TOCPA 15* International Conference of the TOC Practitioners Alliance - TOCPA 1S5ETOCPABIRSX - 2014 TOCHITS November 14-15, 2014, China 2014F11914-15H , "Al Analyzing Current Reality — Two Approaches to the Current Reality Tree - Fa AFA st \C Sreategic Solutions, EstoniaGES HSEM Ce TOCPA) ‘www.tocpractice.com 7 RCEIRL SAB 15 TOC S Ais ne eee as BEF, Hust We. Pater: meh Lirap ats “a R=. LAR BAR Beh. j Be AE he. an SHEL, anes Ez, POAISTR ERAS , UHI Behind the Cloud — Enhancing logical thinking; Through Clouds to Solutions; and Mistakes and Difficulties in Working with TOC Logical Tools , HTOCES SS RARIEA ARs _ BE Sax Sie TOC BAI SayPeeseHelelETheory of Constraints Sees se IAIOCBANEA RES TOC Strategic Solutions Ltd BIER BTOCPAER AY Gl St FAA fs ia BH Jelenafedurko.gs@gmail.com ‘www.toc-strategicsolutions.com www.tocpractice.com Copyright@2014by OdedCohen&JelenaFedurko -—«15" International Conference of the TOC Practitioners Alliance- TOCPATOCPA) Gunning www.tocpractice.com Jelena Fedurko is a Co-Founder and Co-President of 9 TOC Practitioners Alliance TOCPA and International Director of TOC Strategic Solutions. Jelena has been involved in TOC since 1999. She is a TOC expert, trainer and consultant, and provides TOC implementation support in production, supply chain and project management. Jelena has worked in various countries all over the world, including Japan, Poland, Turkey, Italy, Russia, Ukraine, India, China, Chile, Colombia, Mexico. Jelena is the author of the books Behind the Cloud, Through Clouds to Solutions, Typical mistakes in working with TOC Logical Tools. Together with Oded Cohen Jelena has co-authored the book Theory of Constraints Fundamentals. She has contributed to a number of books on TOC, and has many publications. Jelena is the translator and editor of Copyright@2014by Oded Cohen&JelenaFedurko -—«15" International Conference of the TOC Pract _. Jelena Fedurko ia BH Jelenafedurko.gs@gmail.com ‘www.toc-strategicsolutions.com www.tocpractice.com ers Alliance-TOCPA#§2 Abstract Ce TOCPA) BSE (TP) BTOC HBB HAs , ILTOCMILA REBAR AICSRE SE ATIAAVACHS, TORAH NEMA. UT Os | RODS RSA, x , RSs UTTAA (CRT ) Ait, SARE ARKA , TRANS AS RASA , SMRRAAE, FICRTBYT ASAI , Hee BR TOCH ETE) Ty RNS 9} AT ie lo IAB RE IE , BERIMSHECRT , THREE AMLIA] Copyright@2014by OdedCohen&JelenaFedurko -—«15" International Conference of the TOC Practitioners Alliance- TOCPATOCPA #§2 Abstract Ce ‘www.tocpractice.com The Thinking Processes (TP) are an important part of the TOC. They provide the TOC practitioners with the ability to capture and record the conceptual and practical base of any solution. There are situations when the generic solutions of TOC are not applicable. If a new strategic solution is needed to be developed — there is a need for thorough understanding of the problem to be solved. This is when the need for the Current Reality analysis is crucial. The analysis is captured in the Current Reality Tree (CRT). Is contains a structural cause and effect (C&E) connections explaining how the core problem is in e problems that cause the system to perform in an constructthe CRT. The presentation describes one thatis less know to the TOC community proach has been proven to bring better area of identifying the core problem. 15® International Conference of the TOC Practitioners Alliance- TOCPA.TOC:: KRASUESEA copyright ae www.tocpractice.com AANBATOCPASIMSH , KATOCPA SpSrita , SAE, HM, Stl RR, PD, QAR EAS. Rage e TOCPA conference materials and 1, reprinted, dismantled, plagiarized, it the permission from the TOCPA ie cooperation. 15® International Conference of the TOC Practitioners Alliance- TOCPA.TOCPA . TOC = TOC Solution for NI Solutionee Gunnin Managing Systems and People www.tocpractice.com Strategy: Management enhance their ability to improve the performance of the system under their responsibility £ Tactics: Management employ the TOC Management Tools a £ I T T 1 Mindset & CurrentReality Future Reality Transition POOGI Basics Understanding Establishing the Implementingthe Continuous ‘Commitmentto the problem Solution Solution Improvement Logic based WHAT to Change | | What to Change TO | | HOW to Change How to Grow Management 1 15® International Conference of the TOC Practitioners Alliance- TOCPA.TOCPA re Current Reality Tree TOC: ‘www.tocpractice.com Current Reality Tree (CRT) is a logical structure describing cause-effect relationships in the analyzed area of the current reality. The main goal of the CRT is to help deeper understanding of the core problem that causes major UDEs in the analyzed environment. Two approaches to building an CRT and its objective: -CRT is used for recording cause-effect relationships between and among effects in the analyzed area. Only in the final steps of the work, after the relationships are established, the common causes and the core ‘trying to understand what they are. jand validating that the Core Cloud (that nsolidated clouds of the UDE clouds) conflict of the entire area as defined by 15® International Conference of the TOC Practitioners Alliance- TOCPA.TOCPA Why the approach TOC visio CRT for recording cause & effect? www.tocpractice.com Often used by consultants that have very little knowledge of a new environment: *Totally new environment (e.g. new production environment, moving from work with business to work with non-profit izations, or the other way around, etc.) iness practices, different nks/ foreign companies) "45" International Conference of the TOC Practitioners Alliance-TOCPAZ Why the approach T Gone) CRT for recording cause & effect? www.tocpractice.com Why this approach? «Immediate, fast and easy way of recording information, also easily saved and retrieved. «lmmediate visual and logical evaluation of cause and effect (C&E) sufficiency — to ensure understanding. *Helps to keep the discussion focused. Excellent opportunity to present oneself as having superior skills and tools. Jing, does not require (either from the ed) the detailed analysis and deep ession that they also have gained 15" International Conference of the TOC Practitioners Alliance-TOCPA.TOCPA Avanine Why the approach TOC tae CRT for checking and validating the Core Cloud? www.tocpractice.com To ensure that we focus the solution on the right conflict and to ensure that our efforts are not futile. nternational Conference of the TOC Practitioners Alliance- TOCPATOCPA www.tocpractice.com TOC Difference in the process CRT for recording C&E 1. «Collect» some meaningful entities (5-10) from the area of the analysis. [Sometimes the recording starts with 2-3 entities, oreven one entity — usually the one about which the consultant does not understandwhat has causedit or where it leads to}. 2. Diagramthe C8E relationships betweenthem. [If the CRT started froma very few entities, establishing C&E relationships leadsto a natural “growth” of the logical structure aroundthe starting entity(s). 3. Identify the core cause—look at the entities at the bottom of the structure and try to understand what causes them. CRT for checking and validating the Core Cloud 1. ListUDEs in the area under investigation. UDEs are not justproblems or complaints. Thereare very strict rules asto which statementcan qualify as an UDE and which not. Only a few of the complaints or problems will be accepted as. UDEs. Majority of statements in the list will be obstacles, blames, hidden solutions, etc. 2. Buildan UDE map through estblishng C&E relationships. 3. Take three UDEs (standing at the very bottom of the map or from differentareas of the system) and build for every UDE an UDE Cloud. 4, Consolidate the three UDE Clouds into a Consolidated Cloud. 5. Check all other UDEs- whetherthe ConsolidatedCloud representsthem. If not—for every UDE thatis not represented bulldits own UDE Cloud and consolidate with the previously consolidated one. 6. Take the final consolidated cloudand put it as the Core Cloudin the base of the CRT. 7. Connectthe Core Cloud andthe UDE map through C&E relationships. 8. «Unfold» all arrows through logical reasoning and bring supportingstatements, 9. Validate thatthe Core Cloud causes all UDEs. Copyright @ 2014 by Oded Cohen& Jelena Fedurko 15® International Conference of the TOC Practitioners Alliance- TOCPAAvanine www.tocpractice.com CRT for recording C&E The Core Problem? Difference in the process TOC: CRT for checking and validating the Core Cloud onal Conference of the TOC Practitioners Alliance- TOCPA.How to combine the both TOC ss Coemence approaches wwwtocpractice.com 1. Write down a few meaningful entities from the area of the analysis (or “grow” 1 or 2). 2. Diagram the C&E relationships between them. THIS GIVES US A CRT FOR RECORDING C&E 3. Check which entities in the logical structure can be UDEs by that they will qualify to be accepted ternational Conference of the TOC Practitioners Alliance- TOCPAKae How to combine the TOC see Gxocmience both approaches www.tocpractice.com FROM THIS POINT ON WE FOLLOW THE PROCESS FOR THE CRT FOR VALIDATING THE CORE CLOUD 5. Take three UDEs (standing at the very bottom of the map or from different areas of the system) and build for every UDE an UDE Cloud. 6. Consolidate three UDE Clouds into a Consolidated Cloud. 7. Check all other UDEs — whether the Consolidated Cloud represents them. If not — for ao UDE that is not represented build its own UDE Cloud and reviously consolidated one. | cloud and put it as the Core Cloud in the base ie UDE map through C&E relationships. logical reasoning and bring supporting d causes all UDEs. 15" International Conference of the TOC Practitioners Alliance-TOCPATOC si Let’s look at the process of national Conference of the TOC Practitioners Alliance- TOCPATOCPA ractice. “G0 RULES FOR WORDING UDEs 1.UDE is a an ongoing problem that exists in your reality because of which you cannot perform better. 2.It is a description of the state — not a one-time action (its wording cannot have verbs like ‘get’, ‘ 1. List UDEs in the area under investigation ‘go’ etc). 3.It is within your area of responsibility. 4,Something can be done about it. ‘It’s too hot outside’ — not an UDE. We cannot change it, we can only change what we will do about feeling hot. should not contain such adjectives as ‘difficult’, 15" International Conference of the TOC Practitioners Alliance-TOCPA.2. Build an UDE map through 9 [OC =~ Garemence establishing C&E relationships www.tocpractice.com The number of UDEs, the shape of the map and the UDE sequence will be specific for every case. Conference of the TOC Practitioners Alliance-TOCPATOCPA) An UDE map as the result of Kae the CRT for recording Gxocmience C&E relationships www.tocpractice.com We come to the same result in the combined method of building CRT: 1. Write down a few meaningful entities from the area of the analysis (or “grow” 1 or 2). 2. Diagram the C&E relationshipsTocpA) 3. Take three UDEs (standing TOC strategic at the very bottom of the Solute Kae map or from different areas Licentiate of the system) and build for wnenocpreese=" every UDE an UDE Cloud UDE Conference of the TOC Practitioners Alliance-TOCPAat the very bottom of the www.tocpractice.com every UDE an UDE Cloud TocpA) 3. Take three UDEs (standing TOC map or from different areas of the system) and build for ‘UDE: Resources are not always available when needed. B Deliver all orders on time A profitable business Cc Meet sales targets D Reject some of client orders D’ Accept all client orders n International Conference of the TOC Practitioners Alliance-TOCPA4. Consolidate the TOCPA “2 three UDE Clouds into a TOC w= www.tocpractice.com Consolidated Cloud Copyright@2014by OdedCohen&JelenaFedurko -—«15" International Conference of the TOC Practitioners Alliance- TOCPATOCPA) 5. Check all other UDEs on whether TOC . the Consolidated Cloud represents we No Soluiigae Kae them. If not - for every UDE that is EXPERIENCE not represented build its own UDE wwwrtocpractice.com Elqud and consolidate with the previously consolidated one IF «NOT»: UDE XX Take each UDE that does not have its UDE u Cloud and check whether this UDE harms/endangers B (or C, because the cloud can flip) in the Consolidated Cloud. Fi If the UDE does harm/endanger B, this means that it is reflected by the Consolidated Cloud. If not — build its UDE Cloud and consolidate it with the existing consolidated cloud. Repeat this process for the rest of the UDEs. UDE XX o Copyright@2014by Oded Cohen&JelenaFedurko «15 International Conference of the TOC Practitioners Alliance- TOCPA6. Take the final consolidated cloud and put it as the Core Cloud in the GuaRinc base of the CRT www.tocpractice.com Take the consolidated (Core) cloud for this area of investigation and turn it 90 degrees so thatA would be down, B and D to the left of itand C and D’ to the right. lucing into the CRT — change the of the arrows so that they will lead up. mnference of the TOC Practitioners Alliance - TOCPA6. Take the final consolidated cloud and Oc rated put it as the Core Cloud in the base of we No Soluiigae the CRT. Change the wording and add assumptions. TOCPA www.tocpractice.com Example - the base of the distribution system CTR py We feel pressure to hold less inventory D We feel pressure to hold more inventory ‘Assumption B-D ‘Assumption CD” c We must control cost Credit lines to Assumption A-C Cost negatively impacts profit, ROI and cash flow | be a CRT base. 15" International Conference of the TOC Practitioners Alliance- TOCPATOCPA| 7. Connect the Core Cloud Stic TOC:: Kae and the UDE map through ew carenienes C&E relationships www.tocpractice.comA| 8. «Unfold» all arrows through TOC "2 Kae logical reasoning and bring Croemience supporting statements www.tocpractice.com UDE map with the unfolded arrows between the UDEs Explaining the logics the statements li inference of the TOC Practitioners Alliance-TOCPA9. Validate that the Core TOC sisson el Cloud causes all UDEs SolutiTOCPA) Check the logic in all CRT (a connections ‘www.tocpractice.com To complete the CRT, check the existence and accuracy of C&E relationships in all arrows in the tree Use Categories of Legitimate Reservations (CLR) -— to check your own tree, as well as when somebody else presents their tree and you want to clarify logical connections and entities. Categories of Legitimate Reservations: its and criticism regarding the presented CRT. 15® International Conference of the TOC Practitioners Alliance- TOCPA.iat ia ank you 15" International Conference of the TOC Practitioners Alliance- TOCPA