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According to Ritu Sharmma (2008), the total quality management (TQM) is a management philosophy approach towards the quality improvement of a product and services, customer satisfaction and employees satisfaction. The technique is developed by an American W. Edwards Deming. The total quality management is introduced to help those manufacturers to measure the improvement of quality in various product or services they produce. According to Phillip Castro (1994), the TQM philosophy and techniques allow the business to continue improve in their operation and meanwhile to identify the reason of poor quality performance and customer services and hence to find a ways to reduce and eliminate the cause of poor quality. Rajabbeigi and Salami (1995) said that the TQM are divided into three main segments which are focus on customer, focus on the working process and extensive and continuous improvement of processes and systems.
Regard to Ritu Sharmma (2008), the TQM not only works related to the quality of a products nowadays the marketing, finance design and customer service are also take part in the area, moreover with the TQM concept a mistakes of an operation can be avoided and the defects can be prevented through the entire process cycle. Based on Phillip Castro(1994) said, by using the TQM in the operation the management can oversee every step of the process and at the same times it emphasize on the creative of the employees to solve the problem and encourages the formation of teams and empowerment of every employees in the company. As every defects and mistake in manufacturing a product or services can be avoid in the operation, hence it helps the company to reduce the defective cost of production and the company will demand less money in the waste of material to producing a product simultaneously increase the capability of the company to gain more profit in their production.
The advantages of TQM include the cost reduction, expansion of activities and satisfaction of customer and personals. The TQM is focus more on the welfare of the customer moreover the zero defect goods will supplied to them hence this will reduce the complaints from customer toward ours product. Besides that the quality improvements of a product those under the TQM able to eliminate the rework and material shortage problem hence it reduce waste. In addition the defective rates of a product in the production process become low. As the quality of the product become well enough hence the sales and profits of the company will increase at the same time the goodwill of the company will be recognizes by the market. The TQM techniques also help in build the relationship with the customer and offer a long term customer support, this is useful for the company as the company can reduce the advertising cost that are most likely spend much among all the operating expense. The TQM can prestigious position of the company in the international marketing as the product is satisfied by the user all around the world. TQM also helps in maintaining the high standard of living to employees and the control of operation cist.
Based on studies case of Johnson in Pakistan institute of Quality Control, as the operation cost continues increase and the competition among the business become more and more drastic in the globalization world hence the cost of quality may provide the company a means of assess to the return of quality in maintain their cost of production and ensure the quality of the product and services are meeting the customer's satisfaction. The quality control serve as a platform to reduce the operating cost meanwhile increase the competitiveness of the business. Cost of quality is one of the tools in the TQM implementation process to estimate the qualitative improvement of an organization.
TQM IMPLEMENTATION PROCESS
Commitment & Leadership
Design For Quality
Planning For Quality
Systems For Quality
Cost Of Quality
Tools & Techniques For Improvement
Capability & Control
Organisation For Quality
Communication For Quality
Team work For Culture Change
Training For Quality
Implementatiom For TQM
Ritu Sharmma (2008) explained that there is an effective application for TQM called "ABCD" where A stands for accident cure, B stands for breakdown, C stands for cost reduction and D stands for damage. This policy is regard to the product that a company produces. The concept of Six Sigma is a part of TQM that developed by the Motorola company to detect the defects of a product and to remove them. According to Daniel L, Quinn (2002), the Six Sigma is management frameworks that focus on the continuous improvement process which uses statistical tools to managing the comprehensive business. Daniel L, Quinn (2002) the Six Sigma is a program that improving quality, reducing cost, improving customer loyalty and achieving bottom-line of a product that produce by a company. There are four fundamental commitments that all the company will face when using the program which are the leadership, resources, time and cultural change.
Daniel L, Quinn (2002) in the leadership, the Six Sigma involves the wide-spread changes in organization so it needs an active and visible participation by the people who is more experienced otherwise the program that use by an company always fail as the leader do not ensure that the initiative remains a top priority. In the term of resources, the Six Sigma program requires the company to invest in order to make the company become more profitable. The time for Six Sigma program to identify the company gains or losses is about 6-12 months. The company must focus on the customer's needs and at the same time measure the success of the business by the customer satisfaction in the cultural change.
The Microsoft has establishing several steps to ensure that the Six Sigma program is successful from being use at the same time helps in the cost reduction in the operating business which are:
Establish leadership support and engagement which means that the top management of the company must use the Six Sigma program in their daily business transaction by this the program just can be succeed.
Align Goals with Six Sigma Activities which means the goals and objectives of the company are critically contributed by the Six Sigma.
Establish Six Sigma Infrastructure which is the employees of a company are trained and certified with the Six Sigma roles.
Identify Opportunities to improve which means that the company can be improved by the customer complaints, metrics of expose areas and by solving the barriers to achieving the company vision and mission.
Match People with Projects which is the company should select the most capable worker participate in the Six Sigma program at the same times who is clear about the requirements and skills of the project.
Ensure Executive and Accountability. It is likely to be every employees perform the objective and report the project and program status routinely at all levels of business and hence all workers are participate in the program.
These few steps lead to achieve the Six Sigma objectives and simultaneously reduce the rate of defective product that may produce in the operating business and hence safe the variable cost of the company. Futhermore, from the Mic Quality Online Course, each Six Sigma Program follows the "DMAIC" sequences which are:
Specify the stakeholder needs, particularly the customer.
Determine the nature and extent of current problem.
Find out what causes the problem.
Fix the problems.
Lock in the Solutions.
In conclude, the TQM encourage the participation of the member of whole organization to improving the processes, products and services of the company. It is the programs which are useful for the company in cost reduction as it has the tools to identify the defective problem and hence the problem can be solve immediately to prevent the waste of the resources. The effective TQM require strong internal motivation and emotional involvement in implementation. Hence the whole organization must accept the TQM program in order to runs this program in an effective ways to minimizes the rework and the defective rate , reduce the material waste which simultaneously reduce the operating cost, this will also improve the quality of the product and make the company produce the product with profitability.