Total quality management

SRIBATSA PATTANAYAK M.B.A. ABA, BALASORE

INTRO !"TION
#it$ t$e in%&ea'e( %om)etition at t$e glo*al le+el, mo&e , mo&e o&gani-ation' a&e *e%oming %on'%iou' .o%u'ing on +a&iou' a')e%t' , 'u%$ a' /
BETTER QUALITY. ZERO DEFECT. NEW PRODUCT DEVELOPMENT. ELIMINATION OF WASTAGE. CONTINUOUS IMPROVEMENT , ET".

, $a+e 'ta&te(

A +e&y $ig$ em)$a'i' on quality *ot$ .o& )&o(u%t' , 'e&+i%e' $a' gene&ate( a ne0 %on%e)t 1no0n a'/ TOTAL 2!ALITY MANA3EMENT. T$i' 'y'tem i' a )&ima&y e4am)le o. a LEAN SYSTEM , i.e, a o)e&ation 'y'tem 0$i%$ in%lu(e' a total 'y'tem' )&o')e%ti+e, 'u%$ a'/ o)e&ation' 't&ategie', )&o%e''e', te%$nology, quality, %a)a%ity, layout, in+ento&y , &e'ou&%e )lanning et%. T2M O#ES ITS ORI3IN TO T#O AMERI"ANS/ #.E #AR S EMIN3 , 5.M.5!RAN #6O LA!N"6E #AS ON T6E PRO"ESS O7 REB!IL IN3 ITS E"ONOMY E8ASTATE BY #ORL #AR9 IIN . IT 7IRST IN 5APAN, #6I"6

E7INITIONS
International organization for standardization (ISO) defines TQM as follows: T2M i' a management a))&oa%$ .o& an o&gani-ation %ente&e( on quality *a'e( on t$e )a&ti%i)ation o. all it' mem*e&' , aiming at long te&m 'u%%e'' t$&oug$ %u'tome& 'ati'.a%tion, , *ene.it' to all mem*e&' o. t$e o&gani-ation , to 'o%iety.

MEANIN3 O7 T2M
TQM, is composed of 3 paradigms: Total: In+ol+ing t$e enti&e o&gani-ation. Quality: In+ol+e' 'u)e&io&ity, E4%ellen%y, +alue o. t$e o&gani-ation. Ma a!"#" t: T$e 'y'tem o. managing an o&gani-ation 0it$ 'te)' li1e )lanning, o&gani-ing, %ont&olling, 'ta..ing, )&o+i'ioning , t$e li1e. T2M :u'ti.ie' it' name a' it i' all a*out gi+ing total %u'tome& 'ati'.a%tion *y maintaining all (imen'ion' o. quality. T2M em)$a'i-e' on total %u'tome& 'ati'.a%tion, total .un%tion, total &ange o. )&o(u%t' , 'e&+i%e' o..e&e( *y an o&gani-ation, 'ati'.a%tion o. inte&nal , e4te&nal %u'tome&' , a((&e''ing t$e total o&gani-ational i''ue o. &etaining %u'tome&' , im)&o+ing )&o.it' a' 0ell a' gene&ating ne0 *u'ine'' .o& t$e .utu&e. T$u', T2M i' not :u't a*out quality in t$e t&a(itional 'en'e, it i' a*out o&gani-ational e4%ellen%e. It i' li1e Mi(a' tou%$, 0$e&e e+e&y t$ing t$at i' tou%$e( tu&n' to gol(. T2M i' a*out tu&ning all )&o(u%t', all 'e&+i%e', all )&o%e''e' , all )eo)le in to gol(.

PRI"IPLES , "ORE "ON"EPTS O7 T2M/

The TQM is based on
$ FOLD PRINCIPLES: DELIGHT THE CUSTOMER:

fold principles ! eight core concepts:

elig$t mean' *eing *e't at 0$at &eally i' im)o&tant to t$e %u'tome&. Ma1ing %ontinuou' %$ange' to 'ati'.y t$e %u'tome& i' an integ&al )a&t o. T2M.
MANAGEMENT BY FACT:

Management gat$e&' t$e .a%t' a*out t$e )&e'ent le+el , )&o+i(e' t$i' in.o&mation to t$e em)loyee' at all le+el' to ma1e t$e (e%i'ion' *a'e( on t$e .a%t'. T$e'e .a%t' a&e e''ential )a&t o. %ontinuou' im)&o+ement.

PEOPLE BASED MANAGEMENT:

T$e management '$oul( ma1e t$e em)loyee' un(e&'tan( 0$at to (o, $o0 to (o it , get t$e .ee( *a%1 a*out t$ei& )e&.o&man%e. T$e em)loyee' '$oul( al'o *e en%ou&age( .o& t$e quality o. t$ei& 0o&1, *e%au'e i. t$ey 0ill *e in+ol+e( mo&e t$ey %an * e mo&e %ommitte( to %u'tome& 'ati'.a%tion. T$e quality i' $ea+ily in.luen%e( *y t$e %ontinuou' in+ol+ement o. t$e )eo)le &at$e& t$an *y t$e 'y'tem', 'tan(a&(' , te%$nology.
TQM IS A CONTINUOUS PROCESS:

T2M '$oul( *e a )$ilo'o)$y o. management , a long te&m )&o%e''. "ontinuou' im)&o+ement o. all o)e&ation' an( a%ti+itie' i' at t$e $ea&t o. T2M. On%e it i' &e%ogni-e( t$at %u'tome& 'ati'.a%tion %an only *e o*taine( *y )&o+i(ing a $ig$9quality )&o(u%t, %ontinuou' im)&o+ement o. t$e quality o. t$e )&o(u%t i' 'een a' t$e only 0ay to maintain a $ig$ le+el o. %u'tome& 'ati'.a%tion. Elimination o. 0a'te i' a ma:o& %om)onent o. t$e %ontinuou' im)&o+ement a))&oa%$. T$e&e i' al'o a 't&ong em)$a'i' on )&e+ention &at$e& t$an (ete%tion, an( an em)$a'i' on quality at t$e (e'ign 'tage. T$e %u'tome&9(&i+en a))&oa%$ $el)' to )&e+ent e&&o&' an( a%$ie+e (e.e%t9.&ee )&o(u%tion. #$en )&o*lem' (o o%%u& 0it$in t$e )&o(u%t (e+elo)ment )&o%e'', t$ey a&e gene&ally (i'%o+e&e( an( &e'ol+e( *e.o&e t$ey %an get to t$e ne4t inte&nal %u'tome&.

% CORE CONCEPTS: CUSTOMER SATISFACTION:

"om)anie' '$oul( un(e&'tan( t$e im)o&tan%e o. e4te&nal %u'tome& a' t$ey a&e t$e main 'ou&%e o. in%ome. "om)anie' '$oul( i(enti.y t$ei& %$anging nee(' time to time , .in( out t$e 'ati'.ying .a%to&'. "om)anie' '$oul( en$an%e t$e 'ati'.ying .a%to&' , &e(u%e t$e .a%to&' t$o'e %au'e g&ie..
INTERNAL CUSTOMERS ARE REAL:

Inte&nal %u'tome&' a&e a' im)o&tant a' e4te&nal %u'tome&' a' t$ey %ontinuou'ly in.luen%e t$e quality maintenan%e. T$ey al'o in.luen%e ')ee(, e..i%ien%y, )e&.e%tne'' , %o't.
ALL WORK IS A BUSINESS PROCESS:

Bu'ine'' )&o%e'' i' a %om*ination o. met$o(', mate&ial', man)o0e& , ma%$ine' t$at ta1en toget$e& to )&o(u%e a )&o(u%t o& 'e&+i%e.
MEASUREMENT:

Mea'u&ement o. )&e'ent le+el o. quality i' mo&e im)o&tant in o&(e& to (ete&mine t$e .utu&e quality le+el.
TEAM WORK:

Peo)le 0o&1 toget$e& in te&m' to a%%om)li'$ t$e mo't (i..i%ult goal'. Peo)le 0o&1 in team' to maintain , im)&o+e t$e quality.
PEOPLE MAKE QUALITY:

Mo'tly o&gani-ational e..o&t' in.luen%e t$e quality. O&gani-ational e..o&t' in.luen%e t$e in(i+i(ual' , team' in t$e o&gani-ation to %ommit to t$e quality.
CONTINUOUS IMPROVEMENT CYCLE:

I(enti.ying t$e )&e'ent le+el o. quality 'tan(a&(', e'ta*li'$ing t$e %u'tome& nee(', e'ta*li'$ing t$e 0ay' , mean' to )&o(u%e t$e )&o(u%t o& 'e&+i%e to meet t$e %u'tome& nee(', mea'u&ing t$e 'u%%e'' , im)&o+ing t$e quality %ontinuou'ly a&e t$e )a&t' o. t$e %ontinuou' im)&o+ement %y%le.
PREVENTION:

P&e+enting t$e .ailu&e' to o%%u& i' t$e %ent&al 'y'tem o. T2M. 7o&e'eeing t$e )o''i*le .ailu&e' , ta1ing a(+e&'e 'te)' to )&e+ent t$em .&om o%%u& i' im)o&tant. T$i' )&o%e'' $el)' .o& t$e %&eation o. t$e %ultu&e .o& %ontinuou' im)&o+ement.

A T2M "!LT!RE /
It;' not ea'y to int&o(u%e T2M. An o)en, %oo)e&ati+e %ultu&e $a' to *e %&eate( *y management. Em)loyee' $a+e to *e ma(e to .eel t$at t$ey a&e &e')on'i*le .o& %u'tome& 'ati'.a%tion. T$ey a&e not going to .eel t$i' i. t$ey a&e e4%lu(e( .&om t$e (e+elo)ment o. +i'ion', 't&ategie', an( )lan'. It;' im)o&tant t$ey )a&ti%i)ate in t$e'e a%ti+itie'. T$ey a&e unli1ely to *e$a+e in a &e')on'i*le 0ay i. t$ey 'ee management *e$a+ing i&&e')on'i*ly 9 'aying one t$ing an( (oing t$e o))o'ite.

P&o(u%t (e+elo)ment in a T2M en+i&onment /

P&o(u%t (e+elo)ment in a T2M en+i&onment i' +e&y (i..e&ent to )&o(u%t (e+elo)ment in a non9T2M en+i&onment. #it$out a T2M a))&oa%$, )&o(u%t (e+elo)ment i' u'ually %a&&ie( on in a %on.li%tual atmo')$e&e 0$e&e ea%$ (e)a&tment a%t' in(e)en(ently. S$o&t9te&m &e'ult' (&i+e *e$a+io& 'o '%&a), %$ange', 0o&19a&oun(', 0a'te, an( &e0o&1 a&e no&mal )&a%ti%e. Management .o%u'e' on 'u)e&+i'ing in(i+i(ual', an( .i&e9.ig$ting i' ne%e''a&y an( &e0a&(e(. P&o(u%t (e+elo)ment in a T2M en+i&onment i' %u'tome&9(&i+en an( .o%u'e( on quality. Team' a&e )&o%e''9o&iente(, an( inte&a%t 0it$ t$ei& inte&nal %u'tome&' to (eli+e& t$e &equi&e( &e'ult'. Management;' .o%u' i' on %ont&olling t$e o+e&all )&o%e'', an( &e0a&(ing team0o&1.

A0a&(' .o& 2uality a%$ie+ement /

T$e eming P&i-e $a' *een a0a&(e( annually 'in%e <=>< *y t$e 5a)ane'e !nion o. S%ienti't' an( Enginee&' in &e%ognition o. out'tan(ing a%$ie+ement in quality 't&ategy, management an( e4e%ution. Sin%e <=?? a 'imila& a0a&( @t$e Mal%olm Bal(&ige National 2uality A0a&(A $a' *een a0a&(e( in t$e !S. Ea&ly 0inne&' o. t$e Bal(&ige A0a&( in%lu(e AT,T @<==BA, IBM @<==CA, Milli1en @<=?=A, Moto&ola @<=??A, Te4a' In't&ument' @<==BA an( De&o4 @<=?=.

"ON"L!SION/
There are various factors that contribute to the success of quality management practices but human factor is very important in the implementation of any process or principle. If it is missing then there will be reduction in efficiency in implementation. At last it can be concluded that Quality is a Journey, not a destination .

BPR
Business Process Redesign (BPR) A systematic, disciplined improvement approach that critically examines, rethinks, redesigns, and implements the redesigned processes of an organisation. BPRs goal is to achieve dramatic improvements in performance in areas important to customers and other stakeholders. BPR is also referred to by such terms as business process improvement (BP ! or business process development, and business process redesign. "hile the term can be applied to incremental process improvement efforts, it is more commonly and increasingly associated #ith dramatic or radical overhauls of existing business processes. BPR typically relies on information technology to achieve breakthrough results. $herefore, #e can understand that if any business does not run as it has been planed earlier, there should be a problem in terms of the #ay it runs at present. As a result, #e have to modify the present process of the business along #ith its procedures. At this %uncture, the BPR concept helps us to identify our present situation of the business that #e engaged #ith and it #ill provide the necessary solutions to overcome the identified issues&limitation #ith regard to the business process. 'efinition for Business Process Reengineering&Redesign According to (ummer and )hampy, Business Process Reengineering (BPR! is the fundamental rethinking and radical redesign of business process to achieve dramatic improvements in critical and contemporary measures of performance, such as cost, *uality, services and speed. $here are four key components+ ,.-undamental rethinking ..Radical redesign /.'ramatic improvement 0.)ritical and contemporary measures of performance 1cope of BPR $he impact of Business Process Reengineering (BPR! generally depends upon proper coverage of business process in terms of breadth (scope of the business! and depth (linkage #ith other aspects! according to #estern experience. 2x+ 2uropean )ommercial Banks reengineering effort as described by (all, Rosenthal and "ade in ,33/. $he Bank has failed since, it had overlooked many other back office process in planning the redesign.

1uccessful redesign of a process #ith high depth involved a complete restructuring of all the key drivers of behaviour so that the actual results measures up to the plan. 4ethodology $here are #ide range of methodology in #hich seek to synergise some of the idea implicit in the reengineering concept. ,.$al#ar method ..)5BRA method $al#ar method 'eveloped by $al#ar, this seeks to strike a balance bet#een strategy formulation, process, redesign, exploitation and management of the reengineered business. t entails three stages as belo#+ nitiation+ 'efining strategic scope, scale and planning the change mplementation+ Business redesign, integration and testing 2xploitation+ )ontinuing the improvement process

COBRA method )5BRA stands for+ )6 )onstrains, 5 7 5pportunities, B 7 Business, R 7 Restructuring, A 7 Analysis $his is an approach adopted by the commission of the 2uropean communities in ,330. As outlined by )oulson6$homas. ts a six stage of BPR methodology designed to be implemented by a technocratic approach #ith due regard to people issues. ,.2stablishing an organisations approach to BPR .. dentifying the opportunity /.Analysis of an existing process 0.Process re6design 8. mplementation of the change 9.Performance monitoring According to Peter )arter Business Process Reengineering (often referred to by the acronym BPR! is the main #ay in #hich organisations become more efficient and modernise. Business process reengineering transforms an organisation in #ays that directly affect performance $he impact of BPR on organisational performance $he t#o cornerstones of any organisation are the people and the processes. f individuals are motivated and #orking hard, yet the business processes are cumbersome and non6essential activities remain, organisational performance #ill be poor.

BPR is the key to transforming ho# people #ork. "hat appears to be minor change in processes can have dramatic effects on cash flo#, service delivery and customer satisfaction. 2ven the act of documenting business processes alone #ill typically improve organisational efficiency by ,:;. (o# to implement a BPR pro%ect $he best #ay to map and improve the organisations procedures is to take a top do#n approach, and not undertake a pro%ect in isolation. $hat means+ 1tarting #ith mission statements that define the purpose of the organisation and describe #hat sets it apart from others in its sector or industry. Producing vision statements #hich define #here the organisation is going, to provide a clear picture of the desired future position. Build these into a clear business strategy and thereby derive the pro%ect ob%ectives. 'efining behaviours that #ill enable the organisation to achieve its aims. Producing key performance measures to track progress. Relating efficiency improvements to the culture of the organisation dentifying initiatives that #ill improve performance.

Tools to support BPR "hen a BPR pro%ect is undertaken across the organisation, it can re*uire managing a massive amount of information about the processes, data and systems. f you dont have an excellent tool to support BPR, the management of this information can become an impossible task. $he use of a good BPR&documentation tool is vital in any BPR pro%ect. $he types of attributes you should look for in BPR soft#are are+ <raphical interface for fast documentation =5b%ect oriented> technology, so that changes to data (eg+ %ob titles! only need to be made in one place, and the change automatically appears throughout all the organisations procedures and documentation. 'rag and drop facility so you can easily relate organisational and data ob%ects to each step in the process )ustomisable meta data fields, so that you can include information relating to your industry, business sector or organisation in your documentation Analysis, such as s#im6lanes to sho# visually ho# responsibilities in a process are transferred bet#een different roles, or #here data items or computer applications are used. 1upport for ?alue 1tream mapping. )R@' or RA) reports, to provide evidence for process improvement. $he ability to assess the processes against agreed international standards 1imulation soft#are to support A#hat6if analyses during the design phase of the pro%ect to develop B2AC processes

$he production of #ord documents or #eb site versions of the procedures at the touch of a single button, so that the information can be easily maintained and updated. $o be successful, BPR pro%ects need to be top do#n, taking in the complete organisation, and the full end to end processes. t needs to be supported by tools that make processes easy to track and analyse.

BPR and nformation $echnology Business Process Re6engineering has rapidly developed to#ards a ne# management philosophy. $he inherent business process orientation changes the perspective of international management from a structural to that of a process vie#. $he re6engineering of business processes is only one aspect of the management of business processes. n particular, the re6engineering of international business processes needs special attention, because the multi6faceted structure of multinational corporations increases the complexity of business processes, thereby influencing the options for redesign. Business Process Re6engineering has rapidly developed to#ards a ne# management philosophy based upon predecessors like $otal Duality 4anagement, 5verhead ?alue Analysis, Eanban or Fust6 n6$ime64anagement. Business processes can be re6engineered by redesigning the steps, by changing the logical and temporal se*uence of the steps, or by changing any other characteristics of the process. $he role of $ is discussed in contradictory #ay. Advocates of information systems favour the vie# that the ne# technology is an enabler of process re6engineering. $ has to be monitored constantly to determine #hether it can generate ne# process designs or contribute to the performance of a business process. $he breakthrough of BPR is closely connected #ith $, #hich opens ne# dimensions of process reorganisation. 4oreover, those #ho take the initiative in process improvement&redesign, influence the role of $. f the data processing department initiates the process change, then $ #ill have more of a generator function for ne# process redesigns. f on the other hand, the top management sets off the change process, then the process #ill be first restructured and later optimised through $. Benefits of BPR ,.)an save a company #hich is running at a loss ..By changing the present process through BPR a losing business can make profits /.)an find ne# business dimensions 0.BPR #ill open up ne# dimension into the existing business 8.)ontinues improvements #ill enhance the business performance 9.5ver all change could enhance the performance of the business G. mproves *uality H. mproves the *uality of service delivery and customer satisfaction 3.1peedier

'ra#backs of BPR ,.)ould be a costly process ..Ceed to invest huge sum of money to introduce such a system /.$ime consuming process 0. t takes lot of time to design such a system and some time take years to plan properly 8.2xtensive planning re*uired 9.Ceed experts to implement and monitor G.Back of experts H. t is bit difficult to find real experts on BPR, sinceI you are going to invest a huge sum of money you need to have such experts to run the sho# )onclusion $he article emphasised the importance of Business Process Redesigning or in other #ards Business Process Reengineering (BPR! in terms of benefits and competitiveness over #eighing the little imbalances #hich might occur due to the fe# dra#backs as #ell. $he essence of the #hole idea of Business Process Redesigning is to achieve dramatic improvements in critical and contemporary measures of performance, such as cost, *uality, services and speed. 5n the other hand it allo#s an organisation to ac*uire a competitive advantage over the other firms in the industry competing #ith each other.

T&EORY OF C'ANGE

As #e define it, a $heory of )hange defines all building blocks re*uired to bring about a given long6term goal. $his set of connected building blocks7 interchangeably referred to as outcomes, results, accomplishments, or preconditions is depicted on a map kno#n as a path#ay of change&change frame#ork, #hich is a graphic representation of the change process. Built around the path#ay of change, a $heory of )hange describes the types of interventions (a single program or a comprehensive community initiative! that bring about the outcomes depicted in the path#ay of a change map. 2ach outcome in the path#ay of change is tied to an intervention, revealing the often complex #eb of activity that is re*uired to bring about change.

A $heory of )hange #ould not be complete #ithout an articulation of the assumptions that stakeholders use to explain the change process represented by the change frame#ork. Assumptions explain both the connections bet#een early, intermediate and long term outcomes and the expectations about ho# and #hy proposed interventions #ill bring them about. 5ften, assumptions are supported by research, strengthening the case to be made about the plausibility of theory and the likelihood that stated goals #ill be accomplished. 1takeholders value theories of change as part of program planning and evaluation because they create a commonly understood vision of the long6term goals, ho# they #ill be reached, and #hat #ill be used to measure progress along the #ay. A $heory of )hange is a specific and measurable description of a social change initiative that forms the basis for strategic planning, on6going decision6 making and evaluation. $he methodology used to create a $heory of )hange is also usually referred to a $heory of )hange, or the $heory of )hange approach or method. 1o, #hen you hear or say =$heory of )hange>, you may mean either the process or the result. Bike any good planning and evaluation method for social change, it re*uires participants to be clear on long6term goals, identify measurable indicators of success, and formulate actions to achieve goals. t differs from any other method of describing initiatives in a fe# #ays+

it '$o0' a %au'al )at$0ay .&om $e&e to t$e&e *y ')e%i.ying 0$at i' nee(e( .o& goal' to *e a%$ie+e( @e.g. you mig$t a&gue t$at %$il(&en atten(ing '%$ool a minimum num*e& o. (ay' i' ne%e''a&y i. t$ey a&e going to lea&nA. it &equi&e' you to a&ti%ulate un(e&lying a''um)tion' 0$i%$ %an *e te'te( an( mea'u&e(. it %$ange' t$e 0ay o. t$in1ing a*out initiati+e' .&om 0$at you a&e (oing to 0$at you 0ant to a%$ie+e an( 'ta&t' t$e&e.

A $heory of )hange provides a roadmap to get you from here to there. f it is good and complete, your roadmap can be read by others and sho# that you kno# ho# to chart your course. $his is helpful #ith constituents, staff, partners organiJations and funders. 4ore importantly, if it is good and complete, you have the best chance of making the change in the #orld you set out to make and of demonstrating your successes and your lessons along the #ay.

The Most "ommon #$siness %eengineering S$ccess &actors and 'itfalls T'"(" a u#)"( o* +"*i itio , o* )u,i ",, -(o.",, ("" !i ""(i !/BPR01 2l"i a + Ma !a "lli i t'"i( )oo3 4T'" R"" !i ""(i ! &a +)oo34 +"*i ", it a, t'" 4Ra-i+ a + (a+i.al ("+",i! o* ,t(at"!i.5 6alu" a++"+ )u,i ",, -(o.",,",7a + t'" ,y,t"#,5 -oli.i", a + o(!a i8atio al ,t(u.tu(", t'at ,u--o(t t'"#7to o-ti#i8" 9o(3 *lo9, a + -(o+u.ti6ity 9it'i a o(!a i8atio 1 :o'a ,,o a + M.'u!' i t'"i( )oo3 4Bu,i ",, P(o.",, R"" !i ""(i !: B("a3-oi t St(at"!i", *o( Ma(3"t Do#i a ."54 +"*i ", it a, 4T'" #"a , )y 9'i.' a o(!a i8atio .a a.'i"6" (a+i.al .'a !" i -"(*o(#a ."5 a, #"a,u("+ )y .o,t5 .y.l" ti#"5 ,"(6i." a + ;uality5 )y t'" a--li.atio o* a 6a(i"ty o* tool, a + t".' i;u", t'at *o.u, o t'" )u,i ",, a, a ,"t o* ("lat"+ .u,to#"(7o(i" t"+ .o(" )u,i ",, -(o.",,", (at'"( t'a a ,"t o* o(!a i8atio al *u .tio ,1 Ro)"(t :a.o), i 'i, )oo35 4R"al Ti#" St(at"!i. C'a !"4 +"*i ", ,t(at"!i. .'a !" /,i#ila( i .o ."-t to BPR0 a, a 4I *o(#"+5 -a(ti.i-ati6" -(o.",, (",ulti ! i "9 9ay, o* +oi ! )u,i ",, t'at -o,itio a " ti(" o(!a i8atio *o( ,u..",,5 o9 a + i to t'" *utu("14 T'" a)o6" +"*i itio , "#-'a,i8" +(a#ati.5 (a+i.al .'a !"5 u,ually o..u((i ! i a ,'o(t ti#" *(a#" t'at "**".t, a .o(" )u,i ",, -(o.",, t'at .ut, a.(o,, *u .tio al li ", a + 9'"(" t'" -"o-l"5 'u#a "#-o9"(#" t "l"#" t i, .(u.ial *o( ,u..",,1 I ("." t y"a(, a u#)"( o* *o(#al BPR CASE a + ot'"( .o#-ut"( ai+"+ +",i! tool, 'a6" )"" "#-loy"+ to ,u--o(t t'" ta,3 o* .("ati ! ,t(u.tu("<-(o.",, +ia!(a#, a + #o+"li ! a o(!a i8atio =, +ata1 Fu(t'"(5 a, .o#-a i", a.'i"6" ,u..",, a + *ailu(" i t'i, -(o.",,5 a u#)"( o* ,ta!", i t'" BPR -(o.",, 'a6" )".o#" .l"a(ly i+" ti*i"+1 T'" )("a3+o9 I li3" )",t i, Ma !a "lli a + 2l"i =, +i6i,io o* t'" BPR -(o.",, i to ,i> ,ta!",1 T'" ,ta!", a + t'" ;u",tio , t'"y ""+ to a++(",, a(": Stage (: 'reparation: W'at i, t'" l"6"l o* o(!a i8atio al .o##it#" t? W'at a(" t'" ">-".tatio ,? W'at a(" t'" -(o@".t !oal,A? W'o ,'oul+ )" o t'" t"a#A W'at a(" t'" (";ui("+ ,3ill ,"t,A? &o9 9ill (",ult, )" .o##u i.at"+ to t'" o(!a i8atio A Stage ): Identification: W'at a(" t'" #a@o( )u,i ",, -(o.",,",A? &o9 +o t'"," -(o.",,", i t"(a.t 9it' .u,to#"( a + ,u--li"( -(o.",,",A? W'at a(" t'" ,t(at"!i. -(o.",,",A? W'at a(" t'" )u,i ",, )("a3-oi t,A? W'at -(o.",,", ,'oul+ )" ("" !i ""("+ 9it'i BC +ay,5 9it'i o " y"a( o( t'"("a*t"(A Stage 3: *ision: W'at a(" t'" ,u)-(o.",,",5 a.ti6iti", a + ,t"-, t'at #a3"u- t'" #a@o( )u,i ",, -(o.",,",? &o9 +o (",ou(.",5 i *o(#atio a + 9o(3 *lo9 t'(ou!' "a.' -(o.",,? W'y +o 9" +o t'" t'i !, 9" +o o9 /!"tti ! out o* t'" )o> o( #" tal -(i,o 0? W'at a(" t'" u +"(lyi ! )u,i ",, a + t".' olo!y a,,u#-tio ,A? A(" t'"(" 9ay, to a.'i"6" )u,i ",, !oal, t'at ,""# i#-o,,i)l" to+ayA /Da(" to D("a#0A? W'at a(" t'" )ou +a(i", )"t9"" )u,i ",, -(o.",,", a + 3"y )u,i ",, -a(t "(, /,u--li"(,5 .u,to#"(,5 "t.10A? &o9 #i!'t t'"," )ou +a(i", )" ("+"*i "+ to i#-(o6" o6"(all -"(*o(#a ."A? W'at a(" 3"y )" .'#a(3i ! #"a,u(", *o(

#"a,u(i ! -"(*o(#a ." a!ai ,t 4)",t o* )(""+4A? W'at a(" t'" ,-".i*i. i#-(o6"#" t !oal,A? W'at i, t'" 6i,io a + ,t(at"!y *o( .'a !"A? &o9 )",t .a a,,o.iat", .olla)o(at" i t'" -(o.",, a + ,'a(" t'" 6i,io a + ,t(at"!y *o( .'a !"A Stage : Sol$tion: Technical +esign: W'at a(" t'" (";ui("+ t".' i.al (",ou(.", a + t".' olo!i", t'" ("" !i ""("+ -(o.",,A ""+"+ i

Stage ,: Sol$tion: So.ial D",i! : W'at a(" t'" (";ui("+ 'u#a (",ou(.",A? W'at i##"+iat"5 "a( t"(# a + lo ! (a !" o--o(tu iti", ">i,tA? &o9 9ill (",-o ,i)iliti", .'a !"A W'at t(ai i ! -(o!(a#, 9ill )" (";ui("+A? W'o i, #o,t li3"ly to (",i,t .'a !"A? &o9 .a t'"y )" #oti6at"+ to a.."-t o( -a(ti.i-at" i t'i, .'a !"? W'at 9ill t'" "9 o(!a i8atio loo3 li3"A Stage -: Transformation: &o9 a + 9'" ,'oul+ -(o!(",, )" #o ito("+A &o9 ,'oul+ u a ti.i-at"+ -(o)l"#, )" 'a +l"+A &o9 i, t'" #o#" tu# *o( .o ti uou, .'a !" ,u,tai "+A?

Cl"a(ly BPR i, a o 7!oi ! -(o.",, .(iti.al to a o(!a i8atio =, ,u..",, i a .o#-"titi6" #a(3"t -la."1 I ,u,-".t t'at i* I a,3 #o,t ">".uti6", o* #i+ to la(!" lo.al .o(-o(atio , i* t'" a(" u,i ! BPR5 t'"y 9ill a ,9"( i t'" a**i(#ati6"1 But I 3 o9 *(o# ">-"(i" ." t'at i* I +i! +""-"(5 9'at I 9ill *i + i, t'at 9'at t'"y t"(# ("" !i ""(i ! i, u,ually a .o#)i atio o* i .("#" tal a+6a .", i i *o(#atio t".' olo!y /a "9 .li" t<,"(6"( ,y,t"#5 a "9 "t9o(35 a "9 ,o*t9a(" -a.3a!"5 a "9 4Di(".to( o* St(at"!i. Pla i !40 a + #a(3"t o--o(tu i,# /!"tti ! a "9 !o6"( #" t o( o6"( ,"a, .o t(a.t5 ">-a +i ! a al("a+y -(o*ita)l" a("a o* t'"i( )u,i ",,5 "t.101 T'" *ollo9i ! a(" t'" #o,t .o##o ,'o(t .o#i !, I 'a6" o),"(6"+: &ail$re 'oint (: S-" +i ! #"!a)u.3, o "9 t".' olo!y 9'il" !i6i ! littl" o( o t'ou!'t to .'a !i ! t'" o(!a i8atio =, u +"(lyi ! )u,i ",, -(o.",,",1 T'" lat"( i, o*t" *a( #o(" +i**i.ult ,i ." it i 6ol6", i 6a+i ! -oliti.al tu(*, a + ,oul ,"a(.'i ! )y t'" .o#-a y=, 3"y ">".uti6",1 &ail$re 'oint ): D"l"!ati ! t'" ta,3 o* ("" !i ""(i ! to a out,i+" .o ,ulti ! *i(#1 U,ually t'i, *i(# 'a, a littl" o( o t(a.3 (".o(+ i ("" !i ""(i ! o( i +u,t(y ,-".i*i. ">-"(i" ."1 T'" out,i+" *i(# i, a ,o(t o* 4.(ut.'45 ("li"6i ! t'" o(!a i8atio *(o# t'" ,o#"ti#", a(+uou, )ut al9ay, ("9a(+i ! ta,3 o* "#-o9"(i ! a + i 6ol6i ! t'"i( "#-loy"", at all l"6"l, i t'" ("" !i ""(i ! -(o.",,1 O*t" t'i, out,i+" *i(# i, u,"+ to '"lt'"# i #a3i ! t'" t".' olo!y +".i,io 5 a ta,3 t'"y a(" u,ually o ly #a(!i ally ;uali*i"+ *o(1 &ail$re 'oint 3: O t'" ot'"( 'a +5 i 6ol6i ! t'" (i!'t out,i+" .o ,ulti ! *i(# .a )" .(iti.al i )("a3i ! +o9

o(!a i8atio al )a((i"(, a + -(o6i+i ! a *(",'5 -(",u#a)ly o)@".ti6" o(!a i8atio al a,,",,#" t1 T'" out,i+" *i(# .a al,o *a.ilitat" t"a# )uil+i ! 9'i.' i, .(iti.al to ,u,tai i ! t'" ("" !i ""(i ! -(o.",,1 All to #a y .o#-a i", 9ill t"ll #" t'at t'"y 3 o9 t'"i( -(o)l"#,5 ,o 9'y )(i ! i a out,i+" *i(#1 But +o t'"y ("ally 3 o9 t'"i( -(o)l"#,A &a6" t'"y +"6"lo-"+ a .l"a( #"t'o+olo!y to a++(",, t'"i( ("" !i ""(i ! ""+,1A &ail$re 'oint : I a)ility to i+" ti*y 3"y )("a3-oi t, i .o(" )u,i ",, -(o.",,",1 B("a3-oi t, a(" +"*i "+ a, t'" a.'i"6"#" t o* ">."ll" ." i o " o( #o(" 6alu" #"t(i., 9'"(" t'" #a(3"t-la." .l"a(ly (".o! i8", t'" a+6a ta!"5 a + 9'"(" t'" " ,ui ! (",ult i, a +i,-(o-o(tio at" a + ,u,tai "+ i .("a," i t'" ,u--li"(=, #a(3"t ,'a("1 &ail$re 'oint ,: A ot'"( .o##o "((o( I ,"" i, t'at #o,t .o#-a i", *ail to .o##it t'" (",ou(.",5 i t"( al o( ">t"( al to t'" ta,31 T'"i( 3"y ">".uti6", a(" ,o )u,y 4-utti ! out *i(",45 t'"y t'i 3 t'"y +o =t 'a6" ti#" to a++(",, BPR -la i ! ""+,1 T'" 3"y t"(# '"(" i, 4t'i 341 BPR o*t" a++(",,", t'" #o,t 4,.("9"+ u-4 -(o.",,", o* a .o#-a y1 I* t'"," a(" ot a++(",,"+ t'"y *",t"( a + .a #"a ulti#at" +i,a,t"(1

BPR team compositionKeditL

5nce organiJation #ide commitment has been secured from all departments involved in the reengineering effort and at different levels, the critical step of selecting a BPR team must be taken. $his team #ill form the nucleus of the BPR effort, make key decisions and recommendations, and help communicate the details and benefits of the BPR program to the entire organiJation. $he determinants of an effective BPR team may be summariJed as follo#s+ competency of the members of the team, their motivation, K.0L their credibility #ithin the organiJation and their creativity, K.8L team empo#erment, training of members in process mapping and brainstorming techni*ues, K.9L effective team leadership,K.GL proper organiJation of the team,K.HL complementary skills among team members, ade*uate siJe, interchangeable accountability, clarity of #ork approach, and specificity of goals.K.3L

$he most effective BPR teams include active representatives from the follo#ing #ork groups+ top management, business area responsible for the process being addressed, technology groups, finance, and members of all ultimate process users groups. $eam members #ho are selected from each #ork group #ithin the organiJation #ill have an

impact on the outcome of the reengineered process according to their desired re*uirements. $he BPR team should be mixed in depth and kno#ledge. -or example, it may include members #ith the follo#ing characteristics+ 4embers #ho do not kno# the process at all. 4embers #ho kno# the process inside6out. )ustomers, if possible. 4embers representing impacted departments. 5ne or t#o members of the best, brightest, passionate, and committed technology experts. 4embers from outside of the organiJation
K.:L

4oreover, )overt (,33G! recommends that in order to have an effective BPR team, it must be kept under ten players. f the organiJation fails to keep the team at a manageable siJe, the entire process #ill be much more difficult to execute efficiently and effectively. $he efforts of the team must be focused on identifying breakthrough opportunities and designing ne# #ork steps or processes that #ill create *uantum gains and competitive advantage. K,8L

"hat is the difference bet#een 2RP and BPRM

$he ma%or characteristics of Business Process Re6engineering (BPR! are cross6functional orientation, process innovation, and customer6focus, clean slate and radical change in the organiJationNs business process by using 2nterprise Resource Planning (2RP! systems. nnovations and ma%or improvements in the performance of business processes are difficult to achieve #ithout leveraging the potential of 2RP. 4ost of the business processes are developed before modern computers and communication technologies existed. 2RP and BRP go hand in hand. $herefore, it is recommended that 2RP should be used to innovate the business processes and not %ust automate. 2RP can be used not only to automate transactional and laborious business processes but also to redesign the #ork management systems in an organiJation. 2RP improves coordination and information access across organiJational units, thereby allo#ing for more effective management of task interdependence.