5 Designing Organisation for Q

8/14/2019 5 Designing Organisation for Q

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INTRODUCTION:

Many organisations implementing total

quality have found it necessary to

reconfigure the structures of their

organisations.


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This chapter will:

- Describe the functional structure, the most commonstructure used at the plant or business unit level,

- Show how many aspects of the functional structure

stand in the way of quality and what changes are

necessary to create organisation structures that supportTQ.

-Provide several examples of how firms are making

substantial changes in their organisations in order toimplement TQ, and

- compare organisational design from a TQ point of view

to more conventional perspectives.


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functional structure groups people together into functional departments such as purchasing, accounts,

production, sales, marketing. These departments would normally have functional heads who may be called

managers or directors depending on whether the function is represented at board level.

Functional Structure


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REDESIGNING ORGANISATIONS FOR QUALITYPoor organisation design can be devastating to a company

(read note on wired for failures page 195).

One of Deming 14 points is tobreak down barriers

between departments because people in various depts

must work as a team.

People cannot contribute to customer satisfaction and

continuous improvement if they are confined to functional

prisons where they cannot see customers or hear their

voices.


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Some of the more effective way to break

down these barriers are :

-To focus on processes,

- recognise internal customers,

- create a team-based organisation,

- reduced hierarchy, and

- use steering committee


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Focus on processes

Process is how work creates value for customers.

Common business processes include;

acquiring customer and market knowledge,

fulfilling customer orders,

purchasing ,

developing new product or service,

strategic planning,

production or service delivery,

distribution,R&D,

information management,

performance measurement and

training.


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Individuals or groups, known as process owners ,are

accountable for process performance and have the

authority to manage and improve their process.

Process owners may ranged from high level

executives who manage cross-functional processes

to workers who run machinery on the floor.

By aligning the structure of an organisation with the

actual processes that the organisation performs,

customers may be served more effectively.


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Internal customeris a technical term used in management

sciencepopularized by Joseph M. Juran

He defined an internal and external customers asanyone affected by the product or by the process used

to produce the product, in the context of quality

management. Internal customers may play the role as

supplier, processor, and customer in the sequence ofproduct development.

An internal customer is anyone you count on or rely

upon to complete a task or a function or to provide you

with information so that you can get your jobdoneand anyone who counts on you to com plete a

task o r funct ion o r to prov ide them wi th informat ion so

that they can get their job done. (Rosenberger, 1998)
http://en.wikipedia.org/wiki/Management_sciencehttp://en.wikipedia.org/wiki/Management_sciencehttp://en.wikipedia.org/wiki/Management_sciencehttp://en.wikipedia.org/wiki/Management_science


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For example, a dispatch department may be the

internal customer of a packing department, which in

turn may be the internal customer of the manufacturingprocess.

Another example, machine operators in a

manufacturing plant are customers of maintenance.

R&D

Product design manufacturing sales

marketing purchasing

Internal customers in a manufacturing company


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Definition

Non-traditional, innovativeworkenvironmentrelying

on teamsto achieveits objectives.

TBO's major characteristicsinclude

(1) mutualtrust,

(2) employeeempowermentin planning, organization,

and goal-setting,

(3) shared responsibilityfor self-management,(4) shared accountabilityfor performance, and

(5) shared leadership.

Team based organisation TBO
http://www.businessdictionary.com/definition/innovative.htmlhttp://www.businessdictionary.com/definition/work.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/team.htmlhttp://www.businessdictionary.com/definition/achieve.htmlhttp://www.businessdictionary.com/definition/objective.htmlhttp://www.businessdictionary.com/definition/characteristic.htmlhttp://www.businessdictionary.com/definition/mutual.htmlhttp://www.businessdictionary.com/definition/trust.htmlhttp://www.businessdictionary.com/definition/employee.htmlhttp://www.businessdictionary.com/definition/empowerment.htmlhttp://www.businessdictionary.com/definition/planning.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/goal-setting.htmlhttp://www.businessdictionary.com/definition/responsibility.htmlhttp://www.businessdictionary.com/definition/accountability.htmlhttp://www.businessdictionary.com/definition/performance.htmlhttp://www.businessdictionary.com/definition/leadership.htmlhttp://www.businessdictionary.com/definition/leadership.htmlhttp://www.businessdictionary.com/definition/performance.htmlhttp://www.businessdictionary.com/definition/accountability.htmlhttp://www.businessdictionary.com/definition/responsibility.htmlhttp://www.businessdictionary.com/definition/goal-setting.htmlhttp://www.businessdictionary.com/definition/goal-setting.htmlhttp://www.businessdictionary.com/definition/goal-setting.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/planning.htmlhttp://www.businessdictionary.com/definition/empowerment.htmlhttp://www.businessdictionary.com/definition/employee.htmlhttp://www.businessdictionary.com/definition/trust.htmlhttp://www.businessdictionary.com/definition/mutual.htmlhttp://www.businessdictionary.com/definition/characteristic.htmlhttp://www.businessdictionary.com/definition/objective.htmlhttp://www.businessdictionary.com/definition/achieve.htmlhttp://www.businessdictionary.com/definition/team.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/work.htmlhttp://www.businessdictionary.com/definition/innovative.html


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If a team is responsible for an entire process, they dont have to worry that their

improvement efforts will be undermined


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SAFETY

TEAM

TEAM REPS

COUNCIL

SAFETY

REPS

INNOVATION

TEAM

QUALITYREPS

CORE

PROCESSTEAM

EXAMPLE: ORGANISATIONAL STRUCTURE OF THE CLEAR LAKE PLANT


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Example 1


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Example 2 : Maslow's hierarchy of needs


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The Steering Committee is a group of individuals responsible for

general operating policy, procedures, and related matters

affecting the company as a whole.

Steering Committee


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KAIZEN

KAIZEN means improvement. Moreover, KAIZEN meanscontinuing improvement in personal life, home life, social

life, and working life. When applied to the workplace

KAIZEN means continuing improvement involving everyone

- managers and workers alike.

It comes from the Japanese words "Kai" meaning school, and

"Zen" meaning wisdom.


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Two Elements of KAIZEN- Improvement/change- Ongoing/continuity

Lacking one of those elements would not be considered KAIZEN. For

instance, the expression of "business as usual" contains the element ofcontinuity without improvement. On the other hand, the expression of

"breakthrough" contains the element of change or improvement without

continuity. KAIZEN should contain both elements


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Maintenance Innovation and KAIZENIn our concepts, three functions should happensimultaneously within any organizations: Maintenance,

Innovation, and KAIZEN.

By maintenance, we refer to maintaining the current status,the procedures are set and the standards are implemented.People in the lower level of organization mostly do that, theymaintain their standards.


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By Innovation, we refer to breakthrough activities initiatedby top management, buying new machines, newequipment, developing new markets, directing R&D,

change of strategy etc.


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In the middle there is K IZ N, small steps but continuingimprovement.

KAIZEN should be implemented by the lower/middlemanagement and the workers, with the encouragementand direction of the top.

The top management responsibility is to develop KAIZENworking cultures in the organization.


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Structural Contingency theoryis a class of behavioral theory that claims that there is no best

way to organize a corporation, to lead a company, or to make

decisions. Instead, the optimal course of action is contingent

(dependent) upon the internal and external situation.

Organisations need to adopt the structure that fits their

situational factors, or contingencies such as strategy and size,

because this leads to higher organisational performance.


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Institutional theoryis "A widely accepted theoretical posture that emphasizes rational

myths, isomorphism, and legitimacy.

Institutional theory focuses on the deeper and more resilientaspects of social structure. It considers the processes by which

structures, including schemes, rules, norms, and routines, become

established as authoritative guidelines for social behavior.


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5 Designing Organisation for Q