Appendix A - Complexity of the controlled process
As mentioned in chapter eight the complexity of a process can be measured by seven factors [17]:
- Product variety - Material structure - Operational structure - Specificity of the capacity - Commonality
- Capacity coherence - Uncertainty
These factors have all been mentioned for each of the processes in chapter six. Each of these processes have their own complexity. By comparing these processes at the seven factors, the relative complexity is determined . The seven aspects mentioned will therefore be rationalized with the figures mentioned for each process.
Product variety
This product variety has to be taken into account per group, not overall. When for example is looked at the HIFI process within sourcing against the Resin scheduling, this would directly lead to a large difference in complexity. HIFI would for example get the measure one, on a scale of one to ten, while the Resin scheduling would get a 10 because of the large difference in the number of items managed. This would lead to a wrong head start.
Therefore the product variety is given in the groups scheduling, sourcing and fulfillment. For product variety it is important for later purposes to look at the fulfillment functions of sourcing, and indicate their product variety so later on these can be examined. These figures are:
Scheduling Sourcing Fulfillment
SPE Resin
12937 30517
EUR RLT HIFI SS SR IR SR
1042 260 142 466 480 1883 695
SPE Resin
814 1695
This number is the variety for the entire function that controls the processes. Therefore to compare they have to be scaled on the basis of one FTE. This overview of FTE’s is shown in the next table.
A
A.1 Number of items managed per process
Scheduling Sourcing Fulfillment
SPE Resin
2 4
EUR RLT HIFI SS SR IR SR
0.5 0.5 0.33 0.33 0.75 1 (1/4 van 5) 0.33
SPE Resin
1.75
4.25 (4/5 van 5 + 0.25 van SR)
Scheduling Sourcing Fulfillment
SPE Resin
6469 7630
EUR RLT HIFI SS SR IR SR
2084 520 430 1412 640 1883 2106
SPE Resin
465 399
The relative difference of the variety must be indicate so the maximum and the minimum of the group will be divided to indicate the amount of classes that will be used to give the right measure to the process.
For the groups indicated therefore accounts:
Scheduling 7630/6469 ≅ 1 Sourcing 2130/430 ≅ 5 Fulfillment 465/399 ≅ 1
For scheduling and fulfillment the measure mentioned will not be used, because there is some difference and this is not accounted for with a one-scale measure. For both a two-scale measure is assigned. The results of measurement of variety are stated in table A4.
Material structure
The material structure of a plastic is somewhat more difficult to measure. For fulfillment and sourcing these are not relevant because of the fact that these functions just handle the product. For the other function though tolling and scheduling this aspect is quite relevant.
As can be seen within chapter six, for the production of Resin approximately 8-12 raw material components are used, including the packaging. For the production of sheet this are 5-8 raw materials. Because of the deviation at 8 materials within this research two classes will be used for this measure for scheduling.
For the tolling processes the number of materials is much lower because of the fact that the input for the process already is a finished blank. The process of HIFI concerns only the cutting of material while Rolltrans and Eurogard also concern adding a coating or a print. Respectively this coating or print is the only material added to the blank to form an end product. Therefore the materials structure has two classes, of which the amount of materials is directly the value, either 1 or 2. The result of the material structure is also shown in table A.4.
A.2 Number of FTE’s handling the processes
A.3 Relative product variety per process
Operations structure
The operations structure indicates the number of steps within the production process. A second dimension has to be added, the number of plants at which these can be performed. For sourcing this is simple. The buyers receive the product from a vendor. It is not important where this is because they do not have to arrange the production. The same accounts for HIFI and Rolltrans.
Only one activity is performed. For Eurogard this is somewhat different. The tolling scheduler has to arrange two processes, which have to be performed subsequent to each other.
Scheduling also is different from the processes described above, because there are more plants at which the operation can be performed. As stated in chapter five for Resin there are 75 lines at which in total approximately 32400 products can be produced. SPE has about 12 lines at which 12937 items can be produced. Besides that SPE has a second operation, namely the sawing of the sheet to the customer demand. Therefore HIFI and Rolltrans will get the classification 1, Eurogard and Scheduling Resin will get the classification 2 and scheduling SPE will get the classification 3.
Specificity of the capacity
Specificity regards the way in which the production capacity is fixed to one product. For Resin each plant is mainly fixed to one or several product groups. Both SPE and Resin use extrusion heads for production, which make the capacity specific. But for the Resin production more specific technology is needed next to the dies. For Noryl® for example a liquid supply is needed within the production line, this has to be built in. So within a ‘dry’ plant like Lexan®, the product Noryl® cannot be produced. This indicates that the capacity of Resin production is more specific.
The sourcing and fulfillment functions do not have anything to do with controlling the processes directly and therefore do not account within this complexity measure. The tolling process on the other hand has to do with specificity. Their specificity however, is not high. Within the tolling companies it does not matter which product is coated, sawed or printed. This means that the specificity is low.
The measures for these indicators are shown in A.4.
Commonality
The commonality indicates the number of item codes at the start of the process converted in a certain amount of item codes at the end of the product. This aspect is very complex for the SPE and the Resin product. Certain products are used for different products but besides that there are different customer specifications used for one item. So if the colors and other specific aspects are left out. The commonality is relatively high. When is looked at the main components of the production the following can be notices. There are 10 different raw materials for the product (table 4.2). For each raw material there are a few different grades. But all together they will never equal the number of items produced. Therefore there is some commonality. The commonality for SPE however is even higher, when the colors are left out. There are several standard raw materials out of which all products can be produced.
The commonality for the tolling processes is a lot easier to determine. Input for the process are the number of blanks, output are the number of products produced by the external vendor.
Eurogard has 1042 end products and 463 blanks. The commonality of this process therefore is 2.3. The number of end products can even be higher after production because of the sawing department. For Rolltrans the commonality is based on the 260 and products and 193 blanks, and
therefore is 1.3. For HIFI there are no blanks within the system specified but can be produced arbitrary. The commonality therefore is 1. The results are again shown in A.4
Capacity coherence
The capacity coherence indicates the amount to which the processes are coupled. As stated SPE consist of two processes. The second cannot be performed if the first is not finished. The same accounts for the packaging after production for SPE and Resin. Also the tolling processes have capacity coherence. Sawing has to be performed after production. Therefore all processes have two coherent steps, except for SPE scheduling/ production. After packaging the product has to be sawed. Therefore this process is classified with 2. The other processes get the classification 1.
Uncertainty
Uncertainty is again a difficult aspect to measure within the process. From the different function appears that there are three options for uncertainty regarding the processes. These are:
- Uncertainty of the process under control
- Uncertainty under control by giving extra input so the output will be correct - Not entirely under control.
The first measure is applicable for the HIFI process and the sourcing of sheet. By communicating with the external vendors and good contact the sourcing relation is under control. The vendors deliver on time. The HIFI process only concerns cutting/ slitting the sheets what is not subjected to a lot of disrupting factors.
The Rolltrans and Eurogard process send more material because sometimes the process is under control. 10% extra sheets are send to be processed. Sometimes the deviation in output is higher than the 10 % but this can be handled with the overproduction due to the extra 10%. Therefore this process is classified as measure 2. The process with the classification 3 are sourcing Resin, scheduling Resin and scheduling SPE. Due to the chemical nature of the process which are subjected to a lot of factors that influence the correct outcome of the product, there a under makes line delays etc. Even Rhodia the vendor for sourcing Resin is subjected to these aspects. The delivery dates are changed often. The results from the classifications above are shown in the following table.
Product variety
Material structure
Operational structure
Specificity of
the capacity Commonality Capacity
coherence Uncertainty Total
Scheduling SPE 1 1 3 2 1 2 3 1.86
Scheduling
Resin 2 2 2 3 2 1 3 2.14
Fulfillment SPE 2 1 1 1 2 1 1 1.29
Fulfillment Resin 1 1 1 1 2 1 1 1.14
Eurogard 5 2 2 1 1 1 2 2.00
Rolltrans 1 2 2 1 3 1 2 1.71
HIFI 1 1 1 1 3 1 1 1.29
Sourcing SPE 3 1 1 1 3 1 1 1.57
Sourcing Resin 1 1 1 1 3 1 3 1.57
Imports SPE 5 1 1 1 3 1 3 2.14
Imports Resin 5 1 1 1 3 1 3 2.14
Table A.4 Rationalizing complexity for the material management processes
For determining the complexity of the process controlled only the processes marked have to be taken into account, this because of the fact that the other processes do not specifically control a process. The complexity of their work structure will be discussed in appendix B.
Appendix B - Complexity of the work processes
Again for determining complexity of the work processes performed by the material management function, the seven factors mentioned in the first appendix are used. Determining the complexity of the work processes is however somewhat more ambiguous than determining the complexity of the production processes (CP). The factors used for the complexity of the CP cannot directly be interpreted in the same way for the work processes.
Product variety/ material structure/ commonality
The number of different products that can be produced for the customer are the same for both the production process and the work process. Therefore the material structure and the commonality, two factors that also regard the product sold by GE Polymerland, are also the same for the complexity for the work processes as for the complexity for the production process. All three measures of complexity will not be taken into account for the work processes, because otherwise they will be counted double for the complexity of the system.
Specificity of the capacity
For the work processes this factor indicates the effort it takes to switch activities between functions. This does not mean within the distinguished processes but between the eleven distinguished processes. For some processes a lot of specific training for the system used is needed. Others work with just spreadsheet and specific handling or tools that can be easily taught.
In this case sourcing can be viewed as the easiest because of the fact that they only work with spreadsheet. HIFI and Rolltrans are also accounted to this group. Fulfillment has a system that needs some training. However the interface works quite easy. Besides that there are some tools that are used. Fulfillment therefore is regarded with specificity 2. For imports the same aspects are required. Training in either ESS US or OSB US is needed and for Resin some Manugistics.
These are, considering the light training, also scaled to measure 2.
The third classification for specificity is scheduling (both Resin and SPE) and Eurogard. Both work with a very specific system with a somewhat more difficult interface. These therefore are assigned the measure three.
Capacity coherence
For one specific order most of the activities within the materials management function should be performed in a specific way. Only within the fulfillment function this is different. The sequence for the other functions is predetermined because the activities performed are related to an order.
For fulfillment this is not the case. For a lot of activities within this function the sequence does not matter. There are only one or two activities that have to be performed before a certain time during the day. Fulfillment therefore is scaled ‘1’ while the other functions are scaled ‘2’.
B
Uncertainty
During the day in relation to the operational structure there are a lot of disturbances, which form the uncertainty of the work processes. By means of a short research the interdependencies of the process with other processes were looked at and interactions and disturbances, either necessary or unnecessary, were measured. These stated the uncertainty of the different groups. The number of interactions during several days is given in the next table.
Process Days Interactions Calc. Scaled
Scheduling Resin 10 222 22.2 1 Scheduling SPE 2 113 56.5 3 Fulfillment Resin 8 528 66.0 2 Fulfillment SPE 4.5 180 40.0 1 Souring Resin 1.5 43 28.7 2
Sourcing SPE 1 13 13.0 1
Imports Resin 5 47 9.4 1
Imports SPE 1 7 7.0 1
HIFI 0.5 7 14.0 1
Rolltrans 1.5 30 20.0 2
Eurogard 1.5 80 53.3 3
Because the research concerned a small time range, this data gives an estimation of the interactions. This is also the reason why only a three-scale measure is used. With a more precise measure mistakes can easily be made in determining the uncertainty. The three-scale measure is used over the range of 59. The outcomes are also given in the table.
Operational structure
The operational structure is the most important factor in the work processes because of the fact that it cannot be measured at once. It may be the case that several steps must be performed but that these are all entering data which doesn’t take much effort of a person. This aspect has to be taken into account because of the fact that the material management function concerns case handling which is strongly related to the person of function handling the activities and the information needed for the function. For the operational structure therefore three aspects should be taken into account, which are:
- Number of steps to be taken
- Number of sources of information needed to perform the process - Relatively complexity/ effort per step
These will all be accounted as the operational structure. The first two measures are obvious, however the third measure needs somewhat more explaining
Ad 1. Number of steps
Within the flowcharts drawn up for the current situation all activities in the process are mentioned. The complexity of the work processes however only is concerned with the activities performed by material management. The following figures show the steps within the process performed; these steps are not necessarily subsequent.
B.1 Uncertainty of the work processes
Scheduling resin Scheduling SPE
Print quality bins report 1 Update spanfile (print) 1
Check report 3 run query STR 1
Are undermakes etc 4 Information plant 4
Contact customer service 2 Check spanfile 3
Redefine undermakes etc 1 Contact customer service 2
Import 1 Screen order 1
Synchronize 1 Tolerance CTS 1
Start schedule 1 Remark in CIM 1
Send list run 1 Measurement etc check 1
Check list with plant 2 Fill out excelfile/ CIM 1
Schedule ok 4 Put file on datshare 1
reschedule 1 Send message to plant 1
New list run 1 Create block 1
Export 1 Determine die 4
Adjust SO (GEMMS) 1 check when die runs/ line 3
Create barches 1 Enter data order 1
Include betaches in lines 1 PTTFG>RSD 1
Compare GEMMS/ PSP 4 Contact customer service 2
18 31 1.72 Purchase RM 4
Stock replenishment RM 3 20 37 1.85
Scheduling
Figure B.2 Scheduling steps
Fulfillment SPE Fulfillment SPE
Run queries 1 Update stockmatch query 1
Copy query excel 1 Check opp stock matching 3
Filter possibilities 1 aged tsock signaling 3
Send spreadsheet scheduling 1 Dereserve 1
Adv manugistics 1 reserve 1
Accept? 3 scheduling contact 2
RCCA entry stock out 1 create PO/ TO 1
Go through violet 3 Interpret manual data 3
Aged stock signaling 3 Judge data 4
Contact QA/ customer service 2 Contact scheduling 2
Screen perf. Indicators 3 10 21 2.1
reserve 1
dereserve 1
13 22 1.69
Fulfillment
Figure B.3 Fulfillment steps
Imports SPE Imports resin
Go through spanfile 1 Go through spanfile 1
MTO order 1 MTO order 1
Check mto stock 1 Check mto stock 1
Create PO in ESS 1 Create PO in ESS 1
Enter data shipment 1 Enter data shipment 1
create PO in OSB 1 create PO in OSB 1
Adjust ADT 1 Adjust ADT 1
enter data excel 1 enter data excel 1
verify excel with system US 3 verify excel with system US 3
verify shipment 3 verify shipment (exp booking) 3
invoice handling 3 invoice handling 3
contact harbour/ whse 2 contact harbour/ whse 2
12 19 1.58 12 19 1.58
HIFI Rolltrans
Go thorugh spanfile 1 Go through spanfile 1
MTO order 1 mto order 1
create PO 1 create PO 1
Enter data in excel 1 check whse 1
Place sheet on quickplace 1 create TO's 1
adjust RDT 1 enter data excel 1
create TO 1 e-mail excel 1
change statusscrap 3 verify shipment 3
cretae to 1 create 3 to's 1
adjust excel 1 check opportunities whse 236 3
invoice handling 3 invoice handling 3
contact vendor 2 inventory blanks? 3
12 17 1.42 quality bookings (3) 3
13 23 1.77 Sourcing resin
Eurogard
queries 1
MTO order 1 Go through span 1
Check mto-stock 1 mto order 1
Create TO/ PO 1 inventory blanks/ 3
Contact CS restrictions 2 create PO 1
Create order vendor 1 label CTS/ NONCTS 1
enter data spreadsheet 1 enter spreadsheet 1
adjust ADT 1 screen order 1
Adjust excel 1 enter data CIM 1
contact vendor 2 create block 1
admin. to admin whse 1 priority check 1
verify 3 saw date determining 4
claimhandling 3 enter saw data CIM 1
RCCA 1 print block planning 1
check mailserver 4 fax block planning 1
contact vendor 2 contact vendor 2
enter supplier data in tool 1 prepare transfer 3
17 27 1.59 create TO 1
quality bookings (3) 3
Sourcing SPE create TO 1
priority transfer 3
Go thorugh spanfile 1 contact sawing 2
mto order 1 invoice handling 3
mto stock 1 22 37 1.68
create PO in ESS 1
Enter data in sourcing sheet 1
adjust ADT 1
adjust spreadsheet 1
contact vendor 2
verify 3
create form order vendor 1
invoice handling 3
11 16 1.45
Sourcing and tolling
Figure B.4 Sourcing steps
From the figures shown the number of steps is clear. In the following table these are summed
Process Steps
Scheduling Resin 18 Scheduling SPE 20 Fulfillment Resin 13 Fulfillment SPE 10 Souring Resin 17 Sourcing SPE 11 Imports Resin 12 Imports SPE 12
HIFI 12 Rolltrans 13
Eurogard 22
From the table can be noticed that there are two groups; a group with steps from 10-16 and a group from with steps from 16-22. The processes that fall in to the respective categories will be measured 1 and 2.
Ad 2. Number of sources needed for the tasks
This measure also is relatively obvious. The number of sources can be counted. The system ESS is not added because every function uses this system for checking the orders. The following table gives an overview of the sources per process.
Process Info sources Scheduling Resin 5
Scheduling SPE 8 Fulfillment Resin 7 Fulfillment SPE 7 Souring Resin 8 Sourcing SPE 5 Imports Resin 6 Imports SPE 6
HIFI 5 Rolltrans 7 Eurogard 10
Again two categories can be distinguished; these are 5-7 and 8-10. Subsequently these are scaled 1 and 2.
Ad 3. Relative effort: Operating and decision making activities
Work processes of a function consist of different activities. Within the socio-technical movement for production environments preparing, operating and decision making tasks can be distinguished.
Because of the fact that this concerns controlling the flow of goods the preparation tasks determined by the socio-technical movement are integrated in the operational tasks. Therefore within measuring the complexity of the CO a distinction between two main types of tasks will be made, namely operating and decision making tasks. Within both tasks a second distinction will be made due to the difficulty of the tasks.
Table B.6 Scaling information sources
Table B.5 Scaling information sources
In the first place decision-making tasks require more effort from a person than an operating task.
Therefore these types of tasks will be scaled higher. Categorizing the tasks in this way four scales can be distinguished, which are shown in table B.7.
Activities/ tasks Scale
Entry
Running query etc Go through file (find)
1 Operating activities
Maintaining query Contact other teams
2
Collect information for decision Check order file
Interpret data Performance indicators
3 Decision making activities
Judge: product knowledge Judge: process knowledge Disturbance in process
4
These measures are inserted into the figures B.2 – B.4. Within these figures it becomes clear that the relative effort for the work processes differs in large amounts.
Process Relative effort Scale
Scheduling Resin 1.72 2
Scheduling SPE 1.85 2
Fulfillment Resin 1.69 2
Fulfillment SPE 2.1 3
Souring Resin 1.42 1
Sourcing SPE 1.68 2
Imports Resin 1.77 2
Imports SPE 1.59 1
HIFI 1.45 1
Rolltrans 1.58 1
Eurogard 1.58 1
These efforts must be scaled in the same way as the information sources and the number of steps.
Therefore in this case the range is important. The range is 0.68 and 3 classes must be used (square root of 11). The classes therefore are range as follows:
- Class 3: 1.87-2.10 - Class 2: 1.64-1.87 - Class 1: 1.41-1.64
Putting all the information regarding the operational structure together the following measure can be given to each of the processes for operational structure and added to table B.10 for the complexity of the work processes. Table B.9 gives the overview of the operational structure.
Table B.7 Scaling activities material management function
Table B.8 Scaling effort
Process AD1 AD2 AD3 Total
Scheduling Resin 2 1 2 1.7
Scheduling SPE 2 2 2 2.0
Fulfillment Resin 1 2 2 1.7
Fulfillment SPE 1 2 3 2.0
Souring Resin 2 2 1 1.7
Sourcing SPE 1 1 1 1.0
Imports Resin 1 1 1 1.0
Imports SPE 1 1 1 1.0
HIFI 1 1 1 1.0
Rolltrans 1 2 2 1.7
Eurogard 2 1 2 1.7
Operational structure Specificity of the capacity Capacity coherence Uncertainty Total
Scheduling SPE 2 3 2 3 2.50
Scheduling Resin 1.7 3 2 1 1.93
Fulfillment SPE 2.0 2 1 1 1.50
Fulfillment Resin 1.7 2 1 2 1.68
Eurogard 1.7 3 2 3 2.43
Rolltrans 1.7 1 2 2 1.68
HIFI 1 1 2 1 1.25
Sourcing SPE 1.7 1 2 1 1.43
Sourcing Resin 1 1 2 2 1.50
Imports Resin 1 2 2 1 1.50
Imports SPE 1 2 2 1 1.50
The complexity of the work processes can be compared because of the fact that these are all based on the same measures. The range is 1.07. Four classes are used. From the data is concluded that Scheduling SPE and Eurogard are the most complex work processes. Sourcing and imports are most simple processes.
Most complex Eurogard, Scheduling SPE
Complex Scheduling Resin
Less complex Rolltrans, Fulfillment Resin, HIFI, Sourcing and imports
Table B.9 Scaling effort
Table B.10 Complexity of the work processes
Appendix C – Risk analysis implementation
This appendix will give an overview of the risks concerning the organizational dynamics during change, when implementing option 1. The five risk types mentioned in chapter nine will be discussed.
Risk-type 1: Functional Uncertainty
FA1/ FA2 What is the complexity of the tasks to be changed? / Dynamics of the tasks
As is stated within the analysis of the report, most of the tasks the people perform are complex.
The fulfillment tasks are however less complex than the scheduling tasks. This answer has to be combined with the dynamics of the current situation. These are very high and there is a lot of reciprocal interdependency between the scheduling and fulfillment and the sourcing and fulfillment tasks. This means that a lot of coordination is needed in a continuously changing environment
FD1 What us the familiarity with tasks within the company
The people that perform the tasks, know the tasks. Also some people of the other teams are familiar with them. For Fulfillment SPE though working with Manugistics is new (they should not be in a team together alone for the SPE business).
FB What experience do the employees have with changing/ innovating processes?
A similar innovation has taken place several years ago. There should be mentioned that not every one was around at that time. Most of the people are only familiar with the current working structure
FC1 Is the problem known to the principal?
The principal does know integration has to take place.
FC2 Are there clear goals for the innovation stated by the principal?
There are clear goals: the business processes should not be interrupted and possibilities for synergy must be explored.
FC3 Are the needs of the employee-organization clear
There is clear that the tasks should be less complex, time consuming etc. The employees state this, but also the analysis from chapter 8 shows this.
F4 Are the criteria clear for the desired innovation
Most of the criteria are clear. The desired situation is stated and also most of the ways in getting there. How everything will work when the change is completed is not sure though. The anticipated advantages will have to prove themselves.
C
FD2 Is a tremendous change in the organization needed?
The change that has to be performed is considerable. The functions will for a large part stay the same, but collaboration is needed between the functions and task circulation is necessary within the functions but also between the functions. This means that the change has a lot of risks.
Scaling these questions according to the article of Van Offenbeek results in the following.
Functional uncertainty Questions Scale
FA 1 FB 0.75 FC 0 FD 0.75
Total 2.5
The measure of this specific risk type is between high and middle risk. This means that the control variables should be incorporates that correspond with these risks. This means that an early interaction with the employees is necessary. For a part this is already done, by consulting him for the matter of change. This must not be forgotten in the rest of the project. In fact they are the ones that have to trigger the change. The learning process has to be done iterative and at the lowest level as possible. This means that the employees should help each other in incorporating the new tasks into their skills. Good relations between the members are a necessary aspect within this case.
Because the step of innovations is very large for the project someone is needed that can keep distance of the current structure. This has already been taken care of by letting the project be performed by outsider.
As stated the fact that good relations between the people are needed for the iterative steps of the process. This is something that has to be initiated in the short run, because this needs some time.
Current conflicts have to get out of the way to start a new relation.
Risk-type 2: Potential for Conflict
CA1 Which groups are involved in the innovation process.
Three groups are directly involved within the innovation process. Seen from another perspective these are two. The SPE and Resin teams, but since there is some distance between the fulfillment and scheduling teams at this moment these can for this design options be seen as a separate group with separate interests. This amount is relatively high compared to the number sketched in the first risk analysis.
CA2 Do these groups have different interests, backgrounds etc.
As stated above for some groups this is certainly the case. The differences have to be overcome.
Some people within the groups state some nuance but in general the interest are different, even though the goal of the organization is the same, mainly span.
CA3 How is the power distributed between the groups
The power between the operational groups is somewhat evenly distributed. The management on the other hand has more power within the change process. This power must be used in the correct way, for the operational groups can interpret the actions in the wrong way.
CB1 Is the integration of the people necessary according to the principal.?
This first design proposal is what the principal minimally required.
CC1 Is the process dependent of other processes
Some small changes need to be made to give meaning to the process. These are related to reducing the complexity of the work processes and also the Controlled System.
CC2 Is there dependency with other groups?
The materials management organization is not an organization that stands lone within GE Polymerland. At first the material management organization is a part of the supply chain management organization of GE Polymerland, where they have to work together with customer service and distribution. Next to that the material management organization has contact with the plant, product management, sales, some customers and external vendors. This shows that a lot of group will be indirectly be influenced by the outcome.
CD1 What will the costs for the innovation
The cost will be relatively low. The change mainly involves training. This can be spread though over the long run. At first only a few people need to back up within the system.
CD2 How man people will the system need
There are 27 people involved in the integration at first. This is no more than that it is now. This is only a small part of the total organization. So the relative complexity will be middle scaled.
Scaling these questions according to the article of Van Offenbeek results in the following.
Potential for conflict Questions Scale
FA 1 FB 0.5 FC 0.5 FD 0.75
Total 2.75
Again the scale of the innovation is between the High and middle scale of risk.. This means that the conflict potential is not extremely high. This means for controlling the process that the employees need to learn to learn and negotiate in an early stage. The need of formal coordination mechanisms is needed in this stage. Defining formal phases and decision moments are necessary at the start. The employees in the operational groups should be incorporated into that process.
Motivating central players within the innovation is necessary and they have to be involved in the process with feedback and the contact to the teams. These central people must be chosen at the start, these are the gatekeepers. Next to them also people should be distinguished that can stagnate the process. They way to deal with them has to be taken into account, if there are any.
At this point there is only one aspect of conflict that is not covered with this measure as far as at this moment can be seen. Letting the organization proceed in the current way with separation between the teams will result possibly in an even larger conflict that can escalate. The teams all have the same goal but each doing a part of the entire process, which can conflict with each other.
This now can go onto the personal level, which will be bad for the organization.
Risk-type 3: Technical uncertainty
TA1 What is the complexity of the current organization?
The technology of the organization is relatively complex. But the changes do not involve with this technology. People have to learn to work with the technology. Mostly this is not to complex.
Only for the backup of SPE is possibly complex to learn. This has to change though in the future.
TB1 What is the familiarity with the new technology within the current organization
Everyone is more or less familiar with the technology. Working with it has to be learned but the principles are the same and not complex.
TC1 What are the qualities of the involved employees and management
The involved people will not be the problem for the change. The people all know what they are talking about and can help each other.
TC2 Are there problems with the expected commitment of the involved people.
The commitment of the people involved will differ between people and teams. Some have seen this coming for a long time, others still think it will pass and everything will go back to the way it was.
TD1 What is the complexity for the people initiating the change?
It is a change in structure and most of all in the thinking and mentality of the people involved to work together. This can be very tough though. The technical adjustments fall for a large part outside this change. The innovation will be performed at only one location and therefore be easy to cope with by the initiators.
TD2 Are the initiators familiar with the innovations
The technology is not proven for the company at this level. Shown is though that centralizing the supply chain management activities is better than scattered.
Scaling these questions according to the article of Van Offenbeek results in the following.
Technical uncertainty Questions Scale
FA 0.5 FB 0 FC 0.5 FD 0.5
Total 1.5
The technological uncertainty is unlike the previous two risk-types low to middle. This means that a blue print of the desired state must be clear and that iterative processes should be started in learning between people. This type doesn’t ask much of the organization for this is not the mean risk factor.
Risk-type 4: Potential for opposition
This potential gives an indicator for changing capacity and changing readiness.
WA1 In what way can the changing capacity be judged?
The capacity to change is high. The goals for the organization are clear. The amount of people involved is not to high and therefore to complex.
WB1/ WB2 In what way can the changing readiness of the organization in general be judged? / Regarding this design?
In general the readiness is higher than the readiness with regard to this process. The relations between the groups are in certain ways not stable and demand a lot of attention.
WC1 Will the quantitative impact be large on the organization
The impact will be tremendous for all the people. Some aspects they can experience as positive, because it will reduce the complexity of their current activities.
WD1 Will the qualitative impact be large?
The impact will again be large but again it can be experienced as positive.
Scaling these questions according to the article of Van Offenbeek results in the following.
Commitment of the employees is essential to the innovation. Small steps are also suggested but this is maybe not possible because it can stagnate the process. Motivation is an important factor in the preparation phase that will be initiated first.
Risk-type 5: Material conditions
RA1 Is the process important for the organization
The project is important but not very much crucial in the first place. By other means the life of the stage the organization is in can be prolonged but this will end some day.
RB1 Are there conditions to budgets
Costs are low, only training is needed. This will be initiated at the beginning of the quarter whereto the time can be spent on this matter.
RC1 Is there are pressure on time
There is some pressure. Most of the work must be done in the month after the quarter closing.
Other people can finish the project though. But this means only wrapping up.
RD1 Is there throughput time that needs to be calculated as a risk.
This means that the throughput time of the project is very short. This means there is no risk on that matter. These aspects are scaled on an ordinal scale. For this matter this means that the risk is low to middle. Only with high risk real measures should be taken. In this case this in not necessary.
Potential for opposition Questions Scale
FA 0 FB 0.75 FC 0.75 FD 0.75
Total 2.25
