Design For Quality An SME's Perspective

Dr. Abdul Raouf SI

Adjunct Professor, Systems Engineering King Fahd University of Petroleum & Minerals and Institute Professor and Advisor Institute of Management and Technology

CHALLENGES FACED BY SMES

The main influences on the business environment are

The globalization of market Advances in telecommunication technology The growing interdependences amongst business

PROCESS DESIGN
A means to translate vision and strategy into action. A way to help people work smarter, not harder. A way to produce and capture benefits of information technology (I/T) A way to leverage I/T investment

FIGURE - 1

2. The Premise of Design

2.1.1. The whole system approach 2.1.2. The design of the organization must be based on principles 2.1.3. Quality Results from Commitment and Teamwork 2.1.4. Work flows Horizontally, as a Whole Process

2.1.5. All Work Must Be Value-Adding

2.1.6. Design for ideal
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OLD AND CONTEMPORARY DESIGN APPROACH Relatively Old

Systems analysis and
flow charting Industrial Engineering approaches to process performance measurement and modeling

Relatively New
Vision and do-wells to
drive stretch objectives User driven teams Cross-functional process view

Holistic design, including

o o o

People skills and training Organization Performance criteria Managing organizational change

Focused on a target business process

FIGURE-2
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Business Process Design

Perform functions for the
customer, not for the organization Reduce cycle time by eliminating bottlenecks Move work in a continuous flow as opposed to batching Organize work in parallel rather than a serial assembly line Focus on entire process rather than a serial assembly line Eliminate redundant steps Work Flow Design Information Technology

Increase speed of work flow by

using technology Support decision making by providing timely information Enable new geographic arrangements or work tasks Provide decentralized authority with centralized management control Expand potential information flow to/from customers and suppliers

Organization/ People

Structure and reward staff based on business performance objectives Train employees to perform several types of functions Provide incentives for employees to expand their skill base Empower individuals with specific responsibility, hold them accountable and measure performance in relation to the process

FIGURE-3
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3. What is Quality?

Quality is more than meeting customer requirements Quality is anticipating, conforming to, and exceeding customer requirements Quality is continuous Improvement In Product and Process Quality is Speed Quality is cost Competitiveness A Quality Organization id Wealth Creating

It is generally difficult to know where to begin a change effort when there are no obvious targets
Selecting Starting Point Present
Surface Opportunities
Process 1

A Top-down Approach
Increase productivity Improve quality of service to customers Provide full product line Improve quality of life Surface Opportunities

Overall Business Objectives

Process 2 Operational Objectives Process 3

Process 4

Analyze Synthesize Compare

A

Reduce Costs

Improve Sales Support

Process All Products Efficiently

CRITICAL PROCESSES
B C D E F

Analyze Synthesize Compare

Having an end-result in mind, or the answer first, will drive where and to what degree change should be made FIGURE - 4 8

Assessing performance and identifying potential improvement involves answering six fundamental question
6 Where are the biggest opportunities for improvement? Areas of improvement Types of benefits Relative sizes 1 What does the current process look like? Flows People Technology Context vis--vis customer 2 How well are we doing currently?? Strengths Weaknesses Performance measures Resistance to change

5 What are the likely impacts of the changes? Scope Human impact Resource requirements

3 How well do we want to do in the future? Alignment with business objectives Performance targets

4 What drives improved performance and how should we change? Process I/T People organization

FIGURE - 5
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4. Improving quality

Total Quality = Continuous Improvement Of the Total System: Technical + Social

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5. Culture

Culture is the sum of habits

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Initiating the Change To Improve Quality means integrating a wide variety of processes throughout the organization
Business Processes and Applications Supporting and Mgmt. Processes Technology Infrastructure

Quick Hits

I/T Infrastructur e

I/T Organizatio n

Data and Applications Architecture

Application System Plan

Physical Facilities and Equipment

Human Resources, Skills and Culture Change Managemen t Program Skills and Compensatio n

Organization and Management Practices

Organizatio n Structure

Performanc e Managemen t

Staffing and Capacity Plan

Training

Roles and Responsibilitie

s

FIGURE-6

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The Twelve Paradigm Shifts To world Class Quality

Control management Task Focused
Command Decisions Individual Work Experts & Labors

Commitment Management Process and Customer Focused

Consensus Decisions Team Work Experts All

Control Through Punishment Threat and Fear

One Right Way Record Keeping Tall and Rigid Structure Unstated Values and Vision Tough On People Wealth Exploiting

Control Through Positive Reinforcement

Continuous Improvement Score Keeping Flat and Flexible Structure Shared Values and Vision Tough on competition Wealth Creating FIGURE-7
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Framework for process design concentrates on delivering actionable plans with strategic impact
Clarify Business Goals

What kind of company will you be in 3-5 years?

Focus the Effort Where can we make the most improvement? What are the driving forces for and against change?

Redesign the Key Process What will the new process look like and how will we build it? How do we build involvement and commitment to change?

Initiate the Change What specific initiatives will be launched when and how? How do we overcome the risks associated with implementing the change? 14

FIGURE-8

1) Strategy and Leadership

(2) Survey the Environment (3) Design Team Selection and Training (4) Technical Mapping (5) Social System Design (6) Whole System Design (7) Implementation Planning (8) Implementation

The quality organization requires leadership. The leaders must connect business and organizational strategy, define principles, and lead through their own actions
The environment, internal and external, should be surveyed to provide benchmark and best-practice information. The Steering Committee selects a Design Team of the employees who are expert in the work process to be designed and are then trained in the skills of sociotechnical design. The Design Team maps the current state of work process, analyzes the process for variances, cycle time and conformance to principles, and then maps an ideal process. The design team analyzes all of the social systems structure, systems, skills, style and symbols and develops the ideal design that will optimize the new work process. The Design Team considers the technical process and social systems together, from the first level to the whole organization. Then an optimum social and technical system is developed. The Steering Committee and Design Team combine to work on an implementation plan which includes cost/benefit analyses, priorities, time lines, and training plans. The new organization design is implemented in a coordinated and planned manner that involves all employees in a team-based, customer-focused organization.

FIGURE-9

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Management Committee

WORK ENVIRONMENT CHANGE WORKER MOTIVATION

CUSTOMER SATISFACTION Better Quality Proposal Minimize Bottlenecks CUSTOMER LOYALTY TIMELY SHIPMENT

CULTURAL CHANGE

REDUCED IN-PROCESS INVENTORY LESS WORK

INCREASED MARKET SHARE

Team Work & Participation QUALITY

QUALITY SYSTEM

LESS MATERIAL WASTE

MARKET SHARE SUSTAINED

CONTINUOUS IMPROVEMENT PROFITS PRODUCTIVITY

REDUCED INSPECTION COSTS

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The world keeps changing. It is one of the paradoxes that the things and ways which got you where you are, and seldom the things to keep you there.

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