Total Quality Management is a system of continuous improvement that involves all workers in a business from upper management to production line workers. The focus of the improvement program is to improve customer service and reduce waste in the business. Quality improvement teams use problem-solving techniques and analysis to identify and eliminate weaknesses in the company.
Implementing a Total Quality Management system in a company requires extensive training of employees. The employee training includes instruction in problem solving techniques and the tools to evaluate a process and identify weaknesses such as statistical process control, Pareto diagrams and brainstorming techniques. During the initial training period, productivity can decline. Meetings for quality improvement teams also take workers away from their duties, which also reduce productivity. While the improvements do reduce lead time, eliminate waste and improve productivity, the beginning stages of implementing Total Quality Management in an organization can reduce worker output.
Lowers Production Costs
A Total Quality Management program eliminates defects and waste, which reduces production costs in a business. As teams gather to identify and eliminate weaknesses in the business, the company continues to enjoy reduced costs and higher profit. Quality improvement teams can eliminate defects, reduce lead time and identify redundancies in the production process that can significantly add to the profit the company earns.
Total Quality Management requires change in mindset, attitude and methods for performing their jobs. When management does not effectively communicate the team approach of Total Quality Management, workers may become fearful, which leads to employee resistance. When workers resist the program, it can lower employee morale and productivity for the business. Total Quality Management uses small incremental improvements to move the business forward. It can take years for a company to enjoy the benefits of the program.
Once workers understand their participation and involvement in Total Quality Management is essential to its success, morale and productivity improve. Workers become empowered through participation on quality improvement teams. Businesses can improve morale further by recognizing improvement teams that make meaningful changes in the production process to reduce or eliminate waste.
source: http://smallbusiness.chron.com by Luanne Kelchner, Demand Media