Both quality and managements tools to increase sales and to reduce rejects
Definition of Total Quality Management (TQM)
Total quality management (TQM) consists of the involvement of the management and their employees in the continuous improvement in their products. It is combining both quality and managements tools to increase sales and to reduce rejects. TQM includes the integration of all areas in a company, that is, finance, sales, marketing, design, etc) so as to satisfied customers and achieve organizational objectives. (Hashmi, K, 2018)
Principles of TQM
- Customer Centric Approach – Judges of the quality of products, customers have the final say
- Employment Involvement – To encourage employees participation and empowerment in decision
- Continual Improvement – Leading to better quality, new techniques and competitive edge
- Strategic Approach to Improvement – Adopting strategic approach in all business areas
- Integrated System – All department must understand quality, policies and objective of the business to go in the same direction
- Decision Making – Company must collect and analyse data and information so as to take the accurate decisions
- Communications – Significant role in TQM as enhance day to day activities and motivate employees (Reynolds, P, 2013)
Importance of TQM in an Organization
It helps to ensure that customers are satisfied and their loyalty and also to adapts to changing markets, customers taste and customer preferences. Customers are the core of any business and it is the job of the personnel to keep the customers satisfied. The TQM method is a good way to make sure that this objective is met. (Smartsheet, 2018)
It increases productivity by eliminating defects and reducing costs. It improves the image and design of the company. Therefore, this lead to businesses enjoying an increase in profitability and revenues. TQM is a great way to achieve organizational goals. (Smartsheet, 2018)
It improves the moral of employees and job security. Employees also are an important factor in any organization as they are the one that make things happen. And if your workforce is positive, then the overall performance of the organization will have a continuous improvement. (Smartsheet, 2018)
Costs of TQM
The cost of TQM is that it requires intense training of employees so that they become skilful and knowledgeable. First of all, training is costly, a budget need to be allocated for training of new and existing workers. And secondly, there is a loss of resources during training time as these workers will have to be replaced. Another demerit of TQM is that the benefits may take a long time to appear. There may not be
immediate effect as the employees will need time to adapt to new system, sophisticated equipment or advance technology. And lastly, employees may be resistant to adapt to new changes which can cause a stressful workplace environment. It can also lead to conflicts among certain person and create bad
relationship. (Smartsheet, 2018)
Implementation of TQM
The implementation of TQM can be done through the 6 C’s which are commitment from employees, quality improvement culture, continuous improvement in process, co-operation from employees, focus on customer requirements and effective control. (Akrani, G, 2012)
Commitment – It is important that to have everyone in the organization to work towards the same goals. If there is resistance from some employees, the process tends to delay.
Culture – This change should form part of the organizational culture. The culture should also be one where employees are encouraged to give feedback.
Continuous Improvement – Procedures, processes and policies must be constantly improved so as to be able to perform better each time even if there is a small performance.
Cooperation – Not only employees should be committed but they also have to cooperate in the implementation process.
Customer Focus – The TQM process must ensure that all employees focus on the requirement of customers and their expectation of the products.
Control – Effective control should be laid down so as the performance of the organization can be monitored and measured. This will help to amend any deficiency in the business process. (Akrani, G, 2012)
Analysis of TQM
In conclusion, TQM practices can be extremely beneficial for the company, employees and customers if the steps are carefully applied and all the factors are taken into consideration. However, if the process is not well planned, the consequences can be very harmful. The company must well define a plan and ensure that there is the involvement of all employees and that the requirements of customers are taken into account. Thus, leading the company to improve the overall performance of the business.