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Posted on Monday, August 16th, 2010 at 5:05 pm |
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Using Total Quality Management
In order to succeed businesses build strategies to maximize productivity in every aspect of its business to please customers and to achieve organizational objectives. Some of the activities involved in total quality management include customer satisfaction, management improvement, employee involvement, and reaching organizational goals. Total quality management involves every aspect of a business including departments such as marketing, research and development, human resources, and sales. The basic principles of total quality management include satisfying the customer, satisfying the supplier, and continuous improvement to the business.
Total quality management is an important factor for businesses to succeed internally and externally. Internally, the company makes sure its products and services are up to par with customer expectations. The company also requires employees to meet those expectations by keeping workers content. Externally, business profitability can lead to market success. Publicly traded companies that have higher structure of total quality management tend to succeed more and lead to more profitable market shares.
Traditional accounting systems tend to ignore measures that include total quality management practices. These measures include the needs and expectations of the internal and external customers. Currently, a traditional accounting system divides and spreads important quality data in many accounts. Also employees are unaware of the quality of products and services through the current system. A new accounting system should take account of quality products and additional improvements. So, if a new system is created that associates total quality management needs to the quality teams in companies, the companies are able to focus on quality through accounting reports.
The first important basic principle of total quality management is satisfying the customer. If the product being sold is of poor quality or not worth buying then the purchaser with not buy anymore of the product and business will fail. In order to prevent this event businesses apply strategies to achieve customer satisfaction and loyalty to that business. The key benefit of performing customer satisfaction will lead to increased revenues and higher market value. When a customer repurchases the product a business may also gives extra benefits which will improve customer satisfaction and make them feel valued and important. In total, organizations rely on customers therefore; they attempt to meet customer needs, and try to exceed their expectations.
The second basic principle of total quality management is satisfying the supplier. A company must satisfy the supplier in order to continue business with that company and maintain a long term relationship. Some of the items the company provides for the supplier includes on time payments, clear and concise instructions, and good all around satisfactory service. As for the employees providing the product the business must keep everyone happy. Employers reward their workers through recognition, and through bonuses. When the employees are kept happy the company will receive higher productivity and be able to keep the good employees. Another way to keep internal suppliers pleased is to give them authoritative power. By allowing them to make decisions over important matters not only does it give extra motivation it takes the burden off the supervisor. The supplier’s involvement in the company is critical because it keeps employees and employers inside the company satisfied and everything can then run smoothly.
The third basic principle of total quality management is continuous improvement. When running a business, you should never be pleased with the method you are currently using because there are always ways to improve the strategies. One way to improve current companies’ strategies is to define problems and attempt to fix them in a quick and cost efficient way. Building new strategies should be encouraged to increase morale of the workers who don’t see the current strategies as efficient if used periodically. Sticking to the same fundamentals discourages workers of the company’s operations, and changing the work environment is a fine way to keep workers content. Customer feedback is not only important, but workers feedback is critical. These workers are the backbone of the products and services being given to customers. Those workers should provide feedback to upper management to improve the quality of work inside the company. Also if workers find needless items, it should be mentioned to upper levels so it can be disposed. Disposing needless items significantly improves cost efficiency.
Along with the principles of total quality management comes along the five key principles. The first key principle in total quality management is management commitment. In this stage management has to plan where the company next act will come from. Will the company add a design change or start a whole new product; these are some of the questions management will have to decide. After deciding the path to take management will have to deploy the project. While the new project is running management will oversee how everything is running and make sure everything is going as according to plan. Then after the project is finished management will look over how it went down and see if any corrections have to be made or not.
The second key principle is equipping employee empowerment in the workplace. Making sure each employee is properly trained and knows everything that the person is responsible for. Also the employee could be helpful in making suggestions to the companies’ product since they are on the front lines. Finally, allow the employee to be in a good environment with other productive employees so they can work together and produce productively and work together with strong teamwork.
The third key principle is customer focus. First it is an excellent idea to keep strong relationships between suppliers because then the company can keep having smooth raw material transactions and it will help keep all the product lines running crystal clear. A company never wants to compromise quality for a little decrease in price. If this is done loyal customers may think the product is losing its kick and will stop purchasing the product. Also make sure that your company applies customer driven standards to keep the customers you currently have and expand by adding new potential customers.
Another key principle is to make sure your company follow fact based decision making. If the decision making is made just because of an instinct or a thought, chances are the company will fail. The best decision to make is to follow from past experience; look at prior companies in the field and then you can avoid many problems and effectively run all other programs.
Finally the fifth key principle to total quality management is to apply more continuous improvement. Attempt to maintain strong product standards, and continue to improve the product by increasing its quality. Also make sure that the company keeps cross functional managements teams; do not only have one person making all the decision making, make sure there is a group of people making the decisions as to ensure that the best decisions will then be made. Lastly make sure all departments of the company are working properly and that every employee is working to their full potential.
In total, by following these steps, it can be ensured that total quality management is able to perfect companies’ internal and external controls. An important factor to keeping this practice intact is the internal and external customers. The customers make sure that quality steps are taken by the company to keep the products and services in top shape. Improvements in the company that happen continuously hopes to keep total quality management intact.
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