Jelena Fedurkjghjo_TOCICO 2014_Webinar Series_Part 1_23 Jan 2014

1Webinar Series_2014_Part1 Copyright © 2014 by Jelena Fedurko

Webinar Series: Understanding Systems and Conflicts through Clouds

Part 1: Reasons and triggers for different Cloud types; sequence of constructing;

typical mistakes

Jelena Fedurko

The author of: Behind the Cloud: Enhancing Logical Thinking

and

Through Clouds to Solutions: Working with UDEs and UDE Clouds

[email protected] 2014


Webinar Series: Understanding Systems and Conflicts through Clouds

Part 1: Reasons and triggers for different Cloud types; sequence of constructing; typical mistakes

23 Jan 2014

Part 2: 10 criteria to qualify a statement as an UD E; typical mistakes of constructing UDE Clouds

30 Jan 2014

Part 3: Challenges of cloud consolidation process; working with assumptions

6 Feb 2014


Working with the Cloud


The Cloud –the main logical instrument for understanding the problem/conflict/dilemma and developing a solution.

DD

D’D’CC

BB

AA


In the Cloud we state what for we want to take an action, and what for we want to satisfy the need. With that we claim that if we do something – it will give us a certain effect.

Working with the Cloud –Understanding the Underlying Cause and Effect

D

D’

A

C

B

Action D conflicting with

action D’

To achieve what?

To achieve what?

To achieve what?

D

D’

The common objective

achieved by having B and C

The need that we want to

satisfy by the action in D

The need that we want to

satisfy by the action in D’

Action D’ conflicting with

action D


In the Cloud, we claim that in our understanding th e action D or D’ is a necessary condition to achieve B or C respectfully.

And that the Needs B and C are the necessary condit ions to achieve A.

As long as we speak about the necessary conditions –we employ the Necessity Logic:

something must exist in order to achieve something else.

Working with the Cloud –Understanding the Underlying Cause and Effect


The Structure of the Cloud

DD

D’D’CC

BB

AA Action

Action

To achieve what?

To achieve what?

To achieve what?

• The statement in each box should be worded as a simple sentence without any cause-effect words like “because”, “therefore”, “due to”, “in order to”, etc.

• Each box contains only ONE entity – do not put in the same box several actions or several answers to the question “To achieve what?”

• The objective A and the needs B and C are positive statements. Do not use “not” in the wording of A, B and C.

Main Wording Rules


The protocol of checking the logic in the

Cloud

A

B D

D’C

1. In order to [А]

2. I must [В]3.In order to [B] 4. I must [D]

5. In order to [А] 6. I must [C]

7. In order to [С] 8. I must [D’]

9. [D] and [D’] are in conflict10. [D] jeopardizes achieving the need in [C]

11. [D’] jeopardizes the need in [B]

Check the logic: "In order to (tip of arrow)….. I must (tail of arrow )……"

Does the flow of the words make sense? If not, cor rect the wording accordingly.


The Cloud helps to better understand the situation


D’

Lower stock at Distributor warehouse

C

Control inventory cost

DHave availability of

higher stock at Distributor Warehouse

B

Higher sales

A

Earn higher profit

Exercise 1 – Checking the wording and the logic


D’


C




B

Higher sales

A

Earn higher profit


2 rounds of checks:1. Wording2. Logic


D’


C




B

Higher sales

A

Earn higher profit


Round 1: Checking WORDING


D’

Hold lower stock at Distributor warehouse

C




B

Higher sales

A

Earn higher profit




D’


C




B

Increase Higher sales

A

Earn higher profit




D’


C




B


A

Earn higher profit


Round 2: Checking LOGIC

1. In order to [А]

2. We must [В]

3.In order to [B] 4. We must [D]

5. In order to [А]6. We must [C]

7. In order to [С] 8. We must [D’]9. [D] and [D’] are in conflict10. [D] jeopardizes achieving the need in [C]


Are they?Does it?

What is “lower” or “higher” stock?


D’


C


DIncrease Have

availability of higher stock at Distributor

Warehouse

B


A

Earn higher profit



Let’s use the element of “availability” – assuming t hat “higher” means more stock of the same SKU, and “lower” – less stock of the same SKU

Are [D] and [D’] in conflict? How does [D] endanger [C]?

Is it availability that endangers controlling cost, or is it excess stock ?




D’

Hold lower (= less) stock at Distributor

warehouse

C


DIncrease availability of Hold higher (= more)

stock at Distributor Warehouse

B

Increase sales

A

Earn higher profit

Probably, “higher” and “lower” means total cumulati ve stock.

In this case, the conflict is most likely the follo wing:

It is a generic conflict of any conventional operation that needs to keep stock.




D’


warehouse

C




B

Increase sales

A

Earn higher profit

1. In order to [А]

2. We must [В]3.In order to [B] 4. We must [D]


7. In order to [С]9. [D] and [D’] are in conflict10. [D] jeopardizes achieving the need in [C]


8. We must [D’]



We have a correct cloud that meets all requirements from the point of view of the wording and the logic.BUTDidn’t we lose an important element “availability” that was in the initial wording of D?

D’


warehouse

C




B

Increase sales

A

Earn higher profit


Exercise 1 – Checking the wording and the logic Didn’t we lose an important element “availability” that was in the initial wording of D?



B


This is what we had initially – after we added a ver b to B.

The initial wording in D has 2 entities – “availabil ity” and “higher stock”.

Actually, the initial wording in D has a hidden cau se and effect relationship: Have higher stock in order to increase availability .

We cannot have a cause and effect relationship insi de one entity.

In fact, the logical connection is the following:

DHold higher stock at

Distributor Warehouse

B

Increase sales from Distributor

Warehouse

Increase availability of stock at Distributor

Warehouse



It feels that the intermediate objective of D shoul d become B, and B should become A.



B


Warehouse


Warehouse

To achieve what?To achieve what?



A


Warehouse

BIncrease availability

of stock at Distributor Warehouse

To achieve what?

To achieve what?

If this is the case – what would be C and D’?


Exercise 1 – Checking the wording and the logic It feels that the intermediate objective of D shoul d become B, and B should become A.


Distributor WarehouseA


Warehouse



To achieve what?

To achieve what?

If this is the case – what would be C and D’?

D’Hold lower stock at


C

?

To achieve what?

It is not difficult with D’ – considering that D and D’ should be in the direct conflict, it would be the same as in the original c orrected cloud.BUT – what would be in C so that it will meet 3 conditions at the same time (1) “To achieve what?” for D’(2) a necessary condition for A(3) endangered by D






Warehouse



To achieve what?



C

?To achieve what?

What would be in C so that it will meet 3 condition s at the same time (1) “To achieve what?” for D’(2) a necessary condition for A(3) endangered by D

The statement that I see as meeting the three condi tions will be along the lines of:

Avoid freezing scarce money in non-moving stock.





A


Warehouse



To achieve what?



CTo achieve what?

What would be in C so that it will meet 3 condition s at the same time (1) “To achieve what?” for D’(2) a necessary condition for A(3) endangered by D

Avoid freezing scarce money innon-moving stock.

However, in this case the meaning of “stock” in D a nd D’ and meaning of “stock” in C are DIFFERENT:

D and D’ speak about quantity , while C speaks about movers vs non -movers. However, the moment we start speaking about “the sa me” stock and add element of ‘moving stock” to D and D’, the clou d disappears.



DHold higher stock OF

HIGH-MOVERS at Distributor WarehouseA


Warehouse



D’Hold lower stock OF

NON/SLOW-MOVERSat Distributor Warehouse

CAvoid freezingscarce money innon-moving stock.

The moment we add element of ‘moving stock” to D an d D’, the cloud disappears.

D and D’ stopped being in conflict – now it is D AND D’

D does not endanger C

D’ does not endanger B

AND

There is NO cloud if we use the entity in C as shown above.

To change the intermediate objective of D (availability) to become B, and B to become A is NOT the way to proceed

with this cloud.



It feels that the intermediate objective of D shoul d become B, and B should become A.



B


Warehouse


Warehouse

To achieve what?To achieve what?




Warehouse



To achieve what?

To achieve what?


Exercise 1 – Checking the wording and the logic How NOT TO LOSE the important element “availability ”?



B


This is what we had initially – after we added a verb to B:

If we cannot keep an element in the entity of the C loud but feel that it is important – most probably this element is a part of an assumption that connects the two entities.We removed “availability” from D, but it is certain ly an element of an assumption. And by keeping it in an assumptions we will not lose it:



BIncrease sales

In order to We must

Because: Assumption B-D: What is not available (stock-outs) does not sell.

We will speak about assumptions later in

this series.


The Cloud is the “raw material” for finding the

solution


The Cloud is the “raw material” for finding the solution. We replace the conflict/dilemma with Injection that solves it.

DD

D’D’CC

BBAA

IMPORTANT OBSERVATION:

In working with the Cloud, major efforts are spent in trying to understand WHY THE CONFLICT EXISTS.

In my views, the focus should be more on what makes the cloud owner believe that D and D’ are the NECESSARYCONDITIONS for B and C .

With that – we shift the focus from WHY there is a conflict to HOW to MEET B and C.

Important understanding about the Cloud

DD

D’D’CC

BBAA

CC

BBAA ?


By focusing on HOW to meet both B and C, we develop an INJECTION that removes the conflict.

DD

D’D’CC

BBAA

CC

BBAA Injection

However, it is impossible to move from the conflict directly to an Injection.

DD

D’D’CC

BBAA

DD

D’D’CC

BBAA

CC

BBAA Injection

AssumptionsAssumptions

AssumptionsAssumptions

Assumptions

Assumptions

Assumptions are the central element in the Cloud.

Important understanding about the Cloud


Process of using the Cloud to understand the

situation and try to find a solution

STAGE 1: Identify that you have a problem – this happens every time when you find yourself in a certain situation while you would like to be in a different situation

STAGE 2: Present the situation that is a problem for you as a CLOUD

STAGE 3: Develop assumptions , challenge them and find Injections


STAGE 1: Identify that you have a problem –this happens every time when you find yourself in a certain situation while you would like to be in a different situation

Process of using the Cloud

• On one hand I want that, on the other hand I want to / feel forced to / should do that

• I want that, THEY want that

• The current performance measurements are perceived low (numeric value) because we want/are forced to meet higher level of measurement

• I had to interrupt what I was doing to put down a fire

Internal Dilemma/Conflict Cloud

Day-to-Day Conflict CloudOrganizational Interest Conflict Cloud

UDE CloudConsolidated UDE Cloud

Fire-Fighting Cloud


The meaning of the

Structure of the CLOUD


D

D’

A

C

B 1

2

5

3

4

Different Cloud types have different sequence of building

Inner Dilemma/Conflict Cloud Day-to-Day Conflict Cloud & Organizational Interest Conflict Cloud

D

D’

A

C

B2

4

5

3

1UDE Cloud

D

D’

A

C

B 3

2

5

4

1

Fire-fighting Cloud

D

D’

A

C

B1

2

5

4

3


D

D’

A

C

B 1

2

5

3

4

Let’s first look at ‘simple-to-construct’ Clouds

Inner Dilemma/Conflict Cloud Day-to-Day Conflict Cloud & Organizational Interest Conflict Cloud

D

D’

A

C

B1

2

5

4

3


D

Forced

D’

Preferred

A

C

B1

2

5

3

4

To achieve what?

To achieve what?

To achieve what?

Inner Dilemma/Conflict Cloud

Source: GUK teaching materials, 1999


D

D’

Retain key accounts

Prevent discipline deterioration in the sales department

Ensure smooth functioning of the company

A

C

B

Fire “the star” sales person

Do not fire “the star”

salesperson

1

2

5

3

4

To achieve what?

To achieve what?

To achieve what?

Forced

Preferred



D

D’

A

C

B1

2

5

4

3

What do I want?

What do they want?

To satisfy what need do I insist on what I

want?

To satisfy what need do they insist on what they want?

What is our common objective? Why do we care about finding an acceptable resolution

for both parties?

Day-to-Day Conflict Cloud & Organizational Interest Conflict Cloud

Source: Dr. Eli Goldratt, It’s Not Luck, 1993


D

D’

Rest before the next working

week

C

B

Spend a quiet family weekend

at home

Go for a weekend with my spouse to another part of the country for

an anniversary celebration of a distant

relative

MY SPOUSE’S SIDE

MY SIDE

A

Feel good

Keep promises

1

2

5

4

3



D

D’

Rest before the next working

week

C

B

Spend a quiet family weekend

at home

Go for a weekend with my spouse to another part of the country for

an anniversary celebration of a distant

relative

MY SPOUSE’S SIDE

MY SIDE

Feel good

Keep promisesFeel good



D

D’

A

C

B 1

2

5

3

4


Day-to -Day Conflict Cloud & Organizational Interest

Conflict Cloud

D

D’

A

C

B1

2

5

4

3

The conflict is evident and easy to record.

The FORCED action is very clear and we do not like it, but consider it.

We are in a DILEMMA.

The main focus is on the CONFLICT.

This conflict is also evident and easy to record.

We are NOT in a dilemma. We want to fight for our position – against THEIR position.

The most challenging is to determine THE COMMON OBJECTIVE.

These conflicts are relatively easy to record. They are on the surface, and thinking about the situation is triggered by ev ident contradictions.

RECAP


Clouds that are not that simple to construct

D

D’

A

C

B2

4

5

3

1UDE Cloud

D

D’

A

C

B 3

2

5

4

1

Fire-fighting Cloud


D

D’

A

C

B3

2

5

4

1

What need of the system is jeopardized

by the fire?

What need of the system is protected

by this rule?

What rule prevents the Lieutenant from putting out the fire?

The Lieutenant breaks the rule

(check that it will put out the fire).

What is the lowest objective of the two

needs?

Source: Goldratt Satellite Program, Session 7, Managing People, 1999

Fire-fighting Cloud


D

D’

A

C

B3

2

5

4

1

Maintain good customer

relationships

Only Customer Account Manager

makes all calls to the customer

Allow the shipping person to call the

customer

Have a high level of customer service

Fire-fighting Cloud

Ensure on time shipment to the

customer


by this rule?



needs?


by the fire?

The Lieutenant breaks the rule



D

D’

A

C

B3

2

1

4

5D

D’

A

C

B4

2

1

3

5

The sequence presented in the Goldratt Satellite Program

The sequence that is easier for me to use

Fire-fighting Cloud


D

D’

A

C

B

3 2

5

41


by the fire?


by this rule?

Demand that subordinates strictly follow the rule that

prevents putting out the fire


needs?

Allow subordinates to disregard the rule that prevents putting

out the fire

Fire-fighting Cloud (sequence 2)INSTEAD OF ORIGINAL

GUIDELNES FOR D: The Lieutenant breaks the rule


INSTEAD OF ORIGINAL GUIDELNES FOR D’:



D

D’

A

C

B4

2

5

3

1

Maintain good customer

relationships

Demand that only Customer Account Manager makes all

calls to the customer

Allow the shipping person to call the

customer

Have a high level of customer service

Fire-fighting Cloud (sequence 2)

Ensure on time shipment to the

customer


by this rule?


needs?


by the fire?

Allow subordinates to disregard the rule that prevents putting

out the fire

Demand that subordinates strictly follow the rule that

prevents putting out the fire


D

D’

A

C

B

3 4

5

21Why is this UDE

undesirable – what important need of the

system does it jeopardize/endanger?

What other important need

prevents you from always taking the

action in D?

What action do you take to meet this other

need in C?

What is the common objective achieved with both

B and C?

What action do you take to meet the

jeopardized need in B?

ENDANGERS

UDE

UDE Cloud


The fire-fighting Cloud is triggered by a “fire” that has recently happened in the system.

This analysis comes from the realization that the fire in the system did not happen on its own, but was caused by some element in the system – either because of existence OR lack of a certain procedure, or by violating an existing procedure and lack of mechanism to prevent such violation. The main focus is on the endangered need and what has caused the fire.

To record these conflicts requires deep and concent rated thinking. The main focus is on the endangered needs of the sy stem.

D

D’

A

C

B 3

2

5

4

1

Fire-fighting CloudRECAP

The UDE Cloud is used for system analysis.The conflict – two conflicting modes of behaviour of the system – is not evident and not easy to verbalize.The analysis is triggered by realization of the GAP between the current level of system performance and the desired/required one.The GAP is verbalized as UnDesirable Effects (UDEs). The major effort goes on verbalizing what important need of the system is endangered by the identified UDE.

D

D’

A

C

B2

4

5

3

1

UDE CloudUDE


Jelena has 14 years of TOC experience as atrainer and consultant providing support in TOCimplementations in the areas of production,supply chain, project management, sales,marketing and people management.Jelena has worked in Japan, Poland, Turkey, Italy,Russia, Ukraine, India, China, Chile, Colombia,Mexico and other countries throughout the world.Jelena is the author of the books Behind theCloud – Enhancing logical thinking and ThroughClouds to Solutions. The books present newdevelopments in the area of working withassumptions and UDE Clouds.Together with Oded Cohen, Jelena has co-authored the book Theory of ConstraintsFundamentals .She has authored numerous articles on TOCconcepts and implementation, has written severalchapters in TOC books and has edited a numberof TOC books and publications.

Jelena is International Director of TOC StrategicSolutions Ltd and Founder and Co-President ofTOCPA.

[email protected]

www.toc-strategicsolutions.com

www.tocpractice.com

Jelena Fedurko

Jelena Fedurkjghjo_TOCICO 2014_Webinar Series_Part 1_23 Jan 2014

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