Total quality management versus business process re-engineering: A question of degree

Author(s):  
A Williams ◽  
J Davidson ◽  
S Waterworth ◽  
R Partington

An increasing number of manufacturing organizations are placing direct emphasis on operations improvement as a means of achieving competitive success. Small and medium enterprises (SMEs), however, generally lack the resources in capital, time and expertise to implement business process re-engineering (BPR), as has been advocated by a number of authors. This paper presents a comparative analysis of continuous improvement (CI) versus BPR approaches to operational change. Change implies risk, and SMEs naturally require a means for establishing levels of uncertainty and net return. Equally, the performance measures adopted by these two (respectively, bottom-up and top-down) approaches differ significantly and normally defy direct comparison. A dynamic systems simulation is developed from a case study within the plastics industry and is used to evaluate the implementation of either varying levels of improvement or natural processes in the case of BPR. Although it is an industry-specific model, the approach raises several implications. Of specific interest is the trade-off between performance improvement and cost, time frame and risk. Attention is also focused on evaluation of the threshold at which the two philosophies overlap and the point at which companies may make the transition between the two philosophies. The paper goes on to evaluate the decrease in the return of investment (ROI), as improvements impinge on other stages within the process, creating up- and downstream bottlenecks. It also evaluates the level of a single ‘natural process’, as a means of costing BPR implementation. The paper concludes with the definition of ROI curves, which are intended to inform SMEs in the selection of appropriate improvement strategies.

2017 ◽  
Vol 38 (5) ◽  
pp. 18-26
Author(s):  
Gaël Le Floc’h ◽  
Laurent Scaringella

Purpose Literature on business models (BMs) has grown ve ry rapidly since the beginning of the twenty-first century, and although the theoretical and empirical literature has developed significantly, the number of practical and management-oriented studies remains relatively low. A recent debate in the field has focused on the definition of BM invariants: sensing customer needs, creating customer value, sustaining value creation and monetizing value. Extant empirical studies have mainly focused on multinational enterprises (MNEs) and successful BMs; however, this study concentrates on the failure of BMs in the case of small and medium enterprises (SMEs). An important source of a BM’s failure is the misalignment between MNE and SME involved in an acquisition. Design/methodology/approach Looking through the lens of the four BM constants, the aim of this study is to examine the case of the acquisition Domestic Heating (an SME) by Ventilair (an MNE). Findings Although both separate entities were achieving good results and each had a specific BM, the acquisition produced poor results mainly due to the misalignment of the two BMs. The findings lead the authors to make recommendations to practitioners on avoiding BM misalignment during an acquisition. Originality/value The authors encourage practitioners to enhance communication, promote organizational experiments, acknowledge specificities of both entities, foster employee commitment and ensure homogeneity in IT system usage.


2019 ◽  
Vol 10 (2) ◽  
pp. 129-136
Author(s):  
Safitri Lamsah ◽  
Zakky Zamrudi

Abstract Understanding the schemes of Small and Medium Enterprises (SME’s) managerial capability is becoming important aspects today. Implementing proper strategies and internal policy may create a significant change in SME’s performance. Total Quality Management (TQM) has been being a one of specific measurement on organizational performance. This research was proposed to understand the factor that can affect the TQM’s performance in SME’s by identifying the two factors that can change it. Based on the recent studies, the developed model was employed PLSSEM to analyze the data by total respondent 95 respondent consist of owner and manager. The sample was taken in the area of Sasirangan SME’s in Banjarmasin, Kalimantan Selatan province, Indonesia. Sasirangan is a local fabric developed by its ancestor. The population of Sasirangan SME’s was huge in amount. The results of these studies indicate that both motivation and employee performance can increase the TQM in the SME’s which one of them has a more significant effect. The complete description of finding in this research will be discussed in this research.


2019 ◽  
Vol 3 (2) ◽  
pp. 155-163
Author(s):  
Yolanda Masnita (Universitas Trisakti - Indonesia) ◽  
Abdul Rahman (Universitas Trisakti - Indonesia) ◽  
Andhika Veraldy (Universitas Trisakti - Indonesia)

Abstract In strategy competition, innovation must be clear and precise in accordance with consumer demand and expectations. Limited organizational resources require organizations to manage innovation clearly. The company's efforts to change or increase product output, both from its processes and services, are interpreted as innovation. This study aims to examine the effect of total quality management on company performance with two approaches, additional innovation and radical innovation. The hypothesis was tested from data collected from 108 food and beverage SMEs registered at the Indonesian Food and Beverage Entrepreneurs Association - GAPMMI using convenience sampling data processed with AMOS. The results of the study show that additional innovation as a TQM mediator has an influence on company performance. In addition, testing shows that radical innovation has no effect on company performance. Therefore, additional innovation is the best way that SMEs can choose as a TQM approach to influence company performance. This research can contribute to small and medium enterprises in the selection of innovations in the practice of TQM. This will help entrepreneurs get better company performance Key words: total quality management; incremental innovation; radical innovation; firm performance; SMEs AbstrakDalam kompetisi strategi, inovasi harus jelas dan tepat sesuai dengan permintaan dan harapan konsumen. Terbatasnya sumber daya organisasi menuntut organisasi mengelola inovasi dengan jelas. Upaya perusahaan untuk mengubah atau meningkatkan output produk, baik dari proses dan layanannya, ditafsirkan sebagai inovasi. Penelitian ini bertujuan untuk meneliti pengaruh manajemen kualitas total terhadap kinerja perusahaan dengan dua pendekatan, inovasi tambahan dan inovasi radikal. Hipotesis diuji dari data yang dikumpulkan dari 108 UKM makanan dan minuman yang terdaftar di Gabungan Pengusaha Makanan dan Minuman Indonesia – GAPMMI dengan menggunakan convenience sampling data diolah dengan AMOS. Hasil penelitian menunjukkan bahwa inovasi tambahan sebagai mediator TQM, memiliki pengaruh terhadap kinerja perusahaan. Selain itu, pengujian menunjukkan bahwa inovasi radikal tidak berpengaruh pada kinerja perusahaan. Oleh karena itu, inovasi tambahan adalah cara terbaik yang dapat dipilih oleh UKM sebagai pendekatan TQM untuk mempengaruhi kinerja perusahaan. Penelitian ini dapat berkontribusi untuk usaha kecil dan menengah dalam pemilihan inovasi dalam praktik TQM. Hal ini akan membantu pengusaha mendapatkan kinerja perusahaan yang lebih baik Kata kunci: manajemen kualitas total; inovasi tambahan; inovasi radikal; kinerja perusahaan; UKM


Author(s):  
Fikrotul Ulyah ◽  
Ahmad Toha ◽  
Sasongko Sasongko

TQM concept is known as a significant driver of performance of large-scale companies. This study points out two perspectives namely direct and indirect influence associated with TQM. Specifically, it delves into the innovation and spiritual capital in improving the performance of Intako. Path analysis was carried out to shed lights on the correlation among the aforementioned aspects. There were 98 samples involved in the study. The research results confirm the influence of innovation and spiritual capital on TQM. Likewise, the same results are evident on the influence of innovation, spiritual capital, and TQM on company performance. Key word: Innovation, Spiritual Capital, Total Quality Management, Performance, Small-and-Medium Enterprises


2019 ◽  
Vol 7 (1) ◽  
pp. 118
Author(s):  
Raissa Diva Kirana , ◽  
Hernawan Hadi ,

<p>Abstract<br />This article aims to determine whether or not the understanding of micro, small and medium enterprises <br />(MSMEs) in Surakarta City, to the application of the regulations stated in Law Number 20 of 2016 on <br />Trademark and Geographical Indication (According to the research in the Department of Cooperatives <br />and UMKM Surakarta) registration of brands and constraints that hinder the implementation of the law <br />to the entrepreneurs of MSMEs. This understanding includes several factors that influence from culture <br />to moral values. This legal research is an empirical or sociological juridical research, which studies the <br />problem directly to the target (in this study the entrepreneur of MSMEs). Techniques of collecting legal <br />materials with questionnaires, interviews, and literature study. Based on the results of this study and <br />discussion, the conclusion of the unequal distribution of the related understanding of Brand rights as <br />regulated in Law Number 20 of 2016 on the entrepreneurs of MSMEs, whether the understanding of the <br />definition of the rights of the brand itself, the benefits, and the procedure of registration. The factors that <br />become obstacles hampering the implementation of this law on the entrepreneurs of SMEs in Surakarta.<br />Keywords: Understanding; Trademark Rights and Geographical Indicatio; MSMEs entrepreneurs</p><p>Abstrak<br />Artikel ini bertujuan untuk mengetahui tercipta tidaknya pemahaman pelaku Usaha Mikro Kecil dan <br />Menengah (UMKM) di Kota Surakarta, terhadap penerapan peraturan yang tertera pada Undang-Undang <br />Nomor 20 Tahun 2016 tentang Merek dan Indikasi Geografis (Sesuai penelitian di Dinas Koperasi dan <br />UMKM Surakarta) terkait pendaftaran merek beserta kendala-kendalanya yang menjadi penghambat <br />dalam penerapan undang-undang tersebut pada pelaku UMKM. Pemahaman ini meliputi beberapa faktor <br />yang mempengaruhi mulai dari budaya hingga nilai moral. Penelitian hukum ini merupakan penilitian <br />empiris atau yuridis sosiologis, yang mempelajari masalah dengan langsung pada sasarannya (dalam <br />penelitian ini pelaku UMKM). Tekhnik pengumpulan bahan hukumnya dengan kuisioner, wawancara, serta <br />studi pustaka. Berdasarkan hasil penelitian dan pembahasan ini dihasilkan simpulan belum meratanya <br />pemahaman terkait Hak merek yang diatur pada Undang-Undang Nomor 20 Tahun 2016 pada para <br />pelaku UMKM, baik pemahaman mengenai pengertian hak merek itu sendiri, manfaat, maaupun prosedur <br />pendaftarannya. Adapun faktor-faktor yang menjadi kendala terhambatnya penerapan undang-undang <br />ini pada pelaku UMKM di Surakarta. <br />Kata Kunci : Pemahaman; Merek dan Indikasi Geografis; Pelaku UMKM</p>


2020 ◽  
Vol 8 (8) ◽  
pp. 151-158
Author(s):  
Dian Indri Purnamasari

The aim of this research is testing the factors that affect the use of online applications for the acceleration of Business Process Reengineering (BPR) system in Micro, Small, and Medium Enterprises during Covid-19 pandemic will be the next question. This study used primary data from a web-based survey—Google  Form—to  keep up with current technology and to comply with COVID-19 Social Distancing protocol and to stay alert. We make observation of MSMEs was conducted in Yogyakarta. The results of analysis presented earlier have led us to conclude that (1) personal factors do not affect the use of online application, (2) organizational factors do not affect the use of online application, (3) online application success affects the use of online application, and (4) emotional Reaction affects the use of online application.  


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