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© Washington State University-2010 1 Fundamental Exam Review TOC Thinking Processes Segment The Theory of Constraints [email protected] http://www.engrmgt.wsu.edu/ James R. Holt, Ph.D., PE Professor Engineering & Technology Management

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© Washington State University-2010 1

Fundamental Exam Review

TOC Thinking Processes Segment

The Theory of Constraints

[email protected]://www.engrmgt.wsu.edu/

James R. Holt, Ph.D., PEProfessor

Engineering & Technology Management

© Washington State University-2010 2

TOCICO Segmented Fundamentals Exam

Fundamentals Certificate

Multiple Choice Exam(Identify, Exploit, Subordinate, Elevate, Go to Step 1)

Fundamentals Certificate of TOC Philosophy

Fundamentals Certificate of TOC Thinking Processes

FundamentalsCertificate of TOC Applications

Fundamentals Certificate of TOC Finance & Measures

•Inherent Potential•Inherent Simplicity•Inherent Win-Win•Five Focusing Steps•Three Questions

•Conflict Cloud

•Negative Branch

•Ambitious Target

•DBR•T, I, OE

•PQ Type Problem•Project

Management

•Replenishment

© Washington State University-2010 3

Topics in TOC Thinking Process

•        Cause and Effect

•         Evaporating Cloud

•         Surfacing Assumptions

•         Invalidating Assumptions

•         Negative Branch Reservation

•         Overcoming Obstacles (PRT)

•         Categories of Legitimate Reservation

• Layers of Resistance

© Washington State University-2010 4

TOC Thinking Process Elements

• Two types of Logic (in Natural Language) If …, Then … . In order to …, There must be … .

Logical Causality Tools used to Answer the three questions:• What to Change?• What to Change to?• How to Cause the Change?

TOC is a Systemic Thinking Process.• There are a set of rules to guide and check validity.• Could be called “Visual Thinking”.

Sufficiency Logic

Necessary Logic

© Washington State University-2010 5

Everyone Can Think

• Goal: Lower the Ball yet keep it attached.

Minimize: Y subject to: (X-1)^2+(Y-8)^2<=24(X-3)^2+(Y-8)^2<=14(X-5)^2+(Y-8)^2<=2(X-7)^2+(Y-8)^2<=22(X-9)^2+(Y-8)^2<=26 X->

Y->

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The Real World

My View ofmy World

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Thinking Time

• We all think! It’s what we do!

• Our minds are like CPUs. They keep on running and running and running …

• We feel uncomfortable if we don’t have thoughts in our head. That’s why junk TV still survives.

• We feel uncomfortable if we start thinking the wrong thoughts That’s why there are magazines in Doctor’s

offices!

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Thinking Experiment

• Get out a pencil and paper.

• Wait for the starting signal.

• Then, Work really hard at not thinking for One Minute!

GO!

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QUICK!

• Write down every thought you had in the last minute!

• Jot down a word to catch the thought you had

• Capture as many as possible.

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How Many Thoughts did you have in 1 Minute?

0 3 6 9 12 15 18

How many of those thoughts have you had before? 40%, 60%, 80%?

Pro

babl

e #

Number of thoughts

In the production world, we would call recurring thoughts RE-WORK!

© Washington State University-2010 11

Improving our Mental Throughput

• We need to increase our mental effectiveness

• We need to tie together the stray pieces so we don’t have to deal with individual thoughts

• We need to get the whole picture, solve it, and move on.

© Washington State University-2010 12

What is this?

© Washington State University-2010 13

Jonathan’s Family

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Thinking Process Tools

• The Basic Set of Thinking Process Tools Include: Current Reality Tree Evaporating Cloud Future Reality Tree Negative Branch Reservation Pre-Requisite Tree Transition Tree

• Derivatives Tools: Three Cloud Approach Chronic Conflict Layers of Resistance

All of these tools are Scrutinized by the Categories of Legitimate Reservation.

Thinking Process elements included in the Fundamentals Exam

© Washington State University-2010 15

For Fun…!

• In order to understand the function and power of the Thinking Process Tools…

• Let’s examine a Thinking Process Example. One that is fairly well known by most people One that is not well solved by most people

Marital Strife

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First the Approach: The Thinking Process

What to Change?

Find the cause of the UnDesirableEffects - UDEs.

Change (Remove) the Core Problem.

UDEs

UDEsUDEs

UDEsUDEs

UDEs

UDEs

UDEs

Core Problem

Arrows are Logical Connections are Tail Head: “If …, Then … .”

© Washington State University-2010 17

Find What’s Blocking the Solution

Injection that invalidates the assumption

Goal

Necessary Condition

Necessary Condition

Prerequisite

Prerequisite

What to Change To?

Assumptions that explain the necessary connection.

Arrows are Logical Connections are Head Tail: “In Order to …, Must have ….”

Thinking Process elements included in the Fundamentals Exam

© Washington State University-2010 18

How to Cause the Change?

DE DE

DE DEDE

DEDE

DE

Key Action

Key Action

Key Action

Achieving the Solution

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Marital Strife UnDesirable Effects

Lack of Affection

Lack of Trust One Carries

Excessive Load

Unequal Workload

InfidelityFrequent Disagreements

Little Support

Lack of Compassion Difference of

Opinion

© Washington State University-2010 20

Story - Trust

1. My spouse doesn’t come home when I expect him (her). This is happening more and more. The stories seem to be weaker and weaker. I want to trust my spouse. But I don’t want to be hurt.

I feel good about my marriage

My spouse feels free from my bondage

I don’t get hurt

I trust my spouse at all times

I don’t trust my spouse

Thinking Process elements included in the Fundamentals Exam

© Washington State University-2010 21

Story - Support

2. My spouse is deeply involved in ______. He/she expects me to support him/her by taking care of __________ while he/she is gone. I don’t mind doing it, but it leaves me little time for my own hobbies.

We use our time well

My spouse can do his/her own thing

I have time for myself

Give lots of support

Give little support

Thinking Process elements included in the Fundamentals Exam

© Washington State University-2010 22

Story-Workload

3. My spouse is in a stressful job and at a critical point in his/her career. It seems like this “critical point” is getting longer and longer. In the mean time, I have to do my job and hold down the domestic duties too!

We both Achieve

I survive my Job

My spouse gets ahead

We balance our domestic workload

We have unequal workloadThinking Process elements included

in the Fundamentals Exam

© Washington State University-2010 23

Generic Conflict(a consolidated Evaporating Cloud)

Happy Marriage

My Spouse is Happy

I am Happy

My spouse does what he/she wants

My spouse doesn’t get what he/she wants

1. Feel Good2. Use Time Effective3. Achieve

1. Spouse freedom2. Spouse does own thing3. Spouse gets ahead

1. I’m not hurt2. Time for me3. I Survive

1. Trust2. Support3. Unequal work

1. Lack of Trust2. Lack of Support3. Balanced work

Thinking Process elements included in the Fundamentals Exam

© Washington State University-2010 24

Core Conflict

We want a Happy Marriage

My Spouse needs to be happy

I need to be happy

There is pressure to give my spouse does what he/she wants

There is pressure not to give what he/she wants

My personal feelings are important

I not happy unless my spouse is happy

I have real needs

The things my spouse wants are important to our marriage

Our wants are different

We have different goals

I am often slightedOften, my spouse takes second place

Core Problem

What to Change?

© Washington State University-2010 25

The Current Reality TreeResults of the Core Conflict

We have different goals

Excessive burdens

Different Opinions

Frequent arguments

Loss of trust

Lack of support

Lack of Affection

Infidelity

Lack of Compassion

Unequal workload

Things need to be done

Different people have different levels of importance

Time continues

© Washington State University-2010 26

A Potential Future Desirale Effects (DEs)

We have a close relationship

We have complete confidence We share our

burdens

We share the workload Committed to

each other

We rarely disagree on important matters

We support each other Caring

Relationship

We really understand each other

© Washington State University-2010 27

Starting Injection

My spouse and I share common goals, objectives and direction in the important aspects of our lives.

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Start of the Future

We want a Happy Marriage

My Spouse needs to be Happy I need to

be Happy

My personal feelings are importantI not happy unless my

spouse is happy

We have common goals, objectives

and direction in the important aspects

of our lives.

My spouse works

towards spouse’s

goals

I work toward

my goals

Spouse is working to our common goals

I’m working to our common goals

We are working towards our common goals/direction

© Washington State University-2010 29

More Actions Needed

We are working towards our common goals/direction

We have complete confidence

We have a close relationshipWe share our

burdens

We rarely disagree We really understand

each other We have a Caring Relationship

We support each other

We share the workload

? ? ? ? ?

© Washington State University-2010 30

A Possible Nice Future Reality Tree

We are working towards our common goals/direction

We have complete confidence in each other

We have a close relationship

We share our burdens

We rarely disagreeWe really understand each other

We have good communication

Caring Relationship

We support each otherWe share the workload

We realize we need each other to reach our common goalsWe make it a point

to communicate (good & bad)

We share a common set of moral virtues

What to Change to?

The Bad SideThe Good Side

Negative Branch Reservation

© Washington State University-2010 31

We have common goals, objectives and direction in the important aspects of our lives.

I’m working to our common goals

My spouse works

towards spouse’s

goals

My spouse’s goals are achieved. Most of my

spouse’s goals are our common goals

I am very busy

My goals take a lot of time

I’m not working on my goals

I can’t achieve my goals

Thinking Process elements included in the Fundamentals Exam

Negative Branch Reservation

© Washington State University-2010 32

I’m working to our common goals

My spouse works

towards spouse’s

goals

My spouse’s goals are achieved. Most of my

spouse’s goals are our common goals

I am very busy

My goals take a lot of time

I’m not working on my goals

I can’t achieve my goals

The Good Side The Bad Side

I work on things I value

I work on our goals AND my goals

I feel good about my progress

I finally prioritize my life

We have common goals, objectives and direction in the important aspects of our lives.

Thinking Process elements included in the Fundamentals Exam

© Washington State University-2010 33

OK, Injections, But HOW?How to Cause the Change?

We have common goals, objectives

and direction in the important aspects

of our lives.

My spouse works

towards spouse’s

goals

I work toward

my goals

We realize we need each other to reach our common goals

We make it a point to communicate (good & bad)

We share a common set of moral virtues

Create the PreRequisite Tree (Ambitious Target Tree).

Practice on this Injection

I finally prioritize my life

© Washington State University-2010

We share a common set of moral virtues

Obstacles Preventing

Intermediate Objectives

It’s a gray world out there. (I can’t tell right from wrong)

We don’t want to change.

Values change according to the circumstances.

We have different backgrounds.

Our desires differ.

We both enjoy some moral indiscretions.

Thinking Process elements included in the Fundamentals Exam

34

© Washington State University-2010 35

We share a common set of moral virtues

Obstacles Preventing

Intermediate Objectives

We agree on common virtues

We are willing to work on this

We agree on a common virtues

We really know each other

We share a set of common goals

We live our set of virtues in all cases

It’s a gray world (can’t tell right from wrong)

We don’t want to change

Values change according to the circumstances

We have different backgrounds

Our desires differ

We both enjoy some moral indiscretions Thinking Process elements included

in the Fundamentals Exam

© Washington State University-2010 36

Sequencing the solution(Structure of the PRT)

We recognize our own frailties

We don’t want to admit error

We really communicate

We subordinate ourselves to each other

We really know each other

We share a set of common goals

We agree on a common virtues

We live our set of virtues in all cases

We share a common set of moral virtues

Our desires differ

Its hard to tell right from wrong

We enjoy our indiscretions

We don’t talk much

We are different

We don’t know each other

Thinking Process elements included in the Fundamentals Exam

© Washington State University-2010 37

Putting the Intermediate Objectives Into Place

• The PreRequisite Tree exposed the Intermediate Objectives (Milestones) needed for “How to Cause the Change?”

• But, How to We actually Get there?

• How will, ‘We Really Communicate’?

• For this, the Transition Tree gives the Step-by-Step Approach to getting there.

We recognize our own frailties

We don’t want to admit error

We really communicate

We subordinate ourselves to each other

We don’t talk much

© Washington State University-2010 38

Working Upwards on a Transition Tree

We recognize our own frailties

We don’t want to admit error

We really communicate

We subordinate ourselves to each other

We don’t talk much

We recognize (more and more of) our

own frailties

People rarely respect people who make a lot

of mistakes

We want others to

respect us

We are mortal

There are (and should be) few

secrets between spouses

We, each of us, try to hide our mistakes

Spouses can be a significant help and support for dealing with problems

Mistakes are inevitable

We generally know about each other’s mistakes that we try to hide

We want to improve

We, each, admit (confidentially) to

some of our problems that we wish to eliminate

<feed back loop from up above>

© Washington State University-2010 39

Working Upwards on a Transition Tree

We recognize our own frailties

We don’t want to admit error

We really communicate

We subordinate ourselves to each other

We don’t talk much

We subordinate ourselves (more and more) to each other

We desire to love each other even more than we do nowWe Loved

each other in the past

We both have made some

mistakes

We are willing to do some things that show

love to our spouse

We need to resolve some problems on both sides

Real love comes from sacrificing self for the

benefit of others.

Our marriage has some strife caused

by each of us.

We need cooperation (give and and take)

from both sides

We want to improve

We, each, accept we will do more things for each

other than we are currently doing

<feed back loop from up above>

Mistakes are inevitable

It is easier to love when loved.

© Washington State University-2010 40

Working Upwards on a Transition Tree

We recognize our own frailties

We don’t want to admit error

We really communicate

We subordinate ourselves to each other

We don’t talk much We recognize

more and more) of our own frailties

We talk frequently about our

successes together

We talk frequently about our challenges

We dedicate time to spend

with each other

Neither of us dominates the discussion (for

too long)

We both have topics of interest

to each other

We don’t talk much

We really communicate

(more and more)

We subordinate ourselves (more

and more) to each other

We want to improve

We need to talk more

We each mention three good things

that are happening in our lives

We each mention three problems that we want to improve.

<feed back loop from up above>

We are very patient and

listen without judgment.

© Washington State University-2010 41

Working Upwards on a Transition Tree

We recognize our own frailties

We don’t want to admit error

We really communicate

We subordinate ourselves to each other

We don’t talk much

We dedicate time to spend

with each other

We really communicate

(more and more)

We each mention three good things

that are happening in our lives

We each mention three problems that we want to improve.

We, each, admit (confidentially) to some of our problems that we

wish to eliminate

We are very patient and

listen without judgment.

© Washington State University-2010 42

The Strategic/Tactic Plan for Marriage

S. Marital Bliss

T. Love Each Other

S. Get Along

T. Accept Each Other

S. Focus on the OtherT. Have Common

Goals

S. Trust Each Other

T. Share Moral Code

S. Spouse Loves Me

T. Take Actions to

cause Spouse to love meCommunication

Work at MarriageForgiveness

FidelityShared Responsibility

© Washington State University-2010 43

The Evaporating Cloud

A. The Goal

B. My Need

C. Other’s Need

D. What I Want

D’. What the

Others Want

Thinking Process elements included in the Fundamentals Exam

© Washington State University-2010 44

Creating the Evaporating Cloud

D. What I Want

1. What is it that I Want (that I’m having trouble getting)?

© Washington State University-2010 45

Creating the Evaporating Cloud

D. What I Want

D’. What the

Others Want

1. What is it that I Want (that I’m having trouble getting)?

2. What is it that the Others Want (that I don’t want them to have)?

© Washington State University-2010 46

Creating the Evaporating Cloud

B. My Need

D. What I Want

D’. What the

Others Want

1. What is it that I Want (that I’m having trouble getting)?

2. What is it that the Others Want (that I don’t want them to have)?

3. Why do I want what I want? What Need am I trying to fulfill?

© Washington State University-2010 47

Creating the Evaporating Cloud

B. My Need

C. Other’s Need

D. What I Want

D’. What the

Others Want

1. What is it that I Want (that I’m having trouble getting)?

2. What is it that the Others Want (that I don’t want them to have)?

3. Why do I want what I want? What Need am I trying to fulfill?

4. Why do the Others want what they want? What Need do they have?

© Washington State University-2010 48

Creating the Evaporating Cloud

A. The Goal

B. My Need

C. Other’s Need

D. What I Want

D’. What the

Others Want

1. What is it that I Want (that I’m having trouble getting)?

2. What is it that the Others Want (that I don’t want them to have)?

3. Why do I want what I want? What Need am I trying to fulfill?

4. Why do the Others want what they want? What Need do they have?

5. What Goal do we mutually share? Why are we still arguing?

Reading the Cloud:In order to <point> I must have <tail>.

© Washington State University-2010 49

Communicating the Evaporating Cloud

A. The Goal

B. My Need

C. Other’s Need

D. What I Want

D’. What the

Others Want

5. And you WANT to meet your Need as well.

3. Acknowledge the Other side Wants to act on meeting their Need.

4. Point out that you also have a significant Need.

2. Recognize you understand the Other’s Need must be meet to reach the Goal.

1. Start the Mutual Goal. It is common ground. Both interested.

Reading the Cloud:In order to <point> I must have <tail>.

© Washington State University-2010 50

Let’s Do Some Examples

A. The Goal

B. Why I Want It

C. Why the Other Side

Wants What They Want

D. What I Want (to do)

D’. What the Other Side

Wants

Thinking Process elements included in the Fundamentals Exam

© Washington State University-2010 51

Let’s Do Some Examples

A. Get the Customer

order

B. Make the offer

attractive to the

customer

C. Insure the quality

of the product

D. Supplier makes the

mold

D’. Customer makes the

Mold

Thinking Process elements included in the Fundamentals Exam

STUDENT EXAMPLESTUDENT EXAMPLE

© Washington State University-2010 52

Let’s Do Some Examples

A. Make more Profit

B. Motivate better

Performance

C. Control Expenses

D. Pay High Salaries

D’. Don’t pay High Salaries

Thinking Process elements included in the Fundamentals Exam

Because: Motivated employees deliver more profit

Because: Money is the ONLY motivator

Because: Expenses subtract from profit

Because: Salaries are a significant part of expenses

Because: This will create conflict with the team.Salaries are fixed.

STUDENT EXAMPLESTUDENT EXAMPLE

© Washington State University-2010 53

Evaporating the Evaporating Cloud

A. Manage Production Effectively

B. Produce a

Lot

C. Keep Costs and Delivery

in Control

D. Increase the Work-In-

Process

D’. Decrease

the Work-In-Process

Assumption: We are measured upon our Production Level

Assumption: All machines must be keep busy all the time.

Assumption: We can’t increase WIP and Decrease WIP at the same time.

Assumption: WIP is expensive. High WIP delays flow time.

Assumption: Our profits are not high. Customers demand on-time delivery.

© Washington State University-2010 54

There is an Injection for Every Conflict

• Arrow Assumption Injection

• ABProductive Deliver Max Capacity

• ACCost Effective Price on Value

• BDBusy Machines Keep Constraint 100%

• CD’ Expensive WIP Throughput Focus

• D/D’ Can’t do Both Buffer Constraint only

Chosen Injection:Focus on the Capacity Constrained Resource. Release work to the system at the rate of the Capacity Constrained Resource a Buffer Time in Advance (no sooner, no later).Use Buffer Management to improve the system.

© Washington State University-2010 55

Sometimes TOC Solutions Are Counter Intuitive

• DBR: To get more out, put less in.

• CCPM: To finish project sooner, delay the Start.

• CCPM: To be safer, remove the safety.

• Replenishment: To get your products quicker to the customer, store them farther away.

• To Solve the Conflict, Ignore the conflict.

• To Make More Money, Sell at below Cost.

If you can’t find an injection, then just do what is opposite of what everyone else is doing (and then do whatever it takes to make it work).

Negative Branch Reservation Practice

• Story Line. I just had an exposure to the Negative Branch

Reservation Tool of the TOC Thinking Process. I can remember parts of it (the Good Side, the

Bad Side part sticks out). The class instructor now tells us to make a

Negative Branch Reservations as an in class quiz.

• Assignment. Draw the Negative Branch Reservation and the

results of the trimming Injection.

© Washington State University-2010 56

Thinking Process elements included in the Fundamentals Exam

The Bad SideThe Good Side

Negative Branch Reservation

© Washington State University-2010 57

I draw a NBR Tree

Thinking Process elements included in the Fundamentals Exam

....

..

..

The Bad SideThe Good Side

Negative Branch Reservation

© Washington State University-2010 58

I draw a NBR Tree

Thinking Process elements included in the Fundamentals Exam

I learn better how to do the NBR

I learn better how to do the NBR

I’m not too good at the

NBR

I’m not too good at the

NBR

I might be called to present

I might be called to present

I Could look bad.

I Could look bad.

My NBR tree may not look

good

My NBR tree may not look

good

PracticePractice

Get Help from Each other

Get Help from Each other

Two idiots are better than one

Two idiots are better than one

We might learn from Each other

We might learn from Each other

I will look good!

I will look good!

We might Miss it.

We might Miss it.I Won’t be

aloneI Won’t be

alone

PreRequisite Tree Practice

• The AMBITIOUS TARGET: To Learn the Evaporating Cloud, the Negative

Branch Reservation and PRT (Ambitious Target) Tree in the next half hour.

What are the Obstacles? What are the Injections?

© Washington State University-2010 59

© Washington State University-2010

Learn EC, NBR, PRT in 30 Mins

Obstacles Preventing

Intermediate Objectives

. .

Thinking Process elements included in the Fundamentals Exam 60

© Washington State University-2010

Learn EC, NBR, PRT in 30 Mins

Obstacles Preventing

Intermediate ObjectivesWe are preoccupied.

We are sleepy (after lunch)

Too many calls

Details unknown to us

Not enough time

No writing materials

Not willing to accept learning

Not motivated.

Difficult, complex, hard

Full Time Call Concentration

Coffee

Switch off (no distractions)

We Know the Details

Plenty of time

Write on White Board

We paid for this class!

I really want to do this

With the right materials, this is easy!Thinking Process elements included in the Fundamentals Exam 61

© Washington State University-2010 62

Sequencing the solution(Structure of the PRT)

.

.

.

.

.

.

.

I learn the EC, NBR, PRT in 30 Mins.

.

.

.

.

.

.

Thinking Process elements included in the Fundamentals Exam

Categories of Legitimate ReservationCategories of Legitimate ReservationUsed to Scrutinize All Logic TreesUsed to Scrutinize All Logic Trees

• First: Clarity

• Second: Entity ExistenceCausality

• Third Cause InsufficiencyAdditional

CauseCause ReversalPredicted EffectTautology

The CauseThe Cause

The EffectThe Effect

This simple set of rules, which compiles all the key elements necessary This simple set of rules, which compiles all the key elements necessary and sufficient for anyone to validate or invalidate logic, is one of Eliyhau M. and sufficient for anyone to validate or invalidate logic, is one of Eliyhau M. Goldratt’s significant contribution to thinking.Goldratt’s significant contribution to thinking. 63© Washington State University-2010

Resistance to Change

• Why don’t People Change? Resistance to change is a good thing. It prevents

most un-needed changes. People resist because they don’t understand the

value of the change and / or see significant negative branches without a way to deal with them.

There are six basic layers of resistance and six methods to overcome them.

© Washington State University-2010 64

Layers of Resistance

• Layer 1. Disagree on the problem Solution: Agree on the problem (CRT)

• Layer 2. Disagree on the direction of the solution Solution: Agree on the direction of the solution (EC)

• Layer 3. Disagree that the solution solves the problem. Solution: Agree that the solution solves the problem (FRT)

• Layer 4. Yes, But, there are potential Negative consequences. Solution: Agree that the solution will not lead to any significant

negative effects (NBR)

• Layer 5. Yes. But, there are obstacles to implementing the solution. Solution: Agree on the way to overcome any obstacles that might

block or distort implementation of the solution (PRT)

• Layer 6. Unverbalized fears Solution: Overcome Unverbalized fears (TT)

© Washington State University-2010 65

Categories of Legitimate Categories of Legitimate Reservation: CLR – ClarityReservation: CLR – Clarity

A School only for Pretty Girls? Or, is it a Pretty School for young girls? Or, just a very Little School? Could it be a school for one particularly Pretty Girl (you missed the apostrophe)? Are there boys there too? Does the building look particularly nice? What is the enrollment?

This is a pretty little girls school

This is a small school for girls

Expressing logic visually gives the opportunity for scrutiny often missed when voiced only.

66© Washington State University-2010

CLR – Entity ExistenceCLR – Entity Existence

Entity Existence Reservation: “Do these things really exist in your world?”

Operating costs of the car are of little concern

There is free maintenance for 100,000 miles

The exterior appearance of the car doesn’t matter

A brand new Lexus costs $15,000

67© Washington State University-2010

CLR – CausalityCLR – Causality

Causality: Show me how the parts in the Effect (at the point of the arrow) come from the Cause (from the tail).

I open a Savings Account

I receive 20% interest

I want to be different

I need pants like Joe’s

My roommate has a car

I need a car

I buy stock

I become a millionaire

There are problems with each one.The Cause

The Effect

68© Washington State University-2010

CLR – Cause InsufficiencyCLR – Cause Insufficiency

Insufficiency Reservation: Your Group needs to complete a good Group Project too.

I get excellent grades in Class

My Project goes well

I turn-in good homework

My Group Project goes well

Insufficiency Reservation: You Need to do your Project well.

69© Washington State University-2010

CLR – (More on Insufficiency)CLR – (More on Insufficiency)

Is it sufficient?

Not without the Triangle!

70© Washington State University-2010

CLR – Additional CauseCLR – Additional Cause

I don’t get good Gas Mileage

My Truck is large

Additional Cause Reservation:

I carry heavy loads

Additional Cause Reservation:

I drive too fast

Ah-Ha! We see an Ah-Ha! We see an area were area were improvement is improvement is possible.possible.

71© Washington State University-2010

CLR – Cause ReversalCLR – Cause Reversal

My Garage is full of stuff.

My Garage is too small.

The Garage didn’t The Garage didn’t create all the extra create all the extra things.things.

My Garage is full of stuff

My Garage is too small.

I can’t get my car in the Garage.

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CLR – Predicted EffectCLR – Predicted Effect

Our Incomeis too low

We don’t have enough

money to pay our

bills

Predicted Effect Reservation: If our income is too low, I would expect to see most people with the same income unable to pay their bills.

Others with the same income would not be

able to pay their bills

Many others with same or

less income do pay their bills

And yet, I see lots of people with the same or less income paying their bills just fine.

We buy too many things

we really don’t need

Discovery Happens!

We have too many bills

The Most Difficult CLR to use (you have to think).

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10. There is a

Chicken

20. There is an Egg

Too Tight a Logic Loop

CLR-Tautology ReservationCLR-Tautology ReservationA Too Tight a Logical LoopA Too Tight a Logical Loop

A Longer Logical LoopResolves the Age Old Question

20. There is a fertile Egg

16. There is a Female Chicken

14. There is a Male Chicken

OR

11. A Male and Female Chicken can produce a

fertile Egg

But, maybe there were two eggs first!

Most Frequent Logical Error!

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CLR – TautologyCLR – TautologyThe Cause is the ExcuseThe Cause is the Excuse

• The Circular Logic The Circular Logic of the of the CauseCause is is accepted accepted becausebecause of the of the EffectEffect. .

• “ “How do you know the Beavers are a lousy Team?”How do you know the Beavers are a lousy Team?”• “ “BecauseBecause, they lost the game didn’t they!”, they lost the game didn’t they!”

The Beavers lost the game

The Beavers are a lousy team.

• Whenever you hear, a Whenever you hear, a BECAUSEBECAUSE, , that is the that is the samesame as the as the EffectEffect you have you have a Tautology (bad logic).a Tautology (bad logic).

The CauseThe Cause

The EffectThe Effect

Most Frequent Logical Error!

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CLR – TautologyCLR – Tautology “The Cause is Hard to Define”“The Cause is Hard to Define”

• To resolve the Tautology, the To resolve the Tautology, the Cause Cause needs to be something needs to be something that can be determined and challenged; that can be determined and challenged; Not an Abstract ConceptNot an Abstract Concept. .

•In this case, the abstract word is “lousy”. What does that In this case, the abstract word is “lousy”. What does that mean? We need another substantial meaning.mean? We need another substantial meaning.

The Beavers lost the game

The Beavers are a lousy team.

• When the BECAUSE is ABSTRACT, When the BECAUSE is ABSTRACT, we need to dig further.we need to dig further.

• The Circular Logic of the Tautology The Circular Logic of the Tautology comes from a comes from a CauseCause which is abstract; which is abstract; difficult to determine, define or quantify.difficult to determine, define or quantify.• So, too often the So, too often the CauseCause is not is not challenged.challenged.• And, it seems the undefined And, it seems the undefined CauseCause is is accepted accepted becausebecause of the of the EffectEffect. .

Most Frequent Logical Error!

76© Washington State University-2010

CLR – Tautology: Searching CLR – Tautology: Searching For An Alternate ConnectionFor An Alternate Connection

The Beavers lost the game

The Beavers are a lousy team.

The Beavers play a lousy game

The Beavers don’t prepare well for games

The Beavers don’t execute

well

The Beavers are depressed by their

mistakes

People feel bad when they make

dumb mistakes

The Beavers are perceived as a

lousy team.

The Beavers may not be so bad.

The Beavers face an easy

team

The Beavers are in a slump

They are not thinking clearly

Most Frequent Logical Error!

77© Washington State University-2010

How Do Tautologies How Do Tautologies Happen?Happen?

I tell them I tell them what to dowhat to do

They don’t They don’t do itdo it

I push themI push them

They still They still don’t do itdon’t do it

I push them I push them harderharder

They are They are obstinateobstinate

I push them I push them hardhard

They are They are obstinateobstinate

Cause for Tautology is Cause for Tautology is unanswered questions.unanswered questions.Do we every stop to Do we every stop to think why they are not think why they are not answered? answered? Why don’t people do Why don’t people do what they are told?what they are told?Hum?Hum?

Most Frequent Logical Error!

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Cause for the Tautology Cause for the Tautology Pre-Conceived NotionPre-Conceived Notion

• In General, the most common error in “Jumping to Conclusions” is the Tautology!

He is a He is a jerkjerk

He won’t He won’t help ushelp us

They are Part of They are Part of Management!Management!

He’s IndianHe’s Indian

They are MuslimsThey are Muslims

He is BlackHe is Black

They are PoorThey are Poor

She’s a WomanShe’s a Woman

Men!Men!

Hum?Hum?What is the underlying reason for these crude remarks?What is the underlying reason for these crude remarks?

Sometimes a Tautology is a single statement.

Most Frequent Logical Error!

79© Washington State University-2010

Tautology is often a ‘Knee Jerk’Tautology is often a ‘Knee Jerk’

• When we hear, “BECAUSE” (same as Effect)…

• When the BECAUSE is ABSTRACT…

• When the ABSTRACT is DEROGITORY … It is probably a Tautology Logic Problem

• Basic Assumptions of the Theory of Constraints:

All People All People ThinkThink

All People are All People are GoodGood

Every action is logical Every action is logical (within the environment and in (within the environment and in

accordance with the individual’s accordance with the individual’s understanding of their ability to understanding of their ability to

change the environment)change the environment)Emotion is evidence of passionate, logical thinking!

80© Washington State University-2010

Practice Correcting a Knee Jerk Practice Correcting a Knee Jerk

They are Part of They are Part of Management!Management!

Why Should they?Why Should they?

I’m importantI’m important

I do a good jobI do a good job

Management’s Role is to Management’s Role is to oversee systemic oversee systemic

performanceperformance

Management is Management is IncompetentIncompetent=>=>

I don’t get I don’t get what I needwhat I need

Management Management Ignores meIgnores me

Management Management Doesn’t Doesn’t

RespondRespond

Management Management Doesn’t Doesn’t ListenListen

I’m glad it’s not me!I’m glad it’s not me!

I am not the I am not the system’s system’s problemproblemManagement must Management must

be dealing with be dealing with some very serious some very serious

needsneeds

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An Additional TOC InsightAn Additional TOC Insight

• Systems are Inherently Simple

E=MC2

In free markets, economic stability is controlled by the Interest Rate.

System A System B

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Look for a Simple Solution!Look for a Simple Solution!

The The homework homework is too hardis too hard

I can’t do I can’t do my my

homeworkhomework

I don’t know what the words meanI don’t know what the words mean

I don’t understand the problemsI don’t understand the problems

I don’t understand the bookI don’t understand the book

Lecture doesn’t make senseLecture doesn’t make sense

I can’t see the connectionsI can’t see the connections

There are too many conceptsThere are too many concepts

It’s too complicatedIt’s too complicated

Did you ask Did you ask anyone for anyone for clarity?clarity?

No.No.

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Thinking Processes

The Goal: Improve Systems (Remove UDEs)The Measure: Number, Scope and Severity of Problems The Constraint: Core Conflict

“There once was an old SystemThat lived in a shoe.That had so many UDEs It didn’t know what to do…”

UDE

UDEUDE

UDEUDE UDE

UDE

UDE

UDE

UDE

UDE

UDE

UDE

UDE UDEUDEUDE

UDEUDE

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Thinking Processes

The Analysis:The Paradigm Shift: Cause the Erroneous Assumption to Go Away (Fix Rules, Measures)Let the System Behave Correctly!

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Thinking Process Results

What do we learn here to apply to

Daily Lives?

Conflicts can be Resolved.

Negative Branches should be Trimmed.

Be “James Bond” -- A Few, Rightly Placed Injections can Make Dramatic Improvement!

We can achieve Ambitious Targets

Communication is Greatly Improved!

Buy-In Happens!

Problems Go Away- Are Replaced By Desirable Entities!

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Thinking Processes Lessons Learned

• There are Answers -- Don’t Despair• Look for Cause-->Effect Relationships• Think Clearly

Clarity, Causality, Insufficiency, Additional Cause, Predicted Effect, Cause Reversal

• Don’t Accept Compromise (No Win-Lose or Lose-Lose) Learn to find Breakthrough Injections “A Cloud-A-Day keeps the Conflict Away”

• Become Justifiably Self-Confident Enter a Complex World, Find the One Spot that

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Next Topics

• TOC Thinking Processes

• TOC Applications Operations Project Management Replenishment

• TOC Finances and Measures

• Some TOC Philosophy will be blended into these additional topics.