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REPORT

ON
TOTAL QUALITY MANAGEMENT (TQM)
AND BUSINESS PROCESS
RE-ENGINEERING (BPR)


S# Contents Page #
1. Importance of Quality Management in Public
Service
2
2. Total Quality Management (TQM) (definition and
historical perspective)
3
3. Main features of TQM
4. The TQM process
5. The 4Ps and 3Cs Concept






IMPORTANCE OF QUALITY MANAGEMENT IN PUBLIC SERVICE

The delivery of improved services for citizens is a core mandate of
Government. Through payment of taxes and participation in the election of the
citizens expect that the Government will ensure that they are able to access quality
services on time. Given the fact that Government service delivery is monopolized
and the customers have no alternative, the importance of providing quality service
increases manifold.
In Pakistan, the delivery of public services has not been entirely successful or
effective. This is manifested by the poor road network, incessant water unavailability,
inadequate health facilities and personnel as well as falling education standards. As
it is common in many developing countries, Pakistan still suffers several social,
economic and political challenges. Economically, the living standard at the
grassroots has not improved, while at the macro-economic level the country suffers
budget deficit to finance most of its development programs.
There is duplication of efforts and projects among various stake holders.
There are certain instances that under public health and works department repeated
development works were executed within the same area.
An important aspect of quality service delivery is the existence of easily
accessible and transparent complaints handling mechanisms to which customers
can have access in case they are dissatisfied with the services received. Due to the
above, citizens at the grass roots level feel that the current customers complaints
handling system are neither transparent nor accessible.
The core aim needs to be based on the commitment by the service providers
to achieving citizen-cantered service delivery and a qualitative improvement in the
peoples satisfaction with the delivery of its services over the next considerable
period for this initiative to be successful, all the departments and agencies will need
to work together. The adoption of a culture of continuous improvement takes time but
is necessary if we are to successfully enhance citizens satisfaction with best service
delivery.
Modern tools of management provide with two broad management tools to
improve the efficiency and output of an organization. There are Total Quality
Management (TQM) and Business Process Reengineering (BPR). The following
work will discuss these two management tools and their mutual analysis. This will
also be followed with three case studies whereby some existing identified defective
public sectors have been examined and a model process for their improvement has
been designed to increase their working efficiency and add to their output.
TOTAL QUALITY MANAGEMENT (TQM)
DEFINITION & HISTORICAL PERSPECTIVE

Total quality management or TQM is an integrative philosophy of
management involving a continuous process for improving the quality of products
and related processes. It is generally defined as follows:
TQM is the process of integration of all activities, functions and
processes within an organization in order to achieve continuous
improvement in cost, quality function and delivery of goods and
services for customer satisfaction. (KulneetSuri)
Total quality management (TQM) is a management approach to long
term success through customer satisfaction. In a TQM effort, all
members of an organization participate in improving processes,
products, services, and the culture in which they work. (Dr. David L.
Goetsch)
HISTORICAL BACKGROUND:

TQM has evolved as one of the various 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.
In the post world war era, 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 1950s quality
control was an integral part of Japanese manufacturing and was adopted by all
levels of workers within an organization.
By the 1970s the notion of total quality was being discussed. This was seen
as company-wide quality control that involves all employees from top management
to the workers, in quality control. In the next decade more non-Japanese companies
were introducing quality management procedures that based on the results seen in
Japan. The new wave of quality control became known as Total Quality
Management, which was used to describe the many quality-focused strategies and
techniques that became the centre of focus for the quality movement.
MAIN FEATURES OF TQM

Total Quality Management (TQM) is a comprehensive and structured
approach to organizational management that:
i. Seeks to improve the quality of products and services;
ii. Through ongoing refinements
iii. In response to continuous feedback.
In brief, it is a cyclical process involving the PDCA cycle (Plan, Do, Check &
Act) is followed for this purpose which is as below:

THE TQM PROCESS
In the planning phase, people define the problem to be addressed, collect
relevant data, and ascertain the problem's root cause; in the doing phase, people
develop and implement a solution, and decide upon a measurement to gauge its
effectiveness; in the checking phase, people confirm the results through before-and-
after data comparison; in the acting phase, people document their results, inform
others about process changes, and make recommendations for the problem to be
addressed in the next PDCA cycle.
It is therefore, not a programme, it is in fact a systematic, integrated and
organizational way of life directed at continuous improvement of an organization. It is
a management style and should merely be the means to achieve organizational
goals.
THE 4PS AND 3CS CONCEPT:

The new TQM model, based on all excellent work done during the last
century, provides a simple framework for excellent performance, covering all angles
and aspects of an organization and its operation.
Plan
Do Check
Act


Performance is achieved using a business excellence approach, and by
planning the involvement of people in the improvement of processes. This has to
include:
a. Planning the development and deployment of policies and strategies
setting up appropriate partnerships and resources; and designing in
quality.
b. Performance establishing a performance measuring framework a
balanced score card for the organization carrying out self-assessment,
audits, reviews and bench-marking.
c. Processes understanding, management, design and re-design; quality
management systems, continuous improvement.
d. People managing the human resources, culture change, team work,
communications, innovations and learning.
These are the key to delivering quality, products and services to customers
and generally improving overall performance. This process will result in improving
the essential 3Cs (i.e. Culture, Communication and Commitment) which provide the
glue or outcome of the model which will take organizations successfully into the
twenty-first century.
The New Framework of TQM
Communication
Culture
Performance

Performance
People
Planning
Process
Commitment

Performance
TQM VS. 6 SIGMA:
The Six Sigma management strategy was originated in 1986 from Motorolas
drive towards reducing defects by minimizing variation in processes. The main
difference between TQM and Six Sigma (a newer concept) is the approach. At its
core, Total Quality Management (TQM) is a management approach to long-term
success through customer satisfaction. Whereas, Six Sigma seeks to improve the
quality of process outputs by identifying and removing the causes of defects (errors)
and minimizing variability in manufacturing and business processes. It uses a set of
quality management methods, including statistical methods, and creates a special
infrastructure of people within the organization ("Champions", "Black Belts", "Green
Belts", "Orange Belts", etc.) who are experts in these very complex methods. Each
Six Sigma project carried out within an organization follows a defined sequence of
steps and has quantified financial targets (cost reduction and/or profit increase).
STRENGTHS OF TQM

Following are the main strengths of TQM:
i. TQM organizations are more customer-oriented than non-TQM
companies.
ii. TQM is easily adaptable to both manufacturing or service providing
organizations
iii. TQM is management driven and stresses more on employee
participation
iv. TQM organizations are typically flatter and Leaner than non-TQM
companies
v. TQM projects tend to focus on optimizing processes, rather than the
whole system
vi. TQM does not focus on bottom-line results to the extent other systems,
like Six Sigma, do. Companies increasingly need to tie any investment
to bottom-line improvement
vii. Managers can be resistant to give up power. In a TQM organization,
delegation is necessary for the system to succeed
viii. TQM has worked are more training oriented
ix. It has the capacity to work along and organizations learning curve.
WEAKNESSES OF TQM

There are also some weaknesses attached to TQM. These can be as follows:
i. Long-term process
ii. Production / service disruption
iii. Its complexity exposes the organization to potential decision
bottlenecks and overall bureaucracy
iv. TQM can be at the cost of jobs and employment as technology plays
an important role in TQM
v. Focusing too much on the end result and customer satisfaction may
sometimes cause a project to run into excess costs without any
possible sign of returns.
BUSINESS PROCESS REENGINEERING
DEFINITION AND HISTORICAL BACKGROUND [BPR]

The idea of business processes re-engineering was introduced in an article
in Harvard Business Review in JulyAugust 1990 by Michael Hammer, then a
professor of computer science at MIT. Based on an examination of the way
information technology was affecting business processes. Michael Porter defined
process as follows:
"Series or network of value-added activities, performed by their relevant roles
or collaborators, to purposefully achieve the common business goal"
Sometimes it is a synonym for activities. Sometimes it refers to activities or
sets of activities that cut across organizational units. In any case, however,
the essential notion is the sameboth strategic and operational issues are
best understood at the activity level.
BPR was described by its inventors as a fundamental rethinking and radical
redesign of business processes to achieve dramatic improvements in critical
measures of performance such as cost, quality, service and speed.
[Hammar & Champy]
"Encompasses the envisioning of new work strategies, the actual process
design activity, and the implementation of the change in all its complex
technological, human, and organizational dimensions BPR is more an idea or
philosophy than a method or state. The main objective is to rethink the
processes to find a better design, and hence, multiple methodologies and
infinite results can be found.
[Thomas Davenport]
The technique involves analysing a company's central processes and
reassembling them in a more efficient fashion and in a way that eradicates long-
established, but frequently irrelevant processes. BPR's originators, Hammer and
James Champy, maintained that re-engineering had a wider significance than mere
processes. It applied to all parts of an organization, and it had a lofty purpose.
Hammer wrote In a world where so many people are so deprived, it's a sin to be so
inefficient.
Winslow Taylor Others saw it as a shallow intellectual justification for
downsizing a process of slimming down that was being forced on many corporations
by developments in it. BPR followed a favoured route for popular management
ideas: from a university academic's research, via a management consultancy's
marketing (Champy was the boss of CSC, a management consulting firm) and a
best-selling book, into (briefly) a perceived panacea for all companies' ills. It was
helped by the fact that the book's authors (Hammer in particular) were eminently
quotable.

BPR was implemented with considerable success by some high-profile
organizations. For instance, Hallmark, a card company, completely re-engineered its
new-product process; and Kodak's re-engineering of its black-and-white film
manufacturing process cut the firm's response time to new orders in half.

MAIN FEATURES

Generally Business Processes Reengineering is based on the following key
principles
Organize the process around outcomes
Eliminate non value adding steps
Link parallel activities instead of integrating results at the end
Involve key people early
Put the decision point where the work is performed
Have those who own the output, perform the process
Capture information at the source
Avoid redundant data compilation at different points








Main steps of the Business Processes Reengineering are:


STRENGTHS OF BPR
Focus on processes instead of task
Supervision to Couching and handholding
Achieving radical changes in performance
changes are dictated by top management

This is strength of the BRP that it can only be undertaken by an organization if
the top management is committed. One of the faults of the idea, which the creators
themselves acknowledged, was that re-engineering became something that
managers were only too happy to impose on others but not on themselves. Champy'
wrote in his other book called Reengineering Management. If their jobs and styles
are left largely intact, managers will eventually undermine the very structure of their
rebuilt enterprises,
Clear responsibilities are fixed and evaluation becomes more relevant
Revolutionary [Attackers advantage]
The term has been adopted from the game theory. It implies that the
reengineering will create excited environment in the organization along with
other characteristics of young organizations.
Top management
commitment
Creating a team
Evaluating the
environment
Assessing the
organization
Defining the
changes needed
[critical ones]
Determining the
technical/human
resources needed
Testing, when
appropriate
Implementation
Evaluating the
results
WEAKNESSES OF BPR
Large step changes are always riskier, more complex and more expensive
than continuous improvement. The same is the case with BPR. It is a
revolutionary change.
Re-engineering places more emphasis on equipment and technology rather
than people
Re-engineering tends to concentrate on one process at a time using a project
planning methodology
Middle management reluctance is a major barrier to successful
implementation of BPR. This is mainly due to the fact that re-engineered
processes tend to eliminate the need for intermediate layers of management
and thereby simplify the management structure.
Enhanced Risk
High capital requirement
COMPARISON BETWEEN BPR & TQM
Both these techniques are used in change management and their purpose is
to achieve maximization of customer satisfaction and minimization of cost. Major
similarities and differences can be analysed as under:
TQM BPR
Values Customer satisfaction Customer satisfaction
Groom the people and
organization
Eradicate all processes that do not
add value
Gradual change Achieving radical changes
Avoid redundant data
compilation at different
points
Avoid redundant data compilation
at different points

Have those who own the
output, perform the
process
Have those who own the output,
perform the process

Support Can be driven by all
levels
Support from top management
Not supported by middle and
operational level
Resources Can be done within given
resources
Huge financial resources required
Human
Resource
Redundancy
Minimum Maximum
Scope On-going cyclical change One time abrupt change


SELECTED ISSUE 1:
ANALYSIS OF THE SITUATION:
Reimbursement of claims of expenditure incurred on the medical charges of a Public
Servant and his dependents is presently too lengthy a process that it really discourages the
public servant to follow the process. Therefore, propensity on the part of Public Servants
increases to adopt shortcut and that as a matter of fact creates opportunity for corruption
apart from promoting culture of informality. Therefore, there is great need that the present
process may be re-engineered with a view to simplify it and to reduce the steps involved in it
and to reduce the timelines required for completion of medical reimbursement cases
The Identified Issue:
Reimbursement of Medical Charges
The Existing Process:
o Issuance of Docket by the concerned department.

o Prescription of medicine by authorized medical attendant.

o Non availability of quality medicine in hospital dispensary and marking of NA
by the Dispenser.

o Purchase of medicines from Pharmacy and obtaining Cash Memo bearing
license number.

o Completion of Non Availability Certificate by attaching prescriptions and cash
memos.

o Authentication of Non Availability Certificate, prescriptions and cash memos
by concerned Registrar of the hospital.

o Submission of medical claim in the office of Medical Superintendent
concerned.

o Verification by hospital Pharmacist.

o Deletion of non-reimbursable items.

o Countersignature of Non Availability Certificate by the Medical
Superintendent.

o Affixing Machine number and embossing seal on the Non Availability
Certificate.

o Submission of medical claim in the concerned department for
reimbursement.

o Obtaining sanction of the medical claim from the competent authority i.e.
Administrative Secretary / Head of the Attached Department / District
Government.

o Submission of bill in the Office of AG, Punjab/ District Accounts Officer
concerned.

o Issuance of cheque by the Office of AG, Punjab/ District Accounts Officer.





Individual
Official

Concerned
Department

Concerned
Hospital

Hospital
Pharmacy

Private
Pharmacy

Registrar of
Hospital

MS Office
AG Office
Days
Consumed 2 days 1 days 1day
7
days
3
days
5
days
7
days
30
days
10
days
20
day

81 days
Docket
Prescript
ion
Verificat
ions
NA
Remarks
Pvt
Purchase
Case
Making
Authentic
ation
Fwd
Letter
CS CS
Sanction
Cheque
The Existing Process of Reimbursement of Medical Charges
Problem with the Process:
1. Lengthy and cumbersome
2. Complicated procedure.
3. With a lot of discretionary options to various offices
4. With more opportunities of corruption and mal-practices
The Developed New Improved Process:
1. Introducing Patient Card by all the hospitals and minimizing the list of
non-reimbursable items.
2. Prescription of medicine / issuance of NAC by authorized medical
attendant/Registrar.
3. Purchase of medicines from Pharmacy and obtaining Cash Memo
bearing license number.
4. Submission of medical claim in the concerned department for
reimbursement.
5. Obtaining sanction of the medical claim from the competent authority.
6. Submission of bill in the Office of AG, Punjab/ District Accounts Officer
concerned.
7. Issuance of cheque by the Office of AG, Punjab/ District Accounts
Officer.
8. Regular fortnightly meeting with AG office officials to review to
pending cases
Individual
Official(with
Hospital
card)

Concerned
Department

Concerned
Hospital

Hospital
Pharmacy

Private
Pharmacy

Registrar of
Hospital

MS Office
AG Office
Days
Consumed

1 days
5
days 10 day X X X X X X

16 days
Prescription NAC
Pvt
Purchase
Sanction
Cheque
Review
Meeting
The Proposed Model for the Process of Reimbursement of Medical Charges

Added New Features and How They will Improve the Process:
1. Data base of all employees of the Public Sector already available with
PITB/ Govt of the Punjab may be linked with systems of the Hospitals.
2. Machines for reading cards of employees may be installed in all Public
Secondary and tertiary healthcare facilities
3. Introducing machine readable Patient Card by all the hospitals to
avoid issuance of dockets on case to case basis.
4. Reducing the items/heads included in the non-reimbursable list
5. Time span shall be immensely reduced.
6. Discretionary and corrupt practices can be checked.
7. A regular automated record of all the medical history of the official
shall be automatically generated.
Options to Further Improve the Process:
1. Delegation of Financial Powers to BS18 officer for sanction of medical
claims for quick disposal of cases.
SELECTED ISSUE 2:
CORRECTION OF NAME IN REVENUE RECORD

All Revenue Record has been computerized and service centers have been
established in almost all the district and tehsil headquarters of Punjab. Where such
computerization is in progress, it shall be completed by 30
th
June 2014.

The Identified Issue:
The present process is quite lengthy and cumbersome and take an average,
6-8 months time for correction of a name in the record of rights.
The Existing Process:
1. A client approaches Service Centre of LRMIS and is informed that he
cannot be issued a copy of Record of rights or he can not enter into
any transaction because his name as appearing in the revenue record
is different from the one on his CNIC.
2. He then approaches an application writer and gets his contention
recorded in application addressed to ADC of the District.
3. He appears in the office of ADC and gets his application marked.
4. He appears in the office of Assistant Commissioner for the purposes
of down marking.
5. He then appears in the offices of Tehsildar, NaibTehsildars, Qanungo,
Patwari and finally reaches Lambardar of mauza
6. He obtains verification from Lambardar concerned and gets an
affidavit in support of the verification recorded on his application.
7. Similar verification is also carried out by two notables of his locality.
8. Having gone through this, he again appears before Patwari Halqa,
who records his report on his application based on the verification of
the Lambardar.
9. He subsequently attends the offices of Kanungo, Naib Tehsildar,
Tehsildar and Assistant Commissioners for their endorsements.
10. Finally he submits the application along with all necessary reports and
Affidavits in the office of ADC who lists it for hearing.
11. For the purposes of hearing, all the persons having verified the
credentials of the applicant are called over at the expense of the
applicant.
12. The case is decided in the light of documents provided by the
applicant and statements of aforementioned recorded before the ADC.
The process itself including the adjournments made by the Presiding
Officer consumes on an average, 6-8 months time

Service
Center

Deed Writer
ADC


AC
Tehsildar
Naib
Tehsildar

Kanungo



Patwari





Lambardar

Two
Noteables


136 days
Correction
required
Deed
writing

Hearing
Marking
Report
Report
Report
Report
Decision
Marking
Marking
Marking
Marking
Verificati
on
Verificati
on
Report
The Existing Process of Correction of Name in the Revenue Record
Problem with the Process:
1. Too lengthy and cumbersome process
2. May take as long as a year or so
3. Involves unnecessary tiers of Patwari, Kanungo, Naib Tehsildar,
Tehsildar etc who owing to culture of informality do not provide
valuable input
4. Poor people have to grease palms of Patwaris and other officials for
expediting their case
5. Brining Lambardar and other notables to the court of ADC is an extra
expenditure on the resources of the farmer

The Developed New Improved Process:
1. To begin with, it must be shared that all service centres of land
records have access to NADRA record for the purposes of verification
of genuineness of the person based on his thumb impression
procured at the centre through a bio-metric device. This access to
NADRA database needs to be enhanced to look at the family tree of
the applicant. The applicant is advised to bring the documents
required as additional evidence like academic certificates, CNIC,
Nikhah Nama etc. The Service Center In-Charge(SCI) shall, after
having gone through the family tree and other required documents,
shall generate a report for ADC
2. The SCI shall send his report containing clear recommendations for
correction of name to the office of ADC within one day.
3. ADC based on report of SCI shall sanction the required correction in
the name in a period of two days and shall send it back to SCI for
making necessary correction in the revenue record.


Service Centre



ADC



Days consumed 1 day 2 days


Total 3 days consumed


Added New Features and How they will Improve the Process:
1. The proposed model would reduce the time involved in the correction
drastically
2. The public shall be facilitated
3. Extortion at the hands of Patwari, Kanungo and other Revenue
Officials shall be eliminated


SCO finds correction
in name is required.
Accesses data base
of family tree of
NADRA. Generates
report
Accords sanction to correction of name
and sends copy of his order.
BIBLIOGRAPHY

1. Dr. David L. Goetsch; Quality Management for Organizational
Excellence: Introduction to Total Quality, 7
th
Edition; Pearson; 2012.
2. John S. Oakland; TQM, text with Cases; Elsevier BH, UK; 2003
3. James Champy; Reengineering Management, the Mandate for New
Leadership; Harper Business; 1996
4. Prem Kumar; Government & Business Management; Anmol
Publications; 1991
5. KulneetSuri; Total Quality Management; S.K.Kataria& Sons; 2006.
6. Malcom Warner; Business & Management; International Thomson
Business Press; 1997.
7. Derek Torrington; The Business of Management; Prentice Hall
International; 1985
8. Patrick A. Hough; Total Quality Management; Indiana Publishing House;
2006
9. PLGO 2001 (the Original Text)
10. West Pakistan Government Servants (Medical Attendance) Rules 1959
(the Original Text)
11. Punjab Environmental Protection Act 1997 (Amended 2012) (the Original
Text)