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26th International Conference of the
TOC Practitioners Alliance - TOCPA
www.tocpractice.com 19-20 May 2016 !"#"o#a $apan
Development of
TOC Thinking Processesand their application for
companies & individuals
Oded Cohen & Jelena Fedurko
Estonia & Israel
TOC Strategic Solutions
tocExpert
19 May 2016
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Oded Cohen
Oded has over 35 years of experience in developing,teaching and implementing TOC methodology,solutions and implementation processes workingdirectly with Dr. Goldratt all over the world. Among the
countries to which Oded brings his expertise are theUSA, Canada, Japan, India, China, the UK, Poland,Russia, Ukraine, Colombia, Chile, Peru, Turkey andmany others.
Oded has authored multiple TOC articles and
contributed to numerous TOC books.
Oded is the author of Ever Improve – A Guide to Managing Production the TOC Way , published in June2010. Oded co-authored the book Deming & Goldratt: The Theory of Constraints and the System of
Profound Knowledge – The Decalogue.
Together with Jelena Fedurko Oded has co-authoredthe book Theory of Constraints Fundamentals.
Oded is International Director of TOC StrategicSolutions Ltd and Founder and Co-President of
TOCPA.
www.toc-strategicsolutions.comwww.tocpractice.com
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Jelena Fedurko is a Co-Founder and Co-President ofTOC Practitioners Alliance TOCPA and InternationalDirector of TOC Strategic Solutions.
Jelena has been involved in TOC since 1999. She is aTOC expert, trainer and consultant, and provides TOCimplementation support in production, supply chainand project management. Jelena has worked in variouscountries all over the world, including Japan, Poland,Germany, Switzerland, Turkey, Italy, Russia, Ukraine,
India, China, Chile, Colombia, Mexico.
Jelena is the author of four advances books on TOCThinking Processes: Behind the Cloud (2011), Through Clouds to Solutions (2013), Typical mistakes in working with TOC Logical Tools (2014), A Good
Strategy & Tactic Tree (2016). Together with OdedCohen Jelena has co-authored the book Theory of Constraints Fundamentals (2012). She has contributedto a number of books on TOC, and has manypublications. Jelena translated and edited severalmajor TOC books.
www.toc-strategicsolutions.comwww.tocpractice.com
Jelena Fedurko
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What is unique about TOC
1. Search for a logical reasoning
The use of Cause & Effect relationships to structure our thinking,
record our analysis and understand the suggested solution forany problem (based on Convergence)
2. Resolve conflicts
A strong belief that there should be no conceptual conflict withinour reality – hence – striving to find a win-win solution to anyperceived “no solution situation” (Local & Global)
3. Seek for collaboration and contribution
The use of TOC logical tools logic to communicate to ourselvesand thereafter to the team with the view of working together to
achieve the desired improvement (based on Respect)
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Development of
TOC Thinking Processes
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!rief "istor# of the Development of
The TOC Thinking Processes
1983 – The realization of the Green Curve & Red Curveof improvement patterns
1985 - The use of Cause and Effect (C&E) in NegativeTrees (for problems) and Positive Trees (for thesolutions)
End 1985 – Strategy & Tactic structure (discontinued)
1986 – the formalization of the 5 steps of focusing 1987 – the “Jonah Program” (production based) 1990-1992 – the development of the TP Map:
CRT – Current Reality Tree Core Cloud
FRT – Future Reality Tree PrT - Prerequisite Tree
TrT – Transition Tree
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!rief "istor# of the Development of
The TOC Thinking Processes 1993 – Clouds for individual’s problems
1995 – MSW – Management Skills workshops – Daily TP
1995-1997 – TP maps for the TOC Logistical Solutions
2001 – Strategy & Tactic Tree – round 2
2006 – S&T Tree formalized
2006 – The U-Shape
2007-2009 – Standard S&T trees for DCE 2008-2010 – Formalizing sets of injections for standard solutions
2008-2010 – Injection implementation knowledge – Ever Improve
2011 – Mistakes and Rules for Working with Assumptions –
Behind the Cloud 2013 – Working with UDEs and UDE Clouds for system analysis –
Through Clouds to Solutions
2014 – Mistakes and Difficulties in working with TOC Logical Tools
2016 – A Good S&T Tree
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$sing Thinking Processes Tools
To create and enhance thinking/learning skills
To gain better decision-making To handle dilemmas and conflicts with more
confidence and better outcome
To assist in evaluating conditions for achieving adesired outcome
To assist in relationship between subordinates and
bosses
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1. Disagreement on what the problem is
2. Disagreement with the direction of solutions
3. Disagreement that the solution will bring thedesired benefits
Yes, but…4. Fear that the solution will result in negative
consequences (Risks)5. Obstacles to implementation seem to be
impossible to overcome
6. Say “Yes” and do nothing
% a#ers of
'esistance to Change
A p p l i c a t i
o n o f t h e
T O C
T h i n k i n
g P r o c e s s e s
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TOC Logical Tools
for building thinking skills
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• Comprehension – understanding the meaning,interpretation, ability to state a problem in one’s own
words (while knowledge is ability to recollect andreproduce data and information)
• Analysis – breaking down material/concepts intocomponents to detect relationship among the parts or theparts and the whole (requires comparing and contrasting);distinguishing between facts and inferences; recognizinglogical fallacies in reasoning
• Synthesis – forming a whole through buildingup/connecting elements to create a larger and morecoherent pattern
• Creative thinking – ability to devise innovative solutions
(a)or Thinking *kills
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Comprehension
COMPREHENSION is ability to understand the meaning,interpret, and state a problem in one’s own words.
D
D’
The need that issatisfied by the
action in DThe common objective
achieved by havingB and C
A
C
B
Action 1
Action 2
The CloudUnderstanding and verbalizing the situation in which a person or a systemis caught between two mutually exclusive actions or modes of behaviour.
Conflict
The need that issatisfied by the
action in D’
In the Cloud we state what for we want to take an action, and what for wewant to satisfy the need. With that we claim that if we do something – it will
give us a certain effect.
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D
D’
Retain keyaccounts
Prevent disciplinedeterioration in thesales department
Ensure smoothfunctioning ofthe company
A
C
B
Fire “the star”sales person
Do not fire“the star”salesperson
To achieve what?
To achieve what?
Toachievewhat?
D
D’
Cloud + ,-ample
Dilemma of a *ales Director
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D
D’
Retain key
accounts
Prevent disciplinedeterioration in thesales department
Ensure smoothfunctioning ofthe company
A
C
B
Comprehension
What keeps this Dilemma in place
Fire the “star”
sales person
Do not fire
the “star”sales person
Assumptions behind the arrows in the Cloud
B-D: Seeing no punishment of the “star” sales person,
the other sales people will do the same.
C-D’: The ke a!!ounts "u from the !ompan not"e!ause of the produ!t, ser#i!e, or relia"ilit, "ut
"e!ause of the “star” sales person.
D-D’: $ !annot predi!t the
response ofthe kea!!ounts to firing “their”
sales person
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Comprehension
The Negative Branch
Understanding and verbalizing possible negative outcomes of a
decision/action.
Decision/action
Possible negative outcome
will happen
will happen
will happen
Exists/ will happenindependently
Exists/ will happenindependently
Exists/ will happenindependently
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.nal#sis and *#nthesis
Analysis – breaking down material/concepts intocomponents to detect relationship among the parts orthe parts and the whole (requires comparing andcontrasting); distinguishing between facts and
inferences; recognizing logical fallacies in reasoning.
Synthesis – forming a whole through buildingup/connecting elements to create a larger and morecoherent pattern.
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.nal#sis and *#nthesis
A major TOC tool to assist with
Analysis and Synthesis – the U-Shape
C
u r r e n t R e a l i t y
F u t u r e R e a l i t y
Low PerformanceMeasurements
Low PerformanceMeasurements
TOC InjectionsTOC Injections
High PerformanceMeasurements
High PerformanceMeasurements
TOCdirection of
solution
TOCdirection of
solution
P/0OT
TOC
UDE
UDE
UDE
UDEUDE
UDE
DD D’D’
CCBB
AA
DE
DE
DE
DEDE
DE
NBRs
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Creative thinking
Creative thinking – ability to devise innovative solutions.
Major TOC tools to assist withCreating Thinking:
• Developing Injections to theCloud
A
%
C
• Developing SupportingInjections to trim identified
Negative Branches
Injection
Injection
Possible negativeoutcome
+
+
+
SupportingInjection
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Is there any differencebetween
• the full set of TOC TP,• the TOCfE’s tools, and
• the Management Tools?
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• NO DIFFERENCE in the basic
assumption – they all proceed from the sameunderstanding of the governing role of
cause and effect in the behavior ofsystems and individuals
• NO DIFFERENCE in the source – they are all “packages” of the TOC TP
/n 1hich areas there is
2O difference
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• The width – how many TP tools each ‘package’contains
• The depth – the level and the amount of detailed work and precision required
• The practical purpose – for what ‘the packages’ is used
/n 1hich areas there
.', D/FF,',2C,*
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• Full TOC TP – The full set of thinking processes tools fordealing with all problems and managerial challenges:Dealing with comprehensive and strategic issues as well as
daily and local issues.
• The Jonah Program – is geared towards recording thecurrent reality to present or discover a system solution.
• TOC for Education – focuses on TACT – Thinking AndCommunication Techniques with the view of developingskills and applications of 3 basic TP tools: clouds, NBRs andambitious targets (a variation of IO maps).
• TOC Management Tools – lays the foundation for therigorous construction of the basics of TP especially in theproper use of raising assumptions and finding injections. Itstarts with daily problems and progresses to a full systemsolution
TOC TP + Jonah + TOCf, +
TOC (anagement Tools 3(T4
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Why a person who has studied and uses one specific ‘package’ will benefit fromlearning other packages:
A Jonah or a person who is working with TACT (TOCfE) will enjoy 5 level TOC
Management Tools (MT) – because of the new detailed knowledge and practicaltechniques on:
- Typology of mistakes in building clouds (MT-1)
- Different patterns of constructing different cloud types (MT-1)
- Typology of mistakes and sets of rules for working with Assumptions (MT-1)- Typology of mistakes working with UDE Clouds (MT-1)
- Consolidation process in the 3-UDE Cloud method to develop a Core Cloud(MT-1)
- Necessity and Sufficiency Logic in logical trees (MT-2)- Solving a two-sided conflict cloud by converting it into a series of inner
dilemma clouds (MT-3)
- Building a good Strategy and Tactic Tree (MT-4)
- Algorithm of checking and validating justification for decisions (MT-5)
2OT /2 CO(P,T/T/O25
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Why a person who has studied and uses one specific ‘package’ will benefitfrom learning other packages:
A person who has completed TOC MT programs of different levels will enjoy• a Jonah program - because of the deep immersion into their specific area of
system analysis,
• studying TOCfE tools – because of learning the specifics of transferring the
knowledge of basic TP Tools in the educational process and ability to impacta learning process of children and adults.
2OT /2 CO(P,T/T/O25
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Strategy: Management enhance their ability to improve the performanceof the system under their responsibility
Tactics: Management employ the TOC Management Tools
The (anagement Tools
Mindset & Basics
Commitment toLogic based
Management
Current Reality
Understandingthe problem
WHAT to Change
• U-Shape
• C&E
• CLR• Inner Dilemma/Conflict Cloud
• UDEs
• UDE Cloud
• ConsolidatedCloud
• Core Cloud
• CRT
Future Reality
Establishing theSolution
What to Change TO
• Pivot
• Direction
• Injections• DE
• NBR
• FRT
Transition
Implementing theSolution
HOW to Change
• AmbitiousTarget
• PRT
• Detailed plan
• S&T
POOGI
ContinuousImprovement
How to Grow
• Fire-FightingCloud
• Inner Dilemma/Conflict Cloud
Copyright © 2016 by Oded Cohen & Jelena Fedurko
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