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Challenges for implementation of Total quality Management
Challenges for implementation of Total quality Management
Chapter 2 overview of business processes
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Business Process Management (BPM) is a method of controlling the processes in an organisation . BPM is utilised to ensure that an organisation is run as effective and efficient as possible with regards to costs profitability and production. BPM should be continuously monitored on an on-going basis. Methods of BPM include Total Quality Management (TQM), Cost of Quality Report (COQ) and Just-In-Time (JIT).
Just-In-Time (JIT) manufacturing is producing the required items, of the right quality, and in the exact quantities, precisely as they are needed (Minahan, 1997) . JIT “is a management philosophy focused on how the supply chain fits into the manufacturing process” (Greb, 2009) . JIT manufacturing focuses on reducing inventory held and the costs associated with holding inventory and increasing the quality of the products. JIT relies on close links between the manufacturer and its suppliers and also assumes that there will not be an unforeseen large increase in demand. Schonberger writes that “ The characteristics of JIT purchasing are few suppliers, nearby suppliers, frequent deliveries in small lot quantities, long term contract agreements and close relationships between buyers and suppliers” (Schonberger, 1983) Companies such as Dell, Harley Davidson, Toyota, Xerox and Hewlett Packard have all implemented some form of JIT.
JIT can result in lower costs associated with holding stock, an increase in floor space available, an increase in quality and reduction in deliver time to customers, which may lead to an increased level of customer satisfaction which in turn will lead to higher orders and a higher demand for products. However JIT is not suitable for all firms or industries and should only be implemented after serious considera...
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Hall, E. (1989) “Just-In-Time Management: A Critical Assessment”, The Academy of Management Executive (1987 – 1989) Vol 3 No 4 (Nov 1989) pg. 316.
Hall, E. (1989) “Just-In-Time Management: A Critical Assessment”, The Academy of Management Executive (1987 – 1989) Vol 3 No 4 (Nov 1989) pg. 317.
Hall, E. (1989) “Just-In-Time Management: A Critical Assessment”, The Academy of Management Executive (1987 – 1989) Vol 3 No 4 (Nov 1989) pg. 317
Minahan, T. (1997), “Toyota continues quest for true JIT excellence”, Purchasing September 1997; 123, 3, pg. 43