Total Quality Management (TQM) is also called Integrated Quality Management or Integrated Quality Management is a management approach in a quality-based organization based on the participation of all its members and aims for long-term success through customer satisfaction and benefits for all members of the organization and society.
According to Hessel, the benefits of Total Quality Management (TQM) implementation for companies/organizations is as follows.
1. The process of product design becomes more effective that will affect the quality performance of product reliability, product features, and serviceability.
2. Avoidable deviations in the production process result in products produced according to standards, rework, reduce working time, reduce machine work and save material usage.
3. A long-term relationship with customers will positively affect the performance of the organization, among others, can respond to customer needs more quickly and anticipate changes in customer needs and desires.
4. Good workers attitude will lead to participation and worker commitment to quality, pride to work so that will work optimally, feeling the responsibility to improve organizational performance.
According to Sadgrove (1995), there are three main benefits of the TQM program, as follows:
1. Benefits to customers, namely: fewer product and service issues, better customer care, greater satisfaction.
2. Benefits for the company, namely: improved quality, more motivated employees, increased productivity, reduced costs, impairment/failure decline, problem-solving faster.
3. Benefits for staff, namely: empowerment, more education, more skills, more recognition.
TQM is very useful both for customers, institutions, and for the staff of the organization.
– TQM benefits for customers are:
1) Little or even no problem with the product or service.
2) Concern for better customers or customers more attention.
3) Satisfied customer satisfaction.
– The benefits of TQM for institutions are:
1) There is a change of product and service quality
2) Staff is more motivated
3) Productivity increases
4) Cost down
5) Defective products are reduced
6) Problems can be solved quickly.
7) Creating an institution as a leader (leader) and not just a follower (follower)
8) Helps to create teamwork
9) Make institutions more sensitive to customer needs
10) Make institutions ready and adapt more easily to change
11) The relationship between different departmental staff is easier
– TQM benefits for Organization staff are:
2) More trained and capable
3) More appreciated and acknowledged
Of the many benefits of Total Quality Management, the following conclusions can be drawn.
a. TQM keeps the company focused on market desires
b. TQM inspires workers to deliver the best quality in every activity.
c. TQM delivers the essential procedures for obtaining superior results.
d. TQM helps to continuously test all processes to remove unnecessary and unproductive things.
e. TQM supports companies to truly understand existing competition and to build effective war strategies.
f. TQM helps to build good procedures for communication and rewards good work. TQM helps to review what
processes are needed to build a continuous developmental strategy.
g. With continuous quality improvement, the company will be able to improve the position of competition
h. Efforts to improve quality will result in increased output free from damage / reduce defective products.