Well its all to do with air density and hence thrust produced from the engines. The EECs measure a lot of data to allow the engines to work as efficiently as possible, so there is a lot of data on engines parameters and thrust produced in different conditions.
The assumed temp method is basically just using that data for how much thrust is produced in different temperature conditions. As pilots we have RTOW tables which provide us with information for specific runways and how much weight we can lift with different winds and temperatures. The first thing we do is decide which engine rating we will use, this is dependant on runway length, conditions (wet etc) wind etc. The 3 settings we have for the 737-800 are 26k, 24k and 22k. The NG is very overpowered so we nearly always use 22k. We have our TOW and we use the tables to see what is the maximum temperature in which we could lift our specific take off weight.
An example: Say temp is 10deg and runway is 2800m with no wind. In these conditions say we can lift 75tons. However we only weight 65tons, so we can reduce the thrust by pretending that its hotter then it is. So we go up the table to find the temperature where we find the MTOW being 65 tons, say this is 40deg.
Does that answer the question? Not sure it does....let me know and try and word your question a little different and I'll see what I can do haha.