Team Members P.Saravanan (16) SS10-12/ISBE/Fin Rominic Alexander SS10-12/IIPM/Fin
Team Members P.Saravanan (16) SS10-12/ISBE/Fin Rominic Alexander SS10-12/IIPM/Fin
Team Members P.Saravanan (16) SS10-12/ISBE/Fin Rominic Alexander SS10-12/IIPM/Fin
DESIGN PROCESS
Organizational design is about corporate culture, organizational structure, and leadership behavior. Through the design process, organizations act to improve the probability that the collective efforts of members will be successful
the Organizational Design principles that lead to the foundation required for successful process improvement programs. Tools like Six Sigma, Lean Thinking and Theory of Constraints. Desire for Change
DESIGN PROCESS
Organization Design is a formal, guided process for integrating the people, information and technology of an organization. Through the design process, organizations act to improve the probability that the collective efforts of members will be successful
Change?
How well does your organization accept new ideas for development and implementation? How much risk can your organization handle?
. A new idea is introduced and then grows rapidly through to maturity and eventually enters decline. Organizations dedicated to process improvement (i.e. Toyota, GE) have very short Idea Adoption Cycles and are able to improve quickly.
What drives the Idea Adoption Cycle? There are two primary motivators, aspiration and desperation. Every organization uses one or the other to drive new ideas. Which one does your organization choose? Unfortunately for most of us, it is usually desperation over aspiration.
The Business Itself-What are your customer s needs and wants? What is the competition doing? What are the industry trends? What are marketplace changes? What are your organization s overall strengths and weaknesses? Company Values-What does your company stand for? What are your values? What is your vision? What organizational culture do you want to cultivate? How congruent are you with your stated values and your informal cultural norms and behaviors?
Designing and developing a new design with predictable functional performance Implementing major changes to an existing design when variation associated with continuous improvement efforts have reached a point of diminishing returns and an innovative redesign effort is required Indicated by system-wide changes Reducing common cause variation Achieving quantum breakthrough design improvements
Characteristic
Complexity
Hierarchical structure
Organic structure
High with lots of horizontal separation Usually lower less differentiation or into functions, departments and functional separation divisions
Formality
Participation
Low employees lower down the Higher participation lower level organization have little involvement with employees have more influence on decision making decision makers
Communication
Lateral, upward, and downward communication information flows through the organization with fewer barriers
Case Study
Maruti Swift Changing its design after reaching the maturity stage Adopting new technology to meet the competition
Case study 2
Case study on manufacturing match box: Changing the design of the sticks randomly Changing the size of matches Improving the working process
Improvement Process
Business Process Improvement (BPI) is a systematic approach to help an organization optimize its underlying processes to achieve more efficient results Based on 2 methodologies Process Redesign Business Process Reengineering BPI has been responsible for reducing cost and cycle time by as much as 90% while improving quality by over 60%.
Process Redesign
The Process Redesign methodology is applied to the current process to remove all of its waste and to streamline its activities. It first streamlines the processes, and then uses IT techniques to perform the routine and repetitive activities. It is effective at reducing cost and cycle time between 20-60% and improving quality from 40-200%.
The Natural Work Teams or Department Improvement Teams now take over.
Benefits
It documents and quantifies the current process. It prepares a simulation model of the current and future state processes. It reduces cost and cycle time between 30-60%. It improves quality between 40-200%. It reduces risk by 50-100%. It increases customer satisfaction. It reduces internal conflict.
Business Process Reengineering seeks radical rather than merely continuous improvement. Escalates the efforts of JIT and TQM to make process orientation a strategic tool and a core competence of the organization. Concentrates on core business processes, and uses the specific techniques within the JIT and TQM toolboxes as enablers, while broadening the process vision
Use of IT
A major contributing factor. IT plays a role as enabler of new organizational forms, and patterns of collaboration within and between organizations.
IBM
BPI was developed within IBM requiring the rest of IBM operations to upgrade their processes so that they were at least as good as the production processes. The production processes were required to be at a Cpk of 1.4. To measure and meet these performance goals required major improvements in IBMs business processes. To accomplish this, IBMs Business Process Improvement methodology was developed.
Focus of BPI
Focuses on "doing things right" than "doing the right thing Attempts to reduce variation and/or waste in processes, so that the desired outcome can be achieved with better utilization of resources. Works by: Defining the organization's strategic goals and purposes (Who are we, what do we do, and why do we do it?) Determining the organization's customers (or stakeholders) (Who do we serve?) Aligning the business processes to realize the organization's goals (How do we do it better?)
Implementing BPI
Most resistance to BPI comes from within an organization. Managers often do not wish to change existing structures. The labor force may resist BPI because of fears of layoffs Some organizations have implemented BPI on a smaller scale and reported success, by doing the following: Start with a small process that can be completed in a short time frame. Set clear timelines. Do not spread resources thinly and focus on the short term payoff. Management and primary stakeholders must be involved, or else even a limited implementation will fail.
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