Role of IE for achieving

organizational excellence

S G Deshmukh ABV-Indian Institute of Information Technology &

Management, Gwalior deshmukh.sg@gmail.com National Conference on Industrial Engineering and Technology Management (NCIETM)

30 Oct 2014

Gone are the days*..

When Window was just a square hole in a room..

When keyboard was a piano..

When File was an important office material..

When Hard drive was an uncomfortable trip from

IIT Powai to Dadar..

When Apple was a fruit..

When IE was busy with time & motion studies..

That’s when we had lot of time..

For time & Motion study !! *Source: Anonymous content writer on WhatsApp

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Current business environment

Internet is creating and destroying opportunities

The electronic culture is invading business culture

Short attention spans , Depersonalized customer

/Depersonalized management, Dehumanised Markets !!

Executives in quandary

Business is not fun any more: Highly competitive

Volatile, Uncertain, Complex and Ambiguous (VUCA)

Role of IE questionable?

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Gamut of Industrial Engineering

to increase/maximize productivity through the management of people, methods of

business organization, and

technology

to design or to improvement

systems for the physical

distribution of goods and

services and to determine the most efficient

plant locations.

to design or to improvement

systems for the physical

distribution of goods and

services and to determine the

most efficient plant locations.

to develop methods for

handling and

transporting materials

to increase/ maximize efficiency

redesign and standardization

of manufacturing

processes

to eliminate worker fatigue

determine the product

requirements.

develop wage and salary

administration systems and job

evaluation programs

develop management

control systems to aid in financial

planning and cost analysis

development of production planning and

control procedures

design production

planning and control systems

to coordinate activities and

ensure product quality

Industrial Engineering is dealing with the

optimization of systems and processes (in given circumstances) through

PEOPLE

Change of focus..

Manufacturing to service

Today manufacturing is embedded in

services

IE has also changed its focus from

manufacturing to services

Manufacturing enabled by IT and web

based architecture

The basic ideas connected with the

IE stays the same

They are completely the same as the initial

ones.

The format has changed …

Basic issues of PQR (Productivity, Quality,

Responsiveness ) to be reinterpreted.. For

Organizational Excellence

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The basic idea connected with the IE stays the same !!

What HAS changed

New methods that are applied

New (non-typical) areas of implementation

New models of organizations

New view about customers

New view about employees

New approaches that are now

implemented in IE …

ERP (Enterprise Resource Planning)/CRM

(Customer Relationship Management)/SCM

(Supply Chain Management)/BI (Business

Intelligence) & Analytics

SaaS (Soft-wired as a Service) vs

Bahu(Business as Hard-wired Unit)

IE shaped by IT and New Models of web

enabled business environment

Re-thinking Organizational Excellence

Excellence

Excellence is a quality which is unusually good and

so surpasses ordinary standards. It is also used as a

standard of performance as measured e.g. through

economic indicators. the extent to which an organization achieves a set of

pre-defined targets that are unique to its mission.

These targets include both objective

(numerical) and subjective (judgmental)

indicators.

Excellence Drivers:

key dimensions of an organization’s

functioning that are critical to its

capacity to perform. Also called

domains of excellence (DOE).

Organizational Excellence

An agile, innovative organization that fulfills its mission through

leadership in state-of-the-art business practices

Remarks..

Today’s organization cannot assume that

excellence is automatic. Rather, excellence is

the systematic development, measurement,

and reinvention of organizational resources.

Excellence is not perfection; rather,

excellence is the pursuit of perfection. This

is the call for today –to not accept the status

quo, to ensure that processes are still effective,

and to implement plans for improvement. 11

Domains of Excellence (DOE) They are key performance drivers - dimensions of

organizational capacity that enable the enterprise to

Excel.

Customer value

Strategic Focus

Process Excellence

Talent Management

Knowledge

Management

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Source: Karl Albrecht, Organizational performance: Meeting the Challenges

of the New Business Environment, 2011

Source: Karl Albrecht, Organizational performance: Meeting the Challenges of the New

Business Environment, 2011

Gandhiji’s relevancee..

Customer focus

Cleanliness drive (nothing but

streamlining !!)

Swachh Bharat Abhiyan

Revisiting 5-S S Swachh

S Swachh

S Swachh

S Swachh

S Swachh

In a speech in South Africa in

1890 Mahatma Gandhi said..

“A customer is the most important visitor on

our premises. He is not dependent on us.

We are dependent on him. He is not an

interruption of our work. He is the purpose of

it. He is not an outsider of our business. He

is part of it. We are not doing him a favour

by serving him. He is doing us a favour by

giving us the opportunity to do so.”

DOE 1: Customer Value

What is it?

Key cultural , contextual, situational & operational focus

Continuing feedback an tracking of customer expectations

“ Know your customer” intimately

Synergy between “Mouse” and “Pen/Pencil”

Masterful delivery through RESPONSIVENESS

Role of IE Concept of “Value”

Understanding customer through Hand and Heart

Empathy

Quantitative Techniques,/Analytics

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DOE 2: Strategic Focus

What is it? Continuous environmental scanning and evaluation for

understanding the business dynamics

Clear purpose, Clear driving values, priorities

Linked to financial / economic results & PMS

Issue of PRODUCTIVITY and performance measures

Role of IE Understanding the environment , thinking on

Vision/Mission/Action, Management by Objectives

etc.

Measurement & Evaluation of strategy efforts

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DOE 3: Process Excellence

What is it?

Appropriate organization structure

Streamlined processes

Processes empower performance

Processes are always improving

Issue of QUALIY and RESPONSIVENESS

Role of IE

Use of 7 QC tools

Process Understanding

Improvement focus/Kaizen

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DOE 4: Talent Management

What is it?

Work culture which attracts competent talented people

Competitive compensation and incentives

Management of “fit” and fitness with culture

Opportunities for professional growth

Systems which support career progression

Role of IE

Human Resource Management

Incentivization/Motivational Elements

Work Design

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DOE 5: Knowledge Management

What is it? A culture of values & knowledge driven organization

A culture of collaboration ,creativity & team spirit

Effective use of IT

IT Infrastructure for social networking/social media

Development & maintenance of SOPs

Role of IE

Simplify, Standardize and Synergize

Documentation

Systems & Procedures

Leveraging Technology through Analytics

New View of the Business Old View

A business is a living organic enterprise.

1 + 1 = 11

There are multiple bottom lines (3 P’s).

Success is multi-facetted

Customers are solution seekers.

Employees are agents / performers.

Org’n is a complex, adaptive organic system.

It has multiple stakeholders.

Performance is caused by PEOPLE

Emerging View

A business is just a collection of assets.

It can be bought, sold, subdivided.

There’s one “real” bottom line: PROFIT

Success is defined only financially.

Customers are sources of revenue.

Employees are interchangeable “resources.”

Org’n is an apparatus; a set of processes.

It’s “owned” by management.

Performance is caused by management.

Source: Karl Albrecht, Organizational performance: Meeting the Challenges of the New

Business Environment, 2011

New View of Customers Old View

Customers as unique, solution seekers

Can be “appreciating assets” & ambassadors to organization

We focus on delivering value

Our systems reflect their worlds

Mass customization

Relationship based

Emerging View

Customers as standard economic units

Mostly standardized /disposable / interchangeable

We push products / services to them

They adapt to our way of business

Mass Production

Transaction based

Source: Karl Albrecht, Organizational performance: Meeting the Challenges of the New

Business Environment, 2011

New View of Employees

Interchangeable inanimate Units

Part of balance sheet

Transient, disposable

Treat them like machine

Just as economic entity view

Just a number

HEAD based view

Unique Performers having their identity

Complex motivations and team dynamics

High expectations and transient satisfaction

Treat them like stakeholders

Relationship building view

Part of Organic Process

Heart based view

Old View Emerging View

Source: Karl Albrecht, Organizational performance: Meeting the Challenges of the New

Business Environment, 2011

In summary ..

Role of IE..

Achieve excellence in each of these DOE

Through Methods Improvement

By designing appropriate Work Place

By incentivizing employees at the same

time taking care of Customers and

addressing the concerns of

Productivity ,Quality, & Responsiveness

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VUCA Reinterpreted …

Volatility Vision

Uncertainty Understanding

Complexity Clarity

Ambiguity Agility

Therefore Role of IE is Vital for this

transformation to achieve

organizational Excellence !!

IE will be relevant

IE as a catalyst of change

IE as an enabler

IE as a discipline to understand human

machine interface in the face of VUCA

enviornment

Role of IE..

Optimizing systems through : Analytics

and Business Intelligence

IT as an integrator of people, procedures

and technology through systems!

Excellence a journey and NOT a

destination.. Focus on continuous

improvement

IE is very much alive through a new

format

Typical tools of IE

Various M s

Man/Machine/Method/Money etc.

Ws and Hs

What/why/where/when/whom .How etc.

7 QC tools

These tools are STILL valid: their

name/format has changed: Value

stream mapping etc.

Various facets of IE

IE : Innovation Engineering

IE: Industrious Engineering

IE: Improvement Engineering

IE: Information Engineering

IE: Interactive Engineering

Instrument for Excellence

Acknowledgement..

Karl Albrecht, Organizational performance:

Meeting the Challenges of the New Business

Environment, 2011

Robert Minovski, The Future of Industrial

Engineers, Presentation in AIM Conference

“Enterprise Restructuring/Improvement , Skopje,

September, 2011

Thakkar Jitesh (IIT Kharagpur) : personal notes

and communication

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Thank you

deshmukh.sg@gmail.com

Visit me www.slideshare.net/SanjeevDeshmukh/

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