Dominik Strube – Theory of Constraints. The Thinking Processes
0 likes17 views
The document outlines the Theory of Constraints (TOC) as a framework for improving digital maturity and operational efficiency in various domains, emphasizing problem-solving, decision-making, and strategy development. It details the use of TOC thinking processes to identify constraints, manage conflicts, and facilitate agile responses to complex challenges. Additionally, it contrasts TOC with agile methodologies, highlighting its structured approach to achieving objectives and addressing system-wide dilemmas.
Dominik Strube – Theory of Constraints. The Thinking Processes
- 2. 2 1. Digital Maturity Theory of Constraints – The Scope Domain-specific applications Management system and problem solving tool set Efficient operations of an in-use system • Production • Project management • Accounting • Logistics, etc. Effective system improvement / reconfiguration • Strategy development • Change management • Planning (strategical / tactical) • Go-to-market
- 3. 3 1. Digital Maturity End-to-end thinking – Focus on the intended result A purpose system‘s task is to deliver the maximum output. The Thinking Processes consider and tackle • Dilemata • Decision making problems • Questions to be answered, etc. as flow problems. Throuput: Performance rate at which a purpose system (an organization) achieves its goal.
- 4. 4 2. Impacts Focusing on one core control parameter Identification of the constraint • Pivotal system parameter • What is the limiting factor which hinders throughput? • Where does the problem solution stall? Types of constraints • physical (also the market) • political (e.g. a policy) • psychological (e.g. a bias or an impasse)
- 5. 5 2. Impacts TOC‘s Thinking Processes at a glance The Thinking Processes enable • problem solving in complexe environments • support decision making • development of strategies and tactics They answer three deceptively simple questions 1. What to change? 2. To what to change? 3. How to cause the change?
- 6. 6 2. Impacts TOC‘s Thinking Processes in action • Integrated analysis • Stand alone solutions Domains Goal Tree Current Reality Tree Strategy & Tactics Tree Evaporating Cloud Future Reality Tree Prerequisite Tree Transition Tree Negative Branch (Reservations)
- 7. 7 2. Impacts Types of logic within the Thinking Processes Causality logic • Current Reality Tree • Future Reality Tree • Transition Tree • Negative Branch Reservation Sufficient cause thinking „If A then B“ Necessary logic • Evaporating Cloud • Prerequisite Tree • Goal Tree Necessary condition thinking „A is necessary to obtain B“
- 8. 8 2. Impacts Conflict and problem solving Goal Tree Current Reality Tree Strategy & Tactics Tree Evaporating Cloud Future Reality Tree Prerequisite Tree Transition Tree Negative Branch Reservation • A is necessary to obtain B. Necessary logic N N N
- 9. 9 3. Becoming Agile Evaporating Cloud: (Core) Conflict solving diagram • Dilema within two alternatives of action • Conflict of interest • Fire cloud: politics prevents prudent situational action Types Necessary logic Objective Requirement 1 Prerequisite/ Alternative action 1 Prerequisite/ Alternative action 2 Requirement 2 Conflict
- 10. 10 3. Becoming Agile Evaporating Cloud: (Core) Conflict solving diagram Example • To achieve this <objective>, I‘ve to ensure that <requirement>. • The <requirement> that we want to satisfy by the <action>. resp. To satisfy this <requirement>, we have to achieve this <prerequisite>. Nomenclature Produce large lots Produce small lots Minimize spendings Maximize throughput To maximize profit To achieve what? To achieve what?
- 11. 11 3. Becoming Agile Evaporating Cloud: (Core) Conflict solving diagram Example Produce large lots Produce small lots Minimize spendings Maximize throughput To maximize profit Assumption Assumption Assumption • Valid arguments as to why an action is required to satisfy a need. • Assumptions are the key to the solution. Assumptions
- 12. 12 3. Becoming Agile Evaporating Cloud: (Core) Conflict solving diagram Proof of concept 1/3 Prerequisite Prerequisite Requirement Requirement Objective • Cross check: Do requirements jeopardize each other? • Is the conflict really a conflict – do the prerequisites contradict each other? Logic checks
- 13. 13 3. Becoming Agile Evaporating Cloud: (Core) Conflict solving diagram Proof of concept 2/3 Prerequisite Prerequisite Requirement Requirement Objective • Check of needs: Are both <requirements> and <prerequisites> desirable and necessary for <goal>? • Conflict between <requirement> and <prerequisite2>? • Conflict between prerequisites? Logic checks
- 14. 14 3. Becoming Agile Evaporating Cloud: (Core) Conflict solving diagram Proof of concept 3/3 Requirementold Prerequisite Requirementnew Requirement Objective • Shifting the requirement Proceeding
- 15. 15 2. Impacts Resolving dilemmas / conflicts Goal Tree Current Reality Tree Strategy & Tactics Tree Evaporating Cloud Future Reality Tree Prerequisite Tree Transition Tree Negative Branch Reservation C C C C
- 16. 16 3. Becoming Agile Anticipating the impact of solutions/ideas Effect Cause • If A then B Causality logic Assumptions If, ... ..., then ... .
- 17. 17 3. Becoming Agile Anticipating the impact of solutions/ideas ... then <effect> .... If <cause>, ... If <cause>, ...
- 18. 18 3. Becoming Agile Anticipating the impact of solutions/ideas ... then <effect> .... If <cause>, ... Injection If <cause>, ... • Injections: Solutions developed by the help of the Thinking Processes. • Idea injected into dynamic/active system. Applications
- 19. 19 3. Becoming Agile Anticipating the impact of solutions/ideas ... then I formally can lead a pro- cess assessment. If I‘ve passed the exam for an process improve- ment assessor, ... If have registered with the registration body, ... If I can prove the requi- red evidences of expe- rience, ...
- 20. 20 3. Becoming Agile Clarifying the situation with a Objective Tree Objective Critical success factor 1 Prerequisite Prerequisite Critical success factor 1 Critical success factor 1 For the <objective>, I must ensure / have ... For the <CRF> I need …. For the <prerequisite> I need ….
- 21. 21 3. Becoming Agile ToC-Thinking Processes vs Agile Similarities with agile approaches • Current system as the starting point • disciplined approach Differences with agile approaches • ToC also clarifies objectives and vision • Defines target state ex ante • Blue Ocean strategy identifies strategic market niches • Agile: Darwinian paradigm • ToC: Newtonian paradigm Philosophy
- 22. 22 3. Becoming Agile Evaluation: ToC-Thinking Processes Scope: Answers all key questions • What to Change? • To what to Change? • How to Change? Benefits • Comprehensive management philosophy • Robustness Pragmatism combined with systematics • Easy communication of results • Danger of the illusion of understanding Shit In, Shit Out • Discipline and practice required Prepare yourself thouroughly Ask for professional support first Caveat
- 23. 23 3. Becoming Agile CONTACT Kugler Maag Cie Leibnizst. 11 GER-70806 Kornwestheim information@kuglermaag.com www.kuglermaag.de www.kuglermaag.com Questions? With pleasure!