Organisational Diagnosis

Quality Problems

Quality Problems - Lean Six SigmaA statistical measure of variation using standard deviations from a centerline. In manufacturing, six sigma quality equals 3.4 defects per million parts (in other words, not much variation). Focus on variation to learn and improve .

Process Variability

Standard

6 Sigma

3 Sigma

Quality Problems – ExamplesAirplane Journey

You arriving safely at location

6s below 0.5 defect per million opportunities

Luggage JourneySuitcase arriving with you at location

3s ~67,000 defects per million opportunities

Versus

5

Quality Problems in Business

Products are produced in business processes.

Quality of produced products are constantly monitored. This is done by certain product properties to be considered as quality variables and to measure their values periodically.

Variation in the values of quality variables is considered as indicator for control. (high variation = less control)

So, variation of the values of quality variables is the phenomenon to explain (explanandum) in organizational diagnosis

< Intermezzo M&M variation >

Current practice of causal analysis in business

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Goals of causal analysis in business

Knowledge-orientedUnderstand and explain

variations of a quality variable

Diagnose the designed business process (system)

Action-orientedPredict, intervene on, control a

phenomenon of interest

Design a business process (system)

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Causal analysis in business

Decide what’s the cause of defects in services and products

Decide who is (legally) responsible for some state of affairs

Decide what are the causes of a given phenomenon

Decide what causes dysfunction in an organisation

9

You can plan ahead …

If you know a mechanism causing a quality problem in business

You may changes policies and business rulesAnticipate on influential forces on your businessDetect (hidden) social structures threatening businessRedesign the organisationSplit or join business’

… hopefully, of course

Something is missing

Mechanisms, a `new’ causal stance

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Explanation, our stance for OD

The ‘thing’ in a business process that causes variation is a causal mechanism (explanan)

DefinitionsA causes B if there is mechanism linking A to BA mechanism is an arrangements of entities and activities that produce a

behaviour

Main contemporary supporters: Machamer et al, Bechtel et al, Glennan, …

Remote supporters: Decartes, Newton, …

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A causes B, what is A ?

A causes variation, then: What is A in business ?

Changes in the values of quality variables are by definition the result of changes in the business process in which the products are produced.

The current practice in OD is to try to find (statistical) relationships between quality variables and selected process variables (e.g. the availability of machines or people, which can change in the course of time)

The only thing we know about A in business is that it is a mechanism and statistics may point us or hints us about associations between variables in business.

Statistics and Mechanisms

• Known in LSS an external Causal Indicator: associations between variables

• Unknown in LSS an internal Causal Indicator: entitities, activities, organisation and responsibility in business

Tax Rate[high, low]

Tax Revenue[high, low]

Economy[high, low]

Tax Base[high, low]

+

+

+

-

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AN APPROACH TO CAUSATION CASE “ZWITSERLEVEN”

Layer 1:Strategic focal points

Layer 2:Project objectives

Layer 3:One-dimensional variables (CTQs)

Layer 4:Additive constituents

Layer 5:Measurements

Amount of request

Time between request and answer

CTQ1:Workload

CTQ2:Throughput

PerceivedResponse

Reduction Personnel Costs Increase Customer Satisfaction

Operational Costs

Linkage 1:Action Planning

Linkage 2:Decomposition into dimensions

Linkage 3:Decomposition into additive constituents

Linkage 4:Operational Definitions

Benefits and Costs

Repeating requests for information

Internal routing of request

CTQ3:Rework

Waiting Time

CTQ 1: Workload CTQ2: Throughput CTQ 3: Rework

Per information request category

Per information request category Per information request category

Per request Per minute Per pension policy

Information request category as registered in SIEBEL CRM

Time between registering request and registration of registering the answering in SIEBEL CRM. A manual sample of 20 cases to evaluate them for processing time

Counts of second information requests per pension policy as registered in SIEBEL CRM.

Null measurement on the basis of 2006-2007

Null measurement on the basis of 2006-2007A manual sample in CPA 3 with stop watch

Null measurement on the basis of 2006-2007

Targeting: Low as possible Targeting: Low as possible Targeting: Low as possible

Error Free

TELE

OLO

GY

TELE

OLO

GY

Associations

Modelling Concept

[Customer Request][Customer Request][Customer File, Policy][Information request]

[IRH Business Process][Receipt and Registration][Formal Letter]

[Completing Request] [Policy][Information Request]

Nr.

v1v1.1v1.2v1.3

v2v2.1v2.2

v3v3.1v3.2

Variable

workloadchannel_type file_typecategory

throughputdigital_formatclarity

reworkcorrect_policycorrect_IR

Value Range

(high..low)(post/fax/email/tel) (paper/digital) (1..13)

(high..low)(yes/no)

(yes/no)

(high..low)(yes/no)

(yes/no)

Changes

effect ctq1change 1 .. 5 change 1 .. 6change 1 .. 3

effect ctq2change 1 .. 7change 1 .. 4

effect ctq3change 1 .. 4change 1 .. 7

TELE

OLO

GY

a1.2

a1.1

a1.3

a2.1

a2.2a3.1a3.2

TELE

OLO

GY

Reflection

• ArchiMate’s meta model consists of non-observable concepts and creates a discrepancy with causal reality

• Relationships from a teleological perspective (e.g. triggers, realizes, assigned to) are not explicit about their cause and effect.

• A decomposition on the basis of mapping reality to a meta-model consists of the pre-assumptions of the meta model not necessarily correct for causality.– a business process is a “happy”-flow. – employees are assigned to each task in the flow

Conclusion

• A decomposition of the business system is necessary, not only functional but also constructional to identify the components that implement the functions.

• A mechanism is the result of an alternating process – driven by hypothesis’ on mechanisms – in which external and internal causal indications tested on their consistency to each other.

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AN APPROACH TO CAUSATION CASE “MERCK”