Dealing with the Undesirable Effects (UDEs)-the UDE Cloud

The UDE

Before we move to the UDE Cloud, let's look at a UDE itself.

The UDE is a cornerstone in the full analytical work for developing any functional or strategic solution the TOC way.10 It is used for building the CRT that helps us to identify the core problem. Yet the UDE concept and the UDE Cloud can be used in isolation; that is, separate from the CRT. The UDE manifests a Cloud (if there is a UDE, there is a Cloud) and hence it is beneficial for the manager to reveal the UDE Cloud and use it when appropriate.

The UDE is an effect and its existence is indisputable (even though people may argue about its magnitude). It is undesirable-it endangers, reduces, or prohibits achieving a valid need, objective, or even the goal of a system.

The UDE is a cornerstone of the TOC analysis of the current reality. This is true because it focuses us on what is going wrong; that is, what it is we need to fix. It sets us on a path to changing what is undesirable to outcomes that are desirable. As such, we have to ensure that the UDE is valid and verbalized correctly. The UDE has a clear syntax with clear guidelines: It is a complaint about an ongoing problem that exists in your reality and because of this problem, you cannot perform better. It should be written in present tense.

It is a description of the state, not an action.

It is within your area of responsibility.

Something can be done about it.

It must not blame someone.

It must not be a speculated cause.

It must not be a hidden solution to the problem (wishful thinking of solving the problem).

It should contain one entity.

It should not include its cause in its verbalization.

It should be factual and not subjective.

It should be a complete sentence.

The UDE Cloud Process

Step 1: Identify UDEs.

A problem can be defined as a UDE when: It has negative implications on the performance of the system.

It has been in existence for a length of time (at least several months).

There have been attempts to sort it out with little or no success.

Such a consistent difficulty in solving the problem indicates that the system has an inherent problem that prevents attempts to solve this problem. We need to find what it is and for that, we need the UDE Cloud.

Another important application of the UDE Cloud is in the sales process.

Let us assume that the company has a good offer for the market based on improved service. A good offer is a solution for a problem that the potential customer is experiencing but has not managed to resolve successfully. This means that the buyer has a conflict and we had better prepare ourselves by using the Cloud method. When we are convinced that our offer breaks the customer's UDE conflict in a win-win solution, we have the basis for a value proposition for them using the Cloud.

Therefore, in this part we refer to two types of UDEs: System UDE-for a manager to analyze an issue within his area of responsibility Customer UDE-for the sales and marketing people preparing an offer to their customers The process of building the Cloud, constructing the solution, and communicating the solution to the relevant people is identical for both types of UDEs. For the sake of clarity, the example of the system UDE is used while describing the process and the customer UDE example comes after completing Step 7 of the UDE Cloud process.

Step 2: Write the storyline.

Step 3: Build the UDE Cloud.

Building a Cloud is done through answering the questions associated with each box in the Cloud. The sequence of answering these questions for the UDE Cloud resembles a Z shape: [B][D][C][D][A]

[B]: Why is this UDE undesirable? What important need of the system does it jeopardize or endanger?

[D]: What action should be taken to meet the jeopardized need in B?

[C]: What other important need prevents you from always taking the action D?

[D]: What action do you take to meet the need in C?

[A]: What is the common objective achieved with both B and C?

Example of a System UDE Cloud-Production

The Production Manager of an engineering company is complaining about the difficulty in assembling the final products due to shortages of parts.

UDE: We have too many shortages of parts for assembly.

Building the UDE Cloud: [B]: What need is jeopardized?

[B]: Meet our production schedules.

If there are missing parts, we cannot assemble the product. Sometimes we start the assembly with an incomplete kit and then we have to put the unfinished assemblies to the side and wait until the missing parts arrive. In both cases, we are late in completing the products according to the production plans. This is the need of the production function as they are responsible, expected, and usually measured against the level in which they achieve the schedules.

[D]: What actions do you have to take to meet the jeopardized need in B?

[D]: Not introduce engineering changes in the schedule immediately.

Every engineering change demands the replacement of several parts. These parts are needed to be produced from scratch. It takes time to produce them. The parts for the existing design are in stock. If we wait for a while with the introduction of the new design, then we can meet our schedules.

Step 1 of the process for the UDE Cloud is different from the previous types of problems. A UDE is a well-defined problem. Step 1 is actually used to identify the UDE that we want to analyze.

[C]: What other important need prevents you from always taking the action in D?

[C]: Meet customers' requirements for the latest designs (speed to market).

Engineering changes improve the quality of our product and enhance the features they offer. In any case, the new designs provide our customers with better competitive edges. Therefore, customers really pressure us to provide them with products of the new design.

The [C] need is presented by the Marketing or Sales function. They are the custodians of the company's competitive edge and ability to sell in the market place.

[D]: What actions do you take to meet the need in C?

[D]: Introduce engineering changes in the schedules immediately.

The only way we can provide the improved products is if we introduce these new parts into the existing work orders that are planned to be assembled in the near future.

[A]: What is the common objective achieved with both B and C?

[A]: Achieve our business goals.

Our company makes money through selling products to our customers. Engineering features help the company in getting more orders in the future; effective production helps the company make money.

The system UDE Cloud is presented in Fig. 24-7.

FIGURE 24-7 A system UDE Cloud example for parts shortages.

TABLE 24-6 Sequence and the Questions for Building the UDE Cloud In summary, the sequence and the questions for building the UDE Cloud are provided in Table 24-6.

Step 4: Check and upgrade.

For the UDE Cloud, start with ensuring that the Cloud is written properly and from the point of view of the "owner" of the UDE. There is potential confusion when analyzing a customer's UDE. Because it is you writing the Cloud and not the customer, the tendency is to write as a UDE the fact that the shop owner does not buy from you, does not buy enough, or is not willing to accept your offer. These are not UDEs because they imply a hidden solution: "If the customer bought from me more/more often/accepted my offer, then I would sell more."

Another tendency is to put the new offer-the solution that you believe will improve your business-as one of the actions (D or D). This is not the purpose of the UDE Cloud. The offer should be the injection that breaks the Cloud for the customer.

Check all logical connections of the Cloud and make the necessary corrections and upgrades.

Check that the logic of the diagonals is clear.

Tactic D is jeopardizing need C (even though this is a part of the flow of building the UDE Cloud).

Tactic D is jeopardizing need B.

Step 5: Surface assumptions.

Conduct the regular process of surfacing assumptions. Here are some extra points to consider.

For the system UDE Cloud, the UDE is definitely a system fault and hence we would like to surface system assumptions that may have been valid in the past, when the system was built, but may have lost their relevancy and now can cause blockage. Therefore, keep surfacing assumptions until you detect an assumption or several assumptions that could be challenged and develop an injection to negate them.

Step 6: Construct the solution.

For the system UDE Cloud, just follow the regular guidelines for breaking a Cloud and check for win-win. The arrow, corresponding assumptions, and injections are shown in Table 24-7.

Step 7: Communicate the solution.

Always prepare for the communication session with the relevant people.

In the preparation, you should consider the expected reactions and attitudes of the participants of the meeting. You should be prepared with your responses to their comments and reservations. It may be beneficial to present the subject first to at least one person who can give you feedback about the problem and the proposed solution.

Communication should follow the first three of the five layers of buy-in. You have to develop your own style and ways to handle these layers. The TP work is your homework to ensure that your views are clear to you.

TABLE 24-7 The Arrow, Corresponding Assumptions, and Injections for the Personal Dilemma Layer 1 achieved a clear definition of the problem through the Cloud. The consensus that in the current reality the problem outlined by the Cloud cannot be resolved should generate agreement on what the problem is.

Layer 2 is the commitment to find a win-win solution-a new set of tactics that do not conflict with each other and support the achievement of both B and C needs.

Layer 3 is the detailed injection (or injections) that breaks the Cloud. The agreement on the solution can be achieved by presenting the cause-and-effect logic that shows how the injections support the achievement of both needs.

For years, the perception was that the best way to communicate is by explicitly using the TP tools. This is not always the case. I suggest you check if presenting the TP analysis works for you and if not, find other ways to deal with the layers of consensus.

Generally, people would like to be involved in building the solution that will affect their jobs. A manager who is committed to continuous improvement first has to do the homework-to analyze and define the problem, construct a solution, and then communicate to the proper people with the view of getting their support and collaboration for adopting and implementing the solution. For communication, the manager needs to deal with the question of the improvement process, "How to Cause the Change?" The TOC subtitle for it states that we should induce the proper people to invent such solutions. "Such solutions" means solutions that are close to the solution we have found. However, they do not necessarily need to be precisely the same.

If the people come with injections that are good enough to break the Cloud, are practical, and create a win-win situation, then we should consider adopting or incorporating them, even if we have our own developed injections for the Cloud.

We will not always be able to bring the people to participate actively in proposing the solution. Our work will not always be strong enough to induce people to come forward with the logical outcome from the work that has been done. Experience will guide you in the way to communicate. Just ensure that you are flexible enough and attentive to listening to people's comments and reservations.

Example of a System UDE Cloud-Retail

Step 1: Identify UDEs.

Step 2: Write the storyline.

Step 3: Build the UDE Cloud.