Theory of Constraints Handbook - James Cox Iii [295]
These five questions provide a simple analysis and consensus roadmap for any CI initiative and can generally be presented and applied in a five-day workshops5—one day per step as long as all the key stakeholders are present.
Step1 (Day 1) aims to get agreement on the new systems approach (transition from the conventional limiting to the enabling paradigms of TOC). It also includes getting agreement on the answer to “Why change?” for the system and its stakeholders being analyzed by identifying the system’s performance gap, consequences of not closing the gap, and the list of UDEs of each stakeholder that make it difficult for them to contribute to closing the gap.
Step 2 (Day 2) aims to answer and gain consensus around “What to change?” by getting each stakeholder to verbalize their conflict in addressing their UDEs, showing how these are examples of a deeper core conflict, and then identifying possible erroneous assumptions and related policies and measurements that block closing the gap effectively and efficiently.
Step 3 (Day 3) is dedicated to answering “To what to change?”; achieving consensus on which new assumptions and related policies or measurements will break the conflict; remove the UDEs; and close the gap without creating new UDEs.
Step 4 (Day 4) is focused on answering “How to cause the change?” by identifying the possible risks (negative branches and implementation obstacles) and how to prevent or overcome these risks by constructing a sequenced implementation plan.
Step 5 (Day 5) is focused on agreeing how specific contributions will be measured and recognized as well as how stakeholders will know that the gap is really closing, which provides the answer to “How to measure the change and create POOGI?”Figure 15-9 shows a graphical representation of how to use the TOC TP as a generic CI and auditing process.
TOC’s Functional Management Solutions and Their POOGI Mechanisms
The simplified TOC TP analysis roadmap also provides a simple framework for capturing the full TOC analysis and solutions for each of the main functions within organizations: Operations, Finance, Projects, Distribution, Marketing, Sales, Managing People, and Business Strategy. For each of the applications, the simplified TP roadmap with the five change questions can be used to communicate a summary of the TOC analysis. This answers the five change questions, including the gaps in prime measurements (how we know improvement in this area is really needed), the typical UDEs that make it difficult to close the gap, the core conflicts, the erroneous assumption and related “old rule” or core problems that should be challenged, the new TOC insight to break the core conflict and related change in policies, measurement, or process (new rules), the steps to implement the change, and finally the POOGI.
Figures 15-10, 15-11, and 15-12 show the summary of the TOC analysis and CI opportunity and solution for managing Operations, Projects, and Distribution/Supply Chain. Appendix A contains the TOC analysis and CI opportunity and solution for managing Finance, Marketing, Sales, People, and Business Strategy.
These templates can be used as an auditing tool to identify CI opportunities within your organization. If your organization suffers from the performance gap and the UDEs stated in any of the “Why change?” boxes, it is likely that the associated TOC solution (Answers to “What to change?” “To what to change?” and “How to cause the change?”) can provide a simple and powerful way to unlock inherent potential. The way to measure and achieve ongoing