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How does TQM help my business?With 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 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 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 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.
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