Jim took a look at my last diagram (that started with UDEs 21, 22 and 23) and made some tweaks.
Jim was using, what TOC calls, the Categories of Legitimate Reservation (CLR). The CLR are a set of rules or tests that you can apply against a tree to check that it is logically sound. Kelvyn Youngman (a fellow Kiwi, you know) has a nice summary of the CLRs here: http://www.dbrmfg.co.nz/Thinking%20Process%20Categories%20of%20Legitimate%20Reservation.htm.
Here's his new improved version of the tree:

Starting from 23 at the bottom and working up, I've compared Jim's version of the tree with mine:
- Jim's numbered the entities to aid further discussion.
- 23, 220, 200, 260, 240, 180 are all the same
- Jim has removed 21 "Many quality problems are not revealed until the integration phase". I suspect he thinks this is redundant since it's so similar to 23. I think I've missed something here ... I need to make it clear that when I say "integration", I'm actually meaning "integration" and "integration testing".
- 180 is the same.
- 22, 50, 10, 280 are the same
- Jim's elegantly reworded 260
- 320, 340 and 360 are the same (although my wording of 320 is ambiguous because it's the tasks that are marked complete, not the developers)
- Jim's has linked in 340 (Software components cannot be fully tested until the testing phase...) as a cause of 380 ("IT reports that the project is progressing to schedule") and added "when in fact it may not be", which is a subtle differences but much closer to what I was wanting to say.
- 400, 420, 440 and 130 remain the same.
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