It is difficult to accept that TQM can improve productivity. However Japan’s marvelous economic achievement is undeniable solid evidence. Although originally applied to manufacturing organizations and
It is difficult to accept that TQM can improve productivity. However Japan’s marvelous economic achievement is undeniable solid evidence.
TQM is based on a number of ideas. It means thinking about quality in terms of all functions of the enterprise and is a start – to – finish process that integrates interrelated functions at all levels. It is a systemic approach that considers every interaction between the various elements of the organization. Thus, the overall effectiveness of the system is higher than the sum of the individual outputs from subsystems. The subsystems include all organizational functions in the life cycle of a product or services such as designing, planning, production/execution (for services) and etc.The management subsystems also require integration, including
Although originally applied to manufacturing organizations and for a number of years only used in that area, TQM is now becoming recognized as a generic management tool applicable in service organizations as well.
1) Strategy with a customer focus
2) Quality tools, and
3) Employees involvement
A corollary is that any product, process or service can be improved, and a successful organization is one that consciously seeks and exploits opportunities for improvement at all levels. The load bearing structure is customer satisfaction. The watchword is continuous improvement.
TQM concepts deal with the quality of product and service at every level of the organization. Many quality improvement projects are achieved with the same work force, same overhead and no investment in new equipment. TQM improve the culture of organization by focusing on responsibility and authorities, involvement of employees, work environment, emphasis on management behavior and other white-collar functions of an organization. In fact whenever an organization has a sequence of activities directed towards defined end result, its business process can be improved by TQM techniques like process reengineering and by identifying the waste activities. TQM always force the organizations toward the employees’ satisfaction by focus on flexible work hours, reward system on their personal recognition, positive attitude of the employees’ towards their work and duty assigned and emphasis on education and training of the employees.
TQM even deals with various wastes produced at various levels. In TQM organization, management must be aware that the quality of the product or service must be improved continuously to satisfy or delight the customer otherwise organization will lose market share. Automation and other productivity enhancement tools will not be so helpful for an organization in this regards. TQM advocates the development of supplier and customers relationships, supplier development, a philosophy very much emphasized Just-in time production system, getting it right first time, zero defects, prevention, the internal customers, competitive bench marking, cost of quality team work, self management, use of various quality tools, quality management system like ISO 9001:2008 and self inspection.
TQM improve the quality, make the positive changes in culture, reduces the wastage, satisfied the employees and customers, improve the processes and advocates the new approaches. All of these lead towards more productivity of an organization. The relationship between output and input is productivity. Productivity may be of labor productivity, capital productivity, material productivity and value addition per employee. Increase productivity definitely increases the profitability of an organization.
In most organization a decision to increase their profit by certain level would be achieved by increasing the sales then increasing the plant output ultimately increasing the work force to that level assuming that they are operating at maximum efficiency. This is not an approach by TQM claiming organization. However it is more likely that they would be able to achieve the increased profit without any increase in capital expenditure or work force by addressing the quality of their operation, improving quality of their designs and the quality of their supplier. An organization can link its profitability with TQM by taking the following steps.
1. Select improvement projects that are logically connected to the business goals and objectives you want to accomplish. (Pick the Right Project)
2. Make the Organizational changes required to eliminate the Non value-added activities and waste caused by poor quality and achieve higher quality. (Stop Making Mistake)
3. Re-deploy resources from Non value-added activities and processes into value-added activities and processes to trap and hold productivity gains from higher quality.
4. Focus the organization’s business and quality vision on the realities of the market place and the needs of the customer to trap and hold the profitability gains from higher productivity. (Focus on Evolving Customer).
The other benefits of TQM include greater competitive advantages and massive financial saving. Quality cost analysis provides an organization with valuable information for cost saving opportunities and encompasses the costs of prevention, appraisal, internal failure, external failure, exceeding customers’ requirements and lost opportunities.
The ultimate goal of TQM is to delight the customers. So the target of each activity of organization is centered towards this goal with an intense desire to achieve victory for increasing marketing share, development of loyal customers and ultimately the more profitability.
Shahid Hafeez Shahid (MS TQM, M.Sc. Hons Food Technology)
Quality Assurance & Product Development Manager,
A’Safwah Dairy & Beverage Division, Dhofar Cattle Feed Co. Salalah, Sultanate of Oman