Valuation of coefficients affecting modeling factors in the optimal organization structure design problem in make-to-order operations
Abstract:
This paper addresses the valuation of coefficients that affects the organizational structure design model in a make- to-order (MTO) operation environment. A mathematical model was presented to aid an operations manager in an MTO environment to select a set of potential managerial layers to minimize the operation and supervision cost. This model examines the span of control (SOC) problem and provides a quantitative approach to the organization design problem and is intended for applications as a design tool in the make-to-order industries. With a given Work Breakdown Structure (WBS) for any specific project, solving this model leads to an optimal organization structure design. In order to solve this model, it is necessary to determine the coefficients for modeling factors. These factors consider allocation tasks to workers, including complexity and compatibility of each task with respect to workers, and the requirement of management for planning, execution, training and control in a hierarchical organization. An implementation of this model was made with a particular group of companies resulting in the selection of a feasible span of control for this type of organizations.