Strube - 2016 - Theory of Constraints Thinking Processes.pdf
- 2. 2 1. Digital Maturity Theory of Constraints – The Scope Domain-specific applications Management system and problem solving tool set Efficient operativions 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!