The study, which had started as a systems study of CSD without specific terms of reference, now became focused on helping the organization bring about a major structural change. In this chapter, we will review the research methodology and 3Es – efficacy, efficiency, and effectiveness by which “Transformation” would be judged. Once the proposal has submitted to management, the evaluation of efficacy, efficiency and effectiveness will be the important reference for management making their decision of investment and implementation.
4.1 Major Outcome of Seven Stages
First, we will review the research methodology in this chapter which is the seven-stage development. We have a quick summary of the major outcome and summary of each stage in chapter three in Table 18. This table will be the guideline during the case study process of using soft systems methodology for future projects. Although we have no way to measure the benefit and result before implement all the activities and systems, there is one thing we are sure through the system thinking processes that SSM is a methodology to lead the project owners to think the problem through before we take any action.
Table 18: The Major Outcome and Summary of Seven Stages
Stage Major Outcome and Summary
1 Real world situation
Know the case background and key roles in the organization
Record the real world situation by unstructured interviews with the key persons
Current major unsolved problems in the organization were described and written
2 Problem
situation expressed
Did the analysis to identify the clients, possible problem owners, role of problem solver, and organization form
Have come out with the “Rich Picture” which was structured the reverse logistics activities and processes and the connection of the issues
The problem situation has been categorized to eight areas and described the issues in detail
3 Root Definition of relevant activity system
Come out with the root definition and CATWOE of this case
Developed four service information and control systems which were designed and owned by CSD new organization in order to deal with uncertain and unstructured daily operation issues
Developed the relevant system: sub-modules for four main modules (order fulfillment, material, quality, cost control), related information, key performance index for CSD operation management
Developed the new organization based on the defined main function and KPI of CSD
Listed down the major activities in model which is possible to implement in final and use the models as sources of questions about the real world
Analyzed the real world situation and limitation and used a matrix to structure process and come out with the comparison and gap
The possible changes derived from comparison and generated ideas for change – “What CSD Can Do”
Have come out with the analysis of systematically desirable and culturally feasible
Agreed on desirable and feasible change
Listed the possible actions for CSD to schedule implement stages
Planed three phases of implementation plan based on previous stages’ conclusion
There are two main types of change: structural change for organization and management and - procedural change for process reengineering in order to come out with the information and control system
The proposal will submit to management for the approval
4.2 Evaluation of Efficacy, Efficiency and Effectiveness
Any conversion of input to output would be judged successful or not on three different counts (Forbes and Checkland, 1987). Efficacy, a first dimension checks whether the means chosen actually works in producing the output. Efficiency, a second then considers whether the transformation is being carried out with a minimum use of resources. Effectiveness, finally, a transformation which works and uses minimum resources might still be regarded as unsuccessful if it were not achieving the longer term aim. We may remark that the ‘3Es’ for judging the in-principle performance of a human activity system cover only the most basic idea of transformation. Therefore, in the beginning of this study, we have decided what the criteria would be for the efficacy, efficiency and effectiveness of the system modeled. Actually, this adds a useful richness to the comparison between the model and perception of the real world. In Figure 12, “The format root definition and model of the EROS concept, we have a simple definition of 3Es. Efficacy - four control systems work; Efficiency – outcome / resource use; Effectiveness – new organization is sustainable. However, the real situation is not so easy to be described, the reason we put the completed 3Es analysis in the summary is that we would like to review the whole system and ensure the result can be estimated.
The simple question for the first criteria “efficacy” is “does the means work?” The question of second criteria “efficiency” is “are minimum resources used?” And final question of the third criteria “effectiveness” is “does the transformation helps the attainment of longer term goals related to output’s expectations?” We needs go back to our original eight problem categories and thirty-three sub-issues before answer this question in Table 9 and the detailed issue of each item in Figure 10. Although we have put one related system for each sub-issue in Table 9, we need to review if the issues really can be solved and controlled and the reason.
Therefore, in Table 19, we have a completed evaluation of third-three sub-issues for 3Es.
E1: Efficacy (Check the transformation is workable or not workable)
E2: Efficiency (Check if the output > input)
E3: Effectiveness (Check if the transformation help the attainment of longer term goals)
Table 19: Evaluation of Efficacy, Efficiency and Effectiveness Transformation 3E Evaluation for sub-issue
Work in Long-Term Work in Short-Term Not Workable Organization
- SQE reuse standard - Failure analysis
From Table 19 the evaluation of 3Es, the conclusion is that most of the current problems can be controlled or solved after the implementation actions have been taken because the problems are rather related to CSD. However, there are few issues cannot be completed solved because they are related to the customers or suppliers. In short, current four information and control modules and the new organization and management will help CSD to develop the fundamental and necessary systems, after that, the further actions to influence customer and supplier to deal with service strategy, 7-year support, screen center, material T&C, E&O, etc are this research needs to be followed up.
0%
2. Return behavior and return policy
3. Return forecast and logistic
4. Service model and cost management 5. Material purchasing and
supplier management 6. Stock management and E&O
7. Rework process and material reuse
8. Repair efficiency and material attrition
3E Evaluation
Figure 17: 3Es Evaluation
From 3Es evaluation in Figure 7, the problem category 4, 7 and 8 can be completely solved by our suggestion solution. However, there is no proper means to deal with the real world situation of problems which are related to the contract restriction, material purchasing and supplier management, E&O, etc. Although those areas cannot be completely solved by four modules of information and control system with new organization and management, as we can observe from Figure 7 that those problems can be solved from 50% to 70% from overall problem situation. We believe the improvement will have the notable contribution to CSD as well.
In this chapter, we have summarized our finding and major outcome from seven-stage SSM processes. The result from this chapter is very good positive although we cannot solve all the recent issues in CSD due to the customer contract, supplier T&C and forecast accuracy issues.
The research result has been submitted to management and up to now there are some suggestions have been taken. Although we are unable to know the final result after implementation currently, this research will continue to monitor the result of the implementation and retrospect the final benefit of this research in future. In next chapter, we will have a conclusion of this research and provide some suggestions for the future research.