Total Quality Management
- May 08, 2013 Bain & Company guide
Total Quality Management (TQM) is a systematic approach to quality improvement that marries product and service specifications to customer performance. TQM then aims to produce these specifications with zero defects. This creates a virtuous cycle of continuous improvement that boosts production, customer satisfaction and profits.
Usage and effectiveness among survey respondents
How Total Quality Management works:
In order to succeed, TQM programs require managers to:
Assess customer requirements
- Understand present and future customer needs
- Design products and services that cost-effectively meet or exceed those needs
- 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
- Promote a zero-defect philosophy across all activities
- Encourage management to lead by example
- Develop feedback mechanisms to ensure continuous improvement
Companies use Total Quality Management to:
TQM improves profitability by focusing on quality improvement and addressing associated challenges within an organization. TQM can be used to:
- Increase productivity
- Lower scrap and rework costs
- Improve product reliability
- Decrease time-to-market cycles
- Decrease customer service problems
- Increase competitive advantage
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