Table of Contents

Introduction 3

Overview: 5

ELEMENTS OF A TOTAL QUALITY MANAGEMENT PROGRAM: 7

Control Charts. 11

Corrective Action 14

Performance Reports 14

Problem Solving 14

Continuing Emphasis 14

Principles Of TQM : 19

TQM Implementation Approaches 20

Advantages of Total Quality Management: 21

Disadvantages of Total Quality Management: 21

Core Process Engineering (CPR) 22

Major Steps in CPR: 23

Core Process Reengineering Cycle: 24

NEED FOR RE-ENGINEERING – WHEN AND WHY: 27

METHODOLOGY: 28

Problems that effect CPR: 30

CASE STUDY- M & G PENSIONS: 31

Alternative techniques to CPR 37

Reengineering Recommendations 41

CONCLUSION: 42

Abstract

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

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

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

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

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

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

Unfortunately, the influence of quality management concepts has not been felt in most American companies in the base metals and precious metals industries. A large majority of senior management personnel in these industries is unfamiliar with essential quality management concepts such as statistical process control (SPC). Based on the thrashing American manufactured products have taken in world markets, one must expect that products from the chemical and metals process industries will be next unless the change to "Total Quality Management" is made soon.

Core Processes are simply a set of activities that transform a set of inputs into a set of outputs (goods or services) for another person or process using people and tools. We all do them, and at one time or another play the role of customer or supplier.

You may see Core Processes pictured as a set of triangles as shown below. The purpose of this model is to define the supplier and process inputs, your process, and the customer and associated outputs. Also shown is the feedback loop from customers.

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

Core Process reengineering is also known as CPR, Core Process Redesign, Business Transformation, or Core Process Change Management.

CPR relies on a different school of thought than continuous process improvement. In the extreme, reengineering assumes the current process is irrelevant - it doesn't work, it's broke, forget it. Start over. Such a clean slate perspective enables the designers of Core Processes to disassociate themselves from today's process, and focus on a new process. In a manner of speaking, it is like projecting yourself into the future and asking yourself: what should the process look like? What do my customers want it to look like? What do other employees want it to look like? How do best-in-class companies do it? What might we be able to do with new technology?

Such an approach is pictured below. It begins with defining the scope and objectives of your reengineering project, then going through a learning process (with your customers, your employees, your competitors and non-competitors, and with new technology). Given this knowledge base, you can create a vision for the future and design new Core Processes. Given the definition of the "to be" state, you can then create a plan of action based on the gap between your current processes, technologies and structures, and where you want to go. It is then a matter of implementing your solution.

In summary, the extreme contrast between continuous process improvement and Core Process reengineering lies in where we start (with today's process, or with a clean slate), and with the magnitude and rate of resulting changes.

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

TRADITIONAL APPROACH TO QUALITY CONTROL

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

The approach to quality control has usually followed this sequence:

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

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

3. Ship products meeting specifications and reject products not meeting the specifications.

This sequence is almost universally followed by arguments between the production department and quality control department over the amount of product rejected.

In operations where quality is not a concern at the point of sale, the sequence generally skips step numbers two and three in the list above.

In the traditional management approach, quality control is generally thought to result in higher marginal costs of production. Tighter control requires more scrutiny, which requires more inspectors. Tighter controls also result in additional production costs because productivity is decreased as a result of additional controls in the production process. Where quality control is not practiced, costs would be the least since these controls would not be required. For this reason, operating managers, quite naturally,

are most interested in avoiding additional emphasis on quality. This is particularly true when there is no requirement for quality control at the point of sale.

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

TOTAL QUALITY MANAGEMENT: A NON-TRADITIONAL APPROACH

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

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

VARIATION

There are two types of variation: random and non-random. Random variation results from inherent characteristics of the production process. A reagent metering feeder will vary the quantity of reagent metered per unit time around some mean value. The amount of the random variation will be a function of the type of feeder, clearances in its construction, stability of the control loop, type of variable speed drive, etc. Non-random variation results from influences from outside the process system, which are generally under the operator’s control. Such non-random variation might result from equipment disrepair, changes in feed characteristic without appropriate adjustment to the system by the operator, or other influences on the process.

The first requirement for improving quality (and costs) is an understanding of the nature of variation, and the means to determine the degree of random and non-random variation in the production process. The second requirement is to take appropriate action to reduce non-random variation. The third requirement is to take appropriate action to reduce the random variation. Actions effective in minimizing non-random variation are useless and counterproductive when used to reduce random variation.

ELEMENTS OF A TOTAL QUALITY MANAGEMENT PROGRAM :

The following elements are essential in any successful quality management program:

1. Management commitment to total quality management. 2. Training in simple statistical techniques, the nature of samples, collecting data,

variation and the program to be implemented. 3. Organization structure emphasizing work group authority and accountability for

results. 4. Statistical process Control (SPC) system to monitor and control process variable

variation. 5. Formal performance reports based on output from the SPC system. 6. Systemized team approach to problem solving. 7. Continuing emphasis on reducing variation in the product process.

Management Commitment

To be effective the total quality management program must be executed by front line shift personnel. For this to work, however, top management must be totally committed to the program. There have been many instances where senior managers gave lip service to implementing quality programs simply to keep customers happy, or where managers wanted to go with the latest management fad. In these cases the program is doomed to failure. The system, when implemented, will cause problems to surface. Many of these problems will require decisions and actions by senior management. If such actions are not forthcoming, employees quickly become disillusioned with the program.

We recommend that a quality management manual is produced with the company’s commitment to quality spelled out in the introduction and signed by the senior site executive. This commitment must include sufficient participation and training for site personnel to ensure their understanding of the program.

Training and Participation

Statistical process control will require operators, using charts prepared by engineering personnel, to compute means and ranges based on measurements of groups of data. These data will then be plotted on control charts and used to assess variation in the process. The plotted data will indicate the degree of random and non-random variation.

Following initial training in using the SPC approach, work teams consisting of operators, foreman, and metallurgists, working together as a team, establish the control methods for each plant area.

Organization Structure

While the traditional organization must remain intact, the quality management system will be driven from the bottom up. The primary responsibility of foremen will be to train operators, provide technical advice on data collected, and ensure non-random variation is acted upon immediately and to work with more senior management personnel in the continuing effort to reduce random variation.

The primary responsibility of more senior managers will be to provide employees with a process control system and necessary training in its use. Senior management is also responsible to participate in problem solving teams and to make improvements to the process, where necessary, to reduce random variation.

Accountability for results will be pushed to the lowest possible level. Control charts will be used by the operators to assess performance over the short term. Summary performance reports prepared from the statistical process control system will be used to assess performance over the longer term. Operators must be given the necessary authority and latitude to make required adjustments to reduce non-random variation indicated by the control charts. Operators, close to the work, are also likely to have good suggestions for process system modifications necessary to reduce random variation.

Statistical Process Control (SPC)

The objective of SPC is to identify non-random variation in a critical process variable as soon after it occurs as possible. It also allows for identifying the degree of random variation that is an inherent part of the process itself.

The following steps are used to construct an SPC program:

1. Divide the production operation into major process areas. A major process area usually has the following characteristics:

• A major function with measurable output,

• Contains equipment dedicated to a single task, and

• Has an assigned regular work crew.

Examples might include a grinding circuit, smelting furnace or flotation circuit.

2. Identify each unit operation in the process control area. A unit operation normally has the following characteristics:

• A specific operation performed in the process area, and

• Usually results in a physical or chemical change to the feed or product material. Examples might include a ball mill, cyclone or filter.

3. Identify the critical process variables for each unit operation. A critical process variable usually has the following characteristics:

• A parameter significantly affecting the performance of the unit operation, and

• A measurable and controllable quantity for which someone can be held accountable.

Examples of process variables might include temperature, density, size, or flow rate.

A process control chart illustrating the process areas, unit operations and variables is included in the quality management manual. Accountabilities are also shown for control of each unit operation.

A control standard is then developed for each process variable. The control standard establishes the method and accountability for control. The format for a control standard can be flexible, but might include the following:

• Variable to be controlled

• Accountability

• Definitions*

• Process Standard

• Reason for Control

• Measurement

• Reporting*

• Control Chart*

• Operating Procedure

• Corrective Action

• Disposition of non-compliant product*

*Where applicable

The control standard is included in the quality management manual. Ideally, the control standards would be a part of an overall set of manuals for the plant which would also include a process description, safe job procedures, etc.

Control Charts. The heart of the SPC system is the control chart. There are several types of control charts, each used for a specific application. The most common chart used for process applications is the x bar and R chart. As noted by Ishikawa (1971), the x bar and R chart is actually two charts in one. The x bar portion of the chart mainly shows any changes in the mean value of the process, while the R portion shows any changes in the dispersion of the process as a function of time.

X bar points are calculated by taking the mean of from two to six sequential measurements of the variable. If only six measurements were taken during a shift or a full day, they would represent a plotted point for each shift or day. Otherwise, they might represent the mean of from two to six measurements taken during production of a lot, or during a period of time.

The R points represent the range of the highest to the lowest measurement in the same group of two to six measurements. Figure 1 below, from Ishikawa (1971), illustrates a typical x bar and R chart.

The central line, represented by x bar, bar is the mean of the x bars taken over a long period (minimum of 100 sample measurements). The R bar represents the mean of the ranges taken over a long period (minimum of 100 sample measurements). Upper and lower control limits (UCL and LCL) are calculated based on simple published statistical formulas. Again, from Ishikawa:

SPC FORMULA CONSTANTS N A2 D4

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

It is important to recognize that the control limits have nothing to do with customer specifications or production requirements. They represent plus and minus three standard deviations around the mean, or x bar, bar central line. As has been said by Deming (1982), "…it is the process talking to us." Randomly plotted points within the x bar or R chart control limits represent random variation inherent in the process itself. Points outside the control limits, or a non-random pattern inside the control limits,

represents non-random variation for which the operator must find the cause. Examples of non-random variation include:

• Any points outside of the control limits.

• A generally upward or downward trend (6 or 7 successive points) with only one crossing of the central line.

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

• A recurring pattern (cycling).

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

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

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

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

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

Problem Solving In some instances, correction of non-random variation may be out of the operator’s control and require problems to be solved. In almost all cases, reducing random variation will require the solving of problems outside the operator’s control. In these instances, establishing a team consisting of operators, supervisors, engineers and in many cases suppliers is the most effective way to achieve a solution. The reduction of random variation, generally represented by the area within the chart’s control lines, will require an improvement to the process control system.

The team approach must be applied through a systematic problem solving methodology with specific assignments for additional information or experiments made to appropriate team members. Technical personnel can apply their knowledge of experiment design to facilitate the information gathering.

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

How To Measure TQM Success?

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

TQM implementation has been in my mind for a long time and I wondered how to measure the success of TQM implementation in an organization. If we take

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

There is no doubt that measuring TQM implementation is success rate is of interest with all if not most leaders. Otherwise, how would you as a leader know the effort put into implementing TQM is really worthwhile, more so when a lot of resources such a money, manpower etc are deployed to support the implementation of a TQM initiative.

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

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

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

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

Customer-driven quality

TQM has a customer-first orientation. The customer, not internal activities and constraints, comes first. Customer satisfaction is seen as the company's highest priority. The company believes it will only be successful if customers are satisfied. The TQM

Company is sensitive to customer requirements and responds rapidly to them. In the TQM context, `being sensitive to customer requirements' goes beyond defect and error reduction, and merely meeting specifications or reducing customer complaints. The concept of requirements is expanded to take in not only product and service attributes that meet basic requirements, but also those that enhance and differentiate them for competitive advantage.

Each part of the company is involved in Total Quality, operating as a customer to some functions and as a supplier to others. The Engineering Department is a supplier to downstream functions such as Manufacturing and Field Service, and has to treat these internal customers with the same sensitivity and responsiveness as it would external customers.

TQM leadership from top management

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

Continuous improvement

Continuous improvement of all operations and activities is at the heart of TQM. Once it is recognized that customer satisfaction can only be obtained by providing a high-quality product, continuous improvement of the quality of the product is seen as the only way to maintain a high level of customer satisfaction. As well as recognizing the link between product quality and customer satisfaction, TQM also recognizes that product quality is the result of process quality. As a result, there is a focus on continuous improvement of the company's processes. This will lead to an improvement in process quality. In turn this will lead to an improvement in product quality, and to an increase in customer satisfaction. Improvement cycles are encouraged for all the company's activities such as

product development, use of EDM/PDM, and the way customer relationships are managed. This implies that all activities include measurement and monitoring of cycle time and responsiveness as a basis for seeking opportunities for improvement.

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

Fast response

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

Actions based on facts

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

Employee participation

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

A TQM culture

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

Product development in a TQM environment

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

Product development in a TQM environment is customer-driven and focused on quality. Teams are process-oriented, and interact with their internal customers to deliver the required results. Management's focus is on controlling the overall process, and rewarding teamwork.

Principles Of TQM :

1- Be Customer focused:

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

2-Insure Total Employee Involvement:

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

3- Process Centered:

Fundamental part of TQM is to focus on Process thinking.

4- Integrated system:

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

5- Strategic and systematic approach:

Strategic plan must integrate quality as core component.

6- Continual Improvement:

Using analytical and creative thinking in finding ways to become more effective.

7- Fact Based Decision Making:

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

8- Communication:

Communication strategy, method and timeliness must be well defined.

TQM Implementation Approaches

No one solution is effective for planning and implementing TQM concepts in all situations.

Following are generic models for implementing total quality management theory:

1- Train top management on TQM principles.

2- Assess the current: Culture, customer satisfaction, quality management system.

3- Top management determines the core values and principles to be used and communicate them.

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

5- Identify and prioritize customer needs and determine products or service to meet those needs.

6- Determine the critical processes to produce those products or services.

7- Create process improvement teams.

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

9- Integrate changes for improvement in daily process management and standardizations take place.

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

11- Constant employee awareness and feedback on status are provided and a reward/ recognition process is established.

Strategies to develop TQM

1-TQM elements approach:

Take key Core Process and use TQM Tools to foster improvement.

e.g.: quality circles, statistical process control, taguchi method, quality function deployment.

2 - The guru approach:

Using the guides of one of the leading quality thinker.

3- Organization model approach:

The organization use Benchmarking or MBNQA as model for excellence.

4- Japanese total quality approach:

Companies want to get deeming prize use deeming principles.

Advantages of Total Quality Management:1. Improves reputation- faults and problems are spotted and sorted quicker (zero defects)

2. Higher employee morale– workers motivated by extra responsibility, team work and involvement in decisions of TQM

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

4. Quality Control inspectors

Disadvantages of Total Quality Management:1. Initial introduction costs- training workers and disrupting current production whilst being implemented

2. Benefits may not be seen for several years.

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

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

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

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

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

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

Following steps should be followed to implement CPR.

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

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

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

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

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

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

Basic elements of business process:

• Motivation to perform

• Data gathering, processing and storing

• Information processing

• Checking, validating and control

• Decision making

Process of CPR Exercise:

• Recast people organization into process organization

• Segregate process by customer type-internal and external

• Identify process by:

1. Impact on customer

2. High decision incidence

3. High information exchange

4. High incidence of checks, control and validations

5. High knowledge base

• Determine the value to the customer in terms of:

1. Price/Cost

2. Quality

3. Service

4. Delivery

• Identify the enablers of redesigning

• Set a benchmark for achievement

• Rank the process by:

1. Feasibility

2. Cost

3. Impact on value to the customer

• Appoint the team for each process

• Monitor the process of re-engineering

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

The receipt is against the valid purchase order

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

The terms and conditions of supplies are fully met

The value declarations are correct and complete

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

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

Relevance of Information Technology:

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

The role of information technology

Information technology (IT) has historically played an important role in the reengineering concept. It is considered by some as a major enabler for new forms of working and collaborating within an organization and across organizational borders.

Early CPR literature identified several so called disruptive technologies that were supposed to challenge traditional wisdom about how work should be performed.

• Shared databases, making information available at many places

• Expert systems, allowing generalists to perform specialist tasks

• Telecommunication networks, allowing organizations to be centralized and decentralized at the same time

• Decision-support tools, allowing decision-making to be a part of everybody's job

• Wireless data communication and portable computers, allowing field personnel to work office independent

• Interactive videodisk, to get in immediate contact with potential buyers

• Automatic identification and tracking, allowing things to tell where they are, instead of requiring to be found

• High performance computing, allowing on-the-fly planning and provisioning

In the mid 1990s, especially workflow management systems were considered as a significant contributor to improved process efficiency. Also ERP (Enterprise Resource Planning) vendors, such as SAP, JD Edwards, Oracle, PeopleSoft, positioned their solutions as vehicles for Core Process redesign and improvement.

NEED FOR RE-ENGINEERING – WHEN AND WHY:

Each organisation must determine itself when it is appropriate for them to reengineer. Reengineering should be done only if it can help in achieving an enhanced strategic position. Some strategic indicators that require reengineering include

1. Realisation that competitors will have advantage in cost, speed, flexibility, quality or service

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

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

4. Core operating processes are based on outdated assumptions/technologies.

5. Strategic business objectives seem unreasonable.

6. Change in market place in the form of

• Loss of market share

• New basis of competition/new competitors

• New regulations

• Shorter product life cycles

• New technologies in play.

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

However, if the organisation operates with old models instead of new technologies and approaches used by others, reengineering may be urgently needed. Even if technical performance is adequate, other improvements may be needed – such as training, organisational change, leadership development etc. In such circumstances also reengineering is required.

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

1. Envision new processes

1. Secure management support

2. Identify reengineering opportunities

3. Identify enabling technologies

4. Align with corporate strategy

2. Initiating change

1. Set up reengineering team

2. Outline performance goals

3. Process diagnosis

1. Describe existing processes

2. Uncover pathologies in existing processes

4. Process redesign

1. Develop alternative process scenarios

2. Develop new process design

3. Design HR architecture

4. Select IT platform

5. Develop overall blue print and gather feedback

5. Reconstruction

1. Develop/install IT solution

2. Establish process changes

6. Process monitoring

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

2. Link to continuous improvement

HOW TO IMPLEMENT A CPR PROJECT

The best way to map and improve the organization's procedures is to take a top down approach, and not undertake a project in isolation. That means:

Starting with mission statements that define the purpose of the organization and describe what sets it apart from others in its sector or industry.

• Producing vision statements which define where the organization is going, to provide a clear picture of the desired future position.

• Build these into a clear business strategy thereby depriving the project objectives.

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

• Producing key performance measures to track progress.

• Relating efficiency improvements to the culture of the organization

• Identifying initiatives that will improve performance.

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

"When I wrote about "Core Process redesign" in 1990, I explicitly said that using it for cost reduction alone was not a sensible goal. And consultants Michael Hammer and James Champy, the two names most closely associated with reengineering, have insisted all along that layoffs shouldn't be the point. But the fact is, once out of the bottle, the reengineering genie quickly turned ugly."

Michael Hammer similarly admitted that

"I wasn't smart enough about that. I was reflecting my engineering background and was insufficient appreciative of the human dimension. I've learned that's critical."

Other criticism brought forward against the CPR concept include,

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

2. Exaggerated expectations regarding the potential benefits from a CPR initiative and consequently failure to achieve the expected results.

3. Underestimation of the resistance to change within the organization.

4. Implementation of generic so-called best-practice processes that do not fit specific company needs.

5. Over trust in technology solutions.

6. Performing CPR as a one-off project with limited strategy alignment and long-term perspective.

7. Poor project management.

CASE STUDY- M & G PENSIONS:

• Client Overview

Since M&G was established in 1931 they have provided investment products for clients in the Bonds and Equities markets. Always at the forefront of investment thinking they strive to provide the best Investment opportunities for their clients.

• Requirement

Core Process reengineering for the production of product fact sheets

• Client Issue

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

• Analysis

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

• Approach

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

• Deliverables

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

• Improvements

• Cost reduction

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

• Interaction and account management from the new supplier

• Greater flexibility of service

• Full track and trace on every order or item

• Reduction in customer complaints with subsequent improvement in customer satisfaction

• Processes

• Implementation of their strategic outsourcing process and organisational design

• Procurement in line with required service level agreements

• Fully detailed project implementation plan

• Business Scope:

To source an alternative supplier for M & G’s existing requirements who could guarantee:

• Reduced turnaround times and maintain high quality products

• Reduced costs for emergency one-off print runs

• Account management to listen and understand M & G requirements

Mahindra & Mahindra

M&M's Problem Plants

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

The reason: highly under-productive, militantly unionized, and bloated workforces. The company had over the years been rather lenient towards running the plants and had frequently crumbled under the pressure of union demands. The work culture was also reportedly very unhealthy and corruption was widespread in various departments.

Alarmed at the plant's dismal condition, Chairman Keshub Mahindra tried to address the problem by sacking people who allegedly indulged in corrupt practices. M&M also tried to implement various voluntary retirement schemes (VRS), but the unions refused to cooperate and the company was unable to reduce the labor force.

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

The program, developed with the help of the UK-based Lucas Engineering Systems, was first implemented on an experimental basis at the engine plant in Igatpuri. Simultaneously, an exercise was initiated to assess the potential benefits of implementing CPR and its effect on the unions.

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

Mahindra & Mahindra Ltd. (M&M) was the flagship company of the Mahindra group, one of the top ten industrial houses in India. The company's history dates back to 1945, when two brothers, J.C.Mahindra and K.C.Mahindra, decided to start a business of general-purpose utility vehicles. The brothers formed a company, Mahindra & Mohammed Ltd., in association with their friend Ghulam Mohammed. In October 1947, the first batch of 75 jeeps was released for the Indian market. In 1948, the company was renamed Mahindra & Mahindra Ltd. Over the next few decades, the group promoted many companies in areas as diverse as hotels, financial services, auto components, information technology, infrastructure development and trading to name a few.

Though M&M had established itself in the markets and was among the leading players in many of the segments it operated in, it realized that some of its businesses were not closely related to its core business. This realization marked the beginning of the biggest change exercise since the company's inception.

In 1994, a major restructuring exercise was initiated as part of a CPR program. M&M introduced a new organizational model, in which various divisions and companies were regrouped into six distinct clusters of related businesses, each headed by a president.

M&M's core activities, automotive and tractors were made autonomous business units. The other activities of the group were organized into infrastructure, trade and financial services, telecommunication and automotive components. According to company sources, the whole exercise was intended to develop a conceptual map to provide direction for the future growth of various business lines. It was decided that, in future, the group would confine its expansion to the identified thrust sectors.

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

The plants were situated at Kandivili (MUVs and Tractors), Nasik (MUVs), Zaheerabad (LCVs, Voyager, three-wheelers), Igatpuri (Engines) and Nagpur (Implements and tractors)...

M&M's Experience with CPR

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

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

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

The Future

Summing up the company's CPR experience, Anand Mahindra said, "Let me put it in a simple way. If we have facilities in Kandivili today, which are not just surviving but thriving, it is all due to CPR...

Methodology of a CPR project implementation / alternative techniques

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

Selection of the strategic (added-value) processes for redesign. Simplify new processes - minimize steps - optimize efficiency -.(modelling). Organize a team of employees for each process and assign a role for process

Coordinator.

Organize the workflow - document transfer and control.

Assign responsibilities and roles for each process.

Automate processes using IT(Intranets, Extranets, Workflow Management)

Train the process team to efficiently manage and operate the new process

Introduce the redesigned process into the business organizational structure

Most reengineering methodologies share common elements, but simple differences can have a significant impact on the success or failure of a project. After a project area has been identified, the methodologies for reengineering Core Processes may be used. In order for a company, aiming to apply CPR, to select the best methodology, sequence processes and implement the appropriate CPR plan, it has to create effective and actionable visions. Referring to 'vision' we mean the complete articulation of the future state (the values, the processes, structure, technology, job roles and environment) For creating an effective vision, five basic steps are mentioned below. - The right

combination of individuals come together to form an optimistic and energized team - clear objectives exist and the scope for the project is well defined and understood - the team can stand in the future and look back, rather than stand in the present and look forward - the vision is rooted in a set of guiding principles. All methodologies could be divided in general 'model' stages:

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

The Diagnosis stage: documentation of processes and sub-processes takes place in terms of process attributes (activities, resources, communication, roles, IT and costs). The Redesign stage: new process design is developed by devising process design alternatives and through brainstorming and creativity techniques.

The Reconstruction stage: management technique changes occur to ensure smooth migration to the new process responsibilities and human resource roles. The Evaluation stage: the new process is monitored to determine if goals are met and examine total quality programs.

Alternative techniques to CPR

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

Expected Results / Benefits

The expected results for a company that implements Core Process reengineering are the following:

Reallocation of jobs and processes so as to be combined into fewer, to be executed in natural order, simultaneously and by the least possible number of employees.

Reorganization of the company's structure (downsizing) and employee empowerment.

Jobs and processes become flexible so as to be executed according to the needs of each case, company's and customer's need's (hybrid centralized/decentralized operations)

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

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

Characteristics of firms and service providers

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

They are objective and immune to internal politics. They have followed the process before.

They bring information and best practices from other companies.

They are good communication paths between front line workers and customers, and

The leaders of the company or organization.

Consultants, besides their beneficial qualities, can also unintentionally create barriers by: having the solution being viewed as "theirs" and not "yours", and taking too strong a lead role and disengaging the organization.

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

a strong facilitator and experienced practitioner who brings a methodology with them.

a team member; can be an objective and unbiased contributor to the solution;

a subject-matter expert with knowledge of performance levels and best practices of similar organizations and processes; able to perform specific tasks for the team.

APPLICATION

Where the technique has being applied

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

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

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

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

Types of firms / organizations that CPR can be applied

BRP could by implemented to all firms (manufacturing firms, retailers, services, etc.) and public organizations that satisfy the following criteria:

Minimum Number of employees: 20 (at least 4 in management positions). Strong management commitment to new ways of working and innovation.

Well formed IT infrastructure (requirements are presented in paragraph 2.4).

Core Process Reengineering could be applied to companies that confront problems such as the following:

High operational costs Low quality offered to customers

High level of ''bottleneck" processes at pick seasons

Poor performance of middle level managers

Inappropriate distribution of resources and jobs in order to achieve maximum Performance, etc.

Critical Success Factors

Critical success factors when implementing e-Government programs with comprehensive CPR components include:

1) Well informed investment decisions

2) Effective engagement with stakeholders

3) Knowledge of the supplier marketplace

4) Knowledge of the delivery chain

5) Effective risk management

6) Knowledge about operations

7) Active management of intended outcomes and benefits

8) LEADERSHIP!

CPR - Methodology

1) Envision new processes

2) Initiate change

3) Process diagnosis

4) Process redesign

5) Reconstruction

6) Process monitoring.

Reengineering Recommendations

• CPR must be accompanied by strategic planning, which must address leveraging IT as a competitive tool.

• Place the customer at the center of the reengineering effort -- concentrate on reengineering fragmented processes that lead to delays or other negative impacts on customer service.• CPR must be "owned" throughout the organization, not driven by a group ofoutside consultants.• Case teams must be comprised of both managers as well as those will actually do the work.• The IT group should be an integral part of the reengineering team from the start.• CPR must be sponsored by top executives, who are not about to leave or retire.• CPR projects must have a timetable, ideally between three to six months, so that the organization is not in a state of "limbo".

CONCLUSION:

An intense customer focus, superior process design and a strong and motivated leadership are vital ingredients to the recipe for the success of any business corporation. Reengineering is the key that every organization should possess to attain these prerequisites to success. CPR doesn’t offer a miracle cure on a platter. Nor does it provide a painless quick fix. Rather it advocates strenuous hard work and instigates the people involved to not only to change what they do but targets at altering their basic way of thinking itself. In this paper we have attempted in evolving a structured approach to reengineering.

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

To be successful, Core Process reengineering projects need to be top down, taking in the complete organization, and the full end to end processes. It needs to be supported by tools that make processes easy to track and analyze. If you would like help with your CPR project the most direct benefit that companies derive from reengineering is significant in the process improvement (50 to 100%). Costs are lowered while speed, quality and service are dramatically improved. Unfortunately, reengineering seldom

makes a significant impact on the organization’s bottom line (only 20% of the time.) Reengineering has a greater chance of success if it is viewed as leading to growth and value creation. In addition, there are costs to reengineering that must be considered before deciding for such a right strategy for an organization.

To economically compete in the future, processing plants will need to take the next step in optimizing product quality and minimizing operating costs. This step cannot be taken without a commitment to total quality management incorporating statistical process control.