A framework proposal for integrated process management, with emphasis at result feedback trough operational performance

measurement Avides Reis de Faria Edson Pinheiro de Lima Sergio E. Gouvea da Costa

PPGEPSPUCPR PPGEPSPUCPR PPGEPS/PUCPR Curitiba, Parana, Brazil Curitiba, Parana, Brazil Curitiba, Parana, Brazil avides@rlaO 1 .pucpr.br pinheiro@ccet.pucpr.br gouvea@ccet.pucpr.br

Abstract This paper is aimed at development, implementation and discussion of a framework for management of processes focused in obtaining continuously monitored results, ensur- ing sustainable competitive advantages and triggering dis- cussions about the importance of performance measure- ment use as feedback for goals and strategy review. The main point of the approach is at proposition of a chain application of worksheets. as suggested by Platts in 1993, exposing companies which adopt this processes to advan- tages of strategy reviews.

Keywords Production strategy, Manufacturing performance, Acting measurement and competences organization,

INTRODUCTION The search for effectiveness and for survival, nowadays, has been bringing cientists, technicians and consultants specialized at company organization great chalenges in realising and identifying new points of view wich are, at the same time, dynamic and suitable for time and place of a certain activity. Productivity and competitive advantage attainement have become, in all activities, a path to be fol- lowed in the search of planned goals. At early nineties, Bolwijn & Kump [I] glimpsed that pro- ductivity, flexibility and innovation would constitute, in future, agents responsible for definition the criteria for sucess of new life cycles that activities shall follow. Ac- cording to these thoughts, acquiring and developing effi- ciency and quality competence is not enough. At permanent search for ensured performance, one shall add flexibility and innovation capabilities and then continuous good re- sults can be achieved. At the beggining of the industrial era, eficiency at special- ized producion processes suffited. Lately, involved in the globalized atmosphere, it has become necessary to add quality to products and services, and improved communica- tion and cooperation among companies several depart- ments. Immediately, the need to add flexibility to projects ap- peared, as well as integration and decentralization on the

adopted organizational structures. Finally, showing that structure changes only happen along with cultural changes, Bolwijn & Kump [ I ] add “innova- tion” in the context of the needs essencial to sucess of com- panies at the “war” to achieve competitive advantage. To democrat and to participate are keywords

fieure 1:

THE INDISPENSABLE BEGINNING: STRATEGY

When one intends to understand the contribution of strat- egy dimension in any activity, it is important to understand a scenery where internal and external benefits are identi- fied, and activities are linked to achievement of each one of the 5 (five) company performance goals. In this scenery clearly appear aspects of costs, reliability, flexibility, qual- ity and speed, characterized by Slack [2]. With focus at motivation and attainment of staff commit- ment in a process centered at results, it is essential to work at strategy goals establishment, with a multidimensional view set at 4 (four) perspectives pointed by Slack [2]:

A top-down perspective, where high management de- fines strategy values;

A bottom-up perspective, where even the most simple employees give ideas at strategy values establishment;

Perspective of “operation resources’’ where operational conditions and restrictions are considered;

Perspective of “market requirements” where internal and external clients’ needs are considered.

Strategy perspectives focused at manufacturing had already been shown by other authors, sometimes called differently but equivalent meaning. As examples of these authors can be historically ordered, Skinner [3], Hayes & Piston [4], and Hayes & Upton [ 5 ] , among many others.

a

a

FROM CAPABILITIES DEVELOPMENT TO COMPETENCE ACHIEVEMENT Company’s dynamics presents the following configuration: first, the need to adopt change strategy and methods, seek- ing performance improvement and market placement. Sec-

ond, the settlement of goals and aims in which new organ- izational performances - group and individual - are ex- pressed. Third, the addition of initiatives in mining and specializations as means to create conditions to better per- formance development. Finally, the development of new management competence, as expected result of training. This systematic approach of management by competences, matches with Fleury and Fleury 161 work, that correlates strategy, learning and competence development. For the development of most of these competences, it is necessary to match several species of knowledge, abilities and attitudes, according to Pinheiro de Lima & Lezana [7]. In a simple way, this condition can be exemplified trough some attributes demanded by the capability to anticipate and identify problems:

Knowledges on the problem area (e.g. costs, produc- tion, marketing); Knowledges about the organization which is target of the problem, and about the situation, people and rela- tions involved with it;

a Ability (or knowledge bred from experience) to realize the problem to be approached, ability to involve people and teams to solve the problem; Attitude characterized by inittiative, with the purpose to avoid the problem to became real, giving value to intui- tion at people and teams.

a

PERFORMANCE CONTROL AND MONITORING QUESTION

In Bourne et al [9], can be found references of approaches related to control activities and performance monitoring.

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CONCLUSIONS

The purpose of this article was to present a framework based in processes with the purpose to awake, in professionals with opera- tional managerial activities, a view where strategy attributes, ca- pability development, competence acquisition performance post- monitoring control are orderly placed to feedback continuously all precedent features in one only frame. The design of such systems is a cognitive practice that translates client visions and needs into business goals and proper performance measures. Development of measures use is a problem, and there will be no surprise if management opposal occurs, after all they may feel threatened by new system which involve evalua- tions. The acknowledment reached is that the scope divided into phases of design, implementation and use of measures, and specially following verifying and updating of the system trough feedback, is a usefull approach to such systems de- velopment. At the same time, it becomes evident that ideas hereon placed are functional and of easy comprehension, and therefore are an alternative easily justified at organizational initiatives. There is an agreement that its implementation success de- pends on its acceptance and commitment of involved staff at all pertinent actions. With the proposed framwwork it was intended to have a solution for long term continuous competitive advantage achievement. Aspects shown here have as advantages simpleness and it is intended, specially, to bring one more effective con- tribuition to find better ways or means and show results. In a sense of verifying validity, feasibility and limitations of the proposed famework, as well as translating it into a operational tool that can be used as management instrumet at companies, a process following Platts [14] and Gouvea da Costa [I51 will be developed and refined and, in a first step, validated at Automation ans Systems Laboratory (LAS) of Pontific University Catholic of Parana - PUCPR. Summarizing: if one does not plan, train and acquire com- petence, measure and evaluate its own systems, control its results and at last, use its results to feedback its processes, is exposing itself to loose focus of strategic management and long term competitive advantage.

REFERENCES

[ I ] Bolwijn, P.T. & Kump,T, - Manufacturing in 90’s - Productivity, Flexibility and Innovation, Great Britain, 1990.

Slack, N. et al , - .Administra@o da Produglo - Editora Atlas, Si0 Paulo, 2002. Skinner, W, Manufacturing - Missing link in corporate strategy - Harvard Business Review, 1969. Hayes, R & Piston, G, - Beyond word-class: the new manufacturing strategy - Harvard Business Review, 1994. Hayes, R & Upton, D, - Operations-based strategy - California Management Review, 1998. Fleury, A. & Fleury M.T.L, - Estrategias empresariais e formaqlo de compet8ncias: um quebra-cabega caleidosc6pio da industria brasileira. 2 ed. SHo Paulo: Atlas, 2001. Pinheiro de Lima, E.& Lezana, A.G.R, - Competence- based levels: and integrative review. In: INTERNATIONAL CONFERENCE ON THE MANAGEMENT OF TECHNOLOGY - IAMOT’99, 8., Cairo. Proceedings ... Cairo: IAMOT, Egito, 1999b. 1 CD ROM., 1999. Bourne, M ; Mills, J. ; Wilcox, M. ; Neely, A & Platts, K, - Designing, implementing and updating perfom- ance measurement systems- lntemational Joumal of Operations & Production Manangement - IPJM , vol. 20, no 7, pp 754.771, 2000.

Bitton, M, - Methode de conception et dimplantation de systemes de measure de performances pour organi- zations industrielles - These d’automatique, Universite de Bordeaux I. 1990.

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[l l]KapIan, R,S. & NORTON, D.P, - Putting the balanced scorecard to work - Harvard Business Review, Sep- temberloctober, pp 134.147, 1993.

[12]Eccles, R.G. & Pyburn, P.J, - Creating a comprehen- sive system to measure performance - Manangement Accounting (US), October, pp 41-44, 1992.

[13]Neely, A.; Mills, J.; Gregory, M.; Richards, H.; Platts, K. & Bourne, M, Getting the Measure of Your Busi- ness - Findlay, London, 1996.

[I41 Platts, K.- A process approach to researching manufac- turing strategy. International Journal of Operations & Production Management, v.13, n. 8, p. 4-17, 1993.

[15]Gouvea da Costa, S, - Desenvolvimento de uma abordagem estrategica para a seleglo de tecnologias avanpdas de manufatura - AMT. Tese (Doutorado em Engenharia) - Escola Politecnica da USP. SHo Paulo, 2003.

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