Monday, 14 October 2019

Organizational Structure for TPM Organizations

 TPM (Total Productive Maintenance) is a methodology based on improving equipment and improving people, to reach the second condition is mandatory to build an organizational structure to facilitate the autonomy of workers and their alignment with the organization's mission, vision, and values.

 In this way, the company Spotify classifies the teams in four quadrants based on their level of autonomy and alignment with the organizational goals, reach the high-high quadrant allows the achievement of goals in a more creative and efficient way by exploiting the potential of all the people involved in the project.

From Spotify.

 This approach is based on the Douglas McGregor Theory X and Theory Y, in which Theory X suppose that:
·   The average human being has an inherent dislike of work and will avoid it if he can.
·   Most people must be coerced, controlled, directed, and threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives.
·  The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security above all.
 As can be seen, these conditions of the Theory X could be assimilated to the Spotify quadrants with low autonomy or low alignment.
 On the other hand, Theory Y proposes the integration of individual and organizational based in:
·   The expenditure of physical and mental effort in work is as natural as play or rest, and the average human being does not inherently dislike work.
·   Man will exercise self-direction and self-control in the service of objectives to which he is committed.
·  The satisfaction of ego and self-actualization needs can be direct products of efforts directed toward organizational objectives.
·   The average human being learns, under proper conditions, not only to accept but to seek responsibility.
·   The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems widely, not narrowly, distributed in the population.
·   Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized. 
 In the same line, Frederick Laloux in his book Reinventing Organizations proposes an evolution of the organizational structure of companies from impulsive organizations, based on the division of labor and command authority, to Teal organizations based on self-management, wholeness, and evolutionary purpose.
 According to this author, evolutionary or Teal organizations are based on these basic assumptions:
·   Trust, 
·   Information and decision-making, 
·   Responsibility and accountability, 
·   Equal worth, 
·   Safe and caring workplace, 
·   Overcoming separation, 
·   Learning, 
·   Relationships and conflict, 
·   Collective purpose,
·   Individual purpose,
·   Planning the future, 
·   Profit.
 A way to obtain this evolution is by exploiting the principles of Visual Management, so all the workers involved in the process hold real-time information needs to make decisions based on their individual and collective goals, and the responsibility to report in a transparent manner its performance with the target to improve benefits.
 By a Visual Management Dashboard workers report their own results and performance, the level of goals fulfillment, the work planning including the days-off planning, needs for qualifications, etc.

 Example of Visual Management Dashboard, from Michel Greif - The Visual Factory.

 These boards could be complemented with Kanban dashboards specifics for every project, these boards show openly and transparently the flow of work in real-time, show the process weakness, support to manage flow, make policies explicit and identify improvement opportunities.
  Congruent with these tools, we find the Spotify organizational structure, a floating and changing structure, based on individuals, with the following elements:
·   Squads, a small team to be 6 to 12 persons that work together towards a long-term mission.
·   Tribes, a group of several squads to be 40 to 100 persons, focused on a process, with a leader. 
·   Chapters, a horizontal structure formed based on competency areas.
·   Guilds, a non-formal structure or community of interests where the people across the whole company gather and share knowledge of a specific area.
 These structures are changing, even the role of the leader can change in every project, this system provides autonomy to involved persons and allows them to participate and focus on their own areas of interest, the areas where it can add the most value.
 As a summary, we could consider that TPM is the self-actualizing management, once the first stages of the Maslow's hierarchy of needs are fulfilled, they are physiological needs, safety needs, belonging needs, and esteem needs; because it considers the following key principles:
·   Work is a type of psychological therapy for satisfying our desire for self-actualization.
·  People and works are in a cyclic relationship; people grow and develop through their work, bringing prosperity to their companies and that prosperity lead to further individual development.
·   When people find a purpose in though their work, they become ever more passionate about it. 
 For an organization, to start up this type of organizational structure improves the velocity and simplifies processes, eliminates dependencies, makes easy troubleshooting, minimizes the hierarchy control and changes to self-control, promotes quality and transparency, and create a positive work climate.

Thursday, 25 July 2019

Estructura Organizativa de Empresas TPM

 TPM (Total Productive Maintenance) se basa en mejorar las máquinas y en mejorar a las personas, para conseguir este segundo aspecto es necesario crear una estructura organizacional que facilite la autonomía y el alineamiento de los operarios con la organización.

 En este sentido, la empresa Spotify divide los equipos de trabajo en cuatro cuadrantes dependiendo de su nivel de autonomía y de su nivel de alineación con los objetivos de la organización, alcanzar este cuadrante permite conseguir estos objetivos de forma más creativa y eficiente al aprovechar el potencial de todo el personal implicado en el proyecto.

    Tomado de Spotify.

 Este planteamiento se base en la Teoría X y la Teoría Y del trabajo, descrita por Douglas McGregor. En base a este planteamiento, la Teoría X presupone que los trabajadores cumplen con las siguientes condiciones:

  • No les gusta el trabajo y tratan de evitarlo.
  • Requieren ser dirigidos para alcanzar objetivos.
  • Prefieren evitar responsabilidades y les falta ambición.
 Como se puede comprobar, estas tres condiciones de la Teoría X se pueden asimilar a los cuadrantes en los que aparece baja autonomía o baja alineación en los cuadrantes de Spotify.

 Por el contrario, la Teoría Y propone que los trabajadores:
  • Consideran que dedicar esfuerzos al trabajo es natural.
  • Se auto-gestionan y auto-controlan.
  • Consiguen auto-realización mediante la superación de objetivos.
  • Aprenden a aceptar responsabilidades.
  • Tienen creatividad para solucionar problemas.
  • Desperdician potencialidades por la rigidez del sistema. 

 En la misma línea, Frederick Lalous propone en su libro Reinventing Organizations una evolución de la estructura organizacional de las empresas partiendo de organizaciones impulsivas basadas en la división del trabajo y la autoridad de la cadena de mando, hasta organizaciones Teal basadas en la auto-gestión, la integridad y el propósito evolutivo.

 De acuerdo a este autor, las organizaciones evolutivas o Teal se basan en los siguientes principios:

  • Confianza, 
  • Transferencia de información y capacidad de toma de decisiones, 
  • Responsabilidad, 
  • Igualdad de trato, 
  • Existencia de un ambiente seguro y protector, 
  • Capacidad de superar la separación, 
  • Interés por el aprendizaje, 
  • Capacidad de mejorar las relaciones y solucionar conflictos, 
  • Existencia de un propósito colectivo,
  • Existencia de un propósito individual,
  • Capacidad de planificación del futuro, 
  • Búsqueda de beneficios.

 Una forma de conseguir esta evolución es explotar los principios de la gestión visual, de manera que todos los trabajadores que participan de un proceso dispongan en tiempo real de toda la información necesaria para tomar decisiones basadas en sus objetivos individuales y colectivos, y la responsabilidad para informar con transparencia de su rendimiento con el fin de mejorar los beneficios.

 Así, en un tablero de gestión visual los propios trabajadores indican sus resultados y su rendimiento, el nivel de cumplimiento de objetivos, la planificación de su trabajo incluyendo la planificación de sus días libres, las necesidades de cualificación y formación del equipo, etc.

Ejemplo de tablero de gestión visual, tomado de Michel Greif - The Visual Factory.

 Estos tableros se complementan con los paneles Kanban específicos para cada proyecto, estos paneles muestran de forma abierta el flujo de trabajo en tiempo real, lo que permite mostrar las debilidades del proceso, ayudan a dirigir el flujo de trabajo, expone las políticas del proceso y reconoce oportunidades de mejora en el proceso.

 Compatible con estas herramientas encontramos la estructura organizativa que propone Spotify, una estructura flotante y cambiante, basada en el individuo, que se compone de los siguientes elementos:

  • Escuadras, formadas por entre 6 y 12 personas dedicadas a un mismo área.
  • Tribus, formadas por varias escuadras hasta alcanzar entre 40 y 100 personas, dedicadas a un proceso, con la presencia de un líder. 
  • Capítulos, forman una estructura horizontal de personas de diferentes escuadras con una misma especialidad.
  • Gremios, una estructura informal de personas de diferentes tribus que tienen un interés común.
 Estas estructuras son cambiantes e incluso la figura del líder puede cambiar de un proyecto a otro, este sistema da autonomía al personal implicado y les permite participar y especializarse en sus áreas de interés, que son las áreas en las que más pueden aportar. 

 De esta manera se puede conseguir que el TPM se defina como la gestión de la autorrealización, una vez satisfechas las fases anteriores de la Pirámide de Maslow, que son las necesidades fisiológicas, la seguridad, el reconocimiento social y el reconocimiento individual; al considerar los siguientes principios clave:

  • El trabajo satisface el deseo de autorrealización.
  • Personas y el trabajo están en una relación cíclica.
  • Encontrar un propósito en el trabajo aumenta la motivación y la pasión. 

 Para una organización, poner en marcha este tipo de estructuras aumenta la velocidad y simplifica los procesos, reduce las dependencias, facilita la resolución de problemas, minimiza el control jerarquico sustituyendolo por auto-control, promueve la claridad y la transparencia a la vez que mejora el ambiente de trabajo.

Friday, 12 April 2019

ISO 55001 Asset Management as a tool for Value Investing

 Value investing is the strategy of investing in stocks that trade at less than their intrinsic values. In other words, the goal of value investors is to determine companies that they believe are undervalued relative to the market or are trading at a discount to their intrinsic worth. 

 Therefore, this estimation of the intrinsic value is key when selecting companies to invest in, given the difficulty of calculating them and the uncertainty of the sectors, investors, exchanges, security, and the distortion of the process.

 Valuation of companies is mainly done by considering indicators such as the Price-to-Earning ratio (P / E ratio), Price-to-Book ratio (P / B ratio), Debt-to-Equity ratio (D / E ratio), Free Cash Flow (FCF), and  Price / Earnings to Growth ratio (PEG ratio).

 In addition to this, it should be considered that this investment strategy is based on the long term, so that a good administration by the management team will add value to the investor, while a bad administration will destroy it, regardless of the initial values of the indicators evaluated.

What's about physical Asset Management?

 Correct physical assets management has as its main function to coordinate the activities of an organization to obtain value from physical assets, that is, that these assets must be capable of generating value, whether by their use, ownership or custody.

 But in addition, these assets have an intrinsic value, which can be determined as their sale value at a given time, correct management will be able to maintain and even increase this value.

 Physical assets management, according to ISO 55001, consider that these assets must have objectives that must be completely aligned with the objectives of the organization; and it must extend to the entire life cycle of the physical assets.

 The life cycle includes CAPEX, understood as the costs of design, acquisition, installation, and commissioning; OPEX, which covers operating, maintenance, and risks costs; and renovation, disassembly, and disposal.

 The management of physical assets increases the value that this generates by improving the Overall Equipment Effectiveness - OEE, which is an indicator that combines the availability of equipment, its performance and the quality of products or services produced.

OEE = Availability * Performance * Quality

 In addition, it increases the intrinsic value of the physical asset by optimizing its life cycle and controlling its obsolescence.

The analysis and evaluation of the management of the physical assets of a company are fundamental for Value investors since this management has a direct impact both on its capacity to generate value and on its intrinsic value throughout its life cycle.

Thursday, 28 February 2019

La Gestión de Activos Físicos como herramienta para la Inversión en Valor

 La Inversión en Valor, más conocida como Value investing, es la estrategia de invertir en acciones que cotizan por debajo de su valor intrínseco, es decir, el objetivo de un inversor Value encontrar empresas que considera que tienen un valor de cotización por debajo de su valor intríseco, con la esperanza de que este valor de cotización aumente hasta igualarse con el intrínseco.

 Por lo tanto, esta estimación del valor intrínseco es clave a la hora de seleccionar las empresas en las que invertir, dada la dificultad de su cálculo y la incertidumbre de los sectores económicos los inversores deben aplicar un coeficiente de seguridad que distorsiona el proceso.

 La valoración de las empresas se realiza, principalmente, considerando indicadores como Ratio Precio - Beneficio (P/E ratio), Ratio Precio - Valor Contable (P/B ratio), Ratio Deuda - Patrimonio (D/E ratio), Flujo de Efectivo Libre (FCF), Ratio Precio - Beneficio a Crecimiento (PEG ratio).

 Además de esto se debe considerar que esta estrategia de inversión está basada en el largo plazo, por lo que una buena gestión por parte del equipo directivo añadirá valor al inersor, mientras que una mala gestión lo destruirá, independientemente de los valores iniciales de los indicadores evaluados.

¿Y la Gestión de los Activos Físicos?

 Una correcta gestión de activos físicos tiene como función principal coordinar las actividades de una organización para obtener valor de los activos físicos, es decir, que estos activos deben ser capaces de generar valor, ya sea por su uso, propiedad o custodia.

 Pero además, estos activos tienen un valor intrínseco, que se puede determinar como su valor de venta en un momento dado, una gestión correcta será capaz de mantener e, incluso, aumentar este valor.

 La gestión de activos físicos, según ISO 55001, considera que estos activos deben tener unos objetivos que deben estar completamente alienados con los objetivos de la organización; y debe extenderse a todo el ciclo de vida del activo físico.

 El ciclo de vida incluye el CAPEX, entendido como los costes de diseño, adquisición, instalación y puesta en marcha; OPEX, que abarca los costes de operación, mantenimiento y riesgo; y de renovación, desmontaje y eliminación.

 La gestión de activos físicos aumenta el valor que este genera mediante la mejora de la Eficacia Global de los Equipos - OEE (Overall Equipment Effectiveness), que es un indicador que combina la disponibilidad del equipo, su rendimiento y la calidad de los productos o servicios producidos. 

OEE = Disponibilidad * Rendimiento * Calidad

 Además, aumenta el valor intrínseco del activo físico optimizando su ciclo de vida y controlando su obsolescencia.

 El análisis y evaluación de la gestión de los activos físicos de una empresa resulta fundamental para los inversores Value ya que esta gestión incide directamente tanto en su capacidad de generación de valor como en su valor intrínseco a lo largo de todo su ciclo de vida.

Wednesday, 30 January 2019

Hot Rolling of Steel Long Products

This article has been written by Javier Aseguinolaza, CEng, Director of ATECMASID, S.L.

 The hot rolling of long steel products has stabilized as a sector, starting in 2015, since the crisis around 2011 and especially in Spain since 2008, in terms of production. Again the factories and companies grow, in general, maintaining their competitiveness. However, it is also key to maintain a certain technological growth, which in many cases is unknown from outside the sector.

 In profiles, 10 years ago S 355 J0-J2 steel grades, had limited consumption generally limited to large or heavy sections, and S 420 and S 460 were hardly consumed, only under special specifications and even only in the singular construction market. In bar, something similar happened, but under own specifications, and differentiating the destiny in the construction with respect to other sectors like automobile or industry of certain technology. In special profiles destined to shipbuilding, automobile, and other particular applications, as well as in rail, the evolution has been produced more accentuated towards the supply of special qualities, higher performance, and also with a better finish.

 In this evolution has also been key technological progress, the adoption or modification of certain aspects of process and material (steel), which establish significant differences between those who are able to offer high-performance products and therefore, higher value-added and price, and those that remain as followers in terms of leadership, but now also in technological terms. This differentiation may be originated by strategic decisions, but undoubtedly, it is generally influenced by the capacity of each factory in the future, that is, by the assessment of the capacity that a particular facility could have to produce better products in the future medium term, which in steel can be 5 years.

 The technological base, of any field or sector, is forged in R + D + i activities that are carried out between research centers and the industrial facilities of smelting, steelmaking and rolling. These bases end up defining how the products, processes, and facilities are and will be, and they are what the managers, employees, and workers of any steel company face, from a salesperson to the one who monitors the ammeter in the foundry.

 The sector is constantly evolving, at the level of steel compositions and qualities, at the level of equipment design and engineering of facilities and manufacturing processes, and at the level of efficiency and productivity. In addition to the market, it is key to keep up to date on the three terms mentioned and where news is constant.

 The personnel, in general, and of different functional and hierarchical level, need to be trained and know these aspects, both in terms of their specific work environment, and in relation to the activity of their company in the sector. This need for personnel derives from the company's own need for its personnel to understand the business and the influence on sales, which every person, activity, and process has in the steel industry. Nowadays, every aspect of productivity and quality has, or may have in certain circumstances, a relevant influence on the success of these factories.

 This reality is what took me now a little more than three years, to plan and develop a "course of hot rolling of long products", of which I have only received great satisfaction, and in which our own vision of the market is exposed , the metallurgical base of the product and the constant evolution in the qualities of steel, the design of the hot forming process of  steel, and the final processes together with the keys of efficiency and productivity. This year the course is on March 14 and 15 in Madrid,