GLOBALIZATION

- Has to do with processes of international integration arising from increasing human connectivity and interchange of worldviews, products, ideas, and other aspects of culture.

GLOBALIZATION in TQM concept

Since globalization had emerged, international market had grown. A continuous improvement/innovations (TQM) should then be applied in order for a company to compete in an international market.

REENGINEERING in the concept of TQM

BUSINESS PROCESS REENGINEERING

- Fundamental rethinking and radical redesign of a business process to achieve dramatic improvements in critical measures of performance such as cost, service and speed.

BUSINESS PROCESS REENGINEERING Focuses on a broader concept rather

than improving each process of the organization.

BUSINESS PROCESS REENGINEERING BPR focuses on obliterating forms of

work that do not add value, rather than using technology for automating it.

Aims ateliminating repetitive, paper-intensive,

bureaucratic tasksreducing costs significantlyimproving product/service quality.

BPR is Not? BPR may sometimes be mistaken for the following four

tools:

1. Automation is an automatic, as opposed to human, operation or control of a process, equipment or a system; or the techniques and equipment used to achieve this. Automation is most often applied to computer (or at least electronic) control of a manufacturing process.

2. Downsizing is the reduction of expenditures in order to become financial stable. Those expenditures could include but are not limited to: the total number of employees at a company, retirements, or spin-off companies.

BPR is Not? 3. Outsourcing involves paying another

company to provide the services a company might otherwise have employed its own staff to perform. Outsourcing is readily seen in the software development sector.

4. Continuous improvement emphasizes small and measurable refinements to an organization's current processes and systems. Continuous improvements’ origins were derived from total quality management (TQM) and Six Sigma.

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Reengineering & Continuous Improvement--Similarities

Reengineering Continuous ImprovementSimilaritiesBasis of analysis Process ProcessPerformance measurement Rigorous RigorousOrganizational change Significant SignificantBehavioral change Significant SignificantTime investment Substantial Substantial

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Reengineering & Continuous Improvement--Differences

Reengineering Continuous ImprovementDifferencesLevel of change Radical IncrementalStarting point Clean slate Existing processParticipation Top-down Bottom-upTypical scope Broad, cross-functional Narrow, within functionsRisk High ModeratePrimary enabler Information technology Statistical controlType of change Cultural and structural Cultural

Key Steps

Select The Process & Appoint Process Team

Understand The Current Process

Develop & Communicate Vision Of Improved Process

Identify Action Plan

Execute Plan

1. Select the Process & Appoint Process Team Two Crucial Tasks

Select The Process to be Reengineered

Appoint the Process Team to Lead the Reengineering Initiative

Summary Reengineering is a fundamental

rethinking and redesign of business processes to achieve dramatic improvements

BPR has emerged from key management traditions such as scientific management and systems thinking

Rules and symbols play an integral part of all BPR initiatives

Summary Don’t assume anything - remember BPR

is fundamental rethinking of business processes

REINVENTING

Reinventing is an integral part of BPR. As BPR progresses, the need to reinvent the organization, business processes, products & etc. arises.

Reinventing Organizations

The process of reinventing organizations embraces the quest for new and improved methods, strategic

planning, and results oriented performance measurements are on the rise. The implementation of Total Quality Management is one of these reforms. In fact, it is seen as the

primary mechanism for organizational change even though it is recognized as being far from simple. Rather it is seen as a commitment to strategic change that will ultimately restructure the organization and its processes. It is a change in attitude that is often difficult and can actually be quite frustrating at times.