Business Process Management versus Quality Management System

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1 ARY IPLIN CONF SC INTER DI ENCE ER Business Process Management versus Quality Management System Ing. Michaela Hájková Department of Industrial Engineering and Information Systems Tomas Bata University in Zlín Zlín, Czech Republic Abstract The aim of this paper is to point out the connection of two systems enterprise management, which contribute to increasing their competitiveness. The article provides an overview of basic principles and benefits of quality management system represented by certification to ISO 900X and business process management. Through the results of the research it shows the mangers attitude to the mentioned management systems. The purpose of this paper is to discover the synergy effect of simultaneous usage of these both approaches. There can be found several definitions of business processes in the literature, which are more or less similar. However, all of them share notions as input, the sequence of activities, output and customer value. Figure 1 shows the combination of all definitions available in literature. Keywords- business process management; quality management system; ISO International Standards I. INTRODUCTION Quality and certification to ISO s management system standards (for example 9001) are often inflected concepts in present business practice. The certification to ISO standards is a prerequisite for competitiveness in many sectors of business. These international standards constitute a normative base of quality management system (QMS). According to authors [11] they create and keep mechanisms capable of preventing undesirable behaviour through internal audits. The procedure consists of documenting and standardizing procedures, their stabilization and improvement by corrective and preventive measures. These standards are closely connected to business process management (BPM) through a process approach and this linkage is currently the subject of this article. II. BUSINESS PROCESS MANAGEMENT AND BUSINESS PROCESSES Jeston and Nelis [3] recently defined BPM as a management discipline focused on improving corporate by making a company business processes. Weske [13] states that business process management includes concepts, methods, and techniques to support the design, administration, configuration, enactment, and analysis of business processes. Several authors [1], [13] characterize business processes as a specific ordering of work activities across time and place, with a beginning, an end, and clearly identified input and outputs. They have internal or external customers and they cross organizational boundaries and they jointly realize a business goal. Figure 1 Scheme of business process A. Components of business process management Process management components that are necessary for a successful implementation of business process management can be characterized as follows [12]: Strategic management; Management skills; Quality control; Continuous process improvement; Process model. As seen from the preceding text, the quality management system is an integral part of successful implementation of BPM

2 B. Benefits of Business Process Management The authors consistently refer to BPM as a driver of profitability and characterize BPM as a discipline of modelling, automating, managing and optimizing business processes [5], [9], [12]. Other researchers agree stating that process approach, referred to holistic management approach too, allows organizations to eliminate the biggest disadvantage of the traditional functional hierarchical approach that cannot be considered as an approach appropriately flexible for changes in the corporate environment, variety of procedures, or excessive substitution of workers [8], [14]. Implementation of BPM definitely provides number of benefits. According to authors [9], [12] it is necessary to mention improving organizational productivity and responsiveness, improving relations with external customers and obtaining new orders. Other authors [12] classify the benefits of BPM as follows: Transparently and efficiently working processes; Process-oriented organizational structure supporting process performance; Figure 2 Quality Management Process Flow (adapted from [7]) Acceleration of cycle times Cost reduction; Ability to react flexibly; Effective system of measurement and evaluation; Motivated and involved employees with increased knowledge; Continuous improvement of processes. III. QUALITY MANAGEMENT SYSTEM The concept can be characterized by following features [6]: ISO International Standards are generic, i.e. that their application do not depend on the type of industry. The nature of the processes and nature of the product do not play any role in the certification. These standards are applied in manufacturing companies, as well as the services and regardless of the size of the organization. ISO International Standards are not binding but only recommendatory. They are binding only in case when the supplier undertakes to customers that he applies a quality management system according to these standards itself. The exception to this rule is only contractors of regulated products (Examples include toys for children). The ISO International Standards [11] serves to unify terminology, developing internal quality assurance systems and to increase trust in supplier relations and define the criteria for certification of quality assurance. They were formed as a result of the unification of documentation and procedures of the national standards, which have caused the technical barriers to trade. They are used mainly in Europe. A. Benefits of certification to ISO 9001 International Standards are strategic tools and guidelines to help companies tackle some of the most demanding challenges of modern business. They ensure that business operations are as efficient as possible, increase productivity and help companies access new markets. Benefits include [2]: Cost savings - International Standards help optimise operations and therefore improve the bottom line Enhanced customer satisfaction - International Standards help improve quality, enhance customer satisfaction and increase sales IV. Access to new markets - International Standards help prevent trade barriers and open up global markets Increased market share - International Standards help increase productivity and competitive advantage Environmental benefits - International Standards help reduce negative impacts on the environment COMPARISON OF BUSINESS PROCESS MANAGEMENT AND QUALITY MANAGEMENT SYSTEM As have been said, management approaches discussed in this article have several common elements. It is not only similar benefits the list of which can be found in the previous text and the barriers complicating the successful implementation but mainly the similar principles which these two approaches are based on. The comparison can be seen below

3 Table 1 Comparison of BPM and QMS (adapted from [6], [11]) Principles of QMS 1. Focus on customer 2. Leadership 3. Connection of employees 4. Learning 5. Continuous improvement 6. Process approach 7. Management based on facts 8. System approach to management 9. Mutually beneficial relationships with suppliers 10. Corporate Social Responsibility 11. Flexibility Principles and components of BPM 1. Focus on internal and external customer 2. Connection of all employees 3. Performance measurement processes 4. Continuous improvement 5. Creating of process map and their subsequent using 6. Standards based on process model 7. Strategic management 8. Quality control 9. Management skills The table confirms that BPM and QMS have really common elements. It should be particularly noted that the principles of both types of management contain a second type of management. One of BPM principles is quality control, which should be ensured through QMS. One of the most important QMS principles is process approach, which is the cornerstone of BPM. Following figure shows connection of business process management and quality management system and their synergy effect. 5 years. Questions relating to the QMS were selected for this article in order to show the attitude of managers to link BPM and QMS. Mentioned results can be seen below. Figure 4 Interest rate of objectives in the implementation of BPM (adapted from [12]) Table 2 Legend of the chart (adapted from [12]) Code 1:4AS 2:4BS 3:4DS 4:4CS 5:4AB 6:4BB 7:4DB 8:4CB Persued objectives in the implementation of BPM BPM as strategic change (present.) Certification to ISO 900X (present) Implementation IS (present) Fractional process improvement (present) BPM as strategic change (future) Certification to ISO 900X (future) Implementation IS (future) Fractional process improvement (future) The first issue (Fig. 1) of research relating to the QMS was focused on detecting of secondary goals related to BPM implementation. This article is concerned with second answer regarding the usage of BPM implementation for certification to ISO As can be seen from the graph the answer about the current and future status ranges from 0.5 to 0.6. In connection with the method of evaluating research, this means that managers have expressed a weak agreement with the statement that the implementation of BPM will allow them to more easily manage the implementation of the QMS. The time horizon of 5 years is not possible to identify as an important factor in the claims. Replies are identical for both periods. Figure 3 Conection of BPM and QMS V. RESULTS OF RESEARCH FOCUSED ON USAGE OF BUSINESS PROCESS MANAGEMENT IN CZECH REPUBLIC This chapter aims to show part of the results of research realized in the Czech manufacturing enterprises in 2006 [12], have been targeted at the utilization rate of the principles and components of BPM. Respondents were interviewed to express their attitudes on the issue of business process management. Their task was to express agreement or disagreement with the specified issues by Likert scale. The questions were aimed at their current position and plans for their future in the horizon of Figure 5 Interest rate of individual activities continuing to BPM (adapted from [12])

4 Table 3 Legend of the chart (adapted from [12]) Code 1:DS 2:ES 3:FS 4:GS 5:CS 6:BS 7:AS B1:D B2:E B3:C B4:G B5:F B6:B B7:A Activities continuing to implementation BPM Process optimalization and continuous improvement Implementation of ISO standards Reimplementation of controlling Process oriented implementation od IS Reengineering of knowledge processes Business Process Reengineering Building strategies using BSC Process optimalization and continuous improvement (future) Implementation of ISO standards (future) Reimplementation of controlling (future) Process oriented implementation od IS (future) Reengineering of knowledge processes (future) Business Process Reengineering (future) Building strategies using BSC (future) The second question relating to the QMS was focused on finding activities that managers would like to follow up on implementation of BPM. The article focuses once again on the second answer. The purpose of this question is to determine whether in the managers' opinion, the implementation of QMS should have been another strategic change in the company. As can be seen from the graph the answers for both periods is again range between 0.5 and 0.6. This result implies that managers of poorly agree with this claim. The result applies to both periods. According to results of two monitored questions, it can be concluded that the research results prove that managers do not involve the implementation of BPM and QMS. In other words, they either do not realize the connection between those two approaches and synergy resulting from it or they are not interested in it. VI. DISSCUSION Based on several sources [4], [10] as a common denominator of all the problems with the application process approach can be identified human sources, respectively necessity to change people's minds. Human thinking cannot be simply replace or reprogrammed. Most people have an ingrained resistance to change. Their values are determined by childhood experiences, work and even the experience of previous generations. Inertia obtained by these life experiences and the world of immutable is supported by the education system in Czech and Slovak republic. This system, leading pupils or students to memorizing old ideas and almost suppressing any indication creativity, makes them poorly independent individuals who are incapable of independent decision-making and responsibility. Currently, the most frequent functional organizational structure in fact exacerbated these habits. Besides generation of graduates who studied in the period in supporting greater creativity and independence, the vast majority of employees have almost innate obedience to the rules. Such deeply ingrained behaviours and instincts cannot be changed in a short period. It is necessary to ask whether the time since the last revision of ISO International Standards, which appeals to the importance of the process approach; was sufficiently long to change human behaviour and thinking. Quality Management System based on ISO International Standards and Business Process Management is two approaches which are closely related. The established quality management system does not mean that the business process management works in the company. The same is true in reverse. The question arises whether it is better to start first with implementation of BPM or with certification to ISO standards. When we think about the benefits of BPM, it can be seen the similarity with the benefits that we expect from a properly functioning system of quality management. Manufacturing processes must be transparent and efficient, as their output should be the same product. Removal of poor quality extends the period of production, what causes cost increases. Also, the quality must be connected to the continuous improvement of processes. BPM and QMS are management systems, which share similar principles which share similar principles, and thus can be explained the similarity of benefits and causes of failure in their implementation. VII. CONCLUSION Large number of companies is currently undergoing by the process of modernization and implementation of corporate activities of modern elements, leading to a gradual, not only streamlines management processes. Process management is an approach that today is becoming more and more popular. Using this approach, enterprises can eliminate the disadvantages of the traditional functional approach, which does not respond sufficiently flexibly to changes in business environment. At the time of globalization and increased competition this classic method of management can no longer ensure sustainable competitiveness. Through effective business processes management may change, improve efficiency, enhance their performance and ultimately identify and resist market risks. Likewise, certification to ISO 900X is a necessary part of a globalized world with the free movement of goods. Quality certificates are necessary standard for example in the suppliercustomer relationships in the automotive industry. When all employees of the company manage understand the process and system approach by implementing BPM, certification to ISO 9001 less likely to end up to redraw elements of quality processes. When the implementation team manage create an effective organizational structure by implement the BPM, where the processes are not fragmented by individual departments, the concept of quality can quickly manage to instil in employees thinking. This controversy is but perhaps unnecessary, because certification to ISO standards is much more widespread as BPM in business practice. Companies that have implemented quality management system and play with the idea of implementation of business process management, because they consider it a key factor in improving the functioning of the existing system of quality through better understanding and subsequent use of process approach, are going in the right direction

5 ARY IPLIN CONF SC INTER DI ENCE ER Companies that have implemented quality management system and play with the idea of implementation of process management, because they consider it easy due to their previous certification ISO standards would have to be careful that the implemented business process management will not result only as a formal description of processes. [7] REFERENCES [10] [1] [2] [3] [4] [5] [6] T. H. Davenport, Process Inovation: Reengineering Work throught Information Technology. Harvard Business School Press, ISO. All Rights Reserved. Benefits of International Standards. Iso.org [online]. [cit ]. Retrieved from J. Jeston and J. Nelis, Business Process Management: Practigal Guidelines to Successful Implementations. New York: Routledge, J. Kotter, Vedení procesu změny: Osm kroků úspěšné transformace podniku v turbulentní ekonomice. Praha: Management Press, N. Llewellyn and C Armistead, Business process management: Exploring social capital within processes, in International Journal of Service Industry Management, vol.1, no.3, 2000 pp J. Nenadál, Moderní managament jakosti: Principy, postupy a metody. Praha: Management Press, [8] [9] [11] [12] [13] [14] Norma ČSN EN ISO 9000, Systémy managementu kvality Základní principy a slovník. Praha: ČNI, J. P. Pritchard and C. Armistead, Business process management: Lessons from European business, in Business Process Management Journal, vol.5, no. 1, 1999, pp S. E. Suhendra and T. Oswari, Business Process Management in Organization: A Critical Success Factor, in Journal of US-China Public Administration, vol.8, nno.1, 2011, pp J. Tománek, Podmínky úspěšného podnikání jsou: Zařazení se do světové či regionální podnikatelské sítě, a v provedení radikálních, procesních a systemových změn, in Reenggineering a management změn. Sborník článků, přednášek a studií. Praha: Computer Press, 2001.s D. Tuček and R. Bobák, Výrobní systémy. 2. vyd. Zlín: Univerzita Tomáše bati ve Zlíně, D. Tuček and R. Zámečník, Řízení a hodnocení výkonnosti podnikových procesů v praxi. Zvolen: Technická univerzita vo Zvolene, M. Weske, Business Process Management-Concepts, Languages, Architectures. New York: Springer Berlin Heidelgerg, M. Zairi and D. Sinclair, Business process reengineering and process management. Business Process Reengineering and Management Journal, vol.1, no.1, pp