Current Reality Tree (CRT)

Current Reality TreeThe Current Reality Tree (CRT) is one of the thinking processes in the Theory of Constraints introduced by Dr. Eliyahu M. Goldratt. It is a way to analyse a system and find the root cause for all of the problems in that system. To view the full-size version of the CRT below, simply click on it.

To get the result below, we start by listing the UDEs (UnDesirable Effects). In this example from the book “It’s Not Luck“, the UDEs are:

  • Production and distribution do not improve fast/significantly enough
  • Engineering is unable to deliver new products fast and reliably enough.
  • Companies don’t come up with sufficient innovative ideas in marketing.
  • In more and more cases the price the market is willing to pay doesn’t leave enough margin.
  • There is unprecedented pressure to take actions that will increase sales
  • Competition is fiercer than ever.
  • In advanced material industries there is a need to launch new products at an unprecedented rate.
  • In advanced material industries the constant introduction of new products confuses and spoils the market.
  • Sales people are overloaded.
  • There is increasing pressure to reduce prices.

From that list of initial UDEs, we go through a process to build the following logical CRT tree to identify the root cause(s) (below in red):

Current Reality Tree

 

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