ANALYSIS OF ORGANISATIONS

METHODS
Functional
Divides organisation into its different functions. Puts functions into seperate boxes so that cross functional activities could get missed.

Systemic
Divides organisation into systems. Overcomes some of problems of functional analysis although tends to be a little artificial

FUNCTIONAL ANALYSIS
Corporate

Marketing

Production

Financial

Purchasing

Sales

Advertising Design

Safety

Treasury

Accounting

CORPORATE TREE
Holding Co.

Building Owner
Lessor

Liquor Distiller Caretaking

Insurance Company

Computer Hirer

Financial advice

Insurance Broker

Investment adviser

Beer brewer

Wine Whiskey importer maker

SYSTEMS THEORY
Systems theory deals with messy and difficult problems like organisational change. A system is an assembly of components connected together in an organised way. The components are affected by being in the system and the behaviour of the system is changed if they leave it. This original assembly of components does something. This assembly has been defined as being of particular interest.

SYSTEMS BEHAVIOUR
The system carries out a physical process which is related to its aims. Communicates information by a variety of means. Systems control their activities by monitoring both their own internal situations and relevant environmental influences.

INPUT-OUTPUT DIAGRAM HEALTH CLUB

INPUT OUTPUT FIT CLIENTS CLIENTS PROFITS AEROBIC INSTRUCTORS

INJURED CLIENTS
EQUIPMENT SWIMMING POOL ADMINISTRATORS MASSEURS WEIGHT TRAINERS MONEY TRAINED INSTRUCTORS

SYSTEMS DIAGRAMS

EXAMPLE OF A SYSTEM
TRANSPORTING

NUTRITIONAL FOOD PREPARATION

PHARMACEUTICAL
HOSPITAL DRUG CONTROL MEDICAL ADVIcE NURSING SURGERY DISPENSING

Electricity

GPs

Ambulance Services

Food Supply

Morgue

NUTRITIONAL FOOD PREPARATION HOSPITAL TRANSPORTING PHARMACEUTICAL Water Supply DISPENSING DRUG CONTROL

SURGERY MEDICAL ADVIcE NURSING

Water

FLOW CHARTS

FACTORY FLOW CHART

Raw Materials

Bagger

Finished Good stores

Mixer
Raw Materials

Bagger

Finished Good stores

Raw Materials

GYMNASIUM FLOW CHART

REJECT MEDICAL QUESTIONNAIRE OR MEDICAL FREEDOM OF USE

CLIENTS JOIN

OR

ACCEPT

COLLECT FEES RUNNING

NO QUESTIONNAIRE

TRAINING

OR

APPARATUS SWIMMING

FITNESS TESTING

AEROBICS CLASSES

METHODS OF ANALYSIS
Management by wandering about. Group analysis. Forms.

any questions ???

MANAGEMENT BY WALKING ABOUT MBWA

MBWA
Organise visit beforehand Plan where to visit in the situation Prepare a form to use to record visit Note all that is seen The form can be used for future visits or to ensure that work is carried out

SUGGESTED FORM
Site Date Age 2 yrs Purpose Faults Cut metal Guard not strips on machine Recommendations Arrange for machine shop to re-install guard

Place Item Band saw

PROS AND CONS

PROS
Greater visibility for risk manager Risk manager sees risk and understands it. People get to know risk manager

CONS
Expensive Does not take into account other peoples view of risk.

FORMS

METHOD
Prepare checklists and send it to someone at the plant or use it whilst visiting plant. The form must be clear and unambiguous. Various types of forms can be used. A pilot form may be sent to ensure that it is suitable.

SECURITY CHECK LIST

Please ensure that all the items mentioned on this list have been checked. When you are satisfied that all the items are satisfactory then sign the form and have it counter signed before returning to the risk management department.

Premises
Alarm systems Testing of alarms Keyholders All locks/bolts Roof External fencing and walls

Goods
Raw materials store Stock checks Finished goods area

Money Signed......................(Plant Manager) Date............. Counter-signed.....................................(Accountant)

LIABILITY CHECKLIST
Please read the descriptions provided for each of the following activities, events, etc., and indicate which description is most appropriate. The three descriptions are labelled A, B and C. If you think that description A is most appropriate in a particular case then place the letter A in the column headed Check here. Should you have any problems in completing this form then please contact the Risk Management Department. Return the form to the Risk Management Department by the end of the month having had it counter-signed

Activity

Check here

A SubStandard Guards are used only rarely and are often not even in working order

B Average Standard

C High Standard

Use of machine guards

Guards are in use Guards are always most of the time used and every and operational. guard is in excellent working order. Masks etc are used in most cases and access is reasonable. The usual safety signs are posted. All masks are issued to staff and are worn at all times.

Use of face masks and other breathing apparatus Safety notices and other accident prevention information.

The masks etc. are rarely used and not kept in an easily accessible place. Few safety signs are visible and many are out of date.

In addition to the normal signs there are a number of notices specific to the plant

FIRE CHECKLIST
This checklist is to be completed by the plant manager and returned to the Risk Management Department by the end of this current month. If any problems are encountered in completing the form please telephone the Risk Management Department for assistance. Where a negative answer is given please insert in the action column what action you are taking or what action you would suggest the Risk Management Department take.

Distribution Building Are all fire doors clear? Are all the emergency fire exit signs in working order? Is there at least 18ins from the sprinkler heads to the goods on the top rack? Are all goods stacked neatly? Is all heating equipment protected and in a safe place? Is all waste material removed regularly? Are all goods off the ground? Are all unused pallets stored in the yard outside? Is all combustible material stored in the brick built combustible store? Is the sprinkler test card marked up to date? Is the fire alarm test card marked up to date? ...........????? Are there any other points you wish to raise which are not catered for by the standard form? Are there any alterations you would suggest should be made to the form as it stands? Signed..............(Plant Manager) date of completion..........

Yes No

Action

ADVANTAGES AND DISADVANTAGES

Advantages
Forms prompt the memory so person completing it does not need to know about risk. Inexpensive. Simple. Rapid comparison with previous years. Adaptable.

Disadvantages
No direction is given about obtaining information about the risk. Could be inaccurately completed. Is completed subjectively which could lead to differing standards. There is difficulty in getting form completed. It is questionable whether answers are valid.

HAZOP
Hazard operability studies

METHOD
1. Select particular section of plant to be considered. 2. Define its intention. 3. Ascertain deviations from its intention. 4. List the causes of the deviation. 5. Detail the consequences of the deviations. 6. Decide what action to take.

FORM
GUIDE DEVIATIONS CAUSES CONSEQUENCES ACTIONS

GUIDE WORDS
Guide Words Meanings Comments This is the complete No part of the intention is achieved, i.e. there is no flow or no pressure. Nothing else negation of the No or Not happens, there is simply no part of the intention intention achieved. More Less There is an increase or a decrease in the quantity of the property There is a qualitative increase in the property There could be more flow than was the intention or less flow.

As well as

The design intentions are achieved but an additional activity occurs. e.g. water gets into the system and flows into the petrol tank of a vehicle

GUIDE WORDS
Guide Words Part of Meanings Comments Only some of the intention is achieved and There is a qualitative decrease some is not. This is not a quantitative decrease that would be less than but is a in the property decrease in the quality of the property.

The logical opposite An example of this could be where the flow is reversed or instead of boiling a liquid it is Reverse of the intention frozen. The complete substitution of the intention No part of the original intention is achieved and something entirely different takes place. For example some other liquid may be put in the tank and then flow down the pipe to the vehicle.

Other than

SECTION OF PLANT

Pump Valve V2

Nozzle

Tank Valve V1

Guide

Deviations

Causes

Consequences

Actions 1 Regular checking of tank. 2,4 Valves to be checked each day 3 Regular maintenance of the pump 1. Regular maintenance 1-3 As for no flow

No

No flow

1. Tank empty 1-5 No petrol gets 2. Inlet valve V1 is to vehicles shut 4 Petrol seeps out 3. Pump not of pipes working 5 Hose bursts 4. Other two valves shut 5. Hose blocked

More

More flow

1. Pump faulty 1. Pump faulty 2. Valves not fully open 3. Hose partly blocked

1. Spillage 1-3 Longer to fill tank in vehicle

Less

Less flow

ADVANTAGES AND DISADVANTAGES

Advantages
Identification of possible risks carried out in an extensive way. Little danger of anything being omitted. Examines each part in detail.

Disadvantages
Time. Expensive as a number of people are needed in the team. This method may lead to simplification of the system which could be dangerous.

GROUP ANALYSIS

GROUP ANALYSIS
Form a number of groups from the different systems to discuss the risks. These groups should be representative. These groups should be totally open and no ideas as to risks thrown out. A form should be prepared to record the scenarios talked about together with the evaluation.

FORM FOR RISK IDENTIFICATION

DATE
TEAM SYSTEM TASK GUIDE WORD RISK SCENARIO CONSEQUENCES ACTION FREQ SEV COST SYSTEM CODE

MEASURE OF FREQUENCY
5 4 3 2 1 Occurs once a day. Between once a day and once a week. Between once a week and once a month. Between once a month and once a year. Occurs less than once a year

Measure of severity
CODE AFFECT ON STRATEGY 5 Mission cannot be achieved 4 AFFECT ON PROPERTY Property is destroyed or damaged beyond repair Only half the mission Half the property is can be achieved destroyed or severely damaged Mission can be Property is severely achieved but with damaged but can still major delays be used AFFECT ON PERSONS Death may be caused

Major injuries inflicted which lead to persons being unable towork Injuries inflicted which can lead to people being off work for at least one year Mission not affected. Minor damage to Injuries to people which Delays but no loss property not in excesslead to one month off of business of 100,000 work No loss of business Minor damage less Minor injuries than 50,000

EXPECTED LOSS
Measure of frequency x measure of severity Frequency = 4 and Severity = 2 Expected loss = 4*2 = 8 Can prioritise in this way Cost of carrying out work not included

COST
COST 1 DESCRIPTION Cost less than 10,000

2
3 4 5

Cost between 10,000 and 50,000

Cost between 50,000 and 100,000 Cost between 100,000 and 500,000 Cost greater than 500,000

PRIORITISATION OF RISK
CODE (Frequency X Severity)/cost 551 434 333 25 3 3

235

1.15

RISK PRIORITY CHART

RISK CODE NUMBER OF SCENARIOS COST CUMULATIVE COST OF CONTROL CUMULATIVE NUMBER OF RISKS CONTROLLED 1 2

551 434

1 1

5,000 300,000

5,000 305,000

333

60,000 55,000
750,000

420,000

235

1,170,000

PROS AND CONS

Pros
Involves everyone. More likely that all risks will be covered Assists with implementation

Cons
Time consuming and therefore expensive Takes time for trust to grow in groups Groups need to be properly managed

any questions ???