Table of Contents

Table of Contents.........................................................................1
Introduction.................................................................................3
Overview:....................................................................................5
ELEMENTS OF A TOTAL QUALITY MANAGEMENT PROGRAM:.............8
Corrective Action........................................................................14
Performance Reports ...........................................................................................................14
Problem Solving ...................................................................................................................14
Continuing Emphasis ............................................................................................................14

Principles Of TQM : ...................................................................19

TQM Implementation Approaches ...............................................21
Advantages of Total Quality Management:...................................22
Disadvantages of Total Quality Management:...............................22
Core Process Engineering (CPR)...................................................23
Major Steps in CPR:....................................................................24
Core Process Reengineering Cycle:..............................................25
NEED FOR RE-ENGINEERING – WHEN AND WHY:............................29
METHODOLOGY:.........................................................................30
Problems that effect CPR:...........................................................32
CASE STUDY- M & G PENSIONS:...................................................33
Alternative techniques to CPR.....................................................40
Reengineering Recommendations................................................44
CONCLUSION:.............................................................................45

Abstract
TQM (Total Quality management) and CPR (Core process
reengineering) are two widely used complementary approaches to
improving firms, process capabilities. TQM focuses on encouraging a
continuous flow of incremental improvements from the bottom of
organization’s hierarchy. CPR, on the other hand is generally more of a
top down approach, aimed at more radical changes in how processes
are designed.

The principles of quality management are well developed and, from a

practical standpoint, thoroughly implemented in the process industries
of Japan. Although these principles are now applied to the U.S.
manufacturing industry, and as a result, the steel industry, they have
been largely ignored in the non-ferrous and precious metals industries.
This paper presents the concepts and practical approaches to
implement a total quality management program. Contrary to the
beliefs of many managers, such a program increase yields, recoveries
and output while it decreases unit costs. In fact, quality management
incorporating statistical process control will be an essential ingredient
for metallurgical plants to effectively compete in the future.

Total Quality Management or TQM Management as sometimes it is

called, is a very broad continuous improvement initiatives that many
organizations have jumped into the band wagon aimed to drive their
business into sustainable profitability. Many organizations started the
Total Quality Management (TQM) journey with full Leadership
commitment and total Employee involvement. They laid the foundation
in continuous improvement culture and total quality, They provides
various TQM Quality training in the use of TQM Tools, implemented the
TQM tools in improvement projects. However, not many organization
are able to sustain its continuous improvement momentum long
enough to create an impact to mold the total quality culture in his
organization.

Core Process Reengineering involves changes in structures and in

processes within the business environment. The entire technological,
human, and organizational dimensions may be changed in CPR.
Information Technology plays a major role in Core Process
Reengineering as it provides office automation; it allows the business
to be conducted in different locations, provides flexibility in
manufacturing, permits quicker delivery to customers and supports
rapid and paperless transactions. In general it allows an efficient and
effective change in the manner in which work is performed.

Introduction
As noted by Deming (1982), in 1950 Japan’s net worth was negative; it
had no significant natural resources and had a reputation for producing
cheap, shoddy consumer goods. Their management, however, was
open to new ideas and they accepted that quality was the only way to
turn their economy around. Forty years later Japan’s manufactured
products are the envy of the world and are of the highest quality. Their
approach to management of resources is completely different from the
traditional American approach. Total quality management, having been
established in the manufacturing industries, has continued to grow and
is now pervasive throughout enterprise in the country. American
industry continues to lose ground in world markets at the expense of
Japanese companies.

Belatedly, some American manufacturing companies, notably Ford

Motor Company, have begun to implement the types of quality
management approaches used in the transformation of Japan’s
industry. These manufacturing companies are demanding that their
suppliers use these same management approaches. Therefore, there is
a tendency for the quality concepts to move "upstream" in the supplier
chain. This has mostly occurred in the steel industry, with some
influence in base metals supplied to the steel industry.

Unfortunately, the influence of quality management concepts has not

been felt in most American companies in the base metals and precious
metals industries. A large majority of senior management personnel in
these industries is unfamiliar with essential quality management
concepts such as statistical process control (SPC). Based on the
thrashing American manufactured products have taken in world
markets, one must expect that products from the chemical and metals
process industries will be next unless the change to "Total Quality
Management" is made soon.

Core 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.

You may see Core Processes pictured as a set of triangles as shown

below. The purpose of this model is to define the supplier and process
inputs, your process, and the customer and associated outputs. Also
shown is the feedback loop from customers.

Core Process reengineering (CPR) is a management approach aiming

at improvements by means of elevating efficiency and effectiveness of
the processes that exist within and across organizations. The key to
CPR is for organizations to look at their Core Processes from a "clean
slate" perspective and determine how they can best construct these
processes to improve how they conduct business.

Core Process reengineering is also known as CPR, Core Process

Redesign, Business Transformation, or Core Process Change
Management.

CPR 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 Core 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 Core 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 Core Process reengineering lies in where we start
(with today's process, or with a clean slate), and with the magnitude
and rate of resulting changes.

Overview:
This paper provides a description of Total Quality Management and
Core process reengineering which are both usually managed as broad-
based, multifaceted improvement efforts that entail a variety of
initiatives and activities. Initially we depict the picture of TQM and then
CPR and find their similarities and differences on approaches to
process improvement.

TRADITIONAL APPROACH TO QUALITY CONTROL

Quality control has been an important function in organizations

producing goods for sale where product specifications are important.
Quality control has generally not been an important function where
product specifications are not important at the point of sale. This is
many times the case for commodities early in the production chain, for
example, the shipment of concentrates.

The approach to quality control has usually followed this sequence:

1. Produce the product with major emphasis on cost and quantity.

2. Measure the product after it is produced to determine whether it

meets product specifications.

3. Ship products meeting specifications and reject products not

meeting the specifications.

This sequence is almost universally followed by arguments between

the production department and quality control department over the
amount of product rejected.

In operations where quality is not a concern at the point of sale, the

sequence generally skips step numbers two and three in the list above.

In the traditional management approach, quality control is generally

thought to result in higher marginal costs of production. Tighter control
requires more scrutiny, which requires more inspectors. Tighter
controls also result in additional production costs because productivity
is decreased as a result of additional controls in the production
process. Where quality control is not practiced, costs would be the
least since these controls would not be required. For this reason,
operating managers, quite naturally, are most interested in avoiding
additional emphasis on quality. This is particularly true when there is
no requirement for quality control at the point of sale.

As was initially postulated by American quality pioneers, such as

Walter A. Stewart and W. Edwards Deming, and amply proved in
practice by Japanese heavy industry, the traditional American
approach to quality management is almost entirely wrong.

TOTAL QUALITY MANAGEMENT: A NON-TRADITIONAL

APPROACH

To maximize quality, variation must be minimized. Variation is

sometimes called the fundamental cause of poor quality (Evans, 1989).
Variation can also be called the fundamental cause of high unit costs.
For instance, low cyanide concentration in a leach circuit will result in
lower recoveries. High cyanide concentration will result in excessive
cyanide consumption. In either case, unit production costs are
increased. Examples of the impact of variation on unit production costs
are endless. Whether one talks about the flux control in smelting,
reagent control in flotation, or density control in grinding, variation
from design parameters will increase unit production costs; the more
the variation the higher the costs.

The total quality management approach concentrates on reducing

variation in the production process. To the degree this is successful it
improves quality and unit costs at the same time. Therefore, the total
quality management approach is essential not only to improve quality,
but to optimize production costs. To survive in the increasingly
competitive world market these approaches are essential whether or
not the quality control of product is important in the traditional sense.

VARIATION

There are two types of variation: random and non-random. Random

variation results from inherent characteristics of the production
process. A reagent metering feeder will vary the quantity of reagent
metered per unit time around some mean value. The amount of the
random variation will be a function of the type of feeder, clearances in
its construction, stability of the control loop, type of variable speed
drive, etc. Non-random variation results from influences from outside
the process system, which are generally under the operator’s control.
Such non-random variation might result from equipment disrepair,
changes in feed characteristic without appropriate adjustment to the
system by the operator, or other influences on the process.
The first requirement for improving quality (and costs) is an
understanding of the nature of variation, and the means to determine
the degree of random and non-random variation in the production
process. The second requirement is to take appropriate action to
reduce non-random variation. The third requirement is to take
appropriate action to reduce the random variation. Actions effective in
minimizing non-random variation are useless and counterproductive
when used to reduce random variation.
ELEMENTS OF A TOTAL QUALITY MANAGEMENT PROGRAM:

The following elements are essential in any successful quality

management program:
1. Management commitment to total quality management.
2. Training in simple statistical techniques, the nature of samples,
collecting data, variation and the program to be implemented.
3. Organization structure emphasizing work group authority and
accountability for results.
4. Statistical process Control (SPC) system to monitor and control
process variable variation.
5. Formal performance reports based on output from the SPC
system.
6. Systemized team approach to problem solving.
7. Continuing emphasis on reducing variation in the product
process.
Management Commitment

To be effective the total quality management program must be

executed by front line shift personnel. For this to work, however, top
management must be totally committed to the program. There have
been many instances where senior managers gave lip service to
implementing quality programs simply to keep customers happy, or
where managers wanted to go with the latest management fad. In
these cases the program is doomed to failure. The system, when
implemented, will cause problems to surface. Many of these problems
will require decisions and actions by senior management. If such
actions are not forthcoming, employees quickly become disillusioned
with the program.
We recommend that a quality management manual is produced with
the company’s commitment to quality spelled out in the introduction
and signed by the senior site executive. This commitment must include
sufficient participation and training for site personnel to ensure their
understanding of the program.
Training and Participation
Statistical process control will require operators, using charts prepared
by engineering personnel, to compute means and ranges based on
measurements of groups of data. These data will then be plotted on
control charts and used to assess variation in the process. The plotted
data will indicate the degree of random and non-random variation.
Following initial training in using the SPC approach, work teams
consisting of operators, foreman, and metallurgists, working together
as a team, establish the control methods for each plant area.
Organization Structure

While the traditional organization must remain intact, the quality

management system will be driven from the bottom up. The primary
responsibility of foremen will be to train operators, provide technical
advice on data collected, and ensure non-random variation is acted
upon immediately and to work with more senior management
personnel in the continuing effort to reduce random variation.
The primary responsibility of more senior managers will be to provide
employees with a process control system and necessary training in its
use. Senior management is also responsible to participate in problem
solving teams and to make improvements to the process, where
necessary, to reduce random variation.
Accountability for results will be pushed to the lowest possible level.
Control charts will be used by the operators to assess performance
over the short term. Summary performance reports prepared from the
statistical process control system will be used to assess performance
over the longer term. Operators must be given the necessary authority
and latitude to make required adjustments to reduce non-random
variation indicated by the control charts. Operators, close to the work,
are also likely to have good suggestions for process system
modifications necessary to reduce random variation.
Statistical Process Control (SPC)

The objective of SPC is to identify non-random variation in a critical

process variable as soon after it occurs as possible. It also allows for
identifying the degree of random variation that is an inherent part of
the process itself.
The following steps are used to construct an SPC program:
1. Divide the production operation into major process areas. A major
process area usually has the following characteristics:
• A major function with measurable output,
• Contains equipment dedicated to a single task, and
• Has an assigned regular work crew.
Examples might include a grinding circuit, smelting furnace or flotation
circuit.
2. Identify each unit operation in the process control area. A unit
operation normally has the following characteristics:
• A specific operation performed in the process area, and
• Usually results in a physical or chemical change to the feed or
product material. Examples might include a ball mill, cyclone or
filter.
3. Identify the critical process variables for each unit operation. A
critical process variable usually has the following characteristics:
• A parameter significantly affecting the performance of the unit
operation, and
• A measurable and controllable quantity for which someone can be
held accountable.
Examples of process variables might include temperature, density,
size, or flow rate.
A process control chart illustrating the process areas, unit operations
and variables is included in the quality management manual.
Accountabilities are also shown for control of each unit operation.
A control standard is then developed for each process variable. The
control standard establishes the method and accountability for control.
The format for a control standard can be flexible, but might include the
following:
• Variable to be controlled
• Accountability
• Definitions*
 • Process Standard
• Reason for Control
• Measurement
• Reporting*
• Control Chart*
• Operating Procedure
• Corrective Action
• Disposition of non-compliant product*

*Where applicable
The control standard is included in the quality management manual.
Ideally, the control standards would be a part of an overall set of
manuals for the plant which would also include a process description,
safe job procedures, etc.
Control Charts. The heart of the SPC system is the control chart.
There are several types of control charts, each used for a specific
application. The most common chart used for process applications is
the x bar and R chart. As noted by Ishikawa (1971), the x bar and R
chart is actually two charts in one. The x bar portion of the chart
mainly shows any changes in the mean value of the process, while the
R portion shows any changes in the dispersion of the process as a
function of time.
X bar points are calculated by taking the mean of from two to six
sequential measurements of the variable. If only six measurements
were taken during a shift or a full day, they would represent a plotted
point for each shift or day. Otherwise, they might represent the mean
of from two to six measurements taken during production of a lot, or
during a period of time.
The R points represent the range of the highest to the lowest
measurement in the same group of two to six measurements. Figure 1
below, from Ishikawa (1971), illustrates a typical x bar and R chart.
The central line, represented by x bar, bar is the mean of the x bars
taken over a long period (minimum of 100 sample measurements). The
R bar represents the mean of the ranges taken over a long period
(minimum of 100 sample measurements). Upper and lower control
limits (UCL and LCL) are calculated based on simple published
statistical formulas. Again, from Ishikawa:

SPC FORMULA CONSTANTS N A2 D4

2 1.880 3.267
3 1.023 2.575
4 0.729 2.282
5 0.577 2.115
6 0.483 2.004

It is important to recognize that the control limits have nothing to do

with customer specifications or production requirements. They
represent plus and minus three standard deviations around the mean,
or x bar, bar central line. As has been said by Deming (1982), "…it is
the process talking to us." Randomly plotted points within the x bar or
R chart control limits represent random variation inherent in the
process itself. Points outside the control limits, or a non-random
pattern inside the control limits, represents non-random variation for
which the operator must find the cause. Examples of non-random
variation include:

• Any points outside of the control limits.

• A generally upward or downward trend (6 or 7 successive points)

with only one crossing of the central line.

• Five or more crossings of the mean within fifteen data points or

seven or more crossings within twenty data points.

• A recurring pattern (cycling).

• Seven or more successive points on the same side of the central

mean.

Use of SPC control charts of this type clearly illustrates statistically

significant non-random variation. Figures 2 and 3 from Ishikawa
illustrate some examples of non-random variation within the control
limits. Simply plotting each point measured on a graph will not provide
obvious patterns of non-random variation.

Other types of control charts are used for different circumstances, such
as attribute charting. Attributes include number of defectives, percent
defective, etc. The references listed at the end of this paper include
details of these types of control charts.

Corrective Action
It is the job of the operator to monitor the designated variables.
Further, the operator must take corrective action in accordance with
the control standard to eliminate the non-random variation when it
occurs.

Performance Reports
Results from the SPC control charts should be summarized and
integrated into weekly and monthly management performance reports.
These reports can summarize chart data for each work crew and area.

Problem Solving
In some instances, correction of non-random variation may be out of
the operator’s control and require problems to be solved. In almost all
cases, reducing random variation will require the solving of problems
outside the operator’s control. In these instances, establishing a team
consisting of operators, supervisors, engineers and in many cases
suppliers is the most effective way to achieve a solution. The reduction
of random variation, generally represented by the area within the
chart’s control lines, will require an improvement to the process control
system.
The team approach must be applied through a systematic problem
solving methodology with specific assignments for additional
information or experiments made to appropriate team members.
Technical personnel can apply their knowledge of experiment design to
facilitate the information gathering.

Continuing Emphasis
It is most important that senior management act when the total quality
management program indicates action is justified and necessary.
Solving problems and eliminating non-random variation is only half the
battle. Management must continue to emphasize the importance of
always taking the next step, eliminating the next bottleneck, and in
general, to continue to improve the process and reduce random
variation.

How To Measure TQM Success?

Implementing TQM is an initiative many organizations wanted to

embark on. Assuming that you are a leader of this organization, a
common question you probably asked would be: “How do I know
whether my organization is successful in implementing TQM?”

TQM implementation has been in my mind for a long time and I

wondered how to measure the success of TQM implementation in an
organization. If we take organizations who are winners of the Baldrige
Award, then my question is whether taking an assessment based on
Baldrige Criteria an appropriate measure to gage the success of TQM
in an organization.

There is no doubt that measuring TQM implementation is success rate

is of interest with all if not most leaders. Otherwise, how would you as
a leader know the effort put into implementing TQM is really
worthwhile, more so when a lot of resources such a money, manpower
etc are deployed to support the implementation of a TQM initiative.

So, would you ask a similar question before the TQM initiative is
started? Or You would ask half way during its implementation? How
would you like to measure the success of the TQM implementation? Do
you accept the opinion of your management comment alone or you
rather based on some form of evaluation result?

One of the ways to evaluate the TQM success is to adopt a holistic

approach of assessing your organization. One of the examples of such
a holistic approach is the Malcolm Baldrige National Quality Award
assessment approach. This is a national level award system in the
United States to recognize organizations for achieving an excellent in
their respective business.

To prepare for an assessment, you need to understand the Baldrige

criteria which are used a reference for the assessment. Once you have
understood the Baldrige Criteria, you would start to conduct an
assessment based on these criteria. You may perform a self
assessment guided by the Baldrige Self Assessment criteria to
ascertain your level of performance with reference to the Baldrige
Criteria. For a self assessment, it takes must lesser time. Alternatively,
you can go for a full scale assessment. This mode of assessment may
be conducted by your management team or a 3rd party Baldrige
Assessors.

To help you to adopt the Baldrige Criteria, there are eleven core values
and concepts used by the Baldrige Criteria. To jump start your
assessment effort, perhaps you start with the understanding of these
core values and concepts.

Customer-driven quality

TQM has a customer-first orientation. The customer, not internal

activities and constraints, comes first. Customer satisfaction is seen as
the company's highest priority. The company believes it will only be
successful if customers are satisfied. The TQM Company is sensitive to
customer requirements and responds rapidly to them. In the TQM
context, `being sensitive to customer requirements' goes beyond
defect and error reduction, and merely meeting specifications or
reducing customer complaints. The concept of requirements is
expanded to take in not only product and service attributes that meet
basic requirements, but also those that enhance and differentiate them
for competitive advantage.

Each part of the company is involved in Total Quality, operating as a

customer to some functions and as a supplier to others. The
Engineering Department is a supplier to downstream functions such as
Manufacturing and Field Service, and has to treat these internal
customers with the same sensitivity and responsiveness as it would
external customers.

TQM leadership from top management

TQM is a way of life for a company. It has to be introduced and led by

top management. This is a key point. Attempts to implement TQM
often fail because top management doesn't lead and get committed -
instead it delegates and pays lip service. Commitment and personal
involvement is required from top management in creating and
deploying clear quality values and goals consistent with the objectives
of the company, and in creating and deploying well defined systems,
methods and performance measures for achieving those goals. These
systems and methods guide all quality activities and encourage
participation by all employees. The development and use of
performance indicators is linked, directly or indirectly, to customer
requirements and satisfaction, and to management and employee
remuneration.

Continuous improvement

Continuous improvement of all operations and activities is at the heart

of TQM. Once it is recognized that customer satisfaction can only be
obtained by providing a high-quality product, continuous improvement
of the quality of the product is seen as the only way to maintain a high
level of customer satisfaction. As well as recognizing the link between
product quality and customer satisfaction, TQM also recognizes that
product quality is the result of process quality. As a result, there is a
focus on continuous improvement of the company's processes. This
will lead to an improvement in process quality. In turn this will lead to
an improvement in product quality, and to an increase in customer
satisfaction. Improvement cycles are encouraged for all the company's
activities such as product development, use of EDM/PDM, and the way
customer relationships are managed. This implies that all activities
include measurement and monitoring of cycle time and responsiveness
as a basis for seeking opportunities for improvement.

Elimination of waste is a major component of the continuous

improvement approach. There is also a strong emphasis on prevention
rather than detection, and an emphasis on quality at the design stage.
The customer-driven approach helps to prevent errors and achieve
defect-free production. When problems do occur within the product
development process, they are generally discovered and resolved
before they can get to the next internal customer.

Fast response
To achieve customer satisfaction, the company has to respond rapidly
to customer needs. This implies short product and service introduction
cycles. These can be achieved with customer-driven and process-
oriented product development because the resulting simplicity and
efficiency greatly reduce the time involved. Simplicity is gained
through concurrent product and process development. Efficiencies are
realized from the elimination of non-value-adding effort such as re-
design. The result is a dramatic improvement in the elapsed time from
product concept to first shipment.

Actions based on facts

The statistical analysis of engineering and manufacturing facts is an

important part of TQM. Facts and analysis provide the basis for
planning, review and performance tracking, improvement of
operations, and comparison of performance with competitors. The TQM
approach is based on the use of objective data, and provides a rational
rather than an emotional basis for decision making. The statistical
approach to process management in both engineering and
manufacturing recognizes that most problems are system-related, and
are not caused by particular employees. In practice, data is collected
and put in the hands of the people who are in the best position to
analyze it and then take the appropriate action to reduce costs and
prevent non-conformance. Usually these people are not managers but
workers in the process. If the right information is not available, then
the analysis, whether it be of shop floor data, or engineering test
results, can't take place, errors can't be identified, and so errors can't
be corrected.

Employee participation

A successful TQM environment requires a committed and well-trained

work force that participates fully in quality improvement activities.
Such participation is reinforced by reward and recognition systems
which emphasize the achievement of quality objectives. On-going
education and training of all employees supports the drive for quality.
Employees are encouraged to take more responsibility, communicate
more effectively, act creatively, and innovate. As people behave the
way they are measured and remunerated, TQM links remuneration to
customer satisfaction metrics.

A TQM culture

It's not easy to introduce TQM. An open, cooperative culture has to be

created by management. Employees have to be made to feel that they
are responsible for customer satisfaction. They are not going to feel
this if they are excluded from the development of visions, strategies,
and plans. It's important they participate in these activities. They are
unlikely to behave in a responsible way if they see management
behaving irresponsibly - saying one thing and doing the opposite.

Product development in a TQM environment

Product development in a TQM environment is very different to product

development in a non-TQM environment. Without a TQM approach,
product development is usually carried on in a conflictual atmosphere
where each department acts independently. Short-term results drive
behavior so scrap, changes, work-around, waste, and rework are
normal practice. Management focuses on supervising individuals, and
fire-fighting is necessary and rewarded.

Product development in a TQM environment is customer-driven and

focused on quality. Teams are process-oriented, and interact with their
internal customers to deliver the required results. Management's focus
is on controlling the overall process, and rewarding teamwork.

Principles Of TQM :

1- Be Customer focused:
Whatever you do for quality improvement, remember that ONLY
customers determine the level of quality, whatever you do to foster
quality improvement, training employees, integrating quality into
processes management, ONLY customers determine whether your
efforts were worthwhile.

2-Insure Total Employee Involvement:

This done after you remove fear from work place, then empower
employee ... you provide the proper environment.

3- Process Centered:

Fundamental part of TQM is to focus on Process thinking.

4- Integrated system:

All employees must know business mission and vision must monitor
the process. An integrated business system may be modeled by
MBNQA or ISO 9000.

5- Strategic and systematic approach:

Strategic plan must integrate quality as core component.

6- Continual Improvement:

Using analytical and creative thinking in finding ways to become more

effective.

7- Fact Based Decision Making:

Decision making must be ONLY on data, not personal thinking or

situational.

8- Communication:

Communication strategy, method and timeliness must be well defined.

TQM Implementation Approaches

No one solution is effective for planning and implementing TQM

concepts in all situations.

Following are generic models for implementing total quality

management theory:

1- Train top management on TQM principles.

2- Assess the current: Culture, customer satisfaction, quality

management system.

3- Top management determines the core values and principles to be

used and communicate them.

4- Develop TQM master plan based on steps 1, 2, 3.

5- Identify and prioritize customer needs and determine products or

service to meet those needs.

6- Determine the critical processes to produce those products or

services.

7- Create process improvement teams.

8- Managers should support effort by planning, training, time.... to the

team.

9- Integrate changes for improvement in daily process management

and standardizations take place.

10- Evaluate progress against plan (step 8) and adjust as needed.

11- Constant employee awareness and feedback on status are

provided and a reward/ recognition process is established.

Strategies to develop TQM

1-TQM elements approach:

Take key Core Process and use TQM Tools to foster improvement.
e.g.: quality circles, statistical process control, taguchi method, quality
function deployment.

2 - The guru approach:

Using the guides of one of the leading quality thinker.

3- Organization model approach:

The organization use Benchmarking or MBNQA as model for

excellence.

4- Japanese total quality approach:

Companies want to get deeming prize use deeming principles.

Advantages of Total Quality Management:

1. Improves reputation- faults and problems are spotted and sorted
quicker (zero defects)

2. Higher employee morale– workers motivated by extra responsibility,

team work and involvement in decisions of TQM

3. Lower costs – Decrease waste as fewer defective products and no

need for separate

4. Quality Control inspectors

Disadvantages of Total Quality Management:

1. Initial introduction costs- training workers and disrupting current
production whilst being implemented

2. Benefits may not be seen for several years.

3. Workers may be resistant to change – may feel less secure in

jobs.
Core Process Engineering (CPR)
"Core Process Reengineering, although a close relative, seeks radical
rather than merely continuous improvement. It escalates the efforts of
JIT and TQM to make process orientation a strategic tool and a core
competence of the organization. CPR concentrates on core Core
Processes, and uses the specific techniques within the JIT and TQM
”toolboxes” as enablers, while broadening the process vision."

In order to achieve the major improvements CPR is seeking for, the

change of structural organizational variables, and other ways of
managing and performing work is often considered as being
insufficient. For being able to reap the achievable benefits fully, the
use of information technology (IT) is conceived as a major contributing
factor. While IT traditionally has been used for supporting the existing
business functions, i.e. it was used for increasing organizational
efficiency, it now plays a role as enabler of new organizational forms,
and patterns of collaboration within and between organizations.

CPR derives its existence from different disciplines, and four major
areas can be identified as being subjected to change in CPR -
organization, technology, strategy, and people - where a process view
is used as common framework for considering these dimensions. The
approach can be graphically depicted by a modification of "Leavitt’s
diamond" (Leavitt 1965).

Business strategy is the primary driver of CPR initiatives and the other
dimensions are governed by strategy's encompassing role. The
organization dimension reflects the structural elements of the
company, such as hierarchical levels, the composition of organizational
units, and the distribution of work between them. Technology is
concerned with the use of computer systems and other forms of
communication technology in the business. In CPR, information
technology is generally considered as playing a role as enabler of new
forms of organizing and collaborating, rather than supporting existing
business functions. The people / human resources dimension deals
with aspects such as education, training, motivation and reward
systems. The concept of Core Processes - interrelated activities aiming
at creating a value added output to a customer - is the basic
underlying idea of CPR. These processes are characterized by a
number of attributes: Process ownership, customer focus, value-
adding, and cross-functionality.

Major Steps in CPR:

Senior managers may begin the task of process alignment by a series
of CPR steps. These steps develop a self-reinforcing cycle of
commitment, communication & culture change. The steps may include
gaining commitment to change through the formulation of the top
team, developing a shared vision & mission of the business & of what
change is required, defining the measureable objectives, which must
be agreed by the team, as being the quantifiable indicators of success
in terms of the mission, identify the CSFs based on the mission of the
organization.

Following steps should be followed to implement CPR.

1. Break down the CSFs into the key or critical Core Processes &
gain process ownership.

2. Break down the critical processes into sub processes, activities &
tasks & form the teams around these.

3. Redesign, monitor & adjust the process alignment in response to

difficulties in the change process.
Core Process Reengineering Cycle:
Transformation or Core Process Change Management Reengineering is
a fundamental rethinking and radical redesign of Core Processes to
achieve dramatic improvements in cost, quality, Core Process
reengineering is also known as CPR, Core Process Redesign, Business
speed, and service. CPR combines a strategy of promoting business
innovation with a strategy of making major improvements to Core
Processes so that a company can become a much stronger and more
successful competitor in the marketplace.

The main proponents of reengineering were Michael Hammer and

James A. Champ. In a series of books including Reengineering the
Corporation, Reengineering Management, and The Agenda, they argue
that far too much time is wasted passing-on tasks from one
department to another. They claim that it is far more efficient to
appoint a team who are responsible for all the tasks in the process. In
The Agenda they extend the argument to include suppliers,
distributors, and other business partners.

Re-engineering is the basis for many recent developments in

management. The cross-functional team, for example, has become
popular because of the desire to re-engineer separate functional tasks
into complete cross-functional processes. Also, many recent
management information systems developments aim to integrate a
wide number of business functions. Enterprise resource planning,
supply chain management, knowledge management systems,
groupware and collaborative systems, Human Resource Management
Systems and customer relationship management systems all owe a
debt to re-engineering theory.

Basic elements of business process:

• Motivation to perform

• Data gathering, processing and storing

• Information processing

• Checking, validating and control

• Decision making

Process of CPR Exercise:

• Recast people organization into process organization

• Segregate process by customer type-internal and external

• Identify process by:

1. Impact on customer

2. High decision incidence

3. High information exchange

4. High incidence of checks, control and validations

5. High knowledge base

• Determine the value to the customer in terms of:

1. Price/Cost

2. Quality

3. Service
 4. Delivery

• Identify the enablers of redesigning

• Set a benchmark for achievement

• Rank the process by:

1. Feasibility

2. Cost

3. Impact on value to the customer

• Appoint the team for each process

• Monitor the process of re-engineering

Through this process, a typical business transaction is settled for

acceptance, fulfilling various other needs outside the process in the
organization. For example, the receipt of goods, a transaction when
processed with the information technology application, settles a
number of aspects of this one transaction. The aspects are whether:

The receipt is against the valid purchase order

Goods received are as per specifications both in terms of quality and

quantity

The terms and conditions of supplies are fully met

The value declarations are correct and complete

Amount payable is computed and kept ready for confirmation the bill
of the supplier.

Since all such aspects with the variations are settled at one place in
one stroke, the dependent steps in rest of the business functions are
expedited reducing the total process cycle time.
Relevance of Information Technology:

The capability of IT is phenomenally higher and assures dramatic

results in the cost, time, service and delivery. It increases the people
productivity and process effectiveness. The relevance of IT is
appropriate due to its merit as catalyst and the process partner for
improvement. .....

The role of information technology

Information technology (IT) has historically played an important role in

the reengineering concept. It is considered by some as a major enabler
for new forms of working and collaborating within an organization and
across organizational borders.

Early CPR literature identified several so called disruptive technologies

that were supposed to challenge traditional wisdom about how work
should be performed.

• Shared databases, making information available at many places

• Expert systems, allowing generalists to perform specialist tasks

• Telecommunication networks, allowing organizations to be

centralized and decentralized at the same time

• Decision-support tools, allowing decision-making to be a part of

everybody's job

• Wireless data communication and portable computers, allowing

field personnel to work office independent

• Interactive videodisk, to get in immediate contact with potential

buyers

• Automatic identification and tracking, allowing things to tell

where they are, instead of requiring to be found
• High performance computing, allowing on-the-fly planning and
provisioning

In the mid 1990s, especially workflow management systems were

considered as a significant contributor to improved process efficiency.
Also ERP (Enterprise Resource Planning) vendors, such as SAP, JD
Edwards, Oracle, PeopleSoft, positioned their solutions as vehicles for
Core Process redesign and improvement.

NEED FOR RE-ENGINEERING – WHEN AND WHY:

Each organisation must determine itself when it is appropriate for them

to reengineer. Reengineering should be done only if it can help in
achieving an enhanced strategic position. Some strategic indicators
that require reengineering include

1. Realisation that competitors will have advantage in cost, speed,

flexibility, quality or service

2. New vision or strategy: a need to build operational capabilities.

3. Need to re-evaluate strategic options, enter new market or redefine

products/services.

4. Core operating processes are based on outdated

assumptions/technologies.

5. Strategic business objectives seem unreasonable.

6. Change in market place in the form of

• Loss of market share

• New basis of competition/new competitors

• New regulations

• Shorter product life cycles

• New technologies in play.

So, if the company is at the cutting edge of an industry that has just
undergone major changes reengineering might not be appropriate.

However, if the organisation operates with old models instead of new

technologies and approaches used by others, reengineering may be
urgently needed. Even if technical performance is adequate, other
improvements may be needed – such as training, organisational
change, leadership development etc. In such circumstances also
reengineering is required.

METHODOLOGY:
Although the names and steps being used differ slightly between the
different methodologies, they share the same basic principles and
elements.

1. Envision new processes

1. Secure management support

2. Identify reengineering opportunities

3. Identify enabling technologies

4. Align with corporate strategy

2. Initiating change

1. Set up reengineering team

2. Outline performance goals

3. Process diagnosis

1. Describe existing processes

2. Uncover pathologies in existing processes

4. Process redesign

1. Develop alternative process scenarios

2. Develop new process design

3. Design HR architecture

4. Select IT platform

5. Develop overall blue print and gather feedback

5. Reconstruction

1. Develop/install IT solution

2. Establish process changes

6. Process monitoring

1. Performance measurement, including time, quality, cost, IT

performance

2. Link to continuous improvement

HOW TO IMPLEMENT A CPR PROJECT

The best way to map and improve the organization's procedures is to

take a top down approach, and not undertake a project in isolation.
That means:

Starting with mission statements that define the purpose of the

organization and describe what sets it apart from others in its sector or
industry.

• Producing vision statements which define where the organization

is going, to provide a clear picture of the desired future position.

• Build these into a clear business strategy thereby depriving the

project objectives.
• Defining behaviours that will enable the organization to achieve
its' aims.

• Producing key performance measures to track progress.

• Relating efficiency improvements to the culture of the

organization

• Identifying initiatives that will improve performance.

Problems that effect CPR:

The most frequent and harsh critique against CPR concerns the strict
focus on efficiency and technology and the disregard of people in the
organization that is subjected to a reengineering initiative. Very often,
the label CPR was used for major workforce reductions. Thomas
Davenport, an early CPR proponent, stated that

"When I wrote about "Core Process redesign" in 1990, I explicitly said

that using it for cost reduction alone was not a sensible goal. And
consultants Michael Hammer and James Champy, the two names most
closely associated with reengineering, have insisted all along that
layoffs shouldn't be the point. But the fact is, once out of the bottle,
the reengineering genie quickly turned ugly."

Michael Hammer similarly admitted that

"I wasn't smart enough about that. I was reflecting my engineering

background and was insufficient appreciative of the human dimension.
I've learned that's critical."

Other criticism brought forward against the CPR concept include,

1. Lack of management support for the initiative and thus poor

acceptance in the organization.

2. Exaggerated expectations regarding the potential benefits

from a CPR initiative and consequently failure to achieve the
expected results.
 3. Underestimation of the resistance to change within the
organization.

4. Implementation of generic so-called best-practice processes

that do not fit specific company needs.

5. Over trust in technology solutions.

6. Performing CPR as a one-off project with limited strategy

alignment and long-term perspective.

7. Poor project management.

CASE STUDY- M & G PENSIONS:

• Client Overview

Since M&G was established in 1931 they have provided investment

products for clients in the Bonds and Equities markets. Always at the
forefront of investment thinking they strive to provide the best
Investment opportunities for their clients.

• Requirement

Core Process reengineering for the production of product fact sheets

• Client Issue

M & G utilised both in house and outsourced reprographic collateral

production facilities. However, the outsource supplier had steadily
been increasing prices at the same time as having product quality
issues and delivery problems. Due to the supplier exceeding agreed
SLAs such as delays on deliveries and a number of quality issues M & G
staff were spending a large proportion of their time dealing with
customer complaints.

• Analysis
To implement the strategic sourcing required a restructure of roles and
the development of a strategic sourcing process.

• Approach

Investigate and shortlist suppliers who could guarantee adherence to

agreed SLAs and confirm production costs for an agreed period to
meet M & G budget restrictions. In addition, they needed to be utilising
the latest technology to ensure the production of high quality results
helping to reduce lead times and, in turn, reduce the volume of
customer complaints.

• Deliverables

As an outcome the team identified and subsequently outsourced the

reproduction of collateral to a single factory in London who could
produce client case studies where they were producing similar
products. They operated 24/7 so could handle any emergencies should
they arise even if this was outside the agreed SLAs. The equipment
they utilised was state of the art and therefore they could guarantee
the highest quality product, which met with M & G requirements.

• Improvements

• Cost reduction

• Lead time of 2 days compared to previous time of 2 weeks

• Interaction and account management from the new supplier

• Greater flexibility of service

• Full track and trace on every order or item

• Reduction in customer complaints with subsequent

improvement in customer satisfaction

• Processes
 • Implementation of their strategic outsourcing process and
organisational design

• Procurement in line with required service level agreements

• Fully detailed project implementation plan

• Business Scope:

To source an alternative supplier for M & G’s existing requirements

who could guarantee:

• Reduced turnaround times and maintain high quality products

• Reduced costs for emergency one-off print runs

• Account management to listen and understand M & G

requirements

Mahindra & Mahindra

M&M's Problem Plants

In the mid-1990s, India's largest multi utility vehicle (MUV) and tractor
manufacturer M&M was facing serious problems at its Igatpuri and
Kandivili plants in Maharashtra. The plants were suffering from
manufacturing inefficiencies, poor productivity, long production cycle,
and sub-optimal output.

The reason: highly under-productive, militantly unionized, and bloated

workforces. The company had over the years been rather lenient
towards running the plants and had frequently crumbled under the
pressure of union demands. The work culture was also reportedly very
unhealthy and corruption was widespread in various departments.

Alarmed at the plant's dismal condition, Chairman Keshub Mahindra

tried to address the problem by sacking people who allegedly indulged
in corrupt practices. M&M also tried to implement various voluntary
retirement schemes (VRS), but the unions refused to cooperate and
the company was unable to reduce the labor force.

During this period, M&M was in the process of considering the

implementation of a Core Process Reengineering (CPR) program
throughout the organization including the manufacturing units.
Because of the problems at the Igatpuri and Kandivili plants, M&M
decided to implement the program speedily at its manufacturing units.

The program, developed with the help of the UK-based Lucas

Engineering Systems, was first implemented on an experimental basis
at the engine plant in Igatpuri. Simultaneously, an exercise was
initiated to assess the potential benefits of implementing CPR and its
effect on the unions.

M&M's management was not surprised to learn that the unions

expressed extreme displeasure at the decision to implement CPR and
soon went on a strike. However, this time around, the management
made it clear that it would not succumb to union demands. Soon, the
workers were surprised to see the company's senior staff come down
to the plant and work in their place. With both the parties refusing to
work out an agreement, observers began casting doubts on the future
of the company's grand plans of reaping the benefits of CPR.

Mahindra & Mahindra Ltd. (M&M) was the flagship company of the
Mahindra group, one of the top ten industrial houses in India. The
company's history dates back to 1945, when two brothers,
J.C.Mahindra and K.C.Mahindra, decided to start a business of general-
purpose utility vehicles. The brothers formed a company, Mahindra &
Mohammed Ltd., in association with their friend Ghulam Mohammed. In
October 1947, the first batch of 75 jeeps was released for the Indian
market. In 1948, the company was renamed Mahindra & Mahindra Ltd.
Over the next few decades, the group promoted many companies in
areas as diverse as hotels, financial services, auto components,
information technology, infrastructure development and trading to
name a few.
Though M&M had established itself in the markets and was among the
leading players in many of the segments it operated in, it realized that
some of its businesses were not closely related to its core business.
This realization marked the beginning of the biggest change exercise
since the company's inception.

In 1994, a major restructuring exercise was initiated as part of a CPR

program. M&M introduced a new organizational model, in which
various divisions and companies were regrouped into six distinct
clusters of related businesses, each headed by a president. M&M's core
activities, automotive and tractors were made autonomous business
units. The other activities of the group were organized into
infrastructure, trade and financial services, telecommunication and
automotive components. According to company sources, the whole
exercise was intended to develop a conceptual map to provide
direction for the future growth of various business lines. It was decided
that, in future, the group would confine its expansion to the identified
thrust sectors.

The two main operating divisions of the company were the automotive
division, which manufactured UVs and LCVs, and the farm equipment
division, which made tractors and farm implements. The company
employed over 17,000 people and had six state-of-the-art
manufacturing facilities spread over 500,000 square meters.

The plants were situated at Kandivili (MUVs and Tractors), Nasik

(MUVs), Zaheerabad (LCVs, Voyager, three-wheelers), Igatpuri
(Engines) and Nagpur (Implements and tractors)...

M&M's Experience with CPR

By the mid 1990s, CPR had become a popular tool globally, with many
leading organizations implementing it. However, when M&M undertook
the exercise, it was still a new concept in India.

M&M's workforce, as mentioned earlier, resisted this attempt to

reengineer the organization. Soon after the senior staff began working
on the shop floors, the first signs of the benefits of CPR became
evident. Around a 100 officers produced 35 engines a day as compared
to the 1200 employees producing 70 engines in the pre-CPR days.

After five months, the workers ended the strike and began work in
exchange for a 30% wage hike. As the situation returned to normalcy,
CPR implementation gained momentum. M&M realized that it would
have to focus on two issues when implementing the CPR program:
reengineering the layout and method of working, and productivity.

The Future

Summing up the company's CPR experience, Anand Mahindra said,

"Let me put it in a simple way. If we have facilities in Kandivili today,
which are not just surviving but thriving, it is all due to CPR...

Methodology of a CPR project implementation / alternative

techniques

CPR is world-wide applicable technique of business restructuring

focusing on Core Processes, providing vast improvements in a short
period of time. The technique implements organizational change based
on the close coordination of a methodology for rapid change, employee
empowerment and training and support by information technology. In
order to implement CPR to an enterprise the followings key actions
need to take place:

• Selection of the strategic (added-value) processes for redesign. 

Simplify new processes - minimize steps - optimize
efficiency -.(modelling). Organize a team of employees for each
process and assign a role for process
• Coordinator.
• Organize the workflow - document transfer and control.
• Assign responsibilities and roles for each process.
 • Automate processes using IT(Intranets, Extranets, Workflow
Management)
• Train the process team to efficiently manage and operate the
new process
• Introduce the redesigned process into the business organizational
structure

Most reengineering methodologies share common elements, but

simple differences can have a significant impact on the success or
failure of a project. After a project area has been identified, the
methodologies for reengineering Core Processes may be used. In order
for a company, aiming to apply CPR, to select the best methodology,
sequence processes and implement the appropriate CPR plan, it has to
create effective and actionable visions. Referring to 'vision' we mean
the complete articulation of the future state (the values, the processes,
structure, technology, job roles and environment) For creating an
effective vision, five basic steps are mentioned below. - The right
combination of individuals come together to form an optimistic and
energized team - clear objectives exist and the scope for the project is
well defined and understood - the team can stand in the future and
look back, rather than stand in the present and look forward - the
vision is rooted in a set of guiding principles. All methodologies could
be divided in general 'model' stages:

The Envision stage: the company reviews the existing strategy and
Core Processes and based on that review Core Processes for
improvement are targeted and IT opportunities are identified. The
Initiation stage: project teams are assigned, performance goals, project
planning and employee notification are set.

The Diagnosis stage: documentation of processes and sub-processes

takes place in terms of process attributes (activities, resources,
communication, roles, IT and costs). The Redesign stage: new process
design is developed by devising process design alternatives and
through brainstorming and creativity techniques.
The Reconstruction stage: management technique changes occur to
ensure smooth migration to the new process responsibilities and
human resource roles. The Evaluation stage: the new process is
monitored to determine if goals are met and examine total quality
programs.

Alternative techniques to CPR

Total Quality management, often referred to as total quality

management (TQM) or continuous improvement process (CIP), refers
to programs and initiatives that emphasize incremental improvement
in work processes and outputs over an open-ended period of time. In
contrast, Reengineering refers to discrete initiatives that are intended
to achieve radically redesigned and improved work processes in a
bounded time frame. The major differences between the two

Expected Results / Benefits

The expected results for a company that implements Core Process

reengineering are the following: 

• Reallocation of jobs and processes so as to be combined into

fewer, to be executed in natural order, simultaneously and by the
least possible number of employees.
• Reorganization of the company's structure (downsizing) and
employee empowerment.
• Jobs and processes become flexible so as to be executed
according to the needs of each case, company's and customer's
need's (hybrid centralized/decentralized operations)

The above changes will bring reductions of costs in the company,

better quality (as far as price, promptness of delivery and offerings of
related services) in the products and services provided to the
customers. CPR shows that there is 'more than one way to skin a cat'
and enables a fresh view without ingrained prejudice affecting
judgement. It can produce huge initial savings where a business is
struggling and often has the affect of turning around an unprofitable
operation. Also, it leaves the business with a fully documented model
of the operation, which is invaluable if embarking on a quality
programme.

The expected outcome from a successful CPR process should the

desired one for the favor of the business concerned. The dramatic
changes that are caused involve people's jobs and working
relationships as it is very often that jobs are eliminated and the entire
process is not as beneficial for all.

Characteristics of firms and service providers

Several surveys and benchmarking findings reveal the essential role of

consultants in the CPR process. Consultants' help and guidance may be
extremely beneficial in all stages of the CPR procedure. This is due to
the fact that consultants have the following attributes:

• They are objective and immune to internal politics. They have

followed the process before.
• They bring information and best practices from other companies.
• They are good communication paths between front line workers
and customers, and
• The leaders of the company or organization.
• Consultants, besides their beneficial qualities, can also
unintentionally create barriers by: having the solution being
viewed as "theirs" and not "yours", and taking too strong a lead
role and disengaging the organization.

The consultants may play different roles in the CPR procedure, and this
is a matter for the company to decide always taking into account the
organizations needs and the specific CPR approach chosen. The role of
consultant may be:

• a strong facilitator and experienced practitioner who brings a

methodology with them.
• a team member; can be an objective and unbiased contributor to
the solution;
 • a subject-matter expert with knowledge of performance levels
and best practices of similar organizations and processes; able to
perform specific tasks for the team.

APPLICATION

Where the technique has being applied

Many public and private sector organizations and SMEs Word-wide had
undergone major reengineering efforts. The technique was applied first
to multinational cooperation’s, such as IBM, AT&T, SONY, GENERAL
ELECTRIC, WALL MART, HEWLLET PACKARD, DEC, KRAFT FOODS
having as a result major downsizing in their organizational structures.

Later, the banking sector began to reengineer with a great degree of

success such as CITIBANK, NORTHWESTERN BANK, BANK OF AMERICA
and others. Major utility companies used reengineering as a technique
to improve service like OTE, ELTA. CPR is also being used to change
the organizational structure of public services. First the government
cabinet of Egypt reengineered its processes along with many
Municipals in Europe. The public health sector is undergoing a major
re-engineering in Europe using the CORBA methodology.

As the technique was becoming well known to the business sector

smaller enterprises were using the technique for organizational
upgrade. Today most SMEs are investigating the re-engineering
technique and a lot of them are applying re-engineering, since the
technique is applicable and affordable to almost all SMEs. This is
proved by the increasing demand for CPR consultants in Greece and
worldwide.

Most of the times re-engineering is applied as a "must" when

innovative IT tools are introduced to SMEs. Tools such as SAP, BAAN
and various ERP systems that promote the horizontal organizational
structure are the vehicles for re-engineering the organizational
structure in order to adapt to the horizontal operational subsystems of
the tools. For the first time we can say " that IT does not only support
management, IT changes the organizational structure". Today 120
businesses from small to medium size in Greece and thousands in
Europe have installed such types of IT systems reengineering also their
organizational structure.

Types of firms / organizations that CPR can be applied

BRP could by implemented to all firms (manufacturing firms, retailers,

services, etc.) and public organizations that satisfy the following
criteria:

Minimum Number of employees: 20 (at least 4 in management

positions). Strong management commitment to new ways of working
and innovation.

Well formed IT infrastructure (requirements are presented in

paragraph 2.4).

Core Process Reengineering could be applied to companies that

confront problems such as the following:

• High operational costs

• Low quality offered to customers
• High level of ''bottleneck" processes at pick seasons
• Poor performance of middle level managers
• Inappropriate distribution of resources and jobs in order to
achieve maximum Performance, etc.

Critical Success Factors

Critical success factors when implementing e-Government programs

with comprehensive CPR components include:

1) Well informed investment decisions

2) Effective engagement with stakeholders

3) Knowledge of the supplier marketplace

4) Knowledge of the delivery chain

 5) Effective risk management

6) Knowledge about operations

7) Active management of intended outcomes and benefits

8) LEADERSHIP!

CPR - Methodology
1) Envision new processes

2) Initiate change

3) Process diagnosis

4) Process redesign

5) Reconstruction

6) Process monitoring.

Reengineering Recommendations
• CPR must be accompanied by strategic planning, which must address
leveraging IT as a competitive tool.
• Place the customer at the center of the reengineering effort --
concentrate on reengineering fragmented processes that lead to
delays or other negative impacts on customer service.
• CPR must be "owned" throughout the organization, not driven by a
group of
outside consultants.
• Case teams must be comprised of both managers as well as those
will actually do the work.
• The IT group should be an integral part of the reengineering team
from the start.
• CPR must be sponsored by top executives, who are not about to
leave or retire.
• CPR projects must have a timetable, ideally between three to six
months, so that the organization is not in a state of "limbo".
CONCLUSION:
An intense customer focus, superior process design and a strong and
motivated leadership are vital ingredients to the recipe for the success
of any business corporation. Reengineering is the key that every
organization should possess to attain these prerequisites to success.
CPR doesn’t offer a miracle cure on a platter. Nor does it provide a
painless quick fix. Rather it advocates strenuous hard work and
instigates the people involved to not only to change what they do but
targets at altering their basic way of thinking itself. In this paper we
have attempted in evolving a structured approach to reengineering.

No doubt, many may conclude that fancy charts are of no more value
than a review of multi-point recorders each day, or checking results by
a review of single points representing a graph of a particular process
variable. We must emphasize that such charts are of little use in
distinguishing between random and non-random variation. It is only
non-random variation over which the operator has control.

To be successful, Core Process reengineering projects need to be top

down, taking in the complete organization, and the full end to end
processes. It needs to be supported by tools that make processes easy
to track and analyze. If you would like help with your CPR project the
most direct benefit that companies derive from reengineering is
significant in the process improvement (50 to 100%). Costs are
lowered while speed, quality and service are dramatically improved.
Unfortunately, reengineering seldom makes a significant impact on the
organization’s bottom line (only 20% of the time.) Reengineering has a
greater chance of success if it is viewed as leading to growth and value
creation. In addition, there are costs to reengineering that must be
considered before deciding for such a right strategy for an
organization.

To economically compete in the future, processing plants will need to

take the next step in optimizing product quality and minimizing
operating costs. This step cannot be taken without a commitment to
total quality management incorporating statistical process control.