I, the undersigned student was assigned to prepare a term paper on “total quality Management (TQM) & Core Process Reengineering (CPR)”. I have prepared this paper. In preparing this paper, I have followed your guidelines. As per your direction, I have added a lot of information of the mentioned topic. From this report, I have achieved a lot of basic knowledge and I think that it will help me a lot in my future career. I sincerely hope this report will fulfill the requirements suggested by you under the course “Strategic Management”. I truly appreciated this paper. I hope it will be accepted by you.
Sincerely yours, H. M. Rubayyiat Quayyum “TQM & CPR” 1. Executive Summary The main purpose of this paper is to explain the ideas of total quality management (TQM) and core process reengineering (CPR).
Starting with the definition of TQM, we will go through the practices, characteristics, and potential benefits of TQM. Next, we will see the concepts and philosophies, key elements, various models, processes, and different tools of TQM. After that, we will have a look at the CPR. We will try to explore the background, related debates and assorted tools and techniques of CPR.
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Then, we will also try to discuss the coexistence of TQM and CPR. Finally, we will see the alternatives and recommendations regarding these issues. Total Quality Management (TQM): Total Quality Management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes. TQM functions on the premise that the quality of products and processes is the responsibility of everyone who is involved with the creation or consumption of the products or services offered by an organization.
In other words, TQM requires the involvement of management, workforce, suppliers, and customers, in order to meet or exceed customer expectations. Total Quality Management (TQM) is a management approach that originated in the 1950s and has steadily become more popular since the early 1980s. It is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company’s operations, with processes being done right the first time and defects and waste eradicated from operations.
As defined by ISO: “TQM is a management approach of an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society. ” In Japanese, TQM comprises four process steps, namely: 1. Kaizen – Focuses on Continuous Process Improvement, to make processes visible, repeatable and measureable. 2. Atarimae Hinshitsu – Focuses on intangible effects on processes and ways to optimize and reduce their effects.
3. Kansei – Examining the way the user applies the product leads to improvement in the product itself. 4 . Miryokuteki Hinshitsu – Broadens management concern beyond the immediate product. Considering the practices of TQM as discussed in six empirical studies; Cua, McKone, and Schroeder (2001) identified the nine common TQM practices as: 1. cross-functional product design 2. process management 3. supplier quality management 4. customer involvement 5. information and feedback 6. committed leadership 7. strategic planning 8.
The Essay on Quality Planning Process Product Improvement
... management personnel. There were no efforts to implement quality tools or benchmark product or process quality in order to establish a continuous improvement program. - People - Organization ... 2. Critique your company's performance against the TQM model. - Planning - Cosmetically attempted to embrace the TQM concept but unfortunately fell far short ...
cross-functional training 9. employee involvement TQM requires that the company maintain this quality standard in all aspects of its business. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations. TQM has been widely used in manufacturing, education, government, and service industries, as well as NASA space and science programs. Characteristics of TQM: The characteristics of TQM, as revealed from above definition are as follows: 1. TQM is customer oriented. 2.
TQM requires a long term commitment for continuous improvement of all processes. 3. The success of TQM demands the leadership of top management and continuous involvement. 4. Responsibility for establishments and improvement of systems lies with the management of an organization. 5. TQM is a strategy for continuously improving performance at all levels and in all areas of responsibility. Potential Benefits of TQM: The advantages of adopting TQM system compared to conventional quality system are numerous and are outlined below. 1. TQM helps to focus clearly on the needs of the market.
The traditional approach of quality control focuses on the technical details of a product so as to satisfy the customer. However, the customer longs for different satisfaction perspectives which are generally overlooked in the traditional approach. The needs change from person to person and also from place to place. As TQM focuses on the concept of university, it tries to abstract the satisfaction perceptions of the market and thus helps the organization to identify and meet the requirements of the market in a better way. 2. TQM facilitates to aspire for a top quality performer in every sphere of activity.
It is a well accepted fact that the negative attitudes of employees and non-participative culture of the organization pose the greatest hurdle to organization’s success, growth and prosperity. TQM emphasizes on bringing about attitudinal and cultural change through promotion of participative work culture and effective team-work. This serves to satisfy the higher human needs of recognition and self-development and enhances employee’s interest in the job. The employee’s performance, thus, is not restricted to the product or service areas but reflects in other spheres as well. 3.
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It channelizes the procedures necessary to achieve quality performance. Quality in its true sense cannot be achieved instantly. It requires a systematic and a long-term planning and strategic approach. By focusing on defining the quality policies, goals and objectives, and communicating these properly to one and all in the organization, adopting SQC and SPC techniques and developing and using a system of evaluation , the organization can channelize their efforts to achieve the desired and objectivated quality performance. 4. It helps examine critically and continuously all processes to remove nonproductive activities and waste.
The organizations always aim at improving productivity as it leads to reduction in cost resulting in increase in profitability. The efforts in this direction are contributed because of the formation of quality improvement teams which meet regularly and through a systematic approach which tries to remove nonproductive activity. A continuous effort to identify the problems and resolve them helps to reduce the waste. The culture of well being thus improves housekeeping, cost-effectiveness and safety. 5. It gears organizations to fully understand the competition and develop an effective combating strategy.
The dynamic changes in the global market and the open market policies adopted by a large number of organizations have resulted in increased competition and for many organizations the survival has become a key issue. For this cause it is essential for the organizations to understand the competition and develop and adopt suitable strategies to meet the challenges. As TQM helps to understand the pulse of customer and thus the market, it gives an edge to the organizations of variable nature to meet the competition. 6. It helps to develop good procedures for communication and acknowledging good work.
Improper procedures and inadequate communication are yet another bane of many organizations, which result in misunderstanding, confusion, low productivity, duplication of efforts, poor quality, low-morale and so on. TQM brings together members of various related sections, departments and different levels of management thereby providing an effective vehicle of communication and interaction. 7. It helps to review the process needed to develop the strategy of never ending improvement. Quality improvement efforts cannot be restricted to any time period. They need to be continuous to meet the dynamic challenges.
The Term Paper on Institute For Quality Healthcare Improvement
The provided scenario gives an account of a busy emergency department with competent staff, and the multiple errors that led up to the most severe error possible in healthcare, unnecessary death of a patient. A root cause analysis (RCA) can be utilized to help understand the systems at fault within the facility so that improvements can be determined and implemented to prevent any future ...
TQM emphasizes on a continuous and periodic review so as to make the required changes. The benefits derived by the organizations, therefore, are many and multifaceted. Many of these can be measured in quantitative terms. However, the intangible benefits, which include enrichment of the quality of the work life and many more are not quantifiable. At the same time, it has to be established whether they do occur or not in order to prove or disapprove the efficacy of the concept. This can be assessed by a well-planned research project or by carrying out an opinion survey periodically.
The tangible and intangible benefits of TQM are variable in nature. Concepts and Philosophies of TQM: Total Quality Management (TQM), a buzzword phrase of the 1980’s, has been killed and resurrected on a number of occasions. The concept and principles, though simple seem to be creeping back into existence by “bits and pieces” through the evolution of the ISO9001 Management Quality System standard. Companies who have implemented TQM include Ford Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company. The latest changes coming up for the ISO 9001:2000 standard’s “Process Model” seem to complete the embodiment.
TQM is the concept that quality can be managed and that it is a process. The following information is provided to give an understanding of the key elements of this process. TOTAL QUALITY MANAGEMENT (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. TQM Compared to ISO 9001: ISO 9000 is a Quality System Management Standard.
TQM is a philosophy of perpetual improvement. The ISO Quality Standard sets in place a system to deploy policy and verifiable objectives. An ISO implementation is a basis for a Total Quality Management implementation. Where there is an ISO system, about 75 percent of the steps are in place for TQM. The requirements for TQM can be considered ISO plus. Another aspect relating to the ISO Standard is that the proposed changes for the next revision (1999) will contain customer satisfaction and measurement requirements. In short, implementing TQM is being proactive concerning quality rather than reactive.
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TQM as a Foundation : TQM is the foundation for activities which include: · Meeting Customer Requirements · Reducing Development Cycle Times · Just In Time/Demand Flow Manufacturing · Improvement Teams · Reducing Product and Service Costs · Improving Administrative Systems Training The Ten Steps to TQM are as follows: 1. Pursue New Strategic Thinking 2. Know your Customers 3. Set True Customer Requirements 4. Concentrate on Prevention, Not Correction 5. Reduce Chronic Waste 6. Pursue a Continuous Improvement Strategy 7. Use Structured Methodology for Process Improvement 8.
Reduce Variation 9. Use a Balanced Approach 10. Apply to All Functions The Principles of TQM are as follows: 1. Quality can and must be managed. 2. Everyone has a customer and is a supplier. 3. Processes, not people are the problem. 4. Every employee is responsible for quality. 5. Problems must be prevented, not just fixed. 6. Quality must be measured. 7. Quality improvements must be continuous. 8. The quality standard is defect free. 9. Goals are based on requirements, not negotiated. 10. Life cycle costs, not front end costs. 11. Management must be involved and lead. 12.
Management Commitment 1. Plan (drive, direct) 2. Do (deploy, support, and participate) 3. Check (review) 4. Act (recognizes, communicate, revise) 13. Employee Empowerment 1. Training 2. Suggestion scheme 3. Measurement and recognition 4. Excellence teams 14. Fact Based Decision Making 1. SPC (statistical process control) 2. DOE, FMEA 3. The 7 statistical tools 4. TOPS (FORD 8D – Team Oriented Problem Solving) 15. Continuous Improvement 1. Systematic measurement and focus on CONQ 2. Excellence teams 3. Cross-functional process management 4. Attain, maintain, and improve standards 16.
Customer Focus 1. Supplier partnership 2. Service relationship with internal customers 3. Never compromise quality 4. Customer driven standards Key Elements: TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives. For this, TQM requires the help of those eight key elements. These elements can be divided into four groups according to their function. The groups are: I. Foundation – It includes: Ethics, Integrity and Trust. II. Building Bricks – It includes: Training, Teamwork and Leadership.
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III. Binding Mortar – It includes: Communication. IV. Roof – It includes: Recognition. I. Foundation:- TQM is built on a foundation of ethics, integrity and trust. It fosters openness, fairness and sincerity and allows involvement by everyone. This is the key to unlocking the ultimate potential of TQM. These three elements move together, however, each element offers something different to the TQM concept. 1. Ethics – Ethics is the discipline concerned with good and bad in any situation. It is a two-faceted subject represented by organizational and individual ethics.
Organizational ethics establish a business code of ethics that outlines guidelines that all employees are to adhere to in the performance of their work. Individual ethics include personal rights or wrongs. 2. Integrity – Integrity implies honesty, morals, values, fairness, and adherence to the facts and sincerity. The characteristic is what customers (internal or external) expect and deserve to receive. People see the opposite of integrity as duplicity. TQM will not work in an atmosphere of duplicity. 3. Trust – Trust is a by-product of integrity and ethical conduct. Without trust, the framework of TQM cannot be built.
Trust fosters full participation of all members. It allows empowerment that encourages pride ownership and it encourages commitment. It allows decision making at appropriate levels in the organization, fosters individual risk-taking for continuous improvement and helps to ensure that measurements focus on improvement of process and are not used to contend people. Trust is essential to ensure customer satisfaction. So, trust builds the cooperative environment essential for TQM. II. Bricks:- Basing on the strong foundation of trust, ethics and integrity, bricks are placed to reach the roof of recognition.
It includes: 4. Training – Training is very important for employees to be highly productive. Supervisors are solely responsible for implementing TQM within their departments, and teaching their employees the philosophies of TQM. Training that employees require are interpersonal skills, the ability to function within teams, problem solving, decision making, job management performance analysis and improvement, business economics and technical skills. During the creation and formation of TQM, employees are trained so that they can become effective employees for the company. 5. Teamwork – To become successful in
business, teamwork is also a key element of TQM. With the use of teams, the business will receive quicker and better solutions to problems. Teams also provide more permanent improvements in processes and operations. In teams, people feel more comfortable bringing up problems that may occur, and can get help from other workers to find a solution and put into place. There are mainly three types of teams that TQM organizations adopt: A. Quality improvement teams or excellence teams (QITs) – These are temporary teams with the purpose of dealing with specific problems that often recur.
These teams are set up for period of three to twelve months. B. Problem solving teams (PSTs) – These are temporary teams to solve certain problems and also to identify and overcome causes of problems. They generally last from one week to three months. C. Natural work teams (NWTs) – These teams consist of small groups of skilled workers who share tasks and responsibilities. These teams use concepts such as employee involvement teams, self-managing teams and quality circles. These teams generally work for one to two hours a week. 6. Leadership – It is possibly the most important element in TQM.
It appears everywhere in organization. Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are understood by all and to instill values that guide subordinates. For TQM to be successful in the business, the supervisor must be committed in leading his employees. A supervisor must understand TQM, believe in it and then demonstrate their belief and commitment through their daily practices of TQM. The supervisor makes sure that strategies, philosophies, values and goals are transmitted down throughout the organization to provide focus, clarity and direction.
A key point is that TQM has to be introduced and led by top management. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well defined systems, methods and performance measures for achieving those goals. III. Binding Mortar:- 7. Communication – It binds everything together. Starting from foundation to roof of the TQM house, everything is bound by strong mortar of communication.
It acts as a vital link between all elements of TQM. Communication means a common understanding of ideas between the sender and the receiver. The success of TQM demands communication with and among all the organization members, suppliers and customers. Supervisors must keep open airways where employees can send and receive information about the TQM process. Communication coupled with the sharing of correct information is vital. For communication to be credible the message must be clear and receiver must interpret in the way the sender intended.
There are different ways of communication such as: A. Downward communication – This is the dominant form of communication in an organization. Presentations and discussions basically do it. By this the supervisors are able to make the employees clear about TQM. B. Upward communication – By this the lower level of employees are able to provide suggestions to upper management of the affects of TQM. As employees provide insight and constructive criticism, supervisors must listen effectively to correct the situation that comes about through the use of TQM.
This forms a level of trust between supervisors and employees. This is also similar to empowering communication, where supervisors keep open ears and listen to others. C. Sideways communication – This type of communication is important because it breaks down barriers between departments. It also allows dealing with customers and suppliers in a more professional manner. IV. Roof:- 8. Recognition – Recognition is the last and final element in the entire system. It should be provided for both suggestions and achievements for teams as well as individuals.
Employees strive to receive recognition for themselves and their teams. Detecting and recognizing contributors is the most important job of a supervisor. As people are recognized, there can be huge changes in self-esteem, productivity, quality and the amount of effort exhorted to the task at hand. Recognition comes in its best form when it is immediately following an action that an employee has performed. Recognition comes in different ways, places and time such as, Ways – It can be by way of personal letter from top management. Also by award banquets, plaques, trophies etc.
Places – Good performers can be recognized in front of departments, on performance boards and also in front of top management. Time – Recognition can be given at any time like in staff meeting, annual award banquets, etc. The TQM Model: At the century close, the creation of the global market, international orientation of management that sweeps national boundaries, introduction of new technologies, and shift towards customer focused strategies, make the competition stronger than ever. The criteria for success in this global, internationally oriented market have been changing rapidly.
In order to expand business, enter new markets, and set realistic, competitive long-term objectives, excellence became an imperative. Management’s effort has been directed towards discovering what makes a company excellent. To achieve excellence, companies must develop a corporate culture of treating people as their most important asset and provide a consistent level of high quality products and services in every market in which they operate. Such an environment has supported the wide acceptance of Total Quality Management (TQM) which emerged recently as a new, challenging, marketable philosophy.
It involves three spheres of changes in an organization — people, technology and structure. There is also a need for a systematic approach so that each element of TQMEX can be bonded together smoothly. Oakland [1989] originated the idea of a 3-cornerstone model. The proposed 4-pillar model (Figure 3. 1) brings the customer’s requirement into the system. This makes the approach to TQM more complete. The additional pillar — satisfying customers — is vital because it explicitly addresses customers requirements. Without it TQM would have no objective.
Figure: The Four Pillars of TQM Figure: The Structure of TQMEX The Building Blocks of TQM: processes, people, management systems and performance measurement: Everything we do is a Process, which is the transformation of a set of inputs, which can include action, methods and operations, into the desired outputs, which satisfy the customers’ needs and expectations. In each area or function within an organization there will be many processes taking place, and each can be analyzed by an examination of the inputs and outputs to determine the action necessary to improve quality.
In every organization there are some very large processes, which are groups of smaller processes, called key or core business processes. These must be carried out well if an organization is to achieve its mission and objectives. The section on Processes discusses processes and how to improve them, and Implementation covers how to prioritize and select the right process for improvement. The only point at which true responsibility for performance and quality can lie is with the People who actually do the job or carry out the process, each of which has one or several suppliers and customers.
An efficient and effective way to tackle process or quality improvement is through teamwork. However, people will not engage in improvement activities without commitment and recognition from the organization’s leaders, a climate for improvement and a strategy that is implemented thoughtfully and effectively. An appropriate documented Quality Management System will help an organization not only achieve the objectives set out in its policy and strategy, but also, and equally importantly, sustain and build upon them.
It is imperative that the leaders take responsibility for the adoption and documentation of an appropriate management system in their organization if they are serious about the quality journey. Once the strategic direction for the organization’s quality journey has been set, it needs Performance Measures to monitor and control the journey, and to ensure the desired level of performance is being achieved and sustained. They can, and should be, established at all levels in the organization, ideally being cascaded down and most effectively undertaken as team activities.
Implementation of Principles and Processes: A preliminary step in TQM implementation is to assess the organization’s current reality. Relevant preconditions have to do with the organization’s history, its current needs, precipitating events leading to TQM, and the existing employee quality of working life. If the current reality does not include important preconditions, TQM implementation should be delayed until the organization is in a state in which TQM is likely to succeed.
If an organization has a track record of effective responsiveness to the environment, and if it has been able to successfully change the way it operates when needed, TQM will be easier to implement. If an organization has been historically reactive and has no skill at improving its operating systems, there will be both employee skepticism and a lack of skilled change agents. If this condition prevails, a comprehensive program of management and leadership development may be instituted.
A management audit is a good assessment tool to identify current levels of organizational functioning and areas in need of change. An organization should be basically healthy before beginning TQM. If it has significant problems such as a very unstable funding base, weak administrative systems, lack of managerial skill, or poor employee morale, TQM would not be appropriate. In summary, at first a company should assess preconditions and the current state of the organization to make sure the need for change is clear and that TQM is an appropriate strategy.
Leadership styles and organizational culture must be congruent with TQM. If they are not, this should be worked on or TQM implementation should be avoided or delayed until favorable conditions exist. Always to keep in mind that TQM should be purpose driven. Be clear on the organization’s vision for the future and stay focused on it. TQM can be a powerful technique for unleashing employee creativity and potential, reducing bureaucracy and costs, and improving service to clients and the community. Some useful messages from results of TQM implementations:
If an organization wants to be a first-rate company, don’t focus on the second-rate companies who can’t handle TQM, look at the world-class companies that have adopted it; The most effective way to spend TQM introduction funds is by training top management, people involved in new product development, and people involved with customers; and It’s much easier to introduce EDM/PDM in a company with a TQM culture than in one without TQM. People in companies that have implemented TQM are more likely to have the basic understanding necessary for implementing EDM/PDM.
For example, they are more likely to view EDM/PDM as an information and workflow management system supporting the entire product life cycle then as a departmental solution for the management of CAD data. Important aspects of TQM include customer-driven quality, top management leadership and commitment, continuous improvement, fast response, actions based on facts, employee participation, and a TQM culture. Total Quality Management (TQM) Tools: Total quality management (TQM) tools help organizations to identify, analyze and assess qualitative and quantitative data that is relevant to their business.
These tools can identify procedures, ideas, statistics, cause and effect concerns and other issues relevant to their organizations. Each of which can be examined and used to enhance the effectiveness, efficiency, standardization and overall quality of procedures, products or work environment, in accordance with ISO 9000 standards (SQ, 2004).
According to Quality America, Inc. (ReVelle, 2003) the number of TQM tools is close to 100 and come in various forms, such as brainstorming, focus groups, check lists, charts and graphs, diagrams and other analysis tools.
In a different vein, manuals and standards are TQM tools as well, as they give direction and best practice guidelines to an organization’s staff. TQM tools illustrate and aid in the assimilation of complicated information such as: Identification of the audience; Positive and negative forces affecting business; Assessment of customer needs; Competition analysis; Market analysis; Brainstorming ideas; Productivity changes; Various statistics; Staff duties and work flow analysis; Statement of purpose; Financial analysis; Model creation; Business structure; and Logistics analysis.
The list goes on, though essentially TQM tools can be used in any situation, for any number of reasons, and can be extremely effective if used properly. The following are some of the most common TQM tools in use today. Each is used for, and identifies, specific information in a specific manner. It should be noted that tools should be used in conjunction with other tools to understand the full scope of the issue being analyzed or illustrated. Simply using one tool may inhibit your understanding of the data provided, or may close you off to further possibilities. 1.
Pie Charts and Bar Graphs- Used to identify and compare data units as they relate to one issue or the whole, such as budgets, vault space available, extent of fonds, etc. 2. Histograms- To illustrate and examine various data element in order to make decisions regarding them. Effective when comparing statistical, survey, or questionnaire results. 3. Run Chart- Follows a process over a specific period of time, such as accrual rates, to track high and low points in its run, and ultimately identify trends, shifts and patterns. 4. Pareto Charts / Analysis (designed by Vilfredo Pareto)-
Rates issues according to importance and frequency by prioritizing specific problems or causes in a manner that facilitates problem solving. Identify groupings of qualitative data, such as most frequent complaint, most commonly purchased preservation aid, etc. in order to measure which have priority. Can be scheduled over select periods of time to track changes. They can also be created in retrospect, as a before and after analysis of a process change. 5. Force Field Analysis- To identify driving and restraining forces occurring in a chosen process in order to understand why that particular process functions as it does.
For example, identifying the driving and restraining forces of catering predominantly to genealogists. To identify restraining forces that need to be eradicated, or driving forces that need to be improved, in order to function at a higher level of efficiency. 6. Cause and Effect, Ishikawa or Fishbone Diagrams (designed by Kauro Ishikawa)- Illustrates multiple levels of potential causes (inputs), and ultimate effects (outputs), of problems or issues that may arise in the course of business. May be confusing if too many inputs and outputs are identified.
An alternative would be a tree diagram, which is much easier to follow. 7. Focus Groups- Useful for marketing or advertising organizations to test products on the general public. Consist of various people from the general public who use and discuss your product, providing impartial feedback to help you determine whether your product needs improvement or if it should be introduced onto the market. 8. Brainstorming and Affinity Diagrams- Teams using creative thinking to identify various aspects surrounding an issue.
An affinity diagram, which can be created using anything from enabling software to post-it notes organized on a wall, is a tool to organize brainstorming ideas. 9. Tree Diagram- To identify the various tasks involved in, and the full scope of, a project. To identify hierarchies, whether of personnel, business structure, or priorities. To identify inputs and outputs of a project, procedure, process, etc. 10. Flowcharts and Modeling Diagrams- Assist in the definition and analysis of each step in a process by illustrating it in a clear and comprehensive manner.
Identify areas where workflow may be blocked, or diverted, and where workflow is fluid. Identify where steps need to be added or removed to improve efficiency and create standardized workflow. 11. Scatter Diagram- To illustrate and validate hunches To discover cause and effect relationships, as well as bonds and correlations, between two variables To chart the positive and negative direction of relationships 12. Relations Diagram- To understand the relationships between various factors, issues, events, etc. so as to understand their importance in the overall organizational view. 13. PDCA- The Plan-Do-Check-Act style of management where e
