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Samenvatting Smart Organisation (SMOR-ITM year 2)
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The document is a summary of all the literature of the subject Smart organisation. It is divided per week and each topic is clearly explained.
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Literature summary: Smart OrganizationWeek 1:
What is process
structure?
Processes are chains of activities.
These activities are logically ordered
and aimed at achieving results for a
customer.
Each process contains of five
elements:
Results (input & output)
Activities
People
Resources
Frameworks (kaders)
Results (output)
A process exist because of the result for the customer. Which can be bread and materials but also
advice or other services. It is all about the result, when designing a process, reasoning is done
backwards because this makes it able to discover which activities are needed to achieve the wished
result. Any activities that does not add value, will be scrapped. Objectives or standards are attached
to each results, these are made measurable through performance indicators (PI).
Activities
Each process is a chain of activities. These are single process steps, actions or operations. The process
contains only relevant activities and each step must have a clear relationship with the end result.
People
Some activities within the process are regarded by people, they are actors with a specific role. The
division of tasks, powers and responsibilities of those actors are crucial for an effective and efficient
process. The RACI system is used for this. It is important for a process to constantly find the balance
between what the processes prescribe and what the actor can determine on the basis of his own
insight and expertise.
Resources
By means we mean machines, information provision, documents and other facilities that
independently perform activities within the process or are used by actor to perform activities.
Resources are not input because they are not consumed directly in the process while input serves as
a raw material and is converted intro output. For all kinds standard processes such as personnel,
financial, and facility management, it is no longer necessary to design the processes because basis
templates are already produced. The templates have a more general character and are in principle
suitable for automating all company-specific processes.
,Frames
The term framework is used for all preconditions, requirements (standards), plans and triggers that
come in from outside and play a role in the management of the process.
Results (input)
The underlying input is also a result, only from a present process. A customer can be an external
customer but also an internal customer. There are also internal processes that are linked to each
other via a customer-supplier relationship.
Connection between process and organizational structure
Process and organizational structure are both necessary in a company. The design of organizational
units and the personnel and job structure is not covered by the processes. On the other hand the
organizational structure does not provide an integrated insight into which activities, people and
resources can be used to achieve certain results.
When we think only in organizational structures, we organize vertically. The hierarchy are dominant
instead of the customer. Employees are focused on their task, rather than the overall result. Work is
done within the walls of the department and problems are often raised from above. With process
thinking, we organize horizontally. The customer decides what result he wants and the process is set
up and controlled on the basis of that starting point. Departmental boundaries become blurred and
employees are deployed in multidisciplinary teams.
By applying a number of elementary design rules to the design, an integrated organization and
process design can be obtained in a relatively simple manner. The following basic design rules are
important:
1. All personnel function are lined to one or more process roles
For a good connection between both structures, function and roles have to match.
2. All organization functions are covered by one main process
By keeping the functional division synchronized with the main processes, we ensure on the
one hand that there are no departments ‘without process’ and on the other, no departments
with a double function.
3. The management responsibilities are allocated as follows:
The general and hierarchical responsibilities belongs to the organizational structure
The process responsibilities (via process ownership) belongs to the process structure
Why Process Management?
We want to set up our organisation in such a way that we can guarantee the customer, or at least
offer a high degree of certainty that the product meets the agreed specification, not just once but
every time. Working with processes is an important condition to be able to guarantee reliability, it
ensures that nothing is forgotten.
Processes only need to standardize what is strictly necessary: important steps in cooperation,
activities that are necessary in connection with safety or other risks and learning experiences on how
a problem can best be tackled.
, What are the benefits of process management?
1. Increase effectiveness and efficiency
2. Higher transferability
know-how can be transferred quickly and easily
3. Better manageability
Management steers on the basis of predetermined standards, clear agreements can be
made with the team of employees about the preconditions under which they can set to work
themselves.
4. Great learning capacity
Processes strengthen the learning and corrective capacity of the organization, a basis for
improvement is formed.
Common mistakes in process management
Start improvement groups without process guarantee
Processes are described in too much detail which suffocates creativity and craftmanship.
Services require more freedom of decision than industry.
Choose the standard as the starting point, processes must be tailored to the organisation’s
own development level and objectives.
Delegate process management to quality manager, process management must be supported
and implemented by management.
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