Everyone and all types of business benefit from having a 5S program. Manufacturing and industrial plants come to mind first, as those are the business that can realize the greatest benefits. However, any type of business, from a retail store to a power plant — from hospitals to television stations — all types of businesses, and all areas within a business, will realize benefits from implementing a 5S program.
5S was developed in Japan and stands for the Japanese words seiri (tidiness), seiton (orderliness), seiso (cleanliness), seiketsu (standardization), and shitsuke (discipline). These words have been adopted to English to maintain “5S.”
These are the benefits of Total Quality Management as given below:
• Strengthened competitive position
• Adaptability to changing or emerging market conditions and to environmental and other government regulations
• Higher productivity
• Enhanced market image
• Elimination of defects and waste
• Reduced costs and better cost management
• Higher profitability
• Improved customer focus and satisfaction
• Increased customer loyalty and retention
• Increased job security
• Improved employee morale
• Enhanced shareholder and stakeholder values
• Improved and innovative processes
The advantages of TQM
TQM offers both short term benefits and long term benefits. The long term pros of TQM, however, outweigh the near-sighted advantages. Because this process can take years to perfect and implement, most organizations are concerned with the long term gains.
Some of the pros of TQM in the long run include higher moral, decreased costs, increased customer loyalty and trust, better market penetration and increased productivity. Practicing TQM decreases the chance of committing mistakes and producing inferior products that can damage the name and fame of a company. It also increases the popularity and status of an organization in society while saving it money and time in the long run. Resources are saved that can be utilized for better projects.
Overall, TQM enhances employee satisfaction and creates an air of enthusiasm and welcomes professional attitude to jobs. Probably the most beneficial of all short term gains is its potential to increase team work and spread camaraderie in a production unit.
The disadvantages of TQM
Total Quality Management does suffer from some drawbacks. First of all, its complexity exposes the organization to potential decision bottlenecks and overall bureaucracy. Ideas that are worthy may get dumped in favor of greater incentives and better market penetration.
Improvement in a company’s TQM can be at the cost of jobs and employment as technology plays an important role. This can have a devastating impact on various communities and also reduce the amount of goodwill the company name carries within these communities. The fact TQM has the capacity to replace jobs with technology is both an exciting and scary possibility, and the ramifications of it must be considered.
Focusing too much on the end result and customer satisfaction may sometimes cause a project to run into excess costs without any possible sign of returns. Moreover, it can result in the lack of confidence of the management in the floor workers and think tank. Finally, the cost of analyzing and implementing a TQM plan is exponential limiting it to only financially sound companies.
It is clear that any TQM plan will inherently have benefits or flaws depending on your outlook and world view. However, this article served to analyze how TQM works and why it has its pros and cons. Obviously, subscribing to any management philosophy without tailoring it to your specific business needs is problematic, so exercise caution before beginning to use systems such as this one.
Total Quality Management (TQM) is an approach to improving the effectiveness and flexibility of a business as a whole. It is a quality process which involves every person, at every level, in every department, working together to eliminate errors and to prevent waste. TQM assumes that quality is something that is embedded in all activities that take place within the organization. As the name suggests, quality is deemed to be a matter of importance for management and, as such, is something that should be managed in a conscious way.
TQM views an organization as an open system. The raw materials and the parts entering the organization must have the right quality, as must the products delivered to customers. The quality requirements must be met every time, be it from suppliers, or in the products delivered to customers. Internally, the focus is on how value is added to the products. The organization must be geared to handle continual improvements, and every single employee is responsible for working out the expected and agreed level of quality. Continual improvement is seen as a core issue, and it has to be built into every action. Furthermore, the production system is considered as a totality, in which each element is linked to others forming a complex whole production system.
Every business needs to innovate to stay ahead of the competition. No business can continue to offer the same unchanged product; otherwise sales would decrease and profits reduced. In this article we will explore some of the reasons why lack of products development can affect sales and profit.
• Consumer “Needs and Wants” Change
• Product Reaches The End Of Its Product Life Cycle
• Product Is At The Maturity Stage Of Its Product Life Cycle
• Environmental Changes
• All Products Experiencing Problems
Process of developing a new product or service for the market. This type of development is considered the preliminary step in product or service development and involves a number of steps that must be completed before the product can be introduced to the market. New product development may be done to develop an item to compete with a particular product/service or may be done to improve an already established product. New product development is essential to any business that must keep up with market trends and changes.