Dominik Strube – Theory of Constraints. The Thinking Processes

The Thinking Processes of Goldratt's Theory of Constraints enable decision makers to improve and even transform their in-live systems - process-oriented organizations or problems to be solved – with an minimum of effort.

1. Thinking
Processes
Theory of
Constraints
————————
Dominik Strube

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. W
2. To what to change?
3. How to cause the change?

6. 6
2. Impacts
TOC‘s Thinking Processes in action
• Int
• Stand alone solutions
Domains
GoTree
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
GoTree
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
• D
alternatives of action
• Conflict of interest
• Fire cloud: politics
prevents prudent
situational action
TypesNecessary logic
Ob
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
<objective>, I‘ve
to ensure that
<requirement>.
• The <requirement>
that we want to satisfy by the <action>.

resp.

To <requirement>, we have to achieve this <prerequisite>.
Nomenclature
Produce large lots
Produce small
lots
Minimize
spendings
Maximize
throughput
To maximize
profit
To aTo 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
AsAssumption
Assumption
• V
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
• C
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
• CAre
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
Re
old
Prerequisite
Requirement
new
Re
Objective
• S
requirement
Proceeding

15. 15
2. Impacts
Resolving dilemmas / conflicts
GoTree
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
As
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>, ...InjectionIf <cause>, ...
• In
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-
c
ess 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
Ob
Critical success
factor 1
PrerequisitePrerequisite
Critical success
factor 1
Critical success
factor 1
For the <objective>,
I must ensure / have ...
For the <C
RF>
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 a
• Defines target state ex ante
• Blue Ocean strategy
 identifies strategic market niches
• Agi
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
•
Da
of understanding

Shit
InOut
• Discipline and practice
required

Prepare yourself

thouroughly


As
professional
support first
Caveat

23. 23
3. Becoming Agile
CONTACT
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[email protected]
www.kuglermaag.de
www.kuglermaag.com
Questions?
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