" The following table summarizes the process by which TQM creates profits:
1.Improved quality means that costs decrease because of less rework, fewer delays, and better use of time and materials;
2.As a result, productivity improves;
3.Better quality leads to higher market share and allows the company to raise prices;
4.This increases the company's profitability and allows it to stay in business;
5.Thus the company creates more jobs.
The goal of TQM is to deliver the highest value for the customer. The TQM attitude of success is that a company's customers sign its paycheck and make it possible for the company to stay in business. Without the customer, the company could not exist: "TQM practitioners see a focus on the customer as the starting point, and indeed, the raison d'etre, of the whole quality philosophy."
TQM philosophy urges a company's employees to listen to its customers and to be willing to form partnerships with them. Customer satisfaction is achieved when products respond to customer needs; therefore, customer satisfaction is synonymous with product satisfaction. In too many American companies, the customer service function is relegated to employees near the bottom of the corporate ladder. Not so with TQM: "Customer complaints and rework of products should be given to the brightest people." A quality gap exists if there is discrepancy between what the customer wants and what a company actually provides to its customers. The following table summarizes the components of a TQM program:
1.Create constancy of purpose toward improvement of product and service, with the aim of becoming competitive, staying in business, and providing jobs.
2.Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, learn its responsibilities, and take on leadership for change.
3.Cease dependence on inspection to achieve quality. Eliminate the need for inspecti...
The Contribution of W. Edwards Deming. (1969, December 31). In LotsofEssays.com. Retrieved 13:18, January 22, 2017, from http://www.collegetermpapers.com/viewpaper/1303775373.html