System of Profound Knowledge Fundamentals of Total Quality Leadership Module 3 System of Profound Knowledge Lesson 1 Systems

At the end of this lesson the student will be able to: Learning Objectives At the end of this lesson the student will be able to: Define system Explain the relationship among systems, subsystems and processes Identify elements of an extended system Explain the concepts of optimization/suboptimization Explain the importance of viewing an organization as a system Explain the importance of measures in the extended system 2

DON Approach to Quality Management System of Profound Knowledge Systems Psychology Variation Knowledge System of Profound Knowledge 14 Points PDCA & Tools

What is a System? Collection of interacting parts functioning as a whole Collection of subsystems that support the larger system Collection of processes oriented toward a common goal The organization as a system 5

Systems and Subsystems for Defense y n Army Marines Air Force Navy

Organization as an Extended System Consumer Research Design and redesign Suppliers of materials and equipment A B C D Consumers Receipt and test of materials Distribution Production, assembly, inspection Test of processes, machines, methods (Deming, 1986) 6

Optimization of the Organization Occurs when the aims of the subsystems or parts support the aims of the organization May result in a delayed effect Must be managed 7

Suboptimization of the Organization Occurs when the aims of the subsystems or parts do not support the aims of the organization Occurs when management fails to lead the organization as a system 8

Conditions Leading to Suboptimization A lack of organizational aims Improper recognition of people Ineffective organizational design 9

Ways of Viewing the Organization Organization as a Black Box Bits and Pieces of Knowledge Ways of Viewing the Organization

The Organization as a System, Subsystems, and Processes Yes No The Organization as a System, Subsystems, and Processes

Extending Outside the Organization P L I E R END

Stakeholders of the Extended System End-user Suppliers Long-term feedback Feedback Yes No Environment Internal

Measures in the Extended System Processes Inputs Outputs Outcomes Product or service End-user Supplier Measures in the Extended System Machines Methods Material People Environment

Extended System Example BUPERS Pubs/Forms Ctr Supply Center Legal Post Office Message Center MWR DFAS ISIC Employees Admin Travel Transportation Customer Svc Disbursing COs of Cmds serviced Active Duty Retired pers DON Civs Dependents UAs Deserters Suppliers Internal End-users Environment Host base, local community, DOD Congress, DON, OSHA, EPA, BRAC Personnel Support Detachment (PSD)

Measurements in the Extended System Outputs Outcomes Processes Inputs BUPERS Pubs/Forms Ctr Supply Center Legal Post Office Message Center MWR DFAS ISIC Employees Admin Travel Transportation Customer Svc Disbursing COs of Cmds serviced Active Duty Retired pers DON Civs Dependents UAs Deserters Timely service Accurate pay Accurate prsnl svcs Accurate travel svcs Flexible transport’n Responsive to needs Courteous service Correct check issued on time Correct direct deposit by payday Accurate processing of SDS changes Corrections to ECCO system w/in 3 days Change info fm svc mbr Docs fm svc mbr DK training Computer access Suppliers Internal End-users

Lesson Summary It is important for managers to view the organization as a system Everyone must work toward the aims of the organization to avoid suboptimization Boundaries of a system extend beyond the organization itself (customers, suppliers) 21