theory q mihir erp

8/7/2019 Theory q Mihir ERP

http://slidepdf.com/reader/full/theory-q-mihir-erp 1/22

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 toachieve 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 ERPsystems 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 companies²this 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 reducethe 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:

y 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.

y 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.

y 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.

y 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.

y

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.

y 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.



y 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.

y 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 PR OCESS REENGINEER ING (BPR)

BPR RELIES ON A DIFFERENT SCHOOL OF THOUGHT THAN

CONTINUOUS PR OCESS IMPR OVEMENT. IN THE EXTREME ,

REENGINEER ING ASSUMES THE CURRENT PR OCESS IS

IRRELEVANT

- IT DOESN'T WORK,

- IT'S BR OKE,

- FOR GET IT. STAR T OVER .

SUCH A CLEAN SLATE PER SPECTIVE ENABLES THE DESIGNER S OF

BUSINESS PR OCESSES TO DISASSOCIATE THEMSELVES FR OM

TODAY'S PR OCESS, AND FOCUS ON A NEW PR OCESS. IN A MANNER

OF SPEAK ING, IT IS LIKE PR OJECTING YOUR SELF INTO THEFUTURE AND ASK ING YOUR SELF: WHAT SHOULD THE PR OCESS

LOOK LIKE? WHAT DO MY CUSTOMER S 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

PR OCESS IMPR OVEMENT AND BUSINESS PR OCESS

REENGINEER ING LIES IN WHERE YOU STAR T (WITH TODAY'S

PR OCESS, OR WITH A CLEAN SLATE), AND WITH THE MAGNITUDE

AND RATE OF RESULTING CHANGES.

OVER TIME MANY DER IVATIVES OF RADICAL, BREAK THR OUGH

IMPR OVEMENT AND CONTINUOUS IMPR OVEMENT HAVE

EMER GED THAT ATTEMPT TO ADDRESS THE DIFFICULTIES OF

IMPLEMENTING MAJOR CHANGE IN CORPORATIONS. IT IS

DIFFICULT TO FIND A SINGLE APPR OACH EXACTLY MATCHED TO

A PAR TICULAR COMPANY'S NEEDS, AND THE CHALLENGE IS TO

K NOW 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

SER IES.

Q3) sap r3

Ppt

Q4) kaizen

WH

AT

IS

KAIZ

EN

?

KAIZEN MEANS "IMPR OVEMENT".KAIZEN STRATEGY CALLS FOR

NEVER-ENDING EFFOR TS FOR IMPR OVEMENT INVOLVING

EVERYONE IN THE OR GANIZATION - MANAGER S AND WORKER S

ALIKE.

KAIZEN AND MANAGEMENT

MANAGEMENT HAS TWO MAJOR COMPONENTS:

1.MAINTENANCE, AND

2.IMPR OVEMENT.



THE OBJECTIVE OF THE MAINTENANCE FUNCTION IS TO

MAINTAIN CURRENT TECHNOLOGICAL, MANAGER IAL, AND

OPERATING STANDARDS. THE IMPR OVEMENT FUNCTION IS

AIMED AT IMPR OVING CURRENT STANDARDS.

UNDER THE MAINTENANCE FUNCTION, THE MANAGEMENT MUST FIR ST ESTABLISH POLICIES, R ULES, DIRECTIVES AND

STANDARD OPERATING PR OCEDURES (SOPS) AND THEN WORK

TOWARDS ENSUR ING THAT EVERYBODY FOLLOWS SOP. THE

LATTER IS ACHIEVED THR OUGH A COMBINATION OF DISCIPLINE

AND HUMAN RESOUR CE DEVELOPMENT MEASURES.

UNDER THE IMPR OVEMENT FUNCTION, MANAGEMENT WORK S

CONTINUOUSLY TOWARDS REVISING THE CURRENT

STANDARDS, ONCE THEY HAVE BEEN MASTERED, AND

ESTABLISHING HIGHER ONES. IMPR OVEMENT CAN BE BR OKEN

DOWN BETWEEN INNOVATION AND KAIZEN. INNOVATION

INVOLVES A DRASTIC IMPR OVEMENT IN THE EXISTING PR OCESS

AND REQUIRES LAR GE INVESTMENTS. KAIZEN SIGNIFIES SMALL

IMPR OVEMENTS AS A RESULT OF COORDINATED CONTINUOUS

EFFOR TS BY ALL EMPLOYEES.

EMPLOYEE EMPOWER MENT: THE SUGGESTION SYSTEM

THE SUGGESTION SYSTEM IS AN INTEGRAL PAR T OF AN

ESTABLISHED MANAGEMENT SYSTEM THAT AIMS AT

INVOLVING

EM

PLO

YEES

IN

KAIZ

EN.

TH

ENUMB

ER OF

WO

RKER 'S

SUGGESTIONS IS REGARDED AS AN IMPOR TANT CR ITER IA IN

REVIEWING THE PER FOR MANCE OF THE WORKER 'S

SUPER VISOR AND THE MANAGER OF THE SUPER VISOR .

THE JAPANESE MANAGEMENT ENCOURAGES EMPLOYEES TO

GENERATE A GREAT NUMBER OF SUGGESTIONS AND WORK S

HARD TO CONSIDER AND IMPLEMENT THESE SUGGESTIONS,

OFTEN INCORPORATING THEM INTO THE OVERALL KAIZEN

STRATEGY. MANAGEMENT ALSO GIVES DUE RECOGNITION TO

EMPLOYEE'S EFFOR TS FOR IMPR OVEMENT. AN IMPOR TANT

ASPECT OF THE SUGGESTION SYSTEM IS THAT EACH

SUGGESTION, ONCE IMPLEMENTED, LEADS TO AN UPGRADED

STANDARD.

QUALITY CONTR OL (QC) CIR CLES CAN BE VIEWED AS A GR OUP-

OR IENTED SUGGESTION SYSTEM FOR MAK ING IMPR OVEMENTS.



QC CIR CLE IS A SMALL GR OUP THAT VOLUNTAR ILY PER FOR MS

QUALITY-CONTR OL ACTIVITIES IN THE WORKPLACE.

TOTAL QUALITY CONTR OL (TQC) INVOLVES EVERYONE IN THE

OR GANIZATION AND IS AIMED AT IMPR OVEMENT OF

MANAGER IAL PER FOR MANCE ATALL LEVELS. PR OCESS-OR IENTED THINK ING VS. RESULT-OR IENTED

THINK ING

KAIZEN CONCENTRATES AT IMPR OVING THE PR OCESS RATHER

THAN AT ACHIEVING CER TAIN RESULTS. SUCH MANAGER IAL

ATTITUDES AND PR OCESS THINK ING MAKE A MAJOR

DIFFERENCE IN HOW AN OR GANIZATION MASTER S CHANGE AND

ACHIEVES IMPR OVEMENTS.



KAIZEN'S STAR TING POINT:

SETTING

TH

E R IGHT

MIN

DS

ET

&BUSIN

ESS

ENVIR ONMENT

y NOT A SI NGLE DAY SHOULD GO BY

WITHOUT SOME KI ND OF IMPROVEME NT

BEI NG MADE SOMEWHERE I N THECOMPA NY

y CUSTOMER-DRIVE N STRATEGY FOR

IMPROVEME NT - A NY MA NAGEME NT

ACTIVITY SHOULD EVE NTUALLY LEAD TO

I NCREASED CUSTOMER SATISFACTIO N

y QUALITY FIRST, NOT PROFIT FIRST - A N

E NTERPRISE CA N PROSPER O NLY IF

CUSTOMERS WHO PURCHASE ITSPRODUCTS OR SERVICES ARE SATISFIED

y RECOG NITIO N THAT A NY CORPORATIO N

HAS PROBLEMS A ND ESTABLISHI NG A

CORPORATE CULTURE WHERE EVERYO NE

CA N FREELY ADMIT THESE PROBLEMS A ND

SUGGEST IMPROVEME NT

y PROBLEM SOLVI NG IS SEE N AS CROSS-

FU NCTIO NAL SYSTEMIC A NDCOLLABORATIVE APPROACH

y EMPHASIS O N PROCESS - ESTABLISHI NG A

WAY OF THI NKI NG ORIE NTED AT

IMPROVI NG PROCESSES, A ND A

MA NAGEME NT SYSTEM THAT SUPPORTS

A ND ACK NOWLEDGES PEOPLE'S PROCESS-

ORIE NTED EFFORTS FOR IMPROVEME NT

THE KEY KAIZEN PRACTICES

MINDSET & CULTURE

y CUSTOMER

ORIE NTATIO N

PR ODUCTION

PR OCESS

y AUTOMATIO N



y QUALITY CO NTROL(QC) CIRCLES

y SUGGESTIO N SYSTEM

y DISCIPLI NE I N THEWORKPLACE

y SMALL-GROUP

ACTIVITIES

y COOPERATIVE

LABOR-

MA NAGEME NTRELATIO NS

y TOTAL QUALITY

CO NTROL (TQC)

y QUALITY

IMPROVEME NT

&ROBOTICS

y AUTO NOMATIO N

y ZERO DEFECTS

y TOTAL

PRODUCTIVEMAI NTE NA NCE(TPM)

y

y JUST-I N-TIME (JIT)

y PRODUCTIVITYIMPROVEME NT

y NEW PRODUCT

DEVELOPM

E N

T



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 DESCRIPTIO N OF THE CULTURE, ATTITUDE A ND

ORGA NIZATIO N OF A COMPA NY THAT STRIVES TO PROVIDE

CUSTOMERS WITH PRODUCTS A ND SERVICES THAT SATISFY THEIR

NEEDS. THE CULTURE REQUIRES QUALITY I N ALL ASPECTS OF THE

COMPA NY'S OPERATIO NS, WITH PROCESSES BEI NG DO NE RIGHT THE

FIRST TIME A ND DEFECTS A ND WASTE ERADICATED FROM

OPERATIO NS.

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

employees can become involved in the continuous improvement of the productionof 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 SEEK S TO

INTEGRATE ALL OR GANIZATIONAL FUNCTIONS (MARKETING,FINANCE, DESIGN, ENGINEER ING, AND PR ODUCTION, CUSTOMER

SER VICE, ETC.) TO FOCUS ON MEETING CUSTOMER NEEDS AND

OR GANIZATIONAL 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:

y Commitment by senior management and all employees

y Meeting customer requirements

y Reducing development cycle times

y Just In Time/Demand Flow Manufacturing

y Improvement teams

y Reducing product and service costs

y Systems to facilitate improvement

y Line Management ownership

y Employee involvement and empowerment

y Recognition and celebration

y Challenging quantified goals and benchmarking

y Focus on processes / improvement plans

y

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

PRI NCIPLES OF TQM

THE KEY PRI NCIPLES OF TQM ARE AS FOLLOWI NG:3

y

MA NAGEME NT COMMITME NT1. PLA N (DRIVE, DIRECT)

2. DO (DEPLOY, SUPPORT, PARTICIPATE)

3. CHECK (REVIEW)

4. ACT (RECOG NIZE, COMMU NICATE, REVISE)

y EMPLOYEE EMPOWER ME NT

1. TRAI NI NG

2. SUGGESTIO N SCHEME3. MEASUREME NT A ND RECOG NITIO N

4. EXCELLE NCE TEAMS

y FACT BASED DECISIO N MAKI NG



1. SPC (STATISTICAL PROCESS CO NTROL)

2. TOPS ( TEAM ORIE NTED PROBLEM SOLVI NG)

y CO NTI NUOUS IMPROVEME NT

1. SYSTEMATIC MEASUREME NT A ND FOCUS O N CO NQ

2. EXCELLE NCE TEAMS

3. CROSS-FU NCTIO NAL PROCESS MA NAGEME NT

4. ATTAI N, MAI NTAI N, IMPROVE STA NDARDS

y CUSTOMER FOCUS

1. SUPPLIER PART NERSHIP

2. SERVICE RELATIO NSHIP WITH I NTER NAL CUSTOMERS

3. NEVER COMPROMISE QUALITY

4. CUSTOMER DRIVE N STA NDARDS



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 meansthat 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 fieldanalysis; 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 ontheir 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 I N LI NE AT THE GROCERY STORE, YOU

CA N APPRECIATE THE NEED FOR PROCESS IMPROVEME NT. I N THIS

CASE, THE "PROCESS" IS CALLED THE CHECK-OUT PROCESS, A ND THEPURPOSE OF THE PROCESS IS TO PAY FOR A ND 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 pr ocess 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 PR OCESSES ARE SIMPLY A SET OF ACTIVITIES THAT

TRANSFOR M A SET OF INPUTS INTO A SET OF OUTPUTS (GOODS

OR SER VICES) FOR ANOTHER PER SON OR PR OCESS USING PEOPLE

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ER PLAY THE R OLE OF CUSTOMER OR SUPPLIER .

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