What is the importance of total quality management?

Total Quality Management (TQM) is considered to have originated in 1954 from the industrial sector of Japan. TQM ensures that all members of the staff plays a part in improving products, customer services and the work culture.

In other words, Total Quality Management (TQM) is a management framework which is based on a belief that an organization can have long term success, if it focuses on improving quality and thus, ultimately satisfying its consumers. And this can be done by making all its members, from top level executives to low level workers focus on improving quality. Under TQM organizations focus process improvements rather than having short term financial gains.

IMPORTANCE OF Total Quality Management:

TQM can have important and beneficial effects on the employees and also on organization development. By having ever member focused on quality management and continuous improvement, an organization will ultimately establish and uphold cultural values that in turn creates long term success for the organization as well as customers. Focusing on team work, TQM also results in creation of cross-functional teams and knowledge sharing.

TQM thus results in less defective products, satisfied customers, reduction in costs, establishment of cultural values.

1. Quality products- TQM can be considered important from the view point of products because it ensures quality products. The quality of products can be ascertained by its performance, durability and reliability. Quality allows the customers to differentiate an organization from its competitors.

2. Quality service- TQM results in not only quality product but also quality services. An organization which is good in quality products also provides its customers with quality service.

3. Customer Satisfaction- TQM is also essential for customer satisfaction. When the customers of an organization are satisfied, this eventually leads to customer loyalty. A customer returns to an organization only if he was satisfied with the products and service. Loyal and satisfied customers therefore, further introduces new customers to the organization.

4. Increased Profits- TQM ultimately results in increased revenues and high profitability ratio of the organization. Also, employees enjoy timely payments of salaries, increased bonus etc. TQM increases an organizations profitability by reducing the cost, waste and inventory.

5. Coordination- Total Quality Management requires the employees to work together in a team with close coordination to achieve the goals and objectives of the organization.

6. Increased efficiency- Increased efficiency results in quality goods. When employees morale is boosted it results in improved performance and increased efficiency.

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