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Management Consulting/IGNOU - MS96- DEC2015 SEM- TOTAL QUALITY MANAGEMENT

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Question
Why is strategic planning important for implementing TQM? Explain using an example from the business world.

Chose an organization of your choice having a specific quality programme. Discuss the quality programme followed by the organization and how it has helped the organization sustain in the competitive world.

Answer
Strategic planning concentrates on “doing the right thing” or “what business the organization is involved in.” It focuses on the effectiveness of the organization. It answers the question, “Are we in the right game?”  On the other hand operational planning deals with “doing things right” or “how the organization is performing its tasks”. It focuses on the efficiency of the processes. It answers the question, “Are we playing the game right?” They are both very important to the success of an organization but one should not be done without the other. Because the idea of strategic planning may be a new concept to some we will spend the balance of the article giving an overview of how this planning process works.
Strategic Planning
If there is one word that can be used to define strategic planning it is the word “vision”. As a formal definition:
Strategic planning is the analysis of the threats and opportunities facing a business, the process of creating a vision of the company’s desired future position, and identifying actions to bring about the desired outcome.
To put it simply this type of planning understands the environment, creates a new vision, and develops an action plan.
Strategic planning focuses on defining and creating a new future for the organization. It is the process where business leaders look into the long-term future and attempt to understand the internal and external business, political, and legal environments that will face their organization. Once this future concept is defined an action plan is created to make the vision of the future become a reality. After completion, this strategic plan is shared with the organization so that they too will own the vision and make it a part of their daily actions. In general, the strategic planning process consists of the following steps:
Step 1 – Defining the Business:
In this part of the process the business leaders create the future image of the company. This is a statement that defines the essence of the business, its reason for being. This statement can be a set of values or a mission statement. Either one can facilitate this process. To be effective these statements should be short, concise, understandable, and applicable. In other words, if all employees are to internalize and execute value or mission statements the declaration must make sense and be credible. At a minimum the proclamation should define the following: “Who we are, who our customer is, what we do, and how we will do it.”
Step 2 – SWOT Analysis:
This is the perhaps the longest task performed in the strategic planning process. It includes the identification of current business strengths and weaknesses as well as the opportunities and threats that face it currently and potentially in the future. Examples of the items considered in each category are shown below:
Strengths: Excellent staff, good facilities, prime location.
•   Weaknesses: Staff turnover, supervision weaknesses, and marketing experience.
•   Opportunities: Changing demographics, pending legislation favoring business.
•   Threats: Competition, new government regulations, facility upgrades required, risk management.
This analysis is the basis for creating most of the plans that will shape the future actions of the organization. Listed below are different areas of the business that should be considered in the SWOT analysis. In each category are the types of questions that should be asked to determine if there are threats or opportunities that need to be addressed in the planning process.
Marketing:
1.   Are demographic changes coming that will impact the business?
2.   Are political or legal changes coming that will impact the business?
3.   How can the organization capitalize on these changes?
4.   Are there new products or services that should be considered?
5.   Should some current products or services be discontinued?
6.   Are marketing efforts creating demand for products and services?
7.   Are the targeted customers being reached in a cost-effective manner?
Competition:
1.   Are they providing new products and services that will impact us?
2.   Is our market share being eroded?
3.   Are there opportunities we can act on that our competitors cannot?
4.   Are we delivering the right value principle for our market and customers?
Facilities:
1.   Capacity – Are current and future needs met?
2.   Do the facilities meet current regulatory requirements and anticipated future requirements?
3.   Are safety or health risks at the facility present that need corrected?
4.   Lease versus buying – long-term vs. short-term commitments. Should this be reviewed?
5.   Is the equipment adequate and productive enough to meet current and future needs?
6.   Are the budgets for maintenance, improvements and upgrades adequate?
Capacity:
1.   Will the current facilities support strategic growth plans?
2.   Are adequate levels of qualified management and staff available to support plans?
Personnel:
1.   Is a positive culture being created and supported by management and other personnel?
2.   Are desired qualifications, certifications and licensing requirements being met?
3.   Are training needs being addressed with employees?
4.   Is employee retention or motivation a problem?
Finance:
1.   Does the incorporated structure provide liability protection to owners?
2.   Are tax benefits being optimized?
3.   Is the current credit line adequate to support growth?
4.   Are other financing arrangements needing review?
Government Regulations:
1.   Are upcoming changes planned for government spending in current programs?
2.   Are planned changes in regulations coming that will affect business?
3.   Are new government spending programs planned and can the legislation be influenced?
4.   Is our business in the position to capitalize on this new legislation?
Quality:
1.   Is a formal quality program in place?
2.   Is quality defined from the customer’s viewpoint?
3.   How does the organization perform against the established quality parameters?
4.   Is quality non-conformance impacting the business?
5.   How does the organization make the improvements required?
Risk Management:
1.   Are formal safety programs and training programs in place and are they documented?
2.   Are environmental issues being addressed through training and reporting?
3.   Have background checks and screening programs for personnel been implemented?
4.   Are training programs in place for reducing risk in the legal, environmental and health areas?
5.   Is the organization staying informed of local and federal regulations, current and proposed?
6.   Is the organization staying politically active in order to represent business interests on pending legislation?
7.   Does the organization need to implement programs in anticipation of enacted legislation?
These types of questions will increase the organization’s understanding of the market, its customers, the external legal and political environment, and its own business.  Armed with this information on each area of their organization the business leaders can move on to the next step in the process.
Step 3 – Creation of Strategies:
In this step, the management team will develop strategies to eliminate or reduce the impact of threats while simultaneously creating plans to capitalize on the opportunities.  This step will factor in the organizational strengths and how they can be used to their advantage. In addition, strategies will be created that will either strengthen weaknesses or negate the negative impact on the organization. The goal here is to brainstorm and create innovative strategies to support the future vision of the business. These will be overall themes and strategies and will not address exactly how or when they will be implemented.
Step 4 – Action Plans for Implementation:
This step is where the strategies created in the previous process are evaluated.  This evaluation would include costs, implementation time, resources required and the expected benefits to the organization. Then the specifics of each strategy are compared one against the other and they are prioritized based on how well they support the overall strategic direction established for the organization. Once prioritized, each strategy will have a specific action plan created for implementing it. This action plan should include detailed actions, a timetable for the completion of each step, and the person or group responsible to carry out the activity. When completed this action plan will be the roadmap to a new future for the organization.  
Step 5 – Review, Check, and Adjust:
Once the strategic implementation plan is in process, regular monthly or quarterly meetings must be held to insure the action plan is being executed properly. At these sessions progress reports are presented and, if needed, corrective actions are generated to get the assignments back on schedule. In addition, any new strategic issues can be addressed and, as necessary, the implementation plan can be modified to factor this new information into the action plan. This periodic review process is critical to making the strategic vision become a reality. Without this ongoing accountability the strategic plan will never be fully implemented.
Step 6 – Moving from Strategic to Operational Planning:
Once the strategic plan has been fully implemented the actions will come under the operational planning and management disciplines. As stated above the strategic plan establishes how the company defines itself and its overall operating philosophies. Operational planning takes these philosophies and makes them into daily management practices and disciplines. Often operational planning problems become issues that must be addressed later at a strategic level and the planning loop is initiated again to deal with this new issue.
Bringing it Home
In summary, there are many problems that are associated with poor planning including the propagation of a reactive business culture and the associated personal and financial hardships. The pain of these hardships should provide the impetus for organizations to plan better. Like the successful painter the organization must create a vision for the future. Once they get in front of their organization with good planning practices they can begin to anticipate and avoid problems, take advantage of business opportunities and lead their organizations to financial success.  If this planning process is performed successfully business leaders will not step away from the practice. I encourage each reader to consider how they currently manage their business and, if they are not satisfied with the performance of the organization, begin today to implement a program to institute strategic planning disciplines.
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TQM   IS   AN  INTEGRAL  PART  OF  STRATEGIC   PLANNING.

WHAT  IS  THE   CORPORATE  STRATEGY  IS    SEEKING

- Access wider geographic markets by complying with a  recognised standard.
- New customers who require ISO 9000 compliance.

- Reduce customer rejection of products/services because of poor quality.
- Improve customer loyalty.

- Reduce or eliminate repetition of work.
- Reduce warranty and customer support costs.
- Reduce management time spent on “putting out fires”.
- Improve productivity by “doing it right the first time”.
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TO  THIS  END,  THE  MANAGEMENT  INTRODUCES  VARIOUS
SYSTEMS /  TECHNIQUES  TO  ACHIEVE  ITS  OBJECTIVES.


WHAT  DOES  TQM   paradigm  OFFER :

-Developing a corporate quality policy.
-Designing and implementing a quality system.
-Developing measures for capturing quality costs and benefits from improved quality.
-Encouragement of teamwork and participation of the management and the workforce.
-Continuous education and training to foster employee attitudes, management beliefs and value system.
-Usage of problem solving tools and techniques.
-Benchmarking of business results and processes.
-Improvement of managerial and technical processes.
-Integrating the customers’ and suppliers’ expectations.
-Carrying out quality audits and reviews on a continuous basis.
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WHAT  ARE  THE  BENEFITS  OF  TQM   TO  AN  ORGANIZATION.

TQM   leads to a synergy of benefits to  the  firm.
1.A philosophy that improves business from top to bottom
[everybody  in  the organization  is involved  towards the same objective]

2.A focused, systematic and structured approach to enhancing customer's satisfaction
[helps  to increase  sales  /  profit  of  the  organization ]

3.Process improvement methods that reduce or eliminate problems i.e. non conformance costs
[improves  the   efficiency  of  the  process  and  better  results]

4.Tools and techniques for improvement - quality operating system
[improved  working  methods  for   improves  results ]

5.Delivering what the customer want's in terms of service, product and the whole experience
[helps  to  tailor  the  product/service  to match  customer  requirements and the
customer  satisfaction]

6.Intrinsic motivation and improved attitudes throughout the workforce
[improved  work conditions  means  employees  are  motivated  to  perform better]

7.Workforce is proactive - prevention orientated
[it  helps  to  prevent  accidents / quality   rejects  etc ]

8.Enhanced communication
[it  encourages  discussion  among  employees/  between managers and employees]

9.Reduction in waste and rework
[continual discussion /continual  improvements / proactive  attitude
helps  to  prevent  waste / rework/ reduces  rejects.]

10.Increase in process ownership- employee involvement and empowerment
[setting  of  quality circles/ problem solving teams  improves
the  employee  involvement    and   empowers  employee to make  decisions]

11.Everyone from top to bottom educated.
[TQM involves  continual  training  at  all  levels  which
helps  the  development  of  the  individuals ]

12.Improved customer/supplier relationships (internally & externall)
[TQM  takes   the  system  across  all  working  units
including  all  departments internally  and  external   stakeholders integration]

13.Market competitiveness
[TQM  helps  to  improve  the  customer  servicing  and  helps
the  competitive  positioning  of  the  company in   the  market]

14.TQM   Through education, management and staff are given the tools to achieve all the above. Education provides for guided innovation from all levels. Training, which is a cost, shows a commitment by management .

15. TQM    HELPS  Individual staff self improvement, which is a motivator.
IN   SUMMARY,
Staff will collectively provide continual improvement of company  systems. By working together, communication/departmental barriers will be broken down. The standard of service can be set, maintained and then improved. Suppliers will be working with rather than working for the company . The standard of staff and management will improve through education. The adoption of a new attitude to work, by everyone embracing the ideas of TQM .

Direct benefits of TQM    are as follows:
- Increased pride of workmanship among individual workers
- Increased readiness
- Improved sustainability caused by extended time between equipment failures
- Greater mission survivability
- Better justification for budgets because of more efficient operations
- Streamlined maintenance and production processes.
The bottom line of TQM    is “more bang for the buck.”
The concept behind   TQM   revolves around a change from management by results to management by process (quality) improvement. Managers are tasked with con- tinuously improving each and every process in their organization. That means combining quantitative methods and human resource management techniques to improve customer-supplier .
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When a committed organisation applies  TQM  proven approach, the benefits can be profound

A philosophy that improves business from top to bottom
- A focused, systematic and structured approach to enhancing customer's satisfaction
- Process improvement methods that reduce or eliminate problems i.e. non conformance costs
-Tools and techniques for improvement - quality operating system
- Delivering what the customer want's in terms of service, product and the whole experience
- Intrinsic motivation and improved attitudes throughout the workforce
- Workforce is proactive - prevention orientated
- Enhanced communication
-Reduction in waste and rework
-Increase in process ownership- employee involvement and empowerment
-Everyone from top to bottom educated
- Improved customer/supplier relationships (internally & externally)
- Market competitiveness
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Although implementing demand-driven flow is complex, most programs will proceed from analysis to experimentation and pilot implementation. The following steps are a backbone for planning and executing the effort.
Form a team. The team should include internal supply chain contributing organizations. In most companies, these include sales, production, logistics, engineering, and MIS. Suppliers and customers should also be welcomed. Sales should be expected to make the following contributions:
• Customer perspectives to be used in designing the demand-driven flow systems
• Competitor intelligence
• Price points, that is, what customers will pay for extra services
• Products to include and exclude from demand-driven flow
• Access to partners in the supply chain for other functions, such as manufacturing
• Forecasts for product sales and market penetration or retention

Set goals. Top management should set the tone with general direction. The team should provide specific objectives as it moves forward. Their goals should be ambitious, such as those in the IBM case. If the project involves cooperative efforts across several companies, then all should agree with the goals.

Map the supply chain. Understand the cost, lead-time, and value-adding steps as products move through the supply chain. This includes incoming material, manufacturing, and distribution channels, as well as paperwork, approvals, and engineering time.
Classify you products. Group products by factors tailored to the business. Examples include end user delivery requirements, profit margins, sales levels, economics of manufacture and distribution, reliance on suppliers, and so on. This will result in about five to ten categories around which you can build strategies.
Develop strategies. Each of the product groups from the step above will have a distinct strategy. This strategy will include make/buy mix, stocking, economic lot sizing, and the role of supply chain partners. Implementation can begin either with specific groups (a vertical approach) or with multiple groups focused on a step in the chain, like production or incoming distribution (a horizontal approach).



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QUALITY  IS   AN  INTEGRAL  PART  OF  STRATEGIC   PLANNING.

The organisation  I   am  are referring to

The  organization, I am  familiar  with  is  a
-a  large  manufacturer/ marketer of  safety products
-the products  are  used  as  [personal  protection safety] [ industrial  safety]
-the products  are  distributed through  the distributors as well as  sold directly
-the  products  are  sold  to various  industries like  mining/fireservices/defence/
as  well  as  to  various  manufacturing  companies.
-the  company employs  about  235  people.
-the  company  has  the following  functional   departments
*marketing
*manufacturing
*sales
*finance/ administration
*human resource
*customer  service
*distribution
*warehousing/  transportation
*TQM  
==============================================
THIS  ORGANIZATION  MANUFACTURES  THE  FOLLOWING   TECHNICAL  PRODUCTS. IN  THIS  ORGANIZATION  , TQM  IS  AN  INTEGRAL  PART  OF   THE  STRATEGIC  PLANNING.
  
HPL
01   Breathing Apparatus
02   Mine Lighting Equipment
03   Eye & Face Protection
04   First Aid
05   Gas Masks
06   Head Protection
07   Instruments
08   Instruments – Portable
09   Hearing Conservation
10   Respirators
11   Health Care Products
12   U'ground Mech Equip
13   Safety Clothing
14   Baseline
18   Foam Chemicals Equip
23   Fall Protection
26   Miscellaneous
27   Closed Circuit BA & SR
28   Disposable Respirators
33   Compressors
34   Cameras
36   Cairns Helmets
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concept of reliability  is applicable to TQM
is  applicable  to this  organization


RELIABILITY.
In general, reliability  is the ability of a person or system to perform and maintain its functions in routine circumstances, as well as hostile or unexpected circumstances  in  the  MAINTENACE  DEPARTMENT.
It  is  the ability of a system or component to perform its required functions under stated conditions for a specified period of time."
Reliability has to do with the quality of measurement. In its everyday sense, reliability is the "consistency" or "repeatability" of your measures. Before we can define reliability precisely we have to lay the groundwork. First, you have to learn about the foundation of reliability, the true score theory of measurement. Along with that, you need to understand the different types of measurement error because errors in measures play a key role in degrading reliability. With this foundation, you can consider the basic theory of reliability, including a precise definition of reliability. There you will find out that we cannot calculate reliability -- we can only estimate it. Because of this, there a variety of different types of reliability that each have multiple ways to estimate reliability for that type. In the end, it's important to integrate the idea of reliability with the other major criteria for the quality of measurement -- validity -- and develop an understanding of the relationships between reliability and validity in measurement.

======================
AVAILABILITY
The degree to which an  equipment is operable and in a committable state at the start of a mission, when the mission is called for at an unknown, i.e., a random, time. Simply put, availability is the proportion of time an equipment  is in a functioning condition.
The conditions determining operability and committability must be specified.

Availability is a performance criterion for repairable systems that accounts for both the reliability and maintainability properties of a component or system. It is defined as the probability that the system is operating properly when it is requested for use. That is, availability is the probability that a system is not failed or undergoing a repair action when it needs to be used. For example, if a lamp has a 99.9% availability, there will be one time out of a thousand that someone needs to use the lamp and finds out that the lamp is not operational either because the lamp is burned out or the lamp is in the process of being replaced. (Note: Availability is always associated with time, much like reliability and maintainability.  There are different availability classifications and for some of which, the definition depends on the time under consideration.
Availability Classifications
The definition of availability is somewhat flexible and is largely based on what types of downtimes one chooses to consider in the analysis. As a result, there are a number of different classifications of availability, such as:
1   Instantaneous (or Point) Availability.
2   Average Up-Time Availability (or Mean Availability).
3   Steady State Availability.
4   Inherent Availability.
5   Achieved Availability.
6   Operational Availability.
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MAINTAINABLITY
A characteristic of design and installation, expressed as the probability that an item will be retained in or restored to a specified condition within a given period of time, when the maintenance is performed in accordance with prescribed procedures and resources.
The ease with which maintenance of a functional unit can be performed in accordance with prescribed requirements.

Maintainability is can  also  defined as the probability of performing a successful repair action within a given time. In other words, maintainability measures the ease and speed with which a system can be restored to operational status after a failure occurs. For example, if it is said that a particular component has a 90% maintainability in one hour, this means that there is a 90% probability that the component will be repaired within an hour. In maintainability, the random variable is time-to-repair, in the same manner as time-to-failure is the random variable in reliability.
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THE  INTER-RELATIONS  OF THESE  THREE  ELEMENTS  IN
THE  MAINTENANCE   DEPARTMENT --as  follows

1.If   the  RELIABILITY  is  constant,
and  if  the  maintainablity  decreases,
then  the  availability  also decreases.
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2.If   the  RELIABILITY  is  constant,
and  if  the  maintainablity  increases,
then  the  availability  also  increases.
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3.If   the  RELIABILITY  is  increases,
and  if  the  maintainablity  is  constant,
then  the  availability   increases.
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4.If   the  RELIABILITY  is  decreases,
and  if  the  maintainablity  is  constant,
then  the  availability   decreases.
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Total Productive Maintenance (TPM) is a maintenance program which involves a newly defined concept for maintaining plants and equipment. The goal of the TPM program is to markedly increase production while, at the same time, increasing employee morale and job satisfaction.
TPM brings maintenance into focus as a necessary and vitally important part of the business. It is no longer regarded as a non-profit activity. Down time for maintenance is scheduled as a part of the manufacturing day and, in some cases, as an integral part of the manufacturing process. The goal is to hold emergency and unscheduled maintenance to a minimum.
Why TPM ?
TPM was introduced to achieve the following objectives. The important ones are listed below.
1   Avoid wastage in a quickly changing economic environment.
2   Producing goods without reducing product quality.
3   Reduce cost.
4   Produce a low batch quantity at the earliest possible time.
5   Goods send to the customers must be non defective.
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interrelationship between TQM and maintenance management.

TQM  AND  TPM
Similarities and differences between TQM and TPM :
The TPM program closely resembles the popular Total Quality Management (TQM) program. Many of the tools such as employee empowerment, benchmarking, documentation, etc. used in TQM are used to implement and optimize TPM.Following are the similarities between the two.
Total commitment to the program by upper level management is required in both programmes
Employees must be empowered to initiate corrective action, and
A long range outlook must be accepted as TPM may take a year or more to implement and is an on-going process. Changes in employee mind-set toward their job responsibilities must take place as well.
The differences between TQM and TPM is summarized below.
Category   TQM   TPM
Object   Quality ( Output and effects )   Equipment ( Input and cause )
Mains of attaining goal   Systematize the management. It is software oriented   Employees participation and it is hardware oriented
Target   Quality for PPM   Elimination of losses and wastes.
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Types of maintenance :
1. Breakdown maintenance :
It means that people waits until equipment fails and repair it. Such a thing could be used when the equipment failure does not significantly affect the operation or production or generate any significant loss other than repair cost.
2. Preventive maintenance ( 1951 ):
It is a daily maintenance ( cleaning, inspection, oiling and re-tightening ), design to retain the healthy condition of equipment and prevent failure through the prevention of deterioration, periodic inspection or equipment condition diagnosis, to measure deterioration. It is further divided into periodic maintenance and predictive maintenance. Just like human life is extended by preventive medicine, the equipment service life can be prolonged by doing preventive maintenance.
2a. Periodic maintenance ( Time based maintenance - TBM) :
Time based maintenance consists of periodically inspecting, servicing and cleaning equipment and replacing parts to prevent sudden failure and process problems.
2b. Predictive maintenance :
This is a method in which the service life of important part is predicted based on inspection or diagnosis, in order to use the parts to the limit of their service life. Compared to periodic maintenance, predictive maintenance is condition based maintenance. It manages trend values, by measuring and analyzing data about deterioration and employs a surveillance system, designed to monitor conditions through an on-line system.
3. Corrective maintenance ( 1957 ) :
It improves equipment and its components so that preventive maintenance can be carried out reliably. Equipment with design weakness must be redesigned to improve reliability or improving maintainability
4. Maintenance prevention ( 1960 ):
It indicates the design of a new equipment. Weakness of current machines are sufficiently studied ( on site information leading to failure prevention, easier maintenance and prevents of defects, safety and ease of manufacturing ) and are incorporated before commissioning a new equipment.

WHICH   HELPS  TO  MAINTAIN   THE  RELIABILITY.
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5.Briefly discuss the relationship between Input, Environmental and Output variables in terms of TQM.

Increased market share and profitability can result from.    improved  quality.

Total Quality Management (TQM) is a philosophy aimed at improving business as a whole. The benefits of Total Quality Management interventions help in the continuous improvement of processes and products, and enhance efficiency of people and machines leading to improved quality.

helps in streamlining processes, and ensures a proactive work system ready to counter deviations from the ideal state. What are some of the major benefits of Total Quality Management?
The major thrust of Total Quality Management (TQM) is to achieve productivity and process efficiency by identifying and eliminating problems in work processes and systems. TQM addresses key problem areas such as mistakes in work processes, redundant processes, unnecessary tasks, and duplicate efforts. TQM interventions also help with predicting and pre-empting such mistakes and unproductive activities.
Improving process efficiency brings about many benefits to the organizations in terms of costs and time.
The major benefits of TQM in terms of cost savings include:
•   elimination of non-confirmation and repetitive work
•   elimination of waste costs and reject products
•   elimination of repairs and reworks
•   reduced warranty and customer support costs
•   process efficiency leading to improved profit per product or service
•   fiscal discipline through elimination of unnecessary steps and wasteful expenditure
TQM frees up management time from redressing problems and directs management time and effort to:
•   increase production
•   extend the range of products
•   improve existing products
TQM and Customer Satisfaction
A major long-term benefit of Total Quality Management relates to customer satisfaction. TQM aims at improving quality, and identifies the best measure of quality as matching customer expectations in terms of service, product, and experience. TQM interventions quantify problems and aim to achieve the best state defined in terms of such customer expectations.
Some examples of the application of Total Quality Management to improve customer satisfaction include:
•   Reduction of waiting time by changing the method of appointment scheduling or client handling
•   Making changes to the delivery process so that the product reaches the customer faster
•   Better quality products requiring no repairs improving customer loyalty
TQM and Organizational Development
Among the major benefits of Total Quality Management is improvement in Organizational Development. TQM heralds a change in the work culture by educating all employees on quality and making quality the concern of everybody, not just the Quality Control department. The focus on quality leads to a proactive work culture aimed at preventing mistakes rather than correcting mistakes.
Total Quality Management’s focus on teamwork leads to the formation of cross-departmental teams and cross-functional knowledge sharing. Such interventions lead to many benefits such as:
•   Improvement in communication skills of individual employees and overall organizational communication
•   Knowledge sharing, resulting in deepening and broadening of knowledge and skill-set of team members, and the making of a Learning Organization
•   Flexibility for the organization in deploying personnel, contributing to rightsizing, and ensuring cost competitiveness.
Another benefit of Total Quality Management is that TQM promotes the concept of internal customer/supplier satisfaction. For instance, the HR department considers employees as internal customers and processes their queries or requests within the specified time limit. The lab technician in a hospital processes the clinical tests required by the doctor, an internal customer in a timely and efficient manner, according to the laid down customer satisfaction norms.

A major application of benefits of Total Quality Management relate to Human Resource Management. Application of TQM in an organization brings about the following benefits to the Human Resources of an organization:
1.   TQM extends the ownership of the business process to each employee involved in the process by empowering them to rectify mistakes on the spot without supervisor review or action. This generates intrinsic motivation and creates an atmosphere of enthusiasm and satisfaction among the workforce.
2.   TQM’s thrust on eliminating mistakes and improving productivity contributes to accomplishment of targets faster. The resultant free time allows employees to enhance their knowledge and apply their creativity to improve existing products and develop new products.
3.   TQM’s thrust on quality leads to identifying skill-deficiencies in employees and providing training and other interventions to bridge such deficiencies. Cross-functional and cross-departmental teams allow employees to share their experience and solve issues jointly, leading to benefits such as broadening skill-sets, and improvement of existing skills.
4.   TQM’s focus on eliminating mistakes and bringing about process efficiency heralds a direct approach such as counseling and other remedial actions to solve issues such as absenteeism.
5.   The enhanced productivity brought about by TQM translates to better profits for the organization, and consequently better wages.
TQM and Competitive Advantage
The application of Total Quality Management brings forth all-round benefits and makes the organization more competitive. In the new business environment marked by demolition of barriers and free flow of information and products, organizations retain their competitive advantage by reducing prices, improving existing products and innovating new products. TQM is a business strategy that allows organizations to achieve all this and much more.
Total Quality Management demolishes the myth that increased quality results in increased costs and decreased productivity. TQM proves that quality is actually the key to decreased costs, and better productivity and positions quality as a critical component of strategic business advantage.
The overall benefits of an ISO 9000 quality management system are the following:

Increase Revenue
- Access wider geographic markets by complying with a globally recognised standard.
- New customers who require ISO 9000 compliance.

Preserve Existing Revenue
- Reduce customer rejection of products/services because of poor quality.
- Improve customer loyalty.

Reduce Costs
- Reduce or eliminate repetition of work.
- Reduce warranty and customer support costs.
- Reduce management time spent on “putting out fires”.
- Improve productivity by “doing it right the first time”.

ISO 9000 AS A ROUTE TO INTRODUCING AND IMPLEMENTING TQM
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Leo Lingham

Expertise

management consulting process, management consulting career, management development, human resource planning and development, strategic planning in human resources, marketing, careers in management, product management etc

Experience

18 years working managerial experience covering business planning, strategic planning, corporate planning, management service, organization development, marketing, sales management etc

PLUS

24 years in management consulting which includes business planning, strategic planning, marketing , product management,
human resource management, management training, business coaching,
counseling etc

Organizations
PRINCIPAL -- BESTBUSICON Pty Ltd

Education/Credentials
MASTERS IN SCIENCE

MASTERS IN BUSINESS ADMINSTRATION

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