Question

In 400 words or more answer the following question in research paper format:

What are the impacts of Total Quality Management on Customer Satisfaction, Profitability, and Productivity? Explain and provide examples.

Answer 1

Impacts of Total Quality Management on Customer Satisfaction:

• showcases the right quality and assurance in minds of customers
• customer get confidence to buy/ use/ re-buy/ re-use
• A brand image/ perception for high quality in terms of reliability/ performance/ durability is created in minds of consumers, delivering a long term confidence
• Make the evaluation criteria easy for customers
• Customer start referring to other customers based on benefits they received from high quality
• It creates a base for Voice of customer
• Basic fundamental to reach customer delight and hence delivers customer life time value

Impacts of Total Quality Management on Profitability:

• Reduction in routine operational costs
• Reduction in customers’ complaints maintenance and resolving costs
• Reduction in machine breakdowns and hence lower repair costs
• Reduction defects and scraps etc. so it saves a lot of costs
• Reduction in cycle time, hence lower operational or manufacturing costs
• Reduction in all costs mentioned above will increase profitability

Impacts of Total Quality Management on Productivity:

• Higher operational efficiency
• Less breakdowns, less down time, more machine output with same input
• Workforce motivation to work for and deliver higher quality, and employee productivity gets increased
• Less product returns, less reverse logistics, better productivity
• Less wastage or scrap, gives more operational productivity to the company
• The quest for quality practice in the competitive marketplace, gives the whole company a motivation to be more productive than before
• It finds and moves away root cause for lower quality or failures to deliver the best