An Assignment on

Total Quality Management and CoreProcess Reengineering

Course Name: Strategic Management (IB 401)
Prepared For:
Dr. Md. Abu Hossein Siddique Professor Department of international Business Faculty of Business Studies University of Dhaka

Prepared By:
Apurba Ranjan Paul Roll No. 24 4th Year, 1st Semester BBA 15th Batch Department of International Business University Of Dhaka Submission Date: December 15th , 2012.

December 19th, 2012 Dr. Md. Abu Hossein Siddique Professor Dept. of International Business University of Dhaka Subject: Submission of the Assignment Dear Sir, Here is my assignment on Total Quality Management and Core Process Reengineering. I have incorporated the most complete and important information available here. We have tried our best to show all kinds of success factor of the Total Quality Management and Core Process Reengineering in Bangladesh here. I am truly grateful for assigning us such an assignment which helps us to understand about Strategic management, Total Quality Management and Core Process Reengineering and many other important and stunning components involved in Total Quality Management and Core Process Reengineering. This will help us in achieving both practical and theoretical knowledge about the strategic management. Our effort will be successful if it serves the purpose well. We sincerely hope that you will appreciate our workings. Thank You. Yours Obediently Apurba Ranjan Paul

ACKNOWLEDGEMENT

First of all we would like to thank the almighty Allah as he enables us to complete the term paper with success. We also would like to thank our honorable course teacher; Dr. Abu Hossein Siddique as he properly guided and help us to organize our work. Wed like to thank those people who help us a lot in the every step of preparing this assignment. As this is a group work, so every group member should be given thanks for their enormous effort on preparing this assignment. There is some possibility to do mistakes. If we make any mistake, we apologize for those unwilling mistakes.

Total quality management

Total Quality Management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes. TQM functions on the premise that the quality of products and processes is the responsibility of everyone who is involved with the creation or consumption of the products or services offered by an organization. In other words, TQM requires the involvement of management, workforce, suppliers, and customers, in order to meet or exceed customer expectations.Total Quality Management is an approach to the art of management that originated in Japanese industry in the 1950's and has become steadily more popular in the West since the early 1980's. Total Quality is a description of the culture, attitude and organization of a company that aims to provide, and continue to provide, its customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with things being done right first time, and defects and waste eradicated from operations.

Many companies have difficulties in implementing TQM. Surveys by consulting firms have found that only 20-36% of companies that have undertaken TQM have achieved either significant or even tangible improvements in quality, productivity, competitiveness or financial return. As a result many people are sceptical about TQM. However, when you look at successful companies you find a much higher percentage of successful TQM implementation. Considering the practices of TQM as discussed in six empirical studies; Cua, McKone, and Schroeder (2001) identified the nine common TQM practices as: 1. cross-functional product design 2. process management 3. supplier quality management 4. customer involvement 5. information and feedback 6. committed leadership

7. strategic planning 8. cross-functional training 9. employee involvement

Important Principles of Total Quality Management

Total Quality Management (TQM) is an approach that organizations use to improve their internal processes and increase customer satisfaction. When it is properly implemented, this style of management can lead to decreased costs related to corrective or preventative maintenance, better overall performance, and an increased number of happy and loyal customers. However, TQM is not something that happens overnight. While there are a number of software solutions that will help organizations quickly start to implement a quality management system, there are some underlying philosophies that the company must integrate throughout every department of the company and at every level of management. Whatever other resources you

use, you should adopt these seven important principles of Total Quality Management as a foundation for all your activities.

1. Quality can and must be managed

Many companies have wallowed in a repetitive cycle of chaos and customer complaints. They believe that their operations are simply too large to effectively manage the level of quality. The first step in the TQM process, then, is to realize there is a problem and that it can be controlled.

2. Processes, not people, are the problem

If your process is causing problems, it wont matter how many times you hire new employees or how many training sessions you put them through. Correct the process and then train your people on these new procedures.

3. Dont treat symptoms, look for the cure

If you just patch over the underlying problems in the process, you will never be able to fully reach your potential. If, for example, your shipping department is falling behind, you may find that it is because of holdups in manufacturing. Go for the source to correct the problem.

4. Every employee is responsible for quality

Everyone in the company, from the workers on the line to the upper management, must realize that they have an important part to play in ensuring high levels of quality in their products and services. Everyone has a customer to delight, and they must all step up and take responsibility for them.

5. Quality must be measurable

A quality management system is only effective when you can quantify the results. You need to see how the process is implemented and if it is having the desired effect. This will help you set your goals for the future and ensure that every department is working toward the same result.

6. Quality improvements must be continuous

Total Quality Management is not something that can be done once and then forgotten. Its not a management phase that will end after a problem has been corrected. Real improvements must occur frequently and continually in order to increase customer satisfaction and loyalty.

7. Quality is a long-term investment

Quality management is not a quick fix. You can purchase QMS software that will help you get things started, but you should understand that real results wont occur immediately. TQM is a long-term investment, and it is designed to help you find long-term success. This kind of management style can be a huge culture change in some companies, and sometimes the shift can come with some growing pains, but if you build on a foundation of quality principles, you will be equipped to make this change and start working toward real long-term success.

Some useful messages for TQM implementations:

if you want to be a first-rate company, don't focus on the second-rate companies who can't handle TQM, look at the world-class companies that have adopted it

the most effective way to spend TQM introduction funds is by training top management, people involved in new product development, and people involved with customers Its much easier to introduce EDM/PDM in a company with a TQM culture than in one without TQM. People in companies that have implemented TQM are more likely to have the basic understanding necessary for implementing EDM/PDM. For example, they are more likely to view EDM/PDM as an information and workflow management system supporting the entire product life cycle then as a departmental solution for the management of CAD data

Important aspects of TQM include customer-driven quality, top management leadership and commitment, continuous improvement, fast response, actions based on facts, employee participation, and a TQM culture. Customer-driven quality TQM has a 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.

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. Continuous improvement TQM also recognizes that product quality is the result of process quality. 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, 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.

Fast response Efficiencies are realized from the elimination of non-value-adding effort such as re-design. 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 customerdriven 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. The result is a dramatic improvement in the elapsed time from product concept to first shipment.

Actions based on facts 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 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 statistical approach to process management in both engineering and manufacturing recognizes that most problems are system-related, and are not caused by particular employees.

Employee participation 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 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.

Quality is must:
Total Quality can be summarized as a description of the culture, attitude and organization of a company that aims to provide, and continue to provide, its customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with things being done right first time, and defects and waste eradicated from operations. Total Quality Management (TQM) is an approach to the art of management that has become steadily more popular in the West since the early 1980's. The key points of TQM include:

customer-driven quality TQM leadership from top management continuous improvement fast response to customer requirements actions based on data and analysis participation by all employees a TQM culture

TQM has a customer-first orientation. Customer satisfaction is seen as the company's highest priority. This demands constant sensitivity to customers and fast response to their requirements. Each part of the company is involved in Total Quality, operating as a customer to some functions and as a supplier to others. Vendors are seen as partners in the process of providing customer satisfaction.

Top management commitment and involvement is required 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. Such 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 employee remuneration.. Continuous improvement of all operations and activities is at the heart of TQM. Because customer satisfaction can only be achieved 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. Elimination of waste is a major component of the quality improvement approach. There is also a strong emphasis on prevention rather than detection, hence an emphasis on quality at the design stage. The customer-driven process helps to prevent errors and get closer to defect-free production. When problems do occur within the product development process, the aim is to identify and solve them rather than hide them. Fast response is required in the form of ever shorter product and service introduction cycles and more rapid response to customer needs. This means that all activities should include measurement and monitoring of cycle time and responsiveness as a basis for identifying opportunities for improvement. Among the main benefits of customer-driven and processoriented product development are the resulting simplicity and efficiency that greatly reduce the time. TQM 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 recognizes that most problems are system-related, and are not caused by particular employees. The approach ensures that data is collected and placed 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.

TQM Tools
Quality Improvement Teams These are small groups of employees who work on solving specific problems related to quality and productivity, often with stated targets for improvement. Quality improvement teams are proving to be highly successful at tracking down the causes of poor quality as well as taking remedial action. Statistical process control This is a statistical technique that uses periodic random samples taken during actual production to determine whether acceptable quality levels are being met or whether production should be stopped in order to take remedial action. Because most processes produce some variation, statistical process control uses statistical tests to determine when variations fall outside a narrow range around the acceptable quality level. Benchmarking This is the process of identifying the best practices and approaches by comparing productivity in specific areas within ones' own company to other organizations both within and outside the industry.

Commitment In order for the Eye on the Future Model to be a success, each member in an organization must be committed to the change process. It cannot be viewed as the new flavor of the month, but should rather be regarded as an exciting life changing process. Too often peoples' enthusiasm wanes when they realize that the change process in an organization is not likely to occur overnight People need to pledge their support to objectively analyzing their job functions and procedures, and seeking new innovative ways to improve them. Training Training Programs must be devised and implemented to help bridge the gap identified previously. Training must be a part of the organizations succession planning. In today's business environment any training which is less than visionary will not help the organization meet its' future goals and objectives. Training objectives must be supportive of the company's vision and mission. In order to identify training, the employees must be involved. System deficiencies including non-conformance reports, customer complaints and job performance appraisals will highlight the most urgent areas for development.

Core Process Reengineering

Introduction
CPR is known by many names, such as core process redesign, new industrial engineering or working smarter. All of them imply the same concept which focuses on integrating both business process redesign and deploying IT to support the reengineering work. In this section we attempt to explore two questions: where does CPR come from and what is involved in CPR. Core Process Reengineering (CPR) has been receiving attention from industries as well as the academic community, because it is likely to change management practice and working processes in organizations in the future. However it is commonly agreed that CPR is important but also problematic. Especially we highlight some major debates currently found in the literature of CPR. These debates include the definitions used to describe business processes and CPR, the scale of the changes involved in CPR, and the significance and role of information technology (IT) in CPR, especially IT systems. As the main theme of this thesis is applying EM to CPR, it is essential to understand some factors which cause CPR projects failure due to the poor design of the supporting systems under the conventional paradigm.CPR is known by many names, such as core process redesign, new industrial engineering or working smarter. All of them imply the same concept which focuses on integrating both business process redesign and deploying IT to support the reengineering work. In this section we attempt to explore two questions: where does CPR come from and what is involved in CPR. What is CPR Generally the topic of CPR involves discovering how business processes currently operate, how to redesign these processes to eliminate the wasted or redundant effort and improve efficiency, and how to implement the process changes in order to gain competitiveness. The aim of CPR, according to Sherwood-Smith (1994), is seeking to devise new ways of organizing tasks, organizing people and redesigning IT systems so that the processes support the organization to realize its goals.

The Definition of CPR It is argued by some researchers that there is no commonly agreed definition of CPR. Peltu et al. consider that this lack of an accepted definition of CPR makes it difficult to assess the overall success or failure of its concept. Thus it is essential to make clear what the definition of CPR is before we propose any framework and techniques for CPR. Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed. Another CPR father, Davenport (1993), describes business process redesign as the analysis and design of work flows and processes within and between organizations. A process is structured change. It is a collection of activities that takes one or more kinds of input and creates an output that is of value to the customer. Davenport (1993) describes the process as; A process is a specific ordering of work activities across time and space, with a beginning, an end, and clearly identied inputs and outputs: a structure for action. And Warboys et al. (1999) define a process as: pattern of events which an observer may recognize across different actual examples (or occurrences) of the process, or which may be made manifest, or implemented, in many different occurrences.

Figure: Core Process Reengineering.

difference between CPR and TQM :

TQM approach favors steady incremental gain, may often take a number of years to complete. For rms in highly competitive industries, this lag time can allow competitors to forge ahead. In contrast, results from CPR can be realized within 12-18 months, but it is a far riskier undertaking, and should not be regarded as a quick x solution. Furthermore, whereas CPR is commonly viewed as a top-down solution from management TQM involves staff from all levels for problem solving and suggests bottom-up improvement. Employees resistance to change has been identied as one major barrier to the success of CPR. It was reported by MacIntosh and Francis (1997) that those companies that had introduced TQM prior to taking on board CPR, faced less resistance to change. As we believe that these two approaches are compatible, we propose in this thesis a concept of participative CPR which combines both of them

Process-Orientation: From Structure to Process The functional structure is a vertical structure in which there may exist barriers to separate the functions in organizations. CPR emphasizes business processes which are regarded as horizontal ows and cut across organizational functions. Many current business processes with their functional structures were designed to enable efcient management by separating processes into small tasks that could be performed by less skilled workers with little responsibility. Under this structure, the important decisions were made by the higher skilled and more trusted managers. Traditional (structural) approaches to business engineering generally follow this sequential order: rstly business strategy is proposed, then the business structures and processes are planned, and nally they are implemented with IT. In comparison, CPR is regarded as process-oriented which is trying to overcome some problems raised by hierarchical structures. That is, CPR as a process-orientation changes the structural relationships between management and employers into the interactive processes between them. CPR aims to break radically the existing process structures and replace them by fundamental and innovative solutions.

Problems Facing CPR

In 1996 Davenport published an article entitled Why Re-engineering Failed: The Fad that Forgot People in which he reports: To most business people in the United States, re-engineering has become a word that stands for restructuring, lay-offs, and too often, failed change Programs companies that embraced as the silver bullet are now looking for ways to re-build the organizations torn fabric. (Davenport, 1996) Some explanations of such high rates of failure for CPR projects have been discussed in CPR literature. For example, employees resistance of change as they consider CPR as threats to their jobs (i.e. the increase in short-term contracts and lack of promotion); Galliers (1998) and Gerrits (1994) point out that currently CPR approaches lack detailed guidance and support for the actual implementation of reengineering: many publications describe the situation before and after CPR but do not discuss the path to reach the nal situation; For example: The pendulum has swung from continuous reengineering and re-inventing to pick an application package and force our business processes to comply with the package. We can say that mere automation of existing processes can at best lead to more efcient, but no more effective, processes. Both information and data: information is the collection of data. Information may be understood as being both enabling and contextual, while data is contextfree and simply the raw material from which information (meaning) may be attributed.

Human Factors in CPR

We have found that the focus of the CPR literature is on IT and process redesign techniques. However there are other complex issues such as human, organizational, cultural and political issues. Some researchers determine that one of the main reasons for CPR failure is the neglect

of the human element the approach takes too much account of the scale of changes and fails to consider such change through people. Corrigan (1996) describes this situation thus: Given [CPRs] focus on business processes, many researchers have highlighted the lack of attention given by [CPR] to the human dimensions of organizing, emphasizing how employees, not just processes must be re-engineered or debugged if they are to run effectively in systems. Davenport (1993) emphasizes that the success of reengineering program is dependent on and concurrent with effective organizational and human resource change. Thus it is essential to take a wider (contextual) view of these inuences on the success of CPR.

Resistance to Change
CPR is perceived as a threat to their jobs, either a threat directly to their existence or a threat to the quality and content of their jobs, or as causing the lack of promotion. CPR aims at the change in the organization that is for the best. However as CPR is a radical rather than incremental change, it is not surprising that resistance to change has been identied as a major barrier to the success of CPR. Corrigan identies one common situation in most organizations adopting CPR (through his interviews): Some of the interviewees pointed to the fact that employees were expected to agree and go along with goals and changes in working life that have been determined by senior management, and that they were the last to know about how change would affect them. For these people, People commonly asked: Why change if it is working?. Extremely, as Peltu et al. (1996) verify, downsizing, i.e. sacking people, is the most obvious dark side of CPR. Thus, to avoid this situation, as we discussed earlier about TQM, many companies try to introduce TQM prior to CPR for the reason of less resistance to change. Stewart (1993) notes that you cannot do reengineering without an environment of continuous improvement or TQM. CPR can only work when those in the company who have to work with the new design have a role in creating it, and thus support such changes.

Participative CPR
It is evident that no CPR will be successful without the support and active participation of the people. Even after all persons agree to go with CPR, it is still a hard task for everyone to carry on. As Peltu et al. (1996) describe: The CPR process is a walk in the fog because of the difficulty involved in reaching agreement among many stakeholders about the current situation and future needs. Scarbrough (1996) emphasizes that an important question in all programs for change is what is required to bring about changes in how people relate to each other? This suggests a reason for the high rate of failure of CPR, as it is not possible to change relationships without working within them. The IT tools and techniques chosen for CPR can only be the starting point. But the change will not be successful without peoples learning, participation and adaptation in order to understand the require-Core Process Reengineering

CPR Success Factors: Factors relating to change

management systems and culture

Change management
Change management, which involves all human- and social-related changes and cultural adjustment techniques needed by management to facilitate the insertion of newly-designed processes and structures into working practice and to deal effectively with resistance, is considered by many researchers to be a crucial component of any CPR efforts. Revision of reward systems, communication, empowerment, people involvement, training and education, creating a culture for change, and stimulating receptivity of the organization to change are the most important factors related to change management and culture.

Revising reward and motivation systems

Staff motivation through a reward Program has a crucial role in facilitating re-engineering efforts and smoothing the insertion of new processes in the workplace (Towers, 1994; Bjrn-Andersen and Turner, 1994; Hinterhuber, 1995; Ostroff and Smith, 1992; Dawe, 1996; Feltes and Karuppan, 1995). As CPR brings about different jobs (The Trouble with Reengineering, 1995), existing reward systems are no longer appropriate for the new work environment (Hammer and Champy, 1993; Harvey, 1995; Davenport and Nohria, 1994).

Effective communication
Effective communication between stakeholders inside and outside the organization is necessary to market a CPR Program (Talwar, 1993; Hinterhuber, 1995) and to ensure patience and understanding of the structural and cultural changes needed (Berrington et al., 1995) as well as the organization's competitive situation (Cooper and Markus, 1995). Effective communication is considered a major key to successful CPR-related change efforts (Davenport, 1993; Jackson, 1997; Zairi and Sinclair, 1995; Hammer and Stanton, 1995; Carr and Johansson, 1995; Arendt et al., 1995; Dawe, 1996).

Empowerment
Empowerment entails that staff are given the chance to participate in the redesign process. As CPR results in decisions being pushed down to lower levels, empowerment of both individuals and teams becomes a critical factor for successful CPR efforts since it establishes a culture in which staff at all levels feel more responsible and accountable (Rohm, 1992/93) and it promotes a self-management and collaborative teamwork culture (Mumford, 1995).When empowered, employees are able to set their goals and monitor their own performance as well as identify and solve problems that affect their work, thus they are supporting the CPR efforts.

Human involvement
In re-engineering, all people must be openly and actively involved and should be consulted at all stages on the process and its leaders. This includes line managers (Harrison and Pratt, 1993), process owners (Furey, 1993), those involved in IS and human resources (Bashein et al., 1994), and workers (Janson, 1992). The culture of experimentation is an essential part of a successfully re-engineered organization and, therefore, people involved or affected by CPR must be prepared to endure errors and mistakes while re-engineering is taking place.

Training and education

Business managers, line managers, IS managers, and other staff in the front-line are the people who benefit most from education and BPMJ training activities (Towers, 1994) in both business and IT-related skills and expertise.Many researchers consider training and education to be an important component of successful CPR implementation. Organizations that undertake reengineering projects may have to increase their training budget by 30-50 percent. CPR-related concept, skills, and as well as interpersonal and IT skills.

Creating an effective culture for organizational change

Organizational culture influences the organization's ability to adapt to change. The existing culture contains beliefs and values that are often no longer appropriate or useful in the reengineered environment. Therefore, the organization must understand and conform to the new values, management processes, and the communication styles that are created by the newly-

redesigned processes so that a culture which upholds the change is established effectively. As CPR supports teamwork and integration of labour, co-operation, co-ordination, and empowerment of employees become the standard attitudes in the re-engineered work environment. However, trust and honesty among team members is also needed, and within the organization as a whole.

Stimulating the organizations receptiveness to change

The most noticeable managerial practices that directly influence the success of CPR implementation are top management support and commitment, championship and sponsorship, and effective management of risks. Committed and strong leadership Commitment and leadership in the upper echelons of management are often cited as the most important factors of a successful CPR project. Preparing the organization to respond positively to CPR-related change is critical to success. When people are made resilient to change, they remain positive during uncertainty, focused, flexible, organized, and pro-active. Leveraging organizational change requires effective one-to-one and one-to- many interactions to enroll key influencers of both individuals and groups within and without the organization. Factors relating to management competence Sound management processes ensure that CPR efforts will be implemented in the most effective manner.

Implementation process
Leadership has to be effective, strong, visible, and creative in thinking and understanding in order to provide a clear vision of the future. This vision must be clearly communicated to a wide range of employees who then become involved and motivated rather than directly guided Commitment to and support for the change must constantly be secured from senior management throughout a CPR project. Sufficient authority and knowledge, and proper communication with all parts in the change process, are important in dealing with organizational resistance during CPR implementation

Championship and sponsorship

Barriers such as political, economic, and organizational risks are all associated with CPR-related change. And champions of the change play a major role in overcoming these barriers and

increasing the chance of successful CPR implementation. The champions must be able to persuade top management of the need to change and to continually push the change efforts throughout the organization. Political and material sponsorship by the champions of change to business processes, job definitions, reward systems, and organizational structure needs strong support from senior.

Management of risk
CPR implementation involves radical change to several systems in the organization. Risks associated with acceptance of changes in the organizational structure, deploying emerging ITs with little familiarity, large investment in new resources needed for the new processes, loss of personnel, and loss of earnings are some examples of the many risks that an organization may take when implementing CPR. Therefore, continuous risk assessment is needed throughout the implementation process to deal with any risk at its initial state and to ensure the success of the re-engineering efforts. Anticipating and planning for risk-handling is important for dealing effectively with any risk when it first occurs.

CPR Success factors: Factors relating to organizational structure

As CPR creates new processes that define jobs and responsibilities across the existing organizational functions, there is a clear need to create a new organizational structure which determines how CPR teams are going to look, how human resources are integrated, and how the new jobs and responsibilities are going to be formalized.

An adequate job integration approach Several researchers emphasise that designing and implementing an adequate organizational human resources infrastructure is important to a CPR project's success (Zairi and Sinclair, 1995; Guha et al., 1993; Has Re-engineering had its 15 Minutes of Fame?, 1995). Job and labour integration (case worker) is the most appropriate approach of human resources design that supports the process-based organizational structure rather than a function-based one (Davenport

and Nohria, 1994; Hammer, 1990). When individuals within a process perform a series of tasks efficiently, product quality, processing time, and cost are all going to improve (Morris and Brandon, 1991). However, the move to integrate human resources architecture necessitates a careful consideration of all related organizational changes. Appropriate job definitions and allocation of responsibilitiesAs CPR results in a major structural change in the form of new jobs and responsibilities, it becomes a prerequisite for successful implementation to have formal and clear descriptions of all jobs and responsibilities that the new designed processes bring along with them(Talwar, 1993).CPR implementation process Factors related to CPR project management Successful CPR implementation is highly dependent on an effective CPR Program management which includes adequate strategic alignment , effective planning and project management techniques, identification of performance measures , adequate resources, appropriate use of methodology , external orientation and learning, effective use of consultants , building process vision , effective process redesign, integrating CPR with other improvement techniques , and adequate identification of the CPR value. Aligning CPR strategy with corporate strategy As corporate strategy determines objectives and guidance on how organizational capabilities can be best utilised to gain competitive position, CPR strategy, accordingly, guides the alteration of tasks and flows into integrated processes, and variance in how tasks are performed and the flow of material, people, and information becomes a source of competitiveness. Therefore, a consideration of the strategic context of growth and expansion, creating a top-level strategy to guide change (Carr, 1993), and careful alignment of corporate strategy with CPR strategy are crucial to the success of CPR efforts. Effective planning and use of project management techniques Proper planning for the CPR project with adequate time frame are key factors in delivering a successful CPR project on time. Effective use of project management techniques and managing people-related issues have also a crucial role in smoothing the flow of the process redesign stages.

Appropriate use of methodology Establishing a disciplined approach for CPR and using a sound methodology are prerequisites for CPR success. A CPR methodology should be designed or selected creatively to satisfy the current needs of the organization (Klein, 1994). Adequate customisation of available CPR methodologies determines the level of comprehensiveness and effectiveness that a new customised CPR methodology can reach. External orientation and learning External orientation based on customer research, competitive analysis, and benchmarking is a critical element of successful CPR efforts. Benchmarking is an effective technique to learn from customers and competitors. Customers' requirements and expectations should be defined and measured for CPR, and processes should be defined broadly in terms of customer value. Benchmarking allows learning from other organizations' experiences in CPR, as well as learning from one re-engineering process to another in the same organization.

Effective use of consultants Success of consultants in CPR is determined by their level of experience in implementing similar projects in other organizations, as well as their ability to direct the re-ngineering efforts to areas of substantial benefits to the organization. Several authors suggest that an effective use of consultants is useful in ensuring successful implementation of CPR. Building a CPR vision Building an imaginative thinking and a clear and compelling vision for future processes is critical to the successful implementation of CPR. Process vision directs both long-term and dayto-day actions. A complete development of process vision includes evaluating business strategy to anticipate future processes, conducting customer-based assessment of performance targets, benchmarking similar CPR efforts, and developing process attributes and its performance measures.

Effective process redesign Effective process orientation, appropriate level of process knowledge , documentation of existing processes, appropriate selection of core processes, and use of prototyping are all critical components in successful CPR implementation. Adequate identification of process gaps and evaluation of effectiveness of current processes by making use of appropriate software tools to visualise and analyse them is also useful. Identifying process owners is also vital to CPR implementation. Integrating CPR with other improvement approaches Several researchers suggest that using continuous improvement techniques increases dramatic gains.TQM is particularly suggested to be integrated with CPR. Adequate identification of CPR values CPR efforts should focus on identifying re-engineering opportunities (Guha et al., 1993) and values to internal and external stakeholders (Champy, 1995; Is Re- engineering A Fad?, 1996). A continuous focus should be maintained on business objectives (Carr, 1993)

CPR Success Factors: Factors related to IT infrastructure

Factors related to IT infrastructure have been increasingly considered by many researchers and practitioners as a vital component of successful CPR efforts (Brancheau et al., 1996; Malhotra, 1996; Ross, 1998a; Broadbent and Weill, 1997). Effective alignment of IT infrastructure and CPR strategy, building an effective IT infrastructure, adequate IT infrastructure investment decision,adequate measurement of IT infrastructure effectiveness, proper IS integration, effective re-engineering of legacy IS, increasing IT function competency, and effective use of software tools are the most important factors that contribute to the success of CPR projects. Adequate alignment of IT infrastructure and CPR strategy CPR and IT infrastructure strategies which are both derived from organization strategy are in need of effective alignment to ensure the success of the CPR initiative (Kettinger et al., 1997; Venkatraman, 1993; Grover et al., 1993; Martinez, 1995). IT can best enhance an organization's

position by supporting business-thrust strategy (McDonald, 1993). The business strategy should be clear and detailed (Earl, 1995). Top management should act as a strategy formulator who provides commitment for the whole process of redesign, while the IS manager should be responsible for designing and implementing the IS strategy (Henderson and Venkatraman, 1993). The strategy describes the role of IT in leveraging changes to the underlying business processes and infrastructures (Meador, 1994). IT strategic alignment is approached through the process of integration between business strategy and IT strategy, as well as between IT infrastructure and organizational infrastructure (Henderson and Venkatraman, 1993). Building an effective IT infrastructure Researchers consider adequate IT infrastructure reassessment and composition as a vital factor in successful CPR implementation (Moad, 1993; Rockart and Short, 1989). Adequate understanding and identification of enabling technologies for redesigning business processes (Barrett, 1994; Guha et al., 1993), proper selection of IT platforms (Guha et al., 1993), effective overall system architecture (Jackson, 1997), adaptable and flexible IT infrastructure (Technology Talks to Business with EAS, 1997), and proper installation of IT components (Guha et al., 1993) all contribute to building an effective IT infrastructure for business processes. The IT infrastructure and CPR are interdependent in the sense that deciding the information requirements for the new business processes determines the IT infrastructure constituents, and recognition of IT capabilities provides alternatives for CPR (Ross, 1998a; Venkatraman, 1993). Building a responsive IT infrastructure is highly dependent on an appropriate determination of business process information needs (Johnston and Gibbons, 1975). Adequate IT investment and sourcing decisions Adequate investment (Zairi and Sinclair, 1995) and an IT sourcing strategy (Earl, 1996) are critical to the success of CPR projects which involve considerable re-engineering efforts of the IT infrastructure components. A successful IT infrastructure investment decision should be guided by corporate strategies. A key starting point in an effective IT investment decision process is translating the strategic context into comprehensive strategic statements that are simple, achievable, practical and easy to communicate across the firm (Broadbent and Weill, 1997). This process should also include expectations for IT investment in the firm, data access

and use, hardware and software resources, communications capabilities and services, and architecture and standards approach (Broadbent andWeill, 1997). A sourcing decision should make a trade-off between internal and external sourcing (Earl, 1996; Walker and Weber, 1984). A multisourcing strategy (Hoffman, 1997) is effective for organizations that insource their strategic IT components while outsourcing common and non-critical components. Adequate measurement of IT infrastructure effectiveness on CPR Information and IT are the information resources that a business process needs (Sabherwal and King, 1991) to create a competitive value to an organization and, therefore, they are essential assets that need to be acquired, used, managed, and measured to judge the value obtained by investment in information resources (Earl, 1997). Thus the measurement of IT effectiveness is an important factor in successful CPR implementation. Measurement of the ITBPMJ infrastructure effectiveness determines IT deficiencies that exist when business process information resource requirements cannot be met by the current IT infrastructure capabilities. Proper IS integration The effective integration of various organizational IS is vital to successful CPR implementation. IS integration for CPR can be measured by the extent to which various information systems are formally linked for the purpose of sharing complete, consistent, accurate, and timely information among business processes. Data integration and communication networking are the most important enablers for IS integration The success of the data integration effort depends on the level of integration between organization planning and IS planning, top management support, user involvement, leadership, effective communication, systematic implementation , the degree of interdependence between business units, the need for flexible action by subunits, the degree of difficulty in designing and implementing systems with integrated data, and the degree of interoperability between systems.

CPR failure factors

(1) Problems in communication: Inadequate communication of need to change Hiding uncertainties in communication Poor communication between CPR teams and other personnel

(2) Organizational resistance: Resistance to change; Fear, lack of optimism, and skepticism about CPR results Worries about job security Fear of job loss

(3) Lack of organizational readiness for change: Need for change management is not realized Lack of determination/courage/skills of management for radical changes. Demand for change exceeds the capacity to absorb

(4) Problems related to creating a culture for change: Underestimating the human side Not considering existing management systems and organizational culture Values ignorance A lack of trust between management and employees

(5) Lack of training and education: The absence of theory Lack of understanding of CPR Lack of appropriate training for those affected by CPR

(6) Problems related to commitment, support, and leadership:

Lack of sustained management commitment and leadership Lack of top management attention and support

(7) Problems related to championship and sponsorship: Lacking the visible sponsorship of senior management Wrong sponsor Lack of a champion

(8) Ineffective CPR teams: Lack of a cross-functional project team Difficulty in finding suitable teams members Lack of IS staff credibility and involvement in re-engineering teams Inadequate communication among members

(9) Problems related to the integration mechanism, job definition, and allocation of responsibilities: Inflexible hierarchical structures People think solely in terms of their own immediate working group Conflicts between CPR team responsibilities and functional responsibilities

(10) Problems related to planning and project management: Inadequate planning for CPR project Compressing the time needed to succeed Not enough time to develop new skills for CPR

Other factors are (11) Problems related to goals and measures (12) Inadequate focus and objectives (13) Ineffective process redesign (14) Problems related to IT investment and sourcing decisions (15) Improper IS integration

Analyzing TQM and CPR

TQM, based on many of the ideas of Deming, Juran and Crosby, aims to improve the processes within an organization by emphasizing organization-wide continuous quality improvement. It focuses on implementing incremental change with minimal variation to existing processes. These activities include: Focusing on customers needs and customer satisfaction. Analyzing business processes to improve customer service as well as organization-wide efficiency. Proclaiming the values of teamwork, employee empowerment, and participative decision making throughout the organization. Reasoning based on statistical analyses using factual data. Training and educating employees and managers in the organization. CPR, based primarily on the works of Davenport & Short (1990) and Hammer (1990), focuses on improving business processes through implementing changes radically and rapidly, including creating new processes to displace the old ones. This radical change process includes: Receiving top management commitment and initiating re-engineering change from the top down. Implementation of CPR cross-functional teams. Detailed study and understanding of existing processes. Selection of specific processes for re-engineering. Designing alternatives for new processes and choosing the best one, including developing prototypes of these new designs. While TQM and CPR appear to be different approaches, both methods do share some commonalities These include: Quality improvement- a study by Lee & Schniederjans (1996) found that a majority of managers (82%) agreed that CPR activities were directly or indirectly aimed at improving product quality in the firm. TQMs basic theme according to Deming (1986) is the concept of quality improvement.

Top management commitment- CPR requires a higher degree of top management commitment whereas TQM requires an overall commitment for the process. Process improvement- the basic premise of both TQM and CPR is the process improvement. The focus is on process rather than function and department mentality. Customer satisfaction- is the desired outcome that drives both methods. As both TQM and CPR focus on quality improvement, they both need to be customer oriented. Teamwork and training- both methods emphasize the need for teamwork and training to implement their activities. Both TQM and CPR need the cooperation of all the employees, i.e. organization-wide, and for CPR especially, it is imperative for employees to be trained in the new techniques and tools that may displace the existing, old ways of doing things in the organization. Cultural change in the organization- both methods require an overhaul of the organizational culture. Both need cross-functional approaches to teamwork, employee involvement, and empowerment and the shift away from the traditional hierarchical control and leadership mechanisms in the organization. With CPR, the employee involvement and empowerment are led from the top of the organization whereas with TQM, this is more a bottom-up approach. However, despite these similarities, TQM and CPR also have some basic differences between them. These include: TQM works within the existing processes and attempts to implement continuous but incremental change improvements. On the other hand, CPR aims at radical change, innovations and breakthroughs, including displacing the old processes with new ones. TQM needs overall top management support and, when provided, can continue functioning without any more daily support from management. It is a bottom-up approach but CPR is an intensive top-down approach that needs continual top management leadership and support. TQM emphasizes the automated systems for collecting data and controlling process variation through statistical analyses. CPR, however, places emphasis on the critical role of information technology (IT) in the organization.

TQM appears to take a moderate amount of risk by working with existing processes whereas CPR assumes a high risk in its efforts, including doing away with the existing methods of operation. TQM focuses on a cultural change within the organization but CPR can go beyond cultural and include a structural change of the organization. The TQM scope is typically narrow and within functions whereas the CPR scope is broad and cross-functional. CPR reinforced the point that business-as-usual, with some incremental, gradual changes- as TQM emphasizes- is not conducive for success (Brown, 1997); and survival in a dynamic information age today almost requires a rapid and major overhaul for any organization, which may be achieved through CPR. The importance of this research with the aim of integrating TQM and CPR for organizations improvement can be defined as below: 1) Guarantee the quality, 2) Decreasing costs, 3) Protecting market share, 4) Having time schedule, 5) Security increasing, 6) Extending new products, 7) Increasing the quality of organization's functions (marketing, after sale services, product quality improvement), 8) Effective interchanging information among different parts of the organization, 9) Costumers satisfaction, 10) Personnel satisfaction, 13) Continuous improvement, 14) Improving process controlling.

Comparison Between TQM and CPR

Description
Methods for each of the approaches vary greatly. Because OD is an umbrella term it encompasses many approaches that are characterized by various techniques and individual and group development Programs. Each approach tends to follow a basic problem solving model such as: determining what the problem is through data collection and diagnosis; action planning generating and examining various options and choosing the most appropriate option; acting on the chosen option; and evaluating the effectiveness of the chosen option TQM can be implemented in a similar way to OD, but in addition to the steps outlined above it is necessary to identify the customers and determine their needs and wants. The problem is then based around whether customer expectations are being met and the aim of the options generated are often to exceed rather than just meet customer expectations . Unlike the other approaches, CPR does not have a particular set of steps for managers to follow (Mumford & Hendricks 1996). However, some steps can be identified. Thomas (1994) suggests that because this approach is based around core processes the first step would be to identify the core processes of the business. The next step would be to eliminate processes that were adding only marginal value to the organization. This would then be followed by the re-engineering of core processes.

Type of Change
OD concerns incremental change, CPR concerns frame-braking change. That is, CPR concerns a radical change in work processes, which requires a culture change and often entails change in the organizational structure. On a continuous scale between incremental and frame-braking, TQM is situated in the middle, although more towards the incremental end of the scale.. TQM is seen as a continuous Program that continually strives towards an ideal such as zero defects or 100 percent customer satisfaction. OD is a long-term process that may involve several cycles of change in

order to fine-tune the changes, but eventually the organization will achieve the desired results and consider the Program complete. The Program may be reactivated at a later stage, but it is not necessarily continuous. In contrast, CPR is seen as a one-off event aimed at creating new systems and processes. The organization may then establish another Program such as TQM to fine-tune the processes that exist within the newly created framework In fact, a study by Zairi and Sinclair (1995) showed that the integration of re-engineering with a TQM philosophy of continuous improvement can be highly effective.

Conclusion
TQM and CPR all aim to increase organizational efficiency, but attempt to do this through very different means. The key driver can be a similarity between the approaches, as most organizations implement change as a way of dealing with a particular problem. The major difference on this aspect is that TQM and CPR are often triggered by the realization that the organization is operating in an increasingly competitive market, whereas OD may be implemented to solve other problems such as communication barriers within the organization. The approaches are also very different in the way they are practiced. CPR is clearly the most divergent as it is concerned with frame-braking change that attempts to create new systems rather than repairing old systems. For this reason, CPR may be the most suitable approach for an organization that seeks dramatic changes. It is commonly used by organizations that have widespread problems or are close to bankruptcy, but it is also suitable as a way to stimulate innovation for improvement, rather than survival. TQM is clearly a suitable approach where the quality of the products or services is the major concern. OD is, by contrast, a more generic approach that is suitable for a variety of problems. It is particularly useful where the problem itself is unknown. However, it is not useful for organizations that are after a radical solution. Total Quality Management and CPR share a cross-functional relationship. Quality specialists tend to focus on incremental change and gradual improvement of processes, while proponents of reengineering often seek radical redesign and drastic improvement of processes. Quality

management often referred to as TQM or continuous improvement, means programs and initiatives which emphasize incremental improvement in work processes, and outputs over an open-ended period of time. In contrast, reengineering, also known as business process redesign or process innovation, refers to prudent initiatives intended to achieve radically redesigned and improved work processes in a specific time frame. In contrast to continuous improvement, CPR relies on a different school of thought.

In conclusion, there are conceptual differences and similarities between OD, TQM and CPR. Each of the approaches can be effective for improving organizational efficiencies and the approach used is contingent upon the perceived organizational problem and the desired outcome. The approaches are not off-the-shelf solutions and should not be used as such. Rather, they offer a range of options for managers and consultants so that they can achieve the outcome that is most suitable for their organization.