Theory of Constraints Handbook - James Cox Iii [484]
Let’s continue our examination of the Customer UDE Cloud.
TABLE 24-8 Assumptions and Injections for Selected Arrows
Once C-D′ assumptions (customer shop’s assumptions about the manufacturer’s behavior as a supplier) are verbalized, it gives the manufacturer an excellent opportunity to develop the solution that will challenge and negate these assumptions. Given that the manufacturer has implemented MTA (as per the storyline), the manufacturer can break the connection between C and D′ and offer the shop whatever quantities they want to buy, whenever the need is, and at a reasonable price—which will satisfy both the shop’s needs, [B] secure revenues through preventing lost sales and overstock, and [C] control cost per unit through making it reasonable to order small quantities.
Step 7: Communicate the solution.
For the Customer UDE Cloud, my recommendation is to develop a presentation that takes the customer through the above steps covering the problem, the direction of the solution, and the proposal based on the injection.
Addressing Multiple Problems—the Consolidated Cloud
Once we master the management tool dealing with individual UDEs, it is only natural that the manager would like to find a solution to a multi problem situation. Managers do not always have the time to conduct a complete TOC TP analysis (CRT and FRT) to develop a comprehensive solution for their area, and hence can use the Consolidated Cloud approach for a shortcut that helps construct a good enough solution that will produce short-term benefits while supporting future improvements.
We cannot call this approach a daily managerial tool, but its foundation is the one-off usages of the UDE Cloud. After using the UDE Cloud several times addressing different UDEs, you may observe a common pattern between the Clouds and you may wonder if there is a more common underlying Cloud and whether all of the UDE Clouds are derivatives of this Cloud. Therefore, you may decide one day to do a deeper analysis.
This process is also known as the Three-Cloud approach. Please note that the Consolidated Cloud (Generic Cloud) represents the reality around the three UDEs that have been chosen for the analysis. It is not necessarily the core problem, as the UDEs may be concentrated only in one part of the current reality and other parts may not be represented in the analysis.
We use three Clouds, as it is usually a good number to get different aspects of the subject or the area under investigation. You may decide to take more UDEs and consolidate more than three Clouds. It may help in achieving group consensus in which its members want to contribute their views on the burning problems that need to be sorted out. The general process for the Consolidated Cloud is given in Fig. 24-9.
When should we use the Consolidated Cloud approach?
1. For analyzing the area under your responsibility. This is the most common use of the method when UDEs deal with the performance of the area and the behavior of the people.
2. Accelerating initiatives. Every organization has improvement initiatives. These are small projects that have been launched with the view that when completed they will bring benefit to the organization. If you are in charge of such an initiative and you are unhappy with the progress, you may consider using this approach. Just collect several of the problems that the initiative encountered and use this method.
3. BM for a POOGI. BM is a kind of problem identifier. It highlights issues that cause penetration in the buffers and cause disruption to the smooth flow of the system. The reasons for buffer penetration are collected and analyzed. We can select three typical problems, build their Clouds, and consolidate them into one Cloud.
FIGURE 24-9 The general process of the Consolidated Cloud.
All of these applications can produce a Consolidated Cloud.