optimize the quality of the organizational system
One of the trends of recent years has been on process management, or improving business performance through improved processes internal. In principle it makes sense because from a reductionist conception if we improve the parts of a whole is improved.
However, many companies are managed by process, after an apparent initial improvement, fail in the end a proper level of competitiveness. Let's see why.
could put this question another way, Is it the best of an organization the sum of the optimal process? Do you get optimum results from a company optimizing the performance of each department and process? The answer is no, especially when it comes to optimizing costs and execution times.
separately optimizing processes we can not optimize the overall performance of the organization as there is a relationship, visible or not, between all processes so that any action on a process affect other processes organization, better one, we can make other. The purpose must be to improve the outcome of the entire organization and this requires an exercise of joint optimization and not individual.
If we optimize the costs of a process, reducing them by any mechanism other than the indirect effect of improving the quality of the organizational system will cause a deterioration in other processes such that the sum will always be worse . An example
this graph represents two processes
this graph represents two processes
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Gárafico 1 - Relation% defects - Cost of two processes
This graph is the relationship between the processes of Purchasing and Production at two of its variables: cost-quality supplies.
descending curve on the left represents the cost of production and quality of supplied components (measured by the% of defects), and if the percentage of defective supplies low production costs will also drop because there are fewer rework costs, adjustments, arrears and losses. Optimum point would be in the bottom right. The upward curve to the right gives the relationship between the costs of purchase and the% of defects. We see that as the cost increases reduced the percentage of defects. The optimum would be at the bottom left.
see that neither gives the optimal lower total cost and it is somewhere in between. The first conclusion is that the optimal cost minimization is not achieved in any of the sweet spots of the processes P and C. It follows that we can not simply optimize both processes separately without damaging the sum which is the final result measured in terms of lower cost.
To achieve lower total cost should reduce, not the purchase cost as is commonly believed, nor the cost of production as it is very close to the% of defects, but the quality of the processes by improving the organizational system seen as a whole. Thus the total cost reduction is a result of improved quality organizational system. The opposite is not true.
The chart below shows us how we can improve the optimal through adequate organizational system upgrade will streamline the relationship between purchasing and production processes, bringing their best. In this case that we simulated moving clockwise curve shopping, which is equivalent to bringing the best of both curves.
Gárafico 2 - Improving the Optimod two processes by redesigning the organizational system
The consequence is that if we focus our efforts on improving the quality of the organizational system, improve quality processes and reduce total costs while if we focus our efforts on reducing process costs, quality deteriorates and eventually the costs will rise.
Another important conclusion is that allocating individual or departmental goals, it may cause serious harm to the overall performance .
This also concludes that the achievement of all departmental objectives and process do not guarantee that the company achieves its results.
only improved organizational system will enable us to achieve organizational results. We must move to improve processes to improve the quality of the organizational system.
These findings and many more said W. Edwards Deming as a result of his long experience in the study and improvement of many companies.
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