Reading of Interest

Process map as a key to improve manufacturing cost. (Third post)

Organizational Vision unaccomplished, Management efforts diluted on department struggles, Supervisor misfocused of key activities and lack of sense of ownership along operational floor’s crew are just a few of the negativity consequences of still using organigrams. My second post covers the approach brought by Prof Michael Porter known as Process Mapping. Year 2000 marks the launch of ISO 9000 series proposing process flow as a way to describe organization. Both are the fundamentals to build the FAVMAN’s process map (FPM). Let me show the basis that give FPM the capability to avoid the issues mentioned at the beginning of this paragraph

Process map as a key to improve manufacturing cost. (Third post)

This process map approach describes organizations by three group of processes. First group of processes (at the top) describe the Organizational Vision and Organizational Management System. Second group of processes (at the middle) describe the Organization value chain. Third group of processes (at the bottom) describe the support activities. FPM gives to organization the minimum of processes to grant operational throughput with Quality within specification, Production plan without delays and Production Lines available when needed. It means you can add processes but not by pass the given by the approach. Customers + Environment + Suppliers give the information that trigger the operation (Input). Customers + Environment receive what the operation produce.

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Let us see how the approach helps to avoid the issues mentioned at the beginning of first paragraph. It is almost impossible to include the Vision into an organigram. The approach allow everyone to see how Vision works onto the value chain. Moreover, the Vision let everyone understand what the value chain must produce to be profitable (Sales project/planning), what value chain must control to be environmental friendly (Social Accountability + comply environmental regulations) and what the organization must do to be strongly talented (Leadership development planning). Them Quality management system shows manager the way to interact to achieve the organization’s goals instead departmental needs. The image shows how the Master&slave relationship is substituted by the Customer&provider relationship, reinforcing team up as well as interdependency.

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Departmental struggles and supervisor misfocus will be not a problem just because departments are not there any longer. The approach defines the value chain using the theory of restriction principles (Drum, Buffer and Rope). Commercial budget triggers value chain (the drum). The value chain planner plays with inventory and sales to generate raw material requisition and production plan (the buffer). Production is isolated from sales disturbances leaving supervisors focused on production floor activities. Warehouses and distribution pulls production (The rope). Prof. Eliyahu Goldratt defines theory of restriction to isolate the weakest part of the chain. Once you know the weakest part, it is easy to maximize it and define projects to uplift or strength it. Six sigma, PDCA, SPC are choices you can use to strength production.

Next post will cover production as a isolated process. The approach give some tips to trigger ownership in production crew. Now we have the basics to be efficient. Efficiency is a result of good management, that is why you must focus on staff crew when looking for efficiency improvements rather than the common mistake of push on production's base.