Research more about and discuss what is Total Quality Management (TQM).

TQM is defined as the management approach to long-term success through

customer satisfaction. It is a set of quality and management tools that are employed to
increase the performance of the business by reducing losses and increasing turnover. .
In which, through this, they can able to improve the quality of an organization's output.
TQM also enables all parties involved in the production process accountable for the
overall quality of the product or services. Moreover, TQM not just influenced the
financial indicators but also the non-financial ones. Market share profits, defect
percentage, performance, and stock turnover are the fiscal indicators meanwhile the
non-fiscal are customer satisfaction, innovation, skill improvement, reliability, and talent
development.
On the other hand, the advantages of TQM are it delivers stronger and higher quality
products to customers, results in lower company-wide costs, minimizes the waste in the
entire production, and enables the company to become more adaptable. However, its
disadvantages are that it may require substantial financial investment to convert to
TQM practices, often requires conversion to TQM practices over a long period of time,
may be met with resistance to change, and requires company-wide buy-in to be
successful. In addition, although TQM originated in manufacturing sector, its principles
can also be applied to other industries such as the banking, finance and medicine. On
the other side one of the best example of TQM is Toyota's implementation of Kanban
system, a physical signal that creates a chain reaction, resulting in a specific action.
They uses this process in order to implement the just-in-time inventory process.
Whereas, they keep just enough inventory to fill the customers’ orders. This help them
not overstock the inventory.

According to Crosby, Philip B., et al., there are eight principles of TQM. First,
customer-focused. It means the customer is the one who ultimately determined if the
product and service quality is worthwhile. Second, total employee involvement. All
employees are involved to participate in working toward the company’s common goal.
Third, process-centered. TQM is focused on process thinking where every step from
taking inputs from the supplier up to the delivery of outputs to the customers they
continuously monitored in order to detect unexpected variation. Fourth, integrated
system. Although in an organization there are different functional specialties but through
TQM there are horizontal processes interconnecting these functions. Fifth, strategic and
systematic approach. In management this is the critical part of the management where
includes the formulation of strategic plane that will help the entity to integrate the quality
as a core component. Sixth, continual improvement. This are the large aspect of the
TQM. This improves the organization to be both analytical and creative in finding ways
to become more competitive. Seventh, fact-based decision making. TQM requires that
there is an accurate data that are gathered in order to have a better decision making
based on the facts. Eight, communication. This is the one of the best way to achieve the
goal. Since, from the day to day operations, communication play a vital role to maintain
the maintain and morale of the employees.

In conclusion, TQM focuses on encouraging everyone in an organization to focus on

the quality improvement by eliminating errors, streamline processes and maximise
efficiency. Therefore, this will help the entity to lessen the manufacturing cost and
increase the profits well as the customer satisfaction.