Page 118 - DMGT524_TOTAL_QUALITY_MANAGEMENT

Unit 8: Continuous Process Improvement

These processes, usually less than a dozen, are the major or core processes of the organisation. Notes
This activity is not a time consuming task, but it is difficult because it requires a shift in how we
think of ourselves. One goal here is to identify the process boundaries (where the process begins
and where it ends), which will help set the project scope for those processes that are to be
re-engineered.
In many cases, seeing the company from the customer’s point of view can help identify what
these high-level processes might be. At this point, it is helpful to begin thinking about potential
change levers which may lead to dramatic changes in the organisation’s processes.

Phase 4: Understand the Existing Process

Activities

Understand why the current steps are performed
Model the current process
Understand how technology is currently used
Understand how information is currently used

Understand the current organisational structure
Compare current process with the new objectives
Now that we know which process to re-engineer, we need to take a look at why we currently
perform the process the way we do. Understand is a key word here. We may not need to
scrutinize every detail of how we are performing the process – this effort has the potential to go
on indefinitely, sometimes referred to as analysis paralysis, which can weaken the momentum
needed to carry the project all the way to implementation. What we need to do is understand the
underlying reasons why the existing process is carried out the way it is, so that we can question
those assumptions during our re-engineering sessions later on. When we have the new process
objectives clearly defined (in Phase 3), we can measure our existing process in terms of the new
objectives to see where we are and how far we have to go.
Modelling the current process is an important part of this phase. It not only helps us to better
understand the existing process, but also helps with planning the migration from the old to the
new process and executing the physical transformation of personnel, organisational structures,
information requirements, and how technology is used. Information that should be included in
the models include process inputs (such as task times, data requirements, resources, demand,
etc.) and process outputs (such as data outputs, cost, throughput, cycle time, bottlenecks, etc.).

Understanding how and why the current processes use information is also important. Do staff
members have access to essential information? Are some business areas wasting time and effort
by creating duplicate information when it can be shared across organisational boundaries? Why
is technology used to support some tasks and not others? How effective are the current interfaces?
Are they easy to use, or are they counter-intuitive and thus inhibit the effectiveness of current
tasks? In what way does the existing process take advantage of technology, and in what way has
technology imposed artificial restrictions? We need to end up with an estimate of the current
cost, robustness, and functional value of each technology and information systems currently
being used.

Phase 5: Re-engineer the Process

Activities

Ensure the diversity of the re-engineering team

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