Total Quality Management (TQM): Definition, Principles and Advantages of Use
The total Quality Management System or abbreviated as TQM is a quality management that is more focused on customers by involving all levels of employees in working on continuous improvements or improvements.
Total Quality Management or TQM will be more likely to utilize effective strategies, communication and data in integrating quality discipline in operational activities and corporate culture. Simply put, TQM is a management approach that is used to touch long-term success by putting forward customer satisfaction.
In total Quality Management, all employees of the company or organizational members must be active in making improving processes, products, services and culture where they work, so that later it will give birth to the best quality in services or products to achieve the satisfaction of its customers.
9 Principal Elements Total Quality Management (TQM)
There are 8 main elements in the Total Quality Management System (TQM), here is a review:
1. Focus on customers
Customers are an important party in determining the quality of products or services produced by the company in order to meet the needs or level of the quality they want. Whatever the form of activity carried out by an organization or company, in the end it must be self-customer who determines whether all the efforts made are able to provide benefits or not.
2. Overall employee involvement
Employees are assets as well as the most important company resources in achieving all planned goals. For this reason, the active role of employees is thoroughly able to support the company in making processes and also continuous quality to be able to give birth to the best products or services for its customers.
In the framework of empowering this employee, then training and an increase in employee skills in carrying out their duties.
3. Culture on the process
The form of attention to the increase in the process is the most basic foundation in the Total Quality Management System (TQM). In this case, the process is a series of steps that begin from the acceptance of input from the supplier and turn it into output that will be sent to its customers.
4. Integrated system
Although there are many abilities and scope of work in a company that forms horizontally or vertical departmentalization, but is completely needed a system that is well integrated so that the vision, mission, strategy, policy, and the purpose of the company can be channeled properly and clearly throughout employee.
5. Strategy and systematic approach
The strategy and systematic approach is one of the important parts of the total Quality Management (TQM) in achieving all vision, mission, and company goals. Usually, this process is called strategic planning or strategy management that does the formulation or strategy planning in integrating all quality concepts on the company’s strategy as a whole.
6. Continuous improvement
The continuous increase will be able to encourage the company to analyze and give birth to a more effective way in achieving the company’s goals and also meet the expectations of all parties relating in it.
7. Decision based on facts
To get all information related to company performance, then you need data to measure it. The Total Quality Management Management System (TQM) requires the company to collect and analyze data continuously so that all decisions or policies taken are completely right.
By using data, the company can draw conclusions based on the incidence and previous results.
In the company’s daily activities, it will definitely experience any change in terms of strategies, policies, schedules or methods of implementation. This change must be discussed properly in all interested employees. Good communication or talks will also give birth to work spirit and employee motivation in achieving the company’s main objectives.
Advantages of Implementation Total Quality Management (TQM)
The main long-term benefits of total quality management are highly related to the level of customer satisfaction. The main objective is to improve quality, and identify the best quality size in accordance with customer expectations in terms of products, services, and customer experience.
Of course this will increase the competitive advantage in the eyes of consumers than other competitors. In addition, the company will also get another advantage of the implementation of TQM in its company, here is the advantage:
1. Cost savings
When implementing this implementation consistently from time to time, TQM can reduce the cost of the entire company, especially in the Scrap, Rework, field services, and reduction of warranty costs. TQM will allow companies to increase surprising profits because this cost reduction will flow directly on profit bottom-line without having to spend additional costs.
2. Customer satisfaction
By implementing this management system, it should only be a little customer complaint, why? Because companies have better products or services than other competitors and interactions in customers will also tend to be free of errors.
In addition, a high level of customer satisfaction will also increase market share, because customers may take action on behalf of the company in bringing other new customers. This is commonly called Words of Mouth. The level of sales through Words of Mouth is far more satisfying and more effective than other sales techniques.
3. Reducing defects
The Total Quality Management System (TQM) is more focused in improving quality in a process rather than checking quality into a process. This will reduce the time needed to correct errors.
4. Employee moral improvement
The success of the implementation of the Total Quality Management System (TQM) will continue to be felt and proven to be able to lead to a real increase in employee morale. This will also reduce the change of employees, and reduce costs to recruit and train new employees.
5. Making a strong company facing competition
TQM really helps you understand the level of competition and develop effective strategies when facing a trading competition. Organizational survival is a very important problem that must be considered in the midst of a strict trading competition.
Well, TQM will help you understand customers and markets, and maintain on the company to be able to fulfill competition by using TQM techniques.
6. Develop an adequate communication system
The existence of a wrong communication system and is also inadequate and poor procedures are organizational development problems. The existence of communication problems will give birth to a misunderstanding, low productivity, poor quality, duplication of performance, and low work spirit.
The Total Quality Management System (TQM) will bind staff from various parts, departments and management levels in giving birth to good communication.
7. Progress is always reviewed
TQM will help reach every process needed to develop relentless repair strategies. Efforts to improve this quality must be carried out continuously to fulfill all dynamic challenges.
Of all the above discussions, we can conclude that the Total Quality Management System (TQM) is able to give birth to profits both tangible or intangible.
The real advantage is in terms of better product quality, increasing productivity, increasing market share, and increased profit. On the other hand, intangible benefits are effective team work, increased interest in work, participatory culture, customer satisfaction, increased human relations, enhancement of communication, and able to build a better corporate image.
But, TQM also requires a period of training that tends to be significant for employees in which have interests. Because training is able to bring people away from the routine of their work, this actually has a negative short-term effect in terms of financing. Companies must assess this as a form of investment to pursue greater profits.
In addition, TQM is also able to give birth to rejection of employees who prefer on the system that is currently running or they feel that they might lose their jobs because TQM. This is because TQM is more likely to give birth to a series of continuous incremental changes.
The total Quality Management System (TQM) which is good at the company will get full management support to take the initiative to make improvements, which are supported by employees, and continue to focus on improving the process to prevent mistakes.
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