What Is the Value of Total Quality Management for Businesses?

by Luke Arthur; Updated September 26, 2017

Total quality management is a collection of methods that aims to improve a business' internal and external relations. While implementing this type of management system may be time-consuming, it also can provide value for a company. There are a number of benefits for a company that implements total quality management.

What is TQM?

Total quality management (TQM) is a system that was developed by Dr. W. Edwards Deming. This system was created because of a lack of quality in the current management systems that were employed in the era. With this system, more focus is given to quality output instead of only focusing on the amount of output that an employee has. The total quality management approach looks at every aspect of a business and aims to improve each level so that everything can work together more in harmony.

Customer Focus

The total quality management approach focuses on customers, both internal and external. External customers are anyone who buys a product or service from your company. Internal customers are other people in the business who rely on each other in some way or another. With total quality management, care is taken to ensure that each customer interaction is based on quality and satisfaction. If every external customer is satisfied, repeat business will be the result. Satisfying internal customers ensures that employees are happy in their interactions with each other.

Harmonic Company Operations

One of the major benefits of total quality management is that it gets everyone in the business on the same page. To implement this type of system, the upper-level managers have to set the example for lower-level employees. Careful planning must go into the process of developing the system that will be used. The managers are taught the core values first and then pass these values onto their subordinates. When every level of the company is working together, it increases the output and quality of the company overall.

Fewer Wasted Resources

By using total quality management, your company can waste fewer resources and put out more quality products. With this type of management system, special emphasis is placed on ensuring that each product is created to a certain standard. Products are examined throughout the process so that they are all made to this standard. This also ensures that faulty products do not make it out into the market with your customers. This leads to greater levels of customer satisfaction and helps you save money on wasted products.

About the Author

Luke Arthur has been writing professionally since 2004 on a number of different subjects. In addition to writing informative articles, he published a book, "Modern Day Parables," in 2008. Arthur holds a Bachelor of Science in business from Missouri State University.