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| Tuesday, 02 November 2004 |
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TQM and its contribution towards effective marketing by Prasanna Perera, Marketing and Management Consultant, Chartered Marketer, CIM, UK In the past manufacturers could sell what they made. Banks, airlines and restaurants, didn't worry about the service they provided. However, the situation has now changed dramatically. Companies now have to be more responsive, offer a better product and keep improving. The reasons are as follows: Customers are more demanding - Customers are more sophisticated and knowledgeable. Competition is stronger and greater - Competition is getting harder and fast becoming global. Technology is changing - Even companies in traditional industries are finding that things are being done differently. Service organisations are using information technology to respond faster. Legislation is making greater demands on companies - Environmental, health and safety laws now require companies to run safe and pollution free businesses. TQM is one of the vaguest business tools ever invented. Everyone has their own view of how TQM should be applied. This makes it very confusing. TQM means satisfying customers first time, every time. It means enabling your employees to solve problems and eliminate waste. TQM is not so much a management technique, as a whole style of working. Therefore, TQM is really just another word for good management. What is needed to make TQM work? The following aspects are worth noting and practised upon. * Start by clearly deciding the purpose of introducing TQM. * Get commitment from the top management. * The required time should be devoted for the project. When TQM programs fail, it is often because management failed to give it enough time. * Be patient. It takes several years to see any results. Do not expect immediate results. * Allocate adequate resources for the TQM program. If you develop your program in-house, the services of a full time TQM co-ordinator will be required. In addition, the time of senior managers and other staff will be required. * Set up a steering committee, comprising senior managers, that will take decisions on TQM related aspects. * Study and observe how other firms carry out TQM activities. * Be prepared for resistance from staff, when they hear abut the TQM program. Many members of the staff fear change, because it could lead to redundancy. These are some insights on what is needed to make a TQM program work. There is of course no substitute for acquiring the experience in TQM, by successfully implementing such initiatives. TQM and staff training Training is essential to the success of TQM. Training helps staff to understand TQM and aids the process of change. Training can also achieve substantial productivity improvements. The starting point is to identify the different people who need training, starting with senior management. Senior Management needs to be made aware of TQM. They need to know what it involves and how to make it work. The TQM co-ordinator, should be given extensive training in TQM techniques, creating motivation and empowerment. The next step is to determine what training is needed. Whilst each kind of employee needs different types of training, the majority needs to be aware of the following: The role and importance of quality. Common reasons for failure in quality. Problem-solving techniques. The different types of customers and what they require. Technical skills for production staff and customer contact staff. (For e.g. customer care, listening skills, multi-skilling). As in the case of any other program, the success of TQM depends on the level of training provided to employees and their commitment and motivation to make things happen. Teamworking for TQM success Encourage people to carry out a total job, from start to finish. Let them work in teams, producing the product or delivering the service. Cell working, as these sorts of arrangements are known, helps staff gain more skills and become more flexible in their work. It also makes staff more committed to quality and improves quality. Gradually, the teams will take more of their own decisions and require less supervision. Eventually they become self-managed work teams. World-class companies are now doing away with quality inspection teams and are getting the workforce to do the inspection. Team members lend their signatures to the product testifying to the quality and workmanship. In short they take ownership for product quality, which is a real motivator. Setting up project teams is essential for team working. Different terms such as quality circles and improvement teams have been used. Whatever term is used, project teams are an intrinsic part of TQM. Normally, there are two types of teams involved in TQM. Quality groups is one, which will examine problems in their own department. The second is called, improvement teams, and management appoints them to examine multi departmental problems. Conclusion You need four essentials, in order to improve your product or service. Often grouped under the word "quality" they include the following techniques. (a) Reduce/minimise defects (b) Improve productivity (produce a greater output, for the same level of cost). (c) Improve customer service (d) Innovate - Companies are constantly offering your customers newer and better products. You have to simply match or better that rate of innovation. You can only achieve these four essentials, if the energies of your entire workforce are committed to excellence and to the customer. No single, individual can achieve this and should not be expected to do same. "Customers are attracted by promises and retained through satisfaction. Marketing can deliver the promises, but only the whole company can deliver satisfaction." (Kotler) "Let your customer define quality. Your task is to deliver it." |
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