What is Total Quality Management? Total Quality Management, according to Investopedia, is the continuous process of reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experience and ensuring that employees are up to speed with their training. (Investopedia). Total Quality Management could also be defined as “managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.” (Jacobs & Chase, 2012). There are several ways that you could define Total Quality Management, depending on your viewpoint and experience in the business world. Total Quality Management was developed by a man named William Deming. He was a management
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Since reduced costs in those areas go directly to increasing the profits of an organization without any additional cost being incurred, there will be a significant increase in profitability as well. (Bragg, 2013)
Six Sigma is a disciplined, data-driven approach and methodology for elimination defects in processes like manufacturing to transactional and from product to service. (Sigma). Six Sigma was originally developed in the 1980s as part of Total Quality Management. The Six Sigma Quality over the 90s, expanded into a set of extensive diagnostic tools that have been taught to managers as part of “Green and Black Belt Programs” at various organizations and corporations. These tools are not only popular in manufacturing applications, but also non-manufacturing like sales, research, accounts receivables and development for example. (Jacobs & Chase, 2012). While Total Quality Management and Six Sigma share a lot in common, they are different; in the sense that while Total Quality Management focuses on ensuring that internal guidelines and process standards reduce errors, Six Sigma focuses on reducing defects. …show more content…
It has helped organizations to reduce cost, increase customer satisfaction, defect reduction and increase morale. Total Quality Management reduces cost of different areas in an organization, profit increases. Many organizations are seeing increase in their monthly and annual profit. Also since an organization will have better product and services once they apply Total Quality Management, their interaction with customers will be perfect eliminating the chances of customer complaints arising. When few customer complaints arise or none arise, an organization wouldn’t have to focus on its customer service. “The ongoing and proven success of TQM, and in particular the participation of employees in that success can lead to a noticeable improvement in employee morale, which in turn reduces employee turnover, and therefore reduces the cost of hiring and training new employees” (Bragg, 2013). Total Quality Management is most useful in an environment that management is the top
Since reduced costs in those areas go directly to increasing the profits of an organization without any additional cost being incurred, there will be a significant increase in profitability as well. (Bragg, 2013)
Six Sigma is a disciplined, data-driven approach and methodology for elimination defects in processes like manufacturing to transactional and from product to service. (Sigma). Six Sigma was originally developed in the 1980s as part of Total Quality Management. The Six Sigma Quality over the 90s, expanded into a set of extensive diagnostic tools that have been taught to managers as part of “Green and Black Belt Programs” at various organizations and corporations. These tools are not only popular in manufacturing applications, but also non-manufacturing like sales, research, accounts receivables and development for example. (Jacobs & Chase, 2012). While Total Quality Management and Six Sigma share a lot in common, they are different; in the sense that while Total Quality Management focuses on ensuring that internal guidelines and process standards reduce errors, Six Sigma focuses on reducing defects. …show more content…
It has helped organizations to reduce cost, increase customer satisfaction, defect reduction and increase morale. Total Quality Management reduces cost of different areas in an organization, profit increases. Many organizations are seeing increase in their monthly and annual profit. Also since an organization will have better product and services once they apply Total Quality Management, their interaction with customers will be perfect eliminating the chances of customer complaints arising. When few customer complaints arise or none arise, an organization wouldn’t have to focus on its customer service. “The ongoing and proven success of TQM, and in particular the participation of employees in that success can lead to a noticeable improvement in employee morale, which in turn reduces employee turnover, and therefore reduces the cost of hiring and training new employees” (Bragg, 2013). Total Quality Management is most useful in an environment that management is the top