Theory Q Mihir ERP

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Q1) ERP and its Advantages & Disadvantages

Enterprise resource planning (ERP) systems attempt to integrate several data


sources and processes of an organization into a unified system. A typical ERP
system will use multiple components of computer software and hardware to
achieve the integration. A key ingredient of most ERP systems is the use of a
unified database to store data for the various system modules.
The two key components of an ERP system are a common database and a modular
software design. A common database is the system that allows every department of
a company to store and retrieve information in real-time. Using a common
database allows information to be more reliable, accessible, and easily shared.
Furthermore, a modular software design is a variety of programs that can be added
on an individual basis to improve the efficiency of the business. This improves the
business by adding functionality, mixing and matching programs from different
vendors, and allowing the company to choose which modules to implement. These
modular software designs link into the common database, so that all of the
information between the departments is accessible in real time.
Disadvantages

Problems with ERP systems are mainly due to inadequate investment in ongoing
training for involved personnel, including those implementing and testing changes,
as well as a lack of corporate policy protecting the integrity of the data in the ERP
systems and how it is used.
Disadvantages

Customization of the ERP software is limited.

Re-engineering of business processes to fit the "industry standard" prescribed by


the ERP system may lead to a loss of competitive advantage.

ERP systems can be very expensive leading to a new category of "ERP light"
solutions

ERPs are often seen as too rigid and too difficult to adapt to the specific workflow
and business process of some companies—this is cited as one of the main causes of
their failure.
Many of the integrated links need high accuracy in other applications to work
effectively. A company can achieve minimum standards, then over time "dirty
data" will reduce the reliability of some applications.

Once a system is established, switching costs are very high for any one of the
partners (reducing flexibility and strategic control at the corporate level).

The blurring of company boundaries can cause problems in accountability, lines of


responsibility, and employee morale.

Resistance in sharing
sensitive internal
information between
departments can reduce
the effectiveness of the
software.
Some large
organizations may have
multiple departments
with separate,
independent resources,
missions, chains-of-
command, etc, and
consolidation into a
single enterprise may
yield limited benefits.
The system may be too
complex measured
against the actual needs
of the customer.
There are twelve major reasons for why companies get bogged down or fail
in implementing ERP.

(1) Lack of Top Management Commitment


The propensity of top management to delegate the oversight of an ERP
implementation to lower management levels often results in (1) being "out
of touch" with critical events, or (2) the lack of understanding of the size,
scope, and technical aspects of the project, and subsequently, the lack of
proper commitment of time and resources required for a successful
implementation.  The result is a failure waiting to happen.

(2) Inadequate Requirements Definition


Surveys have shown that inadequate definition of functional requirements
accounts for nearly 60% of ERP implementation failures. This is simply a
matter of not comprehensively and systematically developing a quality set of
functional requirements definitions. This leads to the second greatest cause
of ERP implementation failures: poor package selection.

(3) Poor ERP Package Selection


Poor package selection occurs when a company has inadequately developed
functional requirements definitions. It also occurs when staff members
assigned to ERP projects do not take the time to run the screens of the new
system, as they would during their daily work tasks, to find out if the
software package features are adequate for their needs.

Another reason we have found is executives, familiar with an ERP system


from a last job they held, implement the same system in their new company
without defining functional requirements. We have also encountered
companies who made major gaffes by selecting a package at the top levels of
a company without intimately knowing its characteristics. What often results
from this is the ERP package doesn't fit the organizational needs, or that the
package selected takes longer to process daily work tasks.
We have also seen executives select a distribution package for a
manufacturing environment, or a manufacturing package for a distribution
environment, for obscure reason, such as liking one salesman over another.
(4) Inadequate Resources
The third greatest reason for ERP implementation failures is inadequate
resources. Many companies will attempt to "save dollars" by doing
everything on an overtime basis, whether or not there are adequate skills
within the company, extending individual work loads to 150%. This
approach can be a "kiss of death" for the program. Time and time again we
run across this mistake in ERP implementations. The financial and
emotional drain of what seems sometimes to be perpetual extensions,
reschedules and delays of implementations takes its toll. People burn out
after having put in extensive hours over a long period of time.
(5) Resistance to Change/Lack of Buy-in
The lack of a change management approach as part of the program can
prevent a program from succeeding. Resistance to change is quite often
caused by (1) A failure to build a case for change, (2) Lack of involvement
by those responsible for working with changed processes (3) Inadequate
communication (4) Lack of visible top management support and
commitment, and (5) Arrogance.  A lack of buy-in often results from not
getting end-users involved in the project from the very start, thereby
negating their authorship and ownership of the new system and processes.
(6) Miscalculation of Time and Effort
Another cause of ERP implementation failure is the miscalculation of effort
and time it will take to accomplish the project.  Companies who treat an
ERP selection, evaluation and implementation comparable to buying a
washing machine are doomed to failure.
(7) Misfit of Application Software with Business Processes
One of the main causes of ERP implementation failure is the misfit of
application software with the company business processes. This failure -- to
examine underlying business process flaws, and integrate the applications
with the business processes, causes loss of productivity and time, and
ultimate benefits.

(8) Unrealistic Expectation of Benefits and ROI


Another significant cause for ERP implementation failure is the unrealistic
expectation of benefits and return on investment.  Software providers are
notorious for overstating the benefits in terms of ROI, when the  total costs
of the project have been understated.  Often left out of the total costs are
costs of planning, consulting fees, training, testing, data conversions,
documentation, replacement staffing, and the learning curve performance
drop.  When this happens, a company doesn't stand a chance of achieving
the ROI it anticipated.
(9) Inadequate Training and Education
Another of the biggest causes of ERP implementation failure is inadequate
education and training, which are almost always underestimated. ERP-
related training is crucial as most employees must learn new software
interfaces and business processes which affect the operation of the entire
enterprise. The corporate culture is impacted by changes in the company’s
business processes, and shortchanging this part of the ERP implementation
leads to much pain and suffering downstream.
(10) Poor Project Design and Management
A major mistake is to short-cut critical events in the project plan, such as
time for documentation, redefining and integrating processes, or testing
before "going live."

Another common mistake is made when a company leaves out the self-
examination of business processes and uses ERP to cover-up weaknesses. It
is easier to buy software than to perform the more difficult task of
identifying weaknesses and opportunities for improvement.
(11) Poor Communications
One of the causes of ERP implementation failure is poor project
communications, beginning with a failure to announce the reason for the up
and coming effort, and continuing to advise the organization of the progress
and importance of the ERP implementation to the company.  Poor
communications prevent different parts of the organization from assessing
how they will be impacted by changes in processes, policies, and
procedures.  Communications are a vital part of managing change in a
corporate environment.

12) Ill-advised Cost Cutting


Another of the key causes of ERP implementation failure is ill-advised cost
cutting.  In an effort to avoid temporary conversion costs, some companies take a
very risky route and go live at multi-plant sites simultaneously, subjecting all
plants or some plants to a total shutdown should there be a false start-up.  This is
suicidal.  Others attempt to unrealistically compress the schedule in order to save
on expenses, only to eventually overrun both schedule and budget.  We feel that
ROI should take a "back seat" when upgrading an important part of a company's
infrastructure: the information system.  Instead the implementation should be
treated as an upgrade to the company infrastructure that is necessary to maintain or
gain a strategic and competitive advantage.
Advantages of ERP:

 Ease of use – The system of ERP is very user friendly. With the correct
amount of training, it becomes easy for the employees to use the system.
 Best business practices – The ERP system helps companies to do away
with the erroneous ways of carrying out the different business functions and
introduces business best practices. This further helps to provide better
control and introduces standardized ways to execute business processes.
 Ready-made elucidation for most of the problems – Most of the problems
get resolved as the vendors who develop ERP software packages, take the
best ideas from all their customers and incorporate them into their products.
 Only customization required – ERP Systems are already developed to suit
the general businesses. But as every company has a slightly different way of
operating, only minor changes may be needed to customize the system to
suit the company’s particular business requirements.
 Information entered only once into the system – As all the departments
and the functions in the organization are integrated and linked to one single
database, data needs to be entered only once into the system. It can then, be
accessed by different departments according to their needs. For example,
before taking an order from a customer, the sales representative can have
access to information regarding availability of inventory, cr rating of the
customer, etc.
 Easy enterprise wide information sharing – Once the information is
entered into the single database, everyone in the organization has access to
the information and sees the same computer screen.
 Reduction in time required to complete tasks – As the different parts of
the organization are connected with each other, people have faster access to
information and require less time to do their tasks. This helps to improve the
time and resources for decision-making.
 Customer satisfaction – In the paper-based system, the order moved from
basket to basket around the organization, and often caused delays, errors in
processing due to repeated entries by the different department or got lost.
With the ERP system, the order process moves quickly through the
organization. This helps to get the orders to the customers faster and there is
no in-basket time waiting time involved.

Q2) bpr

BUSINESS PROCESS REENGINEERING (BPR)

BPR RELIES ON A DIFFERENT SCHOOL OF THOUGHT THAN


CONTINUOUS PROCESS IMPROVEMENT. IN THE EXTREME,
REENGINEERING ASSUMES THE CURRENT PROCESS IS
IRRELEVANT

- IT DOESN'T WORK,
- IT'S BROKE,
- FORGET IT. START OVER.

SUCH A CLEAN SLATE PERSPECTIVE ENABLES THE DESIGNERS OF


BUSINESS PROCESSES TO DISASSOCIATE THEMSELVES FROM
TODAY'S PROCESS, AND FOCUS ON A NEW PROCESS. IN A MANNER
OF SPEAKING, IT IS LIKE PROJECTING YOURSELF INTO THE
FUTURE AND ASKING YOURSELF: WHAT SHOULD THE PROCESS
LOOK LIKE? WHAT DO MY CUSTOMERS WANT IT TO LOOK LIKE?
WHAT DO OTHER EMPLOYEES WANT IT TO LOOK LIKE? HOW DO
BEST-IN-CLASS COMPANIES DO IT? WHAT MIGHT WE BE ABLE TO
DO WITH NEW TECHNOLOGY?
Such an approach is pictured below. It begins with defining the scope and
objectives of your reengineering project, then going through a learning process
(with your customers, your employees, your competitors and non-competitors, and
with new technology). Given this knowledge base, you can create a vision for the
future and design new business processes. Given the definition of the "to be" state,
you can then create a plan of action based on the gap between your current
processes, technologies and structures, and where you want to go. It is then a
matter of implementing your solution.
IN SUMMARY, THE EXTREME CONTRAST BETWEEN CONTINUOUS
PROCESS IMPROVEMENT AND BUSINESS PROCESS
REENGINEERING LIES IN WHERE YOU START (WITH TODAY'S
PROCESS, OR WITH A CLEAN SLATE), AND WITH THE MAGNITUDE
AND RATE OF RESULTING CHANGES.

OVER TIME MANY DERIVATIVES OF RADICAL, BREAKTHROUGH


IMPROVEMENT AND CONTINUOUS IMPROVEMENT HAVE
EMERGED THAT ATTEMPT TO ADDRESS THE DIFFICULTIES OF
IMPLEMENTING MAJOR CHANGE IN CORPORATIONS. IT IS
DIFFICULT TO FIND A SINGLE APPROACH EXACTLY MATCHED TO
A PARTICULAR COMPANY'S NEEDS, AND THE CHALLENGE IS TO
KNOW WHAT METHOD TO USE WHEN, AND HOW TO PULL IT OFF
SUCCESSFULLY SUCH THAT BOTTOM-LINE BUSINESS RESULTS
ARE ACHIEVED. SUCH ARE THE TOPICS FOR THIS MODULE
SERIES.

Q3) sap r3
Ppt
Q4) kaizen

WHAT IS KAIZEN?

KAIZEN MEANS "IMPROVEMENT".KAIZEN STRATEGY CALLS


FOR NEVER-ENDING EFFORTS FOR IMPROVEMENT INVOLVING
EVERYONE IN THE ORGANIZATION - MANAGERS AND WORKERS
ALIKE.
KAIZEN AND MANAGEMENT

MANAGEMENT HAS TWO MAJOR COMPONENTS:

1. MAINTENANCE, AND
2. IMPROVEMENT.
THE OBJECTIVE OF THE MAINTENANCE FUNCTION IS TO
MAINTAIN CURRENT TECHNOLOGICAL, MANAGERIAL, AND
OPERATING STANDARDS. THE IMPROVEMENT FUNCTION IS
AIMED AT IMPROVING CURRENT STANDARDS.
UNDER THE MAINTENANCE FUNCTION, THE MANAGEMENT
MUST FIRST ESTABLISH POLICIES, RULES, DIRECTIVES AND
STANDARD OPERATING PROCEDURES (SOPS) AND THEN WORK
TOWARDS ENSURING THAT EVERYBODY FOLLOWS SOP. THE
LATTER IS ACHIEVED THROUGH A COMBINATION OF DISCIPLINE
AND HUMAN RESOURCE DEVELOPMENT MEASURES.
UNDER THE IMPROVEMENT FUNCTION, MANAGEMENT WORKS
CONTINUOUSLY TOWARDS REVISING THE CURRENT
STANDARDS, ONCE THEY HAVE BEEN MASTERED, AND
ESTABLISHING HIGHER ONES. IMPROVEMENT CAN BE BROKEN
DOWN BETWEEN INNOVATION AND KAIZEN. INNOVATION
INVOLVES A DRASTIC IMPROVEMENT IN THE EXISTING PROCESS
AND REQUIRES LARGE INVESTMENTS. KAIZEN SIGNIFIES SMALL
IMPROVEMENTS AS A RESULT OF COORDINATED CONTINUOUS
EFFORTS BY ALL EMPLOYEES.
EMPLOYEE EMPOWERMENT: THE SUGGESTION SYSTEM
THE SUGGESTION SYSTEM IS AN INTEGRAL PART OF AN
ESTABLISHED MANAGEMENT SYSTEM THAT AIMS AT
INVOLVING EMPLOYEES IN KAIZEN. THE NUMBER OF WORKER'S
SUGGESTIONS IS REGARDED AS AN IMPORTANT CRITERIA IN
REVIEWING THE PERFORMANCE OF THE WORKER'S
SUPERVISOR AND THE MANAGER OF THE SUPERVISOR.
THE JAPANESE MANAGEMENT ENCOURAGES EMPLOYEES TO
GENERATE A GREAT NUMBER OF SUGGESTIONS AND WORKS
HARD TO CONSIDER AND IMPLEMENT THESE SUGGESTIONS,
OFTEN INCORPORATING THEM INTO THE OVERALL KAIZEN
STRATEGY. MANAGEMENT ALSO GIVES DUE RECOGNITION TO
EMPLOYEE'S EFFORTS FOR IMPROVEMENT. AN IMPORTANT
ASPECT OF THE SUGGESTION SYSTEM IS THAT EACH
SUGGESTION, ONCE IMPLEMENTED, LEADS TO AN UPGRADED
STANDARD.
QUALITY CONTROL (QC) CIRCLES CAN BE VIEWED AS A GROUP-
ORIENTED SUGGESTION SYSTEM FOR MAKING IMPROVEMENTS.
QC CIRCLE IS A SMALL GROUP THAT VOLUNTARILY PERFORMS
QUALITY-CONTROL ACTIVITIES IN THE WORKPLACE.
TOTAL QUALITY CONTROL (TQC) INVOLVES EVERYONE IN THE
ORGANIZATION AND IS AIMED AT IMPROVEMENT OF
MANAGERIAL PERFORMANCE AT ALL LEVELS.
PROCESS-ORIENTED THINKING VS. RESULT-ORIENTED
THINKING
KAIZEN CONCENTRATES AT IMPROVING THE PROCESS RATHER
THAN AT ACHIEVING CERTAIN RESULTS. SUCH MANAGERIAL
ATTITUDES AND PROCESS THINKING MAKE A MAJOR
DIFFERENCE IN HOW AN ORGANIZATION MASTERS CHANGE AND
ACHIEVES IMPROVEMENTS.
KAIZEN'S STARTING POINT:
SETTING THE RIGHT MINDSET & BUSINESS
ENVIRONMENT

 NOT A SINGLE DAY SHOULD GO BY


WITHOUT SOME KIND OF IMPROVEMENT
BEING MADE SOMEWHERE IN THE
COMPANY
 CUSTOMER-DRIVEN STRATEGY FOR
IMPROVEMENT - ANY MANAGEMENT
ACTIVITY SHOULD EVENTUALLY LEAD TO
INCREASED CUSTOMER SATISFACTION
 QUALITY FIRST, NOT PROFIT FIRST - AN
ENTERPRISE CAN PROSPER ONLY IF
CUSTOMERS WHO PURCHASE ITS
PRODUCTS OR SERVICES ARE SATISFIED
 RECOGNITION THAT ANY CORPORATION
HAS PROBLEMS AND ESTABLISHING A
CORPORATE CULTURE WHERE EVERYONE
CAN FREELY ADMIT THESE PROBLEMS
AND SUGGEST IMPROVEMENT
 PROBLEM SOLVING IS SEEN AS CROSS-
FUNCTIONAL SYSTEMIC AND
COLLABORATIVE APPROACH
 EMPHASIS ON PROCESS - ESTABLISHING
A WAY OF THINKING ORIENTED AT
IMPROVING PROCESSES, AND A
MANAGEMENT SYSTEM THAT SUPPORTS
AND ACKNOWLEDGES PEOPLE'S PROCESS-
ORIENTED EFFORTS FOR IMPROVEMENT
THE KEY KAIZEN PRACTICES
MINDSET & PRODUCTION
CULTURE PROCESS
 CUSTOMER  AUTOMATION
ORIENTATION &ROBOTICS
 QUALITY  AUTONOMATION
CONTROL (QC)  ZERO DEFECTS
CIRCLES
 TOTAL
 SUGGESTION PRODUCTIVE
SYSTEM MAINTENANCE
 DISCIPLINE IN (TPM)
THE WORKPLACE 
 SMALL-GROUP  JUST-IN-TIME
ACTIVITIES (JIT)
 COOPERATIVE  PRODUCTIVITY
LABOR- IMPROVEMENT
MANAGEMENT
RELATIONS  NEW PRODUCT
DEVELOPMENT
 TOTAL QUALITY
CONTROL (TQC)
 QUALITY
IMPROVEMENT
Q5 ) TOTAL QUALITY MANAGEMENT (TQM)

Total Quality Management is a management approach that originated in the 1950's


and has steadily become more popular since the early 1980's.

TOTAL QUALITY 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.

Total Quality Management, TQM, is a method by which management and


employees can become involved in the continuous improvement of the production
of goods and services. It is a combination of quality and management tools aimed
at increasing business and reducing losses due to wasteful practices.

Some of the companies who have implemented TQM include Ford Motor
Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor
Company.1

TQM DEFINED
TQM IS A MANAGEMENT PHILOSOPHY THAT SEEKS TO
INTEGRATE ALL ORGANIZATIONAL FUNCTIONS (MARKETING,
FINANCE, DESIGN, ENGINEERING, AND PRODUCTION, CUSTOMER
SERVICE, ETC.) TO FOCUS ON MEETING CUSTOMER NEEDS AND
ORGANIZATIONAL OBJECTIVES.

TQM views an organization as a collection of processes. It maintains that


organizations must strive to continuously improve these processes by incorporating
the knowledge and experiences of workers. The simple objective of TQM is "Do
the right things, right the first time, every time". TQM is infinitely variable and
adaptable. Although originally applied to manufacturing operations, and for a
number of years only used in that area, TQM is now becoming recognized as a
generic management tool, just as applicable in service and public sector
organizations. There are a number of evolutionary strands, with different sectors
creating their own versions from the common ancestor.
TQM is the foundation for activities, which include:

 Commitment by senior management and all employees


 Meeting customer requirements
 Reducing development cycle times
 Just In Time/Demand Flow Manufacturing
 Improvement teams
 Reducing product and service costs
 Systems to facilitate improvement
 Line Management ownership
 Employee involvement and empowerment
 Recognition and celebration
 Challenging quantified goals and benchmarking
 Focus on processes / improvement plans
 Specific incorporation in strategic planning

This shows that TQM must be practiced in all activities, by all personnel, in
Manufacturing, Marketing, Engineering, R&D, Sales, Purchasing, HR, etc.2

PRINCIPLES OF TQM

THE KEY PRINCIPLES OF TQM ARE AS FOLLOWING:3

 MANAGEMENT COMMITMENT
1. PLAN (DRIVE, DIRECT)
2. DO (DEPLOY, SUPPORT, PARTICIPATE)
3. CHECK (REVIEW)
4. ACT (RECOGNIZE, COMMUNICATE, REVISE)

 EMPLOYEE EMPOWERMENT
1. TRAINING
2. SUGGESTION SCHEME
3. MEASUREMENT AND RECOGNITION
4. EXCELLENCE TEAMS
 FACT BASED DECISION MAKING
1. SPC (STATISTICAL PROCESS CONTROL)
2. TOPS ( TEAM ORIENTED PROBLEM SOLVING)

 CONTINUOUS IMPROVEMENT
1. SYSTEMATIC MEASUREMENT AND FOCUS ON CONQ
2. EXCELLENCE TEAMS
3. CROSS-FUNCTIONAL PROCESS MANAGEMENT
4. ATTAIN, MAINTAIN, IMPROVE STANDARDS

 CUSTOMER FOCUS
1. SUPPLIER PARTNERSHIP
2. SERVICE RELATIONSHIP WITH INTERNAL CUSTOMERS
3. NEVER COMPROMISE QUALITY
4. CUSTOMER DRIVEN STANDARDS
The Concept of Continuous Improvement by TQM
TQM is mainly concerned with continuous improvement in all work, from high
level strategic planning and decision-making, to detailed execution of work
elements on the shop floor. It stems from the belief that mistakes can be avoided
and defects can be prevented. It leads to continuously improving results, in all
aspects of work, as a result of continuously improving capabilities, people,
processes, technology and machine capabilities.

Continuous improvement must deal not only with improving results, but more
importantly with improving capabilities to produce better results in the future. The
five major areas of focus for capability improvement are demand generation,
supply generation, technology, operations and people capability.

A central principle of TQM is that mistakes may be made by people, but most of
them are caused, or at least permitted, by faulty systems and processes. This means
that the root cause of such mistakes can be identified and eliminated, and repetition
can be prevented by changing the process.1

There are three major mechanisms of prevention:

1. Preventing mistakes (defects) from occurring (Mistake - proofing or Poka-


Yoke).
2. Where mistakes can't be absolutely prevented, detecting them early to
prevent them being passed down the value added chain (Inspection at source
or by the next operation).
3. Where mistakes recur, stopping production until the process can be
corrected, to prevent the production of more defects. (Stop in time).

Implementation 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.5

However, a certain level of stress is probably desirable to initiate TQM. People


need to feel a need for a change. Kanter (1983) addresses this phenomenon be
describing building blocks which are present in effective organizational change.
These forces include departures from tradition, a crisis or galvanizing event,
strategic decisions, individual "prime movers," and action vehicles. Departures
from tradition are activities, usually at lower levels of the organization, which
occur when entrepreneurs move outside the normal ways of operating to solve a
problem. A crisis, if it is not too disabling, can also help create a sense of urgency
which can mobilize people to act. In the case of TQM, this may be a funding cut or
threat, or demands from consumers or other stakeholders for improved quality of
service. After a crisis, a leader may intervene strategically by articulating a new
vision of the future to help the organization deal with it. A plan to implement TQM
may be such a strategic decision. Such a leader may then become a prime mover,
who takes charge in championing the new idea and showing others how it will help
them get where they want to go. Finally, action vehicles are needed and
mechanisms or structures to enable the change to occur and become
institutionalized.8

Steps in Managing the Transition


Beckhard and Pritchard (1992) have outlined the basic steps in managing a
transition to a new system such as TQM: identifying tasks to be done, creating
necessary management structures, developing strategies for building commitment,
designing mechanisms to communicate the change, and assigning resources.

Task identification would include a study of present conditions (assessing current


reality, as described above); assessing readiness, such as through a force field
analysis; creating a model of the desired state, in this case, implementation of
TQM; announcing the change goals to the organization; and assigning
responsibilities and resources. This final step would include securing outside
consultation and training and assigning someone within the organization to oversee
the effort. This should be a responsibility of top management. In fact, the next step,
designing transition management structures, is also a responsibility of top
management. In fact, Cohen and Brand (1993) and Hyde (1992) assert that
management must be heavily involved as leaders rather than relying on a separate
staff person or function to shepherd the effort. An organization wide steering
committee to oversee the effort may be appropriate. Developing commitment
strategies was discussed above in the sections on resistance and on visionary
leadership.6

To communicate the change, mechanisms beyond existing processes will need to


be developed. Special all-staff meetings attended by executives, sometimes
designed as input or dialog sessions, may be used to kick off the process, and TQM
newsletters may be an effective ongoing communication tool to keep employees
aware of activities and accomplishments.

Management of resources for the change effort is important with TQM because
outside consultants will almost always be required. Choose consultants based on
their prior relevant experience and their commitment to adapting the process to fit
unique organizational needs. While consultants will be invaluable with initial
training of staff and TQM system design, employees (management and others)
should be actively involved in TQM implementation, perhaps after receiving
training in change management which they can then pass on to other employees. A
collaborative relationship with consultants and clear role definitions and
specification of activities must be established.

In summary, first 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.

Remember that this will be a difficult, comprehensive, and long-term process.


Leaders will need to maintain their commitment, keep the process visible, provide
necessary support, and hold people accountable for results. Use input from
stakeholder (clients, referring agencies, funding sources, etc.) as possible; and, of
course, maximize employee involvement in design of the system.7

Always 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.
Conclusion
TQM encoureges participation amongst shop floor workers and managers. There is
no single theoretical formalization of total quality, but Deming, Juran and Ishikawa
provide the core assumptions, as a "...discipline and philosophy of management
which institutionalizes planned and continuous... improvement ... and assumes that
quality is the outcome of all activities that take place within an organization; that
all functions and all employees have to participate in the improvement process;
that organizations need both quality systems and a quality culture.".

Q7) process of modification

Will let u knw in sum time.

Q8) explain process

The purpose of Organization Process Definition is to develop and maintain a usable set
of telecommunications process assets that improve process performance across the
services and projects and provide a basis for cumulative, long-term benefits to the
organization. Organization process definition involves developing and maintaining
the organization's standard telecommunications process, along with related process
assets, such as descriptions of telecommunications life-cycles, process tailoring
guidelines and criteria, the organization's telecommunications process database,
and a library of telecommunications process-related documentation

A business process is a prescribed sequence of work steps that is intended to be


completed in order to produce a specific result. A business process is initiated by a
particular kind of event, has a well-defined beginning and end, and is usually
completed in a relatively short period of time.

Purpose of this module:

1. Gain an understanding of what is meant by "business process".


2. Understand and contrast continuous process improvement and business
process reengineering (BPR).
IF YOU HAVE EVER WAITED IN LINE AT THE GROCERY STORE, YOU
CAN APPRECIATE THE NEED FOR PROCESS IMPROVEMENT. IN THIS
CASE, THE "PROCESS" IS CALLED THE CHECK-OUT PROCESS, AND THE
PURPOSE OF THE PROCESS IS TO PAY FOR AND BAG YOUR
GROCERIES.

The process begins with you stepping into line, and ends with you receiving your
receipt and leaving the store. You are the customer (you have the money and you
have come to buy food), and the store is the supplier.

The process steps are the activities that you and the store personnel do to complete
the transaction. In this simple example, we have described a business process.
Imagine other business processes: ordering clothes from mail order companies,
requesting new telephone service from your telephone company, developing new
products, administering the social security process, building a new home, etc.

BUSINESS PROCESSES ARE SIMPLY A SET OF ACTIVITIES THAT


TRANSFORM A SET OF INPUTS INTO A SET OF OUTPUTS (GOODS
OR SERVICES) FOR ANOTHER PERSON OR PROCESS USING PEOPLE
AND TOOLS. WE ALL DO THEM, AND AT ONE TIME OR ANOTHER
PLAY THE ROLE OF CUSTOMER OR SUPPLIER.

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