Striving for excellence
Assessing and Improving CTC’s Quality Information System
Striving for excellence
Assessing and Improving CTC’s Quality Information System
Author: Vincent Augustinus Hoen
Rijksuniversiteit Groningen
Faculty of Management and Organization 1st supervisor: drs. D.J. Schaap
2nd supervisor: dr. H. Broekhuis
Ceylon Tobacco Company
Supervisor: R. Ranasinghe
Groningen, May 2006
The author is responsible for the content of this thesis.
Copyright of this thesis belongs to the author.
Preface
The Ceylon Tobacco Company offered me a great opportunity in researching their Quality Information System (QuIS). For me, being a student of the Faculty of Management and Organisation of the University of Groningen, it was a great experience to conduct this research for my thesis. The research took place in Sri Lanka. This country offered me a great context to perform the research. Sri Lanka proved to be a country full of hospitality and many interesting challenges.
Now having finished my thesis, I am convinced that this thesis offers an in depth overview of the effectiveness of the QuIS. Besides this I have identified several improvement
opportunities. These opportunities will help CTC in their pursuit of excellence for their QuIS.
For me it was inspiring to notice that the pursuit of excellence is present in all of CTC’s business conduct.
The successful finishing of my thesis would not have been possible without the help of Mr.
drs. D.J. Schaap, my first supervisor of the faculty of Management and Organisation. Mr.
Schaap my thanks go out to you, your help guided me in structuring my research and come to a solid research model. I would like to thank dr. M. Broekhuis as well. You made me reflect on my research over and over again. This improved the quality of my thesis significantly. I thank you for the time you made free to help supervising my research.
Besides the people of my university my thanks go out to members of the organisation of CTC.
First of all I would like to thank Mr. Paul Hiltermann former CEO of CTC. I thank you for bringing me in contact with the relevant people at CTC allowing me to get the assignment of this research. I thank you for letting me feel welcome in Sri Lanka as well.
Secondly my special thanks go out to Mr. Nishantha Gooneratne. I thank you for the priority you gave to the QuIS research and the inspiring contact moments we have had. Further, I thank my supervisor at CTC, CTC’s quality assurance manager. Rukshan, you supervised me excellently in the QuIS research. I thank you for your support and the time you spent with me.
Claudette, you made my family, friends and myself feel very welcome in Sri Lanka. I thank you for supporting me at CTC as well. Mr. J.A. de Silva, I thank you for letting me drive with you to work every day. I’ve had a great time with you in your car. The time I spent with you outside CTC is unforgettable for me. I thank you for letting me see so much more of Sri Lanka Further I thank the people of the QuIS support staff, CTC’s experts on the supplier of the QuIS and all QuIS users who cooperated in the research. I know I have bothered you from time to time, but it was worth the effort. Finally my thanks go out to the people of the HR department and all other people of CTC with who I have had a great and inspiring time.
Besides the people of my university and CTC I thank my friends for giving me a pleasant time, during my whole study period. I thank my parents, sister, grandparents and other family for supporting me throughout my study. Finally I thank Eline for the support during the writing of my thesis.
Glossary
• BAT: British American Tobacco, this is the over coupling organisation under which CTC falls.
• CSR: Corporate and Social Responsibility, CTC has a corporate and social responsibility program within is corporate excellence framework. Interests of Sri Lanka’s society are being served by this program.
• CTC: Ceylon Tobacco Company, this is the organisation where this research took place. CTC is the only legal distributor of cigarettes in Sri Lanka.
• FPI: Finished Product Inspection, at this place within CTC’s production process finished products are checked for quality.
• JKCS: John Keells Computer Services, this is the supplier of the QuIS. JKCS provides QuIS support and develops new QuIS features.
• PMD: Primary Manufacturing Department, this is the place within CTC’s production process where raw tobacco is made ready for processing into cigarettes.
• SMD: Secondary Manufacturing Department, within this part of CTC’s production process tobacco received from PMD is used to manufacture and pack cigarettes.
• QA: Quality Assurance department, several quality checks on samples out of CTC’s production process take place at this department.
• QuIS: Quality Information System, this is the subject of this research. It is CTC’s quality information system that captures data from out CTC’s value chain on quality parameters of CTC’s products. The system can be used to represent this data in several ways as well.
Management summary
The research performed in this report took place at the Ceylon Tobacco Company (CTC), Sri Lanka’s only legal producer of cigarettes. CTC requested an evaluation of their newly implemented quality information system in order to come to improvement opportunities. The request came form CTC’s quality assurance manager who is responsible for this system. This research is performed to answer to this request. Overall, the effectiveness of the QuIS was already perceived to be good. Still, there were areas related to the QuIS which were perceived to be viable for improvement. To assess CTC’s quality information system the following goal is set for this research:
“To give an evaluation of the Quality Information System (QuIS) of the Ceylon Tobacco Company, in order to come to recommendations for improvement of the system.”
The main research question of this research is:
“To what extent is the Quality Information System of the Ceylon Tobacco Company effective and how can the system be improved?”
To gain insight into the effectiveness of the QuIS and for the identification of improvement opportunities first of all CTC and the QuIS are described. These descriptions are followed up by a problem analysis in which the following problem groups are identified:
• QuIS supplier related problems
• QuIS user related problem
• QuIS failures
Using the descriptions of CTC and the interviews for the problem analysis first the main QuIS stakeholders are identified. These stakeholders turned out to be CTC as an organisation, QuIS users, the supplier of the QuIS and the QuIS support staff. The latter three stakeholder groups are involved in the research by providing information necessary for the different analysis.
Consequently, three analyses took place for the identification of the effectiveness of the QuIS. First of all an user analysis took place. In this analysis user perceptions are used to come to an idea of the overall effectiveness of the QuIS. In this analysis the following dimensions are identified to hold areas for improvement:
• functioning of the QuIS
• linkage to the strategic process of the firm
• reliability of the service
• the ability to respond to end user needs
• IS staff quality
• user involvement
• responsiveness to new system needs
The main implication of the user analysis is that dimensions mentioned above, with a lower overall effectiveness, need to receive a higher improvement opportunity.
Secondly a supplier analysis took place. The supplier is important because the supplier delivers QuIS support and develops new QuIS features. By means of the supplier analysis groups have been identified which can be improved on for higher QuIS supplier effectiveness:
• supplier overall performance
• supplier innovativeness and flexibility
• supplier knowledge and expertise
• supplier financial abilities
• supplier service provision
• supplier and CTC cooperation
The supplier analysis is extended with a supplier evaluation meeting to be sure that a comprehensive picture of supplier effectiveness is created.
The third analysis of this research is the QuIS support staff analysis. The support staff makes sure the QuIS runs smoothly and problems are being solved. Within this analysis first of all attributes from the user analysis on the support staff are elaborated on. Here the response time of the support staff to remedy problems and the competence of the support staff are identified as less effective.
Within the support staff analysis groups are identified for the identification of the effectiveness of the support staff as well:
• support staff means to support the QuIS
• support staff quality
Besides this the support staff identified the overall effectiveness of the QuIS. Therefore the following groups are identified:
• the flexibility of the QuIS
• supplier quality
• functioning of the QuIS
• reliability of the service
A support staff evaluation meeting is held to ensure a comprehensive picture of the effectiveness of the support staff and of the perception of the support staff on QuIS effectiveness.
The final analysing chapter is on the risks for the QuIS. QuIS risks are identified but most importantly suggestions for the implementation of a risks management approach have been given to ensure future QuIS effectiveness.
In the final step of the research improvement opportunities are identified for the QuIS. This has been done using the analysis described above as input.
First of all Improvement opportunities relating to QuIS efficiency, user involvement, QuIS flexibility and QuIS performance are identified. The QuIS can improve on these areas by additional training, more user awareness on the QuIS, the implementation of an user need and problem capturing mechanism and most importantly accepting QuIS users as the most important QuIS stakeholder. In relation to these improvement opportunities a reappearing note is that when user demands cannot be incorporated into the QuIS it must be
communicated why this is impossible.
Further improvement opportunities in relation to the supplier analysis are identified. These improvements relate to higher supplier flexibility, performance, expertise and creating a better relation with the supplier. Improvement opportunities related to the supplier are an effective issue capturing mechanism for the supplier, regular meetings with the supplier, contractual agreements on supplier flexibility and mutual learning meetings between the supplier and the QuIS support staff.
For the QuIS support staff several improvement opportunities have been identified as well.
These opportunities are related to the supports staff response time to remedy problems, competence of the support staff, overall support staff quality and the ability of the support staff to solve problems. The improvement opportunities are to train more support staff members, improving on the way of training new QuIS support staff members, higher overall awareness on the QuIS within CTC’s general support staff and mutual learning between the supplier and the support staff.
The final recommendation for improvement is on the implementation of an effective risk management method. This method is not in place but can ensure more effective future QuIS functioning.
Finally there can be concluded that there are areas related to the QuIS which are less effective. For these areas improvement opportunities are identified within this research.
These improvement opportunities offer a mean to come to a more effective quality information system within the organisational context of CTC. CTC has the achievement of excellence as a high priority within its business conduct. To achieve this (continuous) improvement of the QuIS needs to receive a high priority.
Table of content
Preface 4
Glossary 5
Management summary 6
CHAPTER 1: INTRODUCTION 11
1.1 Introduction to the research 11
1.2 CTC description 11
1.3 QuIS description 13
1.3.1 QuIS in its context 13
1.3.2 QuIS data capturing 14
1.3.3 Difficulties former quality information system 15
1.3.4 Description of the QuIS 16
1.4 Conclusion 18
CHAPTER 2: RESEARCH SET UP 19
2.1 Reasons for the research 19
2.2 Problem analysis 19
2.3 Problem statement 21
2.4 Research model 22
2.5 Methodology of the research 24
2.6 Validity and Reliability 25
2.7 Conclusion 25
CHAPTER 3: STAKEHOLDERS INFLUENCING QUIS EFFECTIVENESS 27
3.1 Introduction 27
3.3 QuIS supplier 28
3.4 QuIS support staff 29
3.5 Conclusion 30
CHAPTER 4: EFFECTIVENESS OF THE QUIS 31
4.1 Introduction 31
4.2 QuIS user analysis 31
4.2.1 Introduction 31
4.2.2 Relevance of the user analysis 31
4.2.3 User Information Satisfaction 31
4.2.4 The approach of the user analysis 32
4.2.5 Method of the user analysis 33
4.2.6 Measurements 34
4.2.7 QuIS effectiveness perceived by management level users 35 4.2.8 QuIS effectiveness perceived by executive level users 38
4.3 QuIS supplier analysis 43
4.3.1 Introduction 43
4.3.2 Relevance supplier analysis 43
4.3.3 Approach supplier analysis 43
4.3.4 Method supplier evaluation 44
4.3.5 Measurement 44
4.3.6 Supplier effectiveness 45
4.3.7 Outcomes supplier evaluation meeting 47
4.3.8 Conclusion 48
4.4 QuIS Support staff analysis 50
4.4.1 Introduction 50
4.4.2 Relevance of the support staff analysis 50
4.4.3 Method support staff analysis 50
4.4.4 Measurement support staff analysis 51
4.4.5 Effectiveness support staff identified by QuIS users 52
4.4.6 Effectiveness rated by support staff 53
4.4.7 Support staff evaluation meeting 55
4.4.8 Conclusion 56
4.6 QuIS risk analysis 57
4.6.1 Introduction 57
4.6.2 Relevance risk analysis 57
4.6.4 Method proposal QuIS risk management 58
4.6.5 Implementation risk management approach 59
4.6.6 Conclusion 59
4.7 Overall conclusion chapter four 59
CHAPTER 5: QUIS IMPROVEMENT OPPORTUNITIES 61
5.1 Introduction 61
5.2 Change typology 61
5.3 Method QuIS improvements 61
5.4 General QuIS improvement opportunities 62
5.5 Improvement opportunities related to the supplier 63
5.6 Improvement opportunities related to the support staff 64
5.7 Type of change needed 65
5.8 Conclusion 66
CHAPTER 6: CONCLUSION AND REFLECTION 67
6.1 Conclusion 67
6.2 Reflection on the research 69
Literature 71
APPENDICES ERROR! BOOKMARK NOT DEFINED.
Appendix 1: CTC in Sri Lanka Error! Bookmark not defined.
Appendix 4: QuIS management level user analysis questionnaire Error! Bookmark not defined.
Appendix 5: Outcomes QuIS management level user analysis questionnaire Error! Bookmark not defined.
Appendix 6: QuIS executing level user analysis questionnaire Error! Bookmark not defined.
Appendix 7: QuIS executing level user analysis questionnaire (Singhalese) Error! Bookmark not defined.
Appendix 8: Outcomes QuIS executing level user analysis questionnaire Error! Bookmark not defined.
Appendix 9: QuIS supplier analysis questionnaire Error! Bookmark not defined.
Appendix 10: Sources supplier analysis questionnaire attributes Error! Bookmark not defined.
Appendix 11: Outcomes supplier analysis questionnaire Error! Bookmark not defined.
Appendix 12: Support staff analysis questionnaire Error! Bookmark not defined.
Appendix 13: Sources QuIS support staff analysis attributes Error! Bookmark not defined.
Appendix 14: Outcomes support staff questionnaire Error! Bookmark not defined.
Appendix 15: QuIS risk analysis Error! Bookmark not defined.
Chapter 1: Introduction
1.1 Introduction to the research
This research is on the recently implemented quality information system of the Ceylon Tobacco Company (CTC). CTC is an organisation which has a monopoly on the production of cigarettes in Sri Lanka. CTC is an important organisation in this country, because it generates up to twelve percent of the annual state tax incomes. Since the tobacco industry is a
controversial one, CTC wants to eliminate all factors which can cause problems and uncertainty. One of the efforts in the pursuit of excellence is excellence within CTC’s processes. For the monitoring of quality, mainly within the production process, CTC implemented a new Quality Information System (QuIS). After the implementation the QuIS, CTC felt the need for an evaluation of the system. CTC had the idea that the evaluation was useful, because the system was performing well, but could perform even better.
As a student of the Faculty of Management and Organisation at the University of Groningen, I have been attracted to perform this evaluative research. Within this research the context in which the QuIS operates will be described. The focus of this research will be on CTC’s departments and features which are relevant for the QuIS and its functioning. Hereafter QuIS related problems will be analysed using a problem analysis. The problem analysis will be the input for the problem statement of the research. The problem statement will be used as the starting point for further QuIS analyses to eventually identify QuIS improvement opportunities.
1.2 CTC description
In 1927, the British American Tobacco Company Ceylon Ltd. was set up to manufacture cigarettes in Sri Lanka (more information on CTC in Sri Lanka is available in appendix 1). In August 1954, CTC came into existence by the issue of shares in the local market. CTC is the only legal producer of cigarettes in Sri Lanka. The company has some impressive figures on its influence on the Sri Lankan economy. CTC generates as much as 4% of the jobs, over 200,000 men and woman in urban and rural Sri Lanka are directly or indirectly working for CTC. CTC pays up to twelve percent of the total tax revenue collected by the state annually.
Over the years, CTC has successfully maintained the status of a quasi-monopoly in Sri Lanka.
CTC’s major stakeholder is the UK based organisation of British American Tobacco (BAT).
BAT is a joint venture between the UK’s Imperial Tobacco Company and the American Tobacco Company of the United States. BAT is world’s second largest quoted tobacco group.
There are more than 300 brands in its portfolio and the Group has 81 cigarette factories in 64 countries, producing over 850 billion cigarettes annually. In total BAT employs more than 90,000 people worldwide.
Producing the cigarette
The tobacco CTC uses for the production of cigarettes is grown by independent tobacco farmers in Sri Lanka. The company purchases tobacco leaves from farmers in depots situated at central locations in tobacco growing areas. The farmers related to CTC grow 95%
of the leaf required to produce the companies’ brands.
The leaves are processed at the Green Leaf Threshing Plant in Kandy. This is the first part of the production process of CTC’s products. CTC’s main office and factory are situated in Colombo. Prepared tobacco from the Kandy factory is processed into packed cigarettes in Colombo. Here is first sent to the Primary Manufacturing Department (PMD) where the lamina and the stem are conditioned, blended and cut so it can be processed into cigarettes at the Secondary Manufacturing Department (SMD). The final boxes with cigarettes are transferred to the manufacturing stock warehouse until they are issued to distributors or exported. CTC produces the following cigarette brands:
• Benson and Hedges: This is CTC’s international premium brand in its portfolio. The strategy for this brand is one of selective distribution and promotion of the brand to reinforce its premium position.
• John player gold leave: This is CTC’s international mainstream brand. This brand drives value growth in the company’s portfolio strategy.
• Bristol: The mid-price brand within CTC’s portfolio.
• Value for money cigarettes: CTC maintains three ‘value for money brands’, these brands are three roses, capstan and four aces. Their main role is to contain the illicit cigarette market, thereby protecting the company’s volume base from the threat posed by locally produced, bottom end, cheap handmade cigarettes which are allowed by Sri Lanka’s government. Although these products are competing in the lower end of the market quality is high and a strong distribution network is
maintained.
Quality assurance
Quality assurance is important for this research, because it is the function of the QuIS.
Quality assurance is the responsibility of CTC’s Quality Assurance Manager. The quality activities are planned, promoted and coordinated by CTC’s quality assurance manager.
CTC has a special Quality assurance department as well. The employees working at the quality assurance department perform specific product related quality measurements. There is a laboratory in Kandy which performs quality measurements as well. Here several chemical, physical and environmental analytical tests are carried out. CTC formulated a specific quality vision which is used as an important guiding principle for the quality
assurance department: "Ensuring that BAT Products and Packaging are always perceived by Consumers as the Quality leader in their competitive set."
To achieve this vision CTC formulated three strategic objectives considering quality assurance. The first is achieving comprehensive measurements of consumer requirements and satisfaction. The second objective is conformance to external regulatory requirements and corporate requirements. The third and final objective to reach the quality vision is a systematic approach for continual improvement. This is embedded within CTC as an organisation as a whole, but particularly important for the quality assurance department.
Operational excellence
For CTC excellence is an important theme, respectively this can be read in CTC’s mission statement “ Meet key stakeholders expectations whilst enjoying recognitions as ‘ Top Tier’
BAT operation for Business Excellence" and vision “To be the inspiration for corporate excellence in Sri Lanka”
Within CTC operational excellence is one of the key focus points. The way CTC applies these principles, can be described by applying it to the principles of total quality. Below the
principles are given, briefly described and applied to CTC:
A focus on customer and stakeholders
The customer is the principal judge of quality. Companies must include both the design of new products that truly delight the customer and respond rapidly to changing customer and market demands (Evans & Lindsay, 2005: 19). CTC recognises the importance of
understanding the needs and wants of the consumers. There are frequent dialogs with consumers, retailers and distributors. Hence, CTC tries to satisfy all of its stakeholders. Other ways in which CTC applies this principle are visits of factory staff members to identify
consumer issues, retailer visits to CTC’s factory, cross functional team involvement and a consumer complaint feedback system.
A focus on the customer extents beyond the relationship with the consumer. Employees and society represent important stakeholders. Viewing society as a stakeholder is an attribute of a world-class organisation (Evans & Lindsay, 2005: 19). CTC applies this by an intensive social responsibilities regime. Corporate Social Responsibility is a concept applied by CTC whereby social and environmental concerns are integrated into business operations.
For CTC the CSR process begins with the company ensuring the use of best practice in all of its business conduct. The entire social responsibility is audited by an external entity and governed by a set of standards. Internally CTC has a comprehensive environmental health and safety policy that guides every facet of the company’s operations. Whilst ensuring that the company maintains the highest standards of health, safety and care for the environment, it also adheres to BAT’s own standards for environmental health and safety related national laws and regulations. Externally CTC’s CSR programme comprises five main platforms: Rural economy, Community development, Business Excellence, Arts & Culture and Responsible Product Stewardship.
Participation and teamwork by everyone in the organisation
Operational excellence is pursued by empowering employees to make decisions that satisfy customers without constraining them with bureaucratic rules as well. This shows the highest level of trust in employees (Evans & Lindsay, 2005: 20). For CTC communication is one of the key elements of achieving this. It is important that all the initiatives of CTC are
communicated throughout the whole organisation. This is done by having daily functional and cross functional meetings. Team briefings, small group meetings and union management meetings are also used for this cause. Finally there are educational programs for a high level of professionalism and competence among employees.
Another important element of total quality is teamwork, which focuses attention on customer- supplier relationships and encourages the involvement of the total workforce in attacking system problems (Evans & Lindsay, 2005: 20). CTC uses several forms of teamwork within all levels of the organisation. Project teams are used to tackle problems or develop new organisational systems. On the work floor teams are used as well. These teams run the shifts for the production and are consulted regularly.
A process focus supported by continuous improvement and learning
When trying to achieve total quality a process focus supported by continuous improvement and learning is important. A process is a sequence of activities that is intended to achieve some result. We typically think of processes in transforming inputs into outputs (Evans &
Lindsay, 2005: 20). This is the way CTC views her processes as well. There is a detailed outline of CTC’s processes which is assessed and checked with reality frequently. Practices used to ensure optimal processes are pit stop maintenance, maintenance planning meetings, accountability and responsibility.
The quality of the processes is assured by the QuIS; this system will be described in the next graph.
CTC applies the principles of continuous improvement as well. This refers to both incremental changes, which are small and gradual, or large and rapid, improvements (Evans & Lindsay, 2005: 21). At CTC this is firstly done through new product developments (mainly new brands). Reducing errors, defects, waste and their related costs are important as well. Finally productivity, effectiveness and responsiveness are principles that are important for CTC.
Learning is ensured by viewing people as valuable assets. CTC has a structures training program for all employees. Both hard and soft skills of people are developed.
Quality awards
Within the framework of total quality management and operational excellence awards are an important mean to come to a high performance situation within organisations. Although awards justifiably recognise only a select few, the award or certification criteria provide frameworks for managing from which every organisation can benefit (Evans & Lindsay, 2005:
113). CTC often uses means like this for the achievement of high quality in several areas.
CTC has won numerous awards.
1.3 QuIS description
1.3.1 QuIS in its context
The model given below views the organisation of CTC as a system. This system
comprehends the quality information system, control system, primary transformation system and the environment. The model is a slightly adapted version of Blumenthals model in Bemelmans (1991). This model is useful to get a better grasp of the functioning of the QuIS in its context.
Figure 1.1: QuIS in organisation as a system (Blumenthal in: Bemelmans 1991)
Within CTC the QuIS, just like in the model of Blumenthal in Bemelmans (1991) captures information from the primary transformation system. Within the model this stream is represented as internal observation from the transformation system towards the quality information system. Within the QuIS the data captured by the information system is
transformed into usable information. This information is used to support the different levels of control. Finally the control system executes actions towards the primary transformation system for effective functioning.
1. The information system (QuIS): This system is aimed towards the production of quality information for operational, tactical and strategic decision levels (Bemelmans, 1991: 55) The QuIS is the main focus point of this research. The information system apprehends the collection of methods, facilities and activities used to fulfil the quality information need of CTC.
2. The primary transformation system: This is the organisational system aimed towards design, production and sale of the products or services. Formulated briefly, this system apprehends the ‘core business’ of the organisation (Bemelmans, 1991: 54). Within CTC this system can be seen as the production process of tobacco (and other parts of the value chain) on which the QuIS captures most of its data and information.
3. Control system: This is the system which controls the primary transformation system. The control is executed by people or automates (Bemelmans, 1991: 54). De Leeuw (2000), states that control is a form of directed influence (de Leeuw, 2000: 151).This is the way control is seen within this research as well. The QuIS is used by the control system to control the production process. The control is executed on strategic, tactical and operational level and directed towards the primary transformation process.
4. Environment: The environment provides the inputs into the primary transformation system and receives the outputs of the system. For CTC inputs are things like raw materials and supporting goods for the production process outputs are for example cigarettes ready to be transported to the retailers.
1.3.2 QuIS data capturing
--- To be kept secret ---
1.3.3 Difficulties former quality information system
The following difficulties surrounding the former system were identified by CTC and the QuIS supplier together:
• There were difficulties in extracting quality information from the different quality information systems when needed. There was no integration of the systems and extracting information from the separate systems was time consuming.
• There was no online access to information. Data was not updated regularly, therefore the chance existed that information was not up to date.
• There were insufficient reporting facilities. The main cause of this was the lack of integration of systems. The reports available did not live up to the quality information needs of the stakeholders.
At CTC the need arose for upgrading the existing quality information system. The former quality information system was spread over seven different systems. These systems were not integrated. A project was started for the creation of a new quality information system. The overall objective of the project was to integrate, link, and redevelop these systems to be accessed through a single web based browser. The intention was to create a new system with one or few databases. This way more comprehensive reports could be generated in less time. After the identification of the problems with the former system the decision was made for the development of a new integrated quality information system. This system had to improve the methods of quality management information by finding more effective and efficient ways to process data.
The final aim of this project was to come to a fully integrated quality management system.
This system had to integrate quality related systems ranging from factory quality systems to research findings, with the possibility for improvements and expansions in the future. In addition to this the system had to be capable of generating reports on all captured quality information.
1.3.4 Description of the QuIS
--- To be kept secret ---
QuIS Technology
For the QuIS standard database technology and a Microsoft.NET platform is used as development environment. This ensures that the application complies with standard interface formats and is able to exploit future developments in Web service technology. The QuIS is a browser based solution that is accessible on-line across the organisation. This is important because the QuIS can be used for the creation of a complete picture of the quality information situation across the organisation.
The QuIS architecture comprises several components as shown in the diagram below. The thin client is the part of the system which facilitates user interaction with the system (on line and browser based). This interface is the part of the system users interact with. The interface lists and gives access to all the different functionalities of the QuIS.
A part of these components of the QuIS consists of an array of custom build components that enable interaction with the devices which capture quality information. The web server ensures that the thin client is connected to all other components whenever necessary. It connects the other parts of the system with each other as well. These components are several. First of all there is the database, which stores quality information. Secondly there is the mail server which is used for QuIS related communication. Thirdly there is the message queue server which is the part of the system that captures quality information from the quality information capturing systems and devices. The external systems capture online quality information from the production process, the external devices capture quality information externally from the production process. Below figure 3.1 gives an overview of this technical structure.
Figure 1.2: QuIS architecture (QuIS user manual, 2004)
1.4 Conclusion
Within this chapter first of all an introduction to the research has been given. This introduction is followed up by a description of CTC and the QuIS. This way a picture is created on what the research is about where it takes place and what the subject of the research is.
Thin Client
Web Server / Application
Server
Database
Message Queue Server Mail Server
External Devices.
External Systems
Chapter 2: Research set up
2.1 Reasons for the research
Below six general reasons for the research of the QuIS are outlined. Besides these reasons the scientific relevance is highlighted as well. Since the development of the QuIS was a large project which took a big investment, an important reason for the research request was the justification of this investment. Another reason for the research was to assess the quality information situation after the implementation of the QuIS.
Through the research the system can be analysed in order to identify improvement opportunities for the QuIS. When gaps in the functioning of the system are identified, steps can be undertaken to overcome these gaps.
The system has to be well equipped to be useful in the nearby and more distant future as well. Future developments and risks are relevant for the research because the system has to be effective on the longer term as well.
Another important reason for the research of the QuIS is that the research should take place because it is a requirement of the PRINCE 2 project methodology. This is the methodology used for the QuIS project. The Post Project Review is the final document that is to be delivered within this methodology. Since this research is evaluative the project can be officially closed when it has taken place.
Finally, the QuIS evaluative research can become a learning platform which can be used for future projects. The same ‘mistakes’ can be prevented and identification of the things that went well can be used for future project management.
All the reasons mentioned above lie within the line of the vision of ‘corporate excellence’ of CTC. They ensure that the quality information situation at CTC is assessed and will be improved to achieve higher quality in relation to CTC’s quality information situation.
Besides the reasons for the research which are in the interest of CTC the research has scientific relevance as well. It contributes because it gives an example of an evaluation of an information system which is based on scientific research. When in the future a similar research takes place this research can serve as example or platform.
2.2 Problem analysis
The problem analysis elaborated on within this paragraph is mainly structured using the problem analysis methodology of de Leeuw (2000). A problem owner analysis creates a clear picture of problem owners, their problems and the relations in between (de Leeuw, 2000:
256). Within the analysis a problem is viewed as the difference between the current situation and the desired situation, perceived by a problem owner.” (De Leeuw, 2000:256) This analysis is performed to come to a good research set up.
The persons interviewed for the problem analysis where able to give insight into the more general and specific problem areas related to the QuIS. The interviews with the production operation manager and the project assurance function gave a clear view of the general QuIS problems. The interviews with the QuIS project Business Lead, Project Manager and IT- executive where also useful for giving more detailed insight into QuIS related problems.
The problems in the problem analysis are clustered as much as possible within groups of problems which show similarities.
Within the problem analysis each problem is mentioned together with its problem owner(s), a description and the impact of the problem. Problem owners are mentioned for the problems as well.
The complete problem owner analysis can be viewed in appendix 2.
By assessing the problem analysis there can be stated that the QuIS is not functioning excellently yet (conform the corporate excellence desire of CTC). The problems of the analysis lead to the QuIS not functioning excellently. The evaluation of the QuIS can lead to improvements in order to achieve better functioning.
For the problem analysis a division can be made between instrumental and functional problems. Instrumental problems pronounce on the causes of a problem. A functional problem is formed when interpreted by its environment as not desired outcome, and it is linked to the instrumental problem as a result (de Leeuw, 2000: 288) The QuIS system not functioning excellently, can be seen as the central functional problem. This problem leads to
the QuIS not being effective. This because the primary goal of the QuIS should be functioning conform its set goals and specifications. The problems of the problem analysis all lead to this main functional problem and are therefore instrumental. Below the problem groups of the problem analysis are discussed. Some of the problems the main stakeholders are indicated.
This is done because these problems are mainly owned by these stakeholders.
QuIS Supplier related problems
Within the problem analysis several problems have been identified relating to the supplier of the QuIS:
• lack of know-how at the supplier
• functioning of third layer QuIS support
• rigidity of the supplier
• lack of supplier expertise in the industry
• lack of cooperation of quality tool suppliers
It is important that the problems within this group will be improved on for good external QuIS support and good functioning of the supplier when QuIS developments take place. Attention is already being paid to the problems within this groups but mainly third layer QuIS support (problems which can not be solved by CTC’s support staff and need to be solved by the QuIS supplier), needs attention. The reason for this is that the supplier does not solve QuIS problems it should solve effectively. Problems which are difficult to solve for the supplier are not being solved fast and the communication on problems is not effective either.
QuIS failures (support staff)
This problem group is mainly owned by the QuIS support staff. This staff is responsible for solving the different QuIS failures occurring. Within the problem analysis three problems causing QuIS failures have been identified. The problems within this group are:
• complete system failures (most severe)
• online data problems (severe)
• interaction between the QuIS and measurement tools (less severe)
The problems mentioned above contribute to lower effectiveness of the QuIS. For this reason it is important that these problems are addressed.
User related issues
These issues are mainly experienced by the QuIS users. For this reason they are the main problem owner of this group. The following soft issues are identified:
• lack of computer knowledge
• user lack of QuIS information insertion
• user resistance to change
• low user support users when QuIS fails
These problems need a high priority in solving because the users of the system are the ones who are critical for QuIS success. They insert an important part of the information into the QuIS and they also extract the relevant Quality information out of the QuIS. When the users are not satisfied many other problems can arise.
Other problems
Since these problems are several of nature there is not one stakeholder group which is most important. These problems are the remaining ones in the problem analysis. The other problems are:
• limited number of QuIS experts
• lack of proper documentation structure
• BAT prescriptions changes
• QuIS being slow
• budgetary problems
These problems lead to lower QuIS performance. Therefore it is important that they are taken into account within this research.
2.3 Problem statement
The problem statement elaborated on below is based on the problem analysis of the previous paragraph. Within the problem statement first of all the goal of the research will be formulated because research is always done with a certain goal. This goal together with information gathered and the ideas already there on the causes of the problems forms the bases for the main research question (Baarda & de Goede, 1997: 18). Hereafter several partial questions which structure the research are given and followed up by the restrictions of the research.
Finally a research model is given which represents the structure of this research.
Research goal
Stated briefly, the research goal points out the ‘why’ of the research. With the goal of the research the relevance of the research is indicated. It is made clear what the ‘main point’ of the research is and why it is important to conduct the research. It points out for who the research results are relevant as well (Baarda & de Goede, 1997: 37). The following research goal is constructed:
“To give an evaluation of the Quality Information System of the Ceylon Tobacco Company, in order to come to recommendations for improvement of the system.”
This goal is the reason why this research is requested by CTC. The evaluation mainly finds its use in describing the current quality information situation, and more importantly it helps with the identification of improvement opportunities. These can help to improve the overall quality information situation at CTC.
Research question
When conducting a research it is about gathering information in order to answer a question (Baarda & de Goede, 39). This is the main problem statement of this research. At the problem statement it is all about the question ‘what’ you want to know (Baarda & de Goede, 1997: 19). For this research the following research question is constructed:
“To what extent is the Quality Information System of the Ceylon Tobacco Company effective and how can the system be improved?”
The QuIS is the main point of interest of this research. It is the quality information system that needs to be analysed and improved. This can be done by reviewing the effectiveness of the system; the assessment of the attainment of the set goals for the system. It is a review of whether the system does what it is supposed to do as well. Within this research effectiveness the extent to which goals are accomplished (Prahinsky et. al., 2004).
The less effective parts are used as input for the improvement chapter. Like stated above, here the parts which can be improved are summarised and improvement suggestions are given.
An important note is that besides the effectiveness, efficiency is important as well. Efficiency is a measure of how well resources are utilized (Prahinsky et. al., 2004). An important QuIS requirement is that the system functions properly using a minimum of resources. For this reason efficiency can be seen as a part of the effectiveness. Improvement opportunities are relevant, as mentioned above, because they can help to improve the overall quality
information situation at CTC.
Partial questions
Within this research several partial questions are set up in order to structure the research.
The following partial questions are used to perform the research:
• Which QuIS stakeholders influence the effectiveness of the QuIS?
• To what extent is the QuIS effective?
• How can the Quality Information System be improved?
The partial questions for the research mentioned above are divided into three parts. These parts are a descriptive part, an analysing part and a design part. The first partial question is
mainly descriptive, the second partial question is mainly analysing and the third partial question is mainly designing.
Restrictions of the research
The scope of the research is elaborated on within the research model. This part of the problem statement gives the restrictions for the research.
Product restrictions: For CTC the product needs to be an evaluation of the QuIS which makes sure the QuIS is evaluated, the problems are identified and improvement opportunities are given.
Process restrictions: The research at CTC must be performed starting may 30 and ending august 5th 2005. The thesis written on the research can be written externally from CTC after this period.
2.4 Research model
The research model highlighted below gives the structure of this research. De Leeuw distinguishes diagnoses, design, and change for the problem solving process (de Leeuw, 2000: 291). This is more or less in line with the design of this research.
Figure 2.1: The designing process (de Leeuw)
De Leeuw states that within the diagnoses part possible causes for problems are identified.
This way a solution method for problems can be identified (de Leeuw, 2000: 291). In this research, the design is split up in a descriptive and an analyzing part. The description of CTC, the description of the QuIS and problem statement are mainly descriptive. The first chapter on the main QuIS stakeholders is descriptive as well. Stakeholders are the ones who have interest in the functioning of an organization (de Leeuw, 2000: 30), and in this case the QuIS.
Therefore besides QuIS users, the QuIS supplier and the QuIS support staff CTC as an organization is an important stakeholder as well. In the problem statement the way the QuIS analysed is elaborated on.
The diagnoses will become more analysing in the chapter which is on the components of the factors that influence the effectiveness of the QuIS. This chapter holds the QuIS user, support staff, supplier and risk analysis. Besides these analyses the problem analysis is analyzing as well. In the problem analysis, QuIS users, supplier and support staff are identified as the most important QuIS stakeholders. The main goal of these analyses is determining QuIS
effectiveness.
The second part of the model of de Leeuw is on ‘designing’ solutions for the main problem of a research. It is a design of the diagnosed problem to a concrete solution. This can be seen as a human activity system that transforms a problem into solutions (de Leeuw, 297). The part on the improvement opportunities is mainly designing of nature. This part shows areas which can be improved on. Improvement suggestions for these areas are given as well. The input for this part is the areas identified to be less effective by the different analyses of this research.
The final part of de Leeuw’s model is on changing the current situation. This part of the model designs solutions which can be implemented. It is the transformation of a design into a concrete system (de Leeuw, 2000: 298). Within this research the focus will not be on this part of the model. A design for improvement will be given but the implementation of this design will not be described or assessed. Below the specific analyses are discussed more in depth:
User analysis
The QuIS user analysis is the first analysis of this research. Within this analysis the perceptions of users are used to identify the effectiveness of the QuIS. This is done by the rating of seven factors which provide a comprehensive image of the QuIS effectiveness. This analysis is rated by both users on the management level and users on the executing level.
Supplier and supports staff analysis
Besides the QuIS users there are two other important QuIS stakeholders. These are the QuIS supplier (who developed the QuIS and delivers some support) and the QuIS support staff. In the supplier analysis the effectiveness of CTC’s relation with the supplier is analysed. This is done with the help of CTC’s QuIS supplier experts.
The support staff analysis is on the effectiveness of the support staff rated by QuIS users and on how effective the support staff perceives their means to support the QuIS.
Problem and risks analysis
The problem analysis is used to explore the QuIS related problem situation. The problem statement is for a large part based on these analyses. The risk analysis assess potential future QuIS related problems and difficulties. Therefore the risk analysis is an extension of the problem analysis.
Figure 2.2: Research model
2.5 Methodology of the research
The analyses of this research are based on scientific methodology. Below the methodology of the analysis is briefly elaborated on.
User analysis
The QuIS user analysis is performed to generate an overview picture of QuIS effectiveness.
This is done with the help of a questionnaire. This type of questionnaire is elaborated on within different scientific sources but the method of Miller et. al. (1987) is used within the user analysis. This approach gives a useful format for a questionnaire and dimensions into which the questionnaire attributes can be grouped. The importance – performance matrix of Slack (2001) is used to interpret the results of the QuIS user analysis. This matrix is used to identify improvement priorities for the QuIS. These priorities are elaborated on within the final improvement chapter.
QuIS supplier and support staff analysis
These two analyses are performed to extend on the QuIS user analysis. Besides the QuIS users, the QuIS supplier and support staff are important QuIS stakeholders. The
effectiveness of these two stakeholder groups are determined using questionnaires and evaluative meetings. The questionnaires are rated on performance. These two analyses serve, like the user analysis, as input for the QuIS improvement chapter.
Problem and risk analysis
The QuIS problem analysis is structured by the method of the problem owner analysis of de Leeuw (2000). Like stated within before, this analysis provides a platform for the problem statement and the analysis of the research.
For the risk analysis Cadle & Yeates (2001) risk management methodology is used. This methodology is used to identify and assess current risks. Further the advice for future risk management is given.
Improvement opportunities
The chapter of improvement opportunities uses the outputs of the analysis of this research as input. The areas identified to be less effective are described, and improvement suggestions are given for these areas. The type of change needed for the QuIS is identified by Tidd’s et.
al. (2001) typology of change.
2.6 Validity and Reliability
The validity of a research is that there is being measured, what is planned to be measured (Baarda & de Goede, 1997: 165). Within this research this is ensured by the application of several data gathering methods. These methods are the use of existing documentation, interviews and questionnaires. These different methods can be used to cross check if the findings of the methods are in line with each other.
A research is reliable when it is less dependent on coincidences (Baarda & de Goede, 1997:
163). This has been ensured within this research by the use of documentation ensured to be relevant for the QuIS. The interviews have been prepared thoroughly and been taken in environments where participants could concentrate on the questions. The questionnaires are based as much as possible on scales extracted from scientific studies. Further the
introduction and lay out of the questionnaires have been constructed to be straightforward.
2.7 Conclusion
Within this chapter a foundation is created for the rest of the research. First of all problems surrounding the QuIS are identified. This has been done with the use of a problem analysis.
Using this problem analysis and the description of CTC and the QuIS an input for the problem statement is created. This statement holds the goal and research questions of this research.
The way the research is going to be conducted is elaborated on within the research model.
Finally the method of research and the research validity and reliability have been elaborated on.
