MGT510 Total Quality Management GDB Solution Spring 2013

Most of the nationalized corporations in Pakistan have been showing poor performance over the past decades. One of the main and much propagated reasons is the political interference. Due to political interference, a large number of people were recruited in these corporations. The major reason of this recruitment was to get political support in the masses. In order to adjust political interest, merit suffered a lot. People were recruited to posts without having relevant or required qualification and experience. This led to the improper performance of functions in these organizations. This fact led to the misuse of the resources in general and waste of resources in particular. It is evident that all the mentioned factors are linked with each other. This became the reason of too much ever increasing costs and declining revenues. Resultantly these organizations accrue financial loses and stand castigated by the public at large.


Suppose you are appointed as a Total Quality Manager in any of these firms, Suggest how can the practices of TQM help your organization reduce costs and stand profiteering?

Total quality management is a general philosophy of gradually improving the operations of a business through the application of rigorous process analysis by every involved employee and business partner. TQM is usually applied at the tactical, front-line level, where production, clerical, and low-level managers are deeply involved. There are a number of tools available to assist in a TQM effort, such as:

  • Benchmarking
  • Failure analysis
  • Plan-do-check-act (PCDA) cycle
  • Process management
  • Product design control
  • Statistical process control

There is some debate regarding which tools fall within the umbrella of TQM, so there are a number of other tools not mentioned here that could be of assistance.

TQM can be implemented successfully in any part of a business, such as:

  • Accounting
  • Finance
  • Legal and administration
  • Manufacturing
  • Materials management
  • Research and development
  • Sales and marketing

The advantages of total quality management (TQM) include:

  • Cost reduction. When applied consistently over time, TQM can reduce costs throughout an organization, especially in the areas of scrap, rework, field service, and warranty cost reduction. Since these cost reductions flow straight through to bottom-line profits, there can be a startling increase in profitability.
  • Customer satisfaction. Since the company has better products and services, and its interactions with customers are relatively error-free, there should be fewer customer complaints. Fewer complaints may also mean that the resources devoted to customer service can be reduced.
  • Defect reduction. TQM has a strong emphasis on improving quality within a process, rather than inspecting quality into a process. This not only reduces the time needed to fix errors, but makes it less necessary to employ a team of quality assurance personnel.
  • Morale. The ongoing and proven success of TQM, and in particular the participation of employees in that success can lead to a noticeable improvement in employee morale, which in turn reduces employee turnover, and therefore reduces the cost of hiring and training new employees.