Think Better Using Critical Thinking Processes

Eli Goldratt Originated Thinking Processes for Theory of Constraints

Feb 3, 2009 Roger Lever

Dr Eliyahu Goldratt wrote the novel The Goal and described his Theory of Constraints, and to help solve implementation problems he originated a set of thinking processes.

Every improvement is made through change but every change is not necessarily an improvement. The key to improved thinking and clear thinking is to understand what to change, the goal or changing to what and how to cause the change. Or more simply: what is the goal, what needs to change and how to change it.

Theory of Constraints (TOC)

Eli Goldratt created the theory of constraints and it is composed of five key focusing steps:

  1. Identify the system constraints - what is slowing the process down?
  2. Decide how to exploit the system's constraints - what should the constraint resources be doing to achieve the maximum impact?
  3. Subordinate everything else to decisions made in steps 1 and 2 - align the rest of the organisation and processes with the exploitation decision
  4. Elevate the system's constraints - increase the capacity of the constrained resources enabling the system to do more
  5. Review current system and new constraints and go back to step 1

Types of Constraints

The original TOC was aimed at manufacturing processes but it was quickly recognised that it had a wider scope for application and the types of constraints identified included:

  • Physical - for example throughput in manufacturing plant or service industry throughput
  • Policy - written and unwritten rules that govern action
  • Paradigm - beliefs or assumptions that govern action

Critical Thinking Processes

Implementing TOC led to a number of implementation problems and in particular how to think about the TOC to be able to apply it. Eli Goldratt then originated critical thinking processes to enable people to think better and to solve problems. The two key thinking processes:

  1. Sufficient Cause. Effect-Cause-Effect or finding causes for effects or effects of causes
  2. Necessary Condition. Requirements or finding things that must or must not exist or have to achieve a goal

Sufficient Cause

Sufficient cause thinking is very common for example lower prices will lead to more customer sales. However, there may be a number of legitimate reservations as to why the cause and effect relationship is untrue:

  • Clarity. Incorrect cause and effect relationship, for example lower sales may be attributed to price but further analysis reveals lost sales to a new competitor with a higher price
  • Insufficient cause. More than one cause creates an effect
  • Predicted effect. What would show the effect, in particular are the cause and effect relationships correct and the predicted effects are visible

Necessary Condition

To find the necessary conditions surface the underlying assumptions and brainstorm the potential alternatives. Making all of the assumptions visible allows them to be tested for validity and necessity. For example reduce costs for higher profits may assume that reducing cost has no effect on sales such as reduced quality or reduced volume. Having identified assumptions it becomes possible to brainstorm alternatives that may remove or invalidate those assumptions.

Think Better Using Critical Thinking Processes

Think better using TOC thinking processes because it encourages critical thinking processes -- to find valid cause and effect relationships with clarity on necessary conditions and assumptions. This clarity becomes the cornerstone to making effective decisions whether it for business or personal reasons. For more information about TOC see this article Theory of Constraints or a useful resource is Thinking for a Change: Putting the TOC Thinking Processes to Use by Lisa J. Scheinkopf. ISBN: 1-57444-101-9.

The copyright of the article Think Better Using Critical Thinking Processes in Business Management is owned by Roger Lever. Permission to republish Think Better Using Critical Thinking Processes in print or online must be granted by the author in writing.
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