manufacturing articles business management businesses Marketing sales Technology Business finance Lean Manufacturing small business Investing articles employee health

How does TQM help my business?

manatcontrols24240145.jpgWith all the different process improvement strategies out there, it is easy to get confused about which ones you should use to reduce wastes. One of the process improvement strategies out there is Total Quality Management or TQM. TQM helps to eliminate waste and improve the production process through various standards. Here are some examples as to how TQM can help to improve your business:

Example # 1 - Quality of products
One of the main reasons to implement TQM is to improve your product quality. This means you need to find better suppliers for your raw materials and you need to work with your employees to improve the manufacturing process to identify and remove product defects.

Your wholesalers have a large impact upon your company. When their prices go up, it eats into your profit margin. If you do not keep inventory, the wholesaler has an expanded role because they are now in charge of maintaining a set number of raw materials that your company needs.

Take a look at your wholesalers and find some that can sell you products in bulk. Typically the more you buy, the lower your cost will be. However there is a downside to buying in bulk, if you don't have plans to use it immediately, it will become a waste to the company because it will be stored as inventory. Be careful about buying in bulk too because there are times when the vendors may try to sell you cheaper or damaged products.

Example # 2 - Employee Involvement
The second way TQM improves your business is to involve your employees. When the employees are given increased roles and responsibilities it boosts their morale. TQM not only tries to find ways to fix the problems within the company, it tries to find ways to get everyone involved.

As you are evaluating product designs, ask for your employees input. Since they deal with the products on a daily basis, they may have suggestions as to how you can re-work the system to become more cost-effective for everyone within the company. This helps them to feel more involved in the company it and promotes loyalty.

Employee loyalty is a great way to reduce waste because you do not need to spend additional money on training. You also don't need to worry about slow production times while you are trying to find the new employee. Employees that are loyal to their employers are also more willing to work harder and apt to be honest with the company.

Example # 3 - Financial Gain
Another reason for implementing TQM is for the financial gain your company will receive. TQM helps to improve the products, leading to higher customer satisfaction levels, which increases your revenue stream. TQM also helps you control your finances by organizing them. This will help you avoid double-paying vendors and it can help you properly manage your cash flow. Knowing your financial situation can help your company manage your raw material orders.

If you do carry any inventory, you must know your financial situation because inventory ties up money that is used for your cash-flow. Inventory is considered a wasteful practice because you are paying for raw goods without a guarantee that they will sell.

There are additional ways you can implement TQM into your manufacturing company to cut costs and save money. Use some additional process improvement strategies to help your company improve customer satisfaction and increase employee retention. Use your customers as one of your Key performance indicators (KPI) when you are trying to calculate their satisfaction rate. Using a small section of your customer surveys can provide you with insight to your customers needs and help you find ways to meet their expectations.

FREE: Get More Leads!
How To Get More LeadsSubscribe to our free newsletter and get our "How To Get More Leads" course free via email. Just enter your first name and email address below to subscribe.
First Name *
Email *

Get More Business Info
Sponsored Links
Recent Articles


Copyright 2003-2020 by - All Rights Reserved
Privacy Policy, Terms of Use