Basic Principles of Total Quality Management (TQM)

When doing business, there are some basic principles to remember. More specifically principles relating to TQM. These should be applied as it plays an important role in the success of a company.

The basic principles include:

  • Satisfying the Customer
  • Satisfying the Supplier
  • Continuous Improvement

Satisfying the Customer

Satisfying the customer is extremely important. After all, the customer is the person/s who pays for a specific service/product. It is obvious that they want to get their money’s worth from the service/product they purchase.

Companies should thus focus on satisfying the customer. The most effective way of doing this is to provide them with value for what they buy. Services/products being provided should thus be of the highest quality. If it is, it can lead to reduced service expenses, reduced complaints, more repeat business, and even some referral business. In order to make customers feel more valued and important, extra service should be provided apart from providing quality products.

Satisfying the Supplier

The second basic principle of TQM is satisfying the supplier. The supplier is of course the organization/person from whom the purchase of services or goods is made.

The way companies satisfy its suppliers is by providing them with requirements and instructions that are clear. They should also pay them on time and fairly. In order for the company to be able to provide its customers with quality services/goods, its suppliers have to supply it with the same quality services/goods.

The workers within the company should at all times be productive and happy. This is done by providing them with tools they need to do their job, ensuring good working conditions, and providing them with good task instructions. The workers should also be rewarded through good pay and by receiving praise from management.

Continuous Improvement

Continuous improvement is the third basic principle of TQM. There is always room for improvement, no matter how successful the business is currently operating. In order to be one step ahead of the competition, continuous improvement is necessary.

Improving services/products can be done in a lot of different ways. However, the correct way to apply continuous improvement is by working smarter, not harder. Forcing employees to work harder is very counter-productive. Rather examine the source of problems. After the examination, improvement of these problems can take place. Quality methods (such as variability production and just-in-time-production) and worker suggestions are two ways for continuous improvement to take place.

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Read more about ISO 9000 ISO 9001 standards for Quality Management.

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