Week 6 - Basic of BPR (2)

Sources / Reference

          1.      http://www.brighthub.com/office/project-management/articles/122495.aspx

2.      http://www.org-synergies.com/wholesystem.html

3.      http://www.bola.biz/change/seminar3.html

4.      http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.98.4712

5.      http://managementhelp.org/quality/total-quality-management.htm

6.      http://www.bexcellence.org/Total-quality-management.html

7.      http://home.pacific.net.hk/~williamw/compare_tqm_and_bpr.htm

---

Summary

After reviewing the Lecture 6, I would like to focus on the Leavitt Diamond and the evolution of BPR in this journal since these concept is extremely important in the Business process re-engineering.

The Leavitt Diamond

Leavitt offered a new approach to looking at organizations, in which every organization consists of four interactive components, Structure, Technology, People and Task. This approach is now widely used for making organizational change more effective. Keep reading to learn more about these components and their interactive behavior.

Structure

It includes the hierarchical structure, relationships, communication patterns and coordination between different management levels, departments and employees.  This would also include how authority and responsibility flow within the organization. The structure needs to be altered, when changes are made to any other component of the diamond.

Technology

Technology is that component of the organization which aids or facilitates the people to perform the tasks. Computers, equipment, LAN lines, barcode readers, software applications, etc. are all counted under technology. Technology too, like all the other components of the Leavitt’s diamond, will need to be changed when modifications are made to any other component.

People

The people are the employees of the organization. When using this approach, you don’t just look at employees as accountants, receptionist, mangers, etc. Instead you also look at their skills, efficiency, knowledge and productivity. Now let’s take a look at how this component will need to be modified with respect to changes in the other three components.

Task

This component can include goals in addition to tasks. Thus this component would include looking at two things – firstly how things are being done and secondly what are you trying to achieve. Here again, you must focus more on the qualitative aspects of the tasks and goals rather than the actual tasks and goals. When looking at tasks think about their relevance and their benefits, and when looking at goals think about the yield and productivity. Now let’s see how tasks are affected by change in other factors.

Evolution of BPR 

Total Quality Management (TQM)

TQM is a management approach for an organization that focuses on customer satisfaction in terms of continual improvement of the quality of its products and services. It is composed of 3 paradigms:

· Total

• involving the entire organization, supply chain, and/or product life cycle

· Quality

· Management

• The system of managing with steps like Plan, Organize, Control, Lead and Staff

7 Important Principles of Total Quality Management

1.      Quality can and must be managed
Many companies have wallowed in a repetitive cycle of chaos and customer complaints. They believe that their operations are simply too large to effectively manage the level of quality. The first step in the TQM process, then, is to realize there is a problem and that it can be controlled.

2.      Processes, not people, are the problem
If your process is causing problems, it won’t matter how many times you hire new employees or how many training sessions you put them through. Correct the process and then train your people on these new procedures.

3.      Don’t treat symptoms, look for quality

If you just patch over the underlying problems in the process, you will never be able to fully reach your potential. If, for example, your shipping department is falling behind, you may find that it is because of holdups in manufacturing. Go for the source to correct the problem.

4.      Every employee is responsible for quality

Everyone in the company, from the workers on the line to the upper management, must realize that they have an important part to play in ensuring high levels of quality in their products and services. Everyone has a customer to delight, and they must all step up and take responsibility for them.

5.      Quality must be measurable

A quality management system is only effective when you can quantify the results. You need to see how the process is implemented and if it is having the desired effect. This will help you set your goals for the future and ensure that every department is working toward the same result.

6.      Quality improvements must be continuous

Total Quality Management is not something that can be done once and then forgotten. It’s not a management “phase” that will end after a problem has been corrected. Real improvements must occur frequently and continually in order to increase customer satisfaction and loyalty.

7.      Quality is a long-term investment

Quality management is not a quick fix. You can purchase QMS software that will help you get things started, but you should understand that real results won’t occur immediately. TQM is a long-term investment, and it is designed to help you find long-term success.

TQM  and  BPR

As we have discuss about BPR in the previous entry already. Now, I would like to focus on the comparison between TQM and BPR. First will be the same aspect of them are following by the difference between them.

Same

·         Customer-oriented

o   Aims on improving the customer satisfaction

·         Process-oriented

o   Target to alter the processes

·         Team approach

Different

TQM	BPR
Ø  Projects are initiated by both top-down approach and bottom-up approach Ø  Assume that the existing practices or systems are principally right and useful Ø  Aims on smoothly and incremental improvements Ø  Standardization Ø  Achieving a consistent performance Ø  Emphasis on the use of statistical process control Ø  TQM is a Cultural issue	Ø  Projects are initiated by top-down approach Ø  Assume that the existing system is useless and suggests starting it over Ø  Aims on dramatic results Ø  Flexibility Ø  Emphasis more on the enabling role of information technology Ø  BPR is a Project