Process Design fabricate the structural planing, solutions and methods that makes easier to product management, problem solutions, and implementation, and thinking.
Today, the Process Design in an organization involves the use of new and critical parameters. Usually, the dependencies that exist between the life cycle of the organization, and the life cycle of products. The Product life cycles, and thus development cycles are becoming shorter and shorter, resulting in more frequent and more innovative project development.
However, product design and fabrication organisations still deal with the same structural solutions and use traditional methods of problem planning and thinking.
As with products, organizational decisions (e.g. for hierarchical and functional structures, branches, peripheral and production units) are the result of the company’s management.
In this context, the projected processes of the organization can be represented in the form of the following elements:
Inputs and outputs, as well as interrelated activities and interactions with each other and with an external competing environment.
The usual inputs are the environment, mission and vision of the company in the future, and the outputs are the organizational structure and strategy (Long-term goals, products, markets and technologies). The subprocesses of this basic macro process are promulgation, selection, and approval.
An organization should use these subprocesses to translate its requirements into the organization’s decisions and strategic goals .
The first macro process is followed by the implementation of the second macro process, with the help of which the organization develops a number of production and auxiliary processes based on the set strategic goals (Figure 1).
Figure 1 – Methodology for designing processes in the organization
Inscriptions for Figure 1:
1 – First Macro Process 2 – Internal Environment 3 – External Environment 4 – Promulgation 5 – Choice 6 – Statement 7 – Strategic Objectives 8 – Structural Formats 9 – Second Macro Process 10 – Flows 11 – Objectives 12 – Management Forms 13 – Process Model 14 – Management 15 – Horizontal Coordination 16 – Regulatory And Technical Documentation for Implementation 17 – Planning 18 – Implementation 19 – Control – 20 – Mission of the Organization 21 – Vision of the Organization in the Future
Our research work over the past four years has resulted in a methodology for Process Design in an organization.
The first stage of methodology development was based on the study of the available literature, and then the finished methodology was validated in two steps:
- Testing in a telecommunications company, mainly consisting in the application of the first main process: structure design and strategy development;
- Validation of the methodology for Process Design, the model of processes and forms of management in 20 Portuguese companies (these companies had certified quality systems based on ISO 9001).
We present the results for discussion. At the end of the report, our conclusions will be proposed.
PROBLEMS
The main question was whether the organization could catch with the problem of reducing the product life cycle and the product development cycle by applying the same structural forms to the design of processes and using traditional methods of planning and thinking about problems, and if not, how it could solve this problem. To do this, we tried to identify the main elements of the dynamics of the development of the organization.
Quality professionals have already tried, often without theoretical support, to develop empirical-intuitive approaches based on the crucial role of senior management. Justifies this situation by the fact that quality is a universal concept (everyone welcomes good quality). Which allows for a rather broad interpretation, which is impossible for other concepts. Some of these approaches seem limited today, mainly because developers believed in the determinism of models and forgot about their limitations and typical application. Challenges have thus remained, as evidenced by the radical technological transformation and the involvement of national, regional and international organizations.
On the other hand, radical changes in some processes did not lead to the improvement of the entire organization as a whole, this phenomenon the “paradox of processes.”
The results obtained necessitated a new approach to design at the level of processes, activities or at the level of the entire organization. While this topic is not new, it involves addressing important new aspects and constraints arising from the globalization of the economy. The rapid development of information and communication technologies (TIC), and the expansion and differentiation of customer requirements.
Analysis showed that attempts to explain the choice and functioning of dominant organizational decisions were based on deterministic and algorithmic thinking and therefore failed to understand and get the right answer in a dynamic competitive environment.
PROCESS DESIGN METHODOLOGY IN THE ORGANIZATION
FIRST MACRO PROCESS
Promulgation
Promulgation (action) is the introduction of changes in the form of modification of established schemes in order to better adapt to the new reality. At this stage, managers should have all the necessary information obtained on the basis of an analysis of the external and internal situation, as well as determine exactly what the mission and vision of the organization are in the future. In addition, they have their own understanding of reality, based on knowledge of the opinion of senior management. The information received and the experience of the organization.
Promulgation means giving meaning to what is happening and bringing that meaning to others.
In view of the complexity of the changes, we strongly recommend that there be a broad discussion of the proposed changes in order to exchange views, intuitive considerations and assumptions, and assess risk.
In the context of the learning process within an organization, promulgation means obtaining information (coded and selective search, consideration of cultural and political aspects, personnel experiences, and conflicts of interest). Since this design process is unusual, it will require an unusual amount of time and effort by staff.
Choice
In this process, the part of the information that is consistent and directly related to the needs of the organization is selected from the total amount of information. This process allows you to reduce variation and uncertainty by weeding out inappropriate information and giving special importance to the selected information.
In the context of the learning process within an organization, choice means interpreting and disseminating information in order to reduce the level of misunderstanding. Selection provides designers with decoded and interpreted information, allowing them to coordinate efforts.
The process of interpretation, selection and giving meaning involves negotiations between the members of the organization involved in the design.
Assertion
At the stage of the final process, calls “approval”, decisions are made based on new and current information. The final results should confirm the characteristics of the organization.
Leadership style, personal qualities of the staff and practical experience influence the conduct of these processes. To minimize negative manifestations, we strongly recommend involving managers at almost all levels in the design, which will allow the use of collective creativity and knowledge. An organization’s memory is not stored in a single cell.
SECOND MACRO PROCESS
The second macro process is design to transform strategic goals into working goals and create an additional working structure. It is calls a network of processes. And develop forms of its management (Figure 2).
Figure 2 – The second macro process
Process management involves the introduction of an important change in the management of the organization, consisting in the separation of power and authority over personnel (functional areas) from power and authority over results (process management).
However, this change should not create a conflict of interest or become an action that does not add value to either the organization or customers. This should be a new management style, and it should be introduced into the strategy.
Flows
A particular organization should identify its flows according to the criteria of relevance and impact on business results. This work involves finding a way to select from the whole variety of activities only those in which the organization is interested based on the need to improve management and for which it is possible to establish specific goals, performance indicators and forms of management. There are two main ways to do this.
- Identify information flows and specific process points where specific monitoring, measurement and management information is needed. Usually these are the end points of processes.
- Identify material flows and continue in a similar manner.
Common to both methods is an operational macro process that begins and ends with customer communication. This macro process usually includes a sequence of 4 to 6 main processes. To support and manage the main processes, auxiliary and management processes are required, respectively.
Goal
This study and our experience allow us to draw the following conclusions.
- The goals set are usually only quality goals.
- These goals are very rarely combined with more general business goals.
This situation is due to the use of process models that do not meet the needs of the organization.
We concluded that there is a need to define and agree on objectives at at least three levels:
1 – Business objectives;
2 – Objectives for processes;
3 – other quality objectives.
Forms of management
Management can be carried out in several ways. The most commonly used forms of management are:
Process management, perform by managers. Who report directly to the top official, and process management, performed by managers who have dominant responsibility for the processes.
The quality commission should either provide process management in the form of horizontal coordination or be an additional structure.
PLANNING, IMPLEMENTATION AND CONTROL
After the strategy is developed, it is necessary to determine the structural formats, as well as process models and forms of process management. To plan, implement and establish control over the implementation of these auxiliary processes.
METHODOLOGY VALIDATION
In order to validate our methodology, it was necessary to test it in practice so that we could summarize the concepts, approaches and methods. As well as check the proposed technical sequence and recommendations.
To test the first macro process, during which the structure and strategy of the organization need to determine. Herein we select a company that had a very short life cycle, and carrying out the above process in it. To test the second macro process, during which the process model is determine. We took a sample of 20 companies with certify quality systems – as per iso 9001 and found out the types of processes and the corresponding forms of management.
Approach to research
We proceeded from the difference that exists between the method – the set of tools applied to a particular process – and the methodology – the perspectives and assumptions used by researchers based on theories, epistemology, and existing tendencies of thinking and action.
The study of a practical example is a method of social research that is especially useful in cases where the actions are not sufficiently controlled by us and when the phenomena under study occurred in a real situation recently, as well as in cases where we are trying to understand complex social phenomena.
I note that, the study of a practical example is a method of investigation adequate to emerging social phenomena or areas subject to frequent changes.
Based on the abundant evidence for process design developments, we were able to summarize this and other evidence and thus confirm the validity of our study with external data. We attempted to detail the available evidence to facilitate follow-up studies and thus ensure the reliability of our findings.
Validation of the first macro process
The organization we have taken as a practical example has struggled with the great transformations that have taken place in a short period of time. This turned out to be very useful for us, as it corresponded to a specific situation that is very difficult to identify in an organization that has a large history of development and an established structure and strategy.
We were able to understand the organization and its environment through the access we had to some documents and databases relating, inter alia, to strategic objectives and their successful revision. For the interview, we usually, questionnaires in which the answers are require to record properly.
We have not been able to study the typical phases of reaching maturity and shortening the life cycle of an organization. But we have try to compensate for this by studying this in detail and in depth by studying the initial and growth phases.
Validation of the second macro process
We conducted the second study on the basis of practical examples in order to validate the second macro process – the Process Design model. This model uses a strategy defined during the previous macro process and implemented using certain structures as well.
We wanted to study the process models implemented in a sample of 20 companies with certified quality systems based on ISO 9001 in order to identify the degree of consistency of the strategy and process model, as well as their usefulness for the management of the entire organization.
To characterize companies, we used such indicators as their size, life cycle, structural format, globalization (% of exports), integration of systems, duration of certification, number of processes and forms of their management (types of goals and indicators).
RESULTS AND CONCLUSIONS
Strategy and structure
The organization has designed and created a structure using more intuition than a methodological approach of any type, even without the use of specialized information. The evolution of the structure has taken place over time on the basis of proposals put forward by the working groups and the administrative board.
Thus, in the beginning, the structure built mainly by management, and fragmentary (each member of the board created his own structure), as well as without officially identifying the needs of the entire organization, without developing functional technical conditions, without searching for new market opportunities and based on the current set of circumstances.
The strategy use and should need to describe as setting only one goal. In contrast, other activities with strategic characteristics may consider closely and in detail. But only in relation to marketing.
The boundaries between the processes of promulgation, selection, and approval were usually highly uncertain. In no case the mission or vision of the organization in the future determined. The structure should not base on any innovation solution (e.g., there is no horizontal coordination), and although the organization designed innovative services. The main driving force should the balance of opportunities.
Based on the above results of the study, we concluded that a methodology is necessary. It is the lack of methodology that explains the lack of consistency of results at the strategy and structure level.
Model of the second process
- There is no relationship between process models, strategy and structure. Process approaches have not been used either to create structures or to develop solutions for horizontal coordination.
- The possibility of using a macro process involving a sequence of four or six main processes should test.
- It is reveals that, small and medium-sized enterprises experienced the main difficulties in creating a utility model of the process and this is mainly due to the fact that such enterprises have less experience in management based on the set goals and established indicators.
- In two organizations, macro processes corresponded to areas of their business. The same situation is reveal during the inspection of the State Administration. Which made it possible to conclude that the model need to universal.
- Only in one company did the main processes coincide with different technological processes (in the pharmaceutical industry, separate equipment is required for each product).
- It is a curious fact that in an organization with a large number of processes (conceptually coherent and interrelated), there are no influence of operational management.
- Auxiliary processes were used mainly for procurement, maintenance and personnel management.
- It is identifying that the management of documentation and administrative elements of the quality management system is carrying out better when using procedures. We found no advantages with other approaches.
- The goals set were alien to the management of the organization, in particular, because the goals of the processes were not consistent with the overall goals of the organization. In addition, there are no link between the main indicators and the goals.
- The goals were not related to quality, for example. It is the volume of production and the efficiency of resource use.
Horizontal coordination
- The Quality Commission should the only form of horizontal coordination in all organizations of a sustainable nature. In nine organizations, process management should carry out by a senior executive officer (CEO), and a quality commission.
- In simple functional structures, the usual form of horizontal coordination need to information meetings require to manage and arrange by managers as problems arose.
- We have identified the most sophistic form of horizontal coordination in a complex organization that is part of a group of companies.
Process management
- It may reveals that, the Quality Board is the most general decision regarding management.
- In some cases, a form of managing the process by the manager can use (essentially coinciding with the performance of the dominant functional duties). But only the quality commission played the most important role in coordinating horizontally.
- Other cases were less typical: in one company, management may organise on the basis of a process approach. For which the presence of process managers is natural; another organization (the Public Administration) apply service management and treat service delivery processes as macro processes, which is also natural.
We found no relationship between the size of the organization and the number of processes. In contrast, we found an obvious link between the type of business and structural decisions (e.g., branch structure and regional structure).
General conclusion for Process Design
Among the activities that organizations are just embarking on, the creation of scenarios and the definition of the organization’s vision for the future are critical. As they affect all subsequent activities.
- Among the activities that organizations embark on after the first stage. The relationship between the two macro processes is not to take into account. Which is proves by the lack of consistency between the overall goals of the business and the goals in relation. To the processes, and the availability of additional indicators.
- Process approaches and appropriate decisions regarding management are not acceptable for an unstable environment. In such situations, atypical forms of management usually arise.
- There was no evidence of economic benefit or contribution to the redefinition of strategy and structure.
- It was not possible to try out innovative organizational solutions, but it is obvious that there are potential opportunities.
- Quality managementm and management in general should allow different decisions in a stable, and unstable environment. (Two forms of approach to management).
- The theoretical model of quality management. For example, the model is show as an initial model that may introduce into organizational science or use to identify dependencies between quality management. The environment and the Process Design in an organization.