ENGINEERING CHANGE AND ORGANIZATIONAL BEHAVIOUR OF THE ENTERPRISE

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1 9th International DAAAM Baltic Conference "INDUSTRIAL ENGINEERING April 2014, Tallinn, Estonia ENGINEERING CHANGE AND ORGANIZATIONAL BEHAVIOUR OF THE ENTERPRISE Maceika, A. & Jančiauskas, B. Abstract: Engineering change, which requires available resources from the organization, is associated with the organizational behaviour improvement process. It must be based on the appropriate methods that allows to efficiently achieving the objectives. Organizational values, knowledge, competences, power centres, finance, culture, experimental and production facilities are the factors that are important for the change in an innovative approach. Improving organizational behaviour includes such factors as the individual s psychological problems solution, team work performance improvement, and organization strategic development. There is no doubt that skilled designed change, which is based on an appropriate practice enterprise s organizational behaviour, can significantly contribute to the efforts to implement the core business objectives. Key words: Engineering change, innovative knowledge, innovation, organizational behaviour 1. INTRODUCTION Modern enterprises which are operating in a market economy can t exist and successfully compete on the sales market, if they are not guided by innovative ideas for performance improvement. Engineering change is based on customer needs, the desire to improve the manufacturing process, and the need to correct the mistakes that has been made. Companies have the difficulties of a clear understanding how to detect areas for field, to formulate tasks and effectively implement the planned change of organizational behaviour of enterprise. The goal work: to provide a research change situation in the industrial enterprise, to make analysis of organization behavior influence on change process, and to foresee the ways for enterprise activity improvement. The subject of research: the change subject and its relationship with organizational behaviour enterprise. 2. PROBLEM STATEMENTS Innovative knowledge is involved in the following creative process which creates new forms of activities, methods, techniques, new services, products, their logistics and markets, and so on. As a result, the new ideas and innovations should be formulated. For this reason in our article we investigated the environment and opportunities enterprise activities improvement in the context of changes. We are looking for purposeful analysis and for the methods to managing creative effort of designing. Obtained research results and analysis showed that from the common knowledge stream we should extract innovative knowledge and to develop new ideas and ultimately innovation on the basis of innovative knowledge. 145

2 The course of change formation from the origin to content is showed up in the figure 1. From this figure, we can see that the search for the appropriate change it is purposeful to start from the general - purpose industrial - technical, economic and social nature knowledge flow. This flow can be derived from the present enterprise s products analysis and their main competitors activities in the market, logistics, and industrial processes evaluation. Stream general purpose - technical, economic, and social nature innovative knowledge Stream general purpose knowledge specified for industrial applications: 1) the enterprise s product sales processes and markets; 2) the enterprise s logistics processes and markets; 3) the production process; 4) the enterprise s major competitors sales, logistics processes, and markets Extraction - technical, economic, and social nature innovative knowledge Formulation new innovative ideas and innovation Engineering - economic analysis innovative ideas and changes designing Analysis of economic and social performance of implemented changes according to the operational, tactical, and strategic phases of production activities development The terms of production activities development phases (planning horizon from few month to 3, 5, 10 or more years) A systematic approach for the changes implementation Figure 1. The scheme of change search, analysis, and evaluation This enough sufficiently stock of data and information to solve the problems in the field and the level problem, is helpful for change by using highly innovative knowledge of sufficient quantity, relevance and usefulness. It is quite important for the process of innovative ideas generation and for the creation of innovations. Of course, even preliminary purposeful activities, which we discussed at the beginning, not fully guarantee that we will provide an adequate performance of changes. Therefore, we should not only carry out - economic analysis of innovative ideas and innovation, but also to analyse the designed changes. 146

3 Only at this stage, in the belief that the utility of change is fully consistent with the enterprise s managers and designers economic - social expectations, the implementation to the enterprise s practice can be started, according to the layout of its operational, tactical and strategic stages of production development. According to the G. Q. Huang et al. (2003) [ 1 ] changes are the changes and/or modifications in dimensions, fits, forms, functions, materials, etc. of products or constituent components after the product design is released. An change usually induces a series of downstream changes across a company where multidisciplines work together dealing with these induced changes. Various functions across the manufacturing company have to adjust their activities in order to deal with changes and their impacts. As an change is mainly related to the technical and technological, organizational and managerial progress, it is often an element of progress from academic point of view positions. This requires reorganization production processes or organizational behaviour development, designing change, its implementation and the continued use through the phases enterprise s economic and social development. Our previous carried out analysis shows that organizational behaviour development is appropriate to begin from its and managerial staff. This staff is most closely associated with the technical, economic, and social nature data and innovative knowledge flows. There is no doubt that and managerial specialist are involved in change at the implementation and practical application phases. However, in those phases it is intrusion already know operational specialists, that have gained considerable skills in a variety of technological operations and in practical using work methods. Their creative efforts and work for change in form and content are related to conditions of existing and potential production situation. In this way, the preparation for the implementation of change is going if not yet fully economical, but in controlled by the economic cost position situation. We believe that properly done, on the above discussed consistent level, the management enterprise s change implementation process can help to understand and to improve organizational behaviour. Unfortunately, investigations in the enterprises and institutions, as well as their practical experience, shows that often it happens enough consciously, in an apparent element verse, which creates problems of substantial misunderstanding and disproportionate desire to maximize profits. It is clear that the proper management of activities designed through change will not be made more efficient, even if its sufficient financing, unless the people do not understand and will not remove the existing contradictions in enterprise s organizational behaviour. But now, the study of published sources shows that the majority ir focus is not on changes, but on changes in general, that are related to the enterprise s organizational behaviour and its improvement and that seeks to do intuitive analysis, as well as non-specific thinking to change in a systematic examination problem, for closer interpretation real causes and consequences. In this regard, the most noteworthy S. P. Robins (2003) [ 2 ] book, that claims to explain, predict and control the human behaviour in the enterprise, or in any other organization. However, there are no claims, coupled with activities, especially with the creative efforts of engineers. Equally interesting publication on the change in manufacturing was prepared by N. Obolensky (1996) [ 3 ]. The author 147

4 examined the changes and management of business process quite creative, but did not focus on the business process most creative element usually projecting the changes in business - efforts and performance management. Valuable publication that s help to understand a body of knowledge easier, that required for problem solution, including the search for change, design, and implementation, was developed by G. Probst, S. Raub and K. Romhardt (2000) [ 4 ]. In this publication many basics problems solution may be found. A similar idea can be found in conference publications. It is already possible to detect statements about the problems of changes management, but they are most often associated with changes in the field of human resources development, particularly looking through cultural factors influence development. However, this focus on and technical progress is stopped. For change analysis, development, and use management the attention was no paid in many of technical peer-reviewed journals. For instance, in 2013 the international conference, which was dedicated for mechatronic systems and materials science [ 5 ], has only one this type abstracts from 173 deliver messages. 3. APPLICATION AREA The main application area for the research results is industrial enterprise innovation activity. The research involved Lithuanian medical equipment manufacturing enterprise and there were questioned managerial and personnel. The results investigation can be useful for that enterprise and worldwide in generally. 4. RESEARCH COURSE As the first step the aim research was formulated. At the second step the research industrial enterprise personnel organizational behaviour in change process situation took place. Third step involved the analysis and evaluation obtained from the medical equipment manufacturing enterprise data by using an average value method and after the analysis adequate conclusions were stated. 5. METHOD USED The authors article carried out a number of studies, collected and analysed relevant information. Applied methods there are survey of scientific literature and other information sources, structural system analysis, and a sociological inquiry of industrial enterprises personnel. 6. RESULTS In our exploration medical equipment manufacturing enterprise showed that the situation is good (specially prepared questionnaires help to inquire this company and managerial staff). It was evaluated by 4.1 points of 5 possible (the responses were rated from 1 to a 5-point scale). Equipment for production tasks was rated by 4.1 points, but the task orientation and motivation was rated less by 3.9 points in average. It follows that, in a further enterprise aging facilities, equipment and devices, technological methods of production that combines the elements organizational arrangement too, the situation is not as good as they are perceived by the participants. We believe that with no delay, it is necessary to prepare for the modernization of technical production subjects, based on change and on systematic method management. These findings present actuality for the enterprise in strengthens its production, information processes and logistics activities innovative 148

5 improvement, respectively, which are evaluated by 3.6 and 3.8 points. Average values of respondent s answers and R correlation coefficient are presented in the table 1. Evaluated parameter Evaluation parameter (average points) Correlation between the parameter and the enterprise s situation (R) Enterprise s situation product logistic production process information process The policy of the personnel participation in creative activities Salary 3.7 0,301 Table 1. Average evaluation of changes rated parameters The required change in the pending a medical equipment enterprise to become even more solid when, in accordance to systematic approach requirements, will be completed with the innovative decisions for the appropriate logistical and activities information process improvement. But ultimately, for the carefully prepared change practical implementation and use it should be made improvement concerned conditions of internal activities and their management. As a result, in the enterprise s organizational behaviour is appropriate to carry out the relevant innovative organizational - managerial changes. For example, performed research shows that the tasks (evaluation - about 4 points out of 5) were formulated by managers and engineers engaged in the task contribution 3 points out of 5. We believe that this is not a bad case, but in the perception need for the new ideas and innovation, the ratio of engineers engagement in the task creation required improvement. This could be done by properly improvement activities management, based on the vertical and horizontal management techniques improved mix ratio. This would require preparing management change in the field of organizational behaviour improvement. This is possible because the creative initiative and activity in the enterprise, according to the research results, was well tolerated. It consists of 4.2 points out of 5. The fact that it is appropriate to prepare the changes of management activities to improve the changes process was based on the survey data. Here, for example, the problem of roles structuring by allocating the tasks to engineers, was evaluated by respondents of about 3 points out of 5. These figures shows that there still exist opportunities to improve the organizational behaviour in the field of 149

6 activities. According to the other study outcomes is said to be a logical component change. 7. CONCLUSIONS After examination thematic problem of this article the following conclusion are stated: 1. For the search of change we recommend to use in the figure 1 presented action scheme, leading to the consistent and stable establishment new motivated ideas and innovations that makes up the essence of change. 2. If an change is created on the basis of presented scheme, it is associated with the technical and technological, organizational, and managerial progress, which is guarantee sufficient good functioning enterprise. 3. Our research shows that the enterprise s proper functionality guarantee can be only if the enterprise s organizational behaviour development will be with regard to the guarantor s requirements. Studies have shown that people were satisfied with the salary (3.7 points in average out of 5 possible), while the policy personnel participation in creative activities was assessed as moderate (3.4 points in average out of 5 possible). 4. The research shows that in a further aging enterprise s machinery, equipment, and devices, technological methods and means of production that combines the following organizational arrangements, the situation is not as good as the perception of its participants. We believe that with out delay is appropriate to prepare situation improvement plan based on properly prepared change support and on new policy personnel participation in creative activities. 5. It is purposeful to carry out the appropriate innovative organizational - managerial changes, namely to improve the management of activities, based on the vertical and horizontal management techniques improved mix ratio. 6. In this case, it is purposeful to prepare the enterprise s activities change to improve it. 8. REFERENCES 1. Huang, G. Q.; Yee, W. Y.; Mak, K. L. Current Practice of Engineering Change Management in Hong Kong Manufacturing Industries. J. Mater. Process. Technol., 2003, 139, Robbins, S. P. Essentials of Organizational Behaviour. Prentice Hall, Upper Saddle River, NJ, Obolensky, N. Practical Business Re. Kogan page limited, London, Probst, G.; Raub, S.; Romhardt, K. Managing Knowledge: Building Blocks for Success. Biddles Ltd, Great Britain, Maceika, A.; Jančiauskas, B. Engineering Education Based on Engineering Change. In the 9th International Conference "Mechatronic Systems and Materials" (MSM-2013), Vilnius, July 1-3, 2013: abstract book. Technika, Vilnius, 2013, ADDITIONAL DATA ABOUT AUTHORS Assoc. Prof. Dr. Augustinas Maceika Vilnius Gediminas Technical University, Faculty of Mechanics, Department of Mechanical Engineering, J. Basanavičiaus street 28, MR-II, 1012 room, LT Vilnius, Lithuania augustinas.maceika@vgtu.lt Assoc. Prof. Dr. Bronius Jančiauskas Vilnius Gediminas Technical University, Faculty of Mechanics, Department of Mechanical Engineering, J. Basanavičiaus street 28, MR-II, 1012 room, LT Vilnius, Lithuania bronius.janciauskas@vgtu.lt 150