ANALYSIS OF

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ANALYSIS OF ORGANISATIONS
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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

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FUNCTIONAL ANALYSIS
Corporate
Marketing
Financial
Purchasing
Production
Sales
Advertising
Design
Safety
Treasury
Accounting
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CORPORATE TREE
Holding Co.
Liquor Distiller
Computer Hirer
Financial advice
Building Owner
Insurance Company
Lessor
Caretaking
Insurance Broker
Investment adviser
Beer brewer
Wine importer
Whiskey maker
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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.

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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.

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INPUT-OUTPUT DIAGRAMHEALTH CLUB
INPUT
OUTPUT
FIT CLIENTS
CLIENTS
PROFITS
AEROBIC INSTRUCTORS
INJURED CLIENTS
EQUIPMENT
TRAINED INSTRUCTORS
SWIMMING POOL
ADMINISTRATORS
MASSEURS
WEIGHT TRAINERS
MONEY
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SYSTEMS DIAGRAMS
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EXAMPLE OF A SYSTEM
HOSPITAL
TRANSPORTING
NUTRITIONAL
PHARMACEUTICAL
FOOD PREPARATION
DISPENSING
DRUG CONTROL
NURSING
MEDICAL ADVIcE
SURGERY
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Electricity
GPs
Ambulance Services
HOSPITAL
Food Supply
Morgue
NUTRITIONAL
PHARMACEUTICAL
FOOD PREPARATION
Water Supply
DISPENSING
DRUG CONTROL
TRANSPORTING
SURGERY
NURSING
MEDICAL ADVIcE
Water
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FLOW CHARTS
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FACTORY FLOW CHART
Bagger
Finished Good stores
Raw Materials
Mixer
Raw Materials
Bagger
Finished Good stores
Raw Materials
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GYMNASIUM FLOW CHART
REJECT
MEDICAL QUESTIONNAIRE
MEDICAL
OR
FREEDOM OF USE
ACCEPT
COLLECT FEES
CLIENTS JOIN
OR
RUNNING
TRAINING
NO QUESTIONNAIRE
APPARATUS
OR
FITNESS TESTING
SWIMMING
AEROBICS CLASSES
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METHODS OF ANALYSIS

• Management by wandering about.
• Group analysis.
• Forms.

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any questions ???
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MANAGEMENT BY WALKING ABOUT MBWA
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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

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

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FORMS
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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.

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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)

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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
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Activity Check A
B C
here Sub-
Average High
Standard
Standard Standard
Use of Guards are
used Guards are in use Guards are
always machine only
rarely and most of the time used and
every guards are
often not and operational. guard
is in
even in working
excellent working
order
order. Use of face
The masks etc. Masks etc
are All masks are masks and
are rarely used used in most
issued to staff other
and not kept in an cases and
and are worn breathing
easily accessible access is at
all times. apparatus
place. reasonable. Safety
notices Few safety signs The
usual In addition to and other
are visible and
safety signs the normal signs accident
many are out
are posted. there are a prevention
of date.
number of
notices information.

specific to the

plant
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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.
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Action
No
Yes
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..........
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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.

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HAZOP

• Hazard operability studies

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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.

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FORM
GUIDE
DEVIATIONS
CAUSES
CONSEQUENCES
ACTIONS
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GUIDE WORDS
Guide Words
Meanings
Comments
No or Not
No part of the intention is achieved, i.e. there
is no flow or no pressure. Nothing
else happens, there is simply no part of the
intention achieved.
This is the complete negation of the intention
More Less
There is an increase or a decrease in the
quantity of the property
There could be more flow than was the intention
or less flow.
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
There is a qualitative increase in the property
As well as
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GUIDE WORDS
Guide Words
Meanings
Comments
Part of
Only some of the intention is achieved and some
is not. This is not a quantitative decrease that
would be less than but is a decrease in the
quality of the property.
There is a qualitative decrease in the property
Reverse
The logical opposite of the intention
An example of this could be where the flow
is reversed or instead of boiling a liquid it is
frozen.
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.
The complete substitution of the intention
Other than
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SECTION OF PLANT
Pump
Nozzle
Valve V2
Tank
Valve V1
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Guide
Deviations
Causes
Consequences
Actions
No
No flow
1. Tank empty 2. Inlet valve V1 is
shut 3. Pump not working 4. Other two
valves shut 5. Hose blocked
1-5 No petrol gets to vehicles 4 Petrol
seeps out of pipes 5 Hose bursts
1 Regular checking of tank. 2,4 Valves to be
checked each day 3 Regular maintenance of the
pump
More
More flow
1. Pump faulty
1. Spillage
1. Regular maintenance
1. Pump faulty 2. Valves not fully open 3.
Hose partly blocked
1-3 Longer to fill tank in vehicle
1-3 As for no flow
Less flow
Less
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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.

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GROUP ANALYSIS
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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.

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FORM FOR RISK IDENTIFICATION
SYSTEM CODE
DATE
TEAM
SYSTEM
TASK
GUIDE WORD
RISK SCENARIO
CONSEQUENCES
ACTION
FREQ
SEV
COST
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MEASURE OF FREQUENCY

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

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Measure of severity
CODE 5 4 3 2 1
AFFECT ON STRATEGY Mission cannot
be achieved Only half the mission can be
achieved Mission can be achieved but with major
delays Mission not affected. Delays but no
loss of business No loss of business
AFFECT ON PROPERTY Property is destroyed or
damaged beyond repair Half the property
is destroyed or severely damaged Property is
severely damaged but can still be used Minor
damage to property not in excess of
100,000 Minor damage less than 50,000
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 Injuries to people which lead to one month
off work Minor injuries
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EXPECTED LOSS

• Measure of frequency x measure of severity
• Frequency 4 and Severity 2
• Expected loss 42 8
• Can prioritise in this way
• Cost of carrying out work not included

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COST
COST DESCRIPTION 1
Cost less than 10,000 2
Cost between 10,000
and 50,000 3 Cost
between 50,000 and 100,000 4
Cost between 100,000 and 500,000 5
Cost greater than
500,000
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PRIORITISATION OF RISK
CODE (Frequency X
Severity)/cost 551 25 434
3 333
3 235
1.15
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RISK PRIORITY CHART
RISK NUMBER OF COST CUMULATIVE
CUMULATIVE CODE SCENARIOS
COST OF NUMBER OF

CONTROL RISKS

CONTROLLED 551 1
5,000 5,000
1 434 1
300,000 305,000
2 333 2
60,000 420,000
4
55,000
235
1 750,000
1,170,000 5


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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

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any questions ???