Eskom Procurement Book 2015

PROCUREMENT AS A SUPPORT AND STRATEGIC FUNCTION WITHIN COMPANIES

prevention of defects by controlling the process and implementing procedures to detect quality problems at source, i.e., as the product is being made or service is being provided. • Quality is defined in the broadest sense, encompassing internal and external customers’ needs and expectations: TQM focuses on identifying and meeting the requirements of internal as well as external customers. • Uses measurement tools and techniques: Graphical measurement tools and techniques are used to determine areas for improvement and to let you know where you are in relation to your improvement goals. • Requires participative management: Management provides the necessary support and resources for a TQM initiative. Without the total support and involvement of management, TQM will not succeed. • Requires teamwork: More can be accomplished by working together to improve the system than by individuals working on their own. The only efficient way to tackle process improvement and complex problems is through teamwork. • Requires employee involvement: The person doing the job is most knowledgeable about that job. People will generally work to implement solutions to problems that they have had a hand in solving. Also, generally speaking, people want to be involved and do their jobs well and every person wants to feel like a valued contributor. One of the key elements for success in TQM is therefore employee involvement. • Stresses supplier/customer partnerships : The emphasis is on collaboration and joint problem solving. It also emphasises long-term relationships with fewer, better, suppliers. • Involves training for all people at all levels: Training in teamwork and in structured problem solving is a must. Individuals trained in effective teamwork collaborate and work better in teams. A structured problem-solving process, using graphical techniques, produces better solutions than an unstructured process. Also, every organisation has undiscovered ‘gems’ (people) waiting to be developed. • Continuous improvement: Continuous improvement, also referred to as project-by-project improvement, means continually looking for ways and means to improve performance levels. Once an improvement in performance has been reached in one area of the organisation, then other areas are examined for ways to improve performance. • Demands patience: TQM requires a major shift in culture for most companies. This culture change does not happen overnight and requires patience from management and employees.

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