1. Classification of Processes Order from Chaos Version 2 – Post Harwell update Ian Dalling - Unified Management Solutions CQI Nuclear Special Interest Group Meeting – Harwell June 2011 ImplementationIntegrityIntegration Intelligence Ingenuity

2. Copyright Notice The author, Ian Dalling, owns the copyright of this presentation. No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), without prior written permission of Ian Dalling. This presentation may be used freely for private study or research purposes. Requests for permission to reproduce all or part of this document must be addressed to: Mr Ian Dalling, Unified Management Ltd, 9 Little Lane, Alverstoke, Gosport, Hampshire PO12 2LA, United Kingdom. Tel: +1695 728059 or +44 2392511043 Email: IanDalling@live.com anDalling@live.com www.UnifiedManagement.com

3. Presentation Contents FIRST PRINCIPLES FIRST PRINCIPLES FIRST PRINCIPLES FIRST PRINCIPLES Emergence of managementEmergence of managementEmergence of managementEmergence of management Essence of managementEssence of managementEssence of managementEssence of management Structure and dynamicsStructure and dynamicsStructure and dynamicsStructure and dynamics Plan-do-check-actPlan-do-check-actPlan-do-check-act Rule or map?Rule or map?Rule or map?Rule or map? Principal process typesPrincipal process typesPrincipal process typesPrincipal process types TAXONOMY PRINCIPLES TAXONOMY PRINCIPLES TAXONOMY PRINCIPLES TAXONOMY PRINCIPLES Classification examplesClassification examplesClassification examplesClassification examples Why classify?Why classify?Why classify?Why classify? Taxonomy design principlesTaxonomy design principlesTaxonomy design principlesTaxonomy design principles 12 ELEMENT TAXONOMY 12 ELEMENT TAXONOMY 12 ELEMENT TAXONOMY 12 ELEMENT TAXONOMY Circular formatCircular formatCircular formatCircular format Linear formatLinear formatLinear formatLinear format SynergySynergySynergy APPLICATION TO MANAGEMENT SYSTEMS APPLICATION TO MANAGEMENT SYSTEMS APPLICATION TO MANAGEMENT SYSTEMS APPLICATION TO MANAGEMENT SYSTEMS Applicability potentialApplicability potential Stakeholder specific requirementsStakeholder specific requirements Overt and covert processesOvert and covert processes Standards and regulations mappingStandards and regulations mapping Variation in elements applicationVariation in elements application GENERAL APPLICATION GENERAL APPLICATION GENERAL APPLICATION GENERAL APPLICATION Potential universality across management instrumentsPotential universality across management instruments SUMMARY AND CONCLUSIONS ADDITIONAL SLIDES Organisation Universal ModelOrganisation Universal Model Overall Process TypesOverall Process Types June 2011 ©2011 Unified Management Solutions

4. FIRST PRINCIPLES June 2011 ©2011 Unified Management Solutions

5. Emergence of Management Systems June 2011 ©2011 Unified Management Solutions 13,750,000,000 Years since big bang Homo sapiens evolved between 400,000 and 250,000 years ago Natural Systems and Processes Engineered Systems and Processes Management Systems and Processes

6. Essence of Management June 2011 ©2011 Unified Management Solutions Manager Consciousness ? That which is managed Process of managing

7. Structure and Dynamics June 2011 ©2011 Unified Management Solutions ? Process of managing That which is managed Structure Dynamics hosts creates, maintains and destroys Manager consciousness

8. Structure and Dynamics June 2011 ©2011 Unified Management Solutions ? Process of managing That which is managed Manager consciousness Structure Dynamics System Process Management System A C D P

9. Structure and Dynamics June 2011 ©2011 Unified Management Solutions ? Process of managing That which is managed Manager consciousness Structure Dynamics System Process Management System Management topic structure (taxonomy) A C D P

10. Application of Plan-Do-Check-Act A C D P A C D P A C D P A C D P A C D P A C D P A C D P A C D P A C D P A C D P A C D P A C D P A C D P A C D P A C D P Task Team Project Middle Management Top Management ‘Strategy’ Increasing Cycle Frequency Increasing Cooperation & Coordination a stratified pyramid of plan-do-check-act cycles

11. Process Rule or Process Map? 1 Structure and Process Justification (Safety Case) Permitted structures and processes (operational envelope) (Operating Rules) Mandatory maintenance, inspection, and test requirements (MIT Schedule) Possible Structures and Processes Mandatory and permitted structures and processes Non-permitted structures and processes Known unsafe structures and processes Structures and processes outside scope of ‘structure and process justification’ Risk Assessment

12. Process Rule or Process Map? 2 Structure and Process Justification (Safety Case) Permitted structures and processes (operational envelope) (Operating Rules) Mandatory maintenance, inspection, and test requirements (MIT Schedule) Possible Structures and Processes Mandatory and permitted structures and processes Non-permitted structures and processes Known unsafe structures and processes Structures and processes outside scope of ‘structure and process justification’ Risk Assessment Generic Process Rule  Only work to current approved documents  Retain record for 7 years Process Map or Definition References management topic taxonomy

13. Principal Process Types Supply (input) Delivery (output) CoreSupportingContingency

14. TAXONOMY PRINCIPLES (CLASSIFICATION) June 2011 ©2011 Unified Management Solutions

15. Examples of classification Structure and dynamics Species Periodic table of chemical elements Right wing and left wing politics Relationships (superior, peer and subordinate) Branches of knowledge and library books Supermarket products Organisations (size, industry size etc) Alpha/numeric Mathematical set theory Human emotions Professions Age and gender Personnel fitness Risk (high, medium, low) Prioritisation (first, next, last) Processes???

16. Why do we classify? Simplify and create orderliness (lower entropy) Improve understanding: Patterns Group characteristics and synergy Hierarchy Improve communication mutually understood conventions and definitions Be able to manage more successfully

17. Taxonomy Design Principles 1. 1.Hierarchical element structure 2. 2.Plan-Do-Check-Act embedded 3. 3.Reflect theory and practice 4. 4.Distinct non-replicated element characteristics 5. 5.Element clusters facilitate generic control and guidance 6. 6.Elements facilitate simple interrelationships 7. 7.Inclusive element scopes 8. 8.Universal, concise and intuitive element titles 9. 9.Comprehensive - all organisational structures and dynamics covered.

18. 12 ELEMENT MANAGEMENT TOPIC TAXONOMY June 2011 ©2011 Unified Management Solutions

19. Act Element 12 Plan Element 1 Check Elements 10 and 11 Do Elements 2 to 9 Management Topic Taxonomy 10 12 11 1 2 3 4 5 6 7 8 9 Assessment Controls and Personnel Commerce Data Matter and Energy Suppliers Product and Service Delivery Contingencies Change Reactive Proactive Monitoring Review Action and Planning & control Leading KPI’s Lagging KPI’s Root causes Immediate causes Evidence Structure & process Corrective & preventive Strategic Project Tracking Vision & policy Objectives & targets Legislation Opportunity & Risk Justification Tools & techniques Review Planning Outputs Organisation Responsibilities Interactions Employment lifecycle Structure Control Databases Security Processing Conventions Organisation entity Stakeholders Selection Handling & use Processing Waste & emissions Infrastructure Maintenance, inspection & testing Approval Specification & ordering Receipt Performance Projects Planning General Testing & training Events Non-award Marketing Proposal Implementation Post completion Plan Element 1 Act Element 12 Do Elements 2 to 9 Check Elements 10 and 11 Finance

20. 12. Review and Action 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 10. Reactive Monitoring 11. Proactive Monitoring PLAN DO CHECK ACT Twelve Element Structure 10 12 11 1 2 3 4 5 6 7 8 9 Assessment Controls and Personnel Commerce Data Matter and Energy Suppliers Product and Service Delivery Contingencies Change Reactive Proactive Monitoring Review Action and Planning & control Leading KPI’s Lagging KPI’s Root causes Immediate causes Evidence Structure & process Corrective & preventive Strategic Project Tracking Vision & policy Objectives & targets Legislation Opportunity & Risk Justification Tools & techniques Review Planning Outputs Organisation Responsibilities Interactions Employment lifecycle Structure Control Databases Security Processing Conventions Organisation entity Stakeholders Selection Handling & use Processing Waste & emissions Infrastructure Maintenance, inspection & testing Approval Specification & ordering Receipt Performance Projects Planning General Testing & training Events Non-award Marketing Proposal Implementation Post completion Plan Element 1 Act Element 12 Do Elements 2 to 9 Check Elements 10 and 11 Finance

21. 1 Assessment and Controls 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring Vision and Policy Objectives and Targets Legislation and Standards Opportunity and Risk Assessment Structure and Process Justification Management Tools and Techniques Reviews Specialist Planning General Review Maintenance Review Selection Application Identification Evaluation Identify potential harm Identify stakeholders affected Assess risks Develop controls Assess residual risks 12. Review and Action 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 10. Reactive Monitoring 11. Proactive Monitoring PLAN DO CHECK ACT

22. 3 Commerce 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring Entity Maintenance Stakeholders Contracts Interfaces Licenses Accreditations and Certifications Registrations Finance Revenue Payments Cash

23. 4 Data 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring Control Databases Access Processing Conventions Structures Accounting Key Performance Indicators Finance ? Matter and Energy Personnel Infrastructure Condition Energy ? Carbon Waste Working Hours Management System External Internal Documents - company - project Records Filing Numbering and Nomenclature Library Lifecycle Literature and Web Site Notice Boards Signage Creation Retention Disposal Computer Software

24. 5 Matter and Energy 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring Selection Handling and Use Processing Maintenance, Inspection and Testing Waste & Emissions Infrastructure Receipt Storage Transport Work Environment Estates Facilities Plant and Equipment Personal Protective Equipment Configuration

25. 6 Suppliers 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring Approval Specification and Ordering Receipt Performance Evaluation Reconciliation and Payment Vetting Classification Audit Data Collection 12. Review and Action 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 10. Reactive Monitoring 11. Proactive Monitoring PLAN DO CHECK ACT

26. 7 Service and Product Delivery 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring Marketing Pre-contract Failure to Obtain Contract Contract Implementation Post Contract Completion Activities

27. 7 Service and Product Delivery+ 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring Marketing Proposals Contract Non-award Review Contract Implementation Post Completion Activities Business Development Preparation of Proposals Contract Implementation Lost Contract Evaluation Post Contract Evaluation 12. Review and Action Potential Contract Classification

28. 8 Contingencies 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring Planning Nonconformances Succession Planning Project Arrangements Testing and Training Insurance Symptom Based Procedures First Aid General Arrangements Emergencies, Crises and Disaster Recovery Standard Procedures Events General Management Classification Product Recall

29. 9 Change 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring Corrective and Preventive Strategic Structure and Process Project Lifecycle Markets Product/Service Definitions Vision and Policies Organisation Management System Infrastructure Classification Registration Approval Review Implementation 12. Management Review

30. 10 Reactive Monitoring 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring Evidence Immediate Causes Root Causes Lagging Key Performance Indicators (KPI’s) 12. Management Review and Action 9. Change 12. Review and Action 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 10. Reactive Monitoring 11. Proactive Monitoring PLAN DO CHECK ACT

31. 11 Proactive Monitoring 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring Planning and Control Leading Key Performance Indicators (KPI’s) Audits Benchmarking Inspections Self Monitoring Surveys 12. Review and Action 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 10. Reactive Monitoring 11. Proactive Monitoring PLAN DO CHECK ACT

32. 11 Proactive Monitoring+ 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring Types Leading Key Performance Indicators (KPI’s) Audits Benchmarking Inspections Self Monitoring Surveys 12. Review and Action 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 10. Reactive Monitoring 11. Proactive Monitoring PLAN DO CHECK ACT April 2011©2011 Unified Management Solutions increasing formality increasing frequency and detail Each Shift Daily Supervisor Inspections Weekly Manager Inspections Yearly 3 rd Party Audits Supplier Audits Internal Audits Self Monitoring Continual Monthly Surveys Benchmarking What? When?

33. 12 Review and Action 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring Planning Review Outputs Agenda Actions Product/service delivery Technological options Vision and Strategy New and changed aspects and hazards Reactive monitoring Stakeholder interactions, needs and expectations Proactive monitoring Use of management tools 12. Review and Action 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 10. Reactive Monitoring 11. Proactive Monitoring PLAN DO CHECK ACT Action Plan Minutes Meetings Schedule Reports, Discussion and Decisions Agenda Templates Legislation Suppliers Internal projects and change Sales, marketing and prospects Personnel Objectives Key Performance Indicators Management System

34. Taxonomy Synergy 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring   Organisation failures have multiple contributing causes related to multiple taxonomy elements   Nearly all major loss events have an impact on total performance   Quality   Health and safety   Environment   Financial   Reputation   Elements are like a chain

35. APPLICATION OF TAXONOMY TO MANAGEMENT SYSTEMS June 2011 ©2011 Unified Management Solutions

36. IMS Taxonomy Application 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring   Applicable to any organisation, irrespective of type and size.   Applicable globally.   Enables alignment throughout supply and delivery chains.

37. + Stakeholder Specific Requirements Stakeholder Specific Controls 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring + 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring Dedicated arrangements can be defined to comply with specific stakeholder requirements using the same twelve element taxonomy to complement the organisation’s generic twelve generic management procedures.

38. Overt and Covert Processes 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring Overt and covert processes can use the same twelve element taxonomy 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring

39. Standards and Management Regulations Mapping 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring ??? ISO17025 OHSAS18001 ISO14001 ISO9001 Construction, Design and Management Regulations Management of H&S at Work Regulations ???

40. Application Variation Across Taxonomy Elements   Others tend to vary considerably across organisations. 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring   Some applications of taxonomy elements tend to vary very little across organisations.

41. GENERAL APPLICATION OF TAXONOMY TO MANAGEMENT INSTRUMENTS June 2011 ©2011 Unified Management Solutions

42. Taxonomy Universal Application 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring Taxonomy has potential to be universally applied to the structuring of:   Management standards   Legislation   overall structuring   individual statutes and regulations   Licensing arrangements   Databases   Records   Key performance indicators and dashboards   Root cause analysis   Audits and inspections   Management review   Problem-solving   Education and training programs   Knowledge structures   Artificial management intelligence   Research planning

43. Summary and Conclusion 1. Assessment and Controls 2. Personnel 3. Commerce 4. Data 5. Matter and Energy 6. Suppliers 7. Service and Product Delivery 8. Contingencies 9. Change 11. Proactive Monitoring 12. Review and Action PLAN DO CHECK ACT 10. Reactive Monitoring All of an organisation’s processes can be controlled and guided via twelve management procedures An organisation’s management system can be totally integrated with no residual fragmented parts The taxonomy can be applied universally to a range of management instruments and processes Potential to align and streamline management processes Ian Dalling may be contacted via iandalling@live.com

44. ADDITIONAL SLIDES June 2011 ©2011 Unified Management Solutions

45. ©2005 Unified Management Ltd Organisation Universal Model Performance Internal Climate Stakeholders Consciousness Management System Competence Base Organisation Culture Corporate Leadership (Top Management) Human Resource Data, Matter, Energy etc Processes Delivery Chain Supply Chain

46. Overall Process Types trigger Performance Internal Climate Stakeholders Consciousness Management System Competence Base Organisation Culture Corporate Leadership (Top Management) Human Resource Data, Matter, Energy etc Processes Delivery Chain Supply Chain Management Systems and Processes Natural Systems and Processes Engineered Systems and Processes

47. The End Feedback is always welcome and is used to drive continual improvement for the good of everyone IanDalling@live.com