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Total Quality Management, Business Process Reengineering and Organisational Processes.

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Introduction

Total Quality Management, Business Process Reengineering and Organisational Processes Organisations all contain some sort of organisational processes. They also all strive to maintain high levels of profit. History has come up with a number of innovative methods to maintain high performance levels. Most place this emphasis on the processes involved in the organisation. The more efficient the processes are in the organisation - the less work that has to be done down the track. One popular method revolves around improving processes is "Total Quality Management" (TQM). "TQM is management and control activities based on the leadership of top management and based on the involvement of all employees and all departments from planning and development to sales and service. These management and control activities focus on quality assurance by which those qualities which satisfy the customer are built into products and services during the above processes and then offered to consumers." (Mazur, 2002) There are many arguments for TQM. From the article "Old wine in new bottles taste better: A case study of TQM implementation in the IRS" it discusses how they dealt with their fall behind in processing 180 million tax returns using TQM. (Mani, 1995, p1) One of the key arguments that the article raises for TQM is that it reduces rework. ...read more.

Middle

This is a far better way to cut cost than the US manufacturing company who waited until errors arose and then searched for improvements in their air conditioners. The main arguments for TQM is cost cutting and at the end of the day improving profit margins. By ensuring all facets of processes to be always under continuous total quality improvement, benefits will flow through to other processes of the organization and thus makes it a successful company. Another such type of organizational process improvement is "Business Process Reengineering" (BPR). "BPR is to make radical changes in an organization from the ground up in an aim to improve performance and make more efficient use of resources. The concept of BPR generally includes the use of computers and information technology to organize data, project trends, etc." (CopmputerUser.com, 2002) BPR has many benefits as the readings suggests. The article "Reengineering of the Patient Flow Process at the Western Sydney Area Health Services" details how by implementing the radical redesign of the Patient Flow Process to link all the booking systems of the hospitals and clinics information regarding patient ailments and care resulted in higher quality service. This change in process made the customers' needs come first. In this case of the Western Sydney Area Health Service (WSAHS) ...read more.

Conclusion

as a means to gain competitive advantage and become more successful. In the cases of the WSAHS, if they were to continue using the processes they had before reengineering then their problems of long waiting lines for patients, high cost, and bad cash flows would continue and thus result in and inevitable demise. This is the same with the TQM case for the IRS in America and the US air conditioner manufacturer. If they didn't improve their processes then they would also find themselves spending more then they receive. But as these organizations use process improvement methods - BPR and TQM, they are able to become more cost effective and become more successful. Companies such as IBM, reduced the time to prepare a quote for buying or leasing a computer from seven days to one, while increasing the number of quotes tenfold. The US Internal Revenue Service achieved successful process innovations, collecting 33% more dollars from delinquent taxpayers with half of its former staff and a third fewer branch offices. (Hammer, 1996, p2) Processes set the ground work for how the organization is run. Without well-organized and structured procedures in place then the organization will not be working at its optimum level of output and not utilizing all its resources. When processes and resources are exhausted to its most beneficial potential then the organization will reap the rewards in being more competitively advantageous over rival firms. ...read more.

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