Maintenance Technology September 2016 - 85
24
Now is a good time to look at several critical
issues that must be addressed to make it easier
for people to work together.
At the highest level, the organizational structure
must be aligned to:
1. The business strategy.
2. The production process, or in some cases,
the supply chain.
3. The skills of the staff running each element
in the structure.
No organizational
structure is perfect,
and compromises
must be made to
optimize the overall
organization.
Here are several examples of how to align the
organizational structure to the three principles
listed above:
Structure Aligns to Strategy. Cash is critical in
running a business, especially a growing one. A
small company that has very little cash to support
hiring sales staff still needs to expand its business.
Rather than slow down growth, the company could
develop a network of distributors and reps as their
sales force with company regional managers to
manage this network. Cash flow demands would
be less since they don't pay the distributors until
products are paid for and shipped. Hiring all the
sales force typically results in a much larger drain
on cash.
Structure Aligns to the Production Process.
It's unwise to organize by functionality with
production supervisors being held accountable
for production in multiple areas. This spreads
supervisors too thin, which can result in each
area's performance deteriorating due to the
supervisors spending far too much time traveling
between sites and not being able to adequately
train and develop individual employees or to
properly address issues and problems within a
given area. The organizational structure should
be changed so each supervisor is accountable for
one area. This also goes to the issue of having a
single point of accountability for a given process.
Structure Aligns to Staff Skills. This is almost
self-evident. As Jim Collins suggests in his book
Good to Great, you get the right people (with
the right skills) on board first then develop your
strategy. To this end, it's also important to build
the organization around its people to support
the overall strategy. This ensures the set goals
and objectives are attainable since you keep in
mind the capabilities of the team at all times
during planning.
Structure must also consider the following issues:
1. The span of control for a given manager in
a business situation. A reasonable span of
control for effectively supervising people
is on the order of five to seven. Even with
that number of people you're more likely to
spend most of your time with two to three.
2. Geographical locations of the business units,
management teams and interfaces. Having
people spread across different plants, office
buildings, states or even countries can make
it more difficult to manage and support their
efforts. Travel time and differing time zones
create difficulties in scheduling and planning.
You lose a lot of time traveling and the
processes are different, adding complexity
to the managerial job. If you're faced with
the task of automating teams across several
different locations, work to uncover the
similarities between them. This may decrease
the complexity of your tasks.
SOLUTIONS AUGUST 2016
10127-4056 SMRP Solutions SE.indd 24
8/22/16 9:43 AM
Table of Contents for the Digital Edition of Maintenance Technology September 2016
Editorial
Uptime
On The Floor
Old-School Approach To New-World Technology
Art Meets Reliability Science
Commit To Safety
Robot-Human Interaction Getting Safer
Sanitary, Stainless Conveyors Not The Same
Reduce Hidden Process-Safety Costs
Pace Your Reliability Program
Win The War With 'Lubrication By Design'
SAP Tips And Tricks
Understand Pump Vibration
Select The Right Relay
Bearing Care
Clear Up HOA Confusion
Potato Waste Becomes Clean Water, Energy
Products
Showcase
Ad Index
Final Thought
Maintenance Technology September 2016 - 1
Maintenance Technology September 2016 - Cover1
Maintenance Technology September 2016 - Cover2
Maintenance Technology September 2016 - 1
Maintenance Technology September 2016 - 2
Maintenance Technology September 2016 - 3
Maintenance Technology September 2016 - Editorial
Maintenance Technology September 2016 - 5
Maintenance Technology September 2016 - Uptime
Maintenance Technology September 2016 - 7
Maintenance Technology September 2016 - On The Floor
Maintenance Technology September 2016 - 9
Maintenance Technology September 2016 - Old-School Approach To New-World Technology
Maintenance Technology September 2016 - 11
Maintenance Technology September 2016 - 12
Maintenance Technology September 2016 - 13
Maintenance Technology September 2016 - 14
Maintenance Technology September 2016 - 15
Maintenance Technology September 2016 - Art Meets Reliability Science
Maintenance Technology September 2016 - 17
Maintenance Technology September 2016 - 18
Maintenance Technology September 2016 - 19
Maintenance Technology September 2016 - Commit To Safety
Maintenance Technology September 2016 - 21
Maintenance Technology September 2016 - 22
Maintenance Technology September 2016 - 23
Maintenance Technology September 2016 - Robot-Human Interaction Getting Safer
Maintenance Technology September 2016 - 25
Maintenance Technology September 2016 - Sanitary, Stainless Conveyors Not The Same
Maintenance Technology September 2016 - 27
Maintenance Technology September 2016 - 28
Maintenance Technology September 2016 - Reduce Hidden Process-Safety Costs
Maintenance Technology September 2016 - 30
Maintenance Technology September 2016 - Pace Your Reliability Program
Maintenance Technology September 2016 - 32
Maintenance Technology September 2016 - 33
Maintenance Technology September 2016 - 34
Maintenance Technology September 2016 - 35
Maintenance Technology September 2016 - Win The War With 'Lubrication By Design'
Maintenance Technology September 2016 - 37
Maintenance Technology September 2016 - 38
Maintenance Technology September 2016 - SAP Tips And Tricks
Maintenance Technology September 2016 - Understand Pump Vibration
Maintenance Technology September 2016 - Select The Right Relay
Maintenance Technology September 2016 - Bearing Care
Maintenance Technology September 2016 - 43
Maintenance Technology September 2016 - Clear Up HOA Confusion
Maintenance Technology September 2016 - Potato Waste Becomes Clean Water, Energy
Maintenance Technology September 2016 - 46
Maintenance Technology September 2016 - 47
Maintenance Technology September 2016 - 48
Maintenance Technology September 2016 - 49
Maintenance Technology September 2016 - 50
Maintenance Technology September 2016 - 51
Maintenance Technology September 2016 - 52
Maintenance Technology September 2016 - Showcase
Maintenance Technology September 2016 - Ad Index
Maintenance Technology September 2016 - 55
Maintenance Technology September 2016 - Final Thought
Maintenance Technology September 2016 - Cover3
Maintenance Technology September 2016 - Cover4
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