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Total Quality Management: Advantages and Disadvantages Report

Introduction Total quality management refers to the approach used by the management to improve the quality of production and the organization’s performance in tandem with the needs of its goals.

In this case, quality management combines various elements of the organization connected with the improvement, development and maintenance of operations. Thus, these include factors such as cost control, employee performance, revenue accrual and management functions. These factors should be balanced to assure the success of the organization.

Advantages of TQM TQM is important to organizations. It assists them attain efficiency in production and processing by preventing errors before they happen during work in process. Oakland (2001) notes that TQM addresses fundamental problem extents such as redundant processes, identical efforts, work processes and unnecessary tasks.

Besides, TQM intervention plays a key role in predicting errors and providing appropriate measures to pre-empt them before they actually occur. This aspect encouraged efficiency and enables an organization to save on time and costs.

Guasch (2007) points out that TQM enhances customer satisfaction. TQM intentions are tailored towards improving product or service through value addition. It attains this aspect by embracing a suitable strategy to correlate with the customer’s expectations.

For instance, Oakland (2001) explains that to guarantee customer satisfaction, TQM reduces waiting time by changing how a customer is handled. It also makes changes in the delivery process to ensure a product/service reaches the customer on time and improves on the quality of products eliminating the needs of repair improving customers’ loyalty.

Also, TQM is important in improving the organization’s development. TQM builds the culture of change in the organization by championing for education of all employees on quality practices. This helps to make quality a concern for all and not just for Total Quality Assurance department. Focusing on quality contributes to a culture of proactive work tailored towards preventing errors.

For instance, Guasch (2007) demonstrates that by focusing on teamwork, TQM succeeds in enhancing cross-departmental cooperation, thereby facilitating knowledge sharing. Knowledge sharing benefits an organization because it contributes to improved communication among employees and simplifies the organization’s communication hierarchy.

Besides, knowledge sharing leads to widening of knowledge and skill-set of employees and breeds a culture of flexibility when an organization is deploying personnel in various epartments. This ensures cost competitiveness is achieved in the organization.

Pfeifer (2002) explains that TQM improves human management in an organization. In human resources management, TQM spreads the rights of the business process to employees involved by empowering them to correct errors on the spot without waiting for directions from their superiors.

This characteristic provides a total fulfillment environment and fixes an intrinsic enthusiasm among employees. Similarly, the TQM emphasizes improving productivity by eliminating mistakes and fixes the completion of objectives much faster. The employees may use the available free time to gain more knowledge aimed at improving existing products or services or coming up with new ones.

TQM fixes an all round benefits enabling an organization achieve competitive advantage. In contemporary business, where borders are decreasing and barriers eliminated, there is free flow of information and products; an organization may embrace TQM to preserves its efficiency by creating new products, redesigning old ones and lowering prices. Hence, TQM strategy enables organizations to achieve all these benefits more easily.

Disadvantages of TQM Although many organizations have accrued tangible benefits by embracing TQM, there are various disadvantages associated with the practice. Oakland (2001) points out that TQM calls for a new approach in the organization focused on process improvement and continuous customer fulfillment.

Thus, for these aspects to take place, an organization should aim at changing its attitude and embrace prioritization of its daily daily operations. Additionally, TQM needs assurance and calls for all employee participation.

However, Guasch (2007) notes that there are challenges involved in changing an organization’s culture because the aspect integrates an intertwining array of roles, values and processes. These aspects receive some resistance from employees who term them as a danger to their jobs.

Also, TQM calls for planning, resources and time. Implementing a TQM system may take years of planning and resources of the organization. This is also coupled with management commitment. Where there is no support from management in terms of availing resources, TQM may fail.

Seaver (2003) points out that quality is expensive to implement. Implementation requires additional costs such as consulting fees, training, infrastructure improvement and team development fees. In the long-run, the investment may be costly to an organization.

TQM takes years to yield results. Hence, an organization opting to get instant result is disadvantaged. It calls for dedication, patience, motivation and perseverance during the whole process. However, many organizations have given up when results are not forthcoming. Besides, organizations operating in a stiff competitive environment have seen it a waste of time.

TQM is tailored towards standardization. Standardization weakens creativity because it, discourages new skills and innovation in an organization which could have increased productivity.

Benefits TQM improves the organizational performance. The performance of an organization is tied to how its processes are efficiently executed. Thus, TQM ensures that the organization’s processes are consistent with its quality standards; thus increasing its performance. Pfeifer (2002) carried out an investigation in Malaysia to determine the effectiveness of TQM in improving performance in an organization.

About 400 hundred organizations were evaluated. After analyzing the data collected, it was found out that a strong relationship existed between TQM and commitment to customers, sales and profit, product quality and development, communication between divisions, marketing and respect for management (Pfeifer, 2002)).

TQM is an approach taken by organizations to keep aligned to the goal of striving to give the best of service by constantly improving the services offered. TQM systems are put in place to constantly continuously watch and evaluate the organization’s determination to quality.

For instance, the Ford Company, since its inception, has continuously aimed at sustaining TQM in its production line of Ford Vehicles. Ford has formulated and implemented the quality management philosophy, where more emphasis is particularly integrated in designing and coming up with a finished product that met the requirements of the customers.

Similarly, in order to avoid wasteful production, Ford arranges for the production system, which entailed reducing the finished product immediately, in order to detect any element of malfunctioning. In case a default is detected, the product is rechecked to clarify the amount of damage. In case the damage is huge, the product is redesigned to facilitate construction of another default- less product.

Conclusion TQM is an important component that organizations should deploy in order to attain efficiency, streamline processes and improve customer satisfaction, among others. Due to the present competitiveness of firms, TQM assures business has a competitive advantage over others in terms of service delivery, quality, operations and reduced costs.

However, despite the efficiency of TQM in businesses, organizations should be aware of the challenges posed by embracing the TQM system. They should understand that TQM might call for a change in an organization’s culture. The results also take longer to be visible and it encourages standardization which weakens creativity and innovation.

References List Guasch, L. (2007). Quality Systems and Standards for a Competitive Edge.Washington: World Bank

Oakland, J. (2001). Total organizational excellence: achieving world-class performance. Oxford: Butterworth-Heinemann Publishers

Pfeifer, T. (2002). Quality management: strategies, methods, techniques; with 3 tables. Cincinnati: HanserGardner.

Seaver, M. (2003). Gower Handbook of Quality Management. Aldershort: Gower Publishing, Ltd.

Smart Car Case Study

Business Assignment Help Introduction The creation of the ‘smart’ car was due to the collaboration between Swatch Watches and Mercedes-Benz. Swatch Watches intended to use the car to embody the brand name into a vehicle. The ‘smart’ car is a 2-seater car. It is fuel-efficient.

The car is available in bright colours. Fuel efficiency is one of the major competitive factors of the car. Swatch markets the car to married Western expatriates. Swatch would use several channels to advertise the car.

Strategies of the Promotional Mix Advertisement is one of the major forms of promotions that companies use. Companies may use print media, radio, and television to advertise their products.

Swatch should not use print media or other mass media to advertise their products. Mass media target a large number of people. Therefore, it would not be economical to advertise the car to a large number of people who would not buy the car eventually.

Companies use public relations (PR) to market their products. PR refers to efforts by the company to make people understand the company’s practices, policies, and procedures. A company can identify its donations to charitable organisations as a form of PR.

In addition, a company can sponsor vital causes or events that strive to improve individual or societal well-being. PR that focuses on the contribution of Swatch to the society would not improve the competitiveness of the car.

Swatch may use publicity to elicit demand for the product. Publicity campaigns strive to generate commercially significant news about a product in various media. One of the major advantages of publicity is the fact that the sponsor does not pay for the publicity.

The media controls the message. They may portray the product negatively. Therefore, this method would not be effective in marketing the ‘smart’ car.

Swatch may use sales promotion to promote the product. Sales promotion targets retailers and wholesalers of a product. Since Swatch sells the product directly to consumers, sales promotion would not be effective in marketing the ‘smart’ car.

Companies use corporate image to market their products. It is very hard for companies that have a bad corporate image to launch products successfully. Swatch has a good corporate image. The ‘smart’ car would improve the corporate image of the company.

Therefore, there is no need for the company to strive to improve its corporate image since it already has a good corporate image.

Personal selling is one of the most common methods that companies use to market their products. Personal selling involves direct contact with the customers. Therefore, it is vital for the sales representatives of a company to be presentable.

In addition, they should be able to articulate the major attributes that make the product have a competitive edge over products from rivals.

Most companies offer commissions to their employees to encourage them to make more sales. Since Swatch does not give its employees commissions, personal selling would not be effective.

Improving Strategies Personal selling is one of the major strategies that Swatch should use to improve the sales of the product. Since Swatch does not offer its employees commissions, personal selling would not be effective.

Therefore, Swatch should start offering commissions to its employees. The commissions would encourage the employees to be more aggressive. Commissions would ensure that they earn additional pay for their efforts.

Swatch may also use sales promotion to increase the sales of the ‘smart’ car. The company should engage in sales promotion that targets the married Western expatriates. The company may carry out sales promotion that would associate the product with the domestic country of the expatriates.

Better Target Market Young adults who are between 20 and 33 years old would be a better target market for the ‘smart’ car. They form a sizeable percentage of the population. Therefore, conquering this market segment would ensure that the company makes more sales.

This would increase the revenue and profitability of the ‘smart’ car. On the other hand, there are very few Western expatriates. In addition, the young adults do not have so much money to spend. Therefore, the cost of the car makes it affordable to the young adults.

The Smart Car is a fuel-efficient vehicle. Therefore, it is much cheaper to use the vehicle. Most young adults do not have children.

Therefore, since the vehicle has a seating capacity of two people, it would be suitable for this target market. Adults who have children usually prefer cars with a large seating capacity to accommodate their children.

Promotional Strategy Advertising would be a vital component in the marketing mix of the ‘smart’ car to the young adults. The young adults account for a sizeable percentage of the population. Therefore, the company should use mass media to reach this target market.

Swatch should strive to make ownership of the vehicle be fashionable. The advertising campaigns should highlight attributes of the car that would make it be desirable to the target market. In addition, Swatch should use exhibitions to market the car.

The company should exhibit the car in places where the young adults visit occasionally. The exhibitions would create awareness about the existence of the car.

Conclusion Marketing strives to create awareness about the existence of a product. A company should use several strategies simultaneously to market a product. The target market usually determines the marketing strategies that a company would employ.