Thursday, March 18, 2010

BPM-TQM-WTH???

Business Process Management or BPM is a management approach centered to the clients' needs and wants. In any enterprise, it is the client who gives life to a firm so it is only proper that firms give a special attention to their clients' needs even if it means that the compay is opt to loss a lot of revenues. The client always come first.

Business Process Management as the name suggest is a process. And every process there are steps or stages. Same is true with BPM. It undergoes Design, Modelling, Execution, Monitoring, and Optimization. First two stages -- Design and Modelling -- is closely related. A firm wanting to adapt a new BPM should establish a strong framework for this system. Design establishes the projected outcome of the system taking into account the existing problems the firm experiences and might experience with this new approach. Modelling on the other hand tests this theoretical design by adding varables. Simply put, modelling is where the design is scrutinized with "what-ifs" like "what if I adapt this will my production increase?" things like that. Execution is bringing these models into the field. Monitoring involves the evaluation of the process whether it is beneficial. One way to evaluate if a system is beneficial is if it outweighs the cost. Optimization is using the information acquired from monitoring to further improve the system. It also looks back to the model and if it really lived up to its purpose.

One type of BMP is TQM or Total Quality Management. From the word suggest it is centered to the clients' need giving emphasis to the product's quality. In business, quality is defined relative to the customer's expectations. Quality can be based on ease of use, durability, design, or other features the customer is looking for in the product depending on the customer. As a firm, it is the main goal to satisfy all these qualities to expand the market for their products across different groups. A good example is the i-touch. It's main target is the adolescence market but with other features like massive memory, GPS, etc, the market for i-touch is extended to the older generation.

One remarkable feature of TQM is it will go through tough measures just to satisfy or rather keep the patronage of their clients as it was in Toyota where they recalled millions of vehicles because of the problem in their car's accelerator. This defect caused a major accident in US which called for a massive recall. Fear of being sued further and for moral responsibilities, Toyota had to recall the cars which, for sure, caused them a lot. On one hand, it is a way of the company to cut their losses because cost of defending from suites is limitless and lives that can be lost in accidents are priceless.

No comments:

Post a Comment