Quality is a key differentiator in a populated marketplace, driven by dynamic customer choices and competitive business offerings. Quality products make an important contribution to long-term revenue and profitability, building your brand value by simply letting your services and products, speak for themselves.
ISO 9000’s definition of quality is the “degree to which a set of inherent characteristics fulfills requirement”.
So, we must consider the customer, the attributes of the product and the degree to which the product or service meets the needs of all stakeholders. Based on these characteristics we can define the quality of a product as “good”, “average”, “excellent”.
Adherence to a recognized quality standard is essential for dealing with certain customers or complying with legislation. If you sell products in regulated markets, such as health care, food or electrical goods, you must be able to comply with the health and safety compliance standards designed to protect consumer’s interests.
In today’s business environment, organizations face multiple challenges ranging from a global economic slowdown, challenging and agile competition, and technology that’s moving at lightening pace. And one of the ways in which an organization can build a strong, sustainable competitive advantage for itself, is via implementing Total quality management (TQM) practices.
The origins of TQM
Though the origins trace back to the 1920s, TQM has received the widespread acclaim that it current enjoys, somewhere in the late 1900s. The credit for this revolutionary quality management principle goes Edwards Deming, Joseph Juran and Kaoru Ishikawa. T.
Deming was hired by the Japanese industry leaders to come up with solutions that would improve industrial productivity, thereby increasing Japan’s share in the global market. His statistical approach soon led to what is now known as the Japanese post-war economic miracle.
Later, Deming authored the 14 key principles of total quality management in his seminal work, Out of the Crisis. These principles defined the total quality management movement worldwide.
They are as follows:
Why is TQM crucial for your business?
Total Quality Management in the long run, helps increase your market share and gives your business a competitive edge:
- Enhanced Efficiency in Cost Management
Though the initial time and cost of installing an efficient Total Quality Management system is high, it has often been noted that this initial cost has long-term benefits.
This preliminary expenditure ensures that undue expenses, wastages and defects are significantly reduced. This helps enhance the overall cost management in the organization.
- Profitability on Investments
Efficient cost management contributes to a higher productivity. There is also a marked increase in the economies of scale, which makes sure that businesses reap more at minimal costs.
This productivity then accentuates the return on investment and the profitability of the organization.
- Employee Morale and Productivity
TQM involves the full commitment from the management. Once ingrained as the way of doing things, the business can reap the benefits of TQM – including a healthier bottom line.
When your employees are more involved, it gives them room to be innovative and engaged, increasing their sense of job security and boosting their employee’s morale.
- Customer Centricity
Implementation of TQM measures results in superior quality service to customers. This enhances the customer’s satisfaction and their loyalty towards your products.
In addition, businesses can go a step further and involve the customers in the overall process, creating a collaborative environment for all stakeholders.
- Accentuated Adaptability
As there is continuous evaluation at all the stages of the business, TQM ensures that the organisation can adapt to various changes in the economy.
As a result, the organisation gets a higher competitive advantage and a strong image as a highly adaptable leader in the market.
Delivering superior products and services is paramount. Quality management systems provide the information and guidelines for doing things correctly, helping your business achieve optimum cost efficiency and utilization of resources.
ELGi was honoured with the prestigious Deming honour for its implementation of TQM in November 2019. Know more about our products and services at https://www.elgi.com/oil-free-compressors/