Theory of Constraints Handbook - James Cox Iii [778]
13The TOCICO Dictionary (Sullivan et al. 2007, 35) defines Operating Expense (OE) as “All the money the organization spends in generating “goal units”. Perspective: In the throughput-world paradigm of the theory of constraints, operating expenses include items such as salaries, rent, insurance, and other expenses that would be paid even if operations stopped for awhile. OE does not include expenses that vary directly with production/service volume, such as cost of raw material, commissions, etc. These expenses are considered to be totally variable costs, not OE.” (© TOCICO 2007, used by permission, all rights reserved.).
14The TP are discussed in detail in other chapters in this section. An Evaporating Cloud and the S&T related to the doctor’s application are shown here to illustrate their application to the health care field.
15There is usually a lag time to see the results from actions taken after implementing logically valid initiatives. This delay causes the dynamics and dance between one side of the conflict and the other that results in negative feedback loops with associated undesired side effects.
16Some health providers may be upset by the focus on the goal of a for-profit health provider being to make more money now and in the future. They should be informed that any for-profit business must satisfy two necessary conditions to meet this money goal in the long term. These necessary conditions are that the provider must provide high quality service to the customer (patient in our health care environment) and to have satisfied employees (paid staff in our health care environment). Achieving the goal of making more money now and in the future is impossible unless these two necessary conditions are met. Hence, having already met these two necessary conditions is assumed and any future decision does not jeopardize this.
17TA is discussed in Chapter 14 and also Corbett (1998).
18The TOCICO Dictionary (Sullivan et al., 2007, 29) defines Investment (I) as “All the money currently tied up in the system. As used in TOC, investment refers to the equipment, fixtures, buildings, etc. that the system owns as well as inventory in the forms of raw materials, work in progress, and finished goods.” (© TOCICO 2007, used by permission, all rights reserved.)
19The S&T replaces the Prerequisite Tree and the Transition Tree in developing detailed plans for an organization. It provides the basis for a detailed implementation plan to achieve the viable vision for any system. The health care S&T Tree is a blend of the Reliability, Rapid Response S&T and the Project Management S&T templates.
20The TOCICO Dictionary (Sullivan et al., 2007, 24) defines flying pig injection—“A breakthrough solution or injection that initially seems impossible to implement.” (© APICS 2008, used by permission, all rights reserved).
21Definition is yet to be done for 4:31, 4:32, and 4:33.
1Compromise (noun): something accepted rather than wanted. Compromise (verb): lessen the value of somebody or something. Encarta Dictionary: English (North America) July 2009.
2Throughout this chapter, the word clinicians is used to represent all medical professionals who provide medical services to patients, including physicians, nurses, technicians, etc.
3The TOCICO Dictionary (Sullivan et al., 2007, 21–22) defines core problem as “(a) fact, or conflict, or erroneous assumption that is the source of at least 70% of the undesirable effects in the current reality of the system being studied. Perspective: A core problem can have three manifestations either as 1. a fact, such as ‘efficiency is used as the prime measure in operations,’ or, 2. the conflict between D and D’ in a core conflict cloud, such as ’D. Use local efficiencies as a prime measure, and D ’. Do not use local efficiencies as a prime measure,’ or, 3. an erroneous assumption responsible for the conflict, such as, ’A resource