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Discuss the benefits of Total Quality Management 'TQM' to a manufacturing business. - Leaving Cert Business - Question B - 2009

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Discuss the benefits of Total Quality Management 'TQM' to a manufacturing business.

Worked Solution & Example Answer:Discuss the benefits of Total Quality Management 'TQM' to a manufacturing business. - Leaving Cert Business - Question B - 2009

Step 1

Focus on Customers

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Answer

Total Quality Management (TQM) emphasizes putting the customer first. By prioritizing customer needs and expectations, a manufacturing business can create products that better satisfy consumer demands. This focus leads to improved customer loyalty, repeat business, and positive word-of-mouth promotion.

Step 2

Continuous Improvement

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TQM fosters a culture of continuous improvement within the organization. This means that processes are regularly evaluated and improved. By constantly seeking to enhance quality and efficiency, manufacturing businesses can reduce waste, lower costs, and enhance overall productivity.

Step 3

Teamwork (Total Company Involvement)

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TQM encourages collaboration and teamwork across all levels of the organization. When employees work together towards common goals, it enhances communication and morale. A motivated workforce is more likely to contribute innovative ideas and solutions, which can drive quality improvements and operational efficiency.

Step 4

Improved Quality

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Implementing TQM leads to a noticeable improvement in the quality of products produced. By focusing on quality throughout the manufacturing process, businesses ensure that products meet or exceed industry standards, which reduces defects and increases customer satisfaction.

Step 5

Reduction in Cost

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By improving processes and ensuring high-quality outputs, TQM can significantly reduce costs associated with reworks, returns, and waste. This financial benefit allows a manufacturing business to operate more efficiently and maximize profitability.

Step 6

Meet the Requirements of Legislation

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A strong TQM system ensures compliance with regulations and standards, such as the Sale of Goods and Supply of Services Act 1980. This not only protects a manufacturing business from legal issues but also enhances its reputation in the market.

Step 7

Worker Motivation

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TQM contributes to higher worker motivation as employees feel they are part of a quality-oriented organization. When staff see that management is committed to quality, they are encouraged to take ownership of their roles and feel more engaged in their work.

Step 8

Job Satisfaction

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TQM initiatives lead to higher job satisfaction among employees. When workers are involved in continuous improvement efforts and see the positive outcomes of their contributions, they experience a sense of accomplishment and pride in their work.

Step 9

Increased Sales

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Finally, by building a reputation for delivering high-quality goods, a manufacturing business can attract more customers. Satisfied customers are more likely to recommend the company, which can lead to increased sales and market share.

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