Identify some of the management issues that may emerge from process redesign. Discuss their cause, likely consequences and how the organisation may manage these issues effectively.

Problem 1 :James McFarlane is the manager of a medium-sized manufacturing company. His company is looking at improving the design of its purchasing process and one employee has suggested that it consider adopting an ERP system. The employee said something about the benefit of best practice in ERP systems. James is not sure which way to go. He believes that the organisation's current ordering and inventory management processes are basically sound, unique in the industry and that, 80 Part 2 Systems characteristics and considerations with a little modification, they could be even more of a differentiating factor for the business. He has reservations about ERP systems and was contemplating using a TQM approach to redesign the process instead of investing in new software.

Advise James on the risks and benefits an organisation faces in adopting the processes in an ERP system. Should his company go ahead with the ERP system?

Do you think, based on the few facts available, that James should be considering TQM? If so, which do you think is appropriate for his business? Explain your reasoning.