Powerful Benefits Of TQM Strategy For An Organization

Customer satisfaction

As a well-known fact, with effective TQM implementation, the company offers better services and products, which ultimately results in minor complaints and better customer satisfaction. Higher customer satisfaction leads to an increased market share, and they bring in more customers leading to increase in profits

Cost reduction

When an organization implements TQM consistently, over a while, it helps reduce cost throughout the company by eliminating scrap, rework, and reducing the warranty cost and field service. This reduced cost flows down to the bottom line as profits and incentives without incurring any additional cost.

Improved productivity

TQM implementation directly impacts productivity and increases it significantly. It motivates the employees and enhances their morale as now much less or little time is spent on chasing down and rectifying the errors. Increases productivity – increased output per employee – increased profits.

Reduced defects

TQM methodology strongly emphasizes quality improvement within a process instead of quality inspection in a process. That simply means with TQM implementation, much lesser time is required to fix errors along with no or lesser need to deploy quality assurance personnel.

High employee morale

The correct TQM implementation gives guaranteed results, which enhances the employee's morale, increasing the chances of their long-term engagement with the company. Therefore, an organization needs not to hire new employees, thus saving money that they have to spend on their training.

TQM has proved that quality is actually the key to decreased costs and better productivity. It keeps quality as a critical component to achieve strategic business advantage. TQM methodology when applied will help your organization to becomes successful and beat the competition and help achieve operational excellence.