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    Benefits of TQM

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    olanya ricahard
    The document outlines several benefits of total quality management (TQM) including less product defects, satisfied customers due to high quality products, and lower costs from reducing defects and support. It also discusses that TQM develops cultural values around quality management and continuous improvement. An example provided is how Toyota adopted TQM and statistical quality control practices to improve product and work quality across the organization.

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    Benefits of TQM

    Uploaded by

    olanya ricahard
    154 views2 pages
    The document outlines several benefits of total quality management (TQM) including less product defects, satisfied customers due to high quality products, and lower costs from reducing defects and support. It also discusses that TQM develops cultural values around quality management and continuous improvement. An example provided is how Toyota adopted TQM and statistical quality control practices to improve product and work quality across the organization.

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    The document outlines several benefits of total quality management (TQM) including less product defects, satisfied customers due to high quality products, and lower costs from reducing defects and support. It also discusses that TQM develops cultural values around quality management and continuous improvement. An example provided is how Toyota adopted TQM and statistical quality control practices to improve product and work quality across the organization.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    154 views2 pages

    Benefits of TQM

    Uploaded by

    olanya ricahard
    The document outlines several benefits of total quality management (TQM) including less product defects, satisfied customers due to high quality products, and lower costs from reducing defects and support. It also discusses that TQM develops cultural values around quality management and continuous improvement. An example provided is how Toyota adopted TQM and statistical quality control practices to improve product and work quality across the organization.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Important/Benefits of TQM

    The benefits of TQM include:

     Less product defects. One of the principles of TQM is that creation of products
    and services is done right the first time. This means that products ship with fewer
    defects, which reduce product recalls, future customer support overhead and
    product fixes.

     Satisfied customers. High-quality products that meet customers’ needs results in


    higher customer satisfaction. High customer satisfaction, in turn, can lead to
    increased market share, revenue growth via upsell and word-of-mouth marketing
    initiated by customers.

     Lower costs. As a result of less product defects, companies save cost in customer
    support, product replacements, field service and the creation of product fixes. The
    cost savings flow to the bottom line, creating higher profit margins.

     Well-defined cultural values. Organizations that practice TQM develop and


    nurture core values around quality management and continuous improvement. The
    TQM mindset pervades across all aspects of an organization, from hiring to
    internal processes to product development.
    Examples of TQM

    Automobile manufacturer Toyota is one example of TQM. The adoption of TQM and
    kaizen at Toyota led to higher product and work quality at all levels of the
    organization. Toyota adopted a related practice called statistical quality control (SQC)
    in 1949. In 1951, Toyota launched the Creative Idea Suggestion System, which was
    based on a suggestion system used at Ford.
    Why Is Total Quality Management Important to an Organization?

    Nichols says that TQM tools and principles acquire power not when an organization
    creates a dedicated quality department, but when it includes the whole company in the
    pursuit of high quality. An example is the quality circle, in which workers directly
    involved in a process brainstorm to discover solutions. “People are a fabulous resource
    that is frequently underutilized. The leadership often doesn’t recognize the value that
    they bring to the everyday workplace. Employees know how to fix problems,” asserts
    Nichols. In addition to tapping a native resource, implementing a TQM philosophy can
    help an organization:

     Ensure customer satisfaction and customer loyalty


     Ensure increased revenues and higher productivity
     Reduce waste and inventory
     Improve design
     Adapt to changing markets and regulatory environments
     Increase productivity
     Enhance market image
     Eliminate defects and waste
     Increase job security
     Improve employee morale
     Reduce costs
     Increase profitability

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