| Definition |
Total Quality Management (TQM) is a systematic approach for determining the performance requirements of products and services based on customer needs and then meeting those specifications with zero defects. By eliminating errors which increase costs and reduce customer satisfaction, manufacturing and service firms seek to continuously improve quality and increase profits. |
| Implementation |
TQM programs recommend the following steps for effective implementation:
- Assess customer requirements:
- - Understand present and future customer needs
- - Design products and services which cost-effectively meet or exceed those needs
- Deliver quality:
- - Identify the key problem areas in the process and work on them until they approach zero-defect levels
- - Train employees to use the new processes
- - Develop effective measures of product and service quality
- - Create incentives linked to quality goals
- - Develop feedback mechanisms to ensure continuous improvement
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| Purpose |
While the ultimate goal of TQM is to improve profitability, improving quality can address a number of problems within an organisation. TQM can be used to:
- Increase productivity
- Lower scrap and rework costs
- Improve product reliability
- Decrease lengthy time-to-market cycles
- Decrease customer service problems
- Increase competitive advantage
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