Economic Themes (2018) 56 (2) 5, 221-238
Milan Mihajlović
Abstract: It may be said that TQM is approach focused on increasing product quality through continual improvement of business processes, approach in which customer represent continual motive for quality improvement, in which processes are performed without mistakes, in which main attention is on process improvement and not on criticism of employees, in which decisions are based on data and facts. On the other side, LM, which may be presented as production with loss minimization, represents approach according to which one can use less resource for business process realization that it seems to be possible. The key principles of minimization are high quality, elimination of activities that do not add value, continual improvement, flexibility and establishment of long-term partnership relations among business process performers. Those approaches have few common elements, and they are: focus on customers, employee empowernment and business process management. The good thing is that mentioned elements are mutually correlated. On the other hand, there is also (to some extent) correlation between dimensions of competitiveness (except costs). This means that companies in Serbia use more than one dimension to provide competitiveness, and that they are oriented more towards non-cost dimensions. More detailed analysis shows that elements of integrated approach may be used for improving some dimensions of competitiveness. Although there is general influence of all elements to all dimensions, some elements have greater influence on some dimensions of competitiveness. Preciselly, Business process management has the greatest influence on speed and flexibility, while Employees empowernment has the greatest influence on quality. Based on the research results it may be concluded that two approaches TQM and LM may be integrated and, what is even more important, positive results from their paralel implementation may be expected.
Keywords: process; quality; PDCA cycle; process management; continuous improvement; process orientation
METHODS AND TECHNIQUES OF ENHANCING PROCESS QUALITY: THE CASE OF THE DAIRY INDUSTRY IN THE REPUBLIC OF SERBIA
Milan Mihajlović
Abstract: It may be said that TQM is approach focused on increasing product quality through continual improvement of business processes, approach in which customer represent continual motive for quality improvement, in which processes are performed without mistakes, in which main attention is on process improvement and not on criticism of employees, in which decisions are based on data and facts. On the other side, LM, which may be presented as production with loss minimization, represents approach according to which one can use less resource for business process realization that it seems to be possible. The key principles of minimization are high quality, elimination of activities that do not add value, continual improvement, flexibility and establishment of long-term partnership relations among business process performers. Those approaches have few common elements, and they are: focus on customers, employee empowernment and business process management. The good thing is that mentioned elements are mutually correlated. On the other hand, there is also (to some extent) correlation between dimensions of competitiveness (except costs). This means that companies in Serbia use more than one dimension to provide competitiveness, and that they are oriented more towards non-cost dimensions. More detailed analysis shows that elements of integrated approach may be used for improving some dimensions of competitiveness. Although there is general influence of all elements to all dimensions, some elements have greater influence on some dimensions of competitiveness. Preciselly, Business process management has the greatest influence on speed and flexibility, while Employees empowernment has the greatest influence on quality. Based on the research results it may be concluded that two approaches TQM and LM may be integrated and, what is even more important, positive results from their paralel implementation may be expected.
Keywords: process; quality; PDCA cycle; process management; continuous improvement; process orientation
