It is of very little use to talk about prevention without clearly knowing what it means, and even less without having an idea of how to make it feasible. The fundamental objective of this work is to expose about it, trying to be eminently practical in order to allow its readers to put into practice the systems that have to be exposed in your organizations or sectors.
Issues related to economics, safety and ethics, oblige us to make the practice of prevention, and the activities leading to them, be an obligation, and for this reason generate a thought fully focused on that objective.
Prevention involves preparing ahead of time to prevent harm. It implies from a mental point of view foreseeing a risk, damage or danger in order to take or adopt the necessary measures to avoid its realization.
Preventing or anticipating implies a mental inclination to become aware of the dangers or damages that threaten a certain activity, knowing that measures should be implemented to prevent their occurrence.
Within this prevention, it is essential to avoid the occurrence of damage, but many times the action can be focused on preventing further damage or reducing it to a minimum, once certain warnings have been generated.
Now we are talking about damages related to:
- Failures in processes Failures or shortcomings in products or services Failures in internal controls Accidents Ecological or environmental damage Occupational diseases Internal or external fraud Damage due to weather or natural factors Accidents or damage caused by the use of products or services Safety issues Damage to facilities, machines and equipment
Today more than ever before, the danger of terrorism, damage to computer systems, million-dollar scams, accidents, environmental damage and many others, cause losses that can endanger or risk the continuity of the company. Preventing this from happening is a fundamental responsibility of managers, but other members or members of corporations must also pay attention to it.
In this regard, the staff cannot say: "it is the managers who have the obligation to prevent." Everyone must participate in prevention, general and specific to their area or activity, but it is up to the top managers of the organization to set policies and strategies conducive to the defense of the institution's assets.
Prevention systems as methods of continuous improvement
The detection of risks and their subsequent prevention in a systematic way is one of the most effective forms of continuous improvement. Thus, if you focus on a certain area, process, activity, product or service, it is possible to discover in time the possible risks that are inherent to it, proceeding a posteriori to generate measures to avoid the occurrence of such risks or defections.
We must always bear in mind that situations are in permanent or continuous change, which is why we must also review the risks in light of new circumstances, accompanying this with new precautions.
It is very important in this monitoring, to monitor the information about the losses or problems that have occurred in other companies or processes, and then take the necessary actions in order to update, improve and restructure the defensive measures.
Negative Analysis
Much is said about prevention, but very few really know how to make it feasible. Others say: "prevention is possible, but how is it done?"
For those who do not believe in the possibility of prevention, and for those who do believe in it but do not know how to make it feasible, the negative analysis methodology has been created.
The name of this method will strongly attract attention, since the reason for its name derives from focusing on thinking about what can go wrong, and from this generate creatively or investigate ways to avoid the occurrence of these events.
To make this happen, there is a way of working, thinking and certain rules to follow. The objective of this work is to show that prevention is feasible, that there are methods and how they can become a reality.
In the case of negative analysis, we can give as an example a case related to quality or safety issues. For example, in a sanatorium the possibility of mixing up the bottles due to their similarity, and the risk of making incorrect applications. If this can take place, the questions are: how to avoid it? What can be done so that such an accident or error does not take place?
Negative analysis can be applied to quality issues, such as safety, maintenance, process operation. And when it comes to quality or safety, we talk about both products and services, as well as internal processes in each and every one of the areas or activities of the organization.
Its methodology
If we want to prevent a negative event, it will be good and necessary to think about it. The first and fundamental thing is to become aware of the various types of risks, because without awareness of them there will be no motivation and real interest in adopting preventive attitudes.
Unfortunately, and it is difficult to understand, the vast majority of professionals, managers, businessmen, and public officials among others do not take or are really aware of the various risks that each activity carries with it, consequently not adopting the measures required to prevent these from taking place.. Furthermore, there are not even foreseen actions that reactively allow to face a failure or accident.
Although negative analysis also serves to adopt reactive measures, its approach is focused on preventively avoiding the occurrence of a failure, accident or waste, among other evils that may occur during the development of business activities.
To think about it, it is best to do it as a group with the inclusion of people from the sectors and processes, as well as with professionals or collaborators from outside the company. These external ones allow to broaden the perspective and see the processes, activities, products and services of the company with different eyes and paradigms.
All personnel as well as managers have the obligation to participate in such meetings. The Negative Analysis must be executed in all areas and processes of the organization.
Once the group has been assembled, it is best to work on the basis of what is called a “storm or brainstorming”. The good thing about this is increasing experiences, ideas and knowledge, crossing and fostering new perspectives based on the crossing of opinions, in addition to taking risks detected by some and solutions detected by others.
It is essential to have the appropriate elements, such as a room equipped for greater relaxation and tranquility of the participants, a blackboard, and enough papers for taking notes.
The meeting should be led by a leader, who should encourage and motivate all participants, avoid confrontations, support group work, channel good human relationships, and make everyone aware of the critical importance of their participation and ideas.
Meetings must be held on a regular basis, be it weekly, biweekly or monthly, depending on the risk levels or risks to be addressed.
Both the personnel of each sector or area, as well as those who participate in the various processes, must participate in these meetings, and in the latter case even if they are from different areas. There is not and should not be a problem in participating in the same personal meeting of different hierarchical levels.
Regarding the external ones, they must be invited, and they can be external to the sector or department, external regarding the process or activity or external to the company, in the latter case as a consultant. Serving this participation to inject new points of view not seen by those used to working every day on the same processes.
The results will be better as the training of the personnel increases, since in such a way the greater knowledge of different techniques or procedures will allow them to have a greater conceptual breadth.
The risks in general should first be fixed, proceeding a posteriori to deal with the risks in particular.
Once a danger has been detected, one must proceed to reason on how to avoid its occurrence. This may arise immediately in the meeting or start from the meeting a whole process aimed at its solution, which may be in the hands of consultants or experts outside the company.
It is very important that the risks detected and their possible solutions are recorded in a book enabled for this purpose, not as a merely bureaucratic question, but as a way of making it clear that if a risk has been detected it is an obligation to provide a solution or response to the same as soon as possible.
Now, a risk can be detected and due to the possible seriousness of its consequences, there is no time to wait for the group meeting, in which case it is essential that the risks are immediately exposed in special forms and in duplicate, remaining in the power of the person who does Get the risk report in duplicate with stamp and signature of receipt.
A monthly report must be issued on the risks detected and the solutions implemented to prevent their occurrence or reduce damage. Example: hail cannot be avoided in a cereal field, but hail insurance can be purchased. On the other hand, in other types of activities, risks can be avoided by means of a system of roofs or covers intended for such purposes.
The important and fundamental thing is in the first instance to recognize the different risks, and then in a second phase to proceed to detect and implement the most effective solutions.
Conclusions about the method
Managers, officials, and staff must be taught to think in terms of not only the possibility of detecting new applications for a product or service, or discovering new businesses, but also knowing how to recognize dangers. Who but the people who are day by day in the places or fundamental jobs to recognize in a timely manner the risks that can directly or indirectly harm the company.
The risks exist, and the way to prevent them also, it is only necessary to be fully prepared to face them in a methodical and systematic way.
Main steps on the method
1. Awareness in relation to the existence of risks and dangers.
2. Recognize the existence of methods designed to prevent the occurrence of such events, or the possibility of reducing the occurrence or damage.
3. Work systematically and regularly in the application of the Negative Analysis.
4. Treat the Negative Analysis method as a group activity or as an individual contribution with the characteristics of suggestions.
5. Use as fundamental tools:
- Brainstorming Mind Mapping Lateral Thinking Systemic Thinking
System for Preventive Maintenance and Repair Monitoring
Through the application of special software it is possible both preventive management in terms of maintenance, especially of machines, equipment, vehicles and facilities, also serving to evaluate the different performances of inputs and machinery.
Acting by reaction, or running after events does not lead to the achievement of greater profits, but they eat away at them to the extent that this entails breakdowns and breakages, quality defects and downtime.
In another aspect we have that traditional accounting shows us what happened and roughly, without making a detailed analysis of what was spent and why. Given the need to give a quick response to daily problems, the managers or managers authorize the necessary expenses to correct the problems.
The question is to evaluate before authorization the frequency of each specific repair (by type, location, machine), the material used, the person in charge of the repair, among others. In this way, you will avoid correcting only symptoms and reaching the root causes.
So if we have continuous tire wear ahead of schedule, in the same unit and in the same location, we can find that the problem is in the shock absorbers. In the same way, continually changing lighting lamps without paying attention to the frequency and location makes us lose sight of the fact that these problems can be caused by power surges.
This way of working allows not only to discover the existence of another cause or technical reason that generates the various inconveniences, but also to be able to discover problems in the materials or supplies used, misuse of the machines, lack of capacity of those in charge of the repairs, or even worse still, the existence of fraud.
The generation of this software is not expensive, its development time is not long, and it is quickly recovered thanks to the significant cost reductions caused by its use.
Predictive Maintenance
Maintenance costs, measures to prevent breakdowns and breakages, and consequently the risk of accidents are significantly reduced if sensor systems interrelated to computers are applied to machines and equipment, which allows to capture changes in vibration level in time, gases, temperatures and any other critical factor that you want to monitor to detect in time the needs for maintenance and / or repairs.
Information systems
Nothing is as important as an effective information system in order to achieve a high degree of prevention. Regarding financial, commercial, operational or personnel issues, as well as those related to internal control, having adequate information in a timely manner is essential to detect, evaluate and analyze deviations, irregularities or misplaced events.
If something is important to take into consideration before starting an activity, it is what information will be needed, in what format, with what periodicity or frequency, who will be responsible and with what degree of detail.
The information system must allow detecting in time all kinds of irregularities that may affect the normal development and development of the organization. The Balanced Scorecard or the Dashboard allow us to have such information in an agile way, notifying us how close or far, due to the positive or negative, we are from the values set as objectives.
Early Warning System
This methodology allows staff to be fully involved in the task of alerting the organization to hazards. It basically consists of giving the personnel checkbooks with forms of different colors depending on the type of risk or danger.
When the personnel in the factory, hospital or other environment detect a risk, they register it in the respective form which is deposited in mailboxes for this purpose, which are strategically distributed in various places of the work environment.
With an established frequency, personnel assigned to this effect withdraw the forms and send them to personnel in charge of receiving the alerts, evaluating them, and making decisions for their immediate resolution.
Immediate Alert System - Andon
As previously described, but with the use of an internal signal system or intercoms. Whether the risks can be high, or the reaction times must be very fast, the detection of any irregularity motivates the immediate intervention of specialized and / or support personnel in order to solve or avoid the detected situation. In factories that practice Just in Time this system is called Andon.
Benchmarking applied to prevention systems
Benchmarking as a methodology aimed at detecting and applying the best practices detected in competing companies or in other industries, serve in the case of prevention systems to compare the various methods and tools used by a company with those used by dedicated companies to the same or other activities, to take said practices adapting them to the needs and technical, material, economic and human capacities of the company.
The Double E or External Teachings
This refers to negative events that have occurred in other companies, and that serve as teaching in order to avoid their occurrence in the company that applies it. Prevention systems applied by other organizations and which have been made aware of through different channels are also included.
The negative event, of which knowledge has been taken, is registered in a database enabled for this purpose. These events must be made known to all personnel so that they can give their opinion and make suggestions regarding the prevention methods or systems to be applied.
The Five "S"
The activities that comprise it make it possible:
- Avoid the loss of instruments or components Accidents occur Detect risks, dangers or defects in time.
What does this system consist of? In something very simple, and currently widely practiced, but it was not so much a time ago when the common thing especially in workshop areas was a high degree of dirt and disorder.
The first step is to classify and separate the necessary elements and instruments from those that are not in the short term. There is a strong tendency in individuals to accumulate elements, with or without reason, it is a psychological inclination, which must be overcome in order to stay in the usual workspace with the essential elements.
The second step is to conveniently locate each of these essential elements for the purposes of faster detection, avoiding their loss, breakage or theft.
The third step involves maintaining cleanliness and order in the workplace, whatever the activity. This activity prevents accidents, improves the staff's mood and keeps the work environment healthy. Correct lighting, good aeration, sound levels and adequate temperatures are fundamental and essential to enable high levels of quality and productivity.
The fourth step consists of cleaning and security measures for the personnel, to go to the last step consisting of reviewing and reapplying the previous steps.
Poka Yoke
Its meaning is "error proof", and implies the creation of different methods, tools or components designed to avoid the occurrence of errors or accidents. Combined with Negative Analysis it generates multiple and very effective ways to avoid damages, accidents, defects or losses.
Graphic signs and signage
Their objective is to alert people about areas of risks or dangers, remember the handling and attention to pay in certain operations or activities, security measures to be taken in certain processes.
They must be visible, understandable, striking, and sufficiently impressive to produce the desired effects.
Memory Management and Organizational Learning
Organizational Memory and Learning Management (CMMS) is one of the most powerful ways to accumulate experiences and lessons in order to make continuous improvement in the daily activities and operations of the company feasible.
If the experiences and knowledge acquired are not conveniently and positively accumulated, there is a risk of repeating mistakes and not accumulating the lessons and learning acquired over time.
Managing a computer record to which all staff can have access to consult and record their own experiences is critical when structuring an organizational learning system.
Hiring and monitoring of staff
One of the most important factors for the competitiveness of the company is its staff, for this reason staff is also a critical element. Their hiring and subsequent monitoring of their physical and psycho-social condition is of fundamental importance when it comes to preventing the occurrence of damage to the company.
Hiring personnel with an unstable, strongly depressive, cyclothymic character, not suitable for team or group work, constitutes an element of disturbance as well as an element of danger for the organization. Hence the critical importance of personnel selection.
Human beings do not have an unchanging or unchanging state, hence the need to permanently monitor the change in moods and attitudes that may reflect a change in behavior that creates dangers for the organization.
What has been said so far regarding the psychological aspect must also be transferred to the physical aspect.
Many serious problems or accidents that already occurred or may take place in the future could be avoided if the conduct of the individuals who make up the organization were properly monitored.
Survey and Evaluation of Internal Control - Internal Audit
Analyzing and diagnosing the existence and proper functioning of the systems designed to avoid the occurrence of failures, deviations or non-compliance with the standards, objectives and established policies is critical and fundamental. Without a doubt, those who are best in a position to carry out such an evaluation are the internal auditors.
The internal audit should be recognized not as an administrative or bureaucratic expense, but as an authentic and true strategic cost, since the audit activity allows to verify and contribute to the proper functioning of the safeguard and information mechanisms. Without reliable information, neither effective controls nor decisions can be made. Bad controls and bad decisions end up generating losses.
It is unfortunate that many managers reward and focus their efforts and interest on generating income, but do not do the same with reducing or eliminating losses, or generating better controls that tend to preserve the continuity and competitive capacity of the company.
It is never too much to remember what happened to Banca Baring that focused more on derivatives operations with the aim of achieving huge profits, they atrociously neglected their internal controls, which led to their ending up in bankruptcy.
Statistical processes control
Tool rarely used by Western companies despite having emerged in the United States, and being widely disseminated by Deming, it is a very effective way to detect anomalies or irregularities in processes in time.
This is not the precise place to develop its methodology, but it is the place to express the critical importance that it has when it comes to preventing issues related to both the operation of the processes, and the smooth running of organizations in terms of its indicators and management ratios.
Only proper monitoring of the variations corresponding to the various indices allows us to recognize whether the system and processes are operating within their capabilities or are out of control.
Internal Control Matrix System / Internal Control Matrix
The interrelation of various critical factors with respect to the various activities, processes, products, services and areas or sectors of an organization is crucial when determining, analyzing and evaluating the existence and compliance of regulations (both internal and external) that avoid losses financial for the organization.
Currently considered as a fundamental concept for the administrative organization of companies, internal control -according to the Audit Procedures Committee of the American Institute of Accountants-, is defined as: the organization plan and all the methods and measures adopted in a business to safeguard its assets, verify the accuracy and security of accounting data, develop the efficiency of operations and encourage adherence to the prescribed administrative policy.
As an overcoming synthesis of the currently prevailing or traditional systems, and emphasizing modern and current management techniques, the Internal Control Matrix System arises, which can be defined as “the group activity of members of the organization who, through questionnaires and weightings dumped into a computer system achieves both preventive and reactive control, supplying the respective information at low cost and in real time, through the delegation of controls (or self-control) ”.
The Internal Control Matrix System allows a rigorous examination of compliance with both external standards and internal regulations and policies. It also verifies the correct use of the other control instruments, becoming an integrating tool for business management.
The Internal Control Matrix is a tool arising from the imperative need to act preventively in order to suppress and / or significantly reduce the multitude of risks to which the different types of organizations have been affected, whether private or public, with or non profit.
The numerous norms and regulations, be these of a tax, labor, ecological, consumer, accounting, banking, corporate, stock exchange, among others, originating from national (federal), provincial (state) and municipal organizations, oblige the administrations of the organizations to be very alert to the risks that the lack of compliance with them pose to their assets.
To these must be added the need to verify compliance with both internal regulations, as well as various standards on security and internal control, as well as to verify the subjection of the various areas or sectors to company policies.
Ishikawa's diagram
The Fishbone Diagram, also known as the Ishikawa Diagram, allows us to observe cause-effect relationships more clearly for later analysis. In the case at hand, it specifically allows the various causes to be interrelated with possible defects, problems, risks and inconveniences. It is always more useful if it is used in a group way in order to make use of the experiences and knowledge of the individuals that make up the analysis group.
Secondary causes or sub-causes can and should be added to the various primary causes, and so on until the various factors that affect the processes are broken down, and then proceed to weigh the relative importance attributable to each one of them.
Permanent Monitoring System (SMP)
When it comes to monitoring, what we are talking about is observing and analyzing the changes that have occurred in various ratios, indices and indicators, which may be warning us about variations or important events that affect the organization.
Thus, any abrupt change in the monthly, biweekly or weekly levels in customer satisfaction rates would be showing us problems in the company's processes. In the same way, changes in the levels of rotations, rates of income or expenses, among many other ratios, would be exposing us to the latent dangers that the company is facing.
The shorter the calculation periods, the more effective the result of such monitoring must be, which should be related to the application of Statistical Management Control.
Systemic thinking
The first thing is to understand the meaning of the system, meaning the interrelated set of elements that interacting with each other make up a unified whole. This last concept of unified is important because it reveals that it is not about the simple sum or grouping of components, but about their performance as a unit with a specific purpose or objective.
The elements in a system interact, and therefore any change or variation in one of them immediately generates a reaction in other components of the system.
If what we are trying to do is prevent, it goes without saying the importance of understanding how the elements and subsystems of an organization interact, in order to anticipate in time and form the probable or possible effects that will take place in the event of changes, reorganizations, decisions or variations.
If we know in advance the possible effects, we will be in a position to avoid certain events or to generate changes in the system aimed at avoiding possible damages, failures or defects.
That is why the importance of learning to think systemically, that is, to evaluate in time and form the consequences of the various decisions, changes or actions. Losing sight of the interrelationship of each component, element, process or activity in relation to the other constituents of the organization will not only prevent more effective control, but will also lead us to leave many weak sides.
Conclusions
The different methods described above combined and applied in a systematic way allow any organization, for profit or non-profit, public or private, to avoid damages, economic or material losses, and above all to preserve the capacity to generate added value.
Any of these methods applied individually give positive results, but much more are the benefits that have to be collected if they are combined and interrelated.
The time has come for managers and officials to give prevention systems and methodologies the value that they really have. Continuing to act by reaction has always been harmful and costly for organizations, but never as badly as it is today.
Continuing to wait for the "potholes" to occur and then plug them is not typical of competitive companies and value-added efforts, but rather of companies lacking the ability to think constructively and creatively.
Creativity is not only important when designing new goods or processes, but also when preventing or improving prevention systems.
Something very important when dealing with these systems or methodologies is to face them in a group way, thus achieving the sum of the knowledge, experiences and creative capacity of all the members.
Preventing is synonymous with eliminating waste, considering it in its broadest version or context. One must avoid losing both material goods, as well as losing valuable clients or high-value personnel. Many only audit or control the most visible losses, forgetting about hidden costs.
Bibliography
Internal Control Matrix System - Mauricio Lefcovich - www.gestiopolis.com - 2005
Internal Control Matrix - Mauricio Lefcovich - www.monografias.com - 2003
Negative Analysis - Mauricio Lefcovich - www.gestiopolis.com - 2006
Control System for Measurable Units / SCUM - Mauricio Lefcovich - www.tuobra.unam.mx - 2004
Kaizen - Mauricio Lefcovich - www.gestiopolis.com - 2004
Internal Audit - Mauricio Lefcovich - www.monografias.com - 2004
