information analysis & technology. information is the critical enabler of tqm conversely, this...

INFORMATION ANALYSIS & TECHNOLOGY


• Information is the critical enabler of TQM• Conversely, this component of TQM lacks his adequate usage for

improvement in many firms• Their issue is not better quality or productivity, rather the real

issue may be the better quality of information• Therefore, integration of a proper information system for tracking

and improving areas is essential for survival• It has become the most important means for companies to create

distinctive quality and unique service at the lowest possible cost• Information is critical to all functions, and all functions need to be

integrated by information

Information we have plenty of, but what’s really necessary to your work, and what form should it take? Don’t expect an ‘’information specialist’’ to tell you

Modern trends dictate information based org. – its tool, the computer

The thing to learn is to take information responsibly i.e. correctly identifying the information you need to effectively carry out your job



Questions.1. What information do I need, and in what form?

The Executives must think through the information they needand make sure that the people on whom they depend to deliver it understand their needs

2. How is this information important to people in other department?

An information of engineering for other department people, if not conceiveable then, guess - not but ask


3. What information data means to people in other areas? What outcome of action are there?

– We users of information data are generally poor at interpretation– We need to look at the information through our area of activities

e.g. – As manager if it has been reported by R&D that the trends of

distribution are changing faster than the change in the technology – Then the manager needs to think of design of product, service of the

product and other aspects– Although these are not related to manager’s job but directly have an

impact on his performance


Other Challenges1. Internal/External Info._ Basically, we are focused internally and under a

false impression that we know every thing, conversely we are less aware of external affairs because they are happening at the periphery of business circles. Consequently, they are reported late, thereby giving a misleading picture. In this regard, we have to increase our exposure to outside information

2. Market Info._ Quality does not mean perfect manufacturing only but it needs to have an understanding about customer’s requirement also. Meaningful market experience, and new technologies are of vital importance

3. Information is not what the computer delivers but what executives need to take effective action, the baseline is to make sure that data are presented in the form in which it is capable of giving information

4.


Lesson drawn is :-• Information entails correct identification of information you

need to effectively carry out your job, and extends to ensuring that the information flows to the people in other areas who stand to benefit from it, and in a form in which those people will readily understand it and exploit accordingly

IMPLICATIONS ON ORGANISATION Designing an appropriate Info System is the most important

component of TQM For the creation of distinctive quality and unique service at

lowest cost Therefore, all the organizational activities and functions such

as inventory updation, production scheduling, and sales reports be integrated among each other

New techniques like QFD( quality function development), JIT(just-in-time), and SPC (statistical process control) be used for TQM, also



IMPLICATIONS ON ORGANISATION(cont.)

To reduce Cycle Time the concept of Reengineering is being practised by the companies to integrate engineering activities like manufacturing, marketing, and support operations, resultantly the products get to market faster with few defects

Although, information is critical for TQM but access to better quality of information is a key to success


DECISION MAKING Previously, most of the time of management was spent on sharing of info with subordinates, bosses and different tiers thus leaving little time for the middle management to interact with their customers. However the availability of requisite data base helps the senior as well as middle management to take prompt decisions , leaving time for customers, for innovation & improvement and change ‘’ Wallace used its Quality data’’ to improve the following: On-the-Job Training Teams Sales Performance Electronic Data Interchange Customer Base Inventory Trends Accounts Receivable


Strategic Information System Strategic planning and its implementation is important with the integration of

MIS The basic requirement of a strategy is environmental positioning to meet

customers requirement, which is acquired through information Accordingly, each function and process is organised through acquired

information which contributes to achieve competitive advantage Thus, the concept of value chain is put in place, keeping in mind that

competitiveness is neither decided by industry nor by company, but rather by customer

Therefore, all the process and function can be integrated as follows to identify the right course of action

a) Identify the market segment in which you want to compete b) Use data collection & analysis to define the customers requirement in the chosen segment


Strategic Information System (cont.) c. Translate these requirements into major design parameters to

develop, produce, deliver, and service the product that meets the customers requirements. (Major purpose of function & process data)

d. Complement the primary processes with support activities such as planning , finance & accounting, MIS, personnel, etc.

e. Subdivide the organisation design parameters into the process(function & activities) that are necessary to achieve the quality differentiation

f. Design the information requirement necessary to manage each process and to integrate all processes horizontally


Environmental Analysis• Strategy formulation requires an analysis of different environments like

general, industry and competitors• Competitive information is valuable but is difficult to obtain• The min. information needed is the study of their key success factors of

competitors in selected segment of market• Which usually include:

Product line breadthProprietary advantagesAge and location of facilityCash throw-off

R & D adv and position

Growth rate Distribution effectiveness Price competitiveness Capacity and productivity Value added


Environmental AnalysisAdditionally, Porter has identified the information needed to position an industry in a chosen market, the info required is as under :-1. Intensity of rivalry2. Bargaining power of buyers3. Bargaining power of suppliers4. Threat of substitution5. Threat of new entrant Nevertheless , the sole purpose of caring out the entire exercise is to define and measure the concept of quality of product and services


Organizational linkages for obtaining information1. One of the primary source of measuring product’s field

performance is Service Calls. This is an important source of info for designing, engineering, manufacturing, sales, and services

2. Cross functional MIS helps to track down processes at different stages through cross-functional linkages, such as

3. From design - preproduction planning - vendor management - incoming material - in-process control - finished goods to customer services

4. So, each stage of process shares info of their activities with other stages. The linkage concept focuses on both internal as well as external customers


ADVANCED PROCESSES/SYSTEMS1. Statistical quality control – It involves the use of statistical

techniques, such as control charts, to analyse a work process or its outputs.( A process is a set of causes and conditions and a set of steps comprising an activity that transforms inputs into out puts )

2. Statistical process control- Provide information on how productivity and quality can be continuously improved through problem identification(means finding and fixing mistakes)


ADVANCED PROCESSES/SYSTEMS3. Just-in-time- Reduce inventory cost, production time, and

space requirements4. Computer integrated manufacturing- lower cost, shorten

lead time, and improve quality based on information sharing by linking management and financial information system, departmental computing, process management systems, and factory systems for controlling machinery and manufacturing processes


ADVANCED PROCESSES/SYSTEMS5. Quality function deployment - Integrate the three dimensions: a. Company- wide quality b. Focus on customers requirement, and c. Translation of quality perceptions into product characteristic and then into the manufacturing process


INFORMATION AND THE CUSTOMER• Most companies lack the processes that ensure efficient flow of

information on customer demands and related information• According to the principles of TQM unless the loop is closed with

customer feedback the operating process does not complete• The objective is to monitor competitive success that accompanies

after the sale & services, spare parts, or distribution• The bottom line is to place a system which measures the pulse of

the market and the customer base• This input then helps in decision making regarding operating plan,

organizational implications, and follow-up control


Designing an Information System • Not system analysts, the user to define information needs• Before designing , two critical steps must be taken

– define system objectives and – information needs

• The objectives be stated in more specific terms e.g. reduce final inspection in the production process to the point of elimination

• The next step is to define, what information is required to achieve objective? In this regard most of the successful companies benchmark their performance in key areas against world class quality leaders

information analysis & technology. information is the critical enabler of tqm conversely, this...

Documents