“Total Quality Management (TQM) is an approach that seeks to improve quality and performance which will meet or exceed customer expectations.”
TQM or Total Quality Management it is a business philosophy through which the appropriate strategy, processes, training, motivation, commitment, tools and resources leads to the success of the company, which is resulting in full satisfaction of the customer. Total quality management is also described as an integrated organizational effort designed to improve quality at every level. Motto of TQM is continuous improvement of operations. TQM focuses not only just on quality but also on long, medium or short term process which can improve efficiency of an organization’s business while reducing or eliminating any wasteful processes. Considering the practices of TQM as discussed in six empirical studies researchers identified the nine common TQM practices as cross-functional product design, process management, supplier quality management, customer involvement, information and feedback, committed leadership, strategic planning, cross-functional training, and employee involvement TQM involves everyone in the organization and includes its every function: administration, communications, distribution, manufacturing, marketing, planning, training, etc. in order to meet or exceed customer expectations. The methodology for getting TQM implemented is motivation and seeking to satisfy the internal and external customers and to continuously improve process by working smarter and using special quality methods. There are two types of customer, internal and external. Internal customer can be someone within the organization for example someone at customer service or any staff employed by the company. It is someone who helps the organization serve the end customer. The external customer is someone who isn’t part of organization; it is someone who receives service or product from it. They have choice and if they don’t like the product or service they take the business elsewhere and they can find another company that offers better product or services. When customer was promised delivery of goods at specific and the delivery was late because of the problems in production, it will automatically lead to unsatisfied customer which might not want to use the company’s service anymore. External customer looses trust because internal customer isn’t providing the accurate information. TQM is engaged with ensuring excellent level of service to the customers hence its application improves customer retention and profitability of business. The two primary objectives in Total Quality Management are zero defects and 100% customer satisfaction. Zero defects mean that everyone should do things right first time. This phrase was coined by Philip Crosby in his 1979 book titled ‘Quality is free’.[i] The idea is that by with a philosophy of zero defects you can improve quality and reduce cost. To allow this to happen, a process, method or system of working has to be established which will ensure achievement of zero defects. Customer satisfaction refers to extent to which customers are happy with their products and services provided by business. Customer satisfaction levels can be measured by doing questionnaires survey or by asking them personally. The most common method for collecting information if customer is happy with service they get is survey which very brief, few questions taking no longer than few minutes. Gathered information is very helpful, it tells us what customers like, what they want and need and based on this information organization can improve their service and quality. The main principles of Total Quality Management are:
• Prevention – Prevention is better than the cure. In the long run, it is less costly to identify risks related...
Please join StudyMode to read the full document