T310 BA606

BA 606 Operation Management T310
MS. Annie
Name: Antineo Yong Gee 15-Nov-10 Student ID: 020188100011

3 Scope Of The Report 2 Company Background 3 Total Quality Management (TQM) 4 TQM Principal 5 The Ten Elements of TQM 6 Business Process Re-engineering 7 Summary 9 List of references Page 3 3 3 3 4 5 10 14 16 18 19 Antineo Yong Gee Page 2 .2 Limitations 1.BA 606 Operation Management T310 TABLE OF CONTENTS 1 INTRODUCTION 1.1 Authorization 1.

Finally. Next. discuss about Business Process Re-engineering (BPR). where discuss about the elements and steps that need to follow to make some changes in the company. Printed materials were difficult to locate and there were sufficient human resources working on analysis.BA 606 Operation Management T310 1. this report will provide the summary or comment regard to TQM and BPR Antineo Yong Gee Page 3 . Introduction 1. A longer time frame would have allowed for a more comprehensive report. 1.3 Scope of The Report The information presented will firstly provide a brief background of the company.2 Limitations The production of this report proved challenging due to time constraints and limited resources. John executive vice president of ABC Equipment Malaysia Sdn Bhd.1 Authorization The following report was commissioned for Mr. its business environment and industry. it will discuss the point that need to focus on and elements that need to review. Its purpose is to thoroughly analyze and address the key issues that need to improve in ABC Company Sdn Bhd. it will discuss regarding the Total Quality Management (TQM). 1. Next.

retail. You can create an efficient and integrated environment for food preparation.BA 606 Operation Management T310 2. ABC took over the complete operation of XYZ Commercial Refrigeration and Food Service Equipment with effect from 1st Oct 1999 and become the sole distributor of the XYZ brands in these business areas. On May 1st 2000. Antineo Yong Gee Page 4 . three other members of the management team and two external partners with manufacturing background. Refrigerated showcase and glass doors from Europe and Japan meet all merchandising requirement of supermarket and convenience store customers. distribution and ware washing. Background ABC Equipment Malaysia Sdn Bhd is a company formed by the former management team of XYZ Commercial Refrigeration and Food Service Equipment in Malaysia. environment friendly store operation. Lee. energy saving. ABC Equipment¶s customers belong to the hospitality. we offer a product to suit your specific needs. storage and refrigeration. For every task in the kitchen. cooking. European-built multi-compressor rack with latest refrigeration technology and controls ensure safe. key members of the former XYZ-Euroclean cleaning Equipment Division joined ABC and established a new Cleaning Equipment Division representing Karcher of Germany. Majority shareholders of ABC Equipment Malaysia Sdn Bhd are The Managing Director Mr. the world¶s largest and most innovative cleaning equipment manufacturer. manufacturing. institutional and janitorial sectors.

Value for Money Products & Services to meet the diverse needs of our customers in Hospitality. Total Quality Management is often associated with the development. Institution and other targeted market segments . and continuously improve the business processes. Satisfy the customer The first and major TQM principle is to satisfy the customer--the person who pays for the product or service. Manufacturing. The basic principles for the Total Quality Management (TQM) philosophy of doing business are to satisfy the customer. Edwards Deming.BA 606 Operation Management T310 We provide Quality. 3. The basis of TQM is to reduce the errors produced during the manufacturing or service process. TQM Total Quality Management (or TQM) is a management concept coined by W. deployment. streamline supply chain management. satisfy the supplier. Retail.aiming for long term mutually beneficial business relationship. and maintenance of organizational systems that are required for various business processes. Customers want to get their money's worth from a product or service they purchase. One of the principal aims of TQM is to limit errors to 1 per 1 million units produced. increase customer satisfaction. aim for modernization of equipment and ensure workers have the highest level of training. Antineo Yong Gee Page 5 .

If the person has any influence on the wages the worker receives. Internal customers Within a company. Some top companies not only provide quality products. each improving a product and passing it along until it is finally sold to the external customer. and reduced complaints and service expenses. Each worker must not only seek to satisfy the immediate internal customer.BA 606 Operation Management T310 Users If the user of the product is different than the purchaser. a worker provides a product or service to his or her supervisors. Chain of customers Often in a company. that person can be thought of as an internal customer. but they also give extra service to make their customers feel important and valued. referral business. Antineo Yong Gee Page 6 . Company philosophy A company that seeks to satisfy the customer by providing them value for what they buy and the quality they expect will get more repeat business. but he or she must look up the chain to try to satisfy the ultimate customer. there is a chain of customers. A worker should have the mind-set of satisfying internal customers in order to keep his or her job and to get a raise or promotion. then both the user and customer must be satisfied. although the person who pays gets priority.

the tools they need to do their job and good working conditions. It is only in the company's best interest that its suppliers provide it with quality goods or services. as well as to keep the good workers. This means to allow them to make decisions on things that they can control. An effective supervisor with a good team of workers will certainly satisfy his or her internal customers. This not only takes Antineo Yong Gee Page 7 . which is the person or organization from whom you are purchasing goods or services. External suppliers A company must look to satisfy their external suppliers by providing them with clear instructions and requirements and then paying them fairly and on time. Empower workers One area of satisfying the internal suppler is by empowering the workers. Internal suppliers A supervisor must try to keep his or her workers happy and productive by providing good task instructions. if the company hopes to provide quality goods or services to its external customers. Get better work The reason to do this is to get more productivity out of the workers. The supervisor must also reward the workers with praise and good pay.BA 606 Operation Management T310 Satisfy the supplier A second TQM principle is to satisfy the supplier.

because there always can be improvements. They can provide suggestions on how to improve a process and eliminate waste or unnecessary work. so it is very necessary to strive to keep ahead of the game. Examining the source of problems and delays and then improving them is what is needed. Quality methods There are also many quality methods. such as just-in-time production. You can never be satisfied with the method used. These must be removed. trying to increase worker output on a defective machine may result in more defective parts. Continuous improvement The third principle of TQM is continuous improvement. Worker suggestions Workers are often a source of continuous improvements. not harder Some companies have tried to improve by making employees work harder. the competition is improving. and poka-yoke that can improve processes and reduce waste. Working smarter. Certainly. Often the process has bottlenecks that are the real cause of the problem. but it also motivates these internal suppliers to do better work. especially if the process itself is flawed. Antineo Yong Gee Page 8 . For example. variability reduction.BA 606 Operation Management T310 the burden off the supervisor. This may be counter-productive.

Company Philosophy. Summary The principles of Total Quality Management are to seek to satisfy the external customer with quality goods and services. In Quality method. Chain customer where ABC provide a promising quality and good that are sold is meet their satisfaction. where ABC provides a good quality product that promising our customer satisfaction and expectation. Antineo Yong Gee Page 9 . Chain Customer and Company philosophy.BA 606 Operation Management T310 In this case. ABC Company focus only 3 main principal that is. and to continuously improve processes by working smarter and using special quality methods. Quality methods. ABC Company should run a test through the product to identify whether there is a problem or lacking in that product need to fix to prevent any waste in future. To do so before sell it to our ultimate customer. to satisfy your external and internal suppliers. as well as your company internal customers. Beside promise a good quality product ABC company also may provide an after sale service where the company can make a bond with their customer as family of the company and customer feel that they are part of the company. past complaint or report need to refer which is provide the new product is meet our customer satisfaction expectation.

Develop a pattern of delivering perfect products & services on time. 4. All the Time.tripod. and Honesty are the Basis of forming Business Relations. Productivity and Deliverability. Safety. 4. Auciello. Forthrightness.4 TRAIN INDIVIDUALS AND TEAMS TO SOLVE PROBLEMS: Teach Problem -Solving Tools / Techniques & Teaming as the means to solve quality. TQM Principal Basically there is 14 principal in TQM as suggested by J.5 EMPOWER EMPLOYEES TO BE RESPONSIBLE: For Quality. Enhance your work by your actions. 4." (http://auciello. Reliability. Always striving for Improvement & always satisfying the Customer. Antineo Yong Gee Page 10 . Empowering means giving workers responsibility for their actions affecting their work.3 BASE BUSINESS RELATIONSHIPS ON MUTUAL TRUST and confidence Providers and Suppliers build trust and confidence through quality and deliverability.html) 4.com/14tqm. Rate your sources by their ability to do this. Right the First Time.1 ADD VALUE TO THE PROCESS: Every action by every employee should add value to the process or product in every way all the time. safety.BA 606 Operation Management T310 4. 4. productivity. Customers build it by quick payment and clear lines of communication. Share governance.2 DELIVER QUALITY ON TIME ALL THE TIME. and deliverability problems. "Doing the Right Thing.

INTERNET. databases. DeSimone).to least-important) of the problems. applications software. 4.6 DEED 'OWNERSHIP' OF PROCESS TO EMPLOYEES: Who have proven their capability. Use Statistical Process Control (SPC) to eliminate errors and defects and continually improve the system. Record the causes and frequencies of problems on a Tally Sheet. you can't evaluate it. telecommunications.8 COLLECT.BA 606 Operation Management T310 4. Reward and reinforce empowerment with Incentives.7 IMPLEMENT THE NEW TECHNOLOGY: Use modern information resources. Make Decisions based on evidence. "It never hurts to turn the light on. Job Security and Equity Sharing. "If you can't measure it. Importance of resolving vital problems first. and project scheduling as tools to improve productivity. Antineo Yong Gee Page 11 . MEASURE AND EVALUATE DATA: Before Making Decisions. Develop this into a Pareto Chart which plots the frequencies (most." (J." 4. 20% of the causes create at least 80% of the problems. 4.9 APPLY THE '80/20' PRINCIPLE: Use this Problem-Solving Tool to put problems into 'Trivial Many' and 'Vital Few' Categories. not attendants. Make employees owners of the process.

If necessary. 4.10 DEVELOP 'WIN-WIN' SCENARIOS: Create solutions that will benefit all parties. Apply 'If-Then-Else' type of logic to problems. 4.13 MAKE ZERO DEFECTS AND ACCIDENTS YOUR GOAL: Use the tools of TQM. Cooperation that develops synergism is the best solution. and Problem-Solving to achieve these goals by detecting and eliminating the causes.BA 606 Operation Management T310 4.11 DEVELOP A MASTER PLAN: Good Design Precedes Good Craftsmanship. A well-designed plan tracks and benchmarks an action through to its completion." (MartyMadigan) 4. flowchart plans dealing with all possible alternatives. Antineo Yong Gee Page 12 . SPC.12 PLAN FOR ALL CONTINGENCIES: Prepare for all solutions by developing alternatives.14 QUALIFY YOUR SOURCES AND SUPPLIERS: Use Quality and Deliverability as the basis for selecting the source of your materials and services. "Quality begins at the Design Level. 4.

In world-class Just-in-Time (JIT) delivery systems. plan for all contingencies.BA 606 Operation Management T310 4.17 IMPROVE CONTINUOUSLY AND ALWAYS: Institute continuous improvement & life-long education. They constitute an ever expanding continuum. team members. They are the rationale for your work. 4. management. source parts are used without delay and inspection in the process. 4. The five is meet the needs of our customers. Optimize your curve. Add to this list. principles based on the 14 Points by W. Antineo Yong Gee Page 13 . & especially the end-users. develop win-win scenario and lastly deliver quality on time all the times. improve continuously and always. The justification for your work is to deliver products or services that meet or exceed their requirements. Edwards Deming.16 MEET THE NEEDS OF YOUR CUSTOMERS: Customers are anyone affected by your work: co-workers. ABC company focus this main five point to improve the company performance and avoid unnecessary difficulty.15 DELIVERABILITY: The Right Product at the Right Place at the Right Time.

5. One eliminates the need for inspection by building quality into the product in the first place.BA 606 Operation Management T310 5.4UniversalResponsibility A TQM leader has to learn that inspection is not a means to achieve quality. 5. but there is no end. The Ten Element of TQM 5.1 Customer Focus It is important to focus on the customer..the students. In TQM parlance. not someone else who will check it after it is done. 5. the employees and the users of the end product . Antineo Yong Gee Page 14 . valuation. revaluation. both internal and external i. Checking.e. engineering and re-engineering are essential to ensure continuous improvement.3 Continuous Improvement There is a beginning to the process of TQM. This concept helps to strengthen the co-operation within the organization. the customer is the next process and not just a person who pays for the product or service. rechecking.2 Employee involvement People at all levels make up an organization and their full involvement enables their abilities to be used for an institution's benefit. TQM helps us to recognize the fact that it is we ourselves who are responsible for quality work. eliminate internal competition and drives away fear.

and in order to improve. and then adapting the best practices of these organisations to one's functioning. 5.and we need to have some idea of where we are going (or what quality levels we aspire to reach). we need to know where we are (or stated differently. This TQM philosophy consists of defining the competitors' best features from both internal and customer perspectives. and the organisation's senior management has to be unwavering in its commitment to quality.5 A Sustained Management Commitment to Quality An organisation's performance and culture will ultimately reflect its senior management's values. If an organisation is serious about implementing TQM.7 Quality Measurement "If you do not know where you are going.6 Addressing Deficiencies TQM is a management philosophy that seeks to prevent poor quality in products and services. Antineo Yong Gee Page 15 . rather than simply to detect and sort out defects. 5. what the current quality levels are).BA 606 Operation Management T310 5. 5. "An ounce of prevention is worth a pound of cure". you will probably end up somewhere" is a saying particularly relevant to TQM.8 Benchmarking Benchmarking consists of identifying other organisations that perform well and incorporating their wisdom into one's organisation. the commitment to do so has to start at the top. The quality measurement aspect of TQM asks the question: where are we and where are we going? A basic TQM concept is that quality is a measurable commodity.

Simply cutting costs. TQM.BA 606 Operation Management T310 5. the customer is receiving the same level of quality for a lower cost). A business process is a set of logically related tasks performed to achieve a defined business outcome.however. technology-related technology and organization-related elements.9 Value Improvement The essence of value improvement is the ability to meet or exceed customer expectations while eliminating unnecessary expenditure. or Business Process Change Management. Business Process Re-Engineering (BPR) The analysis and design of workflows and processes within an organization. In Several order concepts to use technologies these concepts and technologies effectively. Business Transformation. 5.10 Training Training and is basic are to the inherent TQM to process. The major element of BPR is processrelated elements. people have to be trained. Business Process Reengineering is also known as Business Process Redesign. Yet another saying comes to mind: "If you think training is expensive try ignorance. Re-engineering is the basis for many recent developments in management. Antineo Yong Gee Page 16 . Removing unnecessary costs while simultaneously satisfying customer expectations and requirements can only serve to increase customer satisfaction (after all. will not improve value if the focus does not remain on satisfying customer requirements and expectations." 6. There is six elements that need to implement to it success.

‡ Encourages training and development by building creative work environment. ‡ Externally focus on customers and the generation of greater value for customers. Identify the processes to be redesigned: Most firms use high. Develop the business vision and process objectives: Business Process Reengineering is driving by a business vision which implies specific business objectives such as cost reduction. ‡ Internally focus on harnessing more of the potentials of people and applying it to those activities that identify and deliver values to customers. b.impacts approach which focuses and most important processes or those that conflict most with the business vision. ‡ Breaking away from conventional wisdom and the constraints of organizational boundaries.BA 606 Operation Management T310 The essential element or principles of reengineering include the following: ‡ Rethinking the theory of the business. ‡ Think and execute as much activity as possible horizontally. To implement BPR in ABC Company. output quality improvement. Few number of firms use the exhaustive approach that attempts to identify all the processes within an organization and the prioritize them in order to redesigned urgency. concentrating on flows and processes through the organization. ‡ Challenging old assumptions and discharging old rules that are no longer applicable. there is a step that needs to follow: a. time reduction. Antineo Yong Gee Page 17 . ‡ Using information technology not to automatic outdated process but to redesign new ones. quality of work life.

is a participative system empowering all employees to take responsibility for improving quality within the organization. Finally along with TQM. It must be recognized that BPR can be a difficult undertaking and changes to the organization are often required to support new business processes. Certainly. Many companies have found this challenging. efforts should be aimed at an integrated approach to the instruction process. Design and Build a prototype of New Process: The actual design should not be viewed as the end of the BPR process. d. Antineo Yong Gee Page 18 . Summary In developing TQM training programs. BPR is one of the most important management ideas of recent times. Rather. which has been adopted by leading industrial companies. Understand and measure the existing process: For avoiding the repeating of old mistake and for providing a baseline for future improvements. TQM. Training objectives should be directed at helping employees¶ reach the goals set forth for their individual Implementing a total quality management system has become the preferred approach for improving quality and productivity in organizations. BPR and TQM approaches provide a comprehensive management philosophy to these change mechanism. aligns the BPR approach with quick delivery of results and the involvement and satisfaction of customers. to regard BPR as panacea would be mistaken. 7.BA 606 Operation Management T310 c. it should be viewed as a prototype.

no.org/wiki/Total_quality> School For Champions website. 106±114. Bantam Books. pp. viewed 8th November 2010.wikipedia. viewed 5th November 2010. no. pp.html> Wikipedia website. ³Choosing Strategies for Change. 502 ± 516.com/. 54.school-for-champions. 7.wikipedia.´ Harvard Business Review. viewed 2nd November 2010.org/wiki/Business> Antineo Yong Gee Page 19 . <http://en. & Schlesinger LA 1979.tripod.com/tqm> Auciello website. A 2005. TA 1998. Kotter JP. vol. <http://www. Wikipedia website. New York. vol. Halachmi.BA 606 Operation Management T310 8. Intellectual capital: the new wealth of organisations. <http://en. 57. 2. References Stewart. viewed 3rd Novemebr 2010 <http://auciello. International Journal of Productivity and Performance Measurement. µPerformance Measurement is Only One Way of Measuring Performance¶.

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