Definitions

A


B


C
Current Reality Tree
The logic tree diagram which shows all the significant cause-effect relationships which comprise a system.


D


E
Evaporating Cloud
The name for the precise statement of a problem. It shows, graphically, the problem is a conflict between two necessary conditions. The term 'evaporating' is used because when the cloud is properly used, the conflict evaporates when one of the assumptions upon which the cloud is based is shown to be false. This tool helps us get at the assumptions we make when we think. It is valuable because assumptions usually remain invisible, and without some kind of process to systematically examine them, usually go unexamined. Unexamined assumptions are the primary cause by which conflicts are perpetuated rather than resolved.



F
Future Reality Tree
The logic diagram which shows all the significant cause-effect relationships which will comprise the system we intend to create.


G
Goldratt, Eliyahu
The founder of the Theory of Constraints. He has authored several book on TOC. They are available through Amazon and North River Press.


H


I
Injection
An idea which is proposed to help us create a Future reality Tree.

Inventory
All the money that the system has invested in purchasing things which it intends to sell.


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M


N
Negative Branch Reservations
The logic tree which is used to show how possible negative effects can occur in a conflict, or in a proposed system. Once the negative effect is verbalized then we add injections which will prevent the negative outcome from occuring. So this thinking skill is used to anticipate and prevent negative outcomes.

Negotiating Cloud
This is actually an Evaporating Cloud that is used in negotiating situations.

O
Operational Expense
All the money the system spends in order to turn inventory into throughput.


P
Prerequisite Tree
This is the logic tree that is used to identify obstacles and plan on how to overcome them. It looks much like a transition tree but the process of contructing it is slightly different, and the purpose of it is different.


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S

System
An interrelated set of components which function as a whole. There are normally inputs, outputs and throughputs associated with a system. Systems have both intended and unintended outcomes. Some outcomes are helpful and some are undesirable.

T
Theory of Constraints
The name of the discipline founded by Eliyahu Goldratt to apply the scientific analysis process to analyzing business systems so they can be resolved without compromise.

Throughput
The rate at which the system generates money through sales.

Transition Tree
This is a logic tree that shows step by step how to move from the current situation or system to a different situation or system. It looks much like a Prerequisite Tree.

U
UDEs
Undesireable Effects - the effects which a system produces which are contrary to the intentions or desires of thsoe operating the system.


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