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TQM – How to gain competitive advantage through quality?

TQM or Total Quality Management is a management technique to achieve long-term profitability through customer satisfaction

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    TQM – How to gain competitive advantage through quality?TQM or Total Quality Management is a management technique to achieve long-term profitability through customer satisfactionIdea in shortAspects of TQMCharacteristics of TQMUnderstanding TQM Customer focusTotal employee commitmentProcess approachIntegrated SystemStrategic ApproachContinual ImprovementFact based Decision MakingCommunicationRelated TQM frameworks and thought leadersBenefits of TQMShortcomings of TQM Related Posts Which of the following statements is true about total quality management TQM )?Which of the following is true about the impact of high quality products?Which product innovation results in gradual improvements and refinements of products over time?Who is responsible for defining what constitutes quality for a product?
TQM – How to gain competitive advantage through quality?

    OriginAspects of TQMCharacteristics of TQMUnderstanding TQM
      Customer focusTotal employee commitmentProcess approachIntegrated SystemStrategic ApproachContinual ImprovementFact based Decision MakingCommunication
    Related TQM frameworks and thought leadersBenefits of TQMShortcomings of TQM

Idea in short

According to Total Quality Management (TQM), every employee works to enhance the work culture, services, systems, procedures, and so on to ensure an organization's long-term success. TQM is a management method for an organization that relies on the participation of all members (including employees) and aims for long-term success through customer satisfaction. This strategy benefits all members of the organization as well as society as a whole. It is a continuous process of detecting and decreasing or eliminating manufacturing faults, optimizing supply chains, enhancing customer feedback through improved experience, and assuring properly trained staff.

TQM or Total Quality Management is a management technique to achieve long-term profitability through customer satisfaction. All members of an organization participate in this by working to improve processes, products, services, and culture. TQM is defined as a customer-focused process that strives to continuously enhance business processes. It assures that all associated works (especially employee work) are directed toward the common aim of improving product or service quality. Furthermore, TQM helps improve the manufacturing process or the process of rendering services. However, the emphasis is on fact-based decision making, with performance indicators used to monitor performance.

Though TQM originated in the process industry (manufacturing), other industries, such as banking, financial services, healthcare, etc. employ TQM to achieve sustainable, long-term change.

Origin

Walter A. Shewhart invented TQM in the form of statistical quality control. It was first used Western Electric Company in the version developed by Joseph Juran. TQM was demonstrated on a grand scale by Japanese industry through the intervention of W. Edwards Deming, who is now considered the father of quality control, quality circles, and the quality movement in general as a result of his missionary labors in the United States and around the world. The goal of TQM is to:

Do the right things right, the first time and every time

Aspects of TQM

Counting: 3Ts (Tools, Techniques, and Training) used to analyze, understand, and solve quality problems.Customers: Quality is a central concern and driving force for a customer.Culture: Expressed beliefs and shared values of leaders support and define the quality.

Characteristics of TQM

There are some very important characteristics of TQM.

Proper communication and adopting TQMBenchmarking or evaluating by comparison with set standardCloser customer relation environmentIncreased training facilities for employeesCloser provider relation situationEnsuring employee empowermentProcess measuringOpen organizationProcess improvementFlexible production

Understanding TQM

Overall, TQM is a collaborative use of strategy, data and effective communication to integrate discipline into the culture of the organization. It consists of 8 major principles:

Customer focus

Specifically, TQM puts the focus back on the people buying any product or service. Customers determine the quality of the product. If the product fulfills the need and lasts as long or longer than expected, customers know that they have spent their money on a quality product. Therefore, when an organization understands what its customer wants or needs, it has a better chance of figuring out how to get the right materials, people, and processes in place to meet and exceed their expectations.

Implementation

    Research and understand the customers’ needs and their expectationsAlign the organization’s objectives with customer needs and wantsCommunicate with customers, measure their satisfaction level, and use these results to improveManage customer relationshipsBalance between satisfying customers and other interested parties (like owners, employees, suppliers, and investors)

Benefits

    Increased sales, more revenue, market share, and mindshareStrong customer loyalty leading to repeat purchasesEnhanced promotion through word of mouth by satisfied customers

Total employee commitment

One can’t increase productivity, processes, or sales without total commitment of all employees. They need to understand the vision, mission and goals of the organisation. They must be sufficiently trained and proper resources must be provided to complete tasks in order to be committed towards reaching the set goals on time.

Implementation

    Clearly communicate and acknowledge the importance of individual contribution to the completed taskStress that each team or individual accepts ownership and give them the responsibility and opportunity to solve problems by themselves whenever encounteredAcknowledge successes and optimized performance to build confidence in employees and associated stakeholdersMake responsibilities clear, provide adequate training, and make sure the resources are used efficientlyEncourage people to continually seek opportunities to learn and switch to other roles so as to increase their knowledge, competence, and experienceSubsequently, create an environment where employees can openly discuss problems and give suggestions

Benefits

    Increased employee retention because employees are motivated, committed, and actively involved in working toward customer satisfactionIndividual and team innovation and creativity in problem-solving and process improvementEmployees who take pride and accountability for their own workEnthusiasm for active participation and contribution to continual improvement

Process approach

Adhering to processes is critical in quality management. Processes ensure that proper steps are taken the right time in order to ensure consistency and speedy production.

Implementation

    Use TQM tools, such as process flowcharts to define and delineate clear roles and responsibilities so everybody knows who does what particular timeDesigning a visual action plan so that everybody can easily see specific activities that need to be completed in order to achieve desired resultAnalyzing and measuring current activities to see areas of improvements or steps in the process which are creating bottlenecksEvaluating impact of processes and activities on customers, suppliers, and all stakeholders

Benefits

    Faster development and production cycles, lower costs, and increased revenueMore consistency and predictable outcomesFocus on continued improvements and success

Integrated System

Usually, a business has many different departments, each with their specific functions and purposes. These departments and functions should be interconnected with horizontal processes that should be the focus of TQM. But sometimes these departments and functions operate in silos.

In an integrated system, every employee in every department should have a thorough understanding of policies, standards, objectives, and processes. Integrated systems help the company to look for continual improvement in order to achieve an edge over its competitors.

Implementation

    Promoting work culture that focuses on qualityUse of flowcharts and other visual aids to help employees to understand how their functions fit-in with the rest of the companyUse as-is process analysis to look for any improvements neededMake training available for employees who need to learn new processes and who want to explore opportunities for advancement

Benefits

    Focus on quality will help the business to achieve excellence and meet or exceed customer expectations.

Strategic Approach

International Organization for Standardization, ISO defines this principle as:

Identifying, understanding and managing interrelated processes as a system contributes to the organization’s effectiveness and efficiency in achieving its objectives

Consequently, a strategic and systematic approach to achieve an organization’s vision, mission, and goals is needed to ensure quality improvement through the formulation of a strategic plan that integrates quality as a core component.

In this, to maximize efficiency, many processes within a development or manufacturing cycle are controlled as a system of processes.

Implementation

    By providing people, employees and partners with resources that enable them to complete their individual tasks in the process cycleContinuous improvement of products, processes, and equipment updates as necessary to efficiently reach goalsBy making continual improvements a mandatory measurable objective for employeesRecognize, acknowledge and reward innovation and process improvement in every phase.

Benefits

    Earlier and quicker identification, reaction to and fixing of errors and process bottlenecks or breakdownsImproves organizational capabilities and performance on the whole

Continual Improvement

Continual improvement drives an organization to be both analytical and creative in finding ways to become more competitive and more effective meeting stakeholder expectations.

Implementation

    Implement policies to define quantifiable targets for individuals, teams, and departments in terms of product, process, and system improvementsRecognize, acknowledge, and promote innovation as a means of improving procedures and developmentEncourage staff to attend available training programs to learn new skills and take on new responsibilities

Benefits

    Increased performance through improved knowledge and capabilitiesImprovement objectives that are strategically aligned with organisational capabilities and objectivesQuick response times to identify and repair bottlenecks and broken processes

Fact based Decision Making

To understand the performance of an organization, TQM requires that an organization continually collect and analyze data in order to improve decision making accuracy, achieve consensus, and allow prediction based on past history.

Implementation

    Analyze and verify data to ensure its dependability and accuracyProvide stakeholders with appropriate dataUse reliable methods to collect and analyze dataMake decisions based on the data facts, as well as your experience and instincts

Benefits

TQM offers the ability to:

    Make sound decisionsAssess and justify previous actions by referring to factual recordsRevise previous decisions based on data analysis

Communication

During times of organizational change, as well as part of day-to-day operation, effective communications plays a large part in maintaining morale and in motivating employees all levels. Communications involve strategies, method, and timeliness.

Implementation

    Establish an official communication channel so that all employees are aware of updates, policy changes, and new processesInvolve employees in decision-making wherever possibleEnsure that everyone in each department understands their roles and how they fit in with the rest of the organization

Benefits

    Employee morale and motivation are increased when they understand how their efforts help the organization achieve its goalsImproved co-ordination and collaboration between departmentsSilos are eliminatedCapability to more correctly assess the efficacy of current rules and processesEmployees are more motivated to attain goals because they are involved in the decision-making process
    PDCA (Plan, Do, Study & Act) or (Plan, Do, Study & Adjust)OPDCA (Observe the current condition, Plan, Do, Study & Act) Kaizen (Kai – Change, Zen – Improve)Deming’s 14 Points on Quality ManagementKanseiSix SigmaMiryokuteki HinshitsuAtarimae Hinshitsu

Benefits of TQM

Some important benefits of TQM:

    Employee participation in the decision-making processImproved quality of service or productEnsured customer satisfactionStrengthens employee-employer or employee-employee working relationshipEnsured employee-satisfaction in working environmentEnhancement in productivity due to quality maintenanceCreating good communication through scientific techniquesGetting profitabilityShifting market share positively

Shortcomings of TQM

Some drawbacks of TQM are:

    Extremely demanding of management and staff timeIt can become excessively mechanical and bureaucratic thus leading to prominence on the process’s stability, rather than focusing on improvement or the means rather than the endOnly helpful if the organization is heading in the right directionTQM is not a quick fix and takes years to implementIt can lead to too much attention

Summary

Quality management(QM) ensures superior quality services and products. The quality of any service or product can be measured in terms of its durability, reliability, and performance. QM tools ensure changes in the processes and systems, resulting in superior quality services and products. The methods of quality management, like Six Sigma or TQM, have a common goal - to deliver a high-quality product. Customers need to be satisfied with your brand. Business marketers are successful only when they emphasize quality rather than quantity. Quality products or services ensure that you survive the cut-throat competition. Therefore, TQM implements close coordination between employers and employees in organization. It also fixes a strong feeling of teamwork among the employees.

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Think Insights (November 25, 2022) TQM – How to gain competitive advantage through quality?. Retrieved from https://thinkinsights/strategy/tqm-framework/.

"TQM – How to gain competitive advantage through quality?." Think Insights - November 25, 2022, https://thinkinsights/strategy/tqm-framework/

Think Insights January 4, 2022 TQM – How to gain competitive advantage through quality?., viewed November 25, 2022,

Think Insights - TQM – How to gain competitive advantage through quality?. [Internet]. [Accessed November 25, 2022]. Available from: https://thinkinsights/strategy/tqm-framework/

"TQM – How to gain competitive advantage through quality?." Think Insights - Accessed November 25, 2022. https://thinkinsights/strategy/tqm-framework/

"TQM – How to gain competitive advantage through quality?." Think Insights [Online]. Available: https://thinkinsights/strategy/tqm-framework/. [Accessed: November 25, 2022]

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Six Sigma shares with TQM its focus on improving value chain processes to increase

I am Mithun Sridharan, Founder & Author of Think Insights and INTRVU. I am a Global Industry Advisor a leading cloud technology company, where I advise CxOs & Executives global corporations on their strategic initiatives. Previously, I served on leadership and executive roles global Management Consulting & technology firms, such as KPMG, Sapient Consulting, Oracle, and EADS. My insights on this website are based on my 1st-hand client engagement experiences across Capital Markets, Automotive and Hi-tech verticals. Please feel không lấy phí connect with me on LinkedIn.

Six Sigma shares with TQM its focus on improving value chain processes to increase

I am Indu Yadav, currently pursuing an MBA (International Business) the Indian Institute of Foreign Trade, New Delhi. I am a self-directed educational professional with comprehensive accomplishments in hosting Learning and Development programs and successfully developing and executing plans in the complex academic environment for establishing the social and academic growth for the development of every child. I am an experienced Center Head with a demonstrated history of working in the education industry and a strong consulting professional with a Bachelor of Technology (B.Tech) in Biotechnology from the National Institute of Technology (NIT), Jalandhar. I am accustomed to working in a multi-cultural environment that emphasizes inclusion and personal growth.

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Which of the following statements is true about total quality management TQM )?

In total quality management, everyone takes care of the quality of the products. Therefore keeping the quality standard is the primary responsibility of every employee in the organization. It takes the strategic and systematic approach and continuous improvement of the product.

Which of the following is true about the impact of high quality products?

Which of the following is true about the impact of high-quality products? High product quality results in high employee productivity.

Which product innovation results in gradual improvements and refinements of products over time?

The gradual improvement and refinement of existing products over time as existing technologies are perfected are called incremental product innovations.

Who is responsible for defining what constitutes quality for a product?

The Production Department is responsible for quality while the Quality Control Department is responsible for providing the tools, processes, and consulting expertise (e.g., Black Belts) to support other departments in their quality and process improvement work… Short answer EVERYONE. Tải thêm tài liệu liên quan đến nội dung bài viết Six Sigma shares with TQM its focus on improving value chain processes to increase

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