Total Quality Management and Core Process Reengineering

Topics: Process management, Business process reengineering, Management Pages: 21 (6858 words) Published: April 23, 2012
1. Introduction

Businesses enterprise has been realized that there is a need to restructure their business practices and become more customer-focused. All recent business approaches and techniques have generally aimed at improving performance, increasing profits, gaining market share, and most importantly satisfying the customer who has become more educated and more demanding than ever. In the last two decades two organizational development models have dominated the business world for a considerable period of time namely Total Quality Management (TQM) and Core Process Reengineering (CPR).

TQM and CPR share a cross-functional relationship. Quality specialists tend to focus on incremental change and gradual improvement of processes, while proponents of reengineering often seek radical redesign and drastic improvement of processes. Quality management often referred to as TQM or continuous improvement, means programs and initiatives, which emphasize incremental improvement in work processes, and outputs over an open-ended period of time. In contrast, reengineering, also known as business process redesign or process innovation, refers to prudent initiatives intended to achieve radically redesigned and improved work processes in a specific time frame. In contrast to continuous improvement, CPR relies on a different school of thought. The extreme difference between continuous process improvement and core process reengineering lies in where the start from and also the magnitude and rate of resulting changes. In course of time, many derivatives of radical, breakthrough improvement and continuous improvement have emerged to address the difficulties of implementing major changes in corporations. Leadership is really important for effective CPR deployment, and successful leaders use leadership styles to suit the particular situation and perform their tasks, giving due importance to both people and work. Core process is essentially value engineering applied to the system to bring forth, and sustain the product with an emphasis on information flow. By mapping the functions of the business process, low value functions can be identified and eliminated, thus reducing cost. Alternatively, a new and less costly process, which implements the function of the current process, can be developed to replace the present one.

OBJECTIVE OF THIS STUDY: The objective of the study is to analyze and find how total quality management and core process reengineering gain and sustain competitive advantage in a business organization.

Limitations

There had been few limitations of the study. Those are;
1. Time Constraint.
2. Resource Constraint.
3. Limited Knowledge.

2. Total Quality Management (TQM):

2.1. History of TQM:

Total quality management has evolved from the quality assurance methods that were first developed around the time of the First World War. The war effort led to large scale manufacturing efforts that often produced poor quality. To help correct this, quality inspectors were introduced on the production line to ensure that the level of failures due to quality was minimized. After the First World War, quality inspection became more commonplace in manufacturing environments and this led to the introduction of Statistical Quality Control (SQC), a theory developed by Dr. W. Edwards Deming. This quality method provided a statistical method of quality based on sampling. Where it was not possible to inspect every item, a sample was tested for quality. The theory of SQC was based on the notion that a variation in the production process leads to variation in the end product. If the variation in the process could be removed this would lead to a higher level of quality in the end product. After World War Two, the industrial manufacturers in Japan produced poor quality items. In a response to this, the Japanese Union of Scientists and Engineers invited Dr. Deming to train engineers in quality processes. By the 1950’s...
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