Susan Blouin, Toronto - Operations Management Quality System Deployment

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    Operations Management

    Process Analysis, Product, Process Design& Quality Systems Deployment

    IT CORPORATION Canada Corporation

    July 18, 2002

    Susan Blouin

    Athabasca University, Center for InnovativeManagement MBA Program, Operations Management Paper

    1.

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    Operations Management

    TABLE OF CONTENTS

    PROCESS ANALYSIS, PRODUCT, PROCESS DESIGN .......................................................................1

    & QUALITY SYSTEMS DEPLOYMENT..................................................................................................1

    IT CORPORATION CANADA CORPORATION.....................................................................................1

    OPERATING STRATEGY......................................................................................................................4

    OPERATING MODEL..........................................................................................................................5

    HOW IT CORPORATION CANADAIS STRUCTUREDTO MEETITS MAJORISSUES...........................6

    INDUSTRY TRENDS ...........................................................................................................................6

    CUSTOMER SERVICE.........................................................................................................................9Instituting a Quality Management System.............................................................................................10

    Analysis of Business Process Management and Process Design Related Issues...................................13

    Production/Delivery Processes..............................................................................................................14Business Processes.................................................................................................................................14

    DEPLOYINGAPROCESSFOCUSEDAPPROACHTOMANAGINGWORKISNEEDED........................................15

    ANALYSISOF CUSTOMERSERVICE RELATED ISSUES..........................................................................17

    THE CUSTOMERDRIVEN ENTERPRISE MANAGEMENT MODELANDTHE TIES BETWEEN IT CORPORATION

    CURRENT STRATEGIC ISSUES ..........................................................................................................17

    ANALYSISOFTHE QUALITY RELATED ISSUES....................................................................................21

    2.

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    EXECUTIVE SUMMARY

    The overall shift toward enhanced services and applications support results in a clear need for

    closer relationships with customers and increased focus on the personalization and customization

    of services. As the number of users subscribing to value-added applications continues to grow,

    their expectations in terms of personalization and specialized services also continue to evolve.

    The one-size-fits-all service concept becomes invalid in an increasingly fragmented marketplace.

    Embracing this mass personalization will take a serious effort on the part of IT CORPORATION

    Canada to meet these new needs of its new customer base.

    This report will review the current state of issues facing IT CORPORATION Canada, and outline

    the success criteria needed for IT CORPORATION to accomplish meeting the appropriate

    objectives in order to manage their operational issues and complexities.

    The analysis of the current issues will detail the related business process, customer service and

    operational complexities surrounding the organization. The recommendations will provide insight

    on mandatory requirements that will lead towards a new operational platform, implementing a

    more customer-focused enterprise and instituting a quality management system through the

    organization.

    3.

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    THE ORGANIZATION

    IT CORPORATION Canada's presence in the business long distance, local, data and Internet

    and E-Business solutions markets allows it to bundle a full spectrum of products. With its

    extensive local and long distance facilities and interconnection arrangements, IT CORPORATION

    Canada is capable of serving more than 85% of the Canadian business telecommunications

    market on its network. Its strategic partnerships and interconnection agreements with other

    international service providers, including IT CORPORATIONCorp. and British Telecom, allow it to

    provide global voice, data, Internet and E-Business solutions to its business customers.

    Operating Strategy

    The vast majority of IT Corporation business is represented by the base of its Operating Strategy.

    This is data transport, access and the hosting business where the company generates more than

    90% of its revenue; where most of its capital is invested and where the vast majority of the

    employees work1.

    IT Corporation goal remains in strengthening the foundation of its operating strategy. This is

    where the bulk of the process improvement work is going on, designed to improve the customer

    experience.

    1IT Corporation Proprietary, 2002

    4.

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    Operating Model

    IT Corporation Operating Model defines how IT CORPORATION Canada will succeed by aligning

    its strategies with its actions, and illustrates how the company will be managed2.

    The company's goal is to achieve sustained success. This can only be accomplished with a

    balanced approach.

    How IT CORPORATION Canada's leadership team manages and operates the company is

    reflected in the other components of the Operating Model: Mission, Vision, Values, Baldridge

    Process Discipline, Improvement, Learning, and Management and Leadership.

    IT Corporation Operating Model is currently surrounded by key "Imperatives" describing areas of

    focus for the business that relate to Customer Satisfaction, Process Improvement, Engaged

    Leadership and Growth. The core of the model remains consistent as it represents a balanced

    2IT Corporation Proprietary, 2002

    5.

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    managed system on which to operate the company. The key imperatives from 2001 have been

    transformed and map very logically against the Business Priorities for 20023.

    The operating organization shown below, is responsible for leading operational

    imperatives which are still relevant and will be folded into how the company will

    manage the business under the four banners of Customer Satisfaction, Process

    Improvement, Engaged Leadership and Growth. The operating organization is

    structured in the following verticals Marketing, Sales, and Customer Service that

    shape the framework of the company. This is how IT CORPORATION is structured

    today to meet their current issues and operational management requirements.

    How IT CORPORATION Canada is Structured to Meet its Major Issues.

    Industry Trends

    The year 2002 is positioned to be the year value-added services and personalization becomes

    the key service drivers for the telecommunications industry4. With the high level of confidence

    coming from the past few years of exponential Internet growth as a network and a revenue-

    generating industry, IT CORPORATION Canada and analysts believe service differentiation will

    continue this growth. Time to market for new services will also be part of the service

    differentiation that drives industry growth. As the telecommunications industry evolves, IT

    3Ibid.

    4Lemay Yates, 2001

    6.

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    Operations Management

    CORPORATION Canada needs to package and deliver new services or bundles as quickly as

    possible.

    KEY ASSUMPTIONS

    The following are assumptions that are relative to the companys operating strategy and

    operational model:

    - The underlying assumptions of the operating model this was created for, are valid

    - The current cost and pace of technology will continue such that the basic cost of telecom will

    still be perceived as cost effective

    - Continued trained workforce will still be in place

    - IT CORPORATION Canada will maintain the pace to be able to move into the higher levels of

    value-added solutions, towards the internet and managed network services

    - Continued customer and value support

    - Cost Related External Factor: The regulator environment will at least support and will be able

    to enable a suitable business and competitive environment, as this can effect our cost

    structure and IT Corporation operations of their business in what they are able to sell.

    MAJOR ISSUES

    IT CORPORATION is faced with three major issues in their current operations related to the

    management and servicing of delivering non-standard custom solutions. The analysis will

    address the deficiencies in business process managementand the inefficiencies in customer

    service, and the need for instituting a

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