Jelena Fedurko - TOCICO 2014 - Webinar Series - Part 2 - 30 Jan 2014

Webinar Series: Understanding Systems
and Conflicts through Clouds

Part 2: 10 criteria to qualify a statement as
an UDE; typical mistakes of constructing
UDE Clouds
Jelena Fedurko
The author of: Behind the Cloud: Enhancing Logical Thinking
and
Through Clouds to Solutions: Working with UDEs and UDE
Clouds
jelenafedurko.gs@gmail.com
January 2014
Copyright 2014 by Jelena Fedurko
Webinar Series_2014_Part1
Webinar Series: Understanding Systems and

Conflicts through Clouds
Part 1: Reasons and triggers for different Cloud
types; sequence of constructing; typical mistakes
23 Jan 2014
Part 2: 10 criteria to qualify a statement as an UDE;
typical mistakes of constructing UDE Clouds
30 Jan 2014
Part 3: Challenges of cloud consolidation process;
working with assumptions
6 Feb 2014
Brief recap on Webinar Part 1:

Reasons and triggers for
different Cloud types;
sequence of constructing;
typical mistakes
Triggers for different Cloud types

We use Clouds when we identify that we have a problem
this happens every time when we find ourselves in a certain
situation while we would like to be in a different situation
On one hand I want that, on the
other hand I want to / feel forced
to / should do that
I want that, THEY want that
Internal Dilemma/Conflict Cloud
Day-to-Day Conflict Cloud

Organizational Interest Conflict Cloud
The current performance

measurements are perceived low UDE Cloud
(numeric value) because we
Consolidated UDE Cloud
want/are forced to meet higher
level of measurement
I had to interrupt what I was doing
Fire-Fighting Cloud
to put out a fire
Different Cloud types have different

sequence of building
Inner Dilemma/Conflict Cloud
4
5
Day-to-Day Conflict Cloud &

Organizational Interest Conflict Cloud
UDE Cloud
3
2
B
Fire-fighting Cloud
B
A
RECAP
Inner Dilemma/Conflict Day-to-Day Conflict Cloud
& Organizational Interest
Cloud
Conflict Cloud
4
5
The conflict is evident and easy to

record.
This conflict is also evident and easy

to record.
The FORCED action is very clear and

we do not like it, but consider it.
We are NOT in a dilemma. We want

to fight for our position against
THEIR position.
We are in a DILEMMA.
The main focus is on the CONFLICT.
The most challenging is to determine

THE COMMON OBJECTIVE.
These conflicts are relatively easy to record. They are on the surface,
and thinking about the situation is triggered by evident contradictions.
Clouds that are not that simple

to construct
Fire-fighting Cloud
1
5
UDE Cloud
1
D
Fire-fighting Cloud
1
3
B
5
A
What need of the

system is jeopardized
by the fire?
D
The Lieutenant
breaks the rule
(check that it will put
out the fire).
What need of the

system is protected
by this rule?
What rule prevents

the Lieutenant from
putting out the fire?
What is the lowest

objective of the two
needs?
Source: Goldratt Satellite Program, Session 7, Managing People, 1999

Fire-fighting Cloud
What need of the
by the fire?
The Lieutenant
breaks the rule
(check that it will put
out the fire).
3
B
D
Allow the shipping
person to call the
customer
Ensure on time
shipment to the
customer
Have a high level of

customer service
Maintain good
customer
relationships
Only Customer
Account Manager
makes all calls to the
customer
What is the lowest

needs?
2
What rule prevents
the Lieutenant from
putting out the fire?
What need of the

system is protected
by this rule?
Fire-fighting Cloud
The sequence presented in
the Goldratt Satellite Program
1
The sequence that is

easier for me to use
3
B
1
D
4
B
5
A
A
C
10
Fire-fighting Cloud (sequence 2)

INSTEAD OF ORIGINAL
GUIDELNES FOR D:
The Lieutenant breaks the rule
(check that it will put out the fire).
D
Allow subordinates
to disregard the rule
that prevents putting
out the fire
What need of the

by the fire?
5
A
What is the lowest
needs?
D
Demand that
subordinates strictly
follow the rule that
prevents putting out
the fire
C
What need of the
system is protected
by this rule?
INSTEAD OF ORIGINAL
GUIDELNES FOR D:
What rule prevents the Lieutenant
from putting out the fire?
11
Fire-fighting Cloud (sequence 2)

Allow subordinates
to disregard the rule
that prevents putting
out the fire
What need of the

by the fire?
4
B
Ensure on time
shipment to the
customer
Allow the shipping

person to call the
customer
Have a high level of

customer service
What is the lowest

needs?
Demand that only

Customer Account
Manager makes all
calls to the customer
2 Demand that
subordinates strictly
follow the rule that
prevents putting out
the fire
Maintain good
customer
relationships
3
What need of the
system is protected
by this rule?
12
UDE Cloud
UDE
ENDANGERS
Why is this UDE

undesirable what
important need of the
system does it
jeopardize/endanger?
What is the
common objective
achieved with both
B and C?
What other
important need
prevents you from
always taking the
action in D?
What action do you

take to meet the
jeopardized need in B?
3
What action do you

take to meet this other
need in C?
4
13
Fire-fighting Cloud
1
5
RECAP
UDE Cloud
UDE
A
D
This analysis comes from the realization

that the fire in the system did not happen on
its own, but was caused by some element in
the system
either because of existence OR lack of a
certain procedure, or by violating an
existing procedure and lack of mechanism
to prevent such violation.
The main focus is on the endangered need
and what has caused the fire.
The fire-fighting Cloud is triggered by a

fire that has recently happened in the
system.
The UDE Cloud is used for system analysis.

The conflict two conflicting modes of
behaviour of the system is not evident and
not easy to verbalize.
The analysis is triggered by realization of
the GAP between the current level of system
performance and the desired/required one.
The GAP is verbalized as UnDesirable
Effects (UDEs).
The major effort goes on verbalizing what
important need of the system is endangered
by the identified UDE.
To record these conflicts requires deep and concentrated thinking.

The main focus is on the endangered needs of the system.
14
Working with UDE Clouds
15
What triggers an UDE Cloud?

The GAP the difference between the desired and
actual levels of performance of the system.
GAP
The existence of the Gap means that there are some persistent problems
in our system that prevent us from closing the gap and reaching the level
of performance that is desired or expected. These reoccurring problems
are called UnDesirable Effects UDEs.
16
Process of identifying UDEs

and building UDE Clouds
1 List of UDEs
UDE1: xxxxxxxxx
UDE2: xxxxxxxxx
UDE3: xxxxxxxxx
UDE4: xxxxxxxxx
UDE5: xxxxxxxxx
UDE X
UDE Z
UDE Y
B
4
A
2 UDE Map
UDE
UDE UDE
UDE
UDE
UDE
UDE
UDE
A
B
Copyright
2014 Fedurko,
by Jelena
Fedurko
Jelena
Through
Clouds to Solutions,
17
10 Rules
forwording
Wording UDEs
10 Rules
for
UDEs
1. It is a simple statement and it cannot contain Cause & Effect
relationship.
2. UDE is a an ongoing problem that exists in your reality because
of which you cannot perform better.
3.
It is a description of the state not a one-time action (its

wording cannot have verbs like get, go etc).
4.
It is within your area of responsibility.
5.
Something can be done about it.
6.
It must not be blame.
7.
It must not be a speculated cause.
8.
It must not be a hidden solution (wishful thinking of solving the

problem).
9. It does not require a clarification of its negative impact/effect.

10. It must not be subjective it should not contain such adjectives
as difficult, hard, poor, etc.
18
Can we qualify
these
statements
as UDEs?
10 Rules
for Wording
UDEs
Statement 1: Although this would be sensible it is not possible
to switch jobs from one machine to another due to technical

reasons.
(1) The sentence contains causeeffect relationship due to (violates Rule 1).
Rule 1 clearly states that it should be a simple sentence with only one pair
consisting of a subject and its corresponding verb. In this sentence we have three
parts and three subject-verb pairs.
(2) It is not clear what is the negative impact of not being able to switch jobs
between the machines (violates Rule 9).
(3) It leaves an impression that not possible to switch jobs from one machine to
another is a speculated cause (violates Rule 7). However, without knowing the
environment it is difficult to suggest what the closest effect is.
Most likely it is an issue of capacity:
a) a switch over to another machine may be needed to prevent an interruption to
the flow when the regular machine is down/ maintained; or
b) the regular machine is a capacity constraint and is needed to produce more
lucrative orders that cannot be produced on other machines.
If the issue is capacity, a possible generic UDE wording could be: Machines
are not available when needed.
Statement 1 does NOT qualify as an UDE.
19
Can we qualify
these
statements
as UDEs?
10 Rules
for Wording
UDEs
Statement 2: When we attempt to meet the DDP (Due Date
Performance), we incur additional cost because we have to
locally purchase SKUs.
Statement 2 does NOT qualify as an UDE.

(1) The sentence contains causeeffect relationship because we have
to (violates Rule 1).
(2) The sentence has three subject-verb pairs (violates Rule 1).
(3) One can make a comment about the not really negative nature of the
issue as it is presented in the current wording (violates Rule 9). However, if
we understand the word additional as decreasing planned throughput
then it is negative.
Keeping this comment in mind and having removed causalities, we can
accept the resulting wording We incur additional costs for locally
purchased SKUs as an UDE.
20
The key processes of working with

UDE Clouds
The key processes of working with UDE Clouds are:
identifying and wording several UDEs
constructing each individual UDE Cloud in such a

way that it will manifest its respective UDE and is
logically sound
consolidating UDE Clouds to identify a more generic

Cloud
revealing assumptions justifying logical connections
challenging assumptions and finding a solution

through designing an Injection/set of Injections.
21
Identify 1 UDE and build your UDE Cloud

UDE:
Why is this UDE
undesirable what
important need of the
system does it
jeopardize/endanger?
What is the
common
objective
achieved with
both B and C?
ENDANGERS
What action do
you take to meet
the jeopardized
need in B?
C
What other
important
need
prevents you
from always
taking the 3
action in D?
4
22
What action do you

take to meet this
other need in C?
The problematic areas in working with

UDE Clouds
There are three problematic areas:
- while building an UDE Cloud
difficulties to determine what is in box B
difficulties in wording C as a systems Need
- while consolidating
difficulties in finding a common aspect among the
consolidated entities.
23
Such UDE Clouds do not really help typical mistakes while

building an UDE Cloud. Example 1.
UDE: In the last year sales to new customers were

very low.
ENDANGERS
Example 1
Increase sales
to new
customers
Attract more
new customers
Why do we say that there is a mistake?

Where is the mistake?
24


very low.
Example 1
Why such
wording of B is
a mistake?
ENDANGERS
Increase sales
to new
customers
Attract more
new customers
This UDE is undesirable because the sales to new customers are low.
We may find it undesirable only if the desirable state is to have more sales to this
specific group new customers. UDE and B are simply a mirror reflection.
Box D adds an aspect of quantities in terms of number of new customers, which
gives more clarity of where the system wants the focus of activities of sales people
to be attracting new customers vs, for example, increasing sales/contract size
with the new customers.
B is not helpful. If B is not corrected, the only hope to get a better understanding of
the situation is if the user manages to properly surface assumptions behind B-D.
25


very low.
ENDANGERS
Example 2
Another B and another D
Meet sales
targets
Sell more to
new customers
Why do we say that there is a mistake?

Where is the mistake?
26


very low.
Example 2
Why such
wording of D is
a mistake?
ENDANGERS
Meet sales
targets
Sell more to
new customers
This UDE is undesirable because the sales to new customers are low.
If we want to correct something undesirable we usually take the
actions to remove it. If sales numbers from a specific group is low and
we want them higher the only action that could be done is to sell more
to this group. UDE and D are simply a mirror reflection.
Box B is good enough, as it shows a specific need to comply with the
measurements and management expectations.
27


very low.
Example 3
ENDANGERS
D
Motivate salespeople
to put more effort
to obtain
new customers
Increase sales
to new
customers
28

UDE: In the last year sales to new customers were very low.
Example 3
Why such
wording of B and
D is a mistake?
ENDANGERS
D
Motivate salespeople
to put more effort
to obtain
new customers
Increase sales
to new
customers
UDE and B are simply a mirror reflection, as discussed earlier.

Box D is the rephrasing of Sell more to new customers. Motivate sales
people to put more effort means push them to take actions to sell
more, for a salesperson to obtain new customers is meaningful only if
the sale can be done.
The three entities UDE, B and D are a complete repetition of each
other.
29
What should be in B?
ENDANGERS
What important
need of the system
could be
endangered by this
UDE?
Meet sales targets

Ensure expected contribution to the
budget
Maintain market share
Be the market leader
Prevent competitors from growing
Increase sales efficiency
Ensure continuous innovation
30
What should be in B? (continued)

The identified needs are
different in nature some are
more generic, some more
specific in relation to new
customers. Every identified
need has its background.
ENDANGERS
Meet sales targets a valid need of a head of the system to comply with the
measurements and management expectations.
Ensure expected contribution to the budget more of a concern about the financial
health of the whole system.
Maintain market share a strategic concern, implies heavy competition.
Be the market leader a vision, securing the future, vanity.

Prevent competitors from growing securing future, strong implication of the
danger from competition.
Increase sales efficiency further in the process of surfacing assumptions behind BD, it will be revealed whether it is cost mentality or ROI mentality with effort being
interpreted as investment.
Ensure continuous innovation the focus is on new customers as agents of
bringing new ideas for the company to be on the leading edge of technology or creativity.
31
Identifying C in an UDE Cloud

ENDANGERS
What we write in D should be NOT

anything, but related to this UDE
B
Meet sales
targets
3. What other
important need
prevents you from
always taking the
action in D?
Do aggressive
advertising
?
32
Typical mistake in wording C in an UDE Cloud

ENDANGERS
Very often in the process of
filling in Box C, the person 1
building the cloud instead of
answering the question
What other important need
prevents you from always
taking the action in D?
What we write in D should be NOT

anything, but related this UDE
B
Meet sales
targets
D
Do aggressive
advertising
answers the question Why

cant we do D all the time?
TO DO THIS IS WRONG!
C
It increases
our expenses
BECAUSE the resulting answer will give the wording
of the NEGATIVE OUTCOME of doing D, but NOT the

POSITIVE NEED OF THE SYSTEM that D endangers.
33
Typical mistake in wording C in an UDE Cloud

ENDANGERS
If you have
made this
mistake
reword the
negative
outcome of D
that you wrote
in C as a
positive need
of the system.
Use the
phrase
We cannot
always do D,
BECAUSE
WE MUST
B
Meet sales
targets
Do aggressive
advertising
It increases
our expenses
OR
Insufficient
response
to advertising
C
Control cost
Spend money
sensibly
34
Typical signals of
putting in C a
perceived negative
outcome of D:
-
no verb in the
wording;
a full sentence
starting with we
will, we may, it
increases, it
will, it may
Jelena
Fedurko
TOC experience as a
Jelena has 14 years of

trainer and consultant providing support in TOC
implementations in the areas of production,
supply chain, project management, sales,
marketing and people management.
Jelena has worked in Japan, Poland, Turkey, Italy,
Russia, Ukraine, India, China, Chile, Colombia,
Mexico and other countries throughout the world.
Jelena is the author of the books Behind the
Cloud Enhancing logical thinking and Through
Clouds to Solutions. The books present new
developments in the area of working with
assumptions and UDE Clouds.
Together with Oded Cohen, Jelena has coauthored the book Theory of Constraints
Fundamentals.
She has authored numerous articles on TOC
concepts and implementation, has written several
chapters in TOC books and has edited a number
of TOC books and publications.
Jelena is International Director of TOC Strategic
Solutions Ltd and Founder and Co-President of
TOCPA.
jelenafedurko.gs@gmail.com
www.toc-strategicsolutions.com
www.tocpractice.com
35

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Webinar Series: Understanding Systems

and Conflicts through Clouds

Webinar Series: Understanding Systems and

Copyright 2014 by Jelena Fedurko

Brief recap on Webinar Part 1:

Triggers for different Cloud types

Internal Dilemma/Conflict Cloud

Day-to-Day Conflict Cloud

The current performance

Different Cloud types have different

Day-to-Day Conflict Cloud &

Copyright 2014 by Jelena Fedurko

The conflict is evident and easy to

This conflict is also evident and easy

The FORCED action is very clear and

We are NOT in a dilemma. We want

The most challenging is to determine

Clouds that are not that simple

Copyright 2014 by Jelena Fedurko

What need of the

What need of the

What rule prevents

What is the lowest

Source: Goldratt Satellite Program, Session 7, Managing People, 1999

Have a high level of

What is the lowest

What need of the

The sequence that is

Copyright 2014 by Jelena Fedurko

Fire-fighting Cloud (sequence 2)

What need of the

Fire-fighting Cloud (sequence 2)

What need of the

Allow the shipping

Have a high level of

What is the lowest

Demand that only

Copyright 2014 by Jelena Fedurko

Why is this UDE

What action do you

What action do you

This analysis comes from the realization

The fire-fighting Cloud is triggered by a

The UDE Cloud is used for system analysis.

To record these conflicts requires deep and concentrated thinking.

Working with UDE Clouds

Copyright 2014 by Jelena Fedurko

What triggers an UDE Cloud?

Process of identifying UDEs

It is a description of the state not a one-time action (its

It is within your area of responsibility.

Something can be done about it.

It must not be blame.

It must not be a speculated cause.

It must not be a hidden solution (wishful thinking of solving the

9. It does not require a clarification of its negative impact/effect.

to switch jobs from one machine to another due to technical

Statement 2 does NOT qualify as an UDE.

Copyright 2014 by Jelena Fedurko

The key processes of working with

identifying and wording several UDEs

constructing each individual UDE Cloud in such a

consolidating UDE Clouds to identify a more generic