FACULTY520-BS322-KUST-2021S-L10-Benefits of TQM

“Total Quality Management”
BS-322
Lecture 10
“Benefits of TQM”
Dr. Muhammad Irshad

Institute of Business Studies, KUST
Topic: TQM Benefits
Benefits of TQM
The application of TQM helps in streamlining processes, and ensures a
proactive work system ready to counter deviations from the ideal state.
• The major benefit of Total Quality Management (TQM) is to achieve

productivity and process efficiency by identifying and eliminating
problems in work processes and systems.
• TQM addresses key problem areas such as mistakes in work processes,

redundant processes, unnecessary tasks, and duplicate efforts.
• TQM interventions also help with predicting and preempting such mistakes
and unproductive activities.
Course: Total Quality Management Course Code: BS 322– Instructor: Dr. Muhammad Irshad.
Institute of Business Studies, KUST,Email: drirshad@kust.edu.pk
Topic: TQM Benefits
Cost Reduction
TQM can reduce costs throughout an organization, especially in the
areas of scrap, rework, field service, and warranty cost reduction. Since
these cost reductions flow straight through to bottom-line profits without
any additional costs being incurred, there can be a startling increase in
profitability. It is based on the principle of preventing defective
products/services rather than being at an expense of quality failure cost. So
basically, it aims to manufacture zero defect products/services.
Topic: TQM Benefits
Productivity improvement
Productivity increases significantly, employees spending less of their
time chasing down and correcting errors. Increased productivity means
more output per employee (optimum utilization of resources), which
typically results in increased profits. Thus, the superior quality of resources
and infrastructure, high-end technology and competent employees enhance
productivity.
Topic: TQM Benefits
Defect Reduction
TQM has a strong emphasis on improving quality within a process,
rather than inspecting quality into a process. This not only reduces the time
needed to fix errors, but makes it less necessary to employ a
team of quality assurance personnel. TQM applies a systematic approach
by assigning quality improvement teams so as to reduce unessential tasks,
waste of resources, thus, bringing in efficiency. This also saves time and
duplication of tasks.
Topic: TQM Benefits
Employees Morale
The ongoing and proven success of TQM, and in particular the
participation of employees in that success lead to a noticeable
improvement in employee morale, which in turn reduces employee
turnover, therefore reduces the cost of hiring and training.
Topic: TQM Benefits
Customer Satisfaction
TQM is all about delivering a superior quality of products and
services to the customers in the long run, the amount of customer
complaints is quite less. Therefore, it signifies less use of resources and
increased customer satisfaction. Thus, the market share also increases as
the existing customers act as the ambassadors to attract new customers.
Topic: TQM Benefits
Promotes Innovation Process
TQM enables the organizations to conduct research on any
undergoing challenges/ problems so as to come up with solutions for the
same. Thus, organizations escalate their research and bring in innovation.
The implemented innovative approach to the core and peripheral services
attracts the customers.
Topic: TQM Benefits
Market Specific Products/services
Since the main focus of TQM is on customer satisfaction, it provides
a pathway to understand the needs and demands of the consumer market.
Therefore, it enables the organization to deliver products/services specific
to the market.
Topic: TQM Benefits
Holistic Approach to Management
Many organizations struggle with non-engaging and non-
participative attitude of the employees. TQM enables to bring changes in
the behavioral pattern of the employees by facilitating good work culture,
team-work, promoting self-development, employee engagement and thus
extracting better performance.
Topic: TQM Benefits
Promotes Continual Improvement
The basic fundamental of TQM is continually improving for long-
term success. Therefore, TQM practices are designed to bring in
continual improvement to the quality standards of a product and service.
This results in a continuous revival of processes.
Topic: TQM Benefits
Facilitates Competitive Edge
The increasing competition challenges the organization to meet the
ever-increasing demands of the consumer market. TQM practices prove
useful in understanding the market trends and competition so as to
develop effective strategies to overcome the same.
Topic: TQM Benefits
Promotes Good Will
TQM focuses on consistent delivery of good quality product and
services, the consumers hold favorable reputation about the organization.
The internal stakeholders (employees and investors) get lucrative
incentives and good returns respectively, while external stakeholders
(customers) get superior quality of goods. This results in a good brand
image and goodwill in the long run.
Topic: TQM Benefits
Effective Communication
Often, improper and ineffective communication are a hindrance to the
proper functioning and development of an organization. This results in
improper understanding, low productivity, inferior quality, waste of time
and efforts, thus contributing to low morale. Whereas, TQM facilitates
effective communication and interaction within members of different
departments and hierarchies of management.
Topic: TQM Benefits
Summary
TQM not only brings in tangible results like superior product quality,
reduction in costs, increased profitability, increased market share, and
productivity. But, also, intangible returns like better communication,
teamwork, employee engagement, customer satisfaction, goodwill, and
increased employee morale.
Topic: TQM Benefits
Topic: TQM Benefits
Bibliography
Dale H. Bestterfield “Total Quality Management” 3rd Edition’
Sarkar, Debashis, 2001. The Managers’ Handbook for Total Quality

Management, New Delhi: Beacon Books
Brocka, Bruce and Brocka, M. Suzanne Essentials of Quality

Management, Homeword, Illinois

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“Total Quality Management”

Dr. Muhammad Irshad

• The major benefit of Total Quality Management (TQM) is to achieve

• TQM addresses key problem areas such as mistakes in work processes,

these cost reductions flow straight through to bottom-line profits without

any additional costs being incurred, there can be a startling increase in

profitability. It is based on the principle of preventing defective

products/services rather than being at an expense of quality failure cost. So

basically, it aims to manufacture zero defect products/services.

Productivity increases significantly, employees spending less of their

time chasing down and correcting errors. Increased productivity means

more output per employee (optimum utilization of resources), which

typically results in increased profits. Thus, the superior quality of resources

and infrastructure, high-end technology and competent employees enhance

needed to fix errors, but makes it less necessary to employ a

team of quality assurance personnel. TQM applies a systematic approach

by assigning quality improvement teams so as to reduce unessential tasks,

The ongoing and proven success of TQM, and in particular the

participation of employees in that success lead to a noticeable

improvement in employee morale, which in turn reduces employee

turnover, therefore reduces the cost of hiring and training.

TQM is all about delivering a superior quality of products and

services to the customers in the long run, the amount of customer

complaints is quite less. Therefore, it signifies less use of resources and

increased customer satisfaction. Thus, the market share also increases as

the existing customers act as the ambassadors to attract new customers.

Promotes Innovation Process

TQM enables the organizations to conduct research on any

undergoing challenges/ problems so as to come up with solutions for the

same. Thus, organizations escalate their research and bring in innovation.

The implemented innovative approach to the core and peripheral services

attracts the customers.

Market Specific Products/services

Since the main focus of TQM is on customer satisfaction, it provides

a pathway to understand the needs and demands of the consumer market.

Therefore, it enables the organization to deliver products/services specific

Holistic Approach to Management

Many organizations struggle with non-engaging and non-

participative attitude of the employees. TQM enables to bring changes in

the behavioral pattern of the employees by facilitating good work culture,

team-work, promoting self-development, employee engagement and thus

extracting better performance.

Promotes Continual Improvement

The basic fundamental of TQM is continually improving for long-

term success. Therefore, TQM practices are designed to bring in

continual improvement to the quality standards of a product and service.

This results in a continuous revival of processes.

Facilitates Competitive Edge

The increasing competition challenges the organization to meet the

ever-increasing demands of the consumer market. TQM practices prove

useful in understanding the market trends and competition so as to

develop effective strategies to overcome the same.

Promotes Good Will

TQM focuses on consistent delivery of good quality product and

services, the consumers hold favorable reputation about the organization.

The internal stakeholders (employees and investors) get lucrative

incentives and good returns respectively, while external stakeholders

(customers) get superior quality of goods. This results in a good brand

image and goodwill in the long run.

Often, improper and ineffective communication are a hindrance to the

proper functioning and development of an organization. This results in

improper understanding, low productivity, inferior quality, waste of time

and efforts, thus contributing to low morale. Whereas, TQM facilitates