Total Quality Management

Jul 12, 2024

Total Quality Management (TQM)

Breakdown of the Term

Total

  • Refers to all processes, efforts, and work done or inputs given to an organization by its employees from lower to upper levels.
  • Example: As a business owner, the quality or amount of excellence you provide to your customers through your goods or services.

Quality

  • The level of excellence or standard you provide to ensure customer satisfaction.
  • Aim to give the best services or products to meet customer needs and preferences.

Management

  • A complete process involving planning all necessary steps to execute any operation successfully.

Definition of TQM

  • TQM is a complete process encompassing well-organized and planned activities by all employees and bosses to achieve targets set by the company's owner.
  • Examples: Producing quality products, providing good services, ensuring customer satisfaction, and achieving these goals within a reasonable time and price.

Example Company: Gesture

  • John owns the perfume company "Gesture" which aims to create a new fragrance to attract customers and generate revenue.
  • Focuses on systematic and arranged processes to promote products and ensure customer satisfaction.

Main Principles of TQM

Customer Satisfaction

  • Initial and crucial step in any business process.
  • Identify target audience and produce goods/services according to their needs and preferences.
  • Key Points:
    • Good customer behavior and communication.
    • Offer best services at reasonable prices.
    • Take feedback and reviews.
    • Regular surveys to understand changing customer needs.

Total Employee Involvement

  • Employees play a key role in the company's development.
  • Engagement and interest in work lead to company growth.

Continuous Improvement

  • Adapt to new technologies and patterns to improve skills and grow.

Strategic and Systematic Approach

  • Success depends on complete planning and strategy.
  • Define audience, service provision, and strategic planning.

Integrated System

  • Example: A book involves multiple sections (printing, binding, etc.) working together.
  • Total involvement of the organization in performing tasks.

Fact-Based Decision Making

  • Decisions based on facts and theories, not assumptions.

Advantages of TQM

Improvement in Company Environment

  • Better environment leads to increased energy and productivity.

Excellent Customer Satisfaction

  • Monitor and improve through feedback and surveys.

Good Public Image

  • Positive public image enhances growth and target achievement.

Reduce Non-Productive Activities

  • Focus on productive activities to generate good revenue.

Better Personal Relations

  • Eliminates defective products, builds trust between brand and customers.

Disadvantages of TQM

Production Disruption

  • Training employees may halt production.

Employee Resistance

  • Employees may disagree with working in a framed pattern.

Increased Costs

  • TQM increases expenses due to additional steps and training.

Discourages Creativity

  • Framed patterns limit opportunities for new creativity.

Conclusion

  • TQM is essential for ensuring quality and customer satisfaction but comes with challenges such as increased costs and potential disruption in creativity.