COMPETITIVE MANUFACTURING
MANAGEMENT
"REFRAMING FOOD MANUFACTURING"
Jean-Pierre Wahli
1
MUDANDO PARADIGMAS
Uma dupla mudança
M
O
D
O
NOVA
ABORDAGEM
ABORDAGEM
NOVA
D
E
P
E
N
S
A
R
ABORDAGEM
ATUAL
Dupla Mudança
de
Paradigmas
REALIDADE
ATUAL
REALIDADE
NOVA
NATUREZA DA REALIDADE
2
FALA
AGE
PENSA
SENTE
3
PRINCIPAIS REFERÊNCIAS
Teoria da Mudança
Watzlawick
Gen. System Theory
Von Bertalanffy
Cibernética
Wiener
Teoria dos Grupos
Galois
Teoria dos Tipos Lógicos
Russel & Whitehead
4
A FÁBRICA DA “FANTASIA”
5
Estrutura:
A estrutura hierárquica tradicional substituída por:
- Estrutura auto-adaptável em 3 níveis lógicos
- Níveis de supervisão deixam de existir
Pessoas:
- Altamente comprometidas com a empresa e com
a qualidade de seu trabalho
- Polivalentes, continuamente treinadas, atuam de maneira
independente e trabalham em grupos autônomos
- Comportam-se como cidadãos da empresa
Processos:
- Profundamente compreendidos e totalmente sob controle
- Não há interrupções no processo produtivo
- Praticamente não existem desvios de qualidade
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Qualidade:
- O objetivo é a consistência da qualidade
- Qualidade dos processos
- Ausência de laboratório para produtos acabados e
matérias primas
Custos:
- Reduzidos em valores muito além das economias produzidas
pelas mudanças estruturais
- Melhoria Contínua é um processo orgânico
Fornecedores:
- Integrados profundamente com a empresa
- Muitos tornam-se parceiros dos negócios
- Sistema QA devidamente certificado, permitindo entregas JIT,
sem riscos
7
Meio Ambiente:
- Plena consciência das economias para a empresa e
benefícios para o meio ambiente, com a eliminação de
desperdícios e poluição
Know-how:
- Crescimento e competitividade baseados no
aprendizado e no conhecimento
- “Learning faster than the competition is the only
sustainable competitive advantage”
8
E PUR, SI MUOVE…
Este modelo foi implantado em 27 fábricas no Brasil
Considerado “best in class” em todos os exercícios de
benchmarking envolvendo as fábricas do Grupo no
mundo
Transformou-se em modelo a ser seguido dentro das
fábricas do Grupo
9
CYBERNETICS
The study of communication and control in living systems
Aimed at the development of thinking machines
Used animals and humans as a model
A multi-disciplinary team:
physicists, engineers
biologists, physiologists, neurologists
pedagogues, psychiatrists, anthropologists …
Created the concept of FEEDBACK which enables to deal
with unpredictable events
10
CYBERNETICS
The 2nd industrial revolution (the information age) with:
- Automation
- Information technology
- Robotisation
Contributed to the evolution of:
- Biology
- Pedagogy
- Neurology
- Psychiatry
- Etc
Removed the barrier between human sciences and exact
sciences
11
CHANGE THEORY
2 basic questions in a change process:
Why does the undesirable situation persist?
What is required to change it?
12
ORGANIZATION OF THINGS
Numbers
Objects
Ideas
Concepts
Events
Etc.
paradigm
13
GROUPS
Follow the 4 properties of Group Theory
Members are all alike in one common characteristic
A combination rule between the members
Basic axiom:
The outcome of the combination of two or more
group members is itself a member of the group
Other properties:
associative
3 + 7 = 10
neutral (identity) member !
3 x 7 = 21
opposite (reciprocal) member
3+0=3
4x1=4
7 + (-7) = 0
The rule is itself an attribute of the group
14
GROUP THEORY: CONCLUSION
Illustrates changes within a system that itself remains
invariant
The perception of change or persistence depends on the
position of the observer
The paradox:
"Plus çà change, plus c’est la même chose! ”
15
SYSTEMS THEORY
Closed mechanical systems with independent parts
Y = f (x1, x2, x3, x4, …)
Charateristics:
- Closed systems
- Independent functioning of the parts
- Whole = ∑ Parts
Principle:
- Linear systems
- Understandsable with classical mathematic
System dysfonction:
- Entropy increases
16
SYSTEMS THEORY
Open living systems with interdepent parts
x1
Y = f x2
x4
x3
Characteristic:
- Parts are in interaction Whole ≠ ∑ Parts
Principle:
- Non-linear information bonded systems
- Statistical approach (probabilities)
- Positive metabolism = Negentropy
Dysfunction:
- Counter-intuitiveness
17
SYSTEMS THEORY
Information
Principle of Cybernetics in living systems:
The content of what is exchanged with the outer world as:
- one adjusts to it
- one makes our adjustment felt upon it
Not subject to the law of conservation
Not lost by sharing it with others
Entropy is the measure of disorganisation
Information is the measure of organisation
I=-S
18
SYSTEMS THEORY
Counter-intuitiveness
Properties of complex systems:
Cause & effect separated in time and space
Cause and effect can replace each other
Multiple effects (order of importance shifts in time)
Removing causes does not remove effects
System destabilized if parts change importance
Turns solutions into problems by increasing disorder, thus
entropy
From a Predator/Prey model to Competition one
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SYSTEMS THEORY
The nod of the question
Organization are non-linear systems
x1
Y = f (x
x21, x2, x3, x4, …)x4
x
Representations or models are linear systems 3
Representations/models only valid in a stable environment!
In an unstable environment, using the model for change :
- Complex systems display counter-intuitive effects!
- Change to maintain the equilibrium of system is a constant
- Internal conflicts & disorder: "entropy" increases
The paradox:
"It was better when we were worse! ”
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PRISONERS OF THE SYSTEM
21
22
23
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Problem is:
Not the impossibilty of the task, but the attempted solutions
The result of a self-imposed condition
Solution found by:
Assumptions about the dots
At the next upper logical level
A change from a set of premises to another of the same
logical type
Change is only possible at that level
It is the logical way out of the system
Pawns of a game x player
25
ORGANIZATION OF THE THINGS
2nd order/level
Type 1
Attribute
1st order/level
Type 0
Object
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THE THEORY OF LOGICAL TYPES
3rd order/level
Light
Type 1
Attribute
2nd order/level
1st order/level
Type 2
Property of
the attribute
Disc
Type 0
Object
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THE THEORY OF LOGICAL TYPES
Purpose:
To avoid paradoxes of the Group Theory when analysing
complex systems
Focuses on:
- the relationship between members & class
- the metamorphosis in shifts from one logical level to
the next higher
Axiom:
"Whatever involves all of a collection
must not be one of the collection"
28
THE THEORY OF LOGICAL TYPES
To avoid paradox engendering situations:
Logical levels to be kept strictly apart
Members and class shall not be mixed up
The next higher logical level contains all the attributes
(properties) of the members
Going to the next higher logical allows to exchange
attributes of a same logical type
29
CHANGE THEORY
Two types of changes:
“First order change”
Occurs within a given system which itself remains
unchanged in its nature
“Second order change”
The other whose occurrence changes the nature of the
system itself
30
CHANGE THEORY
First order change
Follows the properties of the Group Theory
Based on « logic » & common sense
Looks safe, pragmatic, reassuring
Seeks solutions within the system
It is the domain of the obvious
The system remains invariant
The paradox:
"Plus çà change, plus c'est la même chose…”
"It was better, when we were worth!”
31
CHANGE THEORY
Second order change
Based on the theory of Logical Types
Applies to 1st order solution
It is a discontinuity, a logical jump
Always involves the upper logical level
The logical way to think "out of the box"
Deals with the effects and not their causes
Asks the question what? and not why?
Puts a situation in another frame / context
System to be kept flexible (self-adaptation)
32
COMPARING BOTH TYPES OF CHANGES
1st order change
2nd order change
• Considers practical value
of things (pragmatism)
• Considers perception/
signification of things
• Fragmental approach
• Technical knowledge
• Systemic approach
• Intelligence, logic
• Complicated & complicating • Complex & simplifying
• Changes the process
• Changes the system
KISS approach:
Keep It Simple, Stupid
Keep It Simple, Smart
Both types of changes are
Compatible & Complementary
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System:
Positive and negative integers, including zero.
Internal rule:
Multiplication
2nd order
change
Internal rule:
Addition
Neutral element:
Neutral element:
Composition with n :
Composition with n :
1
n.1=n
0≠1
n+1
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THE DUAL PARADIGM SHIFT
SYSTEMIC
APPROACH
N
A
T
U
R
E
O
F
I
N
Q
U
I
R
Y
INTERDEPENDENT
VARIABLES
Wholes are structurally divisible but functionally indivisible
Deals with
interactions
between the parts,
2ndthe
ORDER
CHANGE
the partsAVOIDING
with the whole
and its environment
PROBLEMS
∑ parts = nonsense (non-linearity)
CREATING OPPORTUNITIES
Macromanaging interaction (power to do)
INTERACTIVE
Understanding the
system
INQUIRY
ANALYTICAL
APPROACH
INDEPENDENT
VARIABLES
DUAL SHIFT
OF
PARADIGM
Reduces complex wholes to simple ones
Deals with
variables
separately, aggregate the
1ndthe
ORDER
CHANGE
understanding
of the PROBLEMS
parts into understanding of the whole
CREATING
∑ optimised parts = optimised whole
MISSINGaction
OPPORTUNITIES
Micromanaging
(power over)
Knowledge of how the system works
LINEAR SYSTEM
NATURE OF ORGANIZATION
NON LINEAR
COMPLEX SYSTEM
35
Aoccdrnig to a rscheearch at an Elingsh uinervtisy, it deosn't
mttaer in waht oredr the ltteers in a wrod are.
The olny iprmoatnt tihng is that frist and lsat ltteer is at the
rghit pclae.
The rset can be a toatl mses and you can sitll raed it wouthit
porbelm.
Tihs is bcuseae we do not raed ervey lteter by itslef but the
wrod as a wlohe and in its ctnxoet .
36
According to a research at an English university, it doesn't
matter in what order the letters in a word are.
The only important thing is that first and last letter is at the
right place.
The rest can be a total mess and you can still read it without
problem.
This is because we do not read every letter by itself but the
word as a whole and in its context.
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CHANGING THE GAME
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THE 2nd ORDER CHANGE
2nd ORDER
1st ORDER
CURRENT
PRINCIPLES OF LIFE
2nd order
change
CURRENT
RULES & REFERENCES
Current system behaviour
NEW
PRINCIPLES OF LIFE
REFORMULATION OF
OPERATIONAL CONCEPTS
Expected system behaviour
39
“REFRAMING”
- Changes the conceptual setting of a situation
- Put it into another frame or context
New frame must:
- fit equally well or better the “facts” of the same
concrete situation
- change its entire meaning
Once a new association is perceived:
- no return to the former vision
40
“REFRAMING”
2nd order
1st order
41
THE 3 SINS OF CHANGES
Ignoring the logical structure of complexity
Not keeping the logical levels apart
Attempting the change at the wrong level
42
THE LOGIC OF THE MADNESS
43
REFRAMING A MANUFACTURING COMPANY
Let's put cybernetics into management!
Reframing the organisational principles
Reframing homo sapiens
Reframing the rule of labour relations
Reframing the structure
Reframing the policy deployment
Reframing the notion of quality
Reframing continuous improvement
The door now is open for countless subsequent reframing…!
44
WHAT'S ARE THE TANGIBLE BENEFITS ?
DISCOVERING THE HIDDEN FACTORY
45
stop harrasment
We want CMM
46
THE HIDDEN FACTORY:
Most of the problems which occur on the
factory floor have their origin out of it
They are problems linked to interactions:
- communication
- norms
- administration
To management style as a whole
47
Hidden problems:
Deficient communication
Obsolete or inappropriate norms
Inadequate changes
Problems poorly solved
Technology poorly implemented
Not adapted working place
Inappropriate materials and tools
Improvised innovations
Insufficient training
Bad planning
Etc…
The hidden factory
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VALUE CREATION IN MANUFACTURING
Opportunities
Real
Potential
Reduction of structural cost
&
Reframing the premises of the
organisation
&
Discovering the “hidden” factory
Registered
Time
49
VALUE CREATION IN MANUFACTURING
Opportunities
Real
Potential
REAL
Value
creation
REGISTERED
The “hidden” factory
Registered
Time
50
HOW TO DO IT?
51
52
WHAT'S ARE THE TANGIBLE BENEFITS ?
HOW TO DO IT?
53
54
PERCEPTION OF A COMPANY
A company is a set of resources containing (equipment,
technology, know-how, people, etc.) organized and
managed in function of a given business
The efficient utilization and combination of these resources
is crucial for the success of the organization
55
WHAT IS AN ORGANIZATION ?
An organization is a group of people who purposefully
thinks, acts and interacts, aiming at a common objective
The differential of performance between organizations will
fundamentally depend on how their members think, act
and interact
56
WHAT IS AN ORGANIZATION ?
A new organization requires understanding of:
Principle of Cybernetics :
organizational
life only so far as(whole)
A- community
extends
- individual
(parts)
there
extendsbehaviours
an effectual transmission
of information
- interpersonal relations
(interactions)
2nd paradigm shift
To allow:
- the reformulation of operational concepts
In order to:
Make leaders and leds true partners
57
CHANGE OF THE GAME
N
A
T
U
R
E
O
F
I
N
Q
U
I
R
Y
SYSTEM
APPROACH
INTERDEPENDENT
VARIABLES
ANALYTICAL
APPROACH
INDEPENDENT
VARIABLES
DUAL SHIFT
OF
PARADIGM
SOCIOORDER CHANGE CULTURAL
AVOIDING PROBLEMS MODEL
2nd
CREATING OPPORTUNITIES
INTERACTIVE MGMT
SOCIO-
1nd ORDER CHANGE TECHNICAL
CREATING PROBLEMS MODEL
MISSING OPPORTUNITIES
PARTICIPATIVE MGMT
MECHANICAL MODEL
UNININDED SYSTEM
SOCIAL MODEL
MULTIMINDED SYSTEM
NATURE OF ORGANIZATION
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THE SOCIO-CULTURAL SYSTEM
The 2nd paradigm shift
Universe of symbols
The system is information and value bonded
Performance relies on the quality of information
Multiminded
Purposeful members with choice of ends and mean
Multidimensional
Neither tendency A nor B, but tendency A and B
Emergent properties
All-stars team is not necessary the best in the league
Not one-time propositions
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HOW EMPLOYEES ARE PERCIEVED
Resources driven by own needs
Exchange working hours for salary
They shall do “more and more in less time” with:
- passive obedience (Cyborg)
- commitment
- creative involvement
Their nature is highly “ deviant ” and are “ expensive ”
They must be “ supervised ” and their “ cost minimized ”
Conflicting objectives:
- Companies to maximize profit
- Employees to maximise labour conditions
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Principle of cybernetics:
"Information is the name of the content which is
exchanged with the outer world as we adjust to it, and
make our adjustment felt upon it"
"Communication and control belongs to the essence of
man's inner life, even as they belong to his life in society"
HOW HOMO SAPIENS WORKS
HOMO UTILUS
Resource
Price
Doesn’t think
Heteronymous
Dependent
Participates
SERVANT
Practical aspects
Utility
C
0
N
T
E
X
T
Competence
Talent
Skill
HOMO SAPIENS
Individual
Dignity
Think
Autonomous
Independent
Commits
CITIZEN
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THE EMPLOYEES CITIZEN WANT
Know
What is going, who is who, who does what…
Objectives, priorities, constraints, problems…
Understand
The decision process, options, implications…
Feel important
A role to play and possibilities of choice
Opportunities to grow and develop as a person
Recognition and respect
Contribute
Participate in plans for changes
Help to build a future in which they believe
To live their emotions in their professional role
63
THE HUMAN USE
OF
HUMAN BEINGS
64
Managing
Human resources
Basic
premises
Role of
the leader
C
People are an important
asset
U
Their utilisation must be
R
maximized
Planning R
of human
resources is critical
E
Establishes objectives
N
Evaluates performance
Provides adequate
T
recognition
R
U
L
E
Challenge How to:
- select ?
of the
- evaluate ?
leader
- promote ?
Managing
People’s talent
People are not resources
They have resources
Releasing individual talents is vital for:
- employees’ self- satisfaction
- success of the organization
N
E
W where
Creates an environment
people can act at their highest level
Channels people's energy
Cares them and shows it
R
U
How to:
L
- support and encourage?
- listen and be understood ?
E
- manage the working place?
65
Group of
homo sapiens
The clubbing
squad
Problems
Group of
homo utilus
66
Group of
homo sapiens
Resistance
Problems
The clubbing
squad
Group of
homo utilus
67
BASIC PRINCIPLE OF
ORGANISATIONS
Axiom of the Logic Type Theory:
« The level which contains all the members
of an organisation cannot be a member of it »
Supervision & control:
- create logic types paradoxes, i.e. paradox engendering
situations
- is a double bind situation
- spoils the logic of an organisational structure
Control is the essence of a taylorian system
It's the "golden veal" of efficiency worshipers
68
THE STRUCTURE IN 3 LOGICAL LEVELS
Level III
Meta-metalevel
Level II
Metalevel
Level I
69
THE STRUCTURE IN 3 LOGICAL LEVELS
Level III
Factory
Meta-metalevel
Level II
Metalevel
manager
Extended
management team
Level I
IMPROVEMENT FUNCTION
Ensures learning and
continuous improvement.
Is long term and process
oriented
Employees
OPERATIONAL FUNCTION
Ensures predictable results and
the control of the operation.
Is short term and result
70
oriented.
THE STRUCTURE IN 3 LOGICAL LEVELS
Symphonic
orchestra
Football
club
Level 1
Musicians
Players
Priest
Level 2
Conductor
Manager
Bishop
Level 3
Composer
Club chairman
Pope
Rule
Partition
FIFA rules
Bible
church
Catholic
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POLICY DEPLOYMENT
Injecting energy
Pact
Level III
Level II
Level I
Policy
(Ends)
Principle of
Measures system theory:
(Means)
COMPATIBILITY of COALITION
COOPERATION
Principle
cybernetics:
Policy
Measures
The
more probable
the message, the
(Ends)
MEANS
less
information(Means)
it gives
Messages
sets of information
INCOMPATIBILITYareCONFLICT
COMPETITION
subject to disorganisation in transit
Policy
Measures
INCOMPATIBILITY
(Ends) COMPATIBILITY
(Means)
ENDS
72
POLICY DEPLOYMENT
Channelling the energy
Level III
Level II
Level I
Policy
(Ends)
Measures
(Means)
Policy
(Ends)
Measures
(Means)
Policy
(Ends)
Measures
(Means)
73
CURRENT QUALITY BELIEFS
Quality is the responsibility of everyone
Quality is product oriented
Product release to the market based on statistical analysis
Labs to be well equipped with skilled staff
However:
Low level of confidence
If quality is the responsibility of everyone,
WHO does WHAT?
74
THE LOGIC OF QUALITY
Level 3
Attribute of
the attribute
Perception of the product
quality
Level 2
Attribute of
the object
Product quality
Level 1
Object
Product
75
QUALITY AND PRODUCTIVTY IN A
BUSINESS PERSPECTIVE
PRODUCT QUALITY:
CONSUMER SATISFACTION
Product design
QUALITY CONSISTENCY: CONFORMITY WITH THE MODEL
No quality deviation
PROCESS QUALITY:
EFFICIENCY:
CERTIFIED PROCESS
All CPs & CCPs under control
OPTIMIZED PROCESS
Best possible performance
76
Process oriented quality provides at the
same time:
Consumer satisfaction
Best possible performance
Confidence level above 95%
Product analysis not necessary
77
CONTINUOUS IMPROVEMENT
CURRENT BELIEF
A pragmatic management initiative aiming at performance
and cost improvement
« Ad hoc » groups dealing with specific problems
Aims at tangible objectives
Analytical (fragmental) approach. Micro-management
Monitoring of cost evolution
Stimulated by tangible rewards to groups
78
Principle of non-linear systems:
The sum of individual efficiencies does not result in the
efficiency of the whole
79
BASIC ASSUMPTIONS
Purposeful members do not like:
Dysfunctions of equipment and organisation
Losses and waste
Disorganised working place
Objectives above people & equipment capacity
All the work-disturbing factors
Everything affecting quality of life at the working place
80
CONTINUOUS IMPROVEMENT
Is the aim of the Improvement Function
Stimulates and supports initiatives that:
- improves quality of life at the working place
- fights disturbing factors
Continuous improvement
builds the most exciting place to work in !
81
CONTINUOUS IMPROVEMENT
Is a continuous reframing of the premises of any activity
Is an organisational & evolutionary (2nd order) learning
For the members:
For the organisation:
an improvement in the
quality of life at the
working place
an improvement in the
organisation’s performance
A win-win situation at the 2nd order level
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