Total Quality Management (TQM) — the method of persistent improvement of all organizational processes in a company. Quality management can be considered to have three main components: quality control (QC), Quality Assurance (QA) and Quality Improvement (QI). Quality management is focused not only on product quality, but also the means to achieve it. QA is the guarantee of necessary quality level of production. The idea of QI is that it is important not only to maintain the quality level but improve it constantly and therefore to raise its guarantee level. These two approaches help to produce outselling production which gives competitive advantage to any company.
The tasks of quality management:
· To improve economic position of company;
· To expand its customer base, to gain access to new markets;
· To enhance its image;
· To make its goods more marketable, popular;
· To get the foot of rivals and be ahead of competition;
· To reduce production costs and increase guarantee period;
· To extend a range of services.
The principles of quality management:
1. Client orientation.
Organisation depends on its clients, that is why it should understand their needs and requirements and moreover try to meet their demand and shift their expectations. For example, company should carry out analysis of customer complaints.
2. Common interests of all management team members.
The managers should establish common objectives of company operation and also exact ways of realizing these objectives. Moreover they should create good working atmosphere in order to engage as many employees as it possible for achieving established goals.
3. Participation of all company staff.
The personnel is the key competitive advantage as production quality in any company. The success of a company depends on skills and experience of its employees, that is why it is necessary to stimulate and encourage them, team building.
4. Processing approach.
5. Constant improvement.
It is important to research, analise and to solve company problems. Its performance shows if the clients are satisfied or not. The financial results should be constantly improved so that the company will maintain its position in the market.
6. Relationships with suppliers.
7. Costs minimization.
The elements of Quality control:
· personnel training and qualification;
· controlling the product design;
· controlling documentation;
· controlling purchasing;
· product identification and traceability at all stages of production;
· controlling and defining production and process;
· defining and controlling inspection, measuring and test equipment;
· handling, storage, distribution and installation;
· Administrative services
· Consulting, Banking, Insurance
· Computer software development