In business, quality refers measures of excellence and remaining free of defects, deficiencies, and significant variations. Quality products or services are brought about by the commitment to abide by certain standards. These standards are put in place to maintain customer or user satisfaction, (Business Dictionary.com, 2014). In this paper, Learning Team A will discuss total quality management, ISO standards, how these standards are used to improve an organization, benefits and challenges of these standards, and the role of the quality control department within an organization in relation to TQM and ISO standards.
Total Quality Management and ISO
Total quality management may be defined as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer, (Jacobs, H., & Chase, R., 2011).” The two primary goals of total quality management (TQM) are to ensure that the product or service is carefully designed, and secondly, to ensure systems within the organization can consistently produce and design the product or service. TQM resembles Six Sigma to a great degree, but it is a different process. TQM focuses on ensuring standards and guidelines are actually reducing errors while Sigma looks to reduce defects, (Jacobs, H., & Chase, R., 2011).”
ISO are a series of standards used to measure quality. These guidelines are international guidelines established by the Internal Organization for Standardization. To gain certification for these standards, the process takes greater than a year. ISO 9000 represents standards for the criteria that need to be met during manufacturing processes. ISO 14000 refers to rules or guidelines set for environmental management of industrial production. This standard simply promotes useful tools for businesses to help manage environmental impact, (Investopedia, 2014). Advantages of TQM and ISO in organizations
Customer satisfaction is the main goal for every organization. Customers are satisfied if they get a product or service that meets their expectation and if it is of fair price. Total Quality management helps to provide this quality assurance for the customers. It helps the organization to make the needed corrections and improve production. Apart from satisfied customers, organizations also need to improve their efficiency and effectiveness of doing business. TQM places a focus on internal process that includes process alignment, consistent delivery and process productivity (CEBOS, 2012). With TQM, organizations will have a longer term competitive edge. TQM is a philosophy that empowers all the employees and it promotes continuous and sustained improvement. Its basic principle is that the cost of prevention is less than the cost of correction (Gharakhani, Rahmati, Farrokhi, & Farahmandian, 2013).
Like TQM, ISO also provides benefits for a business. According to (ISO, 2014), when a company improves its operations, it saves cost. Having internationalized standards will improve operations and reduces operational expenses. Standards will help to enhance customer satisfaction and access new markets. It also helps companies to increase their productivity and stay in the competitive edge. ISO 9000, certification increases marketability and reduces product liability risks, because the quality of the product is enhanced. With the ISO 14000, organizations reduce their footprint in global environment. ISO14000 helps companies to save in energy consumption, reduce the cost of waste management, and improve corporate image among regulators, customers and the public (ISO, 2014).
Business Dictionary.com (2014). Quality. Retrieved from, Business Dictionary.com Web site: http://www.businessdictionary.com/definition/quality.html Investopedia (2014). ISO 9000. Retrieved from, Investopedia Web site: http://www.investopedia.com/terms/i/iso-9000.asp
Investopedia (2014). ISO 14000. Retrieved from, Investopedia Web site: http://www.investopedia.com/terms/i/iso-14000.asp
Jacobs, F., & Chase, R. (2011). Product and Service Design. In (Ed.), Operations and Supply Chain Management (13th ed., pp. 38-67). Boston, MA: McGraw-Hill Irwin. CEBOS (2012). How Can TQM Make Your Business More Successful?. Retrieved from, CEBOS Web site: http://www.cebos.com/how-can-tqm-make-your-business-more-successful/ Gharakhani, D., Rahmati, H., Farrokhi, M. R., & Farahmandian, A. (2013). Total Quality Management and Organizational Performance. American Journal of Industrial Engineering, 1(3), pp. 45-50. ISO. (2014). Benefits of International Standards. Retrieved from http://www.iso.org/iso/home/standards/benefitsofstandards.htm ISO. (2014). ISO 14000 – Environmental management. Retrieved from http://www.iso.org/iso/home/standards/benefitsofstandards.htm