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Goldratt's Thinking Process Applied to the Budget Constraints of a Texax MHMR Facility

Author: LLOYD J. TAYLOR, III and LANA CHURCHWELL
Published in JHHSA, Vol. 26 No. 4

Managers for years have known that the best way to run a business is to
constantly be looking for ways to improve the way to do business. The
barrier has been the ability to identify and solve the right problems.
Eliyahu Goldratt (1992c), in his book The Goal, uses a love story
format to illustrate his "Theory of Constraints." In Goldratt's (1994)
next book, It's Not Luck, he further illustrates this powerful technique
called "The Thinking Process" which is based on the Socratic method,
using the "if ... then" reasoning process, The first step is to identify
UDEs or undesirable effects within the organization and then use these
UDEs to create a Current Reality Tree (CRT) which helps to identify
the core problem. Next, use an Evaporating Cloud to come up with
ideas and a way to break the constraint. Finally, use the injections in the
Evaporating Cloud to create a Future Reality Tree, further validating
the idea and making sure it does not create any negative effects. In this
article, the "Thinking Process" will be used to identify and solve prob-
lems related to the General Medical Department of an MHMR State
Hospital.

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