Aspects of Total Quality Management

1 Total Quality Management

Paper Outline I. Introduction II. Aspects of TQM III. Importance of Total Quality Management IV. Benefits of introducing TQM at BR Engineering V. Recommendations VI. Conclusion

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2 Industrial Management

Introduction With the intensifying competition in the global markets, organizations require systems which integrate all sectors so that managers can improve the performance of all departments of an organization. Total quality management (TQM) is applied in organizations to improve the performance of all sectors as well as link all stakeholders of the organizations for the continuous improvement of the processes undertaken in an organization. TQM is applied to improve the performance and profitability of an organization for the benefit of all stakeholders. The quality and productivity of an organization is improved by applying the aspects of total quality management1. Therefore, total quality management helps improve all the sectors of an organization and this helps satisfy the needs of all stakeholders.

Aspects of TQM Customer satisfaction is achieved by identifying specific needs of the customers and matching these needs with the products offered in the market. TQM helps an organization to learn market demand and any changes that may happen in the needs of the customers. Matching the needs of customers is important because it increases the sales volume of a company. Customer loyalty is achieved when an organization matches the needs of the customers to the products manufactured.

Through TQM an organization is able to learn the market changes and the direction of demand and this helps identify the specific needs of the customers. Organizations carry out market research so as to identify the needs of the customers and this enhances development of products according to the needs of the customers 2.

The quality of products is improved through TQM and this helps an organization increase the demand for its products. The quality of a product is improved by using innovative technologies. When an organization applies TQM it encourages the employees to become innovative 3. Innovation brings about manufacturing of new and better products in the market because technology is applied appropriately. Quality is measured in terms of the aspects associated with the products of a company. Quality is achieved when the products meet the customer’s demand. The quality of a product determines its market position and hence the sales volume made by a company4.

Leadership in an organization is achieved when the managers apply principles of total quality management. Through leadership the managers are able to identify the specific skills required to perform certain tasks in the organization.

Leadership helps the managers to influence their subordinates to contribute willingly to the goals of the organization. Managers are able to achieve the goals by working with and through other people by learning the needs of various stakeholders of the organization. Leaders achieve goals by providing their subordinates with the required resources. Identifying the specific needs of workers is important so that conflicts can

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Oakland, John S. Total quality management: text with cases. Butterworth-Heinemann, 2003. p. 183-198. ISBN 0750657405, 9780750657402.

Naagarazan, R. S. Total Quality Management. New Age International, 2005. p. 261-295. ISBN 8122415741, 9788122415742.

Mukherjee, P. N. Total Quality Management. PHI Learning Pvt. Ltd., 2006. p. 92-98. ISBN 8120330560, 9788120330566.

Oakland, p. 183-198.

3 be reduced. When conflicts arise in the organization, managers are able to resolve them amicably by applying appropriate leadership skills 5.

Teamwork is an important ingredient of TQM and it involves establishing group work among the employees of an organization. Workers in an organization have different needs and this may bring division among employees. Uniting all workers of an organization can be done by creating teamwork. Teams within the organization work by focusing on specific goals and creating synergies among the team members. Working in teams helps the employees with similar skills to group themselves together. As such, the members of a team can develop their skills by learning from each other. Training employees in a team becomes easier because they have a similar foundation about the skills required in a particular area of performance. The organization is able to acquire talented personnel as well as retain the existing ones through teamwork. To achieve quality in the production process as well as improving the productivity of the employees requires an organization to improve the talents of team members as well as create a favorable work environment6.

Suppliers provide goods and services to be used in the production process.

Suppliers are very important to an organization because they determine the quality of products manufactured and sold to the customers. Establishing partnerships with suppliers who are able to supply quality goods and services is very important to an organization because this will reduce production costs as well as improve consumer demand due to the improvement on the quality of products offered in the market.

Total quality management is a process that helps managers to select the best suppliers and this helps reduce losses accompanied with the production and marketing process. When an organization has suppliers who are able to provide quality goods and services, the reputation of the company improves and this helps increase customer loyalty. The market position of a company will depend on the quality of goods offered and this can only be achieved by obtaining quality goods and services from suppliers7.

Today many organizations are operating in multicultural environments and there is need to develop strategies of integrating different cultures into the systems of the organization. Cultural diversity is being experienced in many organizations and there is need to have systems which allow all stakeholders to understand the cultures of the different groups existing in the organizations. Culture is composed of the values, norms and practices accepted by people in a given environment. When operating in a multi-cultural environment it is important to understand the cultures of different people so as to reduce conflicts8. Cultural conflicts may hinder the achievement of goals of an organization and this can be reduced by enhancing cultural understanding among different stakeholders of the organization. TQM helps managers to learn the cultures of all stakeholders because they are involved in all activities of the organization. To achieve the goals of an organization the culture should be transformed to achieve these goals in the most efficient manner. The 5 6

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Naagarazan, p. 261-295.

Peratec Ltd. Total quality management: the key to business improvement. Springer, 1994. p. 192-206. ISBN 0412586401, 9780412586408.

Goetsch, David L., and Stanley Davis. Implementing Total Quality. Upper Saddle River, N.J.: Prentice-Hall, 1995. p.

245-259.

Subburaj. Total Quality Management. Tata McGraw-Hill, 2005. p. 128-132. ISBN 0070223971, 9780070223974.

4 different cultures in an organization are unified by the application of TQM to achieve goals9.

Importance of Total Quality Management An organization is able to develop better strategies for development and this makes operation of activities more efficient. TQM improves all functional areas of an organization and this makes fulfillment of goals more possible. To develop better strategies, innovative ideas are required and TQM encourages stakeholders of an organization to come up with better and innovative technologies. Innovation is a basic requirement for an organization to achieve a competitive position in the market.

With modern business environments, innovation is an important aspect which many organizations are applying to achieve better market positions in the global scene.

Innovations can only be achieved by integrating new technologies in the production processes of an organization. It is only through innovation that an organization can develop quality products which match the demands of the consumer 10.

TQM improves efficiency in an organization. Efficiency refers to the ability of an organization to achieve its goals within the timeframe provided. The goals of an organization are effectively achieved when an organization has efficient systems.

TQM focuses on the development of all departments of an organization and as such organizations are able to achieve all the goals. By the application of TQM, managers ensure that there is continuous development of all systems of an organization and this helps achieve the overall goals within the time period provided. Efficiency helps satisfy the needs of the customers as well as improve the status of the employees 11.

It has been established that TQM improves the performance of both service and manufacturing sectors of an economy. TQM can be applied in any industry and this is important in that an overall growth in the economy is achieved by applying the mechanisms of total quality management. The service industry applies the policies of TQM by integrating important aspects of development into the management of all activities in the service industry. Managers can apply better technologies to improve the provision of services to the customers and this helps improve the level of customer satisfaction. The manufacturing industry has also benefited from TQM in that managers can use modern technologies in the development of better products.

Innovation in the manufacturing industry has been achieved by the development of better and innovative technologies which help reduce costs. Therefore, TQM has made it easier for organizations to improve the level of profitability 12.

Cross-functional activities are easily developed when TQM is applied in an organization. There are many departments in an organization and it is important that managers integrate all the functions for the achievement of all goals of an organization. Achieving all goals requires the managers to have good systems of linking all activities. The application of TQM helps managers to communicate efficiently with all departmental heads to check the progress towards achieving goals. Cross-functional processes require using better strategies of integrating all sectors of an organization. Neglecting any of the processes may cause major losses to the organization. It is important for managers to have a better system of 9

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Vadim Kotelnikov, Total Quality Management (TQM): An Integrated Approach to Quality and Continuous Improvement. 2001. p. 1.

Naagarazan, p. 261-295.

Oakland, p. 183-198.

Jack P. Pekar, Jack. P. Total quality management: guiding principles for application. ASTM International, 1995. p.

210-228. ISBN 0803120621, 9780803120624.

5 understanding all the processes involved in an organization so that they can develop strategies which integrate all sectors for the achievement of all goals which have been established by an organization 13.

Strategic alliances are made possible when the partners use TQM in the operation of their businesses. Inter-organizational collaborations require managers to learn all the activities involved in the alliances so that they can avoid confusion.

Tasks are allocated to different individuals when strategic alliances are formed and it may become challenging to understand all the processes. A culture of collaboration is developed when organizations create strategic alliances and this helps make better achievements. Collaborations are essential in implementing the goals of a strategic alliance because different organizations are involved in the activities of the alliance. TQM helps organizations forming strategic alliances to improve performance by creating synergies through proper collaboration 14.

Benefits introducing TQM at BR Engineering BR Engineering is a small medium sized organization that has specialized in precision machining. The company uses traditional engineering aspects of product quality. The introduction of TQM process will be of great benefit to the organization because it will be able to develop better strategies of improving the performance of the company as well as uniting all the stakeholders associated with the company.

Efficiency in production will be improved because the company will be able to adopt better strategies of production. Total Quality Management ensures that an organization has better production systems which lead to production of quality goods. Quality products can only be achieved by developing efficient methods of production. In addition, efficiency will help the company have better relationship with its customers because they will get better quality products. Therefore, BR Engineering will improve demand for its products.

By adopting TQM strategies the management of BR Engineering will be able to establish partnerships with suppliers who can offer quality goods and services.

Total Quality Management encourages an organization to develop quality products and this can only be achieved by acquiring quality supplies. The company will be very selective about the suppliers because companies which cannot provide quality products in a timely manner will be shunned away. As such, the company will be able to deliver quality products to the customers in the required time period. The TQM system will help the company improve the image of its brands because the products offered in the market will be of high quality.

The competitiveness of BR Engineering will be improved not only in the local market but also in the global markets by adopting the TQM strategy. Production of quality products creates a good image about the company. Adopting TQM strategies helps the management reduce the production costs involved because there is efficiency and effectiveness in the systems of production. The profitability of the company increases when the costs of the company are reduced. In addition, the company can offer its products at a reduced price and products which have price elasticity of demand acquire better market position. BR Engineering will benefit from the TQM system by acquiring a higher competitive position in the local and global market.

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Hakes, Chris. Total quality management: the key to business improvement: a Pera International executive briefing.

Springer, 1991. p. 102-132. ISBN 0412357305, 9780412357305.

Hakes, p. 102-132.

6 The management of BR Engineering should transform the culture of the company to match it with the values and goals which have been created by the stakeholders of the company. The culture of a company is developed by the stakeholders and it is important that the management should encourage all the stakeholders to adopt a new culture that will favor the achievement of the goals set by the organization. BR Engineering should come up with policies which ensure that the culture of the company is directed towards achievement of the set goals. The introduction of a new culture takes time and the management should be patient about developing the appropriate culture. BR Engineering will benefit from the strategy of introducing culture by acquiring new cultures which will encourage the achievement of the goals set by the stakeholders. A new culture will improve the image of the company in the public and all stakeholders will achieve better returns from the company.

To implement the strategies of TQM, the company should encourage the application of innovative technologies in the production of products. The quality of products manufactured by the company can only be improved by developing innovative technologies which will promote the sales of the company. Innovations are done by adopting better technologies which lead to development of better products. The market position of the company will be determined by the quality of the products offered in the market. BR Engineering will benefit from TQM because the company will be able to develop innovative products under this system. This strategy will improve the sales volume of the company as well as create customer loyalty for the brands of the company15.

It is through acquiring knowledge about TQM that the management of BR Engineering will develop good leadership skills. Leadership skills will help the management to adopt better strategies which involve all the stakeholders of the company. By adopting good leadership, the organization will benefit from the invested resources because maximum utilization of these resources will be possible.

The management of the company will be able to encourage and influence the subordinates to contribute willingly towards the achievement of all goals of the organization. By adopting TQM strategies the company will be able to acquire quality leadership and management of the human resources. Employees are important in the achievement of goals of the organization and developing quality leadership strategies will help reduce conflicts among the workers.

Teamwork in the BR Engineering will help the employees improve their skills because they will be able to have better skills. Continuous training to the employees is encouraged when TQM is applied so that the quality of output is improved.

Adopting TQM strategies will also create synergies among the employees because they will be able to learn from each other. Teamwork will also encourage innovation because the employees of the company will be able to combine their skills in the development of quality products. Conflicts among the employees are easily resolved when they are grouped in teams than when there is no teamwork. This strategy helps reduce any hindrances to successful implementation of the goals of the organization. Therefore, teamwork will encourage the production of quality products as well as improving the productivity of the company.

Recommendations 15

Zimmerman, R. E., L. Steinmann, and V. Schueler. “Designing Customer Surveys that Work,” Quality Progress.1996. p. 22–28.

7 As a recently employed worker in the position of a graduate trainee Engineer at BR Engineering, I recommend that the company should adopt the TQM strategies because there are many benefits associated with this strategy. The benefits to be acquired from adopting this new strategy are improved quality and productivity of the company. This will be achieved through the development of better leadership, a favorable culture, introduction of innovative technologies, establishing partnership with good suppliers among other benefits. The company should adopt TQM so that all the goals can be achieved effectively and within the time provided. Therefore, adopting TQM strategies will help the company satisfy the needs of all stakeholders of the company.

Conclusion Total quality management helps improve all the sectors of an organization and this helps satisfy the needs of all stakeholders. Organizations develop better production systems when they implement TQM strategies. Adopting TQM strategies will help BR Engineering develop quality products as well as have efficient production methods. BR Engineering will benefit from TQM by creation of innovative technologies, improved teamwork, and adoption of better leadership strategies. The culture of the company will also change because the company will be shaping its entire systems to achieve a competitive position in the local and global markets. To achieve future goals, the management should ensure that it has incorporated TQM strategies in all activities because there are many benefits associated with these strategies.

8 Bibliography Goetsch, David L., and Stanley Davis. Implementing total quality. Upper Saddle River, N.J.: Prentice-Hall, 1995.

Kanji, Gopal K. Total quality management: proceedings of the first world congress.

Springer, 1995. ISBN 0412643804, 9780412643804.

Kotelnikov, Vadim. Total Quality Management (TQM): An integrated approach to quality and continuous improvement. 2001. Retrieved December 15, 2010 from http://www.1000ventures.com/business_guide/im_tqm_main.html.

Mukherjee, P. N. Total Quality Management. PHI Learning Pvt. Ltd., 2006. ISBN 8120330560, 9788120330566.

Naagarazan, R. S. Total Quality Management. New Age International, 2005. ISBN 8122415741, 9788122415742.

Oakland, John S. Total quality management: text with cases. ButterworthHeinemann, 2003. ISBN 0750657405, 9780750657402.

Pekar, Jack. P. Total quality management: guiding principles for application. ASTM International, 1995. ISBN 0803120621, 9780803120624.

Peratec Ltd. Total quality management: the key to business improvement. Springer, 1994. ISBN 0412586401, 9780412586408.

Subburaj. Total qality mnagement. Tata McGraw-Hill, 2005. ISBN 0070223971, 9780070223974.

Zimmerman, R. E., L. Steinmann, and V. Schueler. “Designing Customer Surveys that Work,” Quality Progress.1996.