The benefits of an integrated approach to enhance efficiencies and productivity in an organisation
The different approaches in process management include BPR, Lean operations, Six Sigma, Kaizen, TQM, and organisational culture.
BPR assists with the elimination of downtime, lost time, rework, and re-handling. These are inefficiencies in the majority of processes.
The re-engineering of the processes results in improved efficiencies, productivity, and improvement in the quality of the product being manufactured.
Lean operation is an extension of BPR with a focus on the elimination of waste. The essential contributor to efficiencies and the reduction of waste lies in a JIT stock management system.
This ensures the right stock is in the right place, and at the right time, to aid the flow of the operations process. The JIT stock management system is effectively controlled by an appropriate ERP system.
This, therefore, has to be integrated with the technology and systems section of the business.
Six Sigma provides approaches and tools to aid Lean operations to further enhance the efficiencies of the organisation.
Six Sigma is fundamentally BPR coupled with control elements to make sure the efficiency goals are achieved. The monitoring and control aspects are integrated with the people management section.
The different approaches to process management are interlinked, and one drives or influences the other.
The approaches are supported by the JIT drive and help develop the organisational culture.
Technology and systems management
Further improvement in efficiencies can be achieved through technology and systems management. Industry 4.0 is driven by technology.
Business processes can be automated, and technology is used to perform various functions in the operations process.
The benefit of automation is that little to no waste is produced.
A further benefit is that errors are minimised in the processes of operations.
The dramatic reduction in errors and waste leads to improvement in the quality of the final products being delivered. Time to produce is reduced as human involvement is low.
Lost time occurs due to human resources being on leave, off ill, or low productivity. These aspects are eliminated through the automation of processes and the systems are programmed to continue at the agreed pace set by the production goals and plans.
Management needs to know what the impact of the changes in the process management or automation of production processes have on the business.
Measurement of productivity, waste, cost, and efficiencies is done through information technology and specifically ERP systems. JIT Stock management forms the basis of Lean operations and is best controlled by an effective ERP system.
The system calculates the minimum and maximum stock levels through usage and thereby ensures the right stock is in the right place at the right time, in line with the production history and operations forecast.
Efficiencies are also measured and the scheduling of resources, from financial to human resources, is done by the ERP system.
The result is the optimal application of resources in the organisation and the identification of areas of improvement that can be linked back to the process management section.
Elements in the people management section are change management, monitoring, active management, culture, and training and development.
When there are changes in the process management section or new technology is introduced, or new information technology systems are implemented, the human resources of the company require training on the new system processes.
The effectiveness of the training and development conducted needs to be measured. Information technology is used to measure this, and it identifies opportunities for further development or training.
This links back to the technology and systems section. Management monitors performance through increased active management to ensure compliance with new processes and the correct utilisation of technology and systems.
The monitoring and active management results in increased productivity and efficiencies by employees.
The changes are brought about by using change management as an approach to effect the required changes in the organisation to achieve the strategic goals and objectives.
The aspect of culture forms part of each of the sections; process management, people management, technology, and systems management.
The use of technology and systems creates a culture of measurability. The focus is then on the output that is being measured and not on the person.
Benchmarking is done and performance is independently measured to show the increased productivity and efficiencies. Measurement will also identify prevailing and developmental requirements.
Process management, with reference to Lean operations and Kaizen, examines TQM and JIT aspects. The drive to improve quality and the JIT aspects of stock control and production leads to a culture of performance.
Pride in the quality of performance is created. This is shown by linking the process management with the technology and systems section, which is driven by a culture of performance and performance measurement.
Culture plays a role in the people section. Continuous process improvement through BPR, automation and systems installation is driven by a culture of development and learning.
Continuous training and development of human resources enhance skills. Skills enhancement results in improved productivity and higher efficiencies.
The culture of the organisation drives the way things are done in an operations company. The different aspects of culture in the various sections of the proposed framework come together in a culture of performance in the organisation.
A change in one section impacts the other sections and impacts the culture of that section and that has an impact on the overall culture.
All changes must be implemented by integrating the various sections, thus altering the culture through a structured change management programme.