Design of a Conceptual Model for Improving Company Performance Based on Lean Management Applying the Viable System Model (VSM)

2018 ◽  
Vol 2 (2) ◽  
pp. 49-63 ◽  
Author(s):  
Sergio Gallego García ◽  
Rayco Rodríguez Reyes ◽  
Manuel García García

Abstract Designing, changing and adapting organizations to secure viability is challenging for companies. Researchers often fail to holistically design or transform organizations. Thus, the aim of this study is to propose a holistic approach how organizations can be designed, changed or managed considering also its implications to production management following lean management principles. Hereby the Viable System Model was applied. This structure can be applied to any kind of structured organization and for its management with goals to be achieved in modern society; however focus of the research is the cluster of manufacturing and assembly companies. Goal of the developed organizational model is to be able to react to all potential company environments by taking decisions regarding organization and production management functions correctly and in the right moment based on the needed information. To ensure this, standardized communication channels were defined. In conclusion this proposed approach enables companies to have internal mechanisms to secure viability and also in production to reduce necessary stocks, lead times, manpower allocation and leads to an increase of the service level to the final customer.

2018 ◽  
Vol 4 (3) ◽  
pp. 7-21
Author(s):  
Rayco Rodríguez Reyes ◽  
Sergio Gallego García ◽  
Manuel García García

Abstract Designing and adapting organizations to secure viability and increase performance is a challenge. Research models often fail to integrate corporate social responsibility (CSR) aspects in the concept development and its implementation. Therefore, the aim of this study is to propose a holistic approach how organizations can be designed, changed and managed considering its implications to service management under a CSR approach. Hereby the Viable System Model was applied. Its structure can be applied to any kind of structured organization and for its management with goals to be achieved in modern society; however focus of the research is the cluster of charity organizations. Goal of the developed model is to be able to react to all potential organizational environments by taking decisions correctly and in the right moment based on the needed information reducing service lead times and manpower allocation as well as increasing the service level. To ensure this, service management tasks were assigned and standardized communication channels were defined. In conclusion this proposed approach empowers organizations to have internal mechanisms to secure viability by pursuing the goal of a high performance CSR approach.


Materials ◽  
2018 ◽  
Vol 11 (8) ◽  
pp. 1346 ◽  
Author(s):  
Sergio Gallego García ◽  
Manuel García García

Designing, changing and adapting organizations to secure viability is challenging for manufacturing companies. Researchers often fail to holistically design or transform production systems. Reasons are often the conflict of interests between production and maintenance, the temporal divergence of their activities and their organizational structure. Thus, the aim of this study is to propose a holistic approach of how production and maintenance can be designed, changed or managed. Hereby, the Viable System Model was applied. This structure can be applied to any kind of structured organization and for its management with goals to be achieved in modern society; however, focus of the research is the coordination of production and maintenance management. The goal of the developed model is to be able to react to some potential production environments by taking coordinated decisions correctly and in the right moment based on the needed information. To ensure this, standardized communication channels were defined. In conclusion, this proposed approach enables production systems to have internal mechanisms to secure viability depending on all potential environment scenarios.


Kybernetes ◽  
2015 ◽  
Vol 44 (6/7) ◽  
pp. 970-983 ◽  
Author(s):  
Benjamin Sagalovsky

Purpose – The purpose of this paper is to address the organizational implications of transformative Lean Deployment initiatives, leveraging the Viable System Model to understand what is needed organizationally so these initiatives can succeed and take root. Design/methodology/approach – The paper starts by pointing out how Lean practices presuppose and demand empowered, autonomous organizational units at all levels. It then highlights how Lean manages the resulting Recursive Organization of “autonomous units within autonomous units” through powerful cohesion mechanisms addressing the negotiation of goals and resources, unit-to-unit coordination and process monitoring – with tools such as Pull, Kanban, Hoshin Kanri, A3 and the Toyota Kata, supported by operational practices such as Visual Controls, Standard Work, etc. Findings – The Viable System Model was found to provide a valuable guide for articulating the organizational underpinnings of Lean deployments, including the effective, recursive distribution of deployment responsibility and authority at all levels, the identification of the right composition and reporting structure of implementation teams, and the role to be attributed to support organizations. Originality/value – The approach provides a framework for understanding the organizational implications and possible resistance to comprehensive Lean deployments, and for appropriately including the all-important organizational dimension in order to promote the success of these deployments. It is also hoped that the paper can contribute to a more holistic, integrative understanding of what it means for an organization to embark on its Lean journey.


2019 ◽  
Vol 9 (24) ◽  
pp. 5567 ◽  
Author(s):  
Sergio Gallego-García ◽  
Jan Reschke ◽  
Manuel García-García

Matching supply capacity and customer demand is challenging for companies. Practitioners often fail due to a lack of information or delays in the decision-making process. Moreover, researchers fail to holistically consider demand patterns and their dynamics over time. Thus, the aim of this study is to propose a holistic approach for manufacturing organizations to change or manage their capacity. The viable system model was applied in this study. The focus of the research is the clustering of manufacturing and assembly companies. The goal of the developed capacity management model is to be able to react to all potential demand scenarios by making decisions regarding labor and correct investments and in the right moment based on the needed information. To ensure this, demand data series are analyzed enabling autonomous decision-making. In conclusion, the proposed approach enables companies to have internal mechanisms to increase their adaptability and reactivity to customer demands. In order to prove the conceptual model, a simulation of an automotive plant case study was performed, comparing it to classical approaches.


Systems ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 19
Author(s):  
Mahdi Boucetta ◽  
Niamat Ullah Ibne Hossain ◽  
Raed Jaradat ◽  
Charles Keating ◽  
Siham Tazzit ◽  
...  

Exponential technological-based growth in industrialization and urbanization, and the ease of mobility that modern motorization offers have significantly transformed social structures and living standards. As a result, electric vehicles (EVs) have gained widespread popularity as a mode of sustainable transport. The increasing demand for of electric vehicles (EVs) has reduced the some of the environmental issues and urban space requirements for parking and road usage. The current body of EV literature is replete with different optimization and empirical approaches pertaining to the design and analysis of the EV ecosystem; however, probing the EV ecosystem from a management perspective has not been analyzed. To address this gap, this paper develops a systems-based framework to offer rigorous design and analysis of the EV ecosystem, with a focus on charging station location problems. The study framework includes: (1) examination of the EV charging station location problem through the lens of a systems perspective; (2) a systems view of EV ecosystem structure; and (3) development of a reference model for EV charging stations by adopting the viable system model. The paper concludes with the methodological implications and utility of the reference model to offer managerial insights for practitioners and stakeholders.


Kybernetes ◽  
2011 ◽  
Vol 40 (3/4) ◽  
pp. 369-393 ◽  
Author(s):  
William F. Christopher

PurposeThe purpose of this paper is to explain how the system science and cybernetics in Stafford Beer's viable system model (VSM) will help management structure and manage their company to achieve on‐going success in a fast‐changing world.Design/methodology/approachThe author worked with Stafford Beer in the 1970s, applying his VSM in the corporation he then worked for and has used the VSM ideas in work with companies in 16 countries, always with success. The VSM instructs in how to structure and how to manage. For what to manage the author used Peter Drucker's key performance areas, and has more than 50 years of experience working in these areas.FindingsThe author has found, during his long career in industry and in consulting, that the VSM is the best available guide for structuring and managing a business enterprise for success in turbulent times.Practical implicationsIn the 1950s, Ralph Cordiner “decentralized” General Electric into 120 businesses, pioneering a new, better way to structure and manage a corporation. After 50 years, we have the next revolutionary advance in management, the system science and cybernetics in Stafford's VSM. The VSM includes information and environments in structure, enabling companies to change as appropriate for achieving on‐going success in a world of huge and fast‐growing variety.Originality/valueThe paper shows how a simple form of the VSM includes all the system science company management needs to structure and manage their company for enduring success in fast‐changing times.


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