Jaakko Dietrich Comparative Analysis of Operational Decision - Making at Chinese and Finnish

The objective of the thesis was to analyse operational decision-making at the Changshu Paper Mill in China and the Kymi Paper Mill in Finland. Specifically, the purpose of the study was to examine critical areas of and differences in decision-making practices in selected problem situations. The thesis also sought to explore how operational decision-making at Changshu differs from the local practices at Chinese paper mills. Based on the differences and critical areas identified in the analysis, the aim was to identify possibilities for improving operational decision-making and make suggestions for further development projects. The thesis builds on three main information sources: literatures on decision-making, culture and knowledge management, interviews, and questionnaires. Semi-structured interviews were the primary source of information at both mills. Questionnaires were used to evaluate the importance of different information sources for the selected production problems. The interviews indicated that the personnel at both mills were, as a rule, satisfied with current decision-making practices. Furthermore, the decision-making processes at the two mills were to a large extent similar: i.e., most of the decisions were made at the lower levels of organisational hierarchies, troubleshooting was based on team work and problem-solving relied heavily on past experience and tacit knowledge. Moreover, the observed problem areas were similar: e.g., cross-departmental communication were seen as problematic, in colour deviations variable reject practices were observed in shifts, and more customer specific information was required at both mills. The differences in operational-decision making were mainly related to communication practices and the use of structured problem-solving methods and instructions. At Changshu, decisions were made at higher hierarchy levels, more direct instructions were used and the superiors were more involved with the work at the paper machine. In contrast, at Kymi decisions were made at lower hierarchy levels, decision-making was more independent and machine personnel made less use of direct instructions. Furthermore, personnel at Kymi placed more importance on experience and teamwork and less importance on superior, process computer and other information sources than personnel at Changshu in similar problem situations. In addition to culture, differences in organisational structures and experience of the personnel were the most important reasons for different decision-making practices at the mills. Several critical areas in decision-making at the mills were identified, most notably transfer of tacit knowledge, facilitation and management of structured troubleshooting sessions, communication with maintenance, and variable reject practices. In each of these areas, suggestions for improvements were made. …