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

Abstract

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 problems related to the General Medical Department of an MHMR State Hospital.

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