Organisational
Diagnosis
Quality Problems
Quality Problems - Lean Six Sigma
A 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 .
Standard
6 Sigma
3 Sigma
Process Variability
Quality Problems – Examples
Airplane Journey
Luggage Journey
You arriving safely at location
Suitcase arriving with you at location
Versus
6s
3s
below 0.5 defect per
million opportunities
~67,000 defects per million
opportunities
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)
< Intermezzo M&M variation >
So, variation of the values of quality variables is the
phenomenon to explain (explanandum) in organizational
diagnosis
5
Current practice of
causal analysis in business
Goals of causal analysis in business
Knowledge-oriented
Understand and explain
variations of a quality
variable
Diagnose the designed
business process (system)
Action-oriented
Predict, intervene on, control a
phenomenon of interest
Design a business process
(system)
7
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
8
You can plan ahead …
If you know a mechanism causing a quality problem in business
You may changes policies and business rules
Anticipate on influential forces on your business
Detect (hidden) social structures threatening business
Redesign the organisation
Split or join business’
… hopefully, of course
9
Something is
missing
Mechanisms, a `new’ causal stance
Explanation, our stance for OD
The ‘thing’ in a business process that causes variation is a causal
mechanism (explanan)
Definitions
A causes B if there is mechanism linking A to B
A 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, …
12
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.
13
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]
AN APPROACH TO CAUSATION
CASE “ZWITSERLEVEN”
15
Layer 1:
Strategic focal points
Operational Costs
Layer 2:
Project objectives
Benefits and Costs
Increase Customer
Satisfaction
Reduction Personnel Costs
Layer 3:
One-dimensional
variables (CTQs)
TELEOLOGY
CTQ1:
Workload
Layer 4:
Additive constituents
Amount of
request
CTQ2:
Throughput
Time between
request and
answer
CTQ 1: Workload
Layer 5:
Measurements
Error Free
Perceived
Response
CTQ3:
Rework
Waiting Time
Repeating
requests for
information
CTQ2: Throughput
Internal
routing of
request
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 20062007
A 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
Linkage 1:
Action Planning
Linkage 2:
Decomposition into
dimensions
Linkage 3:
Decomposition into
additive constituents
Linkage 4:
Operational Definitions
TELEOLOGY
TELEOLOGY
Associations
Nr.
Variable
Changes
Modelling Concept
Value Range
v1
v1.1
v1.2
v1.3
workload
channel_type
file_type
category
effect ctq1
change 1 .. 5
change 1 .. 6
change 1 .. 3
[Customer Request]
[Customer Request]
[Customer File, Policy]
[Information request]
(high..low)
(post/fax/email/tel)
(paper/digital)
(1..13)
v2
v2.1
v2.2
throughput
digital_format
clarity
effect ctq2
change 1 .. 7
change 1 .. 4
[IRH Business Process]
[Receipt and Registration]
[Formal Letter]
(high..low)
(yes/no)
(yes/no)
v3
v3.1
v3.2
rework
correct_policy
correct_IR
effect ctq3
change 1 .. 4
change 1 .. 7
[Completing Request]
[Policy]
[Information Request]
(high..low)
(yes/no)
(yes/no)
a1.2
a1.3
a3.2
TELEOLOGY
a1.1
a2.1
a3.1
a2.2
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 metamodel 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.
AN APPROACH TO CAUSATION
CASE “MERCK”
22