Reduce the Cost of your operations by improving Quality: William Edwards Deming and Quality Management in a Public Sector Organization
If you improve the quality of your product or service, productivity is automatically increased and costs go down.
I first learned about W.E. Deming while I was in graduate school and also working in the Product Engineering department of a Fortune 500 company. At the time, the company was implementing Total Quality Management (TQM) and I was really impressed by the scope of changes the company was employing in order to improve its product quality.
Deming’s approach to quality and productivity is widely used in manufacturing, but not so well recognized in the Public Sector where I do a lot of my work. However, applying Deming’s concepts and methods to Public Sector organizations can create a profound improvement in the quality of that service while automatically improving productivity and lowering costs.
Combine with a Business Process Assessment
Any time you are working on a business project such as procurement of a new software product, a perfect opportunity to review and streamline all your business processes presents itself. In fact, this may be the only opportunity you have to make improvements in the delivery and efficiency of services for the next decade or two if your organization functions like many in the Public Sector do. There is no software product that will magically improve your business processes – you must analyze the business processes and build your new, improved processes into your new system.
A business process assessment in advance of your upcoming software acquisition can identify the bottlenecks in your business processes that create inefficiencies in your operations. I can provide a few of the many examples that I have encountered with my clients. In one organization, I found a 10-step process for recording of revenue that resulted in a 3 month delay in that revenue being booked. This process should have consisted of a single step with instant booking of the revenue. While doing a business process review in another organization, my client identified a 17-step process that resulted in a lengthy delay in booking revenue and sometimes in the total loss of that revenue. Again, that process should have consisted of a single step.
Is your organization plagued with bureaucratic processes like those mentioned above? No one knows why the process is that way and no one can remember when it started, but “We’ve just always done it that way.” This is the reason why I do a bottom-up business process assessment. There is no way to capture these processes unless you interview and observe the people who actually do the work. The gulf between Minion and Management is vast and Management often has no idea of what the exact processes are in various departments and functions of a large organization.
Once you identify all of these process bottlenecks, you will want to make sure you build the new, more logical and efficient process into your new software system. Unfortunately, many organizations do what a colleague of mine describes as “recreating all the dysfunctional processes in the new system.” If you are going to take that approach, why bother with a new system?
If you want to read more about improving quality and productivity while lowering costs, try Out of the Crisis by William Edwards Deming (1982, Massachusetts Institute of Technology, Center for Advanced Educational Services, Cambridge, Massachusetts). If you want to discuss methods for increasing the quality of your services, e-mail me at email@example.com.
Copyright © Jeffrey Morgan 2015by