Improve turnover with Total Quality Management (TQM)

October 25, 2019by Faber Infinite

Did you know, one of the world’s renowned airline company was able to increase turnover by 23% by implementing Total Quality Management (TQM) tools?

In the year 1987, when the company was privatised. The management believed that if they want to be the best and world-class organization. They will have to use those strategies and processes that would create a vision and encourage their employees to gain their trust. This could only be possible by implementing a TQM program.

In order to be the best in the industry, the management team of the company decided that they must win through teamwork, customer satisfaction, profitability, and reputation. Along with the way to implement the strategies. The organization found out even the places where they want to implement these strategies. And Also conducting a study to diagnose the current situation within the technical workshop, obtaining support and full commitment of TQM concepts from all the levels of management. And educating staff according to the principles of TQM and make necessary changes in management style, changes in policies. So that procedures and work practices that would be apt and would facilitate the new organizational culture required. and starting the quality improvement process, and reviewing progress made and fostering a sustained commitment from all levels of the organization.

Turnover Increased through Total Quality Management (TQM)

The approach taken by the company in collecting quality costs involved  breakdown of employee activities related to quality in three main heads, namely:

Anticipation – activities that provide performance right the first time,
Assessment – activities that check if the concept of right first time is done,
Failure – activities resulting from the failure of the concept right first time.

Knowing how to bear the cost of quality has had a significant contribution in educating staff on the concept and principles of TQM.

It also helped in strengthening and justification of the need for training personnel in accordance with TQM, to overcome any skepticism about Total Quality Management (TQM), to promote considerable debate on this issue and to ensure that the improvement of individual project activity can be measured.

Right after two years of implementing the TQM methodology, the organization was recognized as the best in the aviation industry, by customers and competitors. The organization launched its TQM program in September 1988 and by the end of 1989 the benefits of the program were seen. also turnover increased by 23%, there was an increase in the number of passengers who used the company’s services. Passenger load factor increased from 79.1% to 81.3% and aircraft fleet had grown to 33 aircrafts.

Hence, as you can see, Total Quality Management (TQM) has helped the organization improve the overall turnover that too within a short span of two years. Have you started implementing Total Quality Management? 

 

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    by Faber Infinite

    Faber Infinite is an International Business Management Consulting Organization offering consulting solutions and services for Increase Profitability in Business.

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