Complex Problem Solving

Which rules/tests logic do you know?

1. Clarity 2. Entity existence 3. Causality existence 4. Cause sufficiency 5. Additional cause 6. Cause-effect reversal 7. Predicted effect existence 8. Tautology (circular logic)

Which are the 5 Steps of Theory of Constraints

1. Identify the system constraint >What part of the system is the weakest link? >Is it a physical or a policy constraint? 2. Decide how to exploit the constraint >What can we do to get the most out of this constraint without committing to potentially expensive changes or upgrades? 3. Subordinate Everything Else >De-tune parts of the system to eliminate the constraint >Adjust the rest of the system to a setting that will enable the constraint to operate at maximum effectiveness 4. Elevate the constraint >If steps 2 and 3 are not sufficient, major changes need to be made >May involve considerable investment in time, energy, money, etc. 5. Go back to step 1, beware of inertia >After the constraint is broken, look for the next thing constraining the system >The cycle never ends

Elaborate on Causality Existence

>Check the validity of the arrows/connections between the entities >Does the cause really result in the effect? >If-then verbalization check >Is the cause intangible? >Frequently an effect may be directly measureable or observeable (i.e. tangible), but the cause ist not >At least one effect needs to be tangible

Elaborate on Tautology

>Circular logic: The effect is offered as a rationale for the existence of the cause >Example >Statement: "The Dodgers lost the game because they played poorly" >Challenge: "What makes you think they played poorly?" >Rationale: "They lost the game, didn't they?"

Elaborate on Cause-Effect Reversal

>Distinction between why an effect exists versus how we know it exists >Test: "Is the stated cause the source of the effect or is the effect really the source of this cause?

Elaborate on Clarity, whats the purpose?

>First check to eliminate misunderstandings resulting from inaccurate or incomplete communication of an idea >Goal: Mutual understanding when constructing, validating, and streamlining logic trees >Listener and speaker need to agree on the meaning and/or significance of the speaker's statement/entity (not on the content)

Elaborate on Predicted Effect Existence

>If a proposed cause-effect relationship is valid, some other unstated effect would also be expected

Elaborate on Cause Insufficiency

>In complex problems, a given effect will often have multiple dependent causes >Include only those major causes without which the effect would either cease to exist or would not be consequential anymore >Do not omit „obvious" causes >Contributing entities are linked through an ellipse (AND gate) >Rule of thumb: Limit the number of contributing causes to 3-4

Elaborate on Additional Cause

>More than one completely independent cause can produce similar effects >Neither depends on the presence of the other >Keywords: "either" and "or" >Test for an additional cause condition: „If I eliminate the stated cause, is there any other circumstance under which the same degree or effect would occur?"

Elabroate on Entity Existence

Entity: complete idea expressed as a statement Requirements: Completeness(Complete sentences) Structure (Single entity --> only one idea, no IF statements), Validity (Content of the statement is sound or well founded)

What are the basic pricinples of Theory of Constraints?

Systems as Chains: If systems function as chains, weakest links can be found and strengthened Local vs. System Optima: The optimum performance of the entire system is not equivalent to the sum of all the component optima Cause and Effect: All systems operate in an environment of cause and effect Undesirable Effects and Critical Root Causes: Nearly everything we see and don't like are not problems, but indicators - resultant effects of underlying causes Eliminating undesirable effects gives a false sense of security Eliminating a critical root cause eliminates all corresponding undesirable effects and prevents them from returning Solution Deterioration Goldratt: „Yesterday's solution becomes today's historical curiosity" Process of ongoing improvement is essential for updating and maintaining the efficiency and effectiveness of a solution Physical vs. Policy Constraints: Most constraints originate from policies (i.e. how we choose to operate) not from physical things Ideas are Not Solutions: The best ideas never realize their potential unless they are implemented Many great ideas fail in the implementation stage