Total Quality Management and Continuous Improvement

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Total Quality Management and Continuous
Improvement
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Total Quality Management (TQM)- A buzzword
phrase of the 1980's

• 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

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TQM as Foundation

• Meeting customer requirements
• Reduce development cycle times
• Just in time / demand flow manufacturing
• Improvement teams
• Reducing product and service costs
• Improving administrative systems training

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Principles of TQM

• 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 organise for quality improvement

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Processes must be Managed and Improved

• This involves
• Defining the process
• Measuring process performance (metrics)
• Reviewing process performance
• Identifying process shortcomings
• Analysing process problems
• Making a process change
• Measuring the effects of the process change
• Communicating both ways between supervisors and
  workers

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Ten Steps to TQM

• 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

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The 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

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The Elements of TQM (cont.)

• 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
• 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

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The Elements of TQM (cont.)

• 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

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A Successful TQM Implementation

• Education
• Identify customers and final outputs
• Define value adding activities
• Identify opportunities for greatest improvement
• Develop quality measures
• Assess the quality measure
• Implement and validate

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BPR and TQM- Similarities

• Putting the customer first
• Adopting a process viewpoint
• Favouring partnerships with customers and
  suppliers
• Favouring partnerships with customers and
  suppliers
• Promoting teamwork

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BPR and TQM- Differences

• TQM BPR
• Theme improving reinventing
• Approach incremental radical
• Assumption sound process broken process
• Cognitive style analytical creative
• Management style empowered directive
• Change limited to process holistic
• Goal enhancement stretch
• Role of IT secondary fundamental

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Why is BPR different?

• High ambition
• - order-of-magnitude improvements in key
  performance measures, such as cost, quality,
  service or speed
• Process focus
• - a customer-oriented viewpoint, ignoring
  functional and organisational boundaries
• Creative rule-breaking
• - finding challenging fundamental assumptions
  about normal business practice, addressing
  customers needs rather than wants
• Information technology to enable the above
• - IT as an enabler of new ways of working, rather
  than as a driver change through substitution and
  automation

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Summary

• TQM or Kaizen is improving bit by bit
  continuously
• BPR is radical approach
• BPR relies heavily on IT as an enabler
• Case studies follow which illustrate the point

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Summary
Knowledge Management
Web-enabled e-business
Degree of IT enablement
Time-Based Competition
BPR
Second wave BPR
TQM
Richness of Business Transformation
Ref Re-designing enterprise processes for
e-business. El Sawy, OA, (2001) Mc Graw Hill.