Soft Systems Methodology in Problem Solution

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Introduction

Engineering systems and New Product Development (NPD) initiatives provide major challenges for modern day engineering designers. This calls for a three-pronged study approach including products evaluation, processes evaluation and organization evaluation. The science and complexity involved in complex engineering procedures bear a common characteristic: they are fragile and at the same robust. Such complex and large scale systems bear plenty of robustness despite the many uncertainties and variations it faces. Various conditions can easily result into collapse of such systems. The ease of collapse is a product of the systems embodiment of subtle, intricate and non-linear interactions with operations (Orlikowski & Gash, 1994). Various researches and technological approaches are derived and developed annually to assist designers come up with accurate predictions which are capable of cushioning the engineering systems against unexpected cataclysmic disintegrations.

Understanding of the complex world that constitutes our environment is based on experiences, interactions and constant embodiment of emerging knowledge. These facilitate build up of models which shape human reasoning and approach to problems. The models are founded on implicit and explicit assumptions regarding the problem, its possible consequences and the applicable policies in addressing the problem (Ledington, 2002; Ledington, 1998). In system engineering, mental models strongly impact on the ultimate designs developed. Lack of information foundations can easily amount problems in such scenarios if information is selective or non-factual (Davies & Ledington, 1988: 34). Interpretation of such is likewise fundamental. Soft systems concept offers a convenient and appropriate tool in analysis of engineering problems both qualitatively and quantitatively. This methodology is applied in analysis of the challenges facing Ugenya Co. Inc. specifically it’s used in analysis of the use of information as well as information flow within the corporation. Recommendations are also documented to enable the corporation revamp its operations in such a way that enhances achievement of its strategic objectives.

Ugenya Co. Inc is an emerging assembling unit that deals in production of home based electric appliances including lawn mowers, power generators, and water pumps, among others. It then sells this products through either its retail outlets or through agents who sale them on their behalf. Since inception, about eight year ago, the business has grown leading to enlarged market potential. This has led to development of specialized departments and opening of more retail outlets across the region. Being a small manufacturing unit, the company has a more or less flat organizational structure with all heads of departments directly reporting to the proprietor who also doubles up a the manager. Its administration unit assesses sales within its stores and also receives orders from its regional vendors and passes the same to stores department. Based on stock thresholds, the stores department passes assembly order requirements to the production unit for appropriate replenishment. Generally, the activities of all these departments have enlarged over the period as has been witnessed by increase in the number of staff from 12 at inception to the current 62 permanently employed staff. The challenge to the company is how to stay competitive in the changing markets.

While Ugenya Co. Inc has continuously grown, its management well understands that to stay competitive it must embrace new technological advances which facilitate information accessibility as well as information flow within the corporation. It is on this basis that the company seeks to stay updated on suitable information technologies which are suitable and useful in small business operations. The proprietor cum manager believes that integration of information communication technology is crucial to its future operations sustainability.

Review of Soft Systems Methodology

Soft systems methodology (SSM) was formulated by Peter Checkland back in 1960’s as a way of applying engineering principles to business challenges and hence overcome common challenges and paucities in traditional evaluation techniques. Avison & Wood-Harper (1991: 102) asserts that this approach offers a useful and relevant approach to strategic organizational planning processes. Barden (1997: 84) on the other hand defines the concept as based on practical application and experiences in a wide and complex managerial systems. This methodology allows introduction of human elements into systems solutions. It offers guidelines to solving problems in unstructured systems and processes. SSM allows problems to remain unstructured for as long as possible and hence allow evaluation of various alternatives. It focuses on solution of previously unstructured problems rather than primarily focusing on well structured problems. This paper adopts the 7-step approach proposed by Checkland in problem evaluation using SSM.

Problem definition

The company is continuously seeking technology and applications which could enhance its operations, online services included. The general aim is to adopt technological changes which would work to the company’s benefit. Staffs have consistently expressed concern over periodic shortages in inventory with occasionally lack of requested stock from the warehouse. Based on the company’s concern to maintain high customer service levels, such problems are unwarranted need immediate elimination. This is just one of the major concerns which may be summed as lack of proper inventory management technology.

Expression of the problem situation

An organizations information management system is meant to facilitate efficient and reliable communication to allow efficient functionality of a firm (Hirschheim & Sabherwal, 2001). It offers the tool, upon which a corporation organizes, manipulates and conducts analyses of information that are useful in businesses improvement initiatives. According to Wilson (1990), technology has greatly benefited small companies allowing them compete large multinational companies in markets where they previously lacked access. This has been possible through internet access and development of low cost software/hardware.

Conceptual Model: Rich Picture

Rich picture is used to provide a visual picture of information flow and interaction between business internal organs and the external stakeholders. The following issues are considered in development of the Rich picture;

Internet commerce threat
Warehouse space shortage
Information flow between wholesalers and retailers
Stock shortages in manufacturing unit
Intended operations expansion
Competitors strategy

External information flow

The rich picture defines a good relationship between Ugenya Co. Inc. and customer which has been fostered through good customer relations and excellent service provision. This is demonstrated by the efficient and well structured communication links put in place. Its competitors are constantly looking for new approaches, techniques and marketing ideas to stay above the competition. Broke communication flow indicates that despite staying informed on competitor’s strategies, Ugenya C. des not maintain an active communication channels with other firms within its market. The company also maintains strong communication channels with supplies and is aptly aware of the threats posed by customer access to similar products by its competitors. Additionally, they are aware of the threat of customers directly linking with the supplies over the internet. To maintain, good communication, the information technology needs to supply the firm with effective communication software which would facilitate continuous communication with all relevant stakeholders (Oden, 1999). The firm also outsources preparation of its purposeful financial statements as tax returns to an external accounting entity. It maintains a good communication relation with this firm. Additionally, the company acknowledges that it needs to constantly liaise with the regulatory bodies to ensure compliance.

Internal information flow

Other than external flow of information, the management realizes the importance of constantly being aware of issues of concern raise by various production departments. The proprietor cum manager is involved in the day to day operations of the firm. The current concern regards flow of inventory.

Root definition

This section provides a concise verbal description of the system under evaluation. As Porter (2000) states, root definition provides a general overview of the systems under evaluation by giving a clear picture of what it is involved in.

Ugenya Co. Inc. is a privately owned assembling entity. It imports electrical appliances in parts and locally assemblies for purposes of channeling them into the local market. In the recent past, its market has expanded beyond the local market more so with the growth of internet technology. The company imports the parts from overseas supplies in accordance with government guidelines, assembles them and distributes them into respective markets.

Conceptual Model

The model is developed based on ideal systems root definition. This provides a notional entity capable of adapting, and surviving through communication and control process in a dynamic environment.

The model takes into consideration operations, monitoring, control and formulation that Ugenya Co. Inc. engages in. the three prime operations as indicated importation, assembly and selling of the assembled parts. However, for the three activities to effectively take place, a number of secondary functions must be incorporated. The business must maintain good and efficient communication channels with the suppliers (Oden, 1999). Additionally, it must access a wide range of suppliers. Efficient and timely communication between the entity and the suppliers is a necessity if the supply chain is to remain unbroken, customers are kept satisfied and the staff work without unnecessary pressure.

Selling involves setting of prices, establishing discounting criteria, and advertising of the product. Catalogues are prepared and distributed to prospective clients alongside media advertisements. Upon receipt of orders, supplies are released from the stores into the assembly unit; the unit assembles the product matching catalogues description and dispatches it to the warehouse from where the sales team takes over. The administration offers a supportive role to all departments and acts as the link between them. Additionally, it formulates policies which impact on the activities of the firm. It is involved in recoding of transactions to and from suppliers as well as customers. Thee records help in preparation of general purpose financial statements.

Planning on the other hand is useful in setting and pursuing of the broad company objectives both at long term and short term levels. Planning helps organization engage strategies which facilitate attaining of its objectives (Oden, 1999). Such objectives should be realistic and within reach of the business for successful implementation. Evaluation is an ultimate and fundamental step if continuous quality provision is to be provide, evaluation allows identification of points of weakness and likewise assessment of the objectives of the firm in light of actual performance (McKeen & Smith, 1996). Common measurements are based on profitability. This step reaches out to the planning phase in order to re-strategize for the already set company objectives if necessary.

Rich Picture and Conceptual Model Comparison

The new ideas sought by competing firms provide an avenue for the organization to in addition to maintaining, develop new ideas with enhances its market competitiveness (Checkland, 1989: 82). They impact on the conceptual model at planning stage. The firm also needs to knowledge that competitors are continually seeking new clients and any discrepancies in operations could cost them clients. There is need therefore to formulate customer loyalty programs as well as customer seeking strategies.

Evaluation and recognition of discrepancies between the Rich picture and the derived conceptual model of the organization, offers an avenue for adoption of modification options which facilitate exploitation of new business, expansion of the business and maintaining of good business practices. Additionally, it provides an avenue for solving of problems based on reasoned out decisions and hence rationally. It also equips the company with effective communication knowledge with supportive firms such as suppliers and accounting forms which facilitate its operations management. The firms will in turn be able to sufficiently offer services tailored to meet the needs of Ugenya Co. Inc.

From the Rich picture, it can also be seen that good communication linkages exist between the business and customers as well as suppliers. This has enabled the proper functioning of the imports and sales departments. However, as indicated that there are staff concerns when it comes to inventory management. A comparison of the picture to the conceptual model reveals that despite the efficiency with which the admin is managing its functions according to the existing procedures, the ordering procedure needs a careful review to meet their requirements of its dependant departments. Fig. 4 provides an illustration of an idealized Rich picture citing various improvements which are appropriate to improve information flow within the entity. It’s important to note that the external and the internal entities of the firm remain the same. Improved ordering procedures enable timely and sufficient receipt of supplies and hence no stock shortages. This trickled down to happy customers who are efficiently served without having to subject workers to unnecessary strains and hustle. A more informed relation between the firm and its outsourcing communication firm enable a better understanding and hence development of communication system which meets the needs of its clients (see fig. below);

Desired system changes and their cultural feasibility

Successful implementation of proposed changes is largely reliant on how well they fit to the existing corporate culture. Often, when changes are not agreed upon and hence are subject to controversy, their implementation is more likely to result into failure rather than success. Based on the findings of this analysis, the following recommendations are made to improve the firms efficiency and hence competiveness within its market scope;

Acquire modern software capable of highlighting inventory levels and send alert messages to the management on when to order more stock. This would require that the software be able to analyze past data and trends in order to forecast inventory requirements. This is expected to eliminate cases of inventory shortages and hence complaints related to the same.
Link its operations to the internet to facilitate email communication between itself, its supplies and the clients. Additionally, internet connection will enable to look for new business opportunities and gain more clients/market share.
Establish a website from where both current and potential customers will be able to access information regarding its services and products.

However, it should be noted that not all the problems identified are economically feasible at the moment. As such despite the issue raised with regard to warehousing space, such an investment would require a large capital outlay and is therefore not possible at the moment.

Discussion

As earlier mentioned, Ugenya Co. is a small corporation currently able to meet the needs of its immediate clients. However, the future changes require that it maintains up to date modification for purposes of maintaining its current status within the market and even expand. Communication and information technology is fundamental to this drive. Internet and web access will allow it to interact with its stakeholders more easily and within time. Additionally, this will enhance its marketing activities and strengthen its link to clients. Its market scope will also be enlarged as it will be able to access a broad range of client base over the internet.

In general, the soft systems mode offers an avenue upon which the corporation is able not only understand sources to its challenges but also gain a deeper understanding of its functionality. Some organizations, it’s worth mentioning do not have clear pictures on how they operate. Using Rich picture offers insight into this. Ugenya Co. has therefore been able to successfully identify the key areas that require changes if its future operations are not to be put in jeopardy.

An advantage of using SSM to analyses real world problems is that its interpretive ability recognized for its inclusiveness of members of the organization. Additionally, it offers unique with respect to the context of the problem being evaluated. Member participation allows development of organizational learning skills through involvement in addition to improving problem ownership and hence commitment to resolving the same. Additionally, recognizing the interpretive context-dependency in relation to the problem offers an opportunity for members of the entity to discuss and question perceptions they hold with respect to a particular situation within the organization’s functions. This allows adoption practicable changes to the organizations functional organs.

References

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