Total Quality Management

7 Pages 1685 Words

ads to capturing the market due to higher quality and lower prices. Therefore, a company will stay in business and provide more jobs1.



Figure 1. Deming’s Chain Reaction provides the rationale for why an organization should start with quality.


What are the specific reasons why a company should consider using TQM efforts?

(1) Become more profitable: The main effects of quality on profits are realized through lower costs due to efficiencies achieved, higher customer retention, greater attraction of new customers, and the potential to charge higher prices (refer to figure 2).
(2) Competitive position: What makes your company different from the one down the street? Why should a client keep your company or choose your company to do business with rather than your competitor? Competitive advantage is a unique strength relative to competitors, often based on quality, time, cost, innovation, or customer intimacy. If properly done, TQM and the resulting high quality can often serve as a competitive advantage because most firms have not yet adopted TQM.1
(3) Employee involvement: TQM requires total employee commitment to the process or it will fail. The whole idea is to permit the people who actually carry out the activities to continuously improve them. They are, after all, the ...