Process Management
A Quality Management System (QMS) is a set of coordinated activities, involves the business processes of an organization to achieve the objectives of the organizational quality policy and continuously improvement. From the various components of the QMS, the main or core components include, the resource management, time management, cost management, customer focus, continuous improvement and process management. However, one of the studies describes the core components include, the process management, performance measurement, information management and results including the audit of the metrics and processes. The ultimate objective of the process management is to get the requirements of the customer and provide services to the customers in a way that they get satisfied.
Work Processes: The work procedures in the process management include, diagnose (cost analysis, and prediction), process designing (cost evaluation of the alternate processes), implementing the processes and evaluating the processes with an objective of improvement. Keeping in view the requirements of the organization in which the QMS is to be implemented, the vital work processes that relate to the main competencies including the order processing, sales management, production planning, procurement processes and measurement of the processes, services and products.
Minimize Cost: The QMS is developed and implemented to reduce the operating cost by avoiding the material and time wastage, increasing market share and facilitate the training of the employees. The QMS facilitates the organization to satisfy customer’s requirements, hence, the range of loyal customer increase, which ultimately brings more profit for the organization. And ultimately, the product production increases, while the resources are utilized at a minimum, hence, the operating cost decreases.
Design Work Processes: In order to manage and design the work processes in the QMS, the organization is required to identify and specify the scope of the QMS, the terms used in the QMS are required to describe, specify the requirements of the organization and fix the responsibilities of the employees.
Control Processes: In order to control the work processes, the organization need to monitor and measure the business processes to know whether the employees follow the standards and operating procedures. And in the case of observing any deviation from the deployed processes by the employees are required to inform and train to follow the processes properly. The concept is supported in the studies of AT&T Bell Laboratories, as given below:
“A measurement is one way to understand how well a process is working and what a process is doing. This includes the process design, the selection, qualification, and motivation of the people who carry out the work and the tools, materials and information systems that are used.” (Beaumont, n.d)
Process Improvement: It is significant for the organization to improve the implemented processes. And process improvement is a continual procedure that can be implemented by reviewing the current deployed processes and identifying and removing the weaknesses. The processes have to be evaluated against the identified and specified process evaluation metrics.
Performance Measurement and Information Management
Performance measurement is a critical component of the QMS. The vital objectives of the performance management include, the development of a strong working relationship between employees and management, reducing the difficulties or issues of the employees, identifying the excellent performance and rewarding employees against their hard work. In order to manage the performance of the employees in an organization needs to implement the performance management processes include, the process planning, monitoring of the implemented processes and employees, improving the employees’ skills by providing training and supervision, rating the performance of the employees and rewarding the employees accordingly.
Performance Measures: The performance measures are developed as per the requirements of an organization. Generally, the performance measures can be from the six (6) general categories include, the efficiency, effectiveness, quality, timelines (meeting deadlines), safety and productivity. The performance should be measured as per the identified metrics to make it quantitative.
Performance Analysis and Review: The evaluation of the performance can only be done by analyzing and reviewing the performance of the people (employees), resources and processes. The data is collected, reviewed and analyzed to evaluate the performance so that the organizations can remain providing quality services. Moreover, the performance analysis and review can facilitate the organizations to develop strategic planning, strategies and policies.
Performance Improvement: In order to improve the performance, the organization is required to complete the above-given steps. For instance, the organization is required to identify the parameters to measure the performance, the data is collected as per the identified parameters, and analysis and review of the performance are performed. Keeping in view the results of the performance analysis and review, the weaknesses in the processes, employees and resources are identified. And in order to improve the performance, the organization is required to develop the strategies and policies. Moreover, the identified weaknesses should be removed by amending the processes, providing training to the employees and replacing or upgrading the resources.
Data, Information and Knowledge Management: The data represent raw facts and figures, facilitates to dig out the information and knowledge. The data, information and knowledge management is one of the core functions in the quality management system. The organization should manage the asset of information and knowledge management, in order to properly implement the quality management system. The QMS should enable the organization to provide the data and information in an effective and timely manner.
Management of Information Resources and Technology: The organization is required to manage the information technology resources in a way the services can be provided smoothly to the customers. In this regard, the organization should implement the information security standards to avoid the information breach.
Results
The measurements and evaluation of the processes, employees and resources facilitates the organizations to achieve the organizational goals and objectives. The organization is suggested to measure the metrics include the following:
Financial Performance: In financial performance measurement, it is recommended that the organization should measure the short and long term revenue, profit, growth, return over investment and financial risks.
Customer Satisfaction: To assess the level of customer satisfaction, the organization is required to conduct surveys to know the provision of services, reliability, performance, availability and usability.
Employee Satisfaction: The parameters for assessing the employee satisfaction include, but are not limited to the recruitment rates, job classification and employee turnover rates and complaints.
Process Control: The process control can be measured against the design change rates of the activity, sales order cycle time, information system availability and supplier performance.
Process Capability Prediction: The parameter examples of measuring the process capability prediction include, the accuracy of the cost estimation, schedule planning and resource planning.
Growth, Innovation and Learning: The estimation of revenue, profit and growth of new products, raise in profitability, defect reduction and cost reduction.
Reference
Beaumont, L. R. (n.d). Metrics – A Practical Example. Retrieved from: http://www.humiliationstudies.org/documents/Beaumontmetricsid.pdf