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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.

    [email protected]

    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.

    [email protected]

    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