on TOC; in the last 10 years, about 70 more books have been published, including a dozen on TP and a similar number of educational workbooks on TP.

5The original early 1990s method proposed to develop a CRT used "Why?" and "Because" logic with validation, and is still in use.

6http://tocinternational.com/pdf/Oxford%20Radcliffe%20Hospital%20story.pdf 7To review the S&T trees that currently are in the non-peer-reviewed public domain see: http://www. goldrattresearchlabs.com/ 8A basic set of TOC logic tools (EC, NBR, and PRT) has been taught in primary, secondary, and high schools around the world for over a decade. See Chapter 26 and www.tocforeducation.com.

1The Cloud is used in the full TP work to describe the inherent conflict reflected in the core problem that is identified in the Current Reality Tree (CRT).

2The TOCICO Dictionary (Sullivan, Reid, and Cartier, 2007, 2122) defines the Evaporating Cloud (EC) as " (a) necessity-based logic diagram that describes and helps resolve conflicts in a "win-win" manner. It has two primary uses, first as a structured method to facilitate the description and resolution of a conflict, and second, as an integral part of the Three-Cloud approach to creating a Core Conflict Cloud which then forms the base of a current reality tree." ( TOCICO 2007, used by permission, all rights reserved.) 3In some instances, particularly Clouds involving more than one person, the I/we should be replaced with the part's name if that person or function must meet that need or complete that action.

4Chronic Conflict Clouds are far more difficult to resolve. The TOCICO Dictionary (Sullivan et al., 2007, 11) defines chronic conflict as "(a) contentious situation that has continued to exist for a prolonged period of time. Opposing sides have been justifying their perspective through selective requirements and prerequisites for so long that both sides become entrenched in their own beliefs to the point that neither side can see how to break the conflict without suffering a significant loss." ( TOCICO 2007, used by permission, all rights reserved.) 5The TOCICO Dictionary (Sullivan et. al., 2007, 2728) defines injection with respect to the EC as: "2. A state or condition that invalidates one or more assumptions underlying the relationships between the objective and requirements, or between requirements and prerequisites, or between the two prerequisites of an Evaporating Cloud." ( TOCICO 2007, used by permission, all rights reserved.) 6Used with permission by Eliyahu M. Goldratt. Eliyahu M. Goldratt.

7See, for example, Chapter 20, this volume, Dr. Efrat Goldratt's chapter on layers of resistance and buy-in.

8In Chapter 2 of the book It's Not Luck by Eli Goldratt (1994), there is an example of a day-to-day conflict on a personal issue. It is a disagreement between Alex Rogo and Sharon, his teenage daughter.

9Please remember that this is a daily problem and not a detailed analysis of a deeper problem. A more comprehensive work may find that the procedure is a part of the core problem and in such a case, the solution may include a major change or even the removal of procedure.

10The TOCICO Dictionary (Sullivan et al., 2007, 50) defines an undesirable effect (UDE) as "(a) negative aspect of the current reality defined in relation to the organizational or system's goal or its necessary conditions. UDEs are believed to be a visible symptom of a deeper, underlying root cause, core problem, or core conflict." ( TOCICO 2007, used by permission, all rights reserved.) 11See Chapter 22 for details on constructing Mafia Offers.

12The Three-Cloud approach is also used in examining UDEs across major functions of an enterprise. However, these analyses do not fall into the category of day-to-day management and therefore are not discussed in this chapter.

13The TOCICO Dictionary (Sullivan et al., 2007, 14) defines "core conflict-The systemic conflict that causes the vast majority of the undesirable effects in the current reality of the system being studied. The core conflict is often generic in nature and can be derived by generalizing the various conflicts that underlie the undesirable effects that persist in the system." ( TOCICO 2007, used by permission, all rights reserved.) 14Please note that the core conflict within the subject matter can be identified through the same process of consolidating all of the identified UDEs as reflected in the U-Shape discussed later. Please note also that any analysis is sensitive to the list of UDEs that is picked. Therefore, it is important to check that the UDEs have severe impact on the performance of the area under study.

15Dr. Eli Goldratt has described the basic concepts/assumptions of TOC in numerous presentations. Very little has been written about these assumptions. In his presentation called "Necessary & Sufficient" on the second part (on CD-2), he presents the first two of the concepts under the heading: "The basic assumptions of TOC-A look into reality based on the common sense approach of the hard sciences." The three basic assumptions also are described in detail in Goldratt's (1990) book What Is This Thing Called Theory of Constraints and How Should It Be Implemented? The same basic assumptions are covered in The Choice (Goldratt, 2009). They are recorded on an extended list of his assumptions on pages 157158 of the book.

16A nice example of such a case appears in Chapter 8 of It's Not Luck (Goldratt, 1994).

17If you have many IOs, you should consider grouping them and establishing group topics and complete the exercise for each group. Then, sequence the groups.

1As I write, I am imagining more than one occasion in which I thought a TV, a computer, or other electronic gadget was not working, and "the fix" came in the form of my husband calling from another room with just a small tinge of sarcasm in his voice, "Honey, are you sure it's plugged in?"

2The detailed process is called the Categories of Legitimate Reservation (CLR).

3The And Connector was originally named (and is still often called) a "banana" due to the shape that is formed when writing trees by hand to illustrate the "logical and" nature of the causes and effects.

4Entities 1, 3, 5, 6, and 9 are causes only. Entities 11 and 12 are effects only. Entities 2, 4, 7, 8, and 10 are both causes and effects. Entities 1 and 10 are a cause for Entity 2; Entities 2 and 3 are a cause for Entity 4; Entity 4 is a cause for Entity 7; Entities 6 and 7 are a cause for Entity 10; Entity 10 is a cause of Entity 2 (the loop); Entity 7 is a cause for Entity 11; Entities 4 and 5 are a cause for Entity 8; Entity 8 is a cause for Entity 12; and Entity 9 is another cause for Entity 12.

5More on the term undesirable effect (UDE) can be found in the section of this chapter that describes the Current Reality Tree.

6When a Strategy and Tactic Tree (S&T) is used, it often replaces the PRT as the mechanism to address the obstacles to implementation of a solution that contains many injections and requires the synchronization of multiple stakeholder groups.

7If you are interested in learning the history behind the quite different name of this TP, see Chapter 9 of the book Thinking for a Change: Putting the TOC Thinking Processes to Use (Scheinkopf, 1999).

8A source of delay is the answer to the question, "What is the order waiting for?"

9In Appendix C, I provide a copy of the POOGI step in the standard Strategy & Tactic Tree that MTO manufacturers implement. See http://www.mhprofessional.com/TOCHandbook 10The TOC Priority Management (using BM) approach classifies orders as green, yellow, red, or black according to the degree to which the order has consumed its buffer (safety time). Green orders have consumed the least amount of buffer (and are thus not at risk of being late), black orders have consumed their entire buffer (and are thus already late).

11Note that you are looking for assumptions that are being made in the given situation. Therefore, it may be helpful for you to modify the statements listed here to include the words "it is believed" or "it is thought." For example, "In order for A, it is believed that we must B, because . . . ."

12These four rules summarize the CLR, which are described in detail in Appendix B at the end of the chapter.

13In the United States, urgent care centers are non-hospital medical clinics where people who do not have a primary care physician or whose physician is not available can go.

14Just in case you are wondering, the young woman subsequently had the tumor removed, was diagnosed with aggressive brain cancer (glioblastoma multiforme), and continues to outlive the statistics that are otherwise translated to be a death sentence.

15John Covington (in Chapter 37) discusses this application.

16By "real UDE," I do not mean "real causes." I do mean the entities that are undesirable on their own merit. In the next step, you will identify the core problem-the cause that is responsible for the existence 17The PRT goes by a number of names and procedures. For instance, it is described as an Ambitious Target Tree in Chapter 26, and its derivative, Intermediate Objective Map (IO Map), is presented in Chapter 24.

18If you are going to create an S&T tree, then this third step is not necessary.

19Over the years, several formats for constructing TRTs have been developed, taught, and used. The version that I am including in this chapter is different-and in my view more effective relative to its purpose-than the version I presented in Thinking for a Change. As always, though, if you keep the view of the scientist and your objective in mind, you have the opportunity to develop an approach that works for you.

20An objective can be an injection from an FRT, an IO from a PRT, or any other objective that you would like to achieve that did not arise from a full TP analysis.

21Increasing value: stability on the green curve, performance on the red curve. See Chapter 34, Fig. 34-1.

22Step 1, Viable Vision, used with permission of Goldratt Consulting.

23The lowest level steps in an S&T do not contain a Sufficiency Assumption.

24In Chapter 34, Lisa Ferguson provides several detailed examples of S&Ts.

25 E. M. Goldratt (2008) used by permission, all rights reserved. Source: Goldratt Research Labs at: http://goldrattresearchlabs.com/?q=node/2 26Thanks to Stewart Witt for his contribution, and to Goldratt Consulting and Revital Cohen for their permission to use this TRT. The rest of the TRT is in Appendix E at the McGraw-Hill Website: http://www.mhprofessional.com/TOCHandbook 27Also called Layers of Resistance.

28From Cox et al., 2003, pp. 8388. Used with permission. Cox, Blackstone and Schleier. All rights reserved. Appendixes A and C to G are on the website 1Two such examples are Anaya and Pamanes, "Violence in the Home" at http://www.tocforeducation. com/cloud-b/cb23.html and de Gaza and Rodriquez, "Enabling Juvenile Offenders to Set Goals" at http://www.tocforeducation.com/att-b/attb09.html 2"Mainstreaming in the context of education is a term that refers to the practice of educating students with special needs in regular classes during specific time periods." Wikipedia. Copyright 2010 by Kathy Suerken.

3In a presentation by a local third grade teacher (Anonymous, 1994), she revealed how TOC made her realize that the materials and techniques she had been using to teach cause-and-effect logic were fundamentally flawed. In so doing, she quipped, "What should I do now? Write all my students letters of apologies?"

4Brazil, Colombia, Costa Rica, Ecuador, Israel, South Korea, Mexico, Malaysia, The Netherlands, Philippines, Poland, Peru, Russia, Serbia, Singapore, Republic of South Africa, Taiwan, Trinidad & Tobago, United Kingdom, United States, Venezuela.

5Keynote speech to 1st TOCfE International Conference, Los Angeles, CA, August 1997.

6The TOCfE Thinking Across the Curriculum Workbook Series defines the Cloud as a logical thinking diagram that defines and analyzes a problem through different points of view in a way that eliminates the conflict without compromising important needs; the Logic Branch as a logical thinking diagram that describes through cause-effect relationships how an entry point leads to outcomes; and the Ambitious Target Tree as a logical diagram to construct feasible strategic and tactical plans to attain an ambitious target by analyzing obstacles and developing specific, sufficient, and sequenced steps that turn stumbling blocks into stepping stones. Thinking Across the Curriculum Series, Suerken, TOCICO for Education, Inc, 2009. See also The TOC Dictionary (Sullivan et al., 2007) at http://www.tocico.org/resource/resmgr/files-public/toc-ico_dictonary_first_edit.pdf 7Monterrey, Mexico, August 2000. Full case study entitled "TOC Mediation to Stop Name Calling" is available at http://www.tocforeducation.com/cloud-b/cb7.html 8In TOC, an assumption is a statement, condition, or belief about why a logical relationship exists between entities.

9"An Alternative to Hazing," http://www.tocforeducation.com/cloud-b/cb2.html. Roby continues to use the Cloud with students and reports that a similar hazing situation occurred on the first day of school in the fall of 2009. He took particular note of the insights gained through the use of the Cloud by the senior girls involved in the incident. When verbalizing their needs, they discovered that their need to be respected was actually being jeopardized by actions to haze others.

10Speech NCA Conference, Chicago, IL, April 1997. The North Central Association Commission on Accreditation and School Improvement accredits schools in 19 states.

11"AGOAL Academy" Presentation of Ana Maria Conde, 8th TOCfE International Conference, Seattle, WA, August 2005.

12Trapnell's action research on the use of the TOC tools at Alderman Pounder Nursery School has been published in Child Education (August 1998), Primary Leadership Paper (January 2003), and Teaching Expertise (Winter 2004).

13The Free Online Dictionary defines injerence as "the act or process of deriving a logical consequence or conclusion from existing premises" (www.thefreedictionary.com/inference).

14http://www.tocforeducation.com/cloud-c/cc01.html 15Glatter, 2003 "Reading Comprehension Through TOC," Presentation 7th International Conference, Ft. Walton Beach, FL (October).

16"Ft. Walton Beach, FL, October 2007.

17http://www.tocforeducation.com/references.html 18Presentation of Marilyn Garcia to the Maryland Home Education Association, November 2006.

19Combined from "The Case of the Disruptive Student," http://www.tocforeducation.com/branch-b/bb01.html and Small's Presentation at 7th TOCfE International Conference, Ft Walton Beach, FL, May 2003.

20"I Have Had No Further Problem with Tardiness," http://www.tocforeducation.com/branch-b/bb02.html 21"TOC in Counseling: Taking Responsibility for Learning, A Classroom Behavior Intervention," Marcia Hutchinson: http://www.tocforeducation.com/att-b/math3.html and http://www.tocforeducation. com/att-b/math4.html 22http://www.tocforeducation.com/branch-b/bb03.html 23Languages spoken include Malay, Tamil, Chinese, and English.

24http://www.tocforeducation.com/cloud-b/cbl2.html 25TOCfE in Malaysia, 2004 Presentation at the 7th TOCfE International Conference, Ft. Walton Beach, FL, May; 2006 "100 Children 100 Days 100 Clouds" Presentation at the 9th TOCfE International Conference, Leon, Mexico, Sept.; 2005 Thinking Smart: You Are How You Think, Selangor Malaysia: Pelanduk Publications.

26"Changing the Mindsets of Groups of Disruptive Students," http://www.tocforeducation.com/att-b/attb02.html 27Dr. Sirias has co-authored a TOC book for teenage children entitled SUCCESS: An Adventure and is currently developing a new workshop that incorporates TOC in mathematics delivery.

28Florida Comprehensive Assessment Test.

29Presentation to 7th TOCfE International Conference, Ft. Walton Beach, FL, May 2003.

30"TOC and the Children of Romani Populations," Presentation at the 11th TOCfE International Conference, Warsaw, Poland, October 2008.

31This application, developed by Christina Cheng, is described in Chapter 27.

32The methods used to evaluate level of social maladjustment were the Rosenzweig Picture Frustration Test and Student Behavior Test of Barbara Markowska. In order to evaluate the level of solving conflicts, predicting both positive and negative consequences of someone's behavior and planning small undertakings, a set of TOC tasks were created for the needs of the experiment. Conference Proceedings, 10th TOCfE International Conference, Ft Walton Beach, FL, October 2007.

33To view the full presentation: http://www.tocforeducation.com/researchlist.html 34Conference Proceedings, 8th TOCfE International Conference, Seattle, WA, August 2005.

35To view "Curriculum Applications" presentation that includes summary of results: http://www. tocforeducation.com/researchlist.html 36The Thinking for a Change workbooks for children (in Hebrew) include: Solving Every Day Conflicts for ages 58, 812, and 1015; The Way of Achieving a Target for ages 8-12 and 10-15; and Think Before You Act for ages 5-8 and 8-12. Glatter, along with Mira Grienberg and Rami Goldratt, has also written Rainbow in the Cloud, a workbook for teachers.

37http://www.tocforeducation.com/interactive.html 38Avraham Y. Goldratt Institute. 1995. Management Skills Workshop Sessions 1-5, New Haven, CT: Avraham Y. Goldratt Institute.

39Some nomenclature was changed in order for terminology to be user friendly for children, and learning objectives have been added and tailored to meet the needs of educators. However, all adaptations in language and content of the original materials have been carefully undertaken and approved by the creator of TOC, Dr. Goldratt, in order to prevent distortions in the processes that could affect desired intended outcomes.

40Her thesis is entitled, "The Effectiveness of Integrating the Theory of Constraints for Education in the Teaching Learning Processing English I," 126.

41MSCDN, Mazowieckie Samorzadowe Centrum Doskonalenia Nauczycieli, services 50,000 Polish teachers.

42Los Angeles School District, CA.

43Presentation to 3rd International TOCfE Conference Los Angeles, CA, August 1999. As advisor to the Officer of Intergroup Relations, LASD, CA, Denise co-authored "La Creme: Los Angeles Conflict Resolution Education Model for Educators."