Impact of Total Quality Management for a Manufacturing Industry

Topics: Management, Quality management, Total quality management Pages: 6 (1888 words) Published: March 7, 2015


DISCUSS THE IMPACT OF TOTAL QUALITY MANAGEMENT FOR A MANUFACTURING INDUSTRY OUTLINING HOW TQMAFFECTS THE WORKING BEHAVIOUR OF ALL THE WORKERS IN THE IN AN ORGANISATION AND THE LONG TERM BENEFITS OF HAVING A RUNNING QUALITY MANAGEMENT SYSTEM IN PLACE. In such a competitive environment resulted from world globalization and liberalization, firms survive with much difficulty unless they create the competitive advantage over their competitors. With the increasing competitive, business survival pressure and the dynamic, changing customer-oriented environment, total quality management (TQM) has been recognized as one of the important issues and generated a substantial amount of interest among managers and researchers. Since 1980s, TQM has been regarded as one of effective ways for firms to improve their competitive advantage. Some leading pioneers in the quality area asserted that competitive advantage can be gained by providing quality products or services. Others argued that quality holds the key competitiveness in today’s global market. In addition, TQM has widely considered as an effective management tool to provide business with stability, growth, and prosperity. The benefits of quality improvement can not only be reflected on decreasing costs, but also on maximizing business profits. In terms of quality improvement, what really counts for a firm is not just cost minimization, but the effect of superior quality has on maximizing profits. Thus, the study of the relationship between quality management and firm performance is critical for firms and researchers to better understand the effects of quality management onto different levels of firm performance. In order to accomplish the requirement of quality, firms have to spend time and effort on the implementation of TQM. To this end, firms will introduce quality management practice by communicating TQM philosophy and/or principle effectively. In addition, the application of TQM can be implemented to enhance the relationship between firms and their suppliers. Moreover, the implementation of TQM can also increase customer satisfaction by providing preeminent products or services. According to some researches TQM philosophy can be applied to any organizations, including manufacturing, services, and information-related industries. The Effects of TQM on Business Performance.

The benefits of an effective TQM implementation can be studied with three different perspectives. Firstly, from the operating angle, the reason that TQM has become a hot topic in both industry and academia is that it can be applied to improve/enhance global competitiveness. Firms with effective TQM implementation can accomplish the internal benefits such as improving quality, enhancing productivity enhancement, or realizing better operating income. Secondly, from the financial performance perspective, careful design and implementation of consistent and documented quality management systems can contribute significantly to superior financial performance. Further, firm with an effective TQM implementation can significantly outperform on the stock price performance. Finally, from the knowledge management (KM) viewpoint, the implementation of TQM can also increase and enhance organizational knowledge, which in turn helps more understanding of how quality management practices can affect firm performance. Compared with TQM and KM, there are many similarities between these two management philosophies. If properly planned, they can complement one another effectively. There are seven factors that are the key driving forces to an effective implementation of TQM. These seven factors include: customer focus, management leadership, human resource, quality data & reporting, suppliers’ management, design management, and process management. 1. Customer focus

For business enterprises, the significant driving force to establish the quality goals basically originates from customer needs. Generally...
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