Page 253 - DMGT505_MANAGEMENT_INFORMATION_SYSTEM

Management Information Systems

Notes 13.3 Process Improvement

In addition to increasing organizational efficiency, companies are also changing their business
processes to improve the quality in their product, service, and operations. Many are using the
concept of TQM to make quality the responsibility of all people and functions within an
organization. TQM holds that the achievement of quality control is an end itself. Everyone is
expected to contribute to the overall improvement of quality- the engineer who avoids design
error, the production worker who sports defects, the sales representative who presents the
product properly to potential customers, and even the secretary who avoids typing mistakes.

Did u know? Full form of TQM
Total Quality Management

13.3.1 How Information System Contribute to Total Quality Management

TQM is considered to be more incremental than Business Process Reengineering (BPR) because
its effects often focus on marking a series of continuous improvement a rather than dramatic
bursts of change. Information systems can help firms achieve their quality goals by helping
them simplify products or processes, meet benchmarking standards, make improvement based
on customer demands reduce cycle time and increase the quality and precision of design
production.

Simplifying the Production Process

The fewer step in process the less time and opportunity for an error to occur.

Benchmarking

Setting strict standard for products, services, or activities and measuring organizational
performance against those standards.

Use Customer Demands as a Guide to Improving Products and Service

Improving customer service, making customer service the number one priority, will improve
the quality of the product itself.

Reduce Cycle Time

Reducing the amount of time from the beginning of process to its end (cycle time) usually
results in fewer steps. Shorter cycle mean that errors are often caught earlier in production (or
logical or design or whatever the function), often before the process is compete, eliminating
many hidden costs.

Improve the Quality and Precision of the Design

Computer-aided design (CAD) software has made dramatic quality improvements possible in
wide range of businesses form aircraft manufacturing to production razor blades.

248 LOVELY PROFESSIONAL UNIVERSITY