Evaporating cloud
Encyclopedia
The Evaporating Cloud is one of the six Thinking Processes
in the Theory of Constraints
initially developed by Eliyahu M. Goldratt
to enable the focused improvement
of any system
(especially business
system). The Evaporating Cloud is also referred to in the literature as The Conflict Resolution Diagram.
The Evaporating Cloud is suited to finding a solution to conflict
between two parties or two points of view. The method requires the participants to find 'win-win' solutions because it emphasizes that both parties are trying to reach the same ultimate goal.
This understanding of conflict can be diagrammed as follows:
B <—— D B <—— Some D
/ ↑ / ↑
A conflict OR A conflict (not enough D)
\ ↓ \ ↓
C <—— Not D C <—— Some more D
Where A is the Objective, B and C are Requirements, and the D nodes are Prerequisites that are in conflict. The lines or arrows connecting the nodes represent the rationale or causal assumptions that are used to link the nodes.
When writing the cloud, the arrows should be read as “in order to” or “because” or “so that”. For example: “In order to achieve A we require B because there is no way we can have A without B.” Or: “There is no way we can have D and Not have D at the same time.”
Steps in problem solving:
Goldratt has illustrated the use of the evaporating cloud technique in a discussion of the Economic production quantity
model, as applied to a production line.
The prerequisites are to run large batches (node D) and yet to run small batches (node Not-D). These are clearly in conflict. The requirement that D is trying to meet is to reduce setup cost (node B), whereas the Not-D prerequisite is intended to reduce carrying cost per unit (node C). Both requirements are aimed at the objective (node A): to reduce cost per unit.
The assumed causal reasoning between the conflicting D nodes is something like “there is no way we can run large batches and small batches at the same time.” This conflict can be challenged by distinguishing between production batch size (between setups) and transfer batch size (between workstations), and so allowing different sized batches for different purposes.
, which is one of the Thinking Processes
introduced in Eliyahu M. Goldratt
's novel It's Not Luck.
Thinking processes (Theory of Constraints)
This page is about thinking processes in the Theory of constraints. Wikipedia also has a list of thought processes.Thinking processes in Eliyahu M...
in the Theory of Constraints
Theory of Constraints
The theory of constraints adopts the common idiom "A chain is no stronger than its weakest link" as a new management paradigm. This means that processes, organizations, etc., are vulnerable because the weakest person or part can always damage or break them or at least adversely affect the...
initially developed by Eliyahu M. Goldratt
Eliyahu M. Goldratt
Eliyahu Moshe Goldratt was an Israeli physicist who became a business management guru. He was the originator of the Optimized Production Technology, the Theory of Constraints , the Thinking Processes, Drum-Buffer-Rope, Critical Chain Project Management and other TOC derived tools.He authored...
to enable the focused improvement
Focused improvement
Focused improvement in Theory of Constraints is the ensemble of activities aimed at elevating the performance of any system, especially a business system, with respect to its goal by eliminating its constraints one by one and by not working on non-constraints.The method to achieve focused...
of any system
System
System is a set of interacting or interdependent components forming an integrated whole....
(especially business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
system). The Evaporating Cloud is also referred to in the literature as The Conflict Resolution Diagram.
The Evaporating Cloud is suited to finding a solution to conflict
Group conflict
Group conflict, or hostilities between different groups, is a pervasive feature common to all levels of social organization .. Although group conflict is one of the most complex phenomena studied by social scientists, the history of the human race evidences a series of group-level conflicts that...
between two parties or two points of view. The method requires the participants to find 'win-win' solutions because it emphasizes that both parties are trying to reach the same ultimate goal.
This understanding of conflict can be diagrammed as follows:
B <—— D B <—— Some D
/ ↑ / ↑
A conflict OR A conflict (not enough D)
\ ↓ \ ↓
C <—— Not D C <—— Some more D
Where A is the Objective, B and C are Requirements, and the D nodes are Prerequisites that are in conflict. The lines or arrows connecting the nodes represent the rationale or causal assumptions that are used to link the nodes.
When writing the cloud, the arrows should be read as “in order to” or “because” or “so that”. For example: “In order to achieve A we require B because there is no way we can have A without B.” Or: “There is no way we can have D and Not have D at the same time.”
Steps in problem solving:
- Decide that you really must solve the problem.
- Draw the cloud and define clearly the conflict, the common goal, and the intermediate assertions.
- What does each party want? This will be boxes D and NOT D. Clearly identify why they can’t both be met.
- Identify the underlying requirements--the reason why each party needs what they want. These are boxes B and C.
- What is the common goal that ties B and C together? This can be difficult to determine, but unless there is a common goal there would be no conflict! Maybe it’s as simple as “we both keep our jobs”; but there has to be something.
- Obtain agreement that the definition is correct.
- Look “under the arrows” and review the causal assumptions.
- Challenge each of the causal assumptions.
Example
Economic production quantity
Economic Production Quantity model determines the quantity a company or retailer should order to minimize the total inventory costs by balancing the inventory holding cost and average fixed ordering cost. The EPQ model was developed by E.W. Taft in 1918.This method is an extension of the Economic...
model, as applied to a production line.
The prerequisites are to run large batches (node D) and yet to run small batches (node Not-D). These are clearly in conflict. The requirement that D is trying to meet is to reduce setup cost (node B), whereas the Not-D prerequisite is intended to reduce carrying cost per unit (node C). Both requirements are aimed at the objective (node A): to reduce cost per unit.
The assumed causal reasoning between the conflicting D nodes is something like “there is no way we can run large batches and small batches at the same time.” This conflict can be challenged by distinguishing between production batch size (between setups) and transfer batch size (between workstations), and so allowing different sized batches for different purposes.
Core Conflict Cloud
The Core Conflict Cloud is an Evaporating Cloud that emerges from analysis of a Current Reality TreeCurrent reality tree
Current reality tree refers to the repair activity for ships. An initial inquiry check for availability of dock space and repair berth, vessel draft restriction, repair scope compared with yard work load estimating and forward any queries....
, which is one of the Thinking Processes
Thinking processes (Theory of Constraints)
This page is about thinking processes in the Theory of constraints. Wikipedia also has a list of thought processes.Thinking processes in Eliyahu M...
introduced in Eliyahu M. Goldratt
Eliyahu M. Goldratt
Eliyahu Moshe Goldratt was an Israeli physicist who became a business management guru. He was the originator of the Optimized Production Technology, the Theory of Constraints , the Thinking Processes, Drum-Buffer-Rope, Critical Chain Project Management and other TOC derived tools.He authored...
's novel It's Not Luck.