Advantages & Disadvantages of Total Quality Management Strategies
Total quality management (TQM) strategies aim for long-term success by enlisting members of an organization at all levels to create customer satisfaction by making the best products possible. There aren’t any real disadvantages to successful implementation of a TQM strategy. However, if your organization practices TQM strategies halfheartedly, you will inevitably run into trouble,
What are the Principles of TQM?
A successful TQM implementation will always follow eight key principles:
- TQM is focused on the customer. The ultimate measure of success is the customer’s satisfaction with the product.
- All employees must be involved in the process at a high level to ensure success.
- Strategies are focused on processes, and on the steps necessary to complete them.
- The parts of a process should be smoothly integrated into a larger, cohesive process.
- Processes should be organized strategically, with an eye toward both short- and long-term goals.
- Strategies should aim toward continual improvement of products and processes.
- Facts and data are indispensable for making decisions and implementing changes.
- Effective communication plays a vital role in keeping an organization running smoothly, both during day-to-day operations and in times of organizational change.
Advantages of TQM: Better Products at Lower Cost
TQM leads to better products manufactured at lower cost. The focus on using high quality information to improve processes reduces waste and saves time, leading to reduced expenses that can be passed along to clients in the form of lower prices. Companies that successfully implement TQM are able to reduce variability, providing the consistency that customers value. This creates customer loyalty and earns their continued business.
The emphasis on engagement at all levels leads to employee engagement, which reduces turnover and saves money on training and mistakes due to inexperience.
Disadvantages of TQM: Requires Deep Commitment
One of the main disadvantages of TQM is the need for company-wide commitment to quality improvement, and the difficulty of achieving this commitment. All levels of management must be on board for the program to be truly successful. Any lack of effort or resources will undermine the success of a TQM program, causing negative ripples throughout the company.
If management fails to fully implement a TQM program, its partial efforts are bound to fail. For example, just limiting the initiative to personnel training without making use of statistical tools to measure and evaluate process changes will create frustration and inadequate results. Training programs must be taken full circle through evaluations and measured outcomes. One reason some companies focus on training is because it is tangible and easy to show that something was done. But unless training is followed up with ongoing coaching, the knowledge and skills it provides are unlikely to stick.
