The Importance Of Total Quality Management

1226 Words3 Pages

Total quality management is a transformation in the way an organization manages (Caudron, 1993). It is a mindset and a set of procedures that have been developed to enhance the quality of an organizations goods and services and the efficiency with which they are produced (George and Jones, 2012). Total quality management involves focusing management’s strategies on the continuous improvement of all operations, functions, and above all processes of work. Quality is basically meeting the needs of the customers. To do this, management must improve work processes, because the result of these work processes is what the customer cares about (Caudron, 1993). Total quality management has several goals that organizations can achieve. One is to …show more content…

Benchmarking entails the selection of a high-performance organization or group who is providing high quality services or goods to its clients and utilizing this group as a model to emulate (George et al, 2012). When a poor performing group requires a decision, the group evaluates where they are against a benchmark group of some type of standard of quality. The group then makes a decision on a course of action to reach the standard established by the benchmarked group. For example, in 1961 the Xerox Corporation, originally named the Haloid Company, enjoyed record revenue growth during the 1960s. Their success was a result of the development of Xerox copying machine that used the unique photographic technology. However, during the late 1970s and early 1980s, competition from both the United States and Japan began to take Xerox’s market share, and Xerox failed to react in a timely manner. These competitors produced either better quality or lower price products. In 1982, Xerox established a benchmarking program called “leadership through quality” (Ou et al, 2015) with the aim of reducing costs and emphasizing quality. Under this program, Xerox evaluated itself against Japanese competitors and discovered that Xerox took twice as long as the Japanese to bring a product to market, five times the number of engineers, four times the number of design changes and three times the design costs …show more content…

This process requires the leadership of managers and supervisors who implement the change. Employees of the organization should be in total commitment to the organization and the product or service that the organization provides. Total Quality Management is more important today, now that most organizations are competing in a global market (Richards, 2012). Through benchmarking and empowerment, organizations can be successful in the implementation of Total Quality Management resulting in increased profits, employee satisfaction, and customer

Open Document