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					BPR and TQM Side by Side Maher Dahdour
PhD Student and Adjunct Professor

Process Perspective
• • • Keeps the big picture in view. Focuses on work being done to create optimal value for the business. Advantages:
– – – Helps avoid or reduce duplicate work. Facilitate cross-functional communication. Optimize business processes.

• • •

When managers gain the process perspective they begin to lead their organizations to change. Question status quo. Don’t accept “because we have always done it that way” as an answer to why business is done in a particular way.

•

Allows managers to analyze business’s processes in light of larger goals.

2008 – Maher A. Dahdour

TQM and BPT integration

The nature of Business Processes

Cross-functional nature of business processes
Copyright 2006 John Wiley & Sons, Inc.
2008 – Maher A. Dahdour TQM and BPT integration

Process Redesigning methodology

2008 – Maher A. Dahdour

TQM and BPT integration

Organizational Change Carries Risks and Rewards

2008 – Maher A. Dahdour

Figure 12-3

TQM and BPT integration

Business Process Design
Goals, Evironmental Analysis, Organizational Analysis

Process Design
Measures for Improvement

Process Models

Animation, Simulation

Metrics, Targets

Process Evaluation

Target Values

Process Implementation

other reporting purposes

Process Metrics

Process Enactment

Process Metrics

Process Monitoring

2008 – Maher A. Dahdour

Measure -ments

TQM and BPT integration

Implemented Processes

Introduction to TQM
 Total = quality involves everyone and all activities in

the company
 Quality = conformance to requirements (meeting

customer requirements)
 Management = quality can and must be managed  TQM = a process for managing quality; it must be a

continuous way of life; a philosophy of

perpetual improvement in everything we do

2008 – Maher A. Dahdour

TQM and BPT integration

Essentials of TQM
 Meeting customer requirements  Reduce development cycle times

 Just in time / demand flow manufacturing
 Improvement teams  Reducing product and service costs  Improving administrative systems training

2008 – Maher A. Dahdour

TQM and BPT integration

Essentials of TQM continue
   

Quality can and must be managed and measured Goals are based on requirements, not negotiated Satisfaction of owners, customers, employees, suppliers and society Involvement of people
 

people are the most valuable asset great accomplishments are possible by helping people achieve their potential



this should be the main job of management



Continuous improvement based on objective data


statistical analysis is an essential tool

 

Management must be involved and lead Plan and organize for quality improvement

2008 – Maher A. Dahdour

TQM and BPT integration

TQM manage and Improve Processes
This involves:
 Defining the process  Measuring process performance (metrics)  Reviewing process performance  Identifying process shortcomings

 Analyzing process problems
 Making a process change  Measuring the effects of the process change

 Communicating both ways between supervisors and workers

2008 – Maher A. Dahdour

TQM and BPT integration

Basic Elements of TQM


Focus on quality and prevention of problems


the need to inspect other people's finished work, rather than relying on the worker's own motivation and skill. This inspection requires extra people and resources if another employee (a supervisor or perhaps a quality officer) finds errors, someone must fix the error, causing extra time and workload, or scrap it with all the accompanying waste if customers find the errors, this can cause dissatisfaction, loss of customer confidence, and perhaps loss of customers themselves







Cooperate with your suppliers and customers
 

focus on customer satisfaction its suppliers must implement TQM as well



Continuously improve and eliminate wasteful steps
   

to meet dynamic customer needs, the organization itself must be dynamic the organisation has to adjust this position the elimination of positions or whole classes of work employees may receive this and actively resist against such moves

2008 – Maher A. Dahdour

TQM and BPT integration

Basic Elements of TQM continue


Encourage the proper climate, empower employees
 

employees motivated to improve service to their customers with the climate allowing them to do so they are willing to innovate and act in an atmosphere of trust and respect



Use the problem solving / problem prevention cycle
  

cross-functional teams, to clarify and refine processes that cross organizational boundaries design teams, to create or change organization-wide systems family work groups working to improve their day-to-day operations; and newly formed work groups to improve their interpersonal functioning



Use measurements to back decisions
 

to spot trends, and correct these trends before problems are caused as part of problem solving, to find out why the problem occurred, and what can be done to prevent it from happening again in product design. The use of experiments at this stage of product development can identify key characteristics that can affect and optimize product or service development. These products may be specific services useful to a customer, or manufactured equipment or materials



2008 – Maher A. Dahdour

TQM and BPT integration

Total Quality Management - TQM
“An Organization wide program that integrates all functions and processes of the business so that design, planning, production, distribution and services are focused on maximizing customer satisfaction through continues improvement.”
(Gary Dessler, 9th Ed.pg.266)

•

Total
– Organization wide

•

Quality
– Degree to which a set of inherent characteristic fulfils requirements

Total

TQM Quality Management

•

Management
– System of managing with steps like Plan, Organize, Control, Lead, Staff, etc

2008 – Maher A. Dahdour

TQM and BPT integration

TQM and BPR Similarities
 

Putting the customer first Adopting a process viewpoint


  

Favoring partnerships with customers and suppliers
Favoring partnerships with customers and suppliers Promoting teamwork Focus on cultural Change
– Operational performance – Measurement of results

– Empowerment of employees

2008 – Maher A. Dahdour

TQM and BPT integration

TQM and BPR Differences

Process Improvement (Quality Management) Level of Change Starting Point Frequency of Change Time Required Participation Typical Scope Risk Incremental Existing process One-time/Continuous Short Bottom-up Narrow, within functions Moderate

Process Innovation (Reengineering) Radical Clean slate One-time Long Top-down Broad, cross-functional High

Primary Enabler
Type of Change

Statistical control
Cultural

Information technology
Cultural/structural

2008 – Maher A. Dahdour

TQM and BPT integration

TQM and BPR Differences continue

Continuous Improvement

IMPLEMENTATION TRAINING TEAMWORK CONTROL CAPABILITY SYSTEMS DESIGN PLANNING MEASUREMENT (COSTS) ORGANISATION COMMITMENT AND POLICY UNDERSTANDING

2008 – Maher A. Dahdour

TQM and BPT integration

BPR

• BPR is the fundamental rethinking and radical redesign of

processes to achieve drastic improvements in critical
measurements of performance (such as time, cost, and quality). • A process is a collection of tasks that together create value for a customer.

Hammer and Champy, 1993

2008 – Maher A. Dahdour

TQM and BPT integration

What BPR Is Not
• BPR is not automation as is • BPR is not managing complexity but reducing it

• BPR is not down-sizing; it is doing more with less means,
effort and people (right-sizing?) • BPR is not TQM (the former seeks change of the process, while the latter seeks incremental improvement using existing processes).

2008 – Maher A. Dahdour

TQM and BPT integration

The need for BPR
• • Customers (know what they want and are willing to pay for it) Competition (Continuous increase will result in changes to price, quality, selective service, and delivery)

•
• • • •

Change (continues to occur in people and culture, organizational structures, policies and procedures, and technology)
Techniques lag behind technology (Technologically capable, but not functionally operational) Problem of the stovepipe (lack of communication between vertical functional areas) Fragmented piecemeal systems (focus on vertical functions, with the existence of redundancies of effort and actions Integration across departmental and organizational boundaries (information and operations are needed)

2008 – Maher A. Dahdour

TQM and BPT integration

Signs to considering BPR
• Failure rate as high as 75-85% • Improperly aligned BPR and IT

• Expensive
• Organizational resistance

Remember: BPR implementation cost is high this is why you should have strong reason to use it in order to get the expected benefits

2008 – Maher A. Dahdour

TQM and BPT integration

BPR in Higher Education
• Processes should match up to new Strategic Vision (efficiency, effectiveness, competitiveness, etc.). • •Adopt “Best Practices" to enable the enterprise to meet new Strategic Vision.

2008 – Maher A. Dahdour

TQM and BPT integration

How do can organisations identify the processes to re-engineer?
First, no organisation can reengineer all its processes simultaneously. Second, organisations typically use three criteria to help them make their choice: 1. Dysfunction: Which processes are in the deepest trouble?

2. Importance: Which processes have the greatest impact on
customers? 3. Feasibility: Which processes are the most susceptible to

re-design?

2008 – Maher A. Dahdour

TQM and BPT integration

BPR Process Change

Copyright 2006 John Wiley & Sons, Inc.

2008 – Maher A. Dahdour

TQM and BPT integration

The benefits of BPR
• Enterprise integration
– Departments are consolidated – Several jobs are combined into one job

•

Worker empowerment
– There is both horizontal and vertical reorganization – Handoffs are eliminated

– There are fewer rules and less coordination is required

•

Number of steps in a process are reduced
– This is simplification – Inspections, checks and controls are reduced or eliminated

•

The steps are performed in a more natural order
TQM and BPT integration

2008 – Maher A. Dahdour

The benefits of BPR continue
• Steps are reassessed
– – – – – – – – Can it be eliminated Can it be taken off line Can it be performed in parallel Can it be combined Is it a bottleneck Can its mean be reduced Can its variance be reduced WHAT IS ITS COST???

•

Processes differ by the type of job being processed
– Not just one process but many are employed depending on the size of the job

•

Work is performed where it makes the most sense

–

Wal-Mart moves the replenishment function to its suppliers
TQM and BPT integration

2008 – Maher A. Dahdour

Risks of Radical Redesign
• Difficult to manage the process.
– Manager needs a strong set of skills.

• Insuring acceptance of the new process.
• Transformation champion needed. • Clear and well thought out plan. • Risk of failure of the new process.

2008 – Maher A. Dahdour

TQM and BPT integration

IT Role
• Simulation (Simulate organizational activities and scenarios) • Flow diagrams (Modeling of the flows of things through the organization) • Work analysis (Analysis of the existing process and proposed solutions) • Application development (Create application to support/institutionalize the change) • Workflow software (System controls into the hands of enduser – help automate business processes and provide a quality interface between business systems)

2008 – Maher A. Dahdour

TQM and BPT integration

The Research
• Research offers
» Likelihood of TQM application in PU

» TQM suitability in existing culture
» Future opportunities for TQM » Critical discussion on TQM in higher education » Managerial implication and guidelines for future research

2008 – Maher A. Dahdour

TQM and BPT integration

Results
• Actions needed for TQM in PU
1. Providing training to faculty (50%)

2. Hiring TQM consultant (18%)
3. Establishing funds for TQM department (17%) 4. Encouraging faculty to do research (15%)

“The success of TQM implementation in PU lies in faculty training”

2008 – Maher A. Dahdour

TQM and BPT integration

Conclusion and Recommendation
• The University of the Punjab has long ties in corporate, education and social sectors and can impact the largest part

of society
• Caution
“Less attention can put the PU far behind”

2008 – Maher A. Dahdour

TQM and BPT integration

Managerial Implications
• • • Higher Management should encourage TQM practices Positive attitude of faculty should be utilized Management should priorities the identified areas, where TQM can produce faster results

•

The management should bring cultural changes through
extensive training program

2008 – Maher A. Dahdour

TQM and BPT integration

Future Research
• To investigate the faculty and student’s requirements regarding TQM

• The future research may enlarge the sample over other
public sector institutes • A comparison between private and public sector regarding TQM implementation is also the area, needs investigation

2008 – Maher A. Dahdour

TQM and BPT integration

References
• • Keri Pearlson & Carol Saunders Dr A. Albadvi

2008 – Maher A. Dahdour

TQM and BPT integration

Information Technology and Changing Business Processes
- IS can enable or impede business change.

-You must look at business process to understand the rule IS plays in business transformation.
-TQM or BRP are normally used to make changes to business processes. -ERP systems can be used to affect organizational transformation. - Information systems are useful tools to both enable and manage business transformation.

2008 – Maher A. Dahdour

TQM and BPT integration

IS planning and areas of implementation

Process/Data Class Matrix
2008 – Maher A. Dahdour TQM and BPT integration

The use of Enterprise Systems
• A set of information systems tools used to enable information flow within and between processes. • Enterprise systems are comprehensive software packages. • ERP (Enterprise Resource Planning) software packages are the most frequently discussed type of enterprise system. • Designed to manage the potentially hundreds of systems throughout a large organization. • SAP is the most widely used ERP software package.

2008 – Maher A. Dahdour

TQM and BPT integration

Characteristics of Enterprise Systems
• Integration – seamlessly integrate information flows throughout the company. • Packages – they are commercial packages purchased from software vendors (like SAP, Oracle, Peoplesoft, etc.). • Best practices – reflect industry best practices. • Some assembly required – the systems need to be integrated with the existing hardware, OS’s, databases, and telecommunications. • Evolving – the systems continue to change to fit the needs of the diverse marketplace.

2008 – Maher A. Dahdour

TQM and BPT integration

Enterprise Systems Advantages and disadvantages
• Advantages:
– All modules easily communicate together.

– Useful tools for centralizing operations and decision making.
– Can reinforce the use of standard procedures.

• Disadvantages:
– Implementation is an enormous amount of work.
– Most require some level of redesigning business processes. – Hefty price tag (sold as a suite). – They are risky.
2008 – Maher A. Dahdour TQM and BPT integration

Process Thinking and Redefinition
• How to think of Process Engineering • Where to start before you reach to a quality management adaption decision • Spiral and Incremental way of thinking in Process reengineering is one of the systematic way to follow • Map Customer Mentality Model to Process Reengineering Model • Close The gap between organization’ people thinking and methodological process and quality thinking as a long term objective

2008 – Maher A. Dahdour

TQM and BPT integration

The Golden process base
Process to develop and implement process change

2008 – Maher A. Dahdour

TQM and BPT integration

The golden process base overall activities and users

2008 – Maher A. Dahdour

TQM and BPT integration

The Golden process base conceptually
 Understand the problem which requires thinking of the problem domain, and it includes different artifacts to represent the problem or the areas of study. In this case the failure processes or functional area at large.  Think, is more about thinking of the applying a solution to the problem studied and documented.

 Do stage, deals with the actual implementation.

2008 – Maher A. Dahdour

TQM and BPT integration

Stages of Process Redesign

2008 – Maher A. Dahdour

TQM and BPT integration

Conclusion and Recommendation
• Conclusion
1. BPR and TQM can exist together 2. Involvement of all levels of staffs and management are required 3. Major Change in organizational culture and Behavior 4. BPR should be applied in Teaching Processes and utilize TQM after the changes implemented 5. TQM applies in Administrative services due to the fact of their Change scope Important: Process definition and engineering should be clear and systematic. Follow The goal if no process thinking model is adapted. Many organization adapts certain pattern that does not fit

2008 – Maher A. Dahdour

TQM and BPT integration


				
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Description: How Business Process Reengineering and Total quality management can be applied in the same organization.