Basic Business Cents
A Community
Performance Improvement Plan for Small Business
MONTH 10:
OPERATIONS FOCUS
This
category of the Malcolm Baldrige Criteria for Performance Excellence was at one
time labeled Process Management, which I prefer. This section recognizes that
all work within an organization is composed of a series of processes and these
processes form a system for getting work done. A footnote in the Baldrige
Criteria states, “Work systems refers to how the work of your organization is
accomplished. Work systems involve your workforce, your key suppliers and
partners, your contractors, your collaborators, and other components of the
supply chain needed to produce and deliver your products and business and
support processes. Your work systems coordinate the internal work processes and
the external resources necessary for you to develop, produce, and deliver your
products to your customers and to succeed in your marketplace.”
Performing
the self-assessment on the Operations Focus category starts the month 10
training activity. It examines how the organization designs, manages, and
improves its work systems and work processes to deliver customer value and
achieve organizational success and sustainability. It will also measure the
readiness for emergencies of your organization.
The
areas addressed are:
·
Work
Systems: How do you design, manage, and improve your work systems?
o Work System Design
§
Design
Concepts
§
Work
System Requirements
o Work System Management
§
Work
System Implementation
§
Cost
Control
o Emergency Readiness
·
Work
Processes: How do you design, manage, and improve your key work processes?
o Work Process Design
§
Design
Concepts
§
Work
Process Requirements
o Work Process Management
§
Key
Work Process Implementation
§
Supply-Chain
Management
§
Process
Improvement
Following
the self-assessment on this category, each of the participants will be asked to
draw a system chart of how their organization works. This is not as easy as it
might sound, as management does not always know how the work really gets done.
They will have to talk to their people to see what they do in reality to
confirm their theory of how it is done and how it should be done. Workers
sometimes do something different than what they are instructed to do, not
because they are negligent or lazy, but because the processes which have been
provided to them do not work. They do what they have to do to get the job done.
Instruction
and coaching will be provided on flow-charting and drawing a systems map. This
will involve the identification of the 3-5 key processes of their organization
and the activities that are part of the value stream and those that are the
supporting and leadership processes. The key processes are drawn in a box and
represent the value added that the organization provides. Inputs such as labor
and material suppliers are drawn outside the left side of the box with arrows
going to the box. Users of the output of the organization like customers and
other stakeholders are drawn outside the box on the right. Management is shown
outside the top of the box and supporting activities like accounting,
personnel, legal, etc. are shown outside the box on the bottom. This is a
useful way to depict that those activities on the top and bottom may be useful,
but they are overhead. Only those activities contained inside the box are
adding direct value.
As
you might envision at this point, this chart is extremely useful in managing
the organization.kay
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