Org Mngmnt

EFFECTS OF ORGANIZATION MANAGEMENT ON CUSTOMER LOYALTY & EARNING PROFIT

A SYSTEMATIC APPROACH TO OPERATIONS MANAGEMENT

Another presentation by Volpe (Mahzad Pakzad); Copyright © February 26, 2012Please, contact [email protected] for any requests.

Benchmarking

Quality Expectations

Concept DesignDesign & Development

Product Test

Voice of Customer

Wednesday, February 29, 2012

mailto:[email protected]


This presentation is designed to review the importance of effects of organizational management systems on the organization’s ability to assure employee commitment to gaining customer loyalty, while earning maximum profit. To do so, we will briefly review the factors contributing to both development and management of operations.

In order to deliver effective results, we intend to logically review the structure of an organization, and then how the management systems can impact success of stake holders. The stake holders, to the author of this presentation include everyone from the company shareholders, to the operators, and the customers.

The presentation will be divided into three major topics:

• Review Business Goals.

• Review Operations: Product Design, Process Design, Operations Management, Quality Control,….

• Organizational Management: Policies and Procedures Enforcing Empowering Leadership

PRESENTATION SCOPEEFFECTS OF ORGANIZATION MANAGEMENT ON

CUSTOMER LOYALTY & PROFIT EARNING


In order to develop a high performance controllable operation, business goals need to be clear during concept design and R & D stages, as well as the rest of product’s life cycle. All tasks performed need appropriate evaluation, for assurance that their output is aligned with needs for delivering the business goals. It is important to take all necessary precautions to assure that all employees are continuously trained, appropriately. Few helpful hints:

• Proper benchmarking of market, products, and processes are to be continuous efforts.

• Profit earnings must be evaluated considering the “LONG TERM” results.

• Customer loyalty must be made measurable and linked to the elements that drive at it.

• Quality expectations need to be objective, realistic, and specific.

BUSINESS GOALS


Operations Management

Product Design, Process Design, Operations, Quality Control,…..

1-Benchmarking

2-Quality Expectations

3-Concept Design4-Design & Development

5-Product Test

6-Voice of Customer

Most people are in one way or another using a product lifecycle management software/system or other systems to document, organize, and communicate data used to manage their operations. It is very

important to clearly show the connection of used data to quality & customer needs. Unfortunately, many use metrics that are not effective enough, for reasons such as neglecting some of the requirements

needed to produce the expected quality, this is a procedural as well as technical weakness.

A well designed operation produces quality efficientlyWednesday, February 29, 2012

Benchmarking

Quality Expectations

Concept DesignDesign & Development

Product Test

Voice of Customer

OPERATION OF A SYSTEM DEPENDS ON ITS IMPLEMENTATION AS WELL AS THE DESIGN OF THE SYSTEM

When we started PLM, the objective was to use a well thought & organized system for managing operations. We were using PLM to:a) Identify all tasks that needed to be evaluated.b) Organize the required tasks in an orderly manner, step by step, through products’ life cycle, in order to process the evaluated data efficiently, as

necessary from each step to the next step.c) Have a systematic link among the tasks for communication, and collaboration to assure alignment of tasks’ goals and milestones for achieving the

business goals in the most efficient way possible.

However, in many situations, under pressure from the high level management, the technical managers cut corners, skip steps, and push the data/parts through to the next level for processing, before completing the necessary analysis.

Examples are allowing product designers release a final design, before evaluating the manufacturing ability to deliver the expected quality, and/or evaluating the cost of quality. A designer has choices in choosing materials and processes used to build a product, and these choices need to be made based on quality expectations and their effect on cost of product and/or desired customer loyalty.

Allowing modifications to a system, skipping necessary steps used in design process, weakens the system’s abilities and effectiveness. Ten to make it even worse, now days people are being given the freedom to change such systems randomly, in order to Push For Market, or to deliver the goods.

Cont’d


ORGANIZATION MANAGEMENT

ENFORCING AN EMPOWERING SYSTEM

MOTIVATING EFFECTIVE LEADERSHIP

Operations’ efficiency within organizations depends on the people & the systems used. Any short coming in the system deign or management capability will be reflected onto the profit earnings.

Identifying business goals & having well designed systems to achieve them are only the first two steps in developing profitable operations, next step is organizational management systems, such as procedures and policies.

The importance of use of procedures and policies has been academically proven and it used to be the core system for managing operations in many companies. However, globalization of industries and outsourcing, have developed new management systems and have encouraged companies to adopt “Push For Market” as a business strategy, and bypass the values that were the foundations of well managed operations.


Standard operating procedures guide employees with details on how to perform their tasks accurately, and repeatedly. Policies are used to enforce the necessary procedures, and to assure consistency.

Modern management is now lacking detailed evaluation of all tasks, therefor it does not have adequate procedures for related situations in place. As a result people are making technical & business decisions on the spot, as they face unpredicted situations, more often than ever before. This is a very unstable, unreliable, & risky method of running an operation, the worst part is that often, people fail to identify the output of the risks that

they are taking and as a result, we have seen many issues within many organizations, issues include losing customers, even losing businesses, which in turn cause a job insecurity for all.

Other side effects of modern management are excessive politics & manipulation of people.

Let’s review why we changed our management style, and the long term effects that the changes have had on our businesses.

WHY WE CHANGED: Our motivation to change was economy crash, creating a need to cut costs & find QUICK ways to turn in profit. Outsourcing to countries with cheap labor was a solution enabled by the governments & accepted by business managers.

EFFECTS OF MODERN MANAGEMENT ON BUSINESSES: There barely was any time to investigate the consequences or take the necessary precautions to assure a smooth transition from traditional organization management to the modern one, even companies with established policies and procedures jumped at the alternate short cuts (outsourcing) placed in front of them to quickly cut cost. But now, we all can see the resulted profit & customer losses due to poor quality. This is not a time to blame anyone, this is a time to sit back and re-evaluate all facts, the values, and learn from the experiences.

(CONT’D)




MOTIVATING EFFECTIVE LEADERSHIP(Cont’d)

Is going with the flow a leadership characteristic?! No, however, taking actions, making quick decision, in order to survive the economy downturn can be considered as a leadership characteristic.

Decision to accept push for market, and turn into outsourcing, without a thorough plan was made during a time of panic due to “signs” of economy downturn. Conveniently enough, governments had lready prepared the path, implementing new free trade laws.

Results are weakened control over engineering, manufacturing, and quality of products. The truth is that cutting corners has not turned in the profits that companies were expecting, not in the long run at least. On the contrary, companies are losing profits and customers, as well as control over economy that is more and more becoming regulated and controlled by the governments.


Hint: If there were no job cuts in the first place, there would be no need for job insecurity, & everyone would have more encouragement to produce a quality product, efficiently, increasing profits in the long run.

Push for market and Outsourcing have side effects!!!

Both provide limited control over product/process design & development, and do not work out many details that surface during operations. This makes operations management too complex and interactive to be reasonably controlled. The resulted issues include quality problems, customer complaints, and out

of control costs.

The truth is that there are many who see this as a job security opportunity, because this method increases required efforts to deliver quality to the customers.

AFRAID OF BEING LEFT OUT WITH NO COVER?!



MOTIVATING EFFECTIVE LEADERSHIP(Cont’d)


ENFORCING AN EMPOWERING SYSTEM, MOTIVATING EFFECTIVE LEADERSHIP(Cont’d)

Leadership characteristics are required for everyone, however, it is important to understand the structure of an organization, and build teams that support its elements correctly, rather than applying uncontrolled forces at the wrong places and at the wrong times.This why it is very important to have procedures and fair policies that give guidance to the employees, as well as the freedom to act on their own. Following reliable procedures to operate well designed systems will deliver results and enable employees to feel empowered.

Hidden Issues

Team Building Factors

Emotions

Motivation By Training

Satisfying Needs

Operations’ Support

Professional

PersonalWednesday, February 29, 2012

Standard operating procedures guide employees with details on how to perform their tasks accurately. Policies are used to enforce the necessary procedures, in order to assure consistent performance.


ENFORCING AN EMPOWERING SYSTEM, MOTIVATING EFFECTIVE LEADERSHIP(Cont’d)

1-Benchmarking

2-Quality Expectations

3-Concept Design4-Design & Development

5-Product Test

6-Voice of Customer

Most people are in one way or another using a product lifecycle management software/system or other systems to document, organize, and communicate data used to manage their operations. It is very

important to clearly show the connection of used data to quality & customer needs. Unfortunately, many use metrics that are not effective enough, for reasons such as neglecting some of the requirements

needed to produce the expected quality, this is a technical as well as procedural weakness.

A well designed operation produces quality efficientlyWednesday, February 29, 2012

ABOUT THE AUTHOR

CROSS FUNCTIONAL (ENGINEER, DESIGNER, PROJECT MANAGER, LOGISTICS CONSULTANT, BUSINESS ANALYST, TECHNICAL ADVISOR, PHILOSOPHER)

http://engineering-future.comhttp://www.linkedin.com/groups/Advanced-Manufacturing-Engineering-Society-3891960?trk=myg_ugrp_ovr

http://www.linkedin.com/groups/Beverly-Hills-Design-4011627?gid=4011627&trk=hb_side_g

Senior mechanical engineer & designer with extensive experience in managing design & development of products, processes, & equipment. Started with automation, project management, & supplier quality assurance engineering; Then focused on Launching new Products, Design For Manufacturing & Process Excellence/Lean Manufacturing.

Expert in using cross functional training for making quick decisions in identifying, and applying technology, as well as solving problems. Excellent business analysis, marketing and development experience.

Another presentation by Volpe (Mahzad Pakzad); Copyright © February 26, 2012Please, contact [email protected] for any requests.


http://engineering-future.com

http://engineering-future.com

http://www.linkedin.com/groups/Advanced-Manufacturing-Engineering-Society-3891960?trk=myg_ugrp_ovr

http://www.linkedin.com/groups/Advanced-Manufacturing-Engineering-Society-3891960?trk=myg_ugrp_ovr





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