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Total Quality Management (TQM) is considered a very important factor for the long-term success of an organization. Total quality management (TQM) aims at improving performance in terms of quality, productivity, customer satisfaction, and profitability. TQM is achieved through an integrated effort among personnel at all levels and focuses on process improvement, customer and supplier involvement, teamwork, training and education in an effort to achieve customer satisfaction, cost effectiveness, and defect-free work. It also provides the culture and climate essential for innovation and for technology advancement.Speaking about the Total Quality Management Strategy, we should say that four components are critical to a successful TQM strategycustomer satisfaction;employee involvement;managerial leadership;process improvement and control. Qualityfocused organizations must identify their customers, determine their specific needs, integrate all activities of the organization to satisfy these needs, and follow up to ensure the customers have been satisfied.The cost of quality is considered to be the primary tool for measuring quality. It is used to track the effectiveness of the TQM process, select quality improvement projects, and provide cost justification to doubters. Under TQM systems, product/service design efforts have two objectives: designing manufacturable products and designing quality into the products.Effective supplier quality management is facilitated by long-term, cooperative relationships with as few suppliers as possible to obtain quality materials and/or services. The theory of Total Quality can be Summarized as Follows1. Quality leads to lower costs as defects are reduced;2. Quality is made in the boardroom; 3. Most defects are caused by the system not the worker;4. Inspection is too late; defects should be reduced;5. Eliminate numerical quotas, slogans, exhortation and targets for the workforce and promote sustained and continuous improvement of process and quality of output;6. Drive out fear of change from workers; institute a vigorous program of education, training, and retraining to help the workforce improve continuously and to increase their job security;7. Break down barriers between staff areas and abandon review systems that will destroy teamwork and create rivalry;8. End the practice of awarding business on price tag alone; look for suppliers committed to quality.Total Quality Management and Organizational PerformancePerformance measurement is an integral part of all management processes and traditionally has involved management accountants through the use of budgetary control and the development of financial indicators. TQM emphasizes the need to provide customers with highly valued products and to do so by improvements in efficiency by way of eliminating waste, reducing lead times at all stages of the production process, reducing costs, developing people, and improving continuously.Performance management systems are a cornerstone of human resource (HR) management practices and are the basis for developing a systems approach to organization management. The thrust of the TQM philosophy is that quality and its management have to be built in from the beginning and that the accomplishment of quality standards and improvement is the responsibility of everyone. ConclusionsAnalyzing the researches on TQM, we have made the following conclusions: effective TQM implementations improve long-term profitability and stock returns. Implemented badly, TQM principles and practices can hinder organizations from being innovative.The content of TQM includes two business orientations: customer orientation and process orientation. from a strategic management perspective, TQM is concerned more with strategy implementation, or deployment, rather than strategic choice, or intent. Some studies have found that the use of TQM practices reduces manufacturing process variance, eliminates reworks and scraps, and improves quality performanceSome studies have found that TQM firms do not outperform non-TQM firms.TQM strategy that focuses on increasing customer levels of satisfaction does have a significant and positive impact on performance. Questions:What does the abbreviation TQM stand for?It stands for Total Quality Management.What is the main aim of TQM?To improve quality, productivity, customer satisfaction, and profitability. What level employees should be involved in TQM?All level employees.How many suppliers should a business have to obtain high-quality goods and service?As few as possible When can TQM hinder organizations from improvements?When it is implemented badly.
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